How To Get Your Offer Accepeted!

First, let’s define a seller’s market:

A seller’s market occurs when a substantial number of motivated buyers exceeds the number of homes available for sale.

If you are thinking about buying a home, there are a few steps that you must take to ensure that you won’t miss out on the best home for your family:

Step #1: Get a loan pre-approval from a reputable lender. In a competitive market, sellers will only consider offers from lenders that have a track record in the community

Step #2: Hire a Realtor that is committed to helping you find a home. A fulltime realtor in the community is someone who knows the neighborhoods and is committed to the local real estate market.

Step #3: Don’t delay! When the best home for you hits the market, you need to act. Searching for homes only on the weekends is no longer an option in a competitive market. The best homes sell within a day or two.

Step #4: Don’t haggle, remember you are competing with many other qualified buyers and your goal is to get your offer accepted and secured before someone else does.

Step #5: Sit with your agent and go over the conditions of the market in the area you are looking for. Ask how many homes are for sale, how many recently sold, how long it took to sell, and what was the average sales price. By understanding the market you will make an educated decision about types of offers.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

https://marinesschatarealtor.com/

Mariness Chata &  Associates / (661)317-3332 / MarinessChata@ outlook.com

Interest rate increase: What now?

The question on everyone’s’ mind is, “What is going to happen with interest rates and how will it affect my ability to afford my payments?”

When rates jump, many are not sure whether to run and buy a house or wait to see if the market will crash and burn, hoping they will be able to buy homes at bargain prices.

Keep in mind that the Real Estate market is not the stock market and prices don’t drop in one day.  Interest rates are still at the lowest levels in 30 years! Check out the Freddie Mac historic of rates.   This is recorded data, not wishful thinking!

Right now, for every $100,000.00 borrowed, there is an increase of $29.00 per month (averaged since December’s rate).  Many spend more than this a week at Starbucks!

Historically-low interest rates have fueled the Real Estate market for years but now with low inventory, the market is shifting.  Much of the Los Angeles area does not have enough inventory to last two and a half months.  In order for the prices to fall, we need at least 6 months of available inventory.

Paying rent or staying in a home that is too small for you and your family while waiting for a dip in the market may be the wrong move because the odds are this could be the best time for you to buy a house for a long time.

My favorite quote and the one I apply is “Don’t wait to buy real estate, buy real estate and wait.”  (Will Rodgers)

Thinking about buying or selling a home? Contact me at any time. I am never too busy for you!

Mariness Chata / (661)317-3332 / marinesschata@outlook.com.

Free MLS Home Search and Property Values

 

 

Are There Signs For A Market Crash?

The lack of inventory of homes for sale got everybody talking and speculating what’s going to happen next.  Being concerned is a normal reaction when we do not have the answers.  I believe that a healthy dose of information quiets and heart and can clear the mind.

Important factors to consider are the vibrant CA economy, the increases in the stock market, the increasing numbers of Californians that have new jobs and more importantly, the unhealthy lending practices that fueled the previous crash are non-existent today.

According to Ralph McLaughlin, chief economist of Trulia, Price declines are nowhere in sight yet and cannot be totally ruled out, he said, but “we think the potential negative impacts [of the tax bill] will be muted by the likely fact that most households will actually have more money in their bank accounts at the end of the year because of the tax plan.”

According to Ralph G. DeFranco, Ph.D, global chief economist, Mortgage Services, Arch Capital Services Inc., “Our research shows few signs of a housing bubble because the typical warning signs aren’t present. Overall, the shortage of housing paired with a robust job market should keep the housing market strong and growing, short of an unexpected event and despite the contrary pressures that may be created by the tax bill.”

The California Association of Realtors forecast home prices will increase an additional 4.2 percent in 2018. If the forecast proves accurate, that existing single-family home price will exceed record highs set in 2007. Prices, however, will remain well below pre-recession records when taking inflation into account.

Per Bill McBride, who runs the Calculated Risk blog, he doesn’t think home prices are inflated this time around. Unlike in 2005, lenders are acting responsibly and the Wild West of real estate speculation hasn’t returned. There is less to speculate on, too. Compared with the overbuilding that preceded the bust, today’s pace of construction isn’t fast enough, he said.

Thinking about buying or selling a home?  Would you like to chat about your options?  Call me at any time.  I am never too busy for you.

Mariness Chata / Mariness Chata & Associates / (661)317-3332 

https://www.marinesschata.com/

How To Prevent Property Tax Reassessment For Your Children?

Many homeowners are able to keep their homes in the family by passing on their home to their children when they no longer need it.  Often people miss out on the opportunity to do so fearing tax consequences.

Certain transfers within families are excluded from the general rule that a change in ownership triggers reassessment of a property. These exclusions include transfers between spouses and domestic partners.

This information focuses primarily on transfer exclusions between parents and children (Proposition 58). Transfer of property between parents and children is not subject to reassessment; children will pay the same lower rate paid by their parents. However, there are significant limitations to this general rule. Please consult a tax specialist or an attorney before claiming this exclusion.

Each parent may transfer their principal residence and up to the first $1 million of the full cash value of another property to their child without automatically triggering a reassessment.

Assessor Prang’s office is available to answer any questions and guide homeowners through this process. For more detailed information on property transfers between parents and children, visit the Assessor’s website at: https://assessor.lacounty.gov.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

Check out FREE access to the MLS and Home Values in your area by clicking on: https://marinesschatarealtor.com/

Mariness Chata & Associates / (661)317-3332 / MarinessChata@outlook.com

What is Proposition 13?

There is a new generation of homeowners who do not understand Proposition 13 (Prop. 13) and how it affects their property taxes. Every homeowner in California, whether they purchased their home yesterday or in 1978, is protected under Prop. 13.

Prior to Prop. 13’s passage, homeowners were at the mercy of real-estate market values. A county assessor would have to base property tax rates on fluctuations in the real estate market.

Now, every homeowner has their property tax rate set at 1 percent of the initial market value, and any annual increase will be capped at 2 percent. The longer someone stays in their home, the lower their “effective” tax rate will be in comparison to its market value.

According to the Howard Jarvis Taxpayers Association, the average tax rate in place
when Prop. 13 passed was 2.6 percent. In some counties, the rate was much higher.
Thirty-nine years later, without Prop. 13, the average would be roughly at 3 percent, a modest 0.4 percent increase.

At the end of 2016 the median price for all homes in Los Angeles County reached $550,000. Without Prop. 13, and only applying the average tax rate of 3 percent, the new homeowner would pay a whopping $16,500 bill instead of an initial property tax of $5500 – an $11,000 difference! And that’s just the start.

Without Prop. 13’s annual increase cap of 2 percent, there is no telling what the next bill may be. California home values are generally rising, sometimes by much more than the 2 percent cap. For instance, there was a jump of more than 6 percent from the end of 2015 median home price at $520,000 to the 2016 median price.

For more detailed information about Prop. 13 and any property tax-related questions, simply go online to: assessor.lacounty.gov.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

https://marinesschatarealtor.com/

Mariness Chata &  Associates / (661)317-3332 / MarinessChata@ outlook.com

 

 

What’s the difference between Wills and Trusts?

Everyone has heard the terms “will” and “trust,” but not everyone knows the
differences between the two. Both are estate planning devices that serve
different purposes.

One notable difference between a will and a trust is that a will goes into effect only
after the death of the party, while a trust takes effect as soon as it is created. A will
is a document that directs who will receive a property upon death, and it appoints a legal representative to carry out these wishes. By contrast, a trust can be used to begin distributing property before death, at death, or afterward. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm) called a “trustee” holds legal title to property for another person called a “beneficiary.” A trust usually has two types of beneficiaries: one set that receives income from the trust during their lives, and another that receives whatever is left over after the first set of beneficiaries has died.

A will covers any property that is in an individual’s name when he/she dies. It does not cover property held in joint tenancy or in a trust. A trust, on the other hand, covers only property that has been transferred to the trust. In order for the property to be included in a trust, it must be put in the name of the trust.

Another difference between a will and a trust is that a will passes through probate. That means a court oversees the administration of the will and ensures the will is valid and the property gets distributed the way the deceased intended. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.

Wills and trusts each have their advantages and disadvantages. For example, a will allows one to name a guardian for children and to specify funeral arrangements, while a trust does not. On the other hand, a trust can be used to plan for disability or to provide savings on taxes. Please consult an attorney for how best to use a will and a trust in estate planning.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

Mariness Chata& Associates / (661)317-3332 / MarinessChata@outlook.com

 

What Factors Increase or Decrease The Value of Your Home?

There are many factors to consider when it comes to valuing property. Some are more obvious than others. From the quality of the neighborhood schools to the closest freeway, issues that may seem insignificant can have a surprising impact on the value of your home. Whether you are looking to sell or buying, it’s important to be aware of anything that could have a negative impact on the value of your home.

Location: The location of a home plays a key role in its value, particularly its proximity to quality schools, retail stores, parks, grocery stores, restaurants, and nightlife. Many homebuyers wish to invest in a home that’s in a school district that would afford their children quality education.

Location also extends to the actual view from the home and the quality of neighborhood. If the home is located at the beach or has a scenic view, it will often be worth more than that located in close proximity to less desirable attractions such as highways, train stations, or industrial businesses that can be noisy during all hours of the day.

Upgrades: Updating kitchens and bathrooms, replacing flooring, repainting walls, and adding landscaping can add to the value of a home. However, homeowners can sometimes spend too much on improvements and fail to realize the full value of those renovations when it comes time to sell the property.  Seeking the advice of a real estate professional before investing in home improvements is the smartest use of the dollars spent to repair and upgrade a home.

Size: Most homebuyers want spacious homes, but bear in mind that more square footage can result in additional maintenance expenses. Think in terms of Goldilocks and the Three Bears – not too big, not too small. Homes that fall in that middle ground of “just right” tend to be more valuable. Also, homes with open layouts typically have higher values than those that have more walls and feel closed off. Similarly, homes with fewer but larger rooms are considered more valuable than their counterparts with additional but smaller rooms.

Caretakers of Cats and Dogs: Being a pet owner – or animal lover – is almost never a problem when considering the value of homes. There is no need to even consider having to give up family pets. Homeowners in Los Angeles County like their pets – 36 percent have a cat, a dog, or both.

Other Factors Influencing Home Values: Mortgage interest rates have an enormous impact on home values. Interest rates for home mortgages can drive up property prices by as much as 25 percent by altering the perceived affordability.   Local builder activity, zoning restrictions, and land use regulations also have a big impact on the supply of new homes and affect demand for new and existing residential properties.
property values to be different from one neighborhood to another.

Real estate prices are cyclical and are often influenced by factors beyond the control of the homebuyers. The real estate market in Los Angeles County has rebounded significantly from the economic recession and housing crash of the late-2000s. Currently, low-interest rates and limited inventory have created an ideal environment for home sellers in some parts of the County. Buyers, however, are facing escalating real estate prices,  and prolonged search periods.
Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you.

Check out the FREE access to the MLS and Home Values in your neighborhood here: https://marinesschatarealtor.com/

Mariness Chata (Broker/Owner)

Mariness Chata & Associates / (661)317-3332 / MarinessChata@outlook.com

Why do we pay Mello-Roos taxes?

Let’s first be clear on what is Mello-Roos taxes. Mello-Roos is a form of financing that can be used by cities, counties, and special districts (such as school districts). The taxes are secured by a continuing lien and are levied annually against property within the district.

The tax was created in 1982, as a way around Proposition 13, to generate revenue for basic infrastructure needs in new neighborhoods, especially schools. Mello-Roos landowners, usually developers, partner with school districts or cities to form Community Facilities Districts (CFD) that can levy taxes. Once the homeowners move into the newly developed neighborhoods, they are subject to the new tax for decades.

Before Proposition 13, state and local governments used income collected through property taxes to build new roads, schools and other necessary community facilities. In order to continue building residential areas, these same governments were forced to require builders of new communities to pay for these public facilities. Consequently, these funds were added to the cost of the new homes. These price increases hurt new home buyers and fewer people were able to afford these higher priced homes.

Since state funds are not available to provide the quality of facilities necessary in every community in California, Mello-Roos makes the acquisition of timely financing possible. In addition, Mello-Roos can provide financing for other vital community needs. These needs include the construction and maintenance of public roads, traffic light systems, storm sewers, water mains, police stations, fire stations, ambulance services, public libraries, recreational parks, museums and cultural facilities. Now homeowners are paying for these improvements through their Mello-Roos Community District as part of their property taxes, spread out over 20 years or more instead of as an initial increase in their home purchase price.

So California voters approved Proposition 13 to lower their taxes. Our lawmakers took the constraints we imposed on State and local government spending and developed a way to fund all the infrastructure we expect in a new home development. They did it by collecting Mello-Roos assessments from those homeowners in new neighborhood developments instead of taxing all California voters.

Instead of the State, County or local Communities footing the costs for these street lamps and schools – we the new neighborhood homeowner are the bottom line.

Thinking about buying or selling a home?  For over 20 years I have been helping families with all of their real estate needs.

Find thousands of homes for sale and property values at:

 http://www.marinesschata.com/

Mariness Chata & Associates   (661)317-3332     Marinesschata@outlook.com

My Crystal Ball

At the beginning of each year, I get the same questions:  Is now a good time to buy? Should I continue renting or get off the fence and purchase a home? Are prices going to go up or down?

I wish I had a Crystal Ball so I could tell potential purchasers what to do.  What I offer instead is very educated information based on available data I gather from reliable sources.  Governmental decisions in 2017 are sure to impact the economy and how the real estate market will react to it.

Right here, in our back yard, homeowners have been quite happy with property value appreciation during the last few years. According to the Chairman of the Santa Clarita Valley Division of the Southland Regional Association of Realtors, in 2016 single-family homes appreciated 6.3% and condominiums appreciated 7.8% over 2015. Those are very impressive numbers!  Homeowners can build up wealth and, at the same time, enjoy deductions for mortgage interest and property taxes on their federal returns. On the other hand, renters are deeply concerned with the current high prices asked by landlords.

For the people who are still not sure whether to buy a home or keep renting, I recommend that they continue renting if they plan to move out of the area within three to four years, because costs related to buying and selling a home may not be recouped in such short amount of time.

Another option, the one I most recommend, is to buy now while interest rates are exceptionally low. If moving becomes necessary, keep the property and rent it out, as Santa Clarita has a shortage of rentals. This is a good opportunity to start building up an asset portfolio and having someone else pay the mortgage.

My view here is simple, I believe that owning real estate is a proven method to build up wealth and to prepare for retirement.  Whether you live in it or rent it out will depend on specific personal circumstances.

Ready to explore your options? Contact me to discuss whether it makes sense for you to purchase a first home or expand your real estate portfolio in 2017.

As Ray Brown so well once wrote: ” The best time to buy a home is always five years ago”

Call me at any time to talk about what you are looking for.  I am always available to talk.

 

Thinking about buying or selling a home?  For over 20 years I have been helping families with all their real estate needs.  

Looking for a home or just curious about the home values in your area?  Check out:      

                                                  http://www.marinesschata.com

Mariness Chata / (661)317-3332 / MarinessChata@outlook.com

Have Questions? I have answers!

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

-Franklin D. Roosevelt

If these words of wisdom do not move you from thinking about buying a home to actually taking the action now, it is because you still have many questions about the entire buying process.  No worries though, you are not the only one!

The majority of home buyers ponder the same questions over and over in their mind.  Let’s face it, for most people, buying a home is a lot more complicated and emotionally charged than any other transaction.  These are some of the most common questions that I receive from home buyers throughout the transaction process:

• What home can I afford?
• How do I find a trusted lender?
• How can I tell if my agent is really working for me?
• Can I buy a home and sell my current one at the same time?
• How many homes should I see before making an offer?
• What do you think the seller will accept at a fair price?
• How do I know if the property is a good deal?
• How quickly can I close?
• Should I get a home inspection?
• When can I back out if I change my mind?
• Is this a good time to buy?

A professional and experienced Realtor will be able to satisfy all of these questions and more and giving you peace of mind.

Before you start spending countless hours searching the Internet for homes and signing up for several home search websites I recommend that you sit down with your trusted Realtor and go over all your questions and concerns. Do not feel pressured to make a quick decision until you fully understand what you are getting into but don’t allow fear and lack of information stop you from making an educated and wise decision about your future. Owning a home is not a luxury nor a gamble, it is a desirable goal as a long-term investment.

These are just a few benefits of homeownership;

• Freedom to improve and customize your home to your preference
• You enjoy the benefits of stability as a stakeholder in your home, neighborhood and community;
• Security of a safe, long-term investment;
• Receive tax incentives
• Build credit rating;
• Build equity and increase your wealth;

Do you still have doubts if homeownership is for you?  Would you like to learn more about your options and how you too can own a home in 2017?  Call or text me at any time at (661)317-3332.  I am never too busy for you!

Thinking about buying or selling a home?  For over 20 years I have been helping families with all their real estate needs.  

Free Home Search at   http://www.marinesschata.com/

How Much Is Your Home Worth? http://www.marinesschata.com/what39s-my-home-worth

Mariness Chata / (661)317-3332 / MarinessChata@outlook.com