A recent study of more than 22,000 homeowners who bought their homes within the last nine years found that current homeowners plan to be “more practical” in their next purchase, focusing on livable space rather than unnecessary upgrades.   An article in Los Angeles Times give us some insight:

• Many of the luxury amenities once considered necessities among home buyers, such as community clubhouses, dog parks, golf courses, and 24-hour security, are no longer priorities, according to the survey. Repeat buyers also said a swimming pool isn’t a must, but a children’s playground with walking paths are essential.

• One of the takeaways from the survey, according to an architect firm, is that buyers nowadays should rethink space. For example, buyers should look for kitchen cabinets that go all the way to the ceiling for added space and efficiency. They also should pass on high-priced focal stairways, opting instead of steps that are tucked away and out of sight.

• Home buyers also should be on the lookout for dead space. If the dining room or media room is eliminated, at least some of the square footage should be dedicated to secondary bedrooms. The once-standard 10-by-10 bedroom no longer is acceptable to most buyers.

• The survey also found that many buyers have transitioned toward green features, such as high-efficiency appliances, insulation, and windows that are not large areas of glass. However, many buyers did not report the use of recycled materials as a necessity.

• Other findings from the survey show that large kitchens, with islands, are desirable, as are main-floor master bedrooms, and two-car garages.

Additional Reading:

Does home staging really work?

Does your Pasadena home have curb appeal?

What can you expect from a great real estate agent?

Sell Your Home in 30 days or less

Part 2 of Sell Your Home in 30 days or less

How to create a great home selling brochure

PasadenaViews Real Estate Team

Real Estate Agents

445 South Fair Oaks Avenue

Pasadena, CA 91105

Irina at PasadenaViews.com

(626)629-VIEW (8439)

Instead, to help mitigate losses, the FHA will tighten credit standards to rebuild the cushion to 2 percent or more, without raising the premiums borrowers pay or seeking an increase in its down-payment requirement of 3.5 percent.

Under the new rules, lenders making FHA-insured loans would need to show net worth of at least $1 million, an increase from $250,000.  The agency is seeking to ensure that lenders have funds available to compensate the FHA if their loans fail to meet quality standards.

The FHA also will impose a maximum loan value of 125 percent of the current estimated home value on refinanced loans, in line with Fannie Mae and Freddie Mac.

Appraisals will be valid for no more than four months, a decrease from the previous six to 12 months validation period.  The FHA also plans to implement appraisal changes adopted earlier this year by Fannie and Freddie.  Mortgage brokers or bank employees paid on commission won’t be allowed to order appraisers.

To read the full story, please click here

Interested in searching for homes for sale?  See available homes for sale in the Greater Los Angeles Area by going to Search Homes For Sale.

The first property tax installment has to be postmarked by December 10th and the 2nd installment has to be postmarked by April 10th.  If you miss these dates, your property tax bill will be considered delinquent.

Supplemental Property Tax Bill

The escrow officer, will prorate the property taxes as of the date of your Pasadena home or condo purchase.  The proration will be based on the existing home seller tax bill.

Since your property taxes will be based on your new home purchase price, the tax assessor’s office will reassess the amount due and will send you a Supplemental Tax Bill for the difference between what the escrow officer withheld during closing and the actual amount due from you.

Supplemental tax bills are your responsibility and will be mailed directly to you by the Treasurer and Tax Collector’s Office approximately 6 months after your purchase.  They are not generally paid by impound accounts. You may view your estimated supplemental tax amount by going to the Supplemental Tax Estimator on the LA Assessor’s website.

Homeowner’s Exemption

If you own and occupy your home as your principal place of residence, you are eligible for a Homeowners’ Exemption that reduces your property tax by about $70 annually. You will be sent an application about three to four months after your deed is recorded.As a homeowner myself, I am committed to do all I can to make the property tax process as easy as possible for you. If you have any questions, don’t hesitate to call my staff toll-free at 1(888) 807-2111 (select #6) and/or visit the Assessor’s Website at http://assessor.lacounty.gov

A Homeowner’s Exemption is different from a Declaration of Homestead. Here’s a great explanation of the difference between Homeowner’s Exemption which reduces your property taxes and a Declaration of Homestead which protects your home’s equity.

]]> http://www.searchmlsforfree.com/property-taxes-in-los-angeles-everything-you-wanted-to-know/feed/ 0 http://www.searchmlsforfree.com/home-buyers-9-things-not-to-do/ http://www.searchmlsforfree.com/home-buyers-9-things-not-to-do/#comments Mon, 21 Sep 2009 04:16:11 +0000 admin http://www.searchmlsforfree.com/?p=80

Having sold homes in and around Pasadena California for many years now, I’ve seen a lot of situations where Pasadena home buyers find a home of their dreams, but somehow going through the steps of the home purchase they make decisions that jeopardize their transactions.

If you are thinking of buying a home in Pasadena or are in the middle of a real estate transactions, I am hoping that these home buying tips will help you.  They are not in any particular order, but each of them is critical and important in their own way.

• Do NOT, and I mean, absolutely do NOT, quit your job in the middle of escrow. Home buyers, sometimes think that if they have already been approved for a home loan, they will be fine quitting or changing jobs after the fact.  Unfortunately, that’s one sure way to be declined for your home mortgage.  Banks will verify employment and salary just before funding your home loan.  Funding usually takes place 2 days before you close escrow on your new Pasadena home.  No verification, no funds, no sale.
• Home buyers – honestly – sometimes, you just talk too much. Some of you have a tendency to talk away with the home seller prior to getting your offer accepted and disclose a ton of material information that should be kept confidential.  If you have any questions, have your real estate agent ask them.  Stop talking.  You think that you’re finding out stuff about the house, but in actuality the home seller is learning more about YOU!  Let the real estate agent do their job and negotiate on your behalf.  After the contract is sealed, you can talk away all you want.
• You, the home buyer, didn’t meet with a lender for a complete consultation to get preapproved and did not set a budget for your home purchase. It’s important to understand how much you are able to afford before you make an offer on your home.  Once you find your Pasadena home, you will start incurring costs – for home inspections, sewer line inspections, appraisal, permits, etc.  If you did not do your due diligence and did not take the time to sit down with a lender, complete a full application and provide all the requested paperwork, you don’t really know if you’re qualified for a loan on that home.

Pre-qualifications, where lenders just do a quick analysis over the phone without submission and full underwriting review, mean absolutely nothing.  As we say in the real estate business, prequals are not worth the paper they’re written off.

Ensure that you have been fully approved for your mortgage and you understand what your budget is.

How much money should you borrow from the bank?  The rule of thumb in real estate lending is to make sure that your monthly payment does not exceed 36% of your income before taxes.

Also, ensure that you understand what your closing costs will be and how much money you should set aside to cover these home purchase costs.

Read More: Understanding Closing Costs – recurring and non recurring

What are Pasadena real estate closing costs?

• Do not understand your mortgage choices. There are so many different types of real estate loans to choose from.  Each one is unique in its own way.  As a home buyer, explore all your options.  A good real estate mortgage lender will ask questions that will help them recommend the appropriate financial product that is right for your individual needs.

Did you know that there are 40 year fixed mortgage loans available now?  Is an FHA loan the best solution for you?  Are you a first time buyer?  If so, did you check to see if there are any down payment assistance programs available to you?  How long do you anticipate living in your home?  Less than 5 years?  Maybe a fixed loan that adjusts after 5 or 7 years is the best way to go for you?  You have many, many options.  Explore them!!!  Buying a home is a huge decision!

• You are not being represented by a real estate agent. Or, you are being represented by the seller’s agent, also known as the listing agent.  Now… unless you know this real estate agent very, very well and you have the utmost confidence in him or her being able to objectively look at both sides of the transaction and gear you in the right direction having your best interest in mind, hire your own real estate agent.

The great thing about being a home buyer is that you do not have to pay a real estate agent commission in most cases.  The home seller pays the commission to their real estate brokerage and that real estate broker will share the commission with the buyer’s real estate agent.  Simple, isn’t it?  Get your own buyer broker representation!  Find a real estate “pit bull” that will ensure your interests are protected!

• You saw the house, wrote the offer and never went back to check on the neighborhood.  Ouch…  escrow is underway and you find out that the neighbor next door has a band that practices in their garage every Sunday morning.  Or, you drive in for a home inspection to see that there’s no parking on the street because there’s some sort of on-going activity taking place a block away from your newly found home.  You see what I mean, right?  If you are not 100% familiar with the neighborhood, take the time to drive by the house and around the neighborhood at different times of day and evening.  Check your commute time to work from the house.  See what it’s like being in that neighborhood or on that street on weekends.
• You did not get the home inspected by a professional inspector. Every home should be inspected by a California CREIA (California Real Estate Inspection Association) approved home inspector.  Living in California, termite inspections are a must.  And, when buying a home in Pasadena, San Marino or any of the surrounding cities, consider hiring a sewer line inspector.
• You bought the most expensive house on the block.  Shall I say more?  If you have a lot of money and it doesn’t really matter – go for it.  But, if you’re like the rest of us, please do not buy the most expensive home on the block.  THINK RESALE VALUE!!!

Take the time to look at comparable homes prior to writing the initial offer.

Ensure that the home will appraise.

Have a discussion with your real estate agent to see how much this home will be worth 3, 5 or 7 years from now.  When I represent home buyers, I always ask myself – if I had to sell this home today what would its pros and cons be.

• Review all offer terms carefully. Crafting an effective offer is a skill.  Strategize on the best way to write an offer with your real estate agent.  Are you asking the seller for concessions?  Is your offer clean?  Is it contingent upon you selling your home?  Present yourself, home buyer, in the best light by being approved by a lender, providing proof of funds, writing an introduction letter to the home seller and having a great and experienced real estate agent effectively packaging all this for you.

Read More: 5 Tips to get more home for your money!

Buying a home in Pasadena or any other city can be stressful and can have many pitfalls.  Ensure that you are guided by a real estate professional that you trust and respect and who has YOUR best interest at heart.

Photo Courtesy of Orin

Pasadena real estate housing market has been on a bumpy ride in 2008, as we enter 2009, it’s always interesting to look at historical trends.

Every month, we, at Pasadena real estate blog, try to bring you a statistical report highlighting Pasadena housing trends. For comparison purposes, we’d like to look at December’s 2008 Pasadena real estate statistics. You can see the analysis at Pasadena housing trends and real estate market report for December 2008.

Read the latest Pasadena real estate housing analysis review at Pasadena Real Estate and housing report.

Looking at historical data and trends is critical in understanding what the Pasadena future real estate market can bring.

So, without further ado, here’s the analysis of where Pasadena real estate has taken us:

First of all, the most significant change each year has been the volume of Pasadena homes and condos sold:

• 2003 has seen the highest number of Pasadena homes sold – 1,402 units. Compare that to 657 Pasadena homes sold last year in 2008. That’s a drop of over 50%.
• Pasadena condo and townhome sales have peaked in 2004 at 744 units sold. Again, the volume of condo and townhome sales in 2008 has dropped by more than 50% from 2004.
• Each year, it’s taking longer and longer to market Pasadena homes. Still, the average days on the market was a bit over 3 months for both Pasadena homes and condos/townhomes. We are still very much in the seller’s market even though it doesn’t feel like it to those of us that has experienced the real estate market over the last several years. The official definition of a buyer’s market is when properties stay on the market for six months or more.

Pasadena real estate is still selling close to asking price:

• 2008 closed at 96.7% of asking prices for homes sold and 95.2% of list to sold price of condos and tonwhomes sold in Pasadena California.

Price per square foot for Pasadena Real Estate:

• Pasadena real estate started seeing price per square foot decreases in 2007 where it dropped slightly to $489 per square foot for homes sold and then a more significant drop in 2008 of 12.5% to $428.
• Pasadena condos and townhomes sold price per square foot was pretty flat from 2004 through 2008 and dropped by 11% this year.

Average Pasadena home sale prices:

• Pasadena home sale prices are back to 2005 levels, ending 2008 at $851,702.
• Pasadena condos and townhomes are paralelling, Pasadena single family homes and are also back to 2005 levels at $504,093.

So what can we anticipate in 2009:

• More foreclosures and short sales – no surprise there.
• Great interest rates for Pasadena home buyers and refinancing.
• Banks tightening up lending requirements and making financing dollars more difficult to get.
• Buyers needing to come up with more down payment funds.
• Home sellers providing more incentives to buyers.
• A much longer marketing period to sell Pasadena homes.
• Internet marketing and social media playing a significant role in selling homes.

Read More: Pasadena Real Estate Outlook for 2009
South Pasadena Real Estate Review – 2003 – 2008
San Marino Real Estate Review – 2003 -2008
Duarte Real Estate Review – 2003 – 2008

See which Pasadena homes and condos/townhomes are listed for sale:

Posted by Irina Netchaev, your Pasadena Realtor.

Trending real estate prices is always interesting especially if you are in the process of finding your next South Pasadena home or are considering selling your home. Information below is for housing prices in South Pasadena from 2003 to 2008.

For the most current South Pasadena housing pricing and trend report, please visit South Pasadena Real Estate Reports and Analysis.

South Pasadena real estate has experienced an amazing five years of growth and 2008 has proven that values for South Pasadena homes are holding fairly steady while adjacent cities are seeing declines.

Single family homes in South Pasadena fared much better than condos and townhomes, but overall the real estate market held.

Read More: South Pasadena Real Estate Market Report for December 2008

San Marino, adjacent to South Pasadena, another very affluent city has done extremely well in 2008 as well. With San Marino property values declining just slightly from an already high numbers of previous years.

Read More: San Marino Real Estate Analsyis – Five Years in Review

Here are the statistics for your review (analysis is below this chart):

Data gathered from ITEC (Pasadena Foothill Association Multiple Listing Service)
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Here’re my thoughts and observations on the data for South Pasadena’s last 5 years in real estate:

• The volume of units for both Single Family Residences (SFR) and Condos and Townhomes was drastically lower in 2008 compared to previous years. South Pasadena volume of sold homes dropped almost 50% from 2007.
• Price per square foot of sold homes remained pretty much stable and ended the year at $510 per sq. ft. That is only 1.4% lower than the selling price per square foot in 2007.
• Condo and townhomes didn’t do as well as single family homes and the price per square foot dropped 9.1%, but has been dropping each month in the 4th quarter of 2008. December closed at $346 per sq. ft.
• Last quarter of 2008 has been tough for both South Pasadena homes, condos and townhomes, with prices moving below the average sold prices for 2008. Take a look at December 2008 South Pasadena Statistics.
• It is taking longer to market and sell South Pasadena real estate.

How will South Pasadena real estate market do in 2009?

• South Pasadena home prices will move down a bit more in 2009 especially for condos and townhomes.
• Inventory of homes for sale will increase due to additional short sales and foreclosures on the market.
• Homes will stay on the market longer due to lenders tightening of funds.
• South Pasadena home buyers will need to come up with more cash: conforming rate limit dropped to $625,000 and 2nd Trust Deeds will be more difficult to get and will be a lot more expensive.
• South Pasadena schools will continue to be the #1 driving force for home sales in South Pasadena.

Read more: South Pasadena City Guide

If you are interested in seeing the homes for sale in South Pasadena, the list below will contain all available South Pasadena listings in the Multiple Listing Service:

If you have questions about any of the data listed above or would like a private consultation to sell or purchase your South Pasadena home, please call Irina Netchaev at 626-204-3340.