Mobile post sent by pasadenaviews using Utterz.  Replies. ]]> http://www.sanmarinocarealestatehomes.com/1471-normandy-pasadena-2095000/feed/ 0 http://www.sanmarinocarealestatehomes.com/timing-the-real-estate-market/ http://www.sanmarinocarealestatehomes.com/timing-the-real-estate-market/#comments Tue, 20 May 2008 14:58:26 +0000 irina http://pasadenaviews.wordpress.com/?p=63 When opportunity knocks, are YOU listening?

Or, are you just hearing the white noise?

As I was getting ready to go to work this morning, I overheard a news report that my husband was watching about the real estate market.  What struck me as odd was not that it was yet another “chicken little” report about the downfall of the Los Angeles real estate values.  Let’s face it, there’s nothing like fear to get viewership.

No… what struck me as odd was that immediately after that dreaded real estate “for sale” sign, there was an image of a No Vacancy sign and a discussion about the difficulty renters are having finding good housing at a reasonable price.

So let’s see… the prices are going down and the rents are going up, does anyone see an opportunity here?  Savvy investors do.

It’s common sense, isn’t it? 

There’s an opportunity for investors to get into properties at a reasonable price and get them rented quickly.  Demand is there!

Now is also a great time to purchase that investment property at pretty decent interest rates. 

“Finance costs will rise as the economy recovers, so trying to time real estate might not pay off” – Justin Sullivan / Getty

Let’s take a look at the price of homes in its relationship to the price of financing:

Scenario #1 – Price of a Pasadena home decreases 5% and interest rates increase .5%

Scenario #2 – Price of a Pasadena home decreases 10% and interest rates increase 1%

The assumptions for the above scenarios are 20% down and a 30 year fixed mortgage.

As you can see, even if the prices go down 10%, but the interet rate goes up by only 1%, your monthly payments will be about the same.  Interesting relationship between prices and rates.

With the rental prices going up, interest rates still being historically low and the home prices more affordable, the time could be right to buy a Pasadena home or investment right now.

The question is, is the time right for YOU to buy a Pasadena home right now?  I don’t know.  It depends on YOUR individual needs.  

What I would suggest though, is that you get together with a Pasadena Real Estate agent who can sit down with you and take a look at your long term personal or investment plans.  Someone that can provide FACTS not conjecture and then make a decision that is right for YOU.

Also, there’s an interesting article in Times Magazine that provides a level look at the housing market – see it here.

If you are ready to see if the time is good for you to buy a home, please do not hesitate to call me at 626.627.7107 or email me at Irina@Irina4RealEstate.com.

There are only four events that can cause a reappraisal of your Pasadena home by the Assessor.  They are:

1. A change in ownership.  For example you sell your Pasadena home or inherit your Pasadena home.
2. Completed new construction.
3. New construction partially completed on the lien date (January 1)
4. A decline-in-value – READ MORE:  Proposition 8

Change in Ownership Appraisalswill take place when a publicly recorded transfer occurs.  The assessor will receive a copy of the deed and will then determine whether a reappraisal is required under the California State law. 

Transfers of Pasadena property between husband and wife does NOT cause a reappraisal for property tax purposes.  This includes transfers resulting from divorce or death.  Also, the addition of joint tenants, whether related or not does not result in a reappraisal.

In most cases, transfer by irrevocable trusts are reappraisable.  Keep this in mind if you inherited a property via trust.

New Construction Appraisals are done when an assessor receives a copy of building permits. 

Rule of thumb: 

New buildings, additions and other structures REQUIRE a reappraisal.

Structural repairs and/or replacements would NOT REQUIRE a reappraisal in almost all situations.

For more information, please visit the Los Angeles County Assessors Office or call them at 213.974.3211.

If I can be of any assistance with your Pasadena Real Estate needs, please do not hesitate to email me at Irina@Irina4RealEstate.com or call me at (626)627-7107.  Thank you!

I’ll start a series on Short Sales and how they work shortly.  In the meantime, if you would like a detailed list of available Pasadena short sales homes, please email me at Irina@Irina4RealEstate.com or call me at 626.627.7107.

Here’s an excerpt…

For the full article, please visit her post at http://travel.nytimes.com/2008/03/16/travel/16hours.html?ex=1363492800&en=a38a57df05bdce59&ei=5124&partner=permalink&exprod=permalink

You had to be here!  Absolutey gorgeous!!!

There are a few things that you should consider if you are thinking of buying a condo:

Maintenance:  the nice thing about owning a condo or townhome in Pasadena or surrounding cities is that the Home Owner’s Association takes care of most of the maintenance to the structure of the building.  The rule of thumb is that if a repair is needed to the outside of your condo, common walls and balconies, the Home Owner’s Association will take care of it.  If the repair is needed inside your unit, it is your responsibility.

It certainly takes away from having to worry about a lot of repairs that most home owners are faced with like roof, water intrusion, etc.

You are limited though in what can be done to the outside of your property by the rules of the association.  So, if you’re thinking of doing something creative like changing a door or the type of windows that you have, you will need the review and permission of the association’s board first.

Rules & Regulations/CC&Rs:  mostly all condos and townhomes are governed by CC&Rs (Covenants, Conditions & Regulations) that have been created by the original developer of the complex and possibly modified by the board of directors over the years.  There is also a separate document for Rules & Regulations listing additional items to consider.

It is very important that you read both documents thoroughly prior  to purchasing your condo or townhome to ensure that you are comfortable with the association’s pet policy, quiet hours, move in/move out process, etc.

Financial Documents/Meeting Minutes:  please review the balance sheets and budget of the association to ensure that it is in good financial shape.  You want to see a healthy amount of reserves for unanticipated repairs and for needed replacement items down the road.  If there are no reserves or the reserves are limited, you might face a special assessment.  Special assessments can be levied and add to the cost of ownership if the association is unable to pay for needed expenses.

I also recommend that you review a full 12 months worth of meeting minutes.  This will give you a pretty good idea of the issues that have been encountered in the past and what is anticipated for the future.

Insurance:  most associations have structural insurance and in and around Pasadena most carry earthquake insurance.  Your Realtor will ask for the insurance certificate to see the limits and the type of coverage for a particular condo complex.  I always suggest buying additional insurance coverage for the interior of your condo or townhome.  This policy will cover your furniture, jewelry and liability.  Most insurance carriers will provide them and they are not overly expensive.

COSTS OF OWNING A CONDO/TOWNHOME:

On top of the regular expenses like your mortgage, taxes (usually run about 1.2% of selling price in Pasadena),insurance and utilities, you will have to pay Home Owner Association (HOA)Dues. 

HOA dues are monthly fees that support the maintenance of the outside of the complex, gardening, pool & spa and other amenities, structure insurance, water (yeah!  most condo/townhome owners do NOT need to pay for water), and common area electrical and gas.

So… if you are thinking of buying a condo or townhome, make sure to add the HOA dues, set aside some funds for a possible unexpected special assessment and include funds for an interior insurance policy.

The real estate market in and around Pasadena, California has been pretty steady.  It’s not as hot as it used to be, but we’re definitely seeing a shift to a more balanced market.

Buyers are being more cautious and are taking a little more time to find the home of their dreams.  Sellers are begining to be a bit more realistic about how fast their home will sell and for what price.Is this a good thing?  Yes! 

Pasadena home prices could not have sustained the 20% to 25% increases in home values for much longer.  The fact that the prices are stabilizing at more reasonable 5% to 7% increases is great for everyone involved.This list of the top ten mistakes are geared towards you, the potential seller.  Selling a home can and still is quite profitable in today’s changing market. 

So here you go… my list of the top 10 mistakes that I see sellers make today:

MISTAKE #1:  FSBO (For Sale By Owner) – Can you sell your home yourself?  Certainly… thousands of people across the country do it everyday.  Can you sell your home for top dollar, with less hassles and ensure that all the paperwork is completed correctly and the required disclosures are provided to the buyer?  Most likely not.