Paul's Blog

Housing Market In Los Angeles Is On The Rise

Paul Aragon (Pinnacle Estate Properties) — Tue, 05 May 2009 12:10:06 -0500

Many buyers are finding it difficult to purchase a home because they get outbid by numerous other buyers wanting the same home. This trend is increasing dramatically in Los Angeles below the $400,000 price range.

An article at the L.A. Times documents what many dismayed home buyers are experiencing which is opposite of what you hear in most of the major news stations- that the market is still on a downturn.

Being in this industry FULL time (100+ hours a week) allows me to truly immerse myself in the market statistics to reveal a more realistic picture for my clients. When they ask me if we can find a home at 50% off, I explain to them that most homes for sale are already 50% of what they were 4 years ago...then I show them the statistics to prove this point.

When looking for homes to purchase, your best strategy is to be realistic about MARKET CONDITIONS and MARKET COMPARABLES. This industry used to be driven by sellers about 4 years ago- now it's driven by APPRAISALS. If you want to purchase a home of your dreams, you NEED to know what it will appraises for so you

1) Can understand if the listing is below market value- at which point it will have multiple offers.

2) Can be sure that your offer doesn't go over appraised value- at which point your loan will not fund unless you bring in the monetary difference between what the appraisal stated and the asking price.

3) Keep your feet on the ground so you don't get caught in the hype of bidding wars.

Below is a link to the article in the L.A. Times.

I hope this article helps you get into the home you truly desire!

Click Here For Article

Paul Aragon was voted one of the top realtors in all of Los Angeles County by the 2008 Daily News Reader's Choice Awards.

He gladly gives free advice on real estate transactions, contracts, and negotiating the best deal. He can be reached a www.AragonEstates.com or at Paul@AragonEstates.com

How Sweet it is!!! Tips for Having a Smooth Real Estate Transaction

Paul Aragon (Pinnacle Estate Properties) — Wed, 15 Apr 2009 11:54:17 -0500

I had known a client for 2 years and had shown him properties way back when the dinosaurs roamed the earth (pre-mortgage meltdown). Life took a turn and he decided not to buy at that time, but I kept in contact with him through emails and postcards.

After stepping out of his time capsule and the influences of the news media, he decided to go through the process again. We made offers on seven homes and lost out to the properties due to multiple offer situations (every offer was above asking price.) The eighth was a charm and we entered escrow 37 days ago.

Through the whole transaction, he kept asking, "When is the $h!t going to hit the fan. We've been moving smoothly and I have friends warning me that my realtor must be lying to me because every transaction has problems."

I told him that the reason we didn't get into the other 7 properties was simple- it was not meant to be...

- We had a budget we wouldn't go over

- We never countered with more than we could afford AND no more than the house would appraise at

- We had home specifications we absolutely needed

- We had neighborhood considerations we needed

- We had an FHA loan that wouldn't fund if there were items missing in the house

- We got DU approval on the loan BEFORE we made any of our offers

- We submitted ALL tax information, employment information (including phone number of human resources departments for verification of employment)

Plain and simple, we had all our ducks in a row. I told him, "It's because you trusted my judgement and direction which brings us to the close of our escrow today. You knew it would be a journey which required active participation on your part- I drilled that into you before we even stepped into the first house."

If only all our clients were this cooperative, they would come to the same conclusion of their journey...a smooth and stress free closing.

To all those realtors out there- stand firm in the requirements that you know will be in your client's best interest...even if their friends tell them otherwise!

Graphs and Charts EVERY Real Estate Owner Should Have

Paul Aragon (Pinnacle Estate Properties) — Thu, 15 Jan 2009 22:56:10 -0600

Here's a link to a chart that shows September's ACTUAL statistics for the Local Real Estate Market. These are the graphs that the news media doesn't want you to have. Why? because they go contrary to the negative hype that the news media wants to perpetuate.

CLICK HERE FOR CHARTS

When you click on the link, scroll down to the chart that says "Single Family Sales By Price." Look at the category that you are planning to purchase a home or sell your home. If you are a homebuyer and the green bar is longer than the blue bar for your category, you are in trouble. This means that the market for that segment is VERY hot and if you don't purchase soon, you may have to lower your standards for the type of home that you can afford or move to a less desirable city. If you are a homeseller and the blue bar is longer than the green bar for your category, you are in trouble. This means that the market segment is continuing to decline for your price range (better plan ahead and lower the price on your listing). If you haven't already noticed, foreclosures are the majority of the inventory in this market. Buyers- beware of buying foreclosures that have structural problems. These homes are not meant to be purchased by owner occupants, they are meant for contractors or investors. Sellers- beware of keeping your prices too high and negotiating yourself out of the market. The next time you'll experience prices like we saw in 2006 will probably be in 2012. If you can wait that long, then stay where you are. If you can't, MAKE your move right now before interest rates go up.

Paul Aragon is a top rated licensed realtor in the Northern Los Angeles County. He can be contacted at (818) 528-4410 and welcomes questions from all real estate owners, buyers, and investors. He can be reached at

AragonEstates.com

Buy Low Buy High- The Housing Signs Are Everywhere

Paul Aragon (Pinnacle Estate Properties) — Wed, 23 Jul 2008 10:43:52 -0500

In the stock market, it is prudent to buy low and sell high. In the housing market, you want to buy low and buy high!

Over the past 3 years, interest rates have been on the rise. Previously they were at 5.75% and now a jumbo fixed 30 year loan is at 7.5%...and rising!

Foreclosure homes are at a 20 year all time high in California.

If you want to maximize your investment in the Los Angeles real estate market, you want to take advantage of these market conditions and buy when the inventory is high, when the foreclosure rates are high, and when the interest rates are still on the low end.

My golden rule in real estate is this- You can always negotiate a lower price, but you can't negotiate your interest rate. Strike when the investment parameters are to your advantage!

First time buyers and renters should be running out their rental doors to find a home now and get on the equity building elevator. Once interest rates start to rise and the inventory starts to moderate, those that didn't follow this advice will be left at the train station for another 10 years.

~~~~~~~~~~~

Paul Aragon is a highly awarded real estate professional in the San Fernando Valley. He has been noted as one of the top two realtors in all of Los Angeles County by the 2008 LA Daily News Readers Choice Favorite Awards. He is availale for free real estate advice at paul@aragonestates.com

Accessibility - The Key To Selling Homes That Won't Sell

Paul Aragon (Pinnacle Estate Properties) — Tue, 25 Sep 2007 13:35:58 -0500

Make sure your home is easy to show!

To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible. The first thing a good agent will do when working with buyers is talk to the buyer and learn what kind of home they are looking for. Then the agent will search all the available homes for those most closely matching what the buyer wants. Next, the agent puts together a list of the best matches to go show to the buyer. When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first. Many homes on the market have “lock boxes” on them. The lock box is a device which holds a key to the home, that only qualified local agents can access. Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”. If at all possible, you should let your agent put a lock box on your home for easier showing.

If you can’t do a lock box, you need to be sure that you make it as convenient and easy as possible for other agents to show your home. If they call, do whatever you have to do to accommodate letting them show your home to buyers on their schedule. If you don’t, the agent will probably show the buyer other homes, and if that buyer makes an offer on one of them, you’ve just lost a great opportunity.

It’s best if you can leave when the agent and buyer arrive to see your home. Buyers won’t feel comfortable with you there, and it could sour an otherwise good impression.

If you'd like to read more articles on how to sell your home quick in this down market, visit www.PaulAragon.com for all the free reports

Backyard Impressions When Selling Your Home

Paul Aragon (Pinnacle Estate Properties) — Fri, 18 May 2007 13:51:05 -0500

The Back Yard
You only get one chance to make a first impression. When buyers are looking at your home, they will usually know almost instantly whether they like it or not. Make sure that by the time they get to looking at the back yard, you keep that great first impression going. Especially during summer months, when buyers will be thinking about barbeques and children playing, the back yard can make an important impression.

If you have a pool or hot tub make sure you keep it looking clean and neat. If your lawn is looking a little bit weak, some fertilizer and watering will bring back the deep green color. Be sure you mow and edge your lawn frequently until your home is sold. Cut back overgrown shrubs to show more of the exterior of your home. It will look more tidy and also makes the yard look bigger. Fences should be in good repair, and you should consider painting them. Make sure all latches and hinges are in good working order. If you have a dog, be extra vigilant to keep the “evidence” to a minimum. You can plant a few annuals to add some instant color that looks great. If you have a patio, make sure the furniture is clean and strategically placed. Consider adding some potted plants.

In short, do everything you can to make your back yard look as inviting and large as possible. It could mean the difference between an excited buyer and one with nagging doubts!

If you'd like to learn more about selling your home, you can receive a free industry report that has just been released called "27 Valuable Tips That You Should Know to Get Your Home Sold Fast and for Top Dollar." It tackles the important issues you need to know to make your home competitive in today's tough, aggressive marketplace. Just click on the link below.

http://www.onlinehomeinfocenter.com/27_Tips

ABC's of Mortgage Programs

Paul Aragon (Pinnacle Estate Properties) — Mon, 12 Mar 2007 20:01:04 -0500

Private Sector

Conventional Loans - The only security guarantee is the value of the property.

Conforming Loans
Conventional loans that follow the terms and conditions established by the guidelines of Fannie Mae and Freddie Mac.

Fixed-Rate Mortgage
The interest rate and the principal payments remain fixed throughout the loan. Keep in mind your monthly escrow account payment could vary from year-to-year as taxes and insurance rates change.

Variable or Adjustable-Rate Mortgage
The interest rate on the loan fluctuates over the period of the loan. Periodic adjustments to the interest rate are made based on changes to a defined index. The loan's interest rate is determined by adding a fixed number of points to the defined index.

Balloon Loan
Short term, fixed-rate mortgage that has monthly payments usually based on a 30-year amortization schedule and a lump sum payment due at the end of term, usually 3, 5 or 7 years. The interest rate on balloon loans is usually less than a 15- or 30-year fixed-rate mortgage.

Piggyback Loan
A second mortgage that closes with the first. Often the first mortgage is for 80% of the purchase price and the "piggyback" is for 10%. The home buyer covers the remaining 10% with their down payment. (Some lenders will write a second mortgage of 15% or even 20% of the purchase price.)

Housing Finance Agencies
These agencies offer special loan programs to low- and moderate-income buyers, buyers interested in rehabilitating a home in a targeted area, and other groups as defined by the agency. Working through a housing finance agency, you can receive a below market interest rate, down payment assistance and other incentives.

Find your local housing finance agency >

Jumbo and Non-Conforming Loans
Loans above the maximum amount established by the guidelines of Fannie Mae and Freddie Mac. Often the interest rate charged for a jumbo or non-conforming loan is higher than that of a conforming loan.

B/C Loans
Loans for borrowers who cannot meet the credit guidelines established by Fannie Mae and Freddie Mac. The purpose is to offer temporary financing to someone whose credit history disqualifies them for a conforming loan (including someone who has recently filed for bankruptcy, foreclosure or late payment on their credit report). Typically the interest rates run higher and vary depending upon the individual credit situation.

Government

FHA Loans
The Federal Housing Authority (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in helping low- to moderate-income families qualify for mortgages. FHA assists first-time buyers and others who would not qualify for a conventional loan, by providing mortgage insurance to private lenders. Interest rates for an FHA loan are usually the going market rate, while the down payment requirements for an FHA loan are lower than conventional loans. The required down payment can be as low as 3 percent and the closing costs can be included in the mortgage amount.

VA Loans
VA Loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can qualify for a VA Loan, which usually offers a competitive fixed interest rate, no down payment and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.

RHS Loan Programs
The Rural Housing Service (RHS), which is part of the U.S. Department of Agriculture, guarantees loans from private lenders to help low- to moderate income families qualify for mortgages.

Loan Application Checklist

Paul Aragon (Pinnacle Estate Properties) — Mon, 12 Mar 2007 19:58:50 -0500

For many buyers, applying for the mortgage loan is one of the more stressful aspects of buying a home. The loan application need not be a stressful time. By following a few easy steps, you'll sail through the loan application process.

Make a list of any questions you have about the loan program.
Be sure you understand the advantages and disadvantages of the various mortgage programs for which you may qualify, including the advantages and disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages.
Decide if you want to lock-in or float the loan's interest rate.
Locking-in the rate means that the lender commits to the mortgage interest rate for the loan - typically at the time the loan application is submitted. By floating the rate, you can lock-in the interest rate anytime between the loan application day and closing. Buyers opt to "float the loan" when they believe interest rates will drop after their loan application date and prior to closing. The risk is that rather than dropping, interest rates may rise, increasing the mortgage payment.
Decide if you want to pay additional points to lower your interest rate.
Typically you can elect to pay additional points (each point is 1 percent of the mortgage loan payable in cash at closing) to lower the interest rate of your mortgage loan.
Gather your paperwork.
Click here to view a list of typical loan documentation.

Pros and Cons of Homeowners Associations

Paul Aragon (Pinnacle Estate Properties) — Mon, 05 Mar 2007 23:58:23 -0600

As you’re looking for your new home, a good thing to consider is whether or not you want a property that resides in an area with a Homeowners Association.

In the San Fernando Valley area, we have many communities within a Homeowners Association. These associations are generally created to maintain the community's common areas and enforce deed restrictions.

There are pros and cons to living in an area with a Homeowners Association.

Homeowners Association Pros
The purpose of a Homeowners Association is to protect the value of homes and neighborhoods within a development. This is done by maintaining common areas and insuring residents adhere to the rules of the Association. The Association has the right to enforce maintenance and design standards like the color houses are painted and where vehicles can be parked. These restrictions can help prevent anyone in the neighborhood from doing something "wild" that may result in lowering the neighborhood’s property values.

Homeowners Associations Cons
If you buy a property within a Homeowners Association, you are required to pay the Association’s membership fees, which may increase. The association may also enact new rules that you find too restrictive - like what kind of shrubs you can plant or they type of fence you can put in.

If youd like to learn more about how Homeowners Associations impact the properties you’re considering, you can contact me by e-mail at paul@aragonestates.com

Will A Home Improvement Add Value To Your House?

Paul Aragon (Pinnacle Estate Properties) — Sun, 04 Mar 2007 20:21:37 -0600

Determining whether a home improvement will add value to your home can be tricky. There are many factors to consider. Some factors are tangible like the cost of making the improvement. Other factors are less tangible and harder to quantify, like the improved quality of life the home improvement brings you and your family.

When making a dollars and cents evaluation, first consider the costs involved in making a home improvement. Be sure to factor in the costs for materials, labor, building plans, building permits and any changes to your
homeowner's insurance.

Then consider how these improvements will impact the value of your home positively or negatively. (Not all home improvements add value. Some can even decrease the value of your home.) Remember, your return on investment can vary as the real estate market changes. And the value of a home is not always reflected by the selling price. (In a "seller's market" your home's value may be lower than the home's selling price.)

Remodeling Online (http://www.remodeling.hw.net/pages/remodelingonline/index.nsp?) evaluated 15 home improvements in their annual Cost vs. Value Report. This report analyzes the percentage of cost returned for a home improvement when comparing cost to construct versus added resale value. Of the 15 improvements evaluated in the 2003 report, only a deck addition had a positive return (104.2%).

Improvements with returns in the 92.6% 98.1% range in 2003 included: siding replacement (98.1%); bathroom addition, mid-range (95%); attic bedroom (92.8%); and bathroom remodel, upscale (92.6%). These evaluations were conducted in what is considered a seller's market.

It may be that the money you plan to invest in a home improvement would be better spent toward a new house. Selling your current house and buying a new home with the features and amenities you desire may actually save you money. I can help you research the local real estate market to help you make this decision, send me an email at paul@aragonestates.com to schedule a time for us to meet that is convenient.

Buyers Articles to help in their Real Estate Transactions

Paul Aragon (Pinnacle Estate Properties) — Wed, 20 Dec 2006 03:13:28 -0600

Learn 3 Industry Secrets that Will Help You Buy a Home for Less Money
3 Simple Steps to Follow to Slash Thousands of Dollars Off The Price of The Home You Want.

Buy a Home With No Money Down
A new program allows buyers to buy a home with no downpayment.

FREE Special Report - "6 Mistakes to Avoid When Moving to a Larger Home"
A new report has just been released which identifies the 6 most common and costly mistakes that homebuyers make when moving up to a larger home.

How to Beat Out Other Buyers to Hot New Listings
Get a sneak preview of new listings on the market before other buyers with "Priority Access". Priority Access gives you regular VIP bulletins with details on homes you want.

FREE Special Report - "How To Stop Paying Rent and Own Your Own Home"
A new FREE Special Report entitled "How To Stop Paying Rent and Own Your Own Home" has already helped dozens of local renters get out from under their landlord's finger, and move into a wonderful home they can truly call their own. You can make this move too by discovering the important steps detailed in this FREE Special Report

FREE Special Report - "6 Things You Must Know Before You Buy"
Discover how to avoid these costly mistakes.

Distress Sales / Bank Foreclosures
Receive a free weekly report on foreclosures and distress sales in your area.

Free list of the 10 Best Buys that match your home buying criteria

Free list of Zero Down Homes emailed to you daily

Free list of the Very Best Buys of homes on Private Acreage

Access the Hottest New Listings featuring swimming pools

Free list of Fixer Upper properties emailed directly to your inbox!

Hotlist of Upscale Homes

FREE Online MLS Home Search

FREE Special Report - "13 Extra Costs to Be Aware of Before Buying a Home"

Buyer Beware: Mistakes to Avoid Like the Plague When Buying a Home.

Whether to Buy New or Resale

Seller's Articles to help them in their Real Estate Transaction

Paul Aragon (Pinnacle Estate Properties) — Wed, 20 Dec 2006 03:11:06 -0600

FREE Quick Over-The-Net Home Evaluation
Find out what your home is worth by answering a few easy questions.

27 Quick & Easy Fix Ups to Sell Your Home Fast and for Top Dollar
Before you place your home on the market, here's a way to help you to be as prepared as possible.

How to Avoid Getting Stuck With 2 Homes
Have Your Home Bought For Cash - Guaranteed Written Offer in 24 Hours!

11 High Cost Inspection Traps You Should Know About Weeks Before Listing Your Home For Sale To help homesellers deal with this issue before their home is listed, a free report entitled "11 Things You Need to Know to Pass Your Home Inspection" has been compiled which explains the issues involved.

FREE Special Report - "The 9 Step System to Get Your Home Sold Fast and For Top Dollar"
This report clearly identifies potential trouble-spots, and lays out an easy-to-follow step-by-step system to help you get the most money for your home.

Divorce: What to Do About the House
Mistakes to Avoid When Selling Your Home as a Result of a Divorce

How "For Sale by Owners" Can Get Top Dollar For Their Home
How to Sell Your Home Yourself: 10 Tips Real Estate Agents Don't Want You to Know

"So Your Home Didn't Sell the First Time"
Where to Turn When Your Home Doesn't Sell

How Long Will It Take To Sell Your Home?
40% of Homes Sell in the First Month

Find Out What the Home Down the Street Sold For

Guaranteed Sale Program

How to Avoid the 7 Most Common and Costly Mistakes Most Empty Nesters Make
Get the Most Out of The Equity You've Built Up In Your Current Home By Downsizing To A Smaller Home.

Important Legal Issues That You May Be Unaware Of

The 4 Most Common Mistakes Most Homesellers Make When Negotiating the Price They Will Sell Their Home For

Setting Your Asking Price is One of The Most Important Decisions You Will Ever Make