Reasons to Hire a Realtor

I hear it all the time from friends and people whom I’ve met.

Branden Chhour
Realtor / CPA

  1. “WHY DO I NEED TO HIRE A REALTOR?”
  2. “The realtor doesn’t do anything. They just show me the house that I FOUND ON MY OWN and then gets paid.”
  3. “I’ll just use the listing agent as my realtor”

I am sure that you are saying the same and agreeing to those statements if you have never bought a home before. For those of you own a home or property, you might have had this preconceived notion as well.

Let me explain why anybody should care about real estate sales being handled by realtors.

 

  1. “WHY DO I NEED TO HIRE A REALTOR?”

There are real estate agents and there are realtors. Both are licensed to handle real estate transactions. However, REALTORS are members of the National Association of Realtors. They are held to follow the REALTOR® Code of Ethics. According to NAR, there are 17 articles in the Code of Ethics and they are strictly enforced.

If it is your first time buying a home, I would recommend utilizing a realtor to help you with the process. There’s an agency relationship, where the realtor has a fiduciary duty to look after the seller’s or buyer’s best interest. Realtors can save you time by doing most of the leg work, save you money during negotiations, and stress by handling all the phone calls. A good realtor essentially acts like a buffer between you and the other party.

Sure, Redfin and other real estate search websites are great. But they lack those intangibles listed above that a realtor offers to their clients. In addition, data on those sites are usually not up to date. Realtors on the other hand can provide the most up to date reliable data. They can offer in depth analysis straight from MLS – Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices that are more accurate than what you find from those websites.

 

  1. “The realtor doesn’t do anything. They just show me the house that I FOUND ON MY OWN and then gets paid.”

A realtor does more than just show houses for their clients. Realtors are resources for the clients to use because they usually have a good understanding of the neighborhood. They also will likely have a vast network of lawyers, contractors, attorneys, termite inspector, home inspector, and plumbers at the client’s disposal.

Realtors can identify comparable sales and hand these facts to the client to make sure they are not overpaying or underselling. For example, you may know that a home down the street was on the market for $350,000, but a realtor will know if it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow. There’s a lot of administrative paper work in the background that a client does not see.

 

  1. “I’ll just use the listing agent as my realtor”

I know many potential buyers say they rather buy the house directly with the listing agent in hopes of getting a “better” deal. I would advise against this strategy if I was speaking to a buyer because it is like going to court where the plaintiff and the defendant shares attorney. If the opposing parties never share attorney in court, why would buyers and sellers share the same realtor? At the end of the day if a Realtor represents both buyer and seller, they will always side with the seller.

Speaking from my own experience, I would like to end this by saying if you have never bought a property before, I would recommend you hiring a Realtor like myself to help you facilitate the process. I have friends who are real estate investors, and they would use my service to help them administer transactions.

 

If you are interested in making a real estate purchase or a sale in Los Angeles County and Orange County, please reach out to me for consultation.

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OC Housing News

10/21/2014

OC Home rates are up 6.4 % in September and also Property for sale Expert ask’s if the GSEs are going back to subprime financing?

An autumn chill sneaked into the property for sale orange county, freezing the average residence cost listed below the $600,000 limit touched briefly previously this year and keeping a lid on sales.

The average cost of an Orange County residence– or cost at the midpoint of all sales– was $585,000 last month, CoreLogic DataQuick reported Monday.
That’s up $35,000 from September 2013 for a 6.4 percent year-over-year acquire, DataQuick amounts show.  However it’s down $5,000 from August. Orange County’s mean cost generally dips around 1.3 percent from August to September as kids return to school.
September saw 2,980 Orange County houses, condominiums and also townhomes change hands, 64 systems greater than in September 2013.

The 2.2 percent rise was the very first year-over-year acquire in 12 months, however was due generally to the huge come by transactions that happened in late 2013 because of rising home loan prices and also lowering purchasers able to pay last year’s ballooning home rates.

September’s sales total amount was 34 units listed below August’s– again, normal for this time around of year. DataQuick amounts show that September sales fall around 10.4 percent from August to September.
Regionwide, the Southern California mean cost was $413,000, up 8.1 percent, DataQuick stated. Last month was the initial time in more than two years that none of the Southern California’s 6 regions uploaded double-digit year-over-year rate gains.
“Price appreciation has dipped into single-digit territory as even more would-be customers obtain priced out, financiers back off and also incomes increase modestly at most effectively,” DataQuick Analyst Andrew LePage stated.

Irvine Renter 11 Astute Observations

Mel Watt revealed a variety of changes created to release the credit report box and also promote borrowing. This does not suggest a go back to subprime.
Those people that viewed the real estate bubble in addition to breast and extensive it’s reasons are significantly worried for going back to the heartbreaking loaning methods of the past. Although some degree of credit rating report aiding to release was unavoidable, the last thing any type of one of us should want to watch is a go back to careless subprime loaning, especially since the United States Taxpayer is responsible for all the losses.

GSE-warning
Recently’s statement of launching requirements at the GSEs thrilled everyone in the realty market. Lenders, real estate professionals, as well as homebuilders all are glad the chance to shut additional deals, yet prior to they commemorate, they should take an exceptional check out exactly just what was in fact announced as a result of the fact that none of it will certainly have much influence on the industry.
Mel Watt and Julian Castro expose property plan alterations
Sarah Wheeler, October 20, 2014
… Watt mentioned that the FHFA was explaining the Representations as well as Warranty Framework to help reduce repurchases.

“We realise that the Representation and Warranty Framework did not offer sufficient top quality to make it feasible for loan provider to understand when Fannie Mae or Freddie Mac would exercise their option to need repurchase of a funding. And also, we know that this concern has really added to lending institutions imposing credit past overlays that raise the cost of lending as well as restrict providing to customers with much less as compared to best credit scores or with much less standard monetary circumstances.”.

Watt mentioned the FHFA’s modifications consist of simply pointing out life-of loaning exemptions, which fall under 6 groups: loan_qualification.
1. Misrepresentations, misstatements and also non inclusions.
2. Information mistakes.
3. Charter compliance problems.
4. First-lien leading concern as well as title matters.
5. Lawful conformity offenses.
6. Unwanted home mortgage items.

For financings that have currently made repurchase comfort, Watt mentioned that just life-of-loan exclusions could trigger a repurchase under the Reps and guarantees structure.
In one of one of the most significant policy adjustments, Watt revealed that the FHFA is establishing a minimal number of financings that should be identified with misstatements or information inaccuracies to trigger the life-of-loan exemption, to make certain that the GSEs will absolutely be responding to a pattern of misrepresentations or information blunders, not just outliers.
The FHFA is additionally consisting of a “significance” demand to the misstatement and also inaccuracies implying to make sure that GSEs could possibly take into consideration whether the blunder would definitely have protected against moneying the funding at the front end.
Watt asserted the GSEs would certainly be announcing additional information on adjustments related to representatives as well as guarantees in the near future, including: two_years.
Establishing an independent dispute resolution procedure.
Recognizing solution systems as well as alternate treatments for lower-severity financing problems.
Repairing representations as well as solution guarantees.
Transforming compensatory charges in addition to repossession timelines.
… “I wish our activities offer appropriate surety to enable your company to reassess existing credit report overlays and even a lot more highly make responsible financings available to creditworthy customers. This will certainly lead to a real estate market that is not simply much better for debtors, yet additionally a lot better for the Enterprises along with loan provider and also helpful to our nation, Watt specified.
Castro explained HUD’s technique to expand ease of access to credit history with its Blueprint for

Access projects:
Overhauling the Single Family Housing Policy Handbook to provide loan provider clearness on policies and also conformity. Presenting the Supplemental Performance Metric to record a more in-depth perspective of a lending institution’s portfolio efficiency, contrasting lending carriers on their efficiency with others doing business in specific credit guide ranges.
Redrafting the Loan Defect Taxonomy to enhance 99 numerous codes straight into 9 categories of funding troubles.
Starting a Ginnie Mae aviator program to provide smaller sized loan provider more access to the added market.
These changes will certainly be welcomed with a great deal of enjoyment in the market as well as partially improve loaning as it makes clear the limitations, yet it doesn’t materially change anything.

Source: http://ochousingnews.com/blog/gses-returning-subprime-lending/#ixzz3Gng5JTD9.

oc-property-for-sale-expert

Los Angeles and Orange counties are the least-affordable housing market in the country

Los Angeles and Orange counties are the least-affordable housing market in the country. And it’s likely to only get worse.

That’s according to new figures due out Thursday from real estate website Zillow, which found that renters here need to pay more of their income to afford a place to live than anywhere else in the country.

Adding to the affordability woes, Zillow is predicting that home prices here will climb 5.7% in the next year, outpacing likely growth in most people’s paychecks.

For people who aren’t on the high end of income distribution — teachers, police officers — it becomes a real issue.
– Svenja Gudell, Zillow’s senior director of economic research
The real estate website crunched for-sale and rent prices and incomes across 35 housing markets in the U.S. It found that a family earning the median household income of $59,424 in metro Los Angeles — defined as L.A. and Orange counties — would need to spend 47.9% of its income to afford a median-priced rental apartment, and 42.6% to afford a median-priced house. Both were the highest share in the U.S., though L.A. tied with San Francisco in for-sale housing.

Prices here have grown much faster than incomes in the last few years, said Svenja Gudell, Zillow’s senior director of economic research. That’s pushing L.A. housing out of reach for many.

“For people who aren’t on the high end of income distribution — teachers, police officers — it becomes a real issue,” she said.

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Zillow’s figures echo a recent study by UCLA’s Ziman Center for Real Estate, which also pegged Los Angeles County as the least-affordable market in the country, and said that the rent crunch here has spread up the income ladder, to affect more middle-class households.

It’s a twofold problem, economists say.

Housing prices here are high, though not as high as in the Bay Area, and comparable to New York, Washington and Boston. Those places score better on affordability measures, though, because people there tend to earn more than the average Southland resident. Median household income in the San Francisco area in the second quarter was $76,239, according to Zillow; in the L.A.-O.C. area it was $59,424.

L.A.-O.C. housing market is least affordable in U.S.
Prices have grown much faster than incomes in the last few years, a Zillow research director said. That’s pushing L.A. housing out of reach for many. (Cheryl A. Guerrero, Los Angeles Times)
“Los Angeles has a lower median household income than comparable cities such as New York or San Francisco but only a small difference in median rents,” the UCLA report said.

Even for professionals with good incomes, buying a house in Southern California is a heavy lift, as Natalie Lohrenz sees every day.

As the director of counseling at the Consumer Credit Counseling Service of Orange County, she works regularly with first-time buyers trying to purchase a home in a place where the median house cost $600,000 in July, according to CoreLogic DataQuick. Last week, Lohrenz said, she met a registered nurse with a six-figure income who was struggling to buy a two-bedroom townhouse in Irvine.

cComments
@tear_down_my_reason Notice that most people live outside of California, I have relatives in Chicago and Michigan (not Detroit) and they like it there. Now that I have my piece of Golden State paradise near the coast (I have ocean views sitting on the throne). Remember Moonbeam V1.0 and small…
MAX PLANK
AT 1:16 PM AUGUST 22, 2014
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“In the majority of the country, she’d have no problem at all,” Lohrenz said.

One reason California is so unaffordable, said Gudell, may ironically be that it got hit harder in the housing bust than high-cost East Coast markets. Prices crashed. Investors scooped up homes cheap. Then as the market recovered, the price of what was left surged.

“They almost overshot,” Gudell said. “These California markets have these extremely high home values now, but incomes haven’t kept up.”

Related story: High housing costs are a drag on California’s economy, report says
Related story: High housing costs are a drag on California’s economy, report says
Tim Logan
If there’s good news, it’s that those price gains are slowing down. Zillow projects — based on supply, income growth and other factors — that prices here will climb 5.7% in the next year, more than twice the national average. But that’s barely half the pace they grew over the last year, and down sharply from the 8.7% annual jump the firm projected a month ago. Slow income growth is clearly putting a damper on demand, Gudell said.

And the places where rents are climbing fastest tend to be places with strong job growth. Zillow said rents are up nearly 20% in the last year in Santa Monica and Venice, where tech jobs have surged. Rents have fallen in more remote areas such as Lancaster and Palmdale.

That trend probably will continue, Gudell said, as the housing rebound fades and growth becomes driven more by jobs and income.
“It wasn’t as much of a jobs story six months ago,” she said. “Now we have a healthy job market and that’s really what’s driving home values.”

In the long run, that’s a healthy thing, said Keith Gumbinger, vice president of mortgage-tracking firm HSH.com. Price growth based on market fundamentals is a lot more sustainable than growth generated by market swings. Still, he said, it’ll take awhile to work out the damage of the last few years.

“We’re falling back to typical dynamics, and that should be healthier overall,” he said. “But income growth, wage growth, has been pretty weak. They’ve got a ways to catch up.”

tim.logan@latimes.com