Thinking of Making an Offer? 4 Tips for Success

So you’ve been searching for that perfect house to call a ‘home,’ and you finally found one! The price is right, and in such a competitive market that you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 Tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 3.6-month supply; This is well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Consider ways of making your offer stand out! Many buyers write a personal letter to the seller letting them know how much they would love to be the new homeowners. Your agent will be able to help you figure out if there are any other ways your offer could stand out above the rest.

4. Be Prepared to Negotiate

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspection uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made, with the seller, or cancel the contract.

Bottom Line 

Whether buying your first home or your fifth, having a local professional on your side who is an expert in their market is your best bet to make sure the process goes smoothly. Happy House Hunting!

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Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

Winter Is Coming… 5 Reasons to Sell Now!

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People across the country are beginning to think about what their life will look like next year. It happens every fall; we ponder whether we should relocate to a different part of the country to find better year-round weather, or perhaps move across the state for better job opportunities. Homeowners in this situation must consider whether they should sell their house now or wait.

If you are one of these potential sellers, here are five important reasons to sell now instead of in the dead of winter.

1. Demand Is Strong

The latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

According to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market (which is 4.5-months).

This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market soon.

Also, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase, reaching historic levels in 2017. Last month’s new home sales numbers show that many buyers who have not been able to find their dream homes within the existing inventory have turned to new construction to fulfill their needs.

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae announced that they anticipate an acceleration in home sales that will surpass 2007’s pace. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker & simpler. 

4. There Will Never Be a Better Time to Move Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.2% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

According to Freddie Mac’s latest report, you can also lock-in your 30-year housing expense with an interest rate around 3.57% right now. Interest rates are projected to increase moderately over the next 12 months. Even a small increase in rate will have a big impact on your housing cost.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.  

That is what is truly important.

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Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

Best Summer Home Renovation Projects

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Summer brings pool parties, ice cream and popsicles, playing in the yard…and renovations. Many homeowners find that some home upgrades are best completed during the warm summer months. The weather is much nicer, contractors have longer daylight hours in which to work, schedules tend to slow down, and labor costs might actually be lower.

Which renovations work best during the summer? Here are some of the most popular ones, ranked from simplest to toughest (or longest).

Small DIY projects

Remember all those little projects on the back burner? Now is the time to tackle them. Everything from staining the deck to installing a new porch railing is fair game. You can do some work in the house too, renovating closets to create more space or creating a study area for the kids. Speaking of the kids, now that they are home for the summer, you can enlist their help in smaller home upgrades that give them a sense of accomplishment.

Painting the house

Whether you are painting inside or outside, summer is the best time to get the job done. When painting outside, summer means you don’t have to deal with spring or winter storms. When you are doing the work inside, you have the advantage of keeping all the windows wide open for the best ventilation and drying. Small jobs can be a do-it-yourself venture, while large projects call for a contractor.

Paving the driveway

Working with asphalt is much easier during the summer months, which is why you so often see contractors working on driveways in the intense heat of the season. The asphalt hardens more slowly, which means a flatter, smoother surface. A good contractor can get the job done in a day; after a few days of curing time, your driveway is ready to use.

Landscaping

If you want to know what your landscaping will really look like, now is the time to set it up. Plants and shrubs need the warm months to become acclimated to their new home. You have the freedom to move flowers around a bit before giving them a final new residence in the yard. Since the ground is easier to dig into during the hotter months, you might also find it easier to install irrigation systems or garden lighting, as well as garden ponds.

In-ground pool installation

This serious home improvement project requires digging through a large part of your yard. Since the job is easier in the summer, you can find a contractor more willing to tackle it. Since it’s faster work, you get your job done sooner, and perhaps you can even enjoy that new pool by the time the hottest dog days roll around.

Kitchen upgrades

During a kitchen renovation, the contractor will kick you out of the space in order to complete the job. So what will you do about eating meals? During the summer months, that is a problem solved by a small refrigerator in another room of the house, a tiny prep area, a few disposable dishes, and a nice grill. Enjoy the great outdoors and have dinner al fresco every night while the kitchen is out of commission.

Adding a home addition

A major home addition requires serious commitment from you and your family. Most home additions take several weeks to several months to complete. During that time, part of your home will be at least somewhat exposed to the elements. No, you (hopefully) won’t deal with rain or wind, but your home will be affected by the outdoor temperatures. You will understandably want this upgrade over as soon as possible, which is another reason why summer is a great time: The days are much longer, meaning that your contractor has more daylight to work on the project.

And that’s not all…

Remember that these projects are just a sampling of home improvements you can do during the summer. Caulking windows, trimming trees, repairing fences or cleaning out gutters are just a few of the other options you have during the long, lazy days of summer. Start your planning early for those long weekends, and enjoy your new renovations before the autumn leaves fly.

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Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

Santa Barbara Real Estate Market Trends – March 2015

Santa Barbara Real Estate Market Trends - March 2015 —————————————————-

Looking to buy or sell a luxury estate, home, condominium or investment property?

Let me help you find everything you need to know about buying or selling a home. Call or email me today!

—————————————————-

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

72 La Vuelta Rd – Montecito – SOLD IN 5 DAYS!

Sold in 5 days

72 La Vuelta Rd – Montecito – SOLD IN 5 DAYS!

Located within the highly desirable Montecito Union School District, this gated, approximately 3,850 +/- square foot home features 5 bedrooms, 3.5 baths, 3 fireplaces, 4 balconies, 3 family rooms, a detached guest house, a 3-car carport and 2 gated entrances which allow for privacy.

http://MontecitoGetaway.com

Looking to buy or sell a luxury estate, home, condominium or investment property?

Let me help you find everything you need to know about buying or selling a home. Call or email me today!

—————————————————-

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

 

4 Cutting-Edge Design Trends for 2015

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Innovative marketing techniques, an emphasis on renewable features, and using big data to meet clients’ needs are just a few of the architectural trends that are set to influence real estate in 2015. Here are the design trends you need to keep an eye on in 2015.

Sustainable and Efficient Design: This year will bring continued interest in energy-efficient and passive design. The passive design movement sets a high standard for ultra-low energy buildings, with a focus on airtight insulation, solar power, and water-saving techniques.

Glass:  Glass from floor to ceiling on the outside of buildings and in between offices has never been more popular. The material transmits natural light, natural heat, is aesthetically pleasing, and creates comfortable living and working conditions. Recent design reports echoe the importance of using solar energy by championing the use of glass on the inside and outside of buildings. According to them, glass brings a feeling of community to the workforce, makes offices feel less stodgy, and is not only cost-efficient but also good for the environment.

Treat Yourself:  In residential design, clients are requesting features that focus on relaxation and stress-free living. Spa-like bathtubs, luxurious bathrooms, outdoor kitchens and patios, hot-tubs, and fire-pits are all in-demand right now.  The rise in “boomerang kids” living at home with their parents post-college and elderly family members moving back in with their kids suggests that residential design in the future will have to be flexible.

Big Data: Big data is impacting just about everything these days, and architectural design is no exception. Data can help architecture firms better understand the needs of their clients and can help them build more efficient properties by treating buildings more like living organisms that can be monitored and changed with the evolution of the needs of the clients.

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Looking to buy or sell a luxury estate, home, condominium or investment property?

Let me help you find everything you need to know about buying or selling a home. Call or email me today!

—————————————————-

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

Montecito Real Estate Market Update through December 2014

Montecito 2014 (1)

Montecito 2014 (2)

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Looking to buy or sell a luxury estate, home, condominium or investment property?

Let me help you find everything you need to know about buying or selling a home. Call or email me today!

—————————————————-

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com