Homeownership Tips and Resources for First-Time Buyers • July 12, 2023

Saving for a Down Payment? Here’s What You Need To Know

by Christie Thomas

Saving for a Down Payment? Here’s What You Need To Know.

If you’re planning to buy your first home, then you’re probably focused on saving for all the costs involved in such a big purchase. One of the expenses that may be at the top of your mind is your down payment. If you’re intimidated by how much you need to save for that, it may be because you believe you must put 20% down. That doesn’t necessarily have to be the case. As the National Association of Realtors (NAR) notes:

“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”

And a recent Freddie Mac survey finds:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Here’s the good news. Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize.

According to NAR, the median down payment hasn’t been over 20% since 2005. In fact, the median down payment for all homebuyers today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):

What does this mean for you? It means you may not need to save as much as you originally thought.

Learn About Options That Can Help You Toward Your Goal

And it’s not just how much you need for your down payment that isn’t clear. There are also misconceptions about down payment assistance programs. For starters, many people believe there’s only assistance available for first-time homebuyers. While first-time buyers have many options to explore, repeat buyers have some, too.

According to Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments. That same resource goes on to say:

“You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”

Plus, there are even loan types, like FHA loans with down payments as low as 3.5% as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

If you’re interested in learning more about down payment assistance programs, information is available through sites like Down Payment Resource. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.

Bottom Line

Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation about your homebuying goals.

CB Champion Realty

310-439-8570

Selling Strategies for a Quick and Profitable Sale • July 12, 2023

The True Cost of Selling Your House on Your Own

by Christie Thomas

The True Cost of Selling Your House on Your Own

Selling your house is no simple task. While some homeowners opt to sell their homes on their own, known as a FSBO (For Sale by Owner), they often encounter various challenges without the guidance of a real estate agent. If you’re currently considering selling your house on your own, here’s what you should know.

The most recent Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed homeowners who’d recently sold their own homes and asked what difficulties they faced. Those sellers say some of the greatest challenges were prepping their home for sale, pricing it right, and properly managing the required paperwork, just to name a few.

When it comes to selling your most valuable asset, consider the invaluable support that a real estate agent can provide. By partnering with an agent, you can navigate the complexities of the selling process with confidence. Here are just a few of the many ways an agent is essential to your home sale:

1. Marketing and Exposure

Effective marketing is a key piece of attracting qualified buyers to your property. Real estate agents have access to various marketing tools and platforms, including MLS listings, professional photography, virtual tours, and extensive professional networks. They can create a compelling listing that highlights your home’s best features and reaches a wider audience.

If you sell on your own, you may struggle to match the reach of agents, resulting in limited exposure and, ultimately, fewer potential buyers.

2. Managing Liability and Legal Considerations

Today, more disclosures and regulations are mandatory when selling a house. And all that paperwork and all the legal aspects of selling a home can be a lot to manage. Selling a house without professional guidance exposes homeowners to potential liability risks and legal complications.

Real estate agents are well-versed in the contracts, disclosures, and regulations necessary during a sale. Their expertise helps minimize the risk of errors or omissions that could lead to legal disputes or delays.

3. Negotiations and Contracts

Negotiating the terms of a home sale can be challenging, especially when emotions are involved. You may find it overwhelming to navigate these negotiations alone. Without an agent, you assume this responsibility on your own. This means you’ll have full accountability for working and negotiating with:

The buyer, who wants the best deal possible.
The buyer’s agent, who will use their expertise to advocate for the buyer.
The home inspection company, who works for the buyer.
The home appraiser, who assesses the property’s value to protect the lender.

Rather than going toe-to-toe with all these parties alone, lean on an expert. Real estate agents act as intermediaries, skillfully negotiating on your behalf and ensuring that your best interests are protected. They have experience in handling tough negotiations, counteroffers, and contingencies. When you sell your house yourself, you’ll need to be prepared to manage these vendors on your own.

4. Pricing and Housing Market Knowledge

Determining the right asking price for your property is crucial. It requires in-depth knowledge of the local real estate market, including recent sales data, neighborhood trends, and the current demand for properties. Real estate agents have access to comprehensive market data and the expertise to analyze it accurately.

When you sell your house on your own without this comprehensive information, you risk overpricing or underpricing your home. This can result in an extended time on the market and also the risk of leaving money on the table – which decreases your future buying power. An agent is a key piece of the pricing puzzle.

Bottom Line

While selling a home on your own might seem appealing at first, the challenges that come with it can quickly become overwhelming. The expertise that a real estate agent brings to the table is vital for a successful sale. Instead of tackling it alone, let’s connect to make sure you have an expert on your side.

CB Champion Realty

310-439-8570

Unlock Your Real Estate Potential: Career Growth and Agent Opportunities • July 12, 2023

Real Estate Is More Than Just A Career

by Christie Thomas

Real Estate Is More Than Just A Career

Searching across the internet why people are fascinated to become a real estate agent are more on the reasons, such as potential earnings, you are your own boss doesn’t require a college education and higher potential income. These are those initial reasons that you can have at first in choosing these paths, but along the journey of a real estate agent lies a lot of stories when you delve deeper why they need to? Or they have to continue doing it.

Here are some common answers with uncommon purpose:

1.Helping People

This is one of the common answers that you can hear when you ask a real estate agent “why are you doing this?”. It may sound common but helping people to find their home isn’t just simple, it comes with a lot of factors and hurdles along the way. And the role of a real estate agent is important not just in helping them to find their home but also in making life-changing decisions.

2.Family

Family is not just a home but people too. These people you have helped even years ago are not just a client but can also become a family too. Any relationship requires “Trust” and it is one of the most important ingredients in the buying and selling journey–trust from your clients that later on can turn into a more than just client-real estate agent relationship. Choosing the right house for your client is also like creating a safe space and home for them.

3. Knowledge

They say what you “Know” will always be your “Edge”, being a real estate agent will not only help you to know more about laws and things about home but can also help you gain knowledge from different people you work with. When you happen to work with people who migrated from other countries with different cultures. When you work with people who have different career paths. Because you got to know where the person is coming from before you can fully understand and match a perfect home for them.

4. Self-fulfilment

In any services that we offer it follows a wonderful feeling like self-fulfilment and when you help people with their life-changing decisions can give you feeling of pleasure and good feeling.

5. Survival in a Gloomy Economy

Real Estate is a career that people need even in times of recessions, that whatever the status of the economy people need a real estate agent. Real Estate Career is a process and during recessions, the status of the economy will pass by but the real estate industry will continue and durable to last. It is not new and has been here since the beginning. It also has a longevity that is why choosing a real estate career is a good decision.

Environment is one of the important things in molding our lives, and being a Real Estate Agent who helps people with their home and buying journey has a lot of stories to tell and leave a great impact in every homeowner’s lives. Being a Real Estate agent is not just a career—-it’s a lifestyle.

If you are thinking about getting into the real estate industry, you are in a good company. Shine like no other. Join our team today—-The Coldwell Banker Champion Realty Way.

CB Champion Realty

310-439-8570

Ultimate Guide to Buying a Home • July 12, 2023

What Homebuyers Need To Know About Credit Scores

by Christie Thomas

What Homebuyers Need To Know About Credit Scores

If you’re thinking about buying a home, you should know your credit score’s a critical piece of the puzzle when it comes to qualifying for a home loan. Lenders review your credit to assess your ability to make payments on time, to pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from Bankrate explains:

“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability, especially today. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 765. But, that doesn’t mean your credit score has to be perfect. An article from Business Insider explains generally how your FICO score range can make an impact:

“. . . you don’t need a perfect credit score to buy a house. . . . Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799).”

Working with a trusted lender’s the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO says:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”

If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:

Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy, don’t apply for other credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.

When you’re ready to start the homebuying process, a lender will be able to assess which range your score falls in and tell you more about the specifics for each loan type.

Bottom Line

With affordability challenges today, prioritizing ways you can have a positive impact on your credit score could help you get a better mortgage rate. If you want to learn more, let’s connect.

CB Champion Realty

310-439-8570

Ultimate Guide to Buying a Home • July 12, 2023

Two Questions To Ask Yourself if You’re Considering Buying a Home

by Christie Thomas

Two Questions To Ask Yourself if You’re Considering Buying a Home

If you’re thinking of buying a home, chances are you’re paying attention to just about everything you hear about the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, overhearing someone chatting at the local supermarket, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot.

To help cut through the noise and give you the information you need most, take a look at what the data says. Here are the top two questions you need to ask yourself about home prices and mortgage rates as you make your decision:

1. Where Do I Think Home Prices Are Heading?

One reliable place you can turn to for that information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists.

According to the latest release, the experts surveyed are projecting slight depreciation this year (see the red in the graph below). But here’s the context you need most. The worst home price declines are already behind us, and prices are actually appreciating again in many markets. Not to mention, the small 0.37% depreciation HPES is showing for 2023 is far from the crash some people originally said would happen.

Now, let’s look to the future. The green in the graph below shows prices have turned a corner and are expected to appreciate in 2024 and beyond. After this year, the HPES is forecasting home price appreciation returning to more normal levels for the next several years.

So, why does this matter to you? It means your home will likely grow in value and you should gain home equity in the years ahead, but only if you buy now. If you wait, based on these forecasts, the home will only cost you more later on.

2. Where Do I Think Mortgage Rates Are Heading?

Over the past year, mortgage rates have risen in response to economic uncertainty, inflation, and more. We know based on the latest reports that inflation, while still high, has moderated from its peak. This is an encouraging sign for the market and for mortgage rates. Here’s why.

When inflation cools, mortgage rates generally fall in response. This may be why some experts are saying mortgage rates will pull back slightly over the next few quarters and settle somewhere around roughly 5.5 and 6% on average.

But, not even the experts can say with absolute certainty where mortgage rates will be next year, or even next month. That’s because there are so many factors that can impact what happens. So, to give you a lens into the various possible outcomes, here’s what you should consider:

If you buy now and mortgage rates don’t change: You made a good move since home prices are projected to grow with time, so at least you beat rising prices.
If you buy now and mortgage rates fall (as projected): You probably still made a good decision because you got the house before home prices appreciated more. And, you can always refinance your home later on if rates are lower.
If you buy now and mortgage rates rise: If this happens, you made a great decision because you bought before both the price of the home and the mortgage rate went up.

Bottom Line

If you’re thinking about buying a home, you need to know the facts on what’s happening with home prices and mortgage rates. While no one can say for certain where they’ll go, expert projections can give you powerful information to keep you informed. Let’s connect so you have a professional to add in an expert opinion on our local market.

CB Champion Realty

310-439-8570

Investing in Real Estate: Building Wealth through Property • July 12, 2023

Why Homeownership Wins in the Long Run

by Christie Thomas

Why Homeownership Wins in the Long Run

Today’s higher mortgage rates, inflationary pressures, and concerns about a potential recession have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to think about the long-term benefits of homeownership when making your decision.

Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey, 70% of respondents say they believe buying a home is a safe investment.

Here’s a look at how just the home price appreciation piece can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since home prices vary by area, the map is broken out regionally to help convey larger market trends.

If you look at the percent change in home prices, you can see home prices grew on average by just over 56% nationwide over a five-year period.

Some regions are slightly above or below that average, but overall, home prices gained solid ground in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer (see map below):

The second map shows, nationwide, home prices appreciated by an average of over 290% over a roughly 30-year span.

This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision.

And while you may have heard talk in late 2022 that home prices would crash, it didn’t happen. Even though home prices have moderated from the record peak we saw during the ‘unicorn’ years, prices are already rebounding in many areas today. That means, in most markets, your home should grow in value over the next year.

The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and deal with annual lease hikes for no long-term financial benefit? Instead, consider buying a home.

Bottom Line

If you’re questioning if it still makes sense to buy a home today, remember the incredible long-term benefits of homeownership. If you’re ready to start the conversation, let’s connect today.

CB Champion Realty

310-439-8570

Ultimate Guide to Buying a Home • July 6, 2023

Your Path to Homeownership

by Christie Thomas

YOUR GUIDE TO HOMEOWNERSHIP!

Your guide to homeownership

Introduction:

Welcome to Coldwell Banker Champion Realty’s ultimate guide to buying a home. Purchasing a home is an exciting journey, but it can also be a complex process with many decisions to make along the way. Whether you’re a first-time buyer or looking to upgrade your current property, this comprehensive guide will provide you with the knowledge and insights to navigate the home buying process successfully.

1. Determine Your Budget and Get Pre-Approved:

One of the first steps in buying a home is understanding your budget and obtaining mortgage pre-approval. We’ll explain how to evaluate your finances, calculate affordability, and connect you with reputable lenders who can guide you through the pre-approval process. By getting pre-approved, you’ll have a clear idea of your budget and be better positioned to make confident offers when you find the perfect home.

2. Research and Understand the Market:

The real estate market is constantly evolving, so it’s crucial to stay informed. We’ll delve into market conditions, trends, and local insights to help you make informed decisions. Learn how to research neighborhoods, compare prices, and evaluate the potential for future property value appreciation. Our expert agents are here to provide the latest market data and help you identify opportunities.

3. Find Your Ideal Home and Make an Offer:

Searching for your dream home is an exciting process. We’ll guide you through the steps of house hunting, including leveraging online listings, attending open houses, and working with an experienced Coldwell Banker agent. Discover tips on evaluating properties, asking the right questions, and making competitive offers. Our goal is to help you find a home that meets your needs and matches your lifestyle.

4. Navigate the Home Inspection and Closing Process:

Once you’ve found the perfect home and your offer is accepted, it’s time for inspections and closing. Learn about the importance of home inspections, what to look for, and how to negotiate repairs if necessary. We’ll explain the intricacies of the closing process, including title searches, escrow, and working with closing agents. Our team will ensure a smooth transaction, from offer acceptance to the final closing day.

5. Settle In and Enjoy Homeownership:

Congratulations! You’ve successfully purchased your new home. Our guide doesn’t end at closing – we’ll provide tips on moving, settling into your new neighborhood, and maintaining your home. Explore resources on home maintenance, energy-saving tips, and information on local service providers. We’re here to support you throughout your homeownership journey.

Bottom Line:

The journey to homeownership can be an exciting and rewarding experience when armed with the right knowledge and guidance. Coldwell Banker Champion Realty’s ultimate guide to buying a home equips you with the essential information and resources to make informed decisions throughout the process. Our experienced agents are here to provide personalized assistance, ensuring a seamless home buying experience. Start your journey today and let us help you find the home of your dreams.

CB Champion Realty

310-439-8570

Investing in Real Estate: Building Wealth through Property • June 2, 2023

Los Angeles Commercial Real Estate: A 2023 Snapshot

by Christie Thomas

In the ever-changing world of real estate, Los Angeles continues to show strength and adaptability. Let’s take a closer look at what 2023 looks like so far for LA’s commercial real estate market.

Despite facing challenges like a global pandemic and rising interest rates, the commercial real estate market in LA remains vibrant. Thanks to a healthy job market and large population, the demand for rental housing is strong. Areas like multi-family homes and industrial spaces are particularly popular, attracting significant investment and seeing high rental rates¹.

Still, there have been obstacles to navigate. As work trends change and interest rates rise, transaction volumes (the total amount of deals happening) have dropped. Traditional office spaces, in particular, face uncertainty as more businesses adopt hybrid work models that mix in-office and remote work¹.

Yet, LA is a city of opportunity. Neighborhoods like Hollywood, West Hollywood, Northeast Los Angeles, and Lincoln Heights show promising signs for future development. Residential real estate is also seeing increased demand, pointing to growth in the near future¹.

However, we need to be aware of potential headwinds. Factors like geopolitical tensions and high inflation could make 2023 a challenging year for commercial real estate. Despite these possible hurdles, sectors like affordable housing and warehouses (thanks to growing e-commerce) continue to shine. Additionally, retail properties in busy residential areas are performing well².

In summary, LA’s commercial real estate market is dynamic and resilient, showing both opportunities and challenges. As always, for the most accurate and up-to-date information, it’s best to consult with a local real estate professional. Keep an eye on our blog for more updates on the LA real estate scene!

CB Champion Realty

310-439-8570

Saving for a Down Payment? Here’s What You Need To Know

Saving for a Down Payment? Here’s What You Need To Know.

Learn About Options That Can Help You Toward Your Goal

Bottom Line

The True Cost of Selling Your House on Your Own

The True Cost of Selling Your House on Your Own

1. Marketing and Exposure

2. Managing Liability and Legal Considerations

3. Negotiations and Contracts

4. Pricing and Housing Market Knowledge

Bottom Line

Real Estate Is More Than Just A Career

What Homebuyers Need To Know About Credit Scores

What Homebuyers Need To Know About Credit Scores

Bottom Line

Two Questions To Ask Yourself if You’re Considering Buying a Home

Two Questions To Ask Yourself if You’re Considering Buying a Home

1. Where Do I Think Home Prices Are Heading?

2. Where Do I Think Mortgage Rates Are Heading?

Bottom Line

Why Homeownership Wins in the Long Run

Why Homeownership Wins in the Long Run

Home Price Growth over Time

Bottom Line

Your Path to Homeownership

Los Angeles Commercial Real Estate: A 2023 Snapshot

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