Los Altos & Palo Alto Real Estate Insight

Archive for the 'For Buyers' Category

FOUR PHASES OF BUYING A HOME

To streamline the home buying process for you, we have defined four distinct stages. This article summarizes each step of the process. We encourage you to contact us for more details.

STEP 1: PRE-SELECTION

Initial Meeting

• Define your goals & objectives
• Overview of Multiple Listing Service (MLS) areas, statistics, and maps
• Discuss qualities of “blue chip” properties
• Loan pre-approval
• Create plan of action

Finances

• Meet with mortgage representative and submit application
• Verify purchase price
• Estimate timeline to closing
• Liquefy necessary funds
• Receive pre-approval

Insurance

• Meet with broker
• Verify availability of insurance
• Determine specific information/actions needed by broker to issue insurance

Contract

• Review contracts
• Clarify questions with Jeff or Steve
• Write letter of introduction

STEP 2: SELECTION

Search

• Narrow options for MLS areas, home type, and price range
• Establish MLS auto-search
• Tour neighborhoods and begin process of elimination
• Visit open homes within price range
• Tour properties with Jeff or Steve
• Move quickly when a winner is identified – call Jeff or Steve

Confirmation

• Tour property with Jeff or Steve
• Determine offer date and time
• Drive and walk around neighborhood
• Review disclosure documents
• Verify school districts (if appropriate)

STEP 3: CONTRACT NEGOTIATIONS

Offer

• Meet with Jeff or Steve to write offer
• Tender deposit check
• Deliver letter of introduction

Counter-Offer Strategies

• Make the other person walk away
• Look for trade-offs
• Seek a win-win solution
• Determine if new inspections and/or a walk-through are needed
• Negotiate any newly discovered fix-its
• Verify appraisal and ability to close of escrow on agreed-upon date
• Remove contingencies

STEP 4: ESCROW MANAGEMENT

Details Handled by the Stricker/TenBroeck Team

• Generate buyer’s file
• Meet appraiser at property
• Submit deposit to escrow
• Submit contract to lender
• Monitor loan process closely
• Meet with inspectors (if any)
• Review all reports and disclosures
• Review final settlement statement
• Accompany you to escrow sign-off
• Final walk-through checklist
• Verify possession from seller
• Final review and update of buyer’s file

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Q1 Market Snapshot | Real Estate Continues to Recover

In Palo Alto, Los Altos and surrounding communities, the residential real estate market continued to recover in the 1st quarter of ’10. Supply and demand continued to move back in favor of sellers with multiple offers common and prices rising.

SINGLE FAMILY HOMES

South and Mid-Peninsula Market Snapshot

? Q1-2010 vs. Q1-2009 ?

A Significant Shift in Supply & Demand

Several factors – including improving consumer confidence and lots of rain – caused the number of homes for sale in our market area to decline by 20% on average from a year ago. Sales volume, on the other hand, increased by 55%.

Read the rest of this entry »

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THE Leading Indicator for the Real Estate Market

Consumer confidence is the best leading indicator of the local and national real estate markets.

When the index rises the number of sales rise and inventory of homes for sale falls.  When the index falls, the reverse happens.

The Conference Board just released their latest report indicating a slight rise in the index from 50 to 51.1 http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=3836.  Historically, the Board considers a reading of 80 to represent a good, stable economy, while a reading of 100 or more indicates a growing economy.

Obviously we are a long way from an indication of a good economy, which is why we believe the stock and real estate markets are likely to surprise to the downside later this year.

Home sellers who are planning a 2010 sale should go to market as soon as possible.  Home buyers who are not at risk to rising interest rates may want to exercise patience.

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THE FOUR PHASES OF BUYING YOUR HOME

In our effort to educate you on the home buying process, we have summarized the entire process into four distinct phases.

STEP 1: PRE-SELECTION

Initial Meeting

• Define your goals & objectives
• Overview of Multiple Listing Service (MLS) areas, statistics, and maps
• Discuss qualities of “blue chip” properties
• Loan pre-approval
• Create plan of action

Finances

• Meet with mortgage representative and submit application
• Verify purchase price
• Estimate timeline to closing
• Liquefy necessary funds
• Receive pre-approval

Insurance

• Meet with broker
• Verify availability of insurance
• Determine specific information/actions needed by broker to issue insurance

Contract

• Review contracts
• Clarify questions with Jeff or Steve
• Write letter of introduction

STEP 2: SELECTION

Search

• Narrow options for MLS areas, home type, and price range
• Establish MLS auto-search
• Tour neighborhoods and begin process of elimination
• Visit open homes within price range
• Tour properties with Jeff or Steve
• Move quickly when a winner is identified – call Jeff or Steve

Confirmation

• Tour property with Jeff or Steve
• Determine offer date and time
• Drive and walk around neighborhood
• Review disclosure documents
• Verify school districts (if appropriate)

STEP 3: CONTRACT NEGOTIATIONS

Offer

• Meet with Jeff or Steve to write offer
• Tender deposit check
• Deliver letter of introduction

Counter-Offer Strategies

• Make the other person walk away
• Look for trade-offs
• Seek a win-win solution
• Determine if new inspections and/or a walk-through are needed
• Negotiate any newly discovered fix-its
• Verify appraisal and ability to close of escrow on agreed-upon date
• Remove contingencies

STEP 4: ESCROW MANAGEMENT

Details Handled by the Stricker/TenBroeck Team

• Generate buyer’s file
• Meet appraiser at property
• Submit deposit to escrow
• Submit contract to lender
• Monitor loan process closely
• Meet with inspectors (if any)
• Review all reports and disclosures
• Review final settlement statement
• Accompany you to escrow sign-off
• Final walk-through checklist
• Verify possession from seller
• Final review and update of buyer’s file

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Dont Miss Lowest Interest Rates in Two Generations!

Our friend, Tim Palacios, at Opes Advisors writes in an email economic update today,

“The Tale of 2010 will be depend upon the Federal Reserve Actions, period!  Interest rates will determine how this year goes for mortgages, homeowners and equity markets.  And those specific fed actions and how the marketplace reacts to those actions, are very, very hard to anticipate. 

In all of previous cycles we’ve experienced in this business, when there is a major shift in federal reserve interest rate policy, it is always more abrupt than I ever anticipate and it always catches me and everyone else off guard, even when we know it is coming…. 

As we all know, the feds will stop buying mortgages this year and the private sector must step in.  This probably means (with some volatility) that rates will go up by 1 to 1.25% over the year.  We have already seen an increase since Thanksgiving week of around 25 bps.  The severity of this will depend on the whether we reach stabilization of housing values…

The FOMC will NOT raise short term interest rates for the year, however, will probably have to change their language in their comments.  Our gut feeling is that the moment the Fed changes any one of its words, it’s going to be a very unpleasant experience, because the marketplace has very little patience and a very big imagination. ”

If you haven’t already, Tim recommends that you refi to today’s attractive rates as soon as possible.

Topics: Commentary, For Buyers      Comments Off