Happy Holidays from Imagine Realty

Friends,

We know this time of year can get very busy, so we just wanted to take a moment to wish you happy holidays!

We’d like to take a minute to thank you for your continued support this year. We wouldn’t be where we are today without you. It has been our pleasure to help make your real estate dreams come true.

We hope you enjoy this holiday season and make some wonderful memories with your friends and family. It truly is the most wonderful time of the year.

Remember, we are always here to help you in any way we can. Just give us a call.

Should You Have Your Home in a Trust?

Today I am here with Reba Birmingham from Long Beach Law to talk about the pros and cons of having your home in a trust.

The main pro to having your home or property in a trust is avoiding probate. Probate is very expensive, and it typically takes 10 months to a year. It cost 4% of the first $100,000 and 3% of the next $100,000. It then costs 2% of the next $800,000.

Something important to know is that real estate is valued at its fair market value. So, if you have a $1 million house with a $900,000 mortgage, you don’t have a $100,000 probate, you have a $1 million probate. So, if you want your loved ones to inherit the house instead of having to sell it, it’s best to do a trust.

The con to having your home or property in a trust is that is does cost a little bit. Always avoid Internet bargains because you could get scammed. If you do want to put your property in a trust, have a professional help you.

If you have any other questions, you can get a hold of Reba by phone at (562-621-6300) or go to www.longbeachlaw.com.

Are the Holidays a Good Time to Sell in LA & Orange County?

The holiday season is actually a great time to sell a home. Rates are low, fewer homes are on the market, and a lot of buyers need to close by the end of the year.

With the holidays approaching, myself and Corinne Wallace are often asked questions by folks this time of year that are thinking of selling. They want to know if selling now in LA and Orange County is a good idea, or if they should wait until after the new year. 

In our experience, now is a better time to sell than if you wait. There are five different reasons why:

1. Interest rates are still low. There is a chance that they will go up in December when the Fed meets. Locking in a low rate now is smart.

Interest rates are still low, but may go up in December.

2. There are typically fewer homes on the market, giving buyers fewer to choose from. 

3. Homes that are decorated for the holidays really sell quickly.

4. There are buyers that want to buy and close before the holidays. December is actually the top month for closed home sales.

5. The buyers looking to buy during the holidays are very serious. There will be fewer looky-loos coming through your home.

If you or someone you know is looking to buy or sell a home in Long Beach, LA, or Orange County, give us a call or send us an email. We look forward to hearing from you.

A Free Pie to Say Thanks

We wanted to take a brief moment to express our gratitude to you today. Let us say thanks with a free pumpkin pie.

We wanted to reach out today to wish you a happy Thanksgiving. We're extremely fortunate and thankful to have the opportunity to work with amazing people like you. Our business wouldn't be what it is without you.

We're thankful for you, our clients.

We greatly appreciate the opportunity you've given us to serve you and your wonderful family. More importantly, we appreciate the great friendships we've formed along the way.

If you haven't had the chance yet, RSVP to our free pumpkin pie giveaway! It's our little way of saying thanks. To RSVP, simply send me an email or give me a call.

Have a happy Thanksgiving!

Tips on Choosing the Lender for You

Getting a loan is a crucial part of the home buying process. Here’s what to look for in a lender.

Purchasing a home is a major life decision, and choosing the right lender to help you through it is absolutely crucial. Today, Steve Hankla from New American Funding and I would like to share a few tips with you on selecting the right one. What should you look for when choosing a lender?

1. Choose a lender that you’re comfortable with. This will most likely be a long process, so it’s important to select a lender that you’re compatible with.

2. Choose a lender that is local to your area. This is important because the Realtors, especially the listing agent, will want to be sure that the lender has a good reputation and that they can process the transaction as smoothly and as quickly as possible.

3. Choose a lender with a fair interest rate. You don’t want to pick the lender with the highest or the lowest interest rate, but you want to make sure that the lender has an interest rate that is competitive with most of the large banks and mortgage companies that you may be shopping with.

If you have any other questions about getting pre-approved for a loan or choosing the right lender, give Steve a call at 562-344-5546 or email him at steve@gotoloanpro.com today. If you have any other questions related to real estate, don’t hesitate to reach out to me as well. We’d be happy to help you!

We Are Imagine Realty!

After so many years in real estate, there is one element that keeps us energized and devoted - our clients. Being a part of your journey in real estate, and seeing you achieve greatness is what makes it all so special. So much so, we wanted to rename our team to fully represent our mission in delivering the ultimate in service and care.

We are now Imagine Realty!

In honor of this exciting new chapter, we've launched a brand new website with features that give you access to easy to use comprehensive tools and resources to meet all of your real estate needs. It’s just part of my commitment to continue offering the best service imaginable.

In addition, we also created an amazing new video to showcase our dedication and approach. So, when you get the chance, please check our new website here and video here and let us know what you think! It's time to imagine!

How to Get Pre-Approved in Long Beach

I’m excited to be joined today by Steve with New American Funding to talk a little about the pre-approval process for home loans so that you’re aware of it if you or someone you know is interested in buying a home. It’s not as complicated as some make it out to be.

Pre-approval is very important for home buyers. Most importantly, you want to make sure there is nothing that will come up and prevent you from closing your transaction. Check the credit, income, and any liabilities or debt.

It’s not as complicated as you think.

You have a few different options in how you want to go about getting pre-approved. You can head to the loan officer’s office to fill out forms and hand them in in person. You can also fill out an online questionnaire, where you will then receive a link where you can upload the required documentation. The documentation you’ll need includes your last two years of W-2s and tax returns, and your last two paycheck stubs and bank statements. Once we have that, it only takes about 30 minutes. 

Once you are finally pre-approved, we send out a general pre-approval letter with your maximum amount. Once you’ve identified a property that you plan on purchasing, Steve and his team will custom-tailor that letter for the property.

Thanks again to Steve for joining us. If you have any questions for him, you can call him at (562) 344-5546 or send him an email to steve@gotoloanpro.com

If you have any other questions for us or you are thinking about buying a home, give us a call or send us an email. We look forward to hearing from you.

Settling Your Finances Before Buying a Home

Today Steve Hankla joins us from New American Funding to help answer some questions you might have and give some tips on how to get your financial house in order before you buy a home.  

• How soon should I talk to a lender? About six to 12 months before you plan on actually purchasing and searching for a property. 
• How important is credit score when buying a home? A lot of people assume they have to have high scores, but mortgage lenders like New American Funding will actually go down to a score for as low as 580 for FHA transactions. Of course, if you have a score better than 800, they wouldn’t turn you away either. Remember: the higher the score, the better. 
• What can a lender do to help improve my credit score? After they see your credit, a lender can see where the challenges are and best direct you on what to do to clean up your credit. If you follow some careful instructions, you can pretty much clean it up yourself. 
• How would a past foreclosure or short sale affect my ability to buy a home? There are different programs that allow people to get into a property in a short amount of time (as little as two years for veterans). There are also more conventional products that offer 20% down or more for those who’ve had a short sale within two years. For FHA, if you’ve had a foreclosure you can get into a property after three years. This means many people who suffered during the financial meltdown can now buy a home again.  
• What kind of down payment do I typically need to have? With FHA, the lowest amount is 3.5%. Conventional loans have both 3% and 5% programs available. Veterans don’t need any down payment whatsoever. 

If you have any more questions or would like to start your own pre-approval process, you can reach Steve by phone at 562.344.5546, or email him at Steve@gotoloanpro.com. If you know anyone looking to buy or sell a home, you can reach me at 562.900.9430. Thanks for tuning in, make it a great day.

7 Steps Not to Miss When Buying a Home

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

There are seven key steps you should take to set yourself up for success when buying a home here in Long Beach.

1. Meet with a Realtor. A Realtor is a member of the local board of Realtors and they have direct access to the local multiple listing service, or MLS. They also have intimate knowledge of local neighborhoods and will be your guide through the whole process. Check testimonials and references and ask friends and colleagues for referrals to find the right Realtor for you.
2. Meet with a lender. Assuming you need a loan, a lender will get you pre-approved for it. Check with your Realtor for recommendations on lenders.
3. Have your Realtor set up a home search for you. Realtors can give you access to listings before they show up on all the major real estate websites out there, giving you a leg up on all the buyers not working with a Realtor.
4. Start looking at homes. Make sure you take the time to look at all potential problems areas it could have; the foundation, driveway, roof. Make sure it’s been well-maintained, or prepare to alter the price accordingly.
5. Write an offer. Your Realtor will guide you through writing a strong offer but also and offer that protects you.
6. Escrow process. Once you have an offer accepted, you go into the escrow process, where you typically have 30 or 45 days in a window of time before closing  get the title to the property. This is when you do due diligence and know everything you need to know about the property. This is a time for a professional inspection, for lenders to do an appraisal, and to review disclosures provided by the seller.
7. Closing escrow. This is where you close the process, your loan is funded, you receive the keys, and you start enjoying your home!

"Realtors have intimate knowledge of local neighborhoods." 

If you know anyone looking to buy a home, we would love to help them. Send us an email or call today and we can get started!

What Tax Benefits Are there for Real Estate Investors?

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

Today we are excited to bring you the second half of our two-part series on the tax benefits of owning real estate. Last time, we talked about the advantages of owning and living in a home as far as your taxes are concerned. Today we are talking about even more tax benefits, but this time from an investor’s perspective. Here are some of the best benefits.

First off, you can sell your investment property without having to pay capital gains via a 1030 exchange into another investment property. This allows investors to continue to take out their equity, and re-invest it in something bigger and better.

Let’s say you start off by investing in a single-family home. As it goes up in value, you can sell the property, do a 1031 exchange, and buy a better property with the equity. Some other tax benefits that home investors can take advantage of include deducting property taxes and depreciating the value of a home over 27.5 years.

These are just a few of the ways you can save on your taxes and protect your real estate investments. Before making any moves, however, we advise you to reach out to your tax professional and see what works best for you. If you have any questions, give us a call or send us an email. We look forward to hearing from you!

What Tax Benefits Do Homeowners Qualify for?

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

Our next two videos will explain the tax benefits of owning real estate. In the next video, we’ll discuss the benefits of owning real estate as an investment. Today, we'll cover how home ownership can save you money on your taxes.

Homeowners are able to receive a number of tax benefits. When you go to sell your home, you can take up to $250,000 in tax re-profit as an individual. As a married couple, you can have up to $500,000 of tax re-profit when you sell.

What does that mean for you? Let’s say you own a home as an individual. You bought the property for $300,000, but now it’s worth $550,000. When you sell the property, you have $250,000 in profit, and you’re able to keep that profit tax free. The only requirement is you have to have lived in the property for 2 of the past 5 years. If not, you might be able to get a partial reduction.

Owning a home also gets you certain tax write offs. For instance, you can write off interest on your loan, as well as the money you pay every year in property taxes. Plus, if you take out a home improvement loan, the money you pay in interest is tax deductible.

There are a number of tax benefits to owning real estate. If you have any questions, just give us a call or send us an email. We would be happy to help you! 

Where Should You Turn for Selling Help in the Event of a Divorce?

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

Divorce is an unfortunate life event, but it's certainly not uncommon. Because of this, I've received many questions about how to sell a house while going through divorce proceedings.

The house is usually the last thing dealt with in a divorce, and it is typically the most emotionally charged aspect of it as well. If one of the parties involved can afford to, they can buy out the other party with cash or by refinancing. The second option is to sell the property, and it's up to the owners, and possibly the court, to determine how the proceeds of that transaction will be divided among the parties. 

If the property is under water and there is more owed on the property than it is actually worth, a short sale can be conducted with the cooperation of both parties.  

Regardless of what you choose to do, we recommend finding an experienced agent to guide the process. Open and transparent communication between the agent and both parties involved with the property is absolutely crucial in this situation.

If anyone you know is going through a divorce and needs help buying or selling a property please don't hesitate to reach out to us. We have been through this process many times before and would love to help!

Selling Your Tenant-Occupied Southern California Property

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

Recently, I talked with a past client and they asked an important question: "How do you sell a property occupied by tenants?" Today, I'll share a few tips on selling a tenant-occupied property for a premium price.

Identify if you need to disturb the tenant at all. If the property is a single-family home, condo, or townhouse, and you expect that the buyers will want to live in the property, then yes, you will need to work with the tenants.

My team and I make this process a win-win situation for you and your tenants. We don't want to hassle the tenants, but we want to we show the property to all interested buyers in order to get the highest price.

For example, we recently listed a condo where both tenants worked during the day. We had showings on Wednesdays and Thursdays, and then for a two-hour block on Saturdays. The tenants didn't have to keep the house ready for showings every day, and we still showed the property to all interested buyers. In fact, we got three offers that Wednesday, and another three on Thursday. Even though we had limited showings, this property will be the highest sale in its building. Being tenant occupied did not affect our ability to sell the property for the highest price.

If the property is a multi-unit property, such as a duplex, and we expect the buyer to be an investor, we may not need to disturb the tenant at all. We price the property on the market and let potential buyers know that the property is being offered subject to inspection. Once we receive an offer, we will open up the property for a showing.

This is a common way to sell multi-unit properties. Once all the offers are in, we schedule a time for the buyers to walk through the property. You still need to communicate with the tenants, but it's only to set up one showing.

We recently sold a five unit property with multiple offers. We only disturbed the tenants once, and ultimately, the property sold above asking price.

As you can see, selling a tenant-occupied property is not as difficult as it may seem. If you have any questions, give me a call or send me an email. I would be happy to help you!

Hire a True Professional Real Estate Agent

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

Every day here in Los Angeles and Orange County, there are hundreds of homes that exit the market because they just didn't sell. I recently met with someone who had listed with an agent. The agent was a friend of theirs, and the home did not sell.
 

 

All real estate agents differ. Just because someone has a real estate license doesn't mean they are a true professional! It's crucial to work with a professional real estate agent in order to sell your property. Here's why.

1. Ask for testimonials. When hiring an agent, you should see proof of their success.
 

2. Ask for their marketing plan. Are they just going to put your house up on the MLS and run an open house or two? Your agent should have a cohesive marketing strategy to get your home in front of as many buyers as possible.

3. Are they using technology to target buyers? Make sure your agent is up to date on the latest technological trends. They should be able to track results and show you how your home is being advertised online.
 

4. Are they an expert on the local market? Do they know the average number of days a home spends on the market? Are they up to date on supply and demand? Market conditions majorly impact the price of a property, so you need an agent who knows what's going on.
 

5. Do they give you the ability to fire them? A good agent should allow you to stop working with them at no cost or penalty to you.
 

6. Do they use a professional photographer? The quality of your home photos is critical to how your property shows online.
 

7. What is their strategy to maximize how well your home shows? In other words, do they have a stager or stylist to prepare your home for buyers? Statistics prove that staged homes sell for 6% to 8% more than non-staged homes.

If you have any questions about today's video, give us a call or send us an email. We would be happy to help you!

Southern California Real Estate Market Review

Considering Buying? Click here to search all homes in your area 

  Considering Selling? Get a Free Home Evaluation

2015 has come and gone, so let's go over the housing market forecast for the market in 2016.

In LA County, the average price for a single family home was $540,000, which is a 4% increase for the year. Homes in LA County are selling for 98.8% of the asking price.

In Orange County, the average price for single family homes was $695,000, which is a 2% increase. Homes in Orange County are selling for 97% of the original asking price.

We have particularly low inventory in Orange County and LA County currently. In fact, both counties have 2.6 months of inventory, which is the lowest inventory we've seen in the past ten years. We expect this to set us up for a very strong 2016.

We are currently experiencing interest rates between 3.75% and 4%. In mid December, the Fed increased interest rates by 0.25%. Although this seems like a slight increase, it profoundly affects your mortgage payments. Additionally, we might experience rate hikes again in 2016.

We expect that the market in Southern California will go up 3% to 5% for 2016. Keep a lookout for affordability. Right now, only 30% of the population in LA County can afford the median sales price. In the OC, only 22% can afford to pay the median sales price. That's why we're not seeing the major increases in price that we saw in 2012 and 2013. Affordability has hit a bit of a plateau.

If you have any questions about today's video, give us a call or send us an email. We would be happy to help you!