Current Inventory Decline…Listing Needed!

The inventory of available homes continues to decline, while the number of pending sales continue to climb. Here are some stats from 2 of the areas The Ervin Group has had recent listings.

North Orange County: For Sale vs Pending Sales

Notice the number of pending sales (711) is fast approaching the number of home currently available (895).

North Orange County: Months of inventory

Now only 2 months of inventory based on current sales trends!

Chino Hills, Chino, Corona, Eastvale: For Sale vs Pending Sales

By next month (June) Pending sales will likely take over available homes!

Chino Hills, Chino, Corona, Eastvale: Months of Inventory

Currently LESS THAN 2 months of inventory

What does all this mean? LISTINGS ARE NEEDED ON THE MARKET! If you’ve been thinking about listing, now is a great time! Properly marketed homes will have a ton of activity right away. A strong Realtor will be able to field all requests, negotiate the best offer, and help you sell your home for over asking price! Want to see how a properly marketed home looks? Check out the blog post HERE and see The Ervin Group difference for yourself! You deserve the best representation!

Call us today with any questions!

The Ervin Group

Why Online Marketing Matters

Based on who you are referencing, between 90-94 % of all home buyers start their search online. Our job as Realtors is to make sure that we capture the interest of as many of those potential buyers as possible. That means YOUR home needs to look great! We have made this a point again and again. We come across bad online marketing so much that we even started a website displaying bad listing photos (www.BadListingPhotos.com). Now we want to show you the proof with a home that we recently listed. Their listing had expired after nearly 4 months on the market with another Realtor…and very little activity. Take a look at the difference and decide which home YOU would make an appointment to see?

1st Listing with other agent: 0 offers, went expired

2nd Listing with The Ervin Group: 4 offers, currently in escrow

We would not have this success without the professional who took these photographs, Nick Reeves. He is one of the best in the business and has never let us down! You can find more of his work HERE.

If anyone you know is looking to list their home for sale, make sure you stress the importance of online marketing and tell them to interview us for the job! We get results (and Happy Dance when sold…see HERE)

Warmest Regards,

The Ervin Group

Buyer’s… are you paying attention?

I say this in the kindest and direct voice I can. But please keep reading…

The Challenge of Buying in Today’s Market

Inventory is low     

Available homes is at the lowest point in over 6 years     

Was 15 month supply in 2007 (Buyers Market)     

Now 1.7 month supply in 2012 (Sellers Market)

Demand is high     

Highest level of sales since 2006     

Multiple Offers

Appraisals are conservative     

Low comps due to distress sales     

Banks lending conservatively

Multiple Offers are Common (I couldn’t stress this enough!)     

Buyers underestimate the market     

Investors are buying all the properties they can

 

What you need to know: You will be competing against other Buyers You might need to pay above “appraised value” You will most likely be buying a home “as is” You’ll need representation that will fight for you Market forces and time are against you There are no “bargains” . You can’t offer $450k on a property listed at $599k… especially when even the Zestimate shows a value of $697k!

 

What you need:

Prepare to be Decisive

Choose a Neighborhood – Not just a house

You need Access to Hidden Inventory (which is where I specialize)

You need a full-time, connected, and networked Buyers Agent who is fully committed to YOU. (Our team has 3!)

Have a strategy, a plan of action, and a timeline

 

 

How to Make a Winning Offer The secret to negotiating the best price

Disregard the asking price and the comps.  Know the actual market value and base your offer on the right price to pay for the home.  Your Agent should always provide a CMA for a home before you write and offer. 

 

Make it personal.  We “package” our Buyers so that we can eliminate any questions about the Buyer and get the Seller to want YOU to be the one who’s offer gets accepted.  Look for personal things you have in common with the Seller. Consider a personal letter to go with your offer.

 

Write a “Clean Offer”  Don’t write a blind offer.  Your Agent can find out the Seller’s requirements are so you can write your offer with the most acceptable terms possible.

 

Make an impression with a significant deposit.  You’ll have your inspection period with contingencies to allow you to do your due diligence.  So, make your down payment the deposit.

Be prepared to show your pre-approval and proof of funds You want to be able to prove that you are the most reliable and desirable Buyer.  Sometimes a Seller will accept a lower price from a stronger buyer.

 

Do“Drive By” before you schedule showings.  You can usually rule in or out a house based on the street.  Eliminate home shopping fatigue by going to see homes that have the neighborhood and street appeal you want.

 

Stay focused on your needs. Don’t get confused by looking at too many houses.  Write down what your real requirements are so you don’t fall for more than what you need or want.

 

Know the Purchase Agreement ahead of time. You’ll need to know the basics of the Purchase Agreement so you’ll be comfortable signing it.   You need an Agent who knows the contract inside and out and can use it to protect your interests and negotiate for you.

Shorten Timelines Besides the price, the terms of your agreement can make your offer more attractive.  Shorter timelines for contingency removal or close of escrow can help you get better purchase price or win over other offers.

 

Don’t waste Agents time You can alienate the Listing Agents if you ask them questions or ask them for showings.  ALWAYS work through your Agent.

 

Request Your Agent’s Escrow Your Agent will have more control over the transaction and more leverage to resolve any issues if the escrow is handled by an Escrow Company and Escrow officer your Agent has a working relationship with.

Have a Target Date You need to know exactly when you want to move. Establish a goal for when you want to be in your new home and plan a winning strategy according to that timeline.

Now get out there and get off the fence! Be realistic, have fun and move into your home before summer!
My team will give you 110% if you are focused and ready to go! We’ll always be honest and have your best interests at heart.

If you’d like a buyers consultation or just more info on the market.. please contact us today!

Danielle Ervin

www.ErvinGroupRealEstate.com

danielle.ervin@yahoo.com

It’s time to buy :)

You heard us say it before (several times in fact): With prices and rates at all-time lows, there has never been a better time to buy a home! With tax time coming, now there’s an even better reason to jump in now! Take these points into consideration:

• The average tax return in 2011 was $2918 (money.cnn)
• You can qualify for an FHA backed loan with as little as 3.5% down
• Home prices are at the lowest point in decades
• Now ask yourself…why wouldn’t you buy now?

There’s also the tax benefits to owning a home. We’ve documented our top 5 in another post. You can read those HERE.

Already own a home?

Well, if you’ve ever thought about investing in a home…NOW IS THE TIME! Don’t take our word for it, let the numbers do the talking. Sales to third parties, typically investors, rose significantly in January, according to a report by ForeclosureRadar. California saw the most activity, with investors purchasing 3,964 properties for $766.2 million. This is the fourth largest month on record in California, and the busiest since March of 2011. Investors are out scooping up these low prices and rates with more frequency than almost any other time in history! What makes it even sweeter is the fact that the rental market is soaring as well! Where do you think all the families who have to short sell or have foreclosures go? They can’t buy…they have to rent/lease. What are you waiting for???

I’m sure you’ve heard the Warren Buffet article and quotes going around;

“If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”  Warren Buffet

 Why invest in real estate now?

“It’s a way, in effect, to short the dollar because you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.”  Warren Buffet

 

Whether a first time buyer or investor, we are happy to help you with your Real Estate goals!

Danielle Ervin

danielle.ervin@yahoo.com

www.ErvinGroupRealEstate.com

Tax credits for home owners

It’s tax time again! People are always talking about tax write-off’s being one of the benefits of home ownership. But what are the options? We’ve compiled the top 5…make sure you consult a tax professional for detailed information (We are just sharing)!

1. Mortgage Interest Statement (IRS Form 1098). The largest tax deduction for real estate is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year (this includes prepaid interest or points you might have paid at close of escrow if you bought a home last year). Look for Form 1098 from your mortgage lender that reports how much that interest totaled up to last year.  Make sure you include this form with your tax form when you file!
2. Property Tax Statements.  If you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state.  Be careful not to include some of the miscellaneous expenses that some agencies bundle up with the taxes they collect (ie, waste management and local assessments for things like street lighting).  Have your property tax statements at hand and make sure you’re only deducting what’s allowed. If you bought your home this year, it’s highly possible that you might not even have received a property tax statement yet – if that’s the case, look to your Uniform Settlement Statement (HUD).  Usually, you would have received this right after closing. It contains an accounting of credits and debits for you and your home’s buyer or seller.
3. Moving Expense Receipts.  Moving expenses are tax deductible, if your move is closely related to the start of work at a new or changed job location. You must also meet the IRS’ time and distance tests, which can loosely be interpreted as a move 50 miles farther from your new workplace than your old house, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax package.
4. Utility statements for home office.  If there is a part of your home that is “regularly and exclusively” used for business, you might be able to claim that portion of your home as a home office, and therefor deduct some portion of your home utilities and costs of painting and repairs. Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction.
5. Income and Expense statements from rental properties. If you are a landlord, your tax situation is more complicated. You’ll need to have complete income and expense statements when you put your tax returns together. Consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.

If you’d like to start benefiting from some of these tax deductions, and become a home owner (or investor) call us today!

Danielle Ervin

danielle.ervin@yahoo.com

www.ErvinGroupRealEstate.com

FHA to raise mortgage insurance premiums on April 18th

The Federal Housing Administration (FHA) is increasing its annual mortgage insurance premium on all 15-year and 30-year mortgages backed by the agency.

FHA Commissioner David Stevens said recently in a statement, “After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market.” He continued, “This quarter point increase in the annual MIP is a responsible step toward meeting the congressionally mandated 2% reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

The FHA said the changes will boost the Mutual Mortgage Insurance Fund by $1 billion.

What does this mean to you, the home buyer?

Once the change takes place, the monthly insurance premium paid on a 30-year, fixed-rate FHA-insured loan will increase by about $33. For example, http://www.housingwire.com presented this scenario, “…a borrower holding a 30-year, fixed FHA-insured loan valued at $163,000 will be paying $151 per month in premiums, compared to $118 under the current rates.”

We’ve documented all the reasons why now is a great time to buy. This is just another example! Our territories (West San Bernardino/North Orange County) have seen record sales this month. It’s time to get off that fence!

If you are ready to make a move, now is the time! Call The Ervin Group for more info.

Visit our site at www.ErvinGroupReal Estate.com for a free home search!

The Realtor you choose DOES make a difference!

Danielle Ervin

danielle.ervin@yahoo.com

Feng Shui tip to help alleviate stress and sell your home

You may believe that selling your home is impossible in today’s market. There is no doubt that today’s real estate market is extremely difficult to navigate. It can be an emotional process as I tell all of my sellers. You’ll go through a rollar coaster of emotions and I’m there to help make the process as stress-free as I can.

 

Here is a cold hard FACT for those fence-sitters and negative nellies on the market;  thousands of homes sold yesterday, thousands will sell today and thousands will sell each and every day from now until the end of the year.

 

If you believe in Feng Shui, perhaps this can help you alleviate some stress. Your agent or stager probably told you to declutter your home before listing it… so time to get rid of it! Feng Shui teaches that everything is alive and filled with chi or life-source energy and that we are energetically connected to everything we own. Having a lot of things that we are unaware of, such as those stuffed in boxes in the garage,  drawers and closets, translates to stuck energy in our lives.

 

Feng Shui also teaches that our homes having specific energy centers that are connected to all of the key areas of our lives. Eliminating the clutter translates to freeing up these important corresponding energy centers such as those related to wealth, health, career, family and our love lives. Ask yourself: do I love it, is it useful, does it reflect who I am now in my life? If it does not pass the test, throw it out 🙂 or better yet… donate it! Allow your home to flow for a buyer and don’t let them get stuck on your “stuff” rather than the beauty of your home 🙂

 

For more tips on Feng Shui please follow the link below… Read more: http://www.care2.com/greenliving/6-feng-shui-donts.html#ixzz1mssWVejL

 

For all of your real estate needs please give my team a call or email today 🙂

 

Danielle Ervin

danielle.ervin@yahoo.com

www.ErvinGroupRealEstate.com

Proud to share…

I am truly dedicated to my career and my clients. Some may find it hard to understand but this IS my passion. I’m so honored to have this press release run in the Orange County Register yesterday. I’m proud to share and and I share it shamelessly because each and every one of my clients has got me to where I am in just 3 short years… February will mark my 3rd anniversary of selling real estate on my own. Prior to that I was an assistant and transaction coordinator…. it took a lot for me to believe in myself and it was the best decision I have ever made.
Please take a moment to read this article to get to know ME just a little better 🙂 http://epaper.ocregister.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=OCRss&BaseHref=OCRNorthCountyLiving/2012/01/26&PageLabel=2&ForceGif=true&EntityId=Ar00201&ViewMode=GIF

What you probably don’t know about FHA loans

One of the rarely touted advantages of people taking FHA mortgages today is the fact that they are assumable. What that means is, when a home is sold, the seller may be able to transfer the mortgage to the new buyer. This means the mortgage is assumable, or can be “taken over”.

Lenders generally require a credit review of the new borrower and may charge a fee for the assumption. Some mortgages contain a due-on-sale clause, which means that the mortgage may not be transferable to a new buyer. Instead, the lender may make you pay the entire balance that is due when you sell the home. An assumable mortgage can help you attract buyers if you sell your home.

Most people believe that interest rates will return to a “normal” range (between 6.5% and 7%) in a couple of years. When you assume a mortgage, the terms remain the same. This means that a buyer five years from now can enjoy a 4 – 4.5% mortgage by assumption rather than the 6.5% – 7% mortgage they would get without it. Since most people buy homes based on how the monthly payment fits into their personal monthly budget, this is extremely impactful.

As an example, a $300,000 loan at 4% today carries with it a $1,432.25 principal and interest payment on a 30 year fixed mortgage. If offered for sale in five years, the purchaser could assume the $271,858.56 balance with the same $1,432.25 payment and remaining term of 25 years. The total payments over the 25 years would be $429,675.

Compare that to a new $272,000 loan at 6.5% for 25 years, which would carry a monthly payment of $1,836.56 (over $400 more a month than the assumption and more than $120,000 more over the 25 year term). At 6.5% for 25 years, to wind up with the same payment as the assumed mortgage, our borrowers would only be getting $212,000…$60,000 LESS!

The point here is that, when rates go up, homes with assumable mortgages will have more value and will sell at higher prices because they are more affordable. As an additional bonus, the closing costs on assumable mortgages are significantly less. The borrowers must be credit-worthy of course (have good credit, qualifying income, and necessary assets to close), but they would have to be credit-worthy to get a new mortgage too!

Besides the multiple other reasons to obtain an FHA mortgage (low down payment requirements, extended income ratios, lower credit scores, and easier sourcing of funds), there is another perk. In the future, there is a good chance that you may be able to sell your home for more money because of the FHA loan’s assumability.

So happy BUYING 🙂

Please contact us with any questions or lending needs. We have a phenomenal lender we LOVE to use!

Danielle Ervin
The Ervin Group
http://www.ErvinGroupRealEstate.com
danielle.ervin@yahoo.com

Why Prudential and The Ervin Group should be your luxury team…

At a recent meeting, the owner of our company, Rich Cosner, stood proud in front of our team and showed us the slides below. THIS proves that Prudential is THE Luxury Broker in Orange County and can bring the same results to wherever you are. Prudential agents, including The Ervin Group, are expected to handle all transactions with the utmost professionalism and service. Want to know how Prudential can sell more million dollar homes than ANY other company? It’s in our marketing, networking, and world wide relationships!
Take a look at the 2011 numbers below, all data spans from December 1st, 2010 to November 30th, 2011…

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Now you know why we choose to work with Prudential!  Call us for all your Real Estate needs!