Real Estate Information

Before you start looking for homes in the Inland Empire,  you need to decide whether to rent or buy.  Each of these options has its own advantages and disadvantages.  You need to look at your situation and decide which is best for you.

To help you with that decision, here’s an examination of the pros and cons of renting and buying homes in the Inland Empire:

• Pros of Renting.  Maintaining a home properly takes a certain level of time and commitment.  When you rent, you are not responsible for the lawn, major repairs or maintenance.  If you have to leave the area on short notice, you won’t be tied down to a home that needs to sell in order for you to move.
• Pros of Buying.  Because of low interest rates and house prices, many renters find that their current rent payments are similar to what their mortgage payments would be.  Unlike rent payments, mortgage payments add up and create equity in your home.  Additionally, owning your own home provides tax deductions.
• Cons of Renting.  The most significant con of renting is the fact that you get no tax deduction.  If you have to move suddenly, you may have to pay extra money to break the lease.  You may even have decorating restrictions, like not putting nails in the walls.
• Cons of Buying.  To buy a home, you will need a down payment, which can be difficult for some people to acquire.  There’s also the possibility that you may lose money on the home if you have to sell it before you’ve built equity in it or if your local market declines in value.  Also, it can take considerable time and money to maintain homes in the Inland Empire.

After you’ve considered all the pros and cons, there’s one more tool I recommend to help you make an informed decision: Use a free online rent versus buy calculator.

If you’d like help deciding whether buying or renting is right for you, give me a call today at (909) 935-9568 or email me at Randy@TeamCharlton.com.  I’ll put together some current home prices to help you determine what your house payments would be, and I’ll also help you figure out what you can afford.

Brought to you by Randy Charlton of Keller Williams Realty.

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Good credit is more important than ever, if you want to get an Inland Empire real estate loan.   Knowing what’s on your credit report and how lenders view various aspects of your report is crucial.

First Things First

Get a copy of your credit report from all three of the credit reporting companies: Equifax, Experian, and TransUnion.  You are entitled to one free report every year from each of the three credit reporting companies.  Whether you’re considering getting a loan or not, you should always take advantage of that opportunity to make sure your credit reports are accurate.

Range

FICO® scores range from 365 to 840.  While the standards for what lenders consider a “good” FICO® score changes constantly and varies by lender, here’s a general breakdown of today’s standards:

• Over 750 is excellent and should get you the best terms and rates. 
• Under 600 might get you an Inland Empire real estate loan, but you’ll want to shop for the lender who’ll give you the best rates and terms.
• Under 500, you need to brace yourself for waiting until you get your credit in better condition.

What Determines Your Score

There are many things that can affect your score.  Magically (or not), each of the three companies tend to view things just a little differently, which means your score will not be the exact same for all three. That’s why it's so important to get copies of your report from all of them.  However, the two main things that all companies consider in rating your credit score are delinquencies and debt-to-income ratio.

What You Can Do To Immediately Improve Your Score

• Check the entries: Make sure any debts or delinquencies listed are true. Report any errors.
• Pay off debts: But do not close accounts.  Having available credit is good as long as it doesn't look like you’re over-extended by having your credit maxed out.  The lender may worry that you’re living off your credit and can't afford your bills.

If you would like more tips on how to improve your chances of getting an Inland Empire real estate loan, I can help. Call me today at (909) 938-9568 or email me at Randy@TeamCharlton.com for more information.

Brought to you by Randy Charlton of Keller Williams Realty.

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Many potential homeowners are starting to look towards Inland Empire foreclosures as a way to get the home of their dreams without spending their life savings.  What they may not realize is that the sheer amount of foreclosed properties can be daunting.  Some are so completely overwhelmed by the choices that they give up and walk away. 

Inland Empire foreclosures can be great deals, but you’ll have a few decisions to make before you even go looking.  Because there are so many options, here and throughout the nation, it’s important to figure out what type of foreclosed home is best for you.

Government Foreclosures
Homes with federally sponsored loans, such as HUD homes, are repossessed by government housing agencies.  Because these homes offer a lot of opportunities for discount purchases, they move quickly.

Foreclosure Auctions
One of the most common ways to buy a foreclosure is while it’s on the chopping block of a traditional real estate auction. The auction is public, with homes sold to the highest bidder.

REO Foreclosures
Repossessed by the bank, real estate owned properties have been through a foreclosure auction without being bought.  There’s not necessarily anything wrong with the home itself.  In fact, many foreclosure auctions fail to sell the home.  The primary reason foreclosure auctions do not succeed is that the auction price is more than what the property is worth.  When the auction does fail, ownership reverts to the bank and the home becomes an REO.

REO foreclosures also have auctions, but the bidding process is closed and blind – no haggling allowed.  You look over the available properties and come up with an offer to buy the home directly from the bank, rather than competing with other buyers in a public sale.

The good thing with REO foreclosures is that you can also set up the financing and mortgaging options through the same bank.  Often, this gives the bank encouragement to give you a better price for the home.

Whether you’re looking at Inland Empire foreclosures for investment opportunities, or to buy your dream home, you have a myriad of options. Knowing what you want - before you start looking - is one of the best ways to ensure you get the deal of a lifetime!

If you’re unsure which type of foreclosed home is best for you, or if you want help finding a great deal on a foreclosure, I can help. Call me at (909) 938-9568 or email me at Randy@TeamCharlton.com for more information.

Brought to you by Randy Chartlon of Keller Williams Realty.

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If you’re like me and other real estate agents, home sellers, homebuyers and homeowners, you’re always looking for a great resource for information on the Inland Empire real estate market.  You have questions and you want answers. 

• What are the mortgages like in this area?
  
• What are the current selling prices for homes?
  
• What’s a specific neighborhood like?
  
• Is there anything besides the economy affecting the Inland Empire real estate market?

For instance, you want to know current market trends.  Are they stabilizing?  Are things still sliding down hill?  Is there a buying trend sellers can take advantage of to market their homes?  While a professional real estate agent will help you sell or find a home, it doesn’t hurt for you to do some research on your own to become more knowledgeable.  Who knows, you may come up with some ideas we haven’t thought of!

So where can you find reliable information on the real estate market?  On the Internet, there are thousands, perhaps millions, of informational sites. Below are just a few of my personal favorites:

CNNMoney.com (real estate) – The information on CNNMoney.com has no bias in terms of convincing you to sell or buy.  Where are home prices falling? Where are they strongest?  What information do you need to know as a buyer or seller?  From mortgages to pricing and market stability, you can find it here.

RISMedia.com – If you can’t find it on CNNMoney, you can most likely find it on RISMedia.  Home improvement, financing and Foreclosure information are just a few of the topics.  As well, because RISMedia is actually involved in real estate, you can find the latest market information.

DQNews.com – DataQuick provides real estate data on a state-by-state basis or on a specific area.  While the information can be a little technical for the non-real-estate-professional, if you want to know how the Las Vegas region is doing for home sales, or the average mortgage rates in Missouri, DQ can help. Depending on your area, you may have to pay for the data, but it’s fairly inexpensive and can give you great information.

If you’re interested in the Inland Empire real estate market in any way, bookmark this blog and the listed sites for easy reference.  The more you know, the better you can prepare for upcoming trends, good or bad!

If you’re trying to sell your home, or are looking for your dream home to buy, I can help.  Call me at (909) 938-9568 or email me at Randy@TeamCharlton for more information.

Brought to you by Randy Charlton of Keller Williams Realty.

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During a slow market, buyers have the biggest advantages of all.  That’s why now is a great time to buy Inland Empire homes.  You can haggle without feeling guilty because you have the upper hand.  Then, as the market bounces back, you get the extra bonus of rising prices making your home is worth more than it was when you bought it.

Even in this buyers’ market, you need to be a strong buyer. Otherwise, you could crumble when faced with negotiating prices or needed repairs.

Three ways to be a strong buyer of Inland Empire homes:

• Walk in to any home for sale with a set idea of the value of property in the area.  This means taking a little time to do your homework.  When you know the prices of the area, you can't be run over by a forceful seller who is determined to convince you his price is firm.  This knowledge also helps you deal with sellers who are emotionally attached to their homes and can't price them according to true market value.
  
• Walk into a home for sale with an experienced REALTOR®.  When you have a Real Estate professional by your side, you are not alone.  You do not have to be self-conscious or even be the 'strong one.'  Your agent will do all your negotiating for you. You will also benefit from their intimate knowledge of the area and what to look for in an Inland Empire home.
  
• Walk into any home for sale knowing your needs and price range.  Going home shopping without a clear concept of what you want and can afford can lead to emotional decisions.  That can be hazardous for your pocketbook too.

If you would like more tips on how to be a strong buyer of Inland Empire homes, give me a call today at (909) 938-9568 or email me at Randy@TeamCharlton.com.

Brought to you by Randy Charlton of Keller Williams Realty.

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Surprising numbers of potential homebuyers are holding off on buying Inland Empire homes.  They see the housing prices drop and are waiting for them to go lower.  They see the mortgage rates and are waiting for them to drop further.  If this is you, you might want to rethink your strategy and take a real look at potential Inland Empire homes.  

 Here are two crucial reasons why you might not want to wait any longer:

1. Interest Rates on the Rise - Thanks to the Federal Reserve buying $1.23 trillion worth of mortgages, interest rates have been kept somewhere between 4.93% and 5.09% for a 30-year fixed-rate loan.  That’s about 0.4 % lower than it might be without the Fed’s help.  However, by the end of 2009, the Federal Reserve had already started implementing a phase out of the mortgage program.  With the Fed program closing at the beginning of this month, it’s not a question of whether mortgage rates will rise, but when, how much and how fast.  The experts don’t expect them to climb very high, stopping somewhere between 5.5% and 6% by the end of 2010.
2. Lower Home Prices - Home prices, predicted to drop another 5% in 2010, will also make some difference in overall cost.  Putting the falling home prices together with the currently low interest rates, you still have a chance to get a great home at a great deal – for a little while longer.

 Instead of waiting for lower costs that may never come, consider where you are now:

 Do you have good credit?

• Are you pre-approved (not pre-qualified) for a mortgage loan?
• Do you know how much home you can afford?
• Are you certain (or as certain as you can be) of your job stability?

 It’s very possible that the market will never be better than it is right now for buyers.  It’s a buyers’ real estate market, with the scales tipped to make homeownership as cheap as it can get.  If you can afford to buy now, but are waiting for things to get even better, reconsider – you might wait yourself into a market you can no longer afford!

Ready to take advantage of this buyers’ market and purchase one of the Inland Empire Homes for sale?  I can help. Call me today at (909) 938-9568 or email me at Randy@TeamCharlton for more information.

Brought to you by Randy Charlton with Keller Williams Realty.

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Whether you’re looking for an investment property or a home for your family, a Foreclosure might be a good deal for you.  However, buying a foreclosure is different from buying a home from a seller and requires different considerations.

Before you sign a contract, consider what you should and should not do when buying an Inland Empire home in foreclosure.

• DO consider the cost of repairs.  Foreclosures are sold “as is.”  That means the bank will not make any repairs to the Inland Empire home in foreclosure before closing, so you will be responsible for them. For example, if the home needs a new roof, make sure you have enough money to pay for it.
  
• DO get a home inspection.  In a traditional home sale, the seller is required to tell you about any defects or problems they’ve had with the home. However, a bank does not have to supply a disclosure statement because they have not lived in the house and do not have any information about defects.  Make sure you hire a professional home inspector to check the structural integrity and condition of the home.
  
• DO be prepared to wait.  Buying a foreclosure usually takes longer than buying through a traditional sale.  You will have to look through and sign stacks of paperwork.  In some states, banks are required to go through the court system to sell a foreclosure which can take time.
  
• DON’T buy a home just because the price is low.  Banks like to sell their foreclosures as close to market value as possible.  If the price is exceptionally low, there’s a reason why.  Make sure you know it.  Home repairs can easily add up, turning what you thought was a bargain into a money trap.
  
• DON’T expect to flip the home for a quick profit.  Despite what the get-rich-quick-buying-foreclosures crowd tells you, foreclosures don’t automatically mean you’re getting a steal, nor can you always quickly sell them.  Buy a foreclosure because it’s an affordable home for you and your family, not as a way to build an overnight fortune.

When you take your time and do your homework, buying an Inland Empire home in foreclosure can be a great bargain.  I can help you find well-priced foreclosures.  Call me today at (909) 938-9568 or email me at Randy@TeamCharlton.com.

Brought to you by Randy Charlton with Keller Williams Realty.

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The real estate market is shifting toward some definite trends that may affect your home for sale in the Inland Empire.  Since 2006, the median cost of a home has dropped almost 30%. The good news, according to Moody’s Economy.com, is that most of the nation’s metropolitan areas are expected to see less than a 5% drop in prices a year from now.  Even better news, 10% are expected to see modest increases. 

If you have a home for sale in the Inland Empire, keeping an eye on the trends can greatly increase your chances of selling, no matter what the area. Here are two of the biggest trends:

Trend #1:  Home Prices Staying Down
Home inventories are slowly creeping back up, and another 3 million distressed homes are expected to be foreclosed on this year.  As well, one-fourth of current homeowners are now underwater with their mortgages, and 18% of borrowers are choosing to walk away.  In short, stressors on the current housing market may very well push national median prices down another 5%, as mentioned above.

How can I take advantage?
With the glut of foreclosed homes, they’re likely to be your highest competition.  That means competing in price could be disastrous.  Instead, play up the advantages of your home.  For instance, foreclosed homes may need a lot of fixing up.  To compete, make sure your home is inspected and fixed up before it’s listed.  Once you know there aren’t a lot of problems add a one-year warranty for the buyer that covers fixes such as the furnace or water heater. It’s inexpensive and may very well make the difference in how quickly and at what price you sell your home.

Trend #2:  Small Homes Selling Faster Than Large Homes
Larger, more expensive homes now have a 20-month backlog in inventory.  They cost more and require a larger financial commitment.  According to the National Association of Home Builders (NAHB), the median home size dropped from 2,300 to 2,100 square feet since 2007.

How can I take advantage?
If you have a large home, don’t wait until prices dip further; put it on the market now.  The major key to getting it sold now is price.  Keep the price competitive, and start out low enough so that you won’t have to drop the price more than once.  This is a red flag for buyers.

If you have a smaller home for sale in the Inland Empire, you’re already set to take advantage.  People also want to lower their energy bills, which usually happens with a smaller home.  Market these advantages for a better chance of selling.

If you want to sell your home, it helps to keep up with the housing trends and look at each one to see how you can take advantage of it.

If you have been denied for a loan modification or are upside down in your mortgage, there are options for you. Visit InlandEmpireHomeOptions.com for more information.

If you’re trying to sell your home, I can help. Call me at (909) 938-9568 or email me at Randy@TeamCharlton.com for more information.

Brought to you by Randy Charlton of Keller Williams Realty.

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~ GOOD NEWS ~~ GOOD NEWS ~~ GOOD NEWS ~

The news is everywhere - and it's good!  Those who own or want to own Inland Empire homes can take a deep breath.  Home equity is on the rise, according to a recent study by Zillow.com, an online real estate evaluation researcher.  And, Federal Reserve economists agree.  Although home equity isn't what it was three years ago, it's on the rise.

The Fed's most recent "flow of funds" surveyindicates that the net equity of national homeowners grew by almost $1 trillion over the first three quarters of 2009, and rose further by $418 billion between June and September of last year.  Compared to before the bubble popped, that's really not that impressive.  However, after three straight years of steadily dropping equities, it could signify the long awaited end of the housing crash.

In the houseing markets of several cities, negative home equity is dropping; Los Angeles, San Fancisco, Miami and Seattle are just a few example.  Good news for those with Inland Empire homes, but even better news for some of the hardest hit cities, such as Phoenix, AZ, and Fort Myers, FL.

This is the best news yet for those trying to sell their homes, especially with most residential real estate markets'busiest season coming up.  Rising home equity means the high possibility of more interested buyers.  As well, a few things have been happening over the past couple of months that just might be the beginning of a run on housing sales:

• Median home prices are rising slowly but surely; potential homebuyers are getting a little more serious.  Rather than wait for a cheaper house, they're starting to realize that it might not get any cheaper.
  
• The housing supply is shrinking.  At the peak, we had 11 months worth of back supply.  By the end of 2009, we were down to 7.2.
  
• 30 year fixed mortgagesdropped to the lowest point of 4.95% (median), and are now slowly on the rise. Buyers waiting for lower mortgage rates - just like those waiting for lower housing prices - are getting serious about buying now.

Last and most importantly, consumer confidence is growing - something we badly need to get the economy on track.

What's the moral of the story? If your house is one of the Inland Empire Homes for sale and you've been sick with worry that it might not get taken off the block, take a deep breath.  Things are getting better and, if you hang in there, may end up better than you hoped. 

If you're trying to sell your home, I can help.  Call me at (909) 938-9568 or email me at Randy@TeamCharlton.com for more information.

Brought to you by Randy Charlton of Keller Williams Realty.

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I know the words "short sale" may scare you.  But please take just a minute to learn why short sales have become a viable option for your Inland Empire real estate if you're considering Foreclosure.

Once deemed difficult to get, hard to close, and rough on the credit score, corrective measures have been taken to improve the valued short sale.  And, the winners are those who understand how short sales work for Inland Empire real estate.

If you are faced with a house thats underwater, considering foreclosure, or a short sale option, please understand the game has changed.

Short Sales Before versus Now

In early 2009, the typical short sale had less than a 50% chance of success.  Banks were skeptical, underprepared, and unwilling to accept losses.  No longer!

Thanks to aggressive changes made by the Federal Government, the short sale has become the preferred option for distressed buyers, sellers, and lenders.

• The administration has thrown incentives to first mortgage holders, second mortgaged holders, and new lenders.
• Primary lien holders who agree to a short sale can recieve as much as $3,000 from the government.
• Secondary lien holders, who previously were often asked to step away empty handed, now can recieve up to $6,000 for formal releases.

Additionally, there used to be more serious credit devastation for the short sale seller.  In some cases, outright releases were not provided.  The administration has stepped in to protect these distressed sellers.  Today's short sale has less credit impact on the seller as would the credit impact of a foreclosure.

Now that short sales are a viable option, the market has exploded.  Short sales increased by 4% between November 2009, and February 2010.  Activity will only continue to increase.

If you would like to find out whether a short slae could benefit your distressed Inland Empire real estate, give me a call now at (909) 938-9568 or email me at Randy@TeamCharlton.com

 Brought to you by Randy Charlton of Keller Williams Realty.