Rent Vs. Buy

To a family that is renting, it comes as no surprise to hear that rental rates are going up. With these rates continuing to rise, buying a home looks better and more practical than ever.
Not only does purchasing a home provide a more secure future for you, but the advantages of home ownership are numerous: build-up of equity; a tax shelter; remodel and redecorate as you see fit. But most important of all, it provides you with a buffer against inflation and rising rental rates.

Every situation is unique. It would be my pleasure to provide you with a personalized analysis of home ownership costs vs. your present rental costs. This analysis is provided free of charge with no further obligation required on your part.

If you would like to receive this analysis or discuss any questions you might have about home, please feel free to contact me.

Buying and Selling at the Same Time

                                                                                                                  Unless you are a first time buyer or seller, there are likely two sides  to your real  estate experience. If you’re selling, you may be looking for something to buy and if you’re buying you probably have something to sell.  Timing is everything! The following tips will help you along the process:

•   Are you in a financial position to purchase a house before selling your current property? If not, talk to your financial institution about a bridge loan. This temporary loan (no more than 6 months) usually provides for interest-only payments.
•   Will you have temporary shelter if you sell the home before you finalize the purchase of another? Investigate options such as renting back from the new owners for a short period of time, renting an apartment, staying at a hotel or staying with friends or with relatives. The best option will depend on the specifics of your transaction and your financial standing. Don’t forget to think about storage and moving options for your belongings.
•   How will the timing of the move or moves interrupt daily activities? Don’t forget to provide your child’s school, your employer or other important relationships with your contact information and your expected length of stay.
Ideally, you’d like both the sale and purchase closing dates to be as close as possible. Contact me to discuss the options to ensure you make the best choices throughout the process.

San Jose last 6 months Sales volume by area

Date is between Apr 2011 and Sep 2011
Property Sub Class is ‘Single Family Residential’
City CityCodeName is ‘SJ San Jose’
Results calculated from approximately 3,300 listings

Crunching the numbers

As an experienced agent, I can help you maximize your time by only considering homes that meet your budget requirements. To be in a strong position to negotiate with a seller, it’s best to be pre-approved for a mortgage.

That means you have a written commitment from a lender for a specific mortgage amount. To a seller, that means you’re a serious buyer. Prequalification is also an option, but that is only an estimate of how much you should qualify for.

There are many different financing options that should be investigated thoroughly before making a final decision. You’re past credit history and the amount of outstanding debt will each play a part in the qualification process.

If you’re considering a move, or hear that any family, friends, neighbors or colleagues are, please feel free to contact me.

Household Safety Tips :Extension Cords

1) Use extension cords only on a temporary basis.
2) Replace cracked or worn cords.
3) When disconnecting cords, pull the plug, not the cord.
4) Teach children not to play with cords or outlets.
5) Use only three-wire extension cords.
6) Never remove round or u-shaped prong.
7) Insert plugs fully – no part of the prongs exposed.
8) Never use cord while coiled or looped.
9) Do not overload the cord.

What Not to do Before Buying a Home!

A lender will examine your debt-to-income ratio to qualify you for a mortgage. Debt-to-income ratio is the percentage of your gross monthly income, before taxes, that is reserved to pay down debt. If you’re serious about buying a home avoid these common mistakes that will compromise the amount of your approved loan:

1. No new debt! Delay large purchases, this includes jewelry, vacations, appliances and especially vehicles. Hold off on buying a new vehicle, as a sizable monthly car payment can push the debt-to-income percentage over what lenders feel is a safe limit, and you may be denied the loan or have to settle for a smaller loan.
2. Do not co-sign on a loan for anyone else. Although you will not be making the payment, the lender still views this as your debt.
3. Don’t move money around. A lender will require you to supply bank statements for all your accounts during recent months. Any large deposits or withdrawals will be red flags to the lender, and may slow or inhibit the escrow. Changing banks is also inadvisable. Remember, the simpler your finances are, the better.
4. Avoid changing jobs. When you change jobs, it can be difficult for lenders to predict future earnings. Any major career changes, such as corporate employee to self-employed, should also be delayed. Remember, the lender will look two years back and average your income. Anything that will make that process difficult is a bad idea.
For more tips on the home buying process, please contact me.

What to look for when hiring a conractor

Whether you are doing a total renovation or simple upgrades, choosing the right contractor is an important decision. See our five tips below before you hire a contractor.

References – Consult the Better Business Bureau and your state’s consumer protection agency. Ideally, your contractor should have a solid reputation, is licensed and registered, has insurance (liability; worker’s comp) valid credentials and no disciplinary history.
Get bids – Once you’ve narrowed down the field of competent contractors, get bids from each candidate. Be wary of extremely low estimates.
Big picture – Remember you’re going to be spending a lot of time with the contractor you hire, so make sure you feel comfortable with their personality, background, methods, and communication skills.
Dotted line – Every project should have a detailed contract. Deadlines, project description, materials used, even the payment schedule should be listed.
Not so fast – Don’t pay a contractor more than 30% upfront. Make payments in increments that coincide with portion completion. Full payment should only be given when the project is complete.

Summer Landscaping Tips

Landscaping has the potential to drastically enhance the curb appeal of your home, whether the purpose is to attract potential buyers or simply for you to enjoy. When landscaping your property, strive for a balance of flowering trees and/or shrubs throughout spring and summer, fall foliage in autumn and good structure in winter. Summer is the ideal time to highlight your the outdoor space with color, so check out our tips to make the most of the season.
1. Consult your local nursery to select plants that your yard can sustain. Conditions necessary for growth, such as shade or direct sun must be considered.
2. Remember to test your irrigation system; often maintenance is required after the winter season.
3. Select a variety of plants with seasons in mind. Evergreens will provide year-round foliage, structure in the winter and even frame your property for privacy. Deciduous and perennial plants add bits of color in the warmer seasons, but only bloom for so long. 4. Incorporate annuals into the landscape to supplement continuous color.
5. Remember to plant with maintenance in mind, some plants require consistent pruning or watering.

How to remodel with potential buyers in mind

When you are remodeling your home it is important to strike a balance between your needs, the needs of future potential buyers. According to Remodel Magazine’s Cost vs. Value Report, homeowners can typically expect to recoup over 70 percent of what they pay for a minor kitchen remodel. Focus on the basics, like cabinet resurfacing, counter tops, and flooring but stay away from pricey hand-painted tiles or built-in espresso machines. Remember, bold or unique product selections such as orange cabinets or red countertops will likely alienate future buyers, so stick to neutral themes.

Do your research to determine what remodels yield the highest return on your investment. When selecting an area to remodel be conscious of your neighborhood. Remember, your location is a large indicator of the price you can expect from future buyers, so if you do indulge in high-ticket items, enjoy them, but don’t expect a large return on your splurge. Currently, the remodels with the highest returns are: entryway doors, garage doors, finished basements or attics, and vinyl siding.

Past 3 months Santa Clara county Active, Pending and closed sales data

Below are the last three months data for Active, Pending and Sold listing.

Month Active/Pending, Number of Closed Sales,
Jun 4878 1713
Jul 5502 1477
Aug 6773 1858