Buyer’s Resources:
- Overview of the Buying & Selling Process...More
- Benefits of Home Ownership...More
- Finding the Right Home...More
- Home Shopping Tips...More
- Home Inspections...More
- Evaluating Property...More
- Answers to Frequently Asked Questions...More
- 7 Signs That It Is Time to Dump Your Agent...More
Seller’s Resources:
- Overview of the Buying & Selling Process...More
- Preparing Your Home Through The Eyes Of A Buyer...More
- Repair & Cleaning Checklist...More
- Possible Work Orders...More
- What To Do While Your House Is Being Shown..More
- Answers to Frequently Asked Questions...More
- 10 Home Renovations that Don't Add Value..More
Market Analysis:
- It is definitely a buyers market now. Interest rates are at an all-time-low, and the market is flooded is with homes. Now is the perfect time to find your dream home at a price worth smiling at. But be prepared, you will not be the only buyer, and in some markets, the sellers may be making a lot less or doing a 'Short Sale', but potential buyers are flooding the market. Be prepared!
School Report:
- Academy Elementary: Recently remodeled, has a 12:1 student to teacher ratio, and is a recognized blue ribbon school of excellence.
- Midtown Middle School: New desks, science lab, gym, and computers 20:1 student to teach ratio. Over-all a good environment.
Moving Tips:
- Decide whether you want to use a professional mover or go with a rental service and move yourself.
- Make sure all your furniture will fit in your new home.
- You may want to rent a disposal unit to discard clutter and make the move easier.
- Develop a list of all those who need to know your new address and phone number:
- DMV- Bank- Credit Cards- Friends- Family
My clients get to take the advantage of my decades of working full time in real estate. I'll help you find the professionals you need to get your project finish. Weather you need plumbers or electricians, or simply a handyman to put up that ceiling fan. I have a little black book worth millions
Important Phone Numbers City of Long Beach
- Fire/Police/Medical Emergency 911
- Non-Emergency Police 562-435-6711
- Non-Emergency Fire 562-570-2500
- Gas Emergency 562-570-2140
- Long Beach Water 562-570-2390
- Sewer/Storm Drains 562-570-2390
- Graffiti Hotline 562-570-2773
- Shopping Carts 800-252-4613
- Code Enforcement 562-570-6421
- Trash Collection & Recycling 562-570-2876
- Traffic Signals 562-570-2768
- Parking Meters 562-570-2741
- Street Lights 888-983-2000
- First Council District 562-570-6919
- Second Council District 562-570-6684
- Neighborhood Services 562-570-6866
- Neighborhood Watch 562-570-7229
- Apartment Watch 562-570-7160
- Business Watch 562-570-7274
- Noise Abatement 562-570-4126
- Urban Forestry Program 562-570-5221
- Neighborhood Clean-Up 562-570-5221
- City Light & Power (for burned out street lights) 562-983-2000
- Neighborhood Leadership Program 562-570-1010
- Community Development 562-570-6841
DRE #01221986
Benefits of Home Ownership
Credit:
Owning a home helps you establish financial credibility.
Independence:
Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.
Investment:
As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value.
Pride:
A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction.
Security:
A home can provide security against inflation because the value of your home increases as prices go up.
Stability:
Being established in a community provides a sense of belonging, stability and security.
Tax Advantages:
Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes.
Finding the Right Home
Real Estate Agents
You can sit down with a real estate agent and discuss your needs, type of area, style of home, amenities and everything you really want in your next home. Real estate agents can help you by accessing a Listing Service which covers all properties listed for sale within a specific area. Together, you can select the homes you would like to see, set appointments and preview homes in a short period of time. An agent can guide you through the entire process.
Newspaper Ads/Internet
Many people go through the real estate classified section or browse the Internet to find a home that appeals to them. However, your real estate agent will have many listings available that may not appear in the newspaper or Internet on a continuous basis. New listings come on the market daily.
Multiple Listing Service
Your real estate agent should have access to the multiple listing service if it is available in your area. It usually includes the following details about homes and properties for sale:
Location
Price
Photograph
Utilities
Amenities
Annual property tax
Current financing (when assumable)
Listing company
When Previewing A Home
Write notes when previewing a home so you will be able to discuss the details later with your real estate agent.
Ask questions about the home and discuss any objections or concerns you may have.
Ask about the community - schools, shopping and transportation.
Ask specific questions about the construction of the home; electrical, plumbing, heating, cooling systems, etc.
Have Fun
Relax. Finding your new home can be a rewarding experience. Have a good time and enjoy the process.
Home Shopping Tips
Check For Properly Working Appliances/Fixtures:
Bathroom
- Sinks
- Showers/tubs
- Toilets
- Vent fan
- Heating fan
- Appliances
- Dishwasher
- Stove
- Oven
- Ice maker
- Garbage disposal
- Range hood
- Refrigerator
- Freezer
- Microwave
- Trash compactor
Ensure House Is Well-Built & Systems Are In Working Condition:
Exterior
- Brick bulging or cracking
- Shingles missing or broken
- Siding rotted or missing
- Gutters damaged or need to be cleaned
- Concrete cracked in sidewalks/driveway
- Basement
- Water seepage in basement
- Cracks in foundation
- Poor ventilation
Kitchen
- Kitchen cabinet doors
- Drawers
- Sinks
General
- Lights (interior & exterior)
- Windows
- Heating system
- Ceiling fans
- Hot water system
- Air conditioning system
- Electrical outlets
- Door bells
- Doors
- Water purifier
- Fireplace damper
- Garage door
Interior
- Sub-flooring damaged or loose
- Cracked walls or ceiling
- Cracked tiles
- Loose plaster
- Flooring damaged
- Soft, springy floors
- Water stains near windows
- Water stains on ceiling below bathroom
- Water stains in attic
- Pipe insulation missing
Home Inspections
What is an inspection?
There are numerous types of inspections. An inspection is meant to evaluate, at minimum, the structural and mechanical condition of a property. It is not the same as an appraisal which evaluates the market value of a property. Persons involved in real estate transactions need unbiased information about the physical condition of property they plan to buy or sell and your contract should include a contingency that you obtain a satisfactory inspection report. Talk with your agent about the types of inspections available.
Home Inspectors vs. Engineers
Home Inspector: A person who examines any component of a building, through visual means and through normal user controls, without the use of mathematical sciences.
Engineering: Analysis or design work requiring extensive preparation and experience in the use of mathematics, physics, chemistry and the engineering sciences.
Finding a qualified Inspector
Referrals from satisfied customers
Referral from a local real estate agent or mortgage company
Local consumer affairs office
Yellow Pages under "Building Inspection Services"
Ask if she/he is a member of the American Society of Home Inspectors (ASHI). The ASHI has established standards of practice which include the specific services, limitations and exclusions that can be expected from private home inspectors.
What the inspection, at minimum, includes
Every inspection should include, but not be limited to, an evaluation of at least the following:
Foundations
Plumbing and electrical systems
Doors
Ceiling, walls and floors
Roof
Hazardous materials concerns
Heating and air conditioning systems
Common areas (in condominiums)
Insulation
Ventilation
Viewing and Evaluating Your Personal Properties
I help make viewing and evaluating properties easy. It's important to learn as much as possible about each property as you search for the right home, and I'll give you the data that you need.
For any place you're considering, you can see detailed information, as well as valuable insight into the neighborhood around it. You can view comparables, estimates and facts about each property. See basic information such as the number of bedrooms and square footage in addition to historical data about the property's previous sales and assessments. And you don't just see raw numbers. You see analysis, trends, photos, maps and more.
Each property will have an "Estimate" (based on the available data), and if it's for sale it may display a "List Price" (the price the listing company provides). Listings of properties that are for sale may provide you the information you need to follow up with me as your buyers agent. If you have modified the property facts with your own enhancements, you will also see the updated value reflected as "Your Changes" (the estimate you create when updating the information about properties).
Evaluating Investments Property: Cap Rates, Cash Flow And Appreceiation
Many clients ask me to assist them in evaluating potential investment properties. One question that comes up repeatedly is “What is the correlation between the Cap Rate and Cash Flow”. My response is that, generally, they are not correlated; rather they measure different aspects of a property, each of which is useful to investors. And other factors, such as appreciation, should be taken into account before an investment decision is made.
First, the Capitalization Rate (CAP Rate) represents the percentage annual rate of return before mortgage payments and income taxes on the total investment. Cap Rates are primarily used to compare a property to similar ones in the market (both recently sold and for sale). The Cap Rate (CR) is a ratio calculated by dividing the annual Net Operating Income (NOI) before debt service by the market value (MV). The formula is CR = NOI ÷ MV.
For example, a duplex listed at $300K (the MV), with a NOI of $28K, based on gross operating income of $40K minus property taxes ($4K), insurance ($2K), owner-paid utilities ($2K), vacancy allowance ($2K) and anticipated maintenance ($2K), yields a Cap Rate of $28,000 ÷ $300,000 or 9.3%. Note that the NOI is determined, in part, by information provided by the seller.
The Cap Rate formula is a powerful tool. As we all learned in algebra class, if you know two of three values, the third can be calculated. For example, if you know the CR that you want to obtain and the NOI of a property you can determine the MV a specific Cap Rate and NOI support using this formula: MV = NOI ÷ CR. Similarly, you can determine the NOI required to for a property given a target Cap Rate and the listing price using this formula: NOI = CR x MV.
As the above examples illustrate, Cap Rates are very effective in evaluating one property against others in the market, but Cap Rates don’t tell us anything about what a property will earn on a month to month basis as NOI does not include the cost of capital, i.e., the debt service for principal and interest.. Additionally, depreciation and other tax benefits are ignored, as are capital improvements.
This is where a second tool, Cash Flow Analysis, helps investors: To determine estimated cash flow simply deduct from the NOI the debt service (principal and interest), add back in any tax benefits (such as depreciation), and factor in any special circumstances: Further consideration should be given to the tax advantages of real estate ownership, which are substantial (please consult your tax advisor), and to annual property appreciation rates.
Finally, both Cap Rates and Cash Flow Analysis are “snapshots” in time. Appreciation rates however are forward looking and should be part of your evaluation. Appreciation rates in the Olympia area real estate market are driving investors to accept lower Cap Rates (and lower monthly returns) in return for higher future property valuations. As an investor I must factor in appreciation to realistically evaluate Cap Rates and annual cash flow in order to see if the overall financial picture they reveal fit my investment goals. Fortunately, our market has experienced appreciation rates of 6-12% a year for several years and I see no reason to expect a slowdown. We are located directly in the growth path for western Washington, and recent market appreciation rates reflect that fact. So I recommend that you add an appreciation rate (both for future rents and market value) that you are comfortable with into your calculations and see what that does for the bottom line. I personally feel comfortable with 6% a year for the foreseeable future.
