The "818" on Real Estate

“Survey SAYS” XXX There are always fluctuations in all markets. Two basic indicators for price changes are SUPPLY & DEMAND. In October 2018 there were 1,628 (SUPPLY) “existing” homes for sale in the San Fernando Valley and 1,068 (DEMAND) sold. 1,628/1068 = 1.52 month’s supply. That USUALLY would mean that we are in a seller’s market and prices would continue to rise until the market balances out ….BUT since the “average home sales price” has increased over 35% since 2013, and the median household income has only increased about 20% since 2013 the affordability has lessened. Not to mention mortgage interest rates increasing. (Los Angeles County Median Household Income for 2013 $54,432. 2017 was $64,300) – U.S. Census Bureau Granted, it is the holiday season but I am personally having to adjust prices downward for the first time in years. STAY TUNED!   SEHOLD IN

What is equity in terms real estate?  The Investopedia definition is:  The difference between the current  fair market value  of the property and the amount the owner still owes on the  mortgage . It is the amount that the owner would receive after selling a property and paying off the mortgage. Also referred to as “ real property  value.” Equity can either increase or decrease in any given year.  Can you access this money before you sell? YES - You simply complete a "cash-out refinance". This means that you'll reset the clock on your mortgage (sometimes lowering the payment) loan and increase the balance. Some people like to pay down their mortgage as fast as possible and others like to put their EQUITY to work. Putting your equity to WORK simply means that you'd reinvest this money into another property. You might want a bigger or smaller home or you might want to purchase an investment property to rent out.   An example: Purchase price: $55

#TuesdayTip In a Los Angeles County real estate transaction (sale) there are two very important things that will occur toward the end of the escrow period. 1) Funding - When money is wired into escrow/title company who will then dispurse funds appropriately. 2) Recording - When ownership is officially transferred from the seller to buyer at the Los Angeles County Registrar-Recorders/County Clerks Office. Once this is completed you'll get your keys by the day's end!! Funding will happen 1 day prior to Recording BUT if the seller or buyer is willing to physically be present at the Registrar-Recorders/County Clerks Office, then it can happen in 1 day. #tricksofthetrade #escrow #homebuyer #losangeles #knowyourstuff #YourbestshotinRealEstate

#TuesdayTip On facebook this morning reading all the memories from years back during this time of year, ..and my posts are pretty much the same. Homes are selling in days whether it's an "up" market or "down" market. What you can do as a home buyer: 1) Get 100% pre-qualified for a loan (unless your cash of course). 2) Have your home in escrow prior to searching for your new home so that you appear much more prepared and competitive. 3) Align yourself with an agent who knows exactly what you're looking for, and available to run out in a moments notice to show you homes. #YourbestshotinRealEstate #jessejamesLA #lifeisbetterwhenyoumove

The FICO score labyrinth can be confusing and is VERY important when it comes to purchasing a home with a mortgage. - Paying off revolving debt (auto loan) can actually drop your FICO score. It might allow for a higher purchase price but without the appropriate FICO, a higher price becomes irrelevant. - Paying off collections, repo's and charge off's can actually drop your FICO score by 60 points. - When rebuilding credit do NOT open a secured or unsecured credit card. Please call me and I can direct you to a true professional for all things pertaining to the credit bureaus. 818-326-0945 #ficoscores #mortgage #YourbestshotinRealEstate #jessejamesLA

The FICO score labyrinth can be confusing and is VERY important when it comes to purchasing a home with a mortgage. - Paying off revolving debt (auto loan) can actually drop your FICO score. It might allow for a higher purchase price but without the appropriate FICO, a higher price becomes irrelevant. - Paying off collections, repo's and charge off's can actually drop your FICO score by 60 points. - When rebuilding credit do NOT open a secured or unsecured credit card. Please call me and I can direct you to a true professional for all things pertaining to the credit bureaus. 818-326-0945 #ficoscores #mortgage #YourbestshotinRealEstate #jessejamesLA