The Worst Mistakes You Can Make As a Homebuyer

Buying a home is typically the largest financial transaction most people make in their lifetime. The last thing you want to do is make a mistake, one which could cost you time and money – often a lot of money.

These are some of the most common, and worst, mistakes you can make when buying a home.

• Not doing your homework in advance – Before you do anything else, do some preliminary research and get a pre-qualification letter before you start shopping for your new home.

• Changing Jobs or Buying Big Items – Once you’ve decided to buy a home, it’s critical not to change your circumstances, such as a new job or large credit card purchase.

• Calling the Listing Agent Directly – It might be tempting to try and get a “better deal” by working with the listing agent rather than using your own agent. This is not true; the listing agent works for the seller and does not represent your interests.

• Accepting Everything at Face Value – Always ask questions and investigate everything, including getting a thorough home inspection.

Buying a home is exciting, but the most important thing is to consider the details and think everything through before jumping. By understanding some of the mistakes buyers make, you can avoid them.

5 Things Millennial Home Buyers Look For

Millennials have entered the housing market and have ideas about what they want in their new home. Home design trends are becoming more innovative and reflective of the way we live today. These young home buyers want bright homes which are informal and inviting; places where friends and families can gather and relax together. Who Are These Millennial Home Buyers? Millennials are also the first generation that grew up on technology. Most never knew a home without a computer, video game console, or cell phone. They want their spaces to be intuitive and innovative. They buy “smart” products! Self-adjusting blinds, lights, appliances, and other home features appeal to their sense of a technologically advanced home. Homes are being built with these buyers in mind.

Top 5 Home Design Features

1. Urban designs, such as a large loft-style home with great flow

2. DIY Fixer-uppers: Millennials enjoy getting dirty and redesigning their home to suit their tastes

3. Light and bright with tall ceilings and lots of natural light

4. Smart Home devices and features

5. Sustainable materials such as reclaimed wood and energy efficiency.

As they continue to make up a greater portion of first-time home buyers, builders will be creating more and more homes that reflect their unique perspectives. Watch for more innovation, sustainability, and functionality in new home designs over the next decade.

Age-Old Real Estate Selling Tips to Ignore

Homeowners planning to sell their home tend to get unsolicited advice from every direction. “Do this,” “don’t do that”; it can be difficult to decipher the good from the bad advice. As homebuyers become more informed and market-savvy, knowing which age-old advice to ignore can be important. Here are some adages which should be retired immediately.

• Spring is the best time to sell – While spring is traditionally when home sales tick upward, the real key to selling is inventory levels, which typically occur other times of the year.

• The first offer is always the best – While all offers should be considered, don’t feel pressured to take a sub-par offer just because it was the first.

• Open houses sell houses – Not anymore. Only 2% of homes sell as the direct result of an open house, according to the National Association of Realtors®. Virtual tours and online photos will attract more interest than foot traffic.

• Price high so there is room to negotiate – Homebuyers are more sophisticated about pricing and will not bother with overpriced homes.

• If you don’t want to make repairs then lower your price – Unless you market your home as a fixer-upper, buyers expect the home to be in reasonable condition and a low price might not be enough to encourage an offer.

• You must update your kitchen to sell – Buyers do love renovated kitchens, but keep in mind that you typically recover only 81% of the cost of a remodel when selling.

Selling a home is a major life decision. Before you begin the process of listing your home, do your research and make sure the advice you rely on is valid in today’s changing environment.

Investment Rent or Flip

There are a wide variety of ways to invest in real estate; one can make money in any of these options, one can also lose their money. To be successful in real estate investing, it’s critical that you identify what skills you have and your tolerance for risk. Then choose a type of investment that works for you and repeat that model.

Investors can make great profits by both flipping properties as well as holding them as rentals. The difference really boils down to a few considerations. First, what kind of income are you seeking? Active or Passive? Actively buying, fixing and flipping properties is quick cash that requires careful timing and effort. Rental properties on the other hand offer passive long-term income which accumulates over time. Additionally the property value increases during this time. The downside is that one must invest time in property maintenance and tenant management.

The second concern is risk. Flipping a property is not traditional investing where one buys and holds an investment. Flipping is really speculation. When buying a flipper, one must carefully gauge the cost of refurbishment, remodeling and the cost of the holding time into the price valuation, then carefully market the home and realize the profit. Any number of variances can go wrong which could cause the value to drop and profits to reduce or even disappear, such as a delay in remodeling or a slow real estate market.

Both types of investments can bring nice profits. Determining what’s best for you and your talents is important in choosing the best option for your financial goals.

Getting Outbid? Strategies to Make Your Offer Stand Out and Get Accepted

Summer is traditionally a busy time for buyers and sellers. This year has been no exception—and with lower interest rates, many homebuyers are finding the competitive environment challenging. With multiple buyers competing for properties, even terrific offers are often being outbid. Fortunately, there are some things you can do to make your offer more attractive to the sellers and increase the chances of getting the property.

• Have Full Pre-Approval – A step beyond pre-qualification, a pre-approval involves submitting your full application to underwriting. Your lender will collect all your financial data and submit for review. This is stronger than a pre-qualification; a pre-approval requires the buyer to provide the proof of their ability to qualify for the loan.

• Increase the Earnest Money – Earnest money is the deposit held in escrow. While the contract will dictate how monies are disbursed in the event of a cancellation, increasing the amount offered can show the seller you’re serious.

• Add an Escalation Clause – In a bidding war, it can be difficult to know what to offer because you want to outbid the competition without going too high. An escalation clause is one way to automatically outbid the others. The clause typically offers an amount—$1,000 for example—higher than any verifiable offer up to a specific amount. This can ensure yours is the highest offer.

• Pay any Appraisal Shortage – When offering more than asking price, sellers become concerned about the appraisal coming in too low. If you are willing to pay over market value, include the amount of shortage you are willing to pay.

• Remove Inspection Contingency – This option can be tricky, but if you are planning a large remodel or are willing to tackle any defects found, then you can make your offer stronger by accepting the home as-is.

In this fast-moving, competitive real estate market, it’s important to make your offer stand out from the crowd. These strategies are great ways to demonstrate to the sellers that you’re serious about buying their home, increasing the chance of having your offer accepted.

Excellence in Entrepreneurship Nominee for the Orange County Business Journal 2021

The OC Nest is honored to have been nominated and asked to take part in the Orange County Business Journal celebration of the 20th annual Excellence in Entrepreneurship Awards! The OC Nest is honored to be a nominee and grateful to be part of such an excellent group of entrepreneurs.

Selling and Buying during a global pandemic...No Problem!

The OC Nest worked with this family to sell their Irvine home during COVID for $20,000 over list price in just 3 days! In addition, we helped them to purchase a new home for $74,000 under list price! This is a perfect example of great teamwork! Through clear communication and trust, we were able to accomplish their goals. We are so happy they found their perfect "nest "!!

Pavilion Park January Housing Stats are here...

Motivated Seller - Make Me an Offer!

Even in a strong seller’s market, a homebuyer might hear the words, “Make me an offer.” For a nicely appointed home that is well priced, this can be a surprise. Being invited to write an offer can often give the buyer pause. Most buyers will immediately wonder if something is wrong with the home. Did they miss something that is causing the home to take longer to sell? While it could be that something is wrong with the home, it most likely just demonstrates the seller’s readiness to move. It could be that they have found another home or are motivated by a relocation, but it might also be that they are tired of keeping the home show-ready and are just anxious to be done with it. In this situation, it’s important for the homebuyer to listen to their agent. A buyer who hears, “Make me an offer,” often assumes this is an invitation to write a lowball offer. The assumption is that the seller will take any offer just to get the home sold. The buyer thinks they’ve probably got this one in the bag! The buyer’s agent will be able to add context to the situation and provide reasonable suggestions for price and terms. Even when invited to write an offer, home sellers will not discount their home if there is no need to do so, and sending an offer below market value might insult the seller and prevent a counter-offer or acceptance—causing the buyer to miss out on a desirable home. Buying and selling real estate is emotional on both sides. Serious buyers and sellers are both eager to find the right deal, but foolish bargains are rare. When hearing, “Make me an offer,” the best move is to consider the home and then rely on the advice of the buyer’s agent about the next steps.

Tips for the First-time Home Seller

Tips for the First-Time Home Seller There is a lot of attention paid to first-time homebuyers. Most real estate agents and lenders have some kind of guide to help first-time homebuyers navigate their first home purchase, but what about the first-time seller? Selling your home for the first time can be just as confusing as a home purchase, so here are a few things to remember as you navigate your home sale. Before that first showing, it’s important to prepare. This involves not only cleaning, decluttering, and staging the home, but also learning about your local real estate market and finding the best agent for your needs. Interview more than one agent and ask lots of questions. Learn about the services they offer: do they include professional photography, video, or virtual tours? Ask for a comprehensive market analysis (CMA) and ask each agent their suggestion for the listing price and their method for arriving at that number. Use this information to determine the best agent to assist you. Once you have an agent, stay involved. Discuss the plan for showings and open houses. Try and be flexible to allow for as many potential buyers as possible viewing your property. Review the listing online for accuracy and stay in touch with your agent for feedback from showings. Once you start getting offers, respond as quickly as possible. It’s not just about the price; watch for terms, such as length of escrow and contingencies, when evaluating these offers. Be prepared to move so that you can take advantage of a good offer, such as all-cash. The most important aspect of a successful home sale is the relationship you have with your agent. Be transparent about your needs, concerns, and goals; insist that your agent do the same, and working together you will navigate through your first home sale successfully.

Pavilion Park December 2020 Housing Stats are here...

Based upon information provided by CRMLS with an average of 3 month period ended December 2020.

Most commonly asked question lately...

“How is buying or selling real estate during COVID?” is a pretty regular question we get asked. And quite honestly, no one anticipated it to be going so well. We have had a nice spike in Orange County real estate. Buyers having a bit more purchasing power while taking advantage of the extremely low-interest rates means more opportunity. And Sellers acknowledging that inventory is still relatively low makes for a good time to list and make the move. If you or someone you know has been flirting with the idea of moving but has been a bit apprehensive about it during COVID, contact us so we can strategize how we can help you achieve your goals safely.

Welcome Home!

This sweet family moved here from Canada, so the home buying process was a bit different for them. Luckily they came to me from a referral so they felt comfortable and put their trust in me to help walk them through our process of home buying here in Southern California. I feel honored that I was able to be apart of this journey with them. They were so smart and thoughtful in every decision, they knew what they wanted and were patient in finding their perfect “nest”. I wish them many years of happiness!

"Land of the flee"

Have you heard grumblings from friends or family considering moving out of California lately? With the Governors COVID orders, more and more Californians’ are considering relocating for more space and more commonly to avoid another state income tax increase. According to FORBES California legislators are proposing a 0.4% wealth tax, plus a 16.8% Income Tax Rate.

Last month, we heard comments from Elon Musk, of Tesla moving the Tesla headquarters to Austin, TX. Meanwhile, the Palo Alto headquarters remains opens, we will see if the move actually takes place now that the authorities have given Tesla authorization to resume business in California.

MIT “developed a living wage calculator to estimate the cost of living in your community or region based on typical expenses. The tool helps individuals, communities, and employers determine a local wage rate that allows residents to meet minimum standards of living.” Reflecting that the Golden State remains to be one of the highest cost of living states in the United States.

If the proposed income tax rate does increase, we can expect a surge of Californians to move. If you or someone you know is considering relocating, please refer them to The OC Nest for guidance through this timely process.

Welcome to 210 Tuberose!

Have you been waiting to time the market? WAIT NO MORE! This gorgeous 4 BD 3BA DETACHED home is nestled in the serene, tree-lined community of QUAIL HILL boasting sweeping views of mountains, trails & sunsets. This RARE OPPORTUNITY offers a comfortable living space for everyone. A formal living room featuring a fireplace, high ceilings, plenty of natural light & across is a formal dining room perfect for ENTERTAINING. The kitchen is appointed w/ granite countertops, double ovens, kitchen island and french doors that lead to a courtyard ideal for RELAXING or dining al fresco. Separate living areas provide a layout for EASY FAMILY LIVING and plenty of space. CONVENIENT full bath downstairs & direct 2 car garage access makes this floorplan highly desirable. Upstairs master bedroom boasts a Juliette balcony, huge walk-in closest w/ custom built-ins, dual sinks, and secondary balcony to take in fresh air. In addition to four bedrooms, a full laundry room & sink all conveniently located upstairs. The Solstice neighborhood w/in the prestigious hillside Quail Hill community is HIGHLY DESIRABLE & rarely on the market. RESORT-LIKE amenities walking distance w/ pools, gyms, parks, hiking trails, baseball fields, soccer fields & Quail Hill shopping center & only minutes from Irvine Spectrum, Oak Creek Golf Club, UCI & tons of dining & shopping. Irvine is known as one of the SAFEST cities and is also recognized as an AWARD-WINNING school district. OPPORTUNITY is knocking, don't miss out!

Thankful Thursday

When I first started my business, I thought the best part would be setting my own hours. But today, it goes much deeper. My favorite thing about being a Real Estate Broker is that I get to help my friends achieve their personal homeownership goals. However, this time was even more special for me because my client is one of my dearest friends and also happens to be my accountability partner. I have so much gratitude for this amazing family, and it brings me so much joy to be apart of their journey. I wish them many years of love & laughter in their beautiful new home! THIS is why I love what I do.

RESOURCES: (Irvine) Lists of Curbside Pick up/To-Go Delivery Orders

Irvine Residents Click on the Link Below to see a list of Curbside Pick up & Delivery Orders available.

CLICK HERE!!

Residential Real Estate Now Listed as an Essential Service

As of Saturday, March 28, 2020, Real Estate has been added to the list of ESSENTIAL Service.

Click Here for the Full Memorandum from US Department of Homeland Security identifying the list of Essential Infrastructure Worker’s during COVID-19

Share the LOVE!

Calling all HUSTLERS!!

Did you know that you can make passive income just by sharing the LOVE about The OC Nest?

Yep, if you have a friend who might be looking to buy or sell real estate and you refer them to The OC Nest, you will receive a finders fee upon close of escrow just for sharing the LOVE!

The OC Nest gives Buyers & Sellers the comfort of working with an experienced Broker, but the personal touch of a friend whose goal is to help you find your perfect “nest”.

PLUS…The OC Nest donates a portion of their commissions towards your referrals closing costs too.

DM The OC Nest TODAY if you want to Share the LOVE and start earning $ while helping your friends save $

Should buyers wait for another 2008 recession to buy?

The Orange County Real Estate market has softened and sales volumes are stagnant.  According to the OC Register, CoreLogic homebuying stats show 2019’s first six months were Orange County’s slowest-selling first half in over 8 years, since just after the Great Recession ended.  Quarter 2 reflects a 13% drop in home sales from 2018.  Many expect that Quarter 3 will show an even larger drop.   This indicates that home prices are high and due for a correction, which means opportunity is on the horizon.

A component of this slowdown is the trade war between the United States and China as new tariffs lead businesses to scale back on investing and hiring. See Trump’s China tariffs are already hitting the housing industry. Furthermore, Chinese cash that previously flowed into Southern California’s economy, driving up real estate, could dry up.   

Although the nature of real estate is cyclical and we may incur a standard recession, there is good news for buyers.   Economists have stated that even if there is another recession, the housing marketing will not bring about housing bargains like in 2008.  Specifically, “The 2008 recession didn’t cause the housing market to go into freefall. The housing market going into freefall caused the recession.” 

It would be a fairly standard recession that has nothing to do with mortgages or the housing market, and its severity is not expected to rival the one in 2008. An upcoming recession would also, encounter a housing market that’s almost the inverse of what it was in 2008: tight mortgage credit instead of loose mortgage credit, housing supply shortage instead of a housing surplus.

Also, keep in mind historic precedent: As far as home prices dropping in the wake of a recession, 2008 is the exception to the rule. During two mild recessions in the early 1980s, for example, home prices actually increased, just as they did in the early 2000s after the dot-com bust. Home prices are less responsive to recessions because housing is an absolute need, and because buyers tend to come from better financial situations that aren’t as damaged by a recession.

The 2008 Great Recession hit the housing market due to mortgage lenders issuing bad loans that were projected to fail and did.  Since then, lending guidelines have tightened up, consumers' best interest is standard practice and integrity is the name of the game. Therefore, waiting for prices to drop to 2008 prices is highly unlikely. 

It has been a buyer’s market in 2019, and we will continue to see a buyer’s market moving forward in 2019 through 2020