An Insider’s Guide On Navigating Adjustable Rate Mortgages.

If you know what a Adjustable Rate Mortgage is, you also may be wondering what the advantages and disadvantages are. So let’s explore that issue.

Offering adjustable rates allows lenders to transfer part of the interest rate risk from themselves to the borrower. If you get a fixed rate mortgage and the interest rate then goes up, it costs the lender money. However, if you have an adjustable rate mortgage, as the interest rate goes up, so does your payment, thus compensating the lender. Adjustable rate mortgages are particularly useful when unpredictable interest rates make fixed rate loans hard to get.

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One of the main advantages of an adjustable rate mortgage is that the initial interest rate is lower than that of a fixed rate mortgage. A lower rate means lower payments, which may help you qualify for a larger loan. This is an important detail if you expect your future earnings to rise. In this case, the ARM will allow you to qualify for a larger loan amount earlier rather than later.

However, this information should only be used with care. If you use an ARM to qualify for a larger loan amount than a fixed rate would allow you and the interest rate then rises drastically or your income doesn’t rise, you may not be able to afford the larger monthly payments, thus causing you to default on your loan.

A situation in which an adjustable rate mortgage makes sense would be if you are only going to keep the house for a short period of time. If you are only planning to own your house for only a few years, the risk of the interest rate rising goes down. This means that you will get a better rate with an ARM, making it a good choice. However, if you plan on staying in your home for a long period of time, a fixed rate may be a better option.

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The lesson here is to have a plan. Know what your goals are in purchasing a home and plan for all eventualities. Do your research when shopping for an ARM and consider the worst-case scenario.

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5 Home-Selling Tips Everyone Hears and May Want To Ignore

a15b18aec3b1e388baf2fe361bc9d778w-c0xd-w685_h860_q80.jpgOne of the hardest parts of selling your home is all the unknowns: Who will buy your place, and for how much? How long will it take? That uncertainty might make you particularly eager to soak up advice from just about anyone who’s willing to share. Problem is, just because your sister or co-worker swear by certain rules that worked for them, it doesn’t mean they’ll be a magic solution for you, too.

Fact is, a lot of the real estate advice circulating out there is outdated, region-specific, or just plain wrong. As proof, check out this list of tips that many home sellers hear … then learn how these words of wisdom don’t always hold water. Let this serve as a reminder that when selling a home, you should take everything you hear with a huge grain of salt.

‘You should always list your home in the spring’

Common knowledge says home-buying season starts in the spring and goes through the fall. Not true, says Melisa Aponte, a real estate agent with the Keyes Group in Miami, FL.

“January is a great listing month,” she points out. “People are back from the holidays and ready to start looking.”

Well, at least in places that don’t have a nasty winter, like Miami. Which makes a larger point about real estate advice in general, Aponte says: Every market is different, and what’s great advice in one area can be terrible advice in another.

Besides, when it comes to deciding when to list a home, there are two sides to the coin. Busier times mean more buyers, but also more sellers and more competition. Listing your home when inventory is low could snag the right buyer quickly. Life is unpredictable, and there will always be buyers looking in the “off season,” too.

‘You’ll find your buyer at an open house’

Open houses are exciting, akin to a debutante ball where your home makes its fresh-faced appearance to scads of suitors all at once. And that’s fine, but don’t expect this to be the venue where you find “the one” who makes an offer. While that can occur, open houses are more like parties, filled with swains who aren’t ready to settle down, says Anita Clark, a real estate agent in Warner Robins, GA. Serious home buyers will more often request a private one-on-one showing instead.

Of course, you don’t want to skip the open house entirely. It’s a great way for people to browse, and hey, you never know. Maybe your looky-loo neighbor has a family member who would love to buy your place after all. But it’s time to let go of the idea that an open house is a key step on the road to your ultimate buyer.

‘You can save money by paying less in commission’

Reluctant to fork over the 6% commission that real estate agents typically request to sell your home? Sure, that may seem like a lot of money, but what you might not realize is just how much work an agent does behind the scenes.

“A lot of people don’t understand that an agent’s job is more than just listing the home on the MLS,” says Aponte. Agents’ commissions pay for their time and for marketing materials. Posters, flyers, broker open houses, and yard signs all come from the money you pay your agent.

But beyond that, “it gives your agent the power to offer money to other agents who have qualified buyers,” she explains. That’s because the buyer’s agent and the seller’s agent split the commission.

Though in an ideal world, buyers’ agents would show them every property in their price range, regardless of commission, unfortunately it doesn’t always work that way, says Aponte.

“So if there are a lot of properties on the market and you’re only offering 2% commission, there are agents who won’t show that property,” she says.

Ultimately, you get what you pay for, and a higher commission can often justify itself in the sense that you can reel in tons of buyers, and (hopefully) spark a bidding war that’ll fetch top dollar.

‘Price your home high—and hold out for a buyer who’ll pay it’

Of course you want to get the most you can for your property. Still, pricing it sky-high and hoping a gullible buyer will fall for this aspirational sum? Not a great plan.

“I want to sell your property for a million dollars too, but I would be doing you a disservice to price it that way if the comps are saying $500,000,” says Aponte. Home buyers are highly sensitive to overpaying, and will quickly steer clear. And the longer your house sits on the market, the more buyers will begin to think something’s wrong with it … and lob you a lowball offer.

The best way to avoid this debacle is to price a house right from the start—not too high, not too low—and then seriously consider any offers that roll in, even if they aren’t as great as you’d hoped. To start things off, you can enter your address in a home value estimator to get a ballpark figure of how much your home is worth, then fine-tune that number with an agent’s help.

‘Here’s what the market is going to look like next year…’

Sure, it makes sense that real estate professionals will make educated guesses to help guide buyers’ and sellers’ decision-making. The operative word here is “educated.” Fact is, nobody really knows what the market is going to do; if they did, the housing crash of 2008 would have looked a lot different!

“Beware of ‘future’ predictions that don’t come from a reputable source,” says Dillar Schwartz, a real estate agent in Austin, TX. Sure, your brother-in-law or best friend might be trying to help, but keep in mind that their armchair philosophizing about the future of real estate is just an opinion—nothing more.

6 Must-Haves For Entertaining at Home, Picked by Realtors

When most buyers search for a new house, one of the things they take into consideration is if they could imagine entertaining their friends and family in the home. Whether it’s a formal dinner party in the dining room, a casual get together in the kitchen, or party on the patio, your home is an important part of your social life. With New Years Eve around the corner, we asked our agents for their must-haves for entertaining at home!

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Cheese:

Cheese is a classic appetizer at any party. Simply pair it with crackers, bread, or figs and let the cheese do the rest. Venissimo Cheese is one of our favorite local spots to score gourmet cheese from around the world!

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Chips & Guacamole:

Get any party started with chips and guacamole. If you aren’t in the mood to make it yourself, head to El Napolito or El Indio to pick some up. You won’t be disappointed!

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Wine:

No better way to stimulate conversation than with wine. Pick up a bottle locally at  Hacienda de las Rosas or Caruth Cellars!

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Champagne:

A New Years Eve essential! South Coast Winery in Temecula makes their own champagne!

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Dessert:

Whether it’s chocolates to nibble on, a celebratory cake, or a variety of sweets, no dessert is ever unwelcome at a party! Some of our local favorites include Extraordinary Desserts, The Cravory, The Village Mill Bread Co, and Dallmann Fine Chocolates.

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Music:

Music sets the mood at any party! Browse Pandora‘s top stations to get your guests in the party mood!

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Good Company:

People truly do make the party! You can’t go wrong when you surround yourself with friends and family that you love.

We hope you have a wonderful New Years Eve celebration! We are looking forward to a fabulous 2017!

 

 

 

7 Best Kitchen Gadgets, Picked by Realtors

Realtors know a lot about homes, from the doors and windows down to the kitchen and all of its contents. We polled our Realtors to discover their favorite kitchen gadgets!

Vitamix

The Vitamix machine is a quality investment because it is made with you in mind! It’s easy-to-use functionality, durability, and power have made it a well-known name, even with its hefty price tag. Although the Vitamix is commonly used for it’s shake and smoothie capabilities, the machines also have the ability to create food such as soups, purees, nut butters, flours, marinades, and so much more just with the touch of a button.

“I love our Vitamix for shakes and smoothies, but also great for making hummus and salsa too.” -Ryan Main, Realtor

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Buy your Vitamix here! 

Crock Pot

The crock pot has been around since our grandmother’s time, and is the reason for some of the best home-cooked meals. As well as it’s ability to produce gourmet meals, the slow cooker also saves time, reduces energy use, and is easy to clean up.

“I like the crock pot because it tricks people into thinking I know how to cook.” -Jason Meyers, Realtor

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Purchase your Crock Pot here! 

Nespresso Machine 

If you want to wake up and make an espresso in a matter of minutes with no fuss or clean up, the Nespresso machine is for you! Although pricey ($199-$599), the espresso machine provides quality coffee with little to no effort.

“I love my Nespresso machine, it gets me going in the morning!” -Jeanne Kayne, Realtor

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Purchase your Nespresso here! 

Spiralizer

This inexpensive tool has the ability to spiralize fresh veggies into healthy noodles! A common product of a spiralizer is zucchini noodles, known as “zoodles,” which provides a nourishing base to any meal.

“I love my spiralizer! It’s great for making zucchini noodles, spiralizing potatoes, and anything else I want! It also grates and juliennes.” -Shannon Fox, Realtor

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Purchase your spiralizer here!

Cutco Knives

Cutco knives have continued to impress people for 65+ years with their quality products, amazing customer service, and lifetime guarantee. One of our favorite knives to use is the traditional cheese knife, which has perforations in the blade to prevent soft cheeses from sticking together.

“My favorite kitchen gadget will always be my cutco knives!” -Amy Green, Realtor and Co-Owner of Coastal Premier Properties

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Purchase your cheese knife here!

Electric Wine Bottle Opener 

This wine opener is perfect for any wine-o! It effortlessly opens up a bottle of wine in 3 seconds, and never gives you the risk of breaking the cork.

“My favorite kitchen gadget is an electric wine opener!” -Amy Ryan, Realtor

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Purchase your wine opener here!

Zeroll Ice Cream Scoop

Scoop ice cream with ease while using the Zeroll ice cream scoop! The heat conductive fluid inside the handle uses the warmth of your hand to plump out perfect ice cream scoops with little to no effort.

“I love using my fancy ice cream scoop, the ice cream never freezes!” -Beth Van Boxtel, Realtor

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Purchase your Zeroll here!

 

What are some of your favorite kitchen gadgets? Leave us a comment below!

 

17 Awesome Colors for Your Home, Picked by Realtors

No home is complete until your walls are painted with the color that you love. Colors posses an important role in setting the atmosphere and nature of a room and each unique color setting can greatly affect an individual’s mood. Whether it is the calming appearance of white, or the serene hues of grey, it must perfectly fit your visual taste. Here are some of our fellow agent’s favorite colors.

Dunn Edwards: Foggy Day

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Dunn Edwards: Crisp Muslin

Crisp Muslin

Dunn Edwards: Stucco Tan

Stuco Tan

Dunn Edwards: Desert Suede

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Dunn Edwards: Looking Glass

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Dunn Edwards: Lace Veil

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Sherwin Williams: Pale Oak

Pale Oak

Sherwin Williams: Trusty Tan

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Sherwin Williams: Realist Beige

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Sherwin Williams: Iron Ore

Iron Ore

Sherwin Williams: Accessible Beige

Accessible Beige

Sherwin Williams: March Wind

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Sherwin Williams: Edgecomb Grey

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Frazee Paint: Silver Lining

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Frazee Paint: Excalibur

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Frazee Paint: White Shadow

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Benjamin Moore: Collingwood

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Tips and Tools for Selling A Luxury Home!

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There is a science to properly selling a luxury home, but fear not, it isn’t rocket science! It is true that lot of real estate agents are clueless when it comes to selling luxury homes, but the same can be said for the owners of a luxury homes. An importance must be placed that the proper steps are taken to ensure the home is sold at a fair market price yet also in a timely fashion. Selling a luxury home is quite different than your standard, boiler plate home sales because luxury homes are a different breed of home.  Tactical shifts in marketing, pricing and timing are essential to the successful close of the sale while procuring the best possible buyer.

Understandably, the housing market shrinks a little when it comes to the amount of luxury homes for sale and possible buyers, so it is crucial to use the right mixture of savvy marketing skills and getting creative when connecting qualified and interested buyers with a luxury listing.

Keep in mind, selling a luxury home presents a heightened level of difficulty and expertise than the non-luxury home market.  It doesn’t have to be impossible however, and by considering the above 8 tips to consider when selling a luxury home, the process can be smooth and less stressful! Using this blog, we will explore performance and trends of the luxury housing market, and offer you tips and useful techniques to find success!

Facts About Affluent Homebuyers

  • Percent of first-time and repeat buyers with household incomes of $200,000 or more: 8%
  • Percent of first-time and repeat buyers who bought homes priced $500,000 and more: 9%
  • Percent of first-time and repeat buyers who bought homes 3,501 sq ft or more: 10%

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  1. Is The Price Right?
    Pricing a home correctly, from the beginning, is extremely important whether selling a $100,000 home or a 1.5 million dollar luxury home!  A common real estate pricing mistake that is made is hiring the real estate agent who suggests the highest price and in the luxury home market, this can be a huge mistake.  It’s extremely important that a luxury home is priced competitively or aggressively from the beginning to attract buyers from the beginning.  It is more common for a luxury home to sit on the market for longer than a lower priced home, however, a luxury home does not have to sit on the market if priced properly from the beginning!To ensure the price is right, an in-depth comparative market analysis, must be completed on a luxury home in order to determine a competitive or aggressive price.  A real estate agent should spend several hours massaging the data, touring other comparable luxury homes currently for sale, and calling other real estate brokers who have recently sold comparable properties to the subject home.  Often times there are homes that are extremely similar to others in certain neighborhoods.  It is rare to find a luxury home that is identical to another, so knowing every amenity a luxury home has is crucial when determining the price. KNOW YOUR PRODUCT!
  2. How Will The Luxury Home Be Marketed?
    The price at which a luxury home enters the market does a fair amount of the required marketing, however, there are other marketing tools that should be used when selling a luxury home.Print advertising and direct mailing should still be apart of any real estate agents marketing arsenal.  The internet, however, has significantly changed how homes are bought and sold. It is extremely important that a real estate agent utilizes the internet when is selling a luxury home.  As a real estate agent, one of the most useful tools can be having your own website and/or blog and that it is mobile responsive as well.  Many home buyers are shopping on their tablets and mobile devices.  Staying up to date with technological trends is key in being able to successfully sell any type of home in this day and age.When selling a luxury home, it’s important that a real estate agent uses social media.  Social media is an essential marketing tool for real estate agents because they can help give their clients wider reaching exposure!  Unfortunately, this is a marketing tool that is drastically under-utilized.  Ask yourself, what percentage of people in the market to buy or sell a home have a Facebook Page, a Twitter handle, or Pinterest Account?  95%+?  By not marketing a luxury home for sale on social media, a real estate agent is doing their client a huge disservice! Think of how many potential buyers out there wouldn’t be able to discover this listing because a real estate agent is not using social media platforms to promote it.

    In choosing a real estate agent to sell a luxury home, it’s critical to know where it will be marketed, how, and how frequently.  For example, if the listed home is of an equestrian style, it is a good idea to conduct promotion in areas where that is popular. A real estate agent must have a comprehensive marketing plan/system and cannot list a luxury home, wait and hope it sells.  These type of real estate agents are also known as a “post and pray Realtor.” lazanja6

  3. Will There Be Any Open Houses?
    A very popular question many home owners have for real estate agents is, are you going to have an open house?  There is much debate whether public open houses help sell homes or not.  When it comes to luxury homes, public open houses do not help sell homes.  When it comes to selling a luxury home, public open houses often bring in people just interested in seeing how the “rich and famous” live.  There is absolutely no way to determine whether the people coming through the open house are qualified to purchase the luxury home or not!  I should mention however, that for both luxury and non-luxury homes, it is completely up to the seller’s decision to have a public open house or not.While public open houses do not help sell luxury homes, broker open houses can be helpful.  A broker open, which is an open house for local real estate professionals. This allows real estate agents who have buyer prospects looking for luxury homes to view possible matches.  A broker open is much more successful if the real estate agents who sell luxury homes locally are able to attend, as they have the greatest probability of having a client for the home! This is a much more direct way of reaching potential buyers and will save the seller time and energy in the long run.
  4. Are The Location & Lifestyle Being Portrayed Correctly?
    Luxury homes are often luxurious because of their location and lifestyle.  If a luxury home is part of a development which includes a clubhouse or yacht club privileges, it is important they are being showcased in the listing information.  This is another reason why utilizing video or virtual tour when selling a luxury home is a great marketing tool as it is a very good way to present a homes location as well as the lifestyle. lazanja5
  5. Will Any Staging Be Done?
    Many factors must be used together to effectively close a sale on a luxury home, and one of them is allowing the prospective buyer to imagine themselves in the home doing something they might do while living there. Staging does not sell homes but it certainly can help!  There are many sellers who believe that by hiring a real estate agent who has a staging designation, their home will sell because their home has been staged.  This is a very common misconception.  Although staging is a key element in the process, it is but a single ingredient in the recipe of closing a sale on a luxury home.  Many times, staging is done to elicit an emotional response from a prospective buyer.  An effort to make them think, “I must have this home!”When selling a luxury home, staging will help maximize the price offered while minimizing the time spent on the market. It is important that the appealing amenities which make the home luxurious are being showcased.  Consider, for example, if there is an outdoor BBQ, is it staged so that potential buyers can envision their summertime gatherings?  If a luxury home has an over-sized formal dining room, does it have elegant place settings with fine china at each place setting to help a buyer envision what their fine dining parties may look like.  These, among other ideas, are something to ponder when getting ready to show a listing to prospective buyers during an open house or a private showing.  lazanja2
  6. Can You Be Patient?
    Patience is a virtue for a reason. One of the biggest things that a seller needs to consider when selling a luxury home is that having level headed patience can mean the difference between eventually finding an interested buyer and the listing lingering on the market for months on end.  Selling a luxury home will normally take longer than a non-luxury home. Sometimes much longer if the process is not approached properly, so I will repeat myself…BE PATIENT!One major reason that luxury homes take longer to sell than non-luxury homes is the number of possible buyers available to purchase the home.  Face it, there are many buyers who can afford a $150,000 home entering the market on a daily basis. but there are far fewer buyers entering the market who can afford a 1.5 million dollar home.  For this reason alone, it’s important to be patient and understand that if the above tips are being practiced, a buyer will surface!Thought it may seem that finding a buyer is taking forever, keeping a cool head is key.  You don’t want to change your marketing strategy or drop the price on a lark just to see if any prospective buyers are out there waiting for the right conditions.  lazanja7

I hope these tips and tools have been useful.  Through utilizing these trends and techniques, I am quite sure it will ease the stress of selling a luxury home and make the process much smoother.  For more information on any of the above tips, or home buying/sales advice in the San Diego area, please don’t hesitate to contact us at Coastal Premier Properties | 12625 High Bluff Dr #102 San Diego, CA 92130 | 858.755.4663