Hidden Costs Homebuyers in California are Unaware Of
In a recent article by realtor.com, they reported that 44% of homeowners were not completely aware of the costs when buying a home. It’s a common misconception that home buying is just that, buying a home. But there are a lot of additional costs you have to be aware of when you are planning to buy your dream home in California. Some of the fees that are commonly known are home inspection costs, document fees, property taxes, home insurance, and title fees. The following are some of the lesser-known ones that you should take into consideration as you save for your dream home. CLOSING COSTS According to the real estate data and technology company ClosingCorp, the average closing cost for single-family homes is $6,087. That includes title policies, appraisals, settlement and recording fees, land surveys, and transfer taxes. That being said, in California, the closing cost is between 0.98% and 1.15% of the total purchase price. The price of an average home is $600,000 to $700,000. If the home you’ll be buying is within that range then prepare an amount between $5,880 and $8,050 — before taxes — in closing costs. POTENTIAL RENOVATIONS 53% of homeowners interviewed in the same study didn’t consider potential renovations as part of the budget when buying a home but not improving the build of the home could be more costly than renovating. HomeAdvisor.com gives a range of $18, 077-$76, 454 in renovating your home, depending on the size of the room, the materials that will be used, the extent of the renovation, and what the problems are. MELLO-ROOS TAXES Mello-Roos taxes are applicable to residents of the district who will benefit from them. Basically, Mello-Roos taxes fund improvements done to local services and infrastructure like building and repairing streets, sewers and sanitation systems, etc. If you want to read more about it, read this article by Investopedia. ARE THERE MORE HIDDEN COSTS? These are just some of the “hidden” costs when purchasing a home. Yes, there are more. But don't worry. With us, nothing is hidden from you. Every member of our team is very upfront and trustworthy, which are the exact values of the Rama Mehra team. But don’t take our word for it, read our more than 350 5-star reviews on Zillow. We’ll be glad to give you a wonderful home buying experience. Call us today at 925-415-0835! SOURCE
Do Your Renovations Wisely
Planning to sell your home but you're hesitant because it needs a bit of renovation here and there? While consulting a real estate expert is your best bet when doing this task, here are a few tips to get you started and to help you budget the changes that you will be making once you're ready to sell. 1. Buyers might be willing to do the renovations themselves. There is still high demand for inventory right now, that's why it's still the sellers market. Buyers are actively looking for their new home and even though your home might be needing some touches, there might be buyers who are willing to work on those themselves. Just make sure your potential buyers are aware of what they would be needing to change or fix once they have purchased your home. 2. Prioritize what you need to renovate FIRST. There are a LOT of renovation trends arising during the pandemic since everybody wants to have a home conducive for work, leisure, and recreation. You might be tempted to join the bandwagon and create the latest trend only to regret it later on. Usually, what's trendy is more pricey. Instead of joining the norm, go for classic renovations that will definitely increase the quality of your home, and the quality of your life. Make a list of the renovations you can do to your home and then arrange them by the importance that is aligned to your values and your allotted budget. 3. If you've made renovations previously, inform your real estate agent. According to HomeAdvisor's 2021 State of Home Spending Report, “35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.” You need to inform your agent so that it will be taken into consideration when you have finally decided to list your home. Ready to sell? Work with the team with a great track record. Call us today at 925-415-0835!
What Can You Expect in the Second Half of 2021?
If you've been keeping watch of our posts on the market update per area, you might be confused with the different paths each area is doing. In some places, more listings are sold over a shorter period of time, while in another less listings are sold with longer average days on the market. Even though no one can exactly know what can happen in the next half of 2021, we can look at the numbers. After all, numbers do not lie. Let's also look at what experts have to say regarding the housing economy. Mortgage will increase, but comparatively low One thing is sure, mortgage rates will not decrease. There's a steady rise of mortgage rates over the past months as the economy start to recover from the 2021 crisis. According to Freddie Mac in their latest quarterly forecast, an average of 3.4% mortgage rate will be expected by the end of 2021 and 3.8% by the end of 2022. Slow home price appreciation According to all industry leaders, home price will continue to appreciate towards the end of 2021. Senior Markets Economist at J.P. Morgan Joe Seydl said that the projected rise of the home prices should be taken as signal for buyers to grab the opportunity as soon as possible instead of waiting with the expectation that prices will decrease. Inventory will be a less challenging The good news is that more inventory is coming in the market, giving more choices for homebuyers and decrease the fast pace. Here are some statements from experts in the field: "We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.” (George Ratiu, Senior Economist at realtor.com) “As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.” (Robert Dietz, Chief Economist at the National Association of Home Builders) Summary With the expected rise of mortgage rates, price appreciation and the number of expected inventory in the next half of the year, your chances in the housing market look promising. The only thing left to do is work with the team that is after your own interests. The Rama Mehra Team is here to make great offers, negotiate for your cause and help you find the best deal for you and your loved ones. Contact us today at (925) 415-0835!
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