Straight Talk About Real Estate

There are many loan options when you finance your house purchase.

If you think you will most likely move and sell the house within 3 years, you can take a chance with an adjustable rate program.

If you think you will likely own the house for most than 3 years, it is probably best to get a fixed rate since the rates are still considered low. It is likely that interest rate will go up, though probably not that quickly.

Adjustable rate program are popular because it is easier to qualify and initial payments are more manageable. But make sure you can handle the worst case scenerio when the rate and payment adjusts. Adjustable programs always start off at a below market rate, so you can count on the rate and payment going up. Read the fine print and understand how often and how much your payment will increase.

“I want to get a good deal on a house.”

What is your definition of a good deal?

“You know, below market value.”

The current real estate market is a Seller’s Market. That means there are more Buyers than Sellers. In economic terms, there is not enough supply for the demand.

If you need to sell your house, even if you are in a desperate situation for the money, all you have to do is put the house on the market at market value, and you will have buyers lining up the next day to pay you. Would you sell it to anyone at below market value?

“What about foreclosures?”

If you are a homeowner threatened with foreclosure, you would put your house on the market at the market value, have buyers lining up the next day, and within 30 days, you will pay off the bank. Foreclosures are rare in this real estate climate.

So are there any good deals out there?

Yes, but in this market of continuing rise in value, by the time you find that rare one, all the houses have gone up in value. If you had just bought any house, you would’ve done just as well.

That’s what we’ve been seeing for the last two years. It hasn’t cooled off yet.

My husband, Mike and I began our real estate career as investors. In the early 1980’s, Mike bought his first piece of property, a 4-unit apartment building in Huntington Beach, California. With interest rates over 15%, he was able to purchase the property with no money down, and arranged creative financing with the owner.

Since then, Mike and I have continued to invest in real estate. We chose real estate management and sales as a career because we want to help others, both in acquiring their dream home and to build wealth by investimg.

We are the owners of Century 21 West Coast Brokers real estate office, Alpha Escrow Company, and Nationwide Bankers Mortgage. This provides a one-stop shopping convenience for our clients.

With over 20 years of experience active in the marketplace, we have seen the ups and downs of the real estate cycle. We are here to offer you professional advice and hints, whether you want to buy a home to enjoy or acquire an investment for income.