The Power Is Now Magazine | November 2022

ROGER BEANE

Founder, Owner & Chief Executive of LRES Corporation

The Power Is Now Media Inc. 3739 6th Street Riverside, CA 92501 Ph: (800) 401-8994 | Fax: (800) 401-8994 info@thepowerisnow.com www.thepowerisnow.com

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CONTENTS NOVEMBER 2022

REAL ESTATE NEWS

Pg. 12. Why many people are demanding for riskier home loans even as interest rates soar.

MORTGAGE NEWS

Pg. 14. Freddie Mac to begin using personal bank account data as part of the underwriting process to increase homeownership opportunities.

TECHNOLOGY NEWS

Pg. 18. Opinion: It’s 2022, can technology replace the human touch?

HEALTH NEWS

Pg. 22. California to end the COVID state of emergency.

LEGAL NEWS

Pg. 24. Revamping of the 203k plan

GREEN NEWS

Pg. 8. Renewables on the Rise 2022: California leads in solar power, electric vehicle adoption, and more.

ECONOMIC NEWS

Pg. 10. Nearly a Million Americans Fear Losing Their Home to Foreclosure.

FROM OUR VIP AGENTS:

Pg. 27. Texas Housing Market: Prices, Trends & Forecast 2022-2023, by Sharon Bartlett.

Pg. 31. Maryland Housing Market Forecast 2022 & 2023, by Emerick Peace.

Pg. 37. Looking to Start your Life in Florida? Florida Dreams Realty is here to help you make the transition!, by Adriana Montes.

Pg. 41. Remodelling: Pros and Cons. How it will affect your insurance, by Yvonne McFadden.

Pg. 45. What Are Mortgage Points? by Tamra Lee.

Pg. 51. Looking to sell your home this quarter? 5 tips to increase the value of the home on a budget, by Walter Huff.

Pg. 55. Do you know what a Quitclaim deed is? Here’s everything you need to know, Ohio, by Heith Mohler.

Pg. 59. Do you really know what a condo is? What you need to know before buying one, by Ruby Frazier.

Pg. 62. Roger Beane, The story of perseverance, hard work, and believing in oneself to founding one of the most sought-after corporations in California!

Pg. 67. Want a smooth Buying transition? Then you need to be aware of these common roadblocks to closing! by Jenny Gonzalez.

Pg. 71. The battle between move-in ready homes and fixer upper homes, by Ian Batra.

Pg. 75. What is a listing agreement and how will it affect your selling process, by Briana Frazier.

Pg. 79. Minnesota Housing Market:Prices, Trends & Forecast 2022-2023, by Francine Marsolek.

Pg. 83. Have you been skipping sewer scope inspection? Here’s why its extremely important, by Janet Petrozelle.

Pg. 87. Are VA loans good for veterans?, by John Costigan.

Pg. 91. San Francisco & The Bay Area Housing Market: A look at prices, current and future trends and forecast for 2023, by Norman Green.

Pg. 95. Connecticut Housing Quarter: A deep dive into New Haven real estate market-stats & predictions, by Steven Rivkin.

Pg. 99. Costa Mesa Housing Market: A look into the areas real estate market performance through the year, by Decira Pimental.

Pg. 103. Getting Buyers Hooked! 3 strategies to initiate bidding wars and get multiple offers in a crazy market, by Monica Hill.

Pg. 107. Crypto real estate: How cryptocurrencies are changing real estate investments, by Jamar James.

Pg. 111. Los Angeles Housing Market Data:Outlook of the market, current trends and forecast, by Dolores Golden.

Welcome Power is Now readers and subscribers to another Power Is Now Magazine Fall edition issue. It is my pleasure to continually bring you great industry information to enrich your real estate knowledge and all the business and finance matters surrounding it. We’ve been doing this for over thirteen years- it’s not a job but a passion. As I write this, I can’t help but think of how far we’ve come, not just as The Power Is Now family, but the country and the world at large. We battled the pandemic and the disruptions it brought with it. We are in the thick of a soaring economic crisis, and we will overcome it.

I am very excited about the November issue, and I am sure you will share this excitement with others after reading this magazine. We bring you very educative and informative articles from our research team every month. Our goal is to provide you with timely real estate information that you can use in your investment strategy or simply share with other professionals for further development. Knowledge is Power because the information is changing so rapidly. Our slogan, “The Power Is Now,” underscores our goal to keep you informed as the information develops.

This year has been challenging for many people, and as you will find out, this issue reflects just that. Thanks to Putin and his barbaric gimmicks, life is getting pricier by the day. Inflation is over the roof; interest rates are untouchable, and living costs are getting out of control. Buyers aren’t buying even though the market has cooled off, and sellers don’t want to sell either. It is like we are all caught up in this bubble, and the sad part is that no one wants it to burst because we aren’t sure on which side it will favor. Speaking of bubbles, there are fears of an imminent recession. Winter season might be extremely difficult for many people and industries heavily reliant on natural gas from Russia, so we encourage you to use green energy. Every issue of our magazine has a section called green energy news, where we bring you environmental sustainability news, developments, tricks, and hacks to make fully renewable energy.

On our cover this month is Roger Beane, he is the founder, owner and the Chief Executive of LRES Corporation is one of the most accomplished real estate leaders with over twenty years of experience. He leads a dedicated team of professionals providing accurate solutions to customers and corporations. Cheers to Roger for his outstanding career and contribution to the industry. With such a strong and committed leader, I think the industry is poised to make significant changes in the coming years.

Other news making it into our fall issue includes the state’s plan to end the COVID-19

state of emergency. Is the state ready for this, or do we need to hold the plan a little longer? This is a very interesting topic that you cannot miss. Also, find out why many demand riskier loans even as rates continue to soar. You’d expect that people would keep off some of these loans, but it paints a picture of how desperate people are to buy homes, and since many banks won’t back them up, they prefer the riskier loans. It is an interesting story that might have negative outcomes, especially because nearly a million Americans might lose their homes to foreclosure.

Other than that, I just want to remind you that Thanksgiving is right around the corner and the festive season nipping at our heels. We are more excited here at The Power Is Now Media, Inc. Honestly, I love the holiday season, and so is everybody, and I look forward to having quality time with friends and family. Each year, around this time, I like to thank all the blessings that have come into my life and the people who have made this year great for us. The Power Is Now

Media, Inc. wouldn’t have made it this far without you, and for that, I say THANK YOU.

This issue of The Power Is Now also features various articles about planning for homeownership and how to get yourself there financially. Applying for a home loan can be frightening, but we will get you through this to purchase your dream home.

The Power Is Now would like to thank our readers, listeners, and contributors for the continued support. We invite you to join us online for invaluable blog posts, engaging radio shows, and the latest issues of our magazines to enhance your learning in real estate, finance, and success. You have the power to change your life because The Power Is Now.

ERIC L. FRAZIER MBA President and CEO

The Power Is Now Media, Inc.

Renewables on the Rise 2022: California leads in solar power, electric vehicle adoption, and more

Anew online dashboard by the Environment California Research & Policy Center show that the state of California leads the nation for the total solar energy generation, adoption of the electric vehicles and more. Dubbed Renewables on the Rise 2022, the dashboard documents state-by-state growth of key clean energy technologies all across the united states in the last ten years and this includes solar and wind, battery storage, energy efficiency, electric vehicles and electric vehicle charging stations.

“Across nearly all clean energy technologies, California has set the standard for clean energy growth this past decade.” said Steven King, Clean Energy Advocate with Environment California Research & Policy Center. “ Our state’s leadership in solar power, electric vehicles, and energy storage is building a cleaner, healthier future where we can better tap our renewable energy potential.”

Under Gov. Jerry Brown, California signed an ambitious goals and a bill mandating the state to transition to zero-emssion energy sources for its

electricity by year 2045. The then Governor also issued an executive order that called for Carbon Neutrality which meant that the state “removes as much carbon dioxide from the atmosphere as it emits” by year 2045. “This bill and the executive order put California on a path to meet the goals of Paris and beyond,” Brown said in a statement. “It will not be easy. It will not be immediate. But it must be done.”

Ever since, the state has been extremely proactive and has pursued a leading role in the international fight against global warming.

Cumulatively, the state has recorded a 13fold increase in the amount of electric power generated from the sun and also a 60 percent rise in wind power production- an analysis that comes after a ravaging and devastating summer where many californians experienced extreme heat waves, wildfires and draught which all point to out to the need of transitioning to a clean energy economy as fast as possible.

PHOTO FROM 123RF

POLICIES SUPPORTING

CLEAN ENERGY

Like previously mentioned, California is in 100 percent support of clean energy this is the biggest reason for the success of program. The bill signed by former Governor, Jerrry Brown specifically required the state to have at least 50 percent of its energy coming from renewable sources by 2025 and 60 percent by 2030 which will ultimately pave a ‘bold path’ towards 100 percent zerocarbon by 2045. This combined with improving technologies have played a key role in the adoption of the ambitious goal by the state.

One of the programs resonating with many californians is the state’s metering program

which has provided compelling incentives for the consumers to install solar panels on their homes and businesses. More recent was the state’s commitment to phase-out gas-powered cars and its plans to embrace offshore wind only re-emphasizes the perpetual growth of clean energy technologies.

“With our state’s bold energy and climate leadership over the past two decades, it’s no surprise that California is a national leader in the transition to renewable energy,” said Fran Pavley, former State Senator and Environmental Policy Director for the USC Schwarzenegger Institute.

“From setting the goal of achieving 100% clean energy by 2045 to implementing policies that are good for both our environment and the economy, we have come a long way as a state. With the accelerating pace of droughts, wildfires, and extreme heat events, we need to do even more to cut down on fossil fuel production. From investing in solar and storage, offshore wind, and requiring a just transition to cleaner cars and trucks, California is positioned to meet these challenges head on with continued state leadership.”

Its not to say that other states are far off, in fact, while California may be leading the nation in clean energy production, it is not the first state to develop an ambitious plan toward meeting zerocarbon emissions, Hawaii for instance back in 2015

established a goal of 100 percent renewaable electricity generation by 2045. More top that, according to the report, the nation is reported to produce more than three times as much renewable electricity from sun and wind in 2021 as in 2012.

The Inflation Reduction Act also offers consumers several tax credits and discounts on more than a dozen types of energy saving purchases including the new and used electric vehicles, rooftop solar, geothermal heating and cooling, upgrading the electric panels and heat pump HVAC systems. Many of the credits are in effect now while many more will take effect in 2023. That alone (the incentive from the Inflation Reduction Act) shows that many people are likely to adopt clean energy and reduce pollution from the fossil fuels.

“Millions of Americans and Californians are already reaping the benefits of the dramatic clean energy progress we’ve made so far,” King said. “With federal tax credits promising to turbocharge clean energy, now is the time for California to lean in and transform California’s 100% clean energy goal into reality, and the sooner the better. State regulators should implement strong consumer incentives for rooftop solar and storage systems to allow rooftop solar to thrive and the state should continue to set and strive to meet ambitious goals for technologies like offshore wind.”

Nearly a Million Americans Fear Losing Their Home to Foreclosure

The latest study from LendingTree show that many families across the country are struggling financially to afford the necessary expenses which has resulted in many of them falling behind on their mortgage payments and facing foreclosures.

The report shows that nearly a million people nationwide fear losing their homes to foreclosure in the coming two months. The company measured relevant data from the census Bureau how many AMerican Adults, 18 year plus risk losing their homes to foreclosure and here are the finding.

KEY FINDINGS:

Those living in owner-occupied homes: about 3.71 percent of American Adults in this types of housing are behind on their mortgage payments with a 60.43 percent in this category already caught upon their mortgage payments. An additional 35.47 percent do not ned to make the payments because they own their homes.

Of the 3.71 percent- the share that’s not caught up with their mortgage payments, about 19.62 percent all across the country report being very likely to leave their homes due to foreclosure in

the next two-to-one-and-a-half months.

However, a significant portion of the 3.71 percent not current with their mortgage payments expressed the fear of being foreclosed on in the near future.

The states leading in the number of American adults likely to be foreclosed include South Dakota, Oregon and New Mexico. Across these states, an average of of 55.45 percent of the people behind on their mortgage payments say that they are they are very likely to leave their homes in the next 2 months. However, it is important to reiterate that an average of only 3.42 percent report living in households behind on their mortgage payments.

While in states like Nevada, Idaho and Kentucky report an average of 2.81 percent of adults living in owner-occupied homes that are reported not be current with their mortgage payment, nobody in these states report being at risk of losing their homes to foreclosures in the next two months.

Here’s a breakdown of states with the largest adults behind on mortgage payments at risk of losing home to foreclosure.

PHOTO FROM 123RF

• Total adult population in owner-occupied households: 427,615

• Percentage of adult population in owner-occupied households caught up on mortgage payments: 54.66%

• Percentage of adult population in owner-occupied households not caught up on mortgage payments: 2.38%

• Percentage of adult population in owner-occupied households owned free and clear: 42.96%

• Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave home due to foreclosure in the next two months: 71.28%

• Percentage of adult population in owner-occupied households behind on mortgage payments and not very likely or not likely at all to leave home due to foreclosure in the next two months: 28.73%

OREGON

• Total adult population in owner-occupied households: 1,891,583

• Percentage of adult population in owneroccupied households caught up on mortgage payments: 65.90%

• Percentage of adult population in owneroccupied households not caught up on mortgage payments: 2.80%

• Percentage of adult population in owneroccupied households owned free and clear: 31.30%

• Percentage of adult population in owneroccupied households behind on mortgage payments and somewhat or very likely to leave home due to foreclosure in the next two months: 49.59%

• Percentage of adult population in owneroccupied households behind on mortgage payments and not very likely or not likely at all to leave home due to foreclosure in the next two months: 50.41%

NEW MEXICO

• Total adult population in owner-occupied households: 900,679

• Percentage of adult population in owneroccupied households caught up on mortgage payments: 50.24%

• Percentage of adult population in owneroccupied households not caught up on mortgage payments: 5.07%

• Percentage of adult population in owneroccupied households owned free and clear: 44.19%

• Percentage of adult population in owneroccupied households behind on mortgage payments and somewhat or very likely to leave home due to foreclosure in the next two months: 45.47%

• Percentage of adult population in owneroccupied households behind on mortgage payments and not very likely or not likely at all to leave home due to foreclosure in the next two months: 54.53%.

RISING COST OF LIVING AND HIGH HOME PRICES

Certainly, inflation, rising cost of homes and the pandemic play a huge role in in the situation we are in right now. But despite all of these facts, foreclosures are not a common thing in the country. Lately, many people have been speculating of an imminent recession threat which means that many homeowners face a bigger threat being foreclosed.

Foreclosure rates have increased since 2021 largely due to the pandemic-era foreclosure moratoriums but the number is still lower when compared to the 2019 rates. This, combined with fewer than 1 percent of all adults in the owner-occupied households across the U.S. reporting that they’re at a risk of losing their home to foreclosure in the next tow months, this shows that foreclosures arent a common thing in the United States.

Why many people are demanding for riskier home loans

evidence that suggest that many small mortgages, typically those falling below $150,000 are driving borrowers who actually have better credit scores and meet other qualifying criteria to this alternative borrowing arrangements. And the question I get bothered by is why?

There are certainly some factors which include but not limited to the home’s habitability and the ownership if the land beneath todays mobile homes, else known as ‘manufactured homes’ all of which are factors that make it impossible to qualify for the mortgages using the traditional route.

CASE SCENARIO ONE ALTERNATIVE SOURCING OPTIONS

Many people in the United States purchase their homes using mortgages , but in recent times, many more are running towards alternative financing arrangements for instance rent-to-own which obviously are much more riskier. But it makes sense why people are preferring the riskier options, after all, it better than none.

The problem that I seee with renting-to-own option for homeownership is that its a costly option and also, when compared to traditional methods of homeownership, it is subject to far weaker consumer protections and regulatory oversight.

There is insurmountable

Although the evidence against these financing arrangements is overwhelming, and has been proven to cause harm to the unwitting consumers, very little is known about the prevalence and or scope of these alternate financing options, largely because this is a field where data is not the primary concern meaning that insufficient data that would lead to conclusive results. For instance, the Census Bureau collected data on the number of Americans

even as interest rates soar

using alternate financing options until 2009 and in 2019, the Harvard Joint Center for Housing analysis of alternate financing option revealed that a ‘persistent lack of data has prevented regulators and policy makers from understanding the full scope and scale of the market.’ this study by Harvard center was only done for selected states that require financiers to keep public records.

PEW CHARITABLE TRUST RESEARCH INTO ALTERNATIVE FINANCING

Due to the overwhelming lack of data in this seemingly lucrative industry, Pew Charitable Trusts conducted a national survey of the U.S. adults that aimed to uncover the prevalence of alternative financing and borrower demographics.

The following are the results of the study;

• 1 in 5 home loan borrowers which translates to about 36 million americans have used Alternative Financing at least once in their adult lives.

• Of these 36 million people, about 22 percent have used more than one type of alternative financing options across multiple home purchases. This means that multiple borrowers over the course of their adult life face multiple barriers to homeownership when

it comes to mortgage financing.

• Also, this data shows that alternative financing varied by race and ethnicity and seemed to be a popular choice for the hispanics.

• About 1 in 15 current home borrowers -translating to 7 million U.S. adults have a current arrangement with these alternative financing optiopns.

• Among the homeowners currently in arrangement with alternative financing, the people with HOUSEHOLD incomes below $50,000 were more likely to use these options.

If anything, the data by Pew Researchers underscore the need for a better national data and state data collection that will enable regulators to fully understand the prevalence of alternative financing arrangement and to also ensure that millions of Americans , especially those from low-to-moderate income earners and the minorities are well protected and in policy decisions affecting home borrowers.

WHAT’S ALTERNATIVE FINANCING?

Alternative financing describes a set of financing arrangement that involves land contracts, seller-financed mortgages, lease-purchase agreements and personal property loans that differ significantly from the traditional financing options

through the bank.

To better understand what alternative financing is, consider the following;

Typically to buy a home, there is a purchase agreement which must involve a third party lender who has no ‘prior’ interest in the property separate from the loan. And the lender has to strictly follow a specified conde of conduct and comply with the federal and state regulations.

Additionally, mortgage transactions must involve a title that stipulates full legal ownership of the property as detailed in the deed.

In contrast, alterative financing at least in some arrangements for instance land contracts, there arent significant regulations to govern the transactions. In addition to that, purchasing a home using alternative financing, sellers arent required to hand over the deed to the property for the duration of the transaction. Since a buyer isnt fully recognized as an owner of the property until they are in fully custody of the property deed, this structure creates somewhat legal ambiguity making it extremely difficult for buyers to establish clear ownership and to fully establish the responsible party for the property taxes and maintenance.

CASE SCENARIO TWO THE RISE IN ARMS

A recent trend is the use of Adjustable-Rate Mortgages or ARMs which typically offers lower rates. Many people are using this type of rate to finance their purchase after seeing that it hasn’t really fluctuated as much as the others over the last decade.

In fact, the Mortgage Banker Association show that the total mortgage application volume for the first week of October, 2022 dropped 2% compared to the previous week.

LET’S GET TECHNICAL.

Ideally going by the current rates the average contract interest rate for the 30 year fixed mortgage rate with conforming loan balances increased to 6.81% from 6.75% and this percentage rise includes the origination fees for the homes with a 20 percent downpayment. This is the highest its ever been since 2006.

“The news that job growth and wage growth continued in September is positive for the housing market, as higher incomes support housing demand. However, it also pushed off the possibility of any near-term pivot from the Federal Reserve on its plans for additional rate hikes,” wrote Michael Fratantoni, MBA’s chief economist in a release.

a period of 10 years, once that period lapses, they adjust to the market rates. However, it makes total sense why people would prefer these loans. Remember, rates have been so low for so long that people never saw the need to take out riskier loans.

The average rate for the 5/1 ARMs which typically has a fixed rate for the first five years increased just slightly but somewhat considerably lower at only 5.56%. The share of people preferring this mortgage optionwas just a little under 12%. when rates were significantly lower at the start of the year the share of people preferring ARMs was just 3% as it has been for several years.

ARMs, no matter how rosy they are, arent a good financing option. And while they can be fixed for

Mortgage applications meant for home purchases fell 2 percent for the first week of october were actually 39 percent lower than a year ago. Many buyers feel the pinch of the rising rates which have made affordability worse. While home prices have started to cool down potential buyers are concerned that if they buy now, their new homes might drop in value in the coming years due to concerns of coming recession.

Freddie Mac to begin using personal bank account data as part of the underwriting process to increase homeownership opportunities

Starting November 6, borrowers will begin to experience new technologies in so far as their borrowing is concerned. These news comes after Freddie Mac announced to include cashflow data in the underwriting process which it claims is a step in the direction of identifying a historic of positive monthly cashflow activity as part of its technology’s loan purchase eligibility to further increase homeownership opportunities.

This is both a positive and negative thing. Positive in that it unlocks a world of opportunities for many people that were locked out of homeownership simply because of tainted reputation due to a few ‘gone wrong’ transactions, but also, what if the banks uncover a record of bad financial habits in the past that the borrower has worked on over the years to clean it up only to be flagged again?

The GSE in a statement claims that this innovation will be available to mortgage lenders nationwide through Freddie Mac automated underwriting system Loan Product AdvisorⓇ (LPASM).

“With the addition of positive monthly cash flow data, our underwriting system can help with more accurately predicting a borrower’s ability to pay their mortgage because it uses a comprehensive view of how personal finances are managed over time,” said Terri Merlino, Freddie Mac Single-Family senior vice president and chief credit officer. “Our latest innovation levels the

playing field and helps make homes more accessible to borrowers whose lenders might not have qualified them with traditional methods of underwriting. This should particularly help first-time homebuyers and underserved communities.”

monthly bill payments e.g rent, utilities and auto loans).

Although there are concerns about this new technology, the GSE has said that lenders are only supposed to send financial account data for LPA to identify 12 or more months of cash flow activity for inclusion in the risk assessment only with the borrowers consent.

Interestingly, according to Freddie Mac’s press release, “The account data submitted can only positively affect the borrower’s credit risk assessment. To help identify opportunities, LPA will notify lenders when submitting additional account data could benefit a borrower.”

This tool is interested in the following category of data; checking, savings and investment accounts (direct deposits of income and

In addition, it will be possible for lenders and brokers to obtain the bank account data from from third party providers using the same automated process they currently use to verify assets, income, employment and on time rent paymentthrough a single report via LPA’s asset and income modeler (AIM).

“Working alongside our industry partners, we have made significant progress toward modernizing the mortgage origination process,” said Kevin Kauffman, Freddie Mac Single-Family vice president of client engagement. “In the current market, our latest industry-leading innovation delivers lender efficiencies that can lead to cost savings and improvements to the borrower experience, while meeting Freddie Mac’s strong credit underwriting standards.”

The GSE first started integrating such technologies in June especially technologies that automate underwriting services stating that its assets and Income Modelers in LPA would allow lenders to verify assets, incomes and employment using borrowerapproved bank account data.

Opinion:

It’s 2022, can technology replace the human touch?

Everywhere you go these days, there’s the talk of automation and technology replacing the human touch and there is no doubt, technology is surely advancing at a very rapid rate. Focusing on the mortgage production, one thing is clearly evident, the process has become so centralized and very automated and even though the process is a little paper based. Major hallmarks that will soon be the face of this industry have come up changing the tone and shape of the industry.

Everything has become so easy, loan underwriting, using some electronic signatures as well as establishment of user-friendly “portal” which help the users to oversee their loan application and thus faster delivery and approval process which makes it become a mainstream in loan application and delivery. Loan approval has also become very easy and fast, thanks to the automated borrower-verification tools.

BUT HOW IS TECHNOLOGY COMPARED TO THE HUMAN TOUCH

We may argue on this issue

but logically, technology has done so much for the economy and has changed the way businesses are run and conducted. But here is what Kermit Randa, CEO of PeopleAdmin has to say about technology and human touch;

“Even as we celebrate the contribution technology makes to helping educators do their job most effectively,” Randa says, “it is important to recognize there is one thing technology

will never replace: the value of the human element in helpings schools, students, and communities succeed …”

However, even if there is so much evolution in mortgage lending and all what goes in and out of this world in so far as technology is concerned, the overall user experience has not gotten better yet. Basically, there are so many challenges that are yet to be overcome. Financing a home for example for many people is still very confusing since most of the consumer or the borrowers are unable to get what they are looking for in terms of help in solving the many puzzles in their head.

some new ways to give their borrower counterparts a combination of technology and human expertise. Therefore, replacing human touch with technology is something that will have to take time.

IMPROVING THE CONSUMERS EXPERIENCE

This should be the time where mortgage experience for the consumer should be improved and given that the country has a very strong job growth rate as well as a stable home-sales, the purchase-loans volume is expected to increase in the current year and the year to come.

Back then when the housing market was doing fairly well, a few consumers were able to get approved mortgage online. It was in this phase the mortgage lenders were in complete dominance of the whole process which was neither automated nor efficient.

But with the technology, the industry has seen enormous changes and a number of innovations and with this improved technology, verification of borrower’s income and the assets are instantaneous. When searching for loans and their pricing, the process has become so easy and very fast, thanks to the new and improved technology.

Everything has become electronic for the improvement of the consumer experience, and what’s even fun, people can now sign disclosures electronically and also, ordering tax transcript from the IRS has become an electronic process.

Technology has done so much for a change in the way things are in so many sectors today but the same old taste of mortgage cannot be replaced, not that easily, reversing this trends will require the lenders to find

But we have to face one fact, even though that all these huge steps have been made for the benefit of the consumer, many of them have been motivated by the needs of the lenders to cut the costs and manage them.

ACCESS TO INFORMATION SYSTEMS

Technology has also enabled the consumers to get access to greater and more informational systems about the mortgages than ever before. Most of the consumers have very little information about mortgages but with the access to the information, they become informed. In some ways, technology may have made the consumers not dependent on the human expertise which they largely depended on to make some of the crucial financial decisions of their lifetime.

Mckinsey proves that emails are more effective but as it is, more lenders cannot even respond to a single email within a day.

TARGETING AND REACHING MORE BORROWERS

We all would agree that making the mortgage process faster and much more efficient remains to be at the peak of every lenders but as it is, most of the professionals want to take advantage of the prevailing strong housing market to make a boom in their business.

These portals are very important and have seen the success of many mortgage seekers. One thing you will realize is that automation creates consistency and can be applied as an effective tool in helping the loan advancer in seeing the loan advancement to the borrower through.

FINAL VERDICT

With what technology have done and still continuous to do, many borrowers still fill out the forms manually meaning that incorporation of the technology to the process has not well been accepted or the coverage is still very low. Ironically, it turns out that most of the borrowers are interested in a good loan rather than technological touch in mortgage issuing process.

People are going for what not works, simply, their focus is on things that do not show results yet more and more mortgage lenders are putting more emphasis on social media and stuff, however, even though that is great, research from

Online portals, a tool that has been on the rise and many lenders are realizing just how important this tool has been in reaching so many consumers out there. With these portals, consumers can now apply for loans and get approved in a much faster way. Actually, no loan officer is required to oversee the process.

But this tech has a problem, a major drawback and perhaps that may be the number one reason pushing people away from these improvements. If you are a borrower, and say you get stuck on the process, there is no one to help you or if you have a question, there is no one to assist you.

Can technology replace the human touch? I will surely say that it will depend. Somehow, if you look at what technology has done in the industry in so far as mortgage lending is concerned, there are huge strides that it has enabled and still much credit has been given to the changing technology and its impact. However, none of that would ever be possible without human engagement. The whole process needs human touch since humans are the source of the ideas while tech is just a facilitator of the tech. Therefore, even though automation has well been encouraged, overly, it cannot replace the human touch but we can still push for more and more digital mortgages and responsive tools and in doing so most borrowers should understand that many people are looking for the right mortgage rather than a fast one.

California to end the COVID state of emergency

In a statement released by Gov. Gavin Newsom, California’s Covid-19 state of emergency will end Feb28, 2023. The move by the California executive comes amid new variants of the virus spur concerns of a high likelihood of there being another deadly winter surge all across the country. In addition to that, the positivity rate of the virus in California has plateaued following a newarly three month decline. State data confirms that the virus has killed more than 95,000 Californians.

The era of the pandemic was no joke. Many people lost their jobs, many more lost their loved one to the virus. Almost three years after, many peoople seem to have moved on and Californians are now ready to burry the old problems away.

According to the Governor’s office, the timeline to the termination date of the Covid-19 state of emergency gives the healthcare system the much needed flexibility to be able to handle any surge that might occur during the winter months plus will also provide the state and local partners the time needed to prepare for the phaseout and also set themselves up for success afterwords. It’s also important to mention that this move will have little practical impact on californians as most of the pandemic-related orders the governor has issued have mostly been lifted. At the same time, it will have little impact on public health orders including the pending nationwide vaccine mandate for schoolchildren that will take effect next summer.

The move does however signal an end for some of the most restrictive elements of the pandemic since it means dissolving newsom’s authority to alter or een in some cases change the laws to make it easier for the government to quickly respond to public health crisis.

“Throughout the pandemic, we’ve been guided by the science and data – moving quickly and strategically to save lives. The State of Emergency was an effective and necessary tool that we utilized to protect our state, and

we wouldn’t have gotten to this point without it,” said Governor Newsom. “With the operational preparedness that we’ve built up and the measures that we’ll continue to employ moving forward, California is ready to phase out this tool.”

The state of emergency was declared on March 4, 2020 at a time when the state had only 53 confirmed cases of virus. Ever since, the governor has used the authority vested on him undere the emergency declaration to issue almost 600 pandemic related orders. While some were relatively small, some had life changing like the stay-at-home order that caused millions of people to lose their jobs.

“It is past time to end the State of Emergency and focus on the enormous hardships Californians are facing in their daily lives: soaring gas and grocery prices, surging crime, and a homelessness problem that gets worse by the day,” said Republican Assemblymember Kevin Kiley, who was one of the two lawmakers to challenge Newsom in court.

Of all the 596 pandemic related orders Newsom gave, only 27 are in effect according to the Governor’s office and all of them will be gone once the emergency declaration has been lifted. However, the Governor has siad that he will ask the California Legislature to make two of them permanent. One of them allows nurses to order and dispense COVID-19 medication and another would let the lab workers solely process coronavirus tests.

“California’s response to the COVID-19 pandemic has prepared us for whatever comes next. As we move into this next phase, the infrastructure and processes we’ve invested in and built up will provide us the tools to manage any ups and downs in the future,” said Secretary of the California Health & Human Services Agency, Dr. Mark Ghaly. “While the threat of this virus is still real, our preparedness and collective work have helped turn this once crisis emergency into a manageable situation.”

Revamping of the 203k plan

Many people know what a 203k plan is and at one time perhaps even used it.some people say that a 203k plan is a direc ticket into home equity wealth. Ill assume you know nothing about the 203k plans, so one of the question you might be asking yourself is, what is this?

WHAT IS A 203K PLAN?

Essentially this a program or a home loan that allows you to finance your house and also lets you also repair and modernize the home if need be.

IT IS BACKED BY THE FEDERAL HOUSING ADMINISTRATION(FHA) AND TO BREAK IT FURTHER FOR YOU

When purchasing a home, ideally you get the loan to purchase the home and that’s it. With a 203k plan, you get the money to buy the home plus the estimated cost of renovating the property. In addition to that, homebuyers that wish to rehabilitate an older home might still get approved for a 230k plan but there are some conditions that they must meet to qualify.

The 203K plan comes in two variations; the standard and the limited plans. The standard plan/ loan basically covers extensive renovations for which the owner would not be able to occupy the property during the construction period. On the other hand the limited variation is basically applicable for properties that require just minor cosmetic repairs for for up to $35,000.

REVAMPING OF THE 203K PLAN

Recently, the Federal Housing Administration has come out to say that it will ask for a public opinions on updating the 203K plan in a step to address the housing affordability crisis in the country. The move and the the resulting effect by FHA will increase the affordability thus many people will be able to affordable homes that they could not previously afford.

“We’re looking at revamping the 203k program,” Julienne Joseph, deputy assistant secretary in the Office of Single-Family Housing for FHA at the U.S. Department of Housing and Urban Development (HUD) said Tuesday during the 2022 HousingWire Annual event held in Scottsdale, Arizona.

It makes total sense because many people are terrified of renovating homes, it is not to say that therent a good number of homes readily available for purchase, there are. The

major problem with most is that they need to be repaired which oftentimes is daunting for many buyers, especially the first time buyers. If the 203K plan can remedy this situation, it would help so may first time buyers who usually are looking for something’s that turn-key.

The revamping of the 203K plan would alsommean that borrowers would get enough cash to absorb the 35 or 40 year old homes that perhaps need just cosmetic repairs and touches as many people simply do not know where to get the money to fix these problems.

For years, we’ve all discussed how we make this program better. We’re in the process of developing a RFI (request for information) that we are going to put out to the industry because we want to be able to address it once and for all.”

The FHA hopes to revamp the loan to match Fannie Mae’s Homestyle Program for the conventional borrower.

Right now, the 203K plan only enables borrowers to make purchases or refinance the loan or do repairs. The financing limit of $35,000 in the FHA 203K plan does not really reflect the current rising prices of homes and also in some instances, it does not cover the costs of renovations. This makes sense why not so many people are using the program. Additionally, the 203K program requies from 10% to 20% of the total loan amount to be set out as a contingency and imposes a 1% origination fee on the borrower.

The revamping of the program has no deadline, FHA is waiting to issue in the next 90 days a request for information from the public to update the program and until that happens probably in 2023, we will have to wait.

“

Texas Housing Market: Prices, Trends & Forecast 2022-2023

By Sharon Bartlett

In 2022, it will be fascinating to investigate the Texas housing market. We explore the Texas real estate market in 2022 and its future using several statistics. For the time being, the inventory shortage keeps Texas house prices high, but many analysts believe that the rate of increase will decrease compared to the previous two years. In Texas, particularly in the affluent suburbs of major urban areas, some of the fastest-growing real estate markets will be in 2022.

These places frequently offer better value for the money and have excellent educational systems. Millennials looking for a place to raise a family are perfect. The most sought-after places to buy in Texas are the suburbs of Dallas and Austin. With populations ranging from 2.3 million to less

than 100, Texas is home to almost 1,700 cities. According to the Emerging Trends in Real Estate 2022 study by PwC and the Urban Land Institute, Texas is home to four of the top twelve markets for new home construction.

Over the past ten years, Texas has seen some of the nation’s highest rates of housing appreciation. Texas property prices have increased 99.56 percent in the last ten years, leading to an annual home appreciation rate of 7.15 percent. Texas has been one of the best long-term real estate investments in the United States during the past ten years if you’re a home buyer or investor.

In 2023, the housing market in Texas will expand. You cannot begin making plans to be

a better buyer in 2023 if you consider buying a home this year. Although there are some regional differences, the Texas housing market reflects excellent national trends. An imbalance between supply and demand has spurred rapid housing appreciation throughout the state.

Although Texas home sales have slowed, this is more often a sign of availability than demand. Many viewers perceive that if there was a massive house supply for sale, the number of homes sold in Texas in 2021 might have been higher. It could boost overall sales as more recently built homes are on the market.

You are in a good position if you want to sell your house in 2022. Although unexpectedly, Texas home prices will rise as quickly or drastically as they did in 2021, buyer demand is still strong and is unpredicted to decline. As bidding battles are frequent, many bidders will likely show interest in your home.

TEXAS HOUSING MARKET TRENDS TODAY

Aggressive monetary policy slows sales by dragging down the Texas housing market. The housing market continues to weaken as house inventories rise and prices decline. The high demand for buildings indicates that many purchasers are delaying big purchases despite a national fall in construction permits. Homes with lower prices, popular with young families and first-time purchasers, sold for less money. Record prices and skyrocketing mortgage rates, according to the most recent research from Texas A&M University’s Texas Real Estate Research Center, discouraged buyers

DEMAND FOR HOUSES IN TEXAS.

Demand for Texas While DFW and San Antonio saw a decline of 8%, closed sales in Austin and Houston plummeted by nearly 16% MOM. Every prospective homeowner must overcome financial obstacles, but first-time buyers were severely

hurt by affordability, which decreased the number of homes sold for under $300,000. Texas’ average days on the market (DOM) stayed low at 34 days, showing a persistent imbalance in negotiating power.

Homes in Austin and Dallas sold in 22 days, compared to 30 days in Houston and San Antonio. The DOM of an existing home is substantially lower than that of a new one. There are still not many existing homes. Properties costing $300,000 and $400,000 typically sold in 28 days. Listing times were shorter for more expensive homes than for less expensive ones.

PRICES OF HOMES IN TEXAS

Texas’s median home price dropped by $5,000 to $344,000 in July. Prices decreased everywhere. Austin ($510,000) and DFW ($406,000) both suffered losses of $7,000 and $8,000 in a single month. San Antonio ($328,000) and Houston ($338,000) both experienced losses of $3,000 and $4,000 in the meantime. Austin prices dropped $33,000 in three months, which was the most during the state-wide decline. Although housing prices are declining, they are still 13.2 percent higher than they were a year ago (YOY).

The Texas Repeat Sales Home Price Index, which considers compositional price impacts, supported the idea of sluggish price growth by declining from a January increase of 20.4 percent YOY to a rise of 14.9 percent YOY.

HOUSING AVAILABILITY IN TEXAS

Although it is anticipated that homebuilding will continue to slow down, the state’s present supply is beginning to build up. Since May, active listings have increased by over 17,000 units. After the unusually low inventories of the previous two years, this easing of home availability signals a breakthrough. Texas’ housing supply, which had fallen below two months’ worth of inventory (MOI), increased to 2.2 MOI as a result.

Maryland Housing Market Forecast 2022 & 2023

By Emerick Peace

The maryland housing market has been strong throughout the year and certainly, the past two years have been extremely tough for many people as houses havent been this costly since the bubble of 2006.

According to the national Association of Realtors, the Maryland Single family Housing Affordability Index fell to 95.9 in June this year from 142.2 a year ago. The single family housing affordability index measures the financial ability of a typical family in Maryland to qualify for a mortgage loan on the average home based on the months mortgage rates and median price of the home and the median household income. Additionally, when you look at the First time homebuyers affordability index, that too has dropped to 61.8 from 90.8 a year ago. What this data shows is that maryland is getting pricier as we progress into the future.

The demand and supply imbalance, coupled with rising inflation and interest rates has made the housing market untouchable. But a positive sign that we are seeing throughout the country is the cost of homes is slowing coming down and who knows, may be next year will be different, with prices all down.

In September 2022, the home prices in Maryland had appreciated 4.3% compared to the same period last year, going for a median price of $388,900. On average however, Redfin reports that the homes sold in Maryland were 26.7% down year over year and there were 6,735 homes sold in September, down from 9,183 home sold in the same month last year. According to Zillow predictions, home prices will continue to rise over the next 12 months and it is highly likely that the summer of 2023 will see higher home prices than this year.

PHOTOS FROM 123RF

MARKET COOLING DOWN

This is a trend happenning all over the country where home prices are cooling down steadily mostly because of higher mortgage rates. 2021 and 2022 saw higher demand and higher prices because the mortgage rates were down and therefore, the fear of missing out made buyers all over the country run to buy homes to lock in the low rates.

This year however, things are different, inflation is at its highest and mortagge rates have risen quite significantly. No buyer would want to commit their hard earned money in such conditions. Although there are rumors of an imminent market crash, Maryland ocal data doesnt corroborate this at this time. And while true that the prices have started going down, the market rose 5.4% annually in July, but the number of homes sold declined 27%

The market might be cooling down, it is possible, but this isn’t the normal recovery road as the cooling down has been induced by the FED raising the interest rates. Bottomline is, major home price decline or crash might not be happening any time soon, as the supply of homes in Maryland by far favors the sellers. July 2022

saw the number of active units for sale decline year-over-year deom 13,307 units to 10,331 units but, looking at the supply of homes in the state, we are deep in the seller’s market as Maryland has 1.3 months of supply.

A STRONGER ECONOMY

The Maryland economy is relatively strong. The Gross Domestic Product of Maryland in 2021 was $443,929 up from $410,931 in 2020. Some of the largest sectors contributing to this growth in GDP was the governemnt, closely followed by finance, insurance, real estate and professional and business services.

Additionally, looking at the population change, Maryland is ranked as 22nd fastest growing state in the nation in terms of population and according to the 2020 census, the atate had a populaition of 6,177,224 ranked 18th in the nation. Annually the population in Maryland grows by at least 7%.

Looking at the job market, there was a 3.0% increase in jobs in the state bringing the number up by 78,600 year over year. The professional and business services sector experienced the most growth recording

an increase of 4,700 jobs all within the administrative and support services professional, scientific and technical services subsectors.

The rising interest rates all over the country will continue to be a huge challenge for the housing sector. The overall indicators point to the market finally giving up and cooling down as sales drop 23% over a year ago.

Interestingly, escalations and multiple offers are starting to easen and the seller’s expectations haven’t really caught up. Usually, if a seller listed the home on a friday, there was a high chance that the home would be gone by monday but what we are seeing today is that a seller is putting their home and its staying longer in the market. This has been happening in many parts of the state but its not that rampant.

Because the inventory is still low compared to the number of buyers, we are still in the thick of a sellers market.

Prices could flactuate a bit, but not daramatically, that shouldn’t be a sign that the market is returning to an equilibrium.

Where Starting Over happens every day!

We’re Starting Over, Inc. a 501(c)(3) organization dedicated to supporting and uplifting people experiencing the effects of mass incarceration, systemic racism, housing insecurity, substance addiction, and mental health issues. We believe that people impacted by these issues are the ones closest to the solutions, which is why we are a Black led and criminal justice impacted organization engaged in this work. From experience, we’ve learned that housing is critical, but alone, it is not enough to support those exiting prisons or the streets. We not only provide transitional housing, but also include holistic services such as peer support, case management, employment, wellness, and re entry services. We also work to address the root causes of our houseguests’ difficult situations, leading grassroots organizing and policy initiatives in the Inland Empire region and statewide. Established in 2009, we’ve served over 1,400 men, women, and families in Riverside and Los Angeles Counties through the re entry and transition process.

We believe that the past does not define our future. We’re invested in creating safe and equitable opportunities for all members of our community, and especially those with past convictions. Housing opportunities are crucial for our community members and directly affect their ability to thrive.

Starting Over, Inc. is committed to reducing and eliminating the many barriers to life after incarceration. We have a deep commitment to identifying and implementing evidence based approaches to strong communities and families. We seek to creating program/project solutions where the need exists in our community. We do lots of things at Starting Over, Inc. but our primary goal is to address the immediate effects and root causes of incarceration, be it through housing, employment, legislation, or community organizing.

T t i l d ith i itiatives, access our services, or support our work through donations, you can or office@startingoverinc.org.

We currently operate eight homes in LA and Riverside Counties open to men, women, and children, with options for sober living or harm reduction housing All of our services are available to our houseguests, many of whom have been unable to obtain housing after being released due to their conviction histories

Our Case Management specialists provide support to our guests with obtaining necessary documents/identification and accessing insurance, education, healthcare, clothing, food, & more.

Transitional Housing Case Management Peer Support

Our houseguests are not alone our support specialists, having experienced incarceration, addiction, and homelessness themselves understand our guests' needs and the barriers they face. We’re here to meet our guests wherever they are in their journeys and to support them moving forward through empowerment, support with recovery, referrals, and mentorship

Family Reunification, Equity, & Empowerment (FREE) Project

Mass incarceration affects not just individuals, but families many of our community members and guests experience family separation at the hands of the child welfare system. The FREE Project is system impacted led and organizes parents and family members in a non judgemental space, advising on best practices and dependency court procedures We recently sponsored and passed statewide bill that eliminates major barriers to child placement and allows family members with criminal convictions unrelated to caring for children to be considered as placement options allowing for suitable family members with criminal convictions to step up in times of crisis

Employment

Through our Path to SEED program, we connect guests and community members with employment opportunities and provide training & support regarding obtaining and retaining employment, often a major hurdle for formerly incarcerated individuals

Marshall Legal Clinic

Our free clinics provide relief for expungements, wills/trusts, immigration, and more with the support of local legal organizations

Policy Advocacy

In the past year, we’ve co sponsored and/or supported nearly a dozen statewide bills to reduce the scale of mass incarceration and its collateral consequences We’ve also worked locally to influence Riverside County to reduce criminal history look back periods from 7 years to 3 years in 2017 and to enable youth coming out of probation to be able to stay with their family members in subsidized housing

Grassroots Organizing & Civic Engagement

Our Participatory Defense organizing model (based on Silicon Valley De Bug) empowers family and community members in the courtroom to positively impact their loved one’s outcome and to bring them home. As fiscal sponsor and start up organization of Riverside All of Us or None (a chapter of a national initiative of formerly incarcerated people, family members, and allies advocating for the rights of the currently and formerly incarcerated people) we ensure that system impacted leadership remains at the center of the fight to keep our community together and address the social problems that incarceration purports to solve Our community outreach team also disseminates voter registration and public health information regarding COVID 19, and we organize food and clothing relief for community members in need.

Looking to Start your Life in Florida? Florida Dreams Realty

By Adriana Montes

Every month, tens of thousands of people travel into and out of Florida. However, I will say that relocating to Florida is not for everybody. It is for those people looking for a quiet, and prosperous lifestyle. I have heard countless stories of people leaving the state to regret their decision.

Whether or not to relocate to Florida is a decision that should be taken after you have spent some time understanding how the change would affect all aspects of your life.

What is it like to live in Florida? Which city is

perfect for retirement? You should be asking yourself many questions; hopefully, this guide will help you answer some more pressing questions.

PROS OF LIVING IN FLORIDA

No matter where you eventually move in Florida, certain basic benefits and drawbacks extend to most of the state’s population. Take a moment to consider how these factors could affect your everyday life now and in five years. Can you, for example, withstand the heat? While such information can seem insignificant, they have a greater impact on the quality of life than you may expect.

PROS OF FLORIDA LIVING

First, let’s discuss why you should relocate to Florida. Here are some advantages that Florida has. Are they sufficient to distinguish Florida from other states?

• There is no state income tax, which is a major benefit.

• Housing prices are lower than in many other parts of the country.

• Take advantage of outdoor entertainment and world-class beaches.

• There is no snow. Thus, it is warm all year.

• Residents of Florida are entitled to discounts at well-known local attractions.

• There are so many communities devoted solely to retirees and snowbirds.

BUY OR RENT A HOME?

People relocate to Florida for various reasons, the most popular of which are lifestyle, a slowerpaced retirement, or a new snowbird home. Moving to Florida permanently or temporarily can influence whether you buy or rent a house. You’ll still need to determine whether you want a single-family home or a condo.

HOUSING MARKET TIPS

Each Florida housing market fluctuates depending on how many people move in and out of the region at any given time. Wait until a slowdown in movers during the summer if you don’t want to overpay for a house. A knowledgeable real estate agent will assist you in identifying these opportunities.

If you buy, ensure you’re ready to invest in the property for at least a few years. If you buy when the price is high but decide that living in Florida is not for you, you will find yourself with a house valued less than what you paid for it when it comes to selling.

If you decide to rent, understand your rights as a tenant in Florida. Understanding how the law protects you can help you understand what is or is not acceptable landlord behavior.

CONCLUSION

Are you looking to purchase a home? Florida Dreams Realty will assist you in finding the home of your dreams by listening to and understanding your needs and desires. We will do our best to find the best home for you once we know what you want because no one can compromise on such a large purchase.

Remodelling: Pros and Cons How It Will Affect Your Insurance

By Yvonne McFadden

Remodeling your home is a fantastic way to add more value to your home, but do you know that it can affect your insurance? Many homeowners don’t know this and end up having an underinsured home. According to CoreLogic’s Residential Cost Handbook, about 64% of homeowners don’t have enough insurance, and an average of 27% underinsure their homes.

But what does it mean to be underinsured?

Underinsured means that your insurance policy only covers a portion of your losses in a claim. Underinsured homeowners have insufficient coverage, leaving them with bigger expenses if they file a claim.

Imagine filing for a claim because of a disaster, only to discover that you don’t have enough

coverage. You won’t be able to recover the costs of losing your home to such a disaster simply because you didn’t inform your insurance company of the new house upgrades. You may have to pay tens of thousands out of your pocket to cover the additional costs. That’s pretty bad. This is what happens when you are underinsured.

REMODELING YOUR HOME IN ARIZONA AND WHAT YOU SHOULD KNOW

Once in a while, several house owners remodel their homes to match modern styles. Some add a pool to their homes, others add office space for their businesses, while others upgrade their kitchen or bathroom. Remodeling increases the value of your home, increasing the cost of your home insurance. This happens regardless of the type of renovation you are carrying out.

If you proceed with adding a pool to your home, you should know that the liability risk will increase, ultimately increasing your home insurance rates. With this pool added, you should consult with the insurance company immediately and have them look at your insurance options. The company may likely recommend a higher liability coverage than the standard one of even umbrella insurance to cover the costs of getting injured in the pool or other worse-case scenarios.

INCREASING YOUR HOME INSURANCE AFTER RENOVATION: IS IT NECESSARY?

Increasing your home insurance depends on the type of renovation and the coverage you have in place. Upgrades like upgrading the roof and plumbing systems may not require you to increase your coverage. To be sure about how much coverage you need, it’s best to contact your insurance company.

The same goes for adding office space. This will increase your homeowner’s insurance rate, so it’s essential that you purchase an additional insurance policy. It should cover the equipment or machines used if you have any. If your existing coverage isn’t enough, you might be unable to replace your machines if they get damaged.

Interestingly, not all remodeling increases your home insurance rate. If you are making changes that keep your home safer, like updating your electrical systems and plumbing network, your rates will be used after your provider has evaluated your home. If you are also replacing your roof or upgrading your HVAC system, you could see your insurance rates reduced. The insurer considers these upgrades as safety measures and could reduce your premium to a certain amount depending on the roof’s age. If you are lucky, you can get bigger discounts if you live in hurricane-hit areas.

The insurance company will use evaluation tools to determine how much coverage you need.

If the upgrades increased the evaluation, you might need to increase the coverage. Without increasing the coverage, should any catastrophe happen, any upgrade made will not be covered. Make sure you inform your insurance company when you have done any home remodeling.

CONCLUSION

Considering upgrading your home by adding extra space or improving the amenities, consider how they will impact your insurance policy. Are the upgrades compatible with your instance rate? It’s vital that you talk to your insurance provider during the planning stage to see if you’ll be increasing your coverage.

What Are Mortgage Points?

By Tamra Lee Ulmer

There is no debate about it. Buying a home will be the most expensive single purchase you will probably make in your lifetime! As such, anything that you can do to reduce the cost of the mortgage might be worth discussing, and therefore in this article, we are going to look at mortgage points, what they are and how they can help you get a good deal for your home purchase.

Mortgage points, besides helping you negotiate a good price for your home, can help you also help you get the best mortgage rates, and for experienced homebuyers, mortgage points will lower the amount of interest they pay.

WHAT ARE MORTGAGE POINTS?

By now, you know that mortgage points are a great way to lock in lower interest rates on a home purchase or refinancing.

You probably don’t know that mortgage points are fees, and as a borrower, you will pay the fees to the mortgage lender to trim the interest rate on loan. This process is sometimes called ‘buying down the rate’, where each point costs 1 percent of the mortgage amount.

Simply put, one mortgage point on a $250,000 mortgage would cost $2,500.

Each point typically lowers the rate by 0.25 percent. Therefore, one mortgage point would lower the mortgage rate from 4 percent to 3.75 percent for the life of the loan. However, it is good to understand that how much a point lowers the mortgage rate will depend on the lender, the type of the loan, and the overall interest rate environment.

Borrowers in Florida interested in mortgage points can buy more than one point, and if that seems too much, mortgage points can be bought in fractions; for instance, a borrower can buy half a point which amounts to $1,250 and lowers the mortgage rate by 0.125 percent.

You pay for the discount points at closing listed on the loan estimate document. They are also listed on the closing disclosure a borrower will receive before closing the loan.

It is also worth noting that mortgage points come in two varieties;

● The originations points and

● The mortgage points.

Assuming a loan amount of $200,000

You already know what mortgage points are. Origination points are mostly used to compensate the loan officers, and before the 2017 Tax Cuts and Jobs Act, origination points were not tax-deductible. However, the mortgage points could be deducted from Schedule A. Moving forward, even though discount points are tax deductible, they are only limited to the first $750,000 of a loan.

Generally, remember, the longer the repayment period, the more points help you save on interest over the life of the loan.

So, are mortgage points right for you? Let’s look at a typical example.

**Note: the APRs and the points here are illustrative and educational in nature.

HOW DO MORTGAGE DISCOUNT POINTS COMPARE WITH APR?

Buying discount points is prepaying the interest. APR, on the other hand, is a way to facilitate the comparison of loans among different rate and point combinations. APRs incorporate more than the interest rates; they incorporate points you pay and any fees the lender charges for providing the credit.

SHOULD YOU PAY FOR DISCOUNT POINTS?

Before answering this question, we must first understand the mortgage payment structure. Two factors weigh heavily when considering an option to pay for the mortgage points. These are;

● The length of time you expect to live in the house.

● Your ability to pay for the mortgage points.

When considering the length of time you expect to live in the home, the general rule is the longer the period, the bigger the savings.

To illustrate, a $100,000 mortgage with an interest rate of 3 percent will pay you $421 monthly. Supposing you bought 3 mortgage points, the interest rate would be 2.75 percent, and the monthly mortgage payments would be $382 per month.

Put purchasing 3 discount points will cost you $3,000 to save $39 per month. You will have to keep the house for at least 76 months to break even.

A 30-year loan lasts for 360 months, so purchasing the discount points might be a wise move to make, especially if you are planning to live in the new home for a long time. The opposite is true; purchasing discount points with no intention of staying in the home for a long time might not make any sense at all. If you have to, I suggest you purchase a few discount points.

There are numerous online calculators to help you determine the discount points you need to pay based on the period you are planning to stay

in your new home.

Another factor to consider is your ability to pay for the discount points. Considering that many people barely afford the down payment and closing costs, I doubt they can have any money left for discount points. On a $100,000 home, 3 discount points may be fairly affordable, but on a $500,000 home, the cost of three mortgage points would be $15,000, which is quite high.

ARE MORTGAGE POINTS WORTH IT?

Many believe that the money used to pay for mortgage points could be channeled elsewhere where there is a good return on investment, say in stock trading. However, for first-time home buyers, the fear of not getting a mortgage they can afford outweighs all other potential investments.

BOTTOM LINE…

Plan carefully! Buying a home is a major financial decision as such, plan carefully. Look at the cost and whether it will be worth it. It is also important that you consider the number of monthly payments that you will be comfortable paying. Also, take time shopping around. Do not settle for the first option you get.

Looking to sell your home this quarter?

5 tips to

increase

the

value

of the home on a budget

By Walter Huff

The property market has been bullish for the longest time, in fact some estimates put it up 50+ percent compared to the 20182021 and the average house price was also up to $428,700- an increase of $58,900 from just a year ago according to the Federal Reserve Bank of St. Louis. Further, the median home price in the U.S. increases by at about 416% from 1980 to 2020 and by Zillow Home Value Index, the typical priced home is at $354,649.

Looking at these statistics, you may be wondering, ‘how can i increase the value of my home to max out my profits?’ Thankfully, there are some pretty straightforward DIYs you can do right away that will put your house among the top in the market. You do not need to splurge

on expensive and quite extensive repairs and renovations to give your home the best boost.

There is a common misconception in the real estate market that you must extensively remodel your home in order to improve its appeal to the potential buyers, but what you need to understand is that it’s the little details that countquick, small and easy fixtures will do the trick and can make a huge difference.

FIX ALL SMALL ISSUES

Dirty walls- clean them. Remove mold on the kitchen fittings. Clean the place up. Tidy it up! All these are small things that you can do right away to quickly improve the overall appearance of the rooms which in turn will increase the demand.

Prepare your home because guess what, buyers are prepared for that home!

Take your time and go through each room, carefully examine what each room will need. Pay attention to the small jobs that you have been putting off. One deep clean may be what’s lacking in your home to make it look better at minimal expenses.

FRESHEN UP THE WALLS

There is a high chance that your walls will need a fresh new look and in a similar way, new paint will do the job especially coupled with decluttering of the spaces. This will give your walls and space a fresh, bright and inviting new look which will do the trick to new buyers. You can maximize the value of the home for sale by going for colors that are neutral and that will make the space look more prominent, and will appeal to a wide variety of interested buyers.

CLEAN AND OR UPDATE THE FIXTURES

When it comes to switch plates, the outlet covers, the curtain rods , doorknobs, lighting fixtures and many others, there is no shortcut to doing this right, you have to update them if they are old. What you will realize is that attractive

metal switch plates will cost significantly less but will leave your home looking much more expensive. Of course the lighting fixtures are much more expensive but rather than buying new ones, you can just spray paint the old one to give them a new look.

CLEAN THE GUTTERS

I had to put this one in the list because oftentime i find many potential buyers turned off by dirty gutters. Again this is a simple task that has so much to do with maintaining the home’s value than increasing it. With dirty gutters, rain water will seep into the home, the pool and the foundation which might cause problems such as mold and mildew. Therefore it is important to make sure that your gutters are clean.

YOUR EXTERIOR MATTER TOO

Do a thorough inspection and clean up of the exterior walls and surroundings. It might not be that extensive, but the areas that need a touch up, make sure to do that. If cleaning the exterior of the home didn’t do the trick, consider a new paint job and this may not be a DIY task for everyone, but even if you hire a professional to do this job, it will not cost you as much and will add a whole lot more in terms of appeal to the buyers.

Upgrading your home doesn’t have to be a costly affair and it doesn’t have to be expensive and complicated. It also doesn’t have to involve contractors. The devil is in the details. The small things matter a lot and putting these home improvements ideas to task will help get the home the most value.

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Do you know what a Quitclaim deed is?

Here’s everything you need to know

By Heith Mohler

Buying a property is often a straightforward process. Find the property you are interested in, go to the banks to get financing, sign a bunch of papers, get the deed to the property and that’s its. The property is yours.

Not all property transfers will happen this way and inheritance is one of the transfers that will not follow this normal suit.

This is where the Quitclaim deed comes into play. Ideally, quitclaim deeds are used to facilitate the quick and easy transfer of ownership of a real property from one person to the other and are mostly used in situations that involve nontraditional sales. The Quitclaim deeds are usually used by people who know each other

well, like parents, siblings and or other relatives.

One might be tempted to assume that quitclaim deeds are just papers, but it is good to point out that they carry a legal ramifications and unlike the traditional sale or purchase of a property, a transfer involving quitclaim deed there are usually no titel searches, payment or mortgage involved.

While it makes the transfer of inheritance easy and straightforward, it does carry some risks and one of the risks is that it is applicable in instances where people know and trust each other.

HOW DOES IT WORK?

First, it involves two parties. These parties could be people, corporates, etc. the party transferring

the ownership is referred to as the ‘grantor’ and the part receiving the ownership is caled the ‘grantee.’

The grantor will use the quitclaim deed to give up some or all of their ownership rights to a home or property to the grantee and just as the same suggests, they ‘quit’ their claim to the property.

But…. quitclaim may not grant you ownership as the grantee. And this a major flaw with the deed.

We said that these types of deeds do not include title search or even an insurance that would typically confirm the grantor has the rights to the property in the first place. Therefore, when going into transfers and agreements that involves quitclaims, be extremely careful and that is why i would advise using the quitclaim only in instances where you know the other party well.

Can it be used in real estate transactions, yes and no and I would advise you not to use the quitclaim deed in cases where you are dropping a large amount of money for the property.

However, assumiung that you are buying the property from your parents, siblings or other family members, you can use the quitclaim deed as it presents a lower risk if you know the grantor and the property well.

DO THEY HAVE A TAX IMPLICATION?

The tax implications of a quitclaim deed are best summarized by the federal gift tax rules. This is so because there is no money exchange between the parties involved hece the property is considered a gift from the grantor. The tax responsibility of the property, the gift lies with the grantor and the value of the home would impact their lifetime gift tax exemption.

There are however a few key things that have be considered in this scenario in terms if tax liens and property taxes in a quitclaim deed scenario. If there are tax liens or other taxes owed on the property, the grantor will be required to pay them before officially handing over the property title. Once the quitclaim deed has been successfully transferred, tax responsibilities are also transferred to the grantee.

Do you really know what a condo is? what you need to know before buying one

By Ruby Frazier

Buying a condominium shortened condo is one of the greatest way to dive into homeownership as it is hustle free compared to other forms of homeownership like the single family homes that usually come with alot of monthly upkeeps. One of the many advantages of owning a condo is that you get to share amenities which is think is great for someone starting out their life.

WHAT’S A CONDO?

A condo is a single unit within multiple unit property usually- an apartment style building, a freestanding home or a townhome. Typically a condo could be one of the many units in a shared structure for instance a high-rise building or could be a smaller walk up building with multiple units. Many of the condos are located in the urban settings but a more recent trend i can see is the springing of condos in urban downtowns and some are even building upon items of convenience including things such as grocery stores, bank branches and other

businesses. And of course that has its shared deal of problems.

If you planning to be a condo owner, then prepare to deal with the homeowners Associations (HOA) which basically sets out a number of rules and regulations, declarations of covenants, conditions and also restrictions. The HOA determines the things that condo owners must comply with to live in their own condominiums. Failure to comply with the set out rules, you can be sued and fined and even forced to comply.

This goes to show you that condos are only suitable for a certain class of people more so the single, first time homebuyers who are not in a position to afford more expensive single-family homes.

It is also important to mention that these types of homes are good for people who are looking for low maintenance building which is a feature

that can be somewhat attractive to an older folk who are looking for less of a home that they have to be constantly worrying about physically managing.

UNDERSTAND WHAT YOUR ARE BUYING

Before signing the papers, understand what you are buying. For instance i mentioned the issue to do with compliance with the HOA terms. No matter how big the condo is, what you are buying is not the property, but the individual unit. In addition, you will also own a pro-rata share of the common areas and amenities of the community with the neighbors. These shared amenities include parks, pools, playgrounds, gyms, dogwalking areas and other areas.

Basically, the HOA acts as the supervisory board to make sure that everyone acts accordingly.

Condo owners pay for their property taxes, utilitioes and maintenance, and sometimes for the exterior maintenance depending on the community.

CONDO VS. HOMES

The main difference between these two is the price. In 2021, the median price of a condo was $297900 according to the National Association of realtos which is significantly less than a home whose value was $359,700 (pre-owned home). This figures are onl;y for the month of september 2021.

But a condo truly lives out the phrase ‘you get what you paid for’ since in terms of space, they are considerably less hence the price point. You will also not have your own backyard with a condo. In addition, when it comes to financing, mortgages for condos are slightly higher as well as they do require a larger down payment of about 25 percent.

ARE THEY REALLY GOOD FR FIRST TIME BUYERS?

Yes! Condos are appealing to young people starting their life or older couples who want a small space for their peace of mind. The lower price point is a no brainer as to why young people would prefer them and if youve been renting, you are already accustomed to the condo lifestyle.

I would also like to point out that condos arent for those with low budgets only, or is this the only determining factor. They can be an ideal investment opportunity for investors who can rent it out or even get into the airbnb business.

No matter what you motivation for buying a condo are, they are surely one of the best homes and investments you could ever make. With the cost of single family homes on the rise this year, there are certain areas where buying a condo will feel just as competitive as buying a single family home. It is important to do your research first, find out what you are really interested in, then make the decision.

Roger Beane

The real estate industry is one of the most competitive industries in the world where not only brokerage firms and real estate agents compete for customers, listings, and such, they find themselves in a never-ending tag of war for qualified agents that can help them grow.

In our quest to document stories of real estate agents making a difference for people in this industry, Roger Beane’s name is higher up the ranks. Roger, the founder, owner, and the Chief Executive of LRES Corporation, is one of the most accomplished real estate leaders with over twenty years of experience. He leads a dedicated team of professionals providing accurate solutions to customers and corporations. Mr. Beane has been in the industry for over twenty years and thus has good knowledge about banking and real estate financing and is also good at default management. He is a good leader who understands business comprehensively, making him viable. The mortgage industry acknowledges Roger as a significant contributor and a speaker at national conferences. What is more, he is a licensed real estate agent in California.

THE MURKY WATERS- THE RISE FROM DUST TO GLORY!

Roger’s career started in the 90s and, to be more specific, between 1991 and 1992. In an era marked by ‘digital darkness,’ it meant that many of the activities that we do today digitally had to be done manually. This was a huge challenge to the youngster; to add to that pain, he was getting paid based on commission. Of course, this comes with a lot of pressure, one of which was

coming from his own backyard. You see, Roger was newly married, and he had no work, which meant no salary- of course, it was automatic that the new couple would hit several rock bottoms and sail through murky waters before finally finding their way. This is exactly what happened.

As Roger narrated this story, I couldn’t help but admire his courage and stubborn spirit to persist through it.

The story of perseverance, hard work, and believing in oneself to founding one of the most sought-after corporations in California!

Eventually, despite being told to quit the industry a dozen times, it finally paid off, and after three decades, this man is still standing strong.

It is safe to say that a combination of hard work, strong worth ethic, and perseverance highlight Roger’s story. In fact, in one of the interviews, Roger recounts how he would continuously call his clients, which often resulted in his finger itching (literally. He advises “work hard to be always on the front by focusing on referrals.”

As if that wasn’t enough, Roger recounts that when cold calling wouldn’t work or did not translate to what he’d hoped for, he would knock on people’s doors just to make known of his services.

like foreclosures and evictions by possibly creating modifications that quill favors the client during challenging economic times while still considering the lender’s needs.

THE FOUNDING OF LRES: ITS ROLE IN THE INDUSTRY

First, based on our research, LRES ranks in the top 80 list of the best companies to work for in California, with an estimated employee database of over 200 people and an estimated annual revenue of $8.5M.

To say that Mr. Beane has encountered a lot in his career would be a great understatement. he is a goldmine of information as he had to learn everything by himself from a very young age. He has seen it all, experienced it, and lived through it. Therefore, you can believe him when he says, “ You are who you surround yourself with.” Perhaps one of the takeaway points from Roger would be that people, especially the real estate agents- young people trying to come into the industry to make a living- keep close associates that will have a huge impact on their behaviors“an individual should surround himself with people of similar interests to thrive.”

Mr. Beane’s career’s formative years happened when technology was just cropping up. A time when people were excited about this new frontier of doing things. In one of the Real Estate Roundtables- A show on the Power Is Now TV, broadcasted to millions of people in the United States, Roger commends the government regulatory bodies’ swift actions to minimize foreclosures. Mr. Beane recognizes the power of technology and how it has made business operations swift and efficient and encourages business people and realtors to create ingenious ways to minimize industry challenges

Founded in 2001, LRES is an established company that prides itself as a national valueadd solutions partner offering REO and appraisal management company services, HOA, and technology solutions for the mortgage and real estate industries. With more than 14 years of continued growth, LRES offers residential and commercial solutions and managed business processes for the origination and default markets.

Roger’s broad resume explains it all. He is a business mogul and a shrewd expert in real estate with a clear understanding of the good and bad seasons. We are in one of the worst seasons, impacting the country’s underbuilding real estate and the pandemic. For a while, the interest rates were extremely low, which fueled the catastrophic events whereby the market was frantic, leading to extreme pressures in the selling prices. Many banks feel they would be taking on too much risk to give out loans in light of the prevailing circumstances, which is where LRES comes in. LRES carries out valuation and acts as a provider for commercial property with a segment that deals with trustee sales on commercial loans. Demand for commercial property has dramatically increased in the last few years, and LRES has had several contracts with the government for such properties.

LRES dedicates itself to providing valuation on property and managing assets. It also has

services such as mitigating losses, home ownership associations, carrying out property appraisals, and giving price opinion REO management services. LRES has existed for over two decades and is well known for providing commercial and residential solutions and headed entrepreneurship processes for default markets and origination. Adequate preparation has kept LRES in the game for an extended period, alongside good education and diversity. The corporation’s mission is to encourage every learner everywhere and in every way, enabling younger realtors to work with experts.

ROGER’S VALUE SYSTEM

‘man is made by his belief. as he believes, so he is.’ Bhagavad Gita.

When talking to Roger about his value system, he stops and smiles and says, “I consider myself to be the most blessed man on the planet because of my family.”

Unlike many of us, Roger married his high school sweetheart, and together they managed to raise three children; two are already married and have children. Roger has been married for over three decades and celebrated his 33 years in marriage in July 2022.

When asked about the secrets to a happy married life, he says that effective communication has contributed massively to his successful marriage. One of the pieces of advice he gives young people is to ‘put the cell phone down, and by that, he means that for the union of marriage to work, one must be intentional to create a balance between personal life and work.

He is grounded in faith, which justifies why I started this section with such a profound quote. He is a Christian, and his favorite verse of the Bible is 2 Timothy 4:7-8. Roger is as well a believer. Erick L. Frazier terms him a successful businessman and a man of faith. His religion has dramatically impacted his career and business and how he establishes his relationships with others. To balance faith and work, he refers to Ken Blanchard, a motivational speaker and author of books such as ‘lead like Jesus’ and another Christian-based book called ‘leadership by the book.’ In his relationships, he does it just like how Jesus would interact with tax collectors, doctors, and fishermen among his disciples. Despite being from different walks of life, he did not forget his focus.

Roger considers its mission goals and values a fundamental entity, especially in business decisions. As a leader, values are essential since they dictate how people around a person perceive them. He is a man who follows his foundational values, and if not, he will be held accountable.

Want a smooth Buying transition?

Then you need to be aware of these common roadblocks to closing!

By Jenny Gonzalez

The home buying process is a tough one for many people, yet it brings such tremendous joy. However, that joy could be cut short if you are not aware of the roadblocks that you may encounter during the closing process.

The period after the purchase offer has been accepted and you get the keys to your new home is commonly referred to as escrow and during this period, there are so many things that could go wrong. The escrow rules and procedures will vary from state to state, but here are some of the common problems that many people encounter in this period.

EARNEST MONEY LIQUIDITY

When a buyer enters the contract they are expected to make a deposit with escrow, this deposit is what’s known as Earnest Money Deposit and is usually made within the first 24 hours after an offer has been accepted. This money shows that the buyer is serious about buying the property and they will give it up if they walk away from the sales without an agreed upon contingency.

The EMD is usually anywhere between 1 and 3% of the purchase price which is quite significant. Buyers should always be ready with their earnest money preferably in liquid form and ready to be wired. Failure to which they might end up losing the property.

INSPECTIONS SHOWING DAMAGES

Take for instance a termite inspection. Usually, the lender will have a pest inspection done on the home and usually done at your expense for usually less than $100 to make sure that the structural integrity of the woods isn’t compromised. This inspection normally protects the lender’s interest in the property. Supposing that the lender discovers termite problems in your property, this problem will be fixed before the escrow closes. If the problems are extensive sellers will not pay to fix them. The buyer can walk away if the purchase agreement does not have the proper contingencies.

PROBLEMS WITH FINANCING

Many buyers who are serious about buying a home do not make the plans without getting a preapproval letter. Basically a preapproval letter is a written commitment from the bank to give the buyer the loan to make the purchase. Savvy sellers on the other hand do not accept offers from buyers without a preapproval letter.

It is important to note that there are some things that can prevent a loan from closing. For instance, you may have lied on your application, the interest rates might have risen sharply and your job situation may have changed. All of these are potential problems that could affect your closing and the best way to avoid them is first talking to your mortgage lender and asking them how best to avoid problems like these.

The National Foundation for Credit Counseling is the largest and longest-serving network of nonprofit financial counselors. Our mission is to help everyone gain control over their finances through free access to financial education. Credit.org, one of our premier member agencies, understands the need for financial safety, so there is no shame in asking for help. Get back on track today.

The Battle between Move-in ready homes and Fixer Upper homes

My honest opinion on which is better

By Ian batra

To many first time home buyers in the market looking for a property that they will call home, fixer uppers seems to be somewhat enticing. They come with heavy discounts because there is a price to pay down the line in terms of repair costs and or upgrades. If anything, the pandemic has made it hard for people to save cash, moreover, inflation has affected the affordability rate of many people making it extremely difficult to save and to buy a home. As such, buying a fixer upper seems like the most reasonable economic decision one could ever make.

that needed much renovations, when it comes to selling it, you will ask for more than in the case with move-in ready homes. If you factor the time and the money that will go into renovating the home and transforming it to match your preferences, once complete, it will often be of a better value.

I think in terms of investment opportunity, fixer upper homes presents the better choice flipping a fixer upper will have a better ROI which explains why this is a booming business for most people.

On the other hand, move-in ready homes are undeniably appealing and to many people, they may come as a relief. Move-in ready homes means that you will not be forced to spend so much on renovations or upgrades. You will also not be forced to wait for long if need be for renovations or upgrades, but they are expensive.

Both move-in ready homes and fixerupper homes have their advantages and disadvantages. It all boils down to your personal preference, and budget.

FIXER UPPERS

With fixer-uppers the buyer has he option of really tweaking the house to his preferences and personalizations. Fixer uppers gives the buyers the chance to add features that would meet their specific needs.

In addition, i honestly think that these types of homes will give the buyer a better value and there is a reason for this, if you bought a home

But on the other hand, its not all rosey because you will never know where the problem lies when it comes to renovations and repairs. Chances are, you might think you have fixed it all, only to uncover a bigger underlying problem which forces you to dig deeper into your pockets. The main issue with fixer uppers is that they usually require significant renovations and upgrades. If you are buying an older home, that would mean more problems that are also unexpected for instance structural problems, code violations and other problems that might require your immediate attention.

In addition to, because of all the renovations that you are required to make, it would mean that moving in might take some time. It also depends on the problem that you find and the intensity of the work that is needed to be completed. Therefore, with many fixer upper projects, living on site not practical. Therefore, it forces you to find alternative housing option making the whole process a costly affair.

Pleas note: Fixer-upper might require renovations such as replacing the floors, the walls or even the roofs. There are also those that require less intensive work such as minor cosmetic repairs. Fixer uppers are usually sold at a much lower price simply because of the work and the time it will take you to repair the home.

MOVE-IN READY HOMES

Move-in ready homes are those that require less renovations as compared to the fixer uppers. But, if you ask me, the term move-in ready homes is a bit misnomer and somewhat misleading because it implies that the home is practically ready to be inhabited, but that is not the case.

establlishes that the structural design is good, intact and not in any violation of any codes. Therefore, this removes the uncertainty of surprise maintenances that will be needed after you move in and any extra cost will be at your discretion.

And also, unlike the fixer uppers, move in ready homes you wont have to wait as they are often newly renovated. You can move in as soon as you want to.

The term is more of a broader generalization to cover many degrees of readiness but the definition i first gave you makes the most sense. In theory, while there are some minor repairs to be made, you can purchase a move-in ready home and start to load your furnitures into it.

The one thing that i love about the move in ready homes is that they are fairly predictable in terms of costs. When buying a move-in ready home, most of the crucial utilities like electricity, pumping systems do not need any repairs. And it is called a move in ready home for a reason, home inspections have already been done that

OTHER CONSIDERATIONS TO MAKE

All of this however does come at a steep price. Remember, convenience comes at a price and when you buy a move in ready home, you will be forced to pay much more than you would have in the case of a fixer upper. Many people usually will renovate their homes before listing them up for sale which in turns increases the price of the home.

In addition, unlike with fixer uppers that you can tweak to your liking, move in ready homes arent easily customizable and may not be exactly what you are looking for or may want. Even if the home is turnkey, it may have features that do not necessarily entice you and chances are since you paid a steep price for the home, it might take you years to tweak the home to your liking. But this is a non issue to many peple especially in these times where all they want is a home.

Before buying a fixer upper home, the most important question you need to ask yourself is whether you can afford this property or not.

Right now, with the rates up, buying a home has become a national crisis, many people cannot afford to buy given the current economic conditions. In addition to that, there are so many other costs that are associated with buying a home, be it a fixer upper or a move-in ready home, you should be asking yourself whether you can be able to handle these costs or not.

But if you are reading this, I assume that you have looked at all your numbers and decided to become a homeowner. The next step is to meet up with the mortgage lender who will give you the pre-approval letter for the next steps.

But the most important thing, know what you are getting yourself into. Homeownership is beautiful, but not for the unprepared!

What is a Listing Agreement and How Will It Affect Your Selling Process

By Briana Frazier

Alisting agreement is a contract of employment between a property owner and a real estate agent. The agreement gives the agent exclusive rights to sell the property on behalf of the property owner.

WHAT’S INCLUDED IN A LISTING AGREEMENT

Listing agreements have slight variations but are generally the same. They will include the asking price, list of seller’s and broker’s duties, broker’s fee, property description, a list of personal property included in the sale, a list of personal property to be removed upon sale, terms for mediation, contract expiration date among other things.

TYPES OF LISTING AGREEMENTS

Generally, there are three types of listing

agreements namely an open listing agreement, an exclusive agency listing, and an exclusive right-to-sell listing agreement.

An open listing agreement gives various agents the right to sell the property. As such, it is viewed as the listing agreement with the least commitment from the property owner. While an open listing agreement is advantageous to the property owner, it may not be too favorable to a real estate agent.

On the other hand, an exclusive agency listing is more favorable to a real estate agent as he or she has the exclusive right to sell the property. However, the exclusivity only excludes other agents but the owner can still sell the property on their own. The agent receives a commission from the property owner once he or she sells the

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property but does not receive any commission if the property owner sells the property on their own.

Finally, the exclusive right-to-sell listing agreement is the most favorable to a real estate agent as he or she has the exclusive right to sell the property. It is the most common type of listing agreement. Typically, agents devote a lot of marketing effort to sell properties under such an agreement making it beneficial for the property owner as well as the agent once he or she makes the sale.

HOW WILL A LISTING AGREEMENT AFFECT HOW YOU SELL A HOUSE?

Firstly, a listing agreement legitimizes an agent. Potential buyers will find an agent more credible if they have a listing agreement to sell a property, especially if it’s an exclusive right-to-sell agreement.

A listing agreement, depending on the type, may help an agent prioritize listings that bring the most value to the agent and by extension to the property owner. The more exclusive a listing agreement, the more committed an agent is to

selling the property with little to no competition from other people selling the property.

Listing agreements give both the seller and agent the opportunity to negotiate terms and conditions into the contract to ensure both parties maximize their return once the house is sold. Furthermore, since listing agreements generally have an end date, this can help an agent cut off listings that are hard to sell and focus on other listings.

Signing a listing agreement also promotes transparency as the property owner is required to concisely describe the property and disclose information about the property.

Seeing that a listing agreement is a formal contract, both parties are bound under contract to fulfill certain obligations. This means that as an agent, commission is guaranteed as well as any other agreed upon compensation.

CAN A LISTING AGREEMENT BE TERMINATED?

Well, yes. However, seeing that a listing agreement is a legally binding contract, it can only be terminated under certain circumstances. For example, death, bankruptcy, mental illness, unexpected damage to the property among other factors that may be beyond either party’s control. Worth noting is that if there is no termination clause in the listing agreement, it may be difficult to cancel the contract if either party was to change their mind. As such, it is prudent to include a termination clause to avoid being tied down to a listing agreement.

In conclusion, listing agreements are advisable for both the seller and the real estate agent as they clearly define the business relationship between the two parties. This ensures that the selling process is smooth and well laid out.

Minnesota Housing Market: Prices, Trends & Forecast 2022-2023

By Francine Marsolek

Proper knowledge of the latest market trends is vital for sellers and buyers in that they can tell when is the best time to buy or sell a home. Analyzing the housing market for 2022 and future years aids homeowners and prospective sellers in understanding the differences between mortgage rates, purchase demand, house saving, affordability, and realtor fees. This report entails the real estate activity in Minnesota, comprising Single Family homes, condominiums, and townhouses.

Closed market days in Minnesota increased, whereas the median price of homes increased. In the State, demand for houses is higher than the available supply (there are high inventory

levels). Despite the high market prices, home ownership remains attainable due to the strong job market and the low mortgage rates. By July 2022, the median sales price was 7.9 higher than $339,900. In July, however, there were highinterest rates which resulted in to decline in sales by 24% Compared to the previous years.

Several housing metrics increased yearly, such as the average sales price, which went up by 9.0%, median sales prices by 7.9%, months’ supply by 18%, and homes for sale rose by 6.4%.On the other hand, various metrics decreased year over year, such as pending sales which declined by 19.5%, closed sales by 19.2%, days on the market by 3.8%, affordability index

by 24.6%, pct. of original price got by 1.7% while new listing went down by 14.2%.

High home prices exist because people compete for the same properties. Minnesota is a seller market since sellers receive many bids on a particular home and thus have the privilege to dictate the market prices and do so in their favor.

MINNESOTA MARKET OVERVIEW FOR 2022

In September, the home market prices were higher than the previous year by 5.1%. The median price of homes was $331,900.the average number of houses was less by 17.7% year over year. September recorded 7107 homes sold in the whole month. The median market days during the time were 23 days.

Comparing the current home prices of Minnesota to that of the last decade, home prices are higher and appreciated by almost 98%. Home values in Minnesota went up by 10% between 2021 and 2022 and rose by 25,4% in the last two years. In 2022, all houses(single-family homes, condominiums, and townhouses) fetched the highest price in June and the lowest in January.

MINNESOTA HOUSING SUPPLY

In Q3, the number of homes available for sale was 18390. The value was less by8.1% year over year. Of the total houses, 6524 houses were newly listed. Newly listed places had decreased by 26% year over year.

MINNESOTA HOUSING DEMAND

In September 2022, over 37% of the homes sold below their list price. The houses sold below their asking price were more than the value in the previous year. Also, 99.7% of homes had a saleto-list price, down 1.7 points yearly.

Rates for selling homes in Minnesota are unquestionably low, indicating that a return to the norm is still a housing demand. When

the Minnesota real estate cools off, buyers merit since chances of being outbid are low as compared to when the real estate market is hot.

Due to July’s low sales, the housing market foresees to favor sellers. It is so because a house generally takes two to three months before closing. During that time, the property is usually under a contract binding both the buyer and the seller. For a single-family home, the months of supply is about two months, and this time is entitled to the sellers’ side. In instances where the inventory levels are high, and supply is low, prices of homes go up. Such times take five or six months of supply; anything lower means a seller’s market.

MINNESOTA REAL ESTATE APPRECIATION RATE

Minnesota’s median home value is said to be about $297,269, according to Neighborhood Scout. Minnesota’s real estate appreciation between Q4 2021 and Q1 2022 was 2.28%, while between Q1 2021 and Q1 2022, the appreciation rate was 2.28%. On the other hand, cumulative appreciation in the last decade was around 127.11%. Minnesota’s cities with the highest appreciation in previous years are Newfolden, Clinton, Brown valley, Plummer, Oklee, and Angle Inlet.

Home prices both in Minnesota and other states are directly affected by demand. Experts in real estate say that demand will continue to increase and not lower anytime soon. Although the rise is steady, home prices are seen to level or slightly increase in 2022-2023, primarily due to the highinterest rates.

Six months’ supply usually follows appreciation in history. Due to the pandemic, construction lowered due to a shortage of labor and supply chain issues which made acquiring various building materials difficult. Housing supply lacks a balanced real estate market in Minnesota.

Have you been skipping sewer scope inspection?

Here’s why its extremely important

By Janet Petrozelle

For those in the market to purchase new properties, home inspections is a term they have ran into several times. However, while common, it may not be a surprise that so many people are not familiar with what a sewer scope inspection is and therefore, in many instances, sewer scope inspection gets left out.

Asewer inspection is a special type of inspection where the technician has to run a camera through the sewers to check for any damages and leaks.

Unlike many other typical inspections, the sewer scope inspection doesnt necessarily have to be during a real estate transaction. Additionally, the sewer scope inspection is not included in the typical home inspection. It falls under the category of inspections that home buyers should order separately.

Since sewer scope inspection isnt a typical inspection, many buyers often will skip this inspection and they do not do it intentionally, it is just that its not that common.

WHAT ARE THE HEALTH RISKS ASSOCIATED WITH THE SEWERAGE EXPOSURE?

When the sewer lines are damaged or even blocked, there are high chances that the sewage will back up into the home. This dirty water is extremely dangerous as it contains a variety

of biological hazards that can cause intestinal, lung and even other infectious diseases. This moisture is the perfect ground for mold.

Assuming that the blockage or the damage to the sewer lines goes unnoticed, this issue will spread and expose other people to health risks. Therefore, it is important to always do a sewer scope inspection.

THE POTENTIAL RISKS OF STRUCTURAL DAMAGES TO THE SEWER LINES

Usually, the basements and flooring are more exposed and at risks of getting damaged in case of sewer lines damages. If these structural damages are not discovred early enough, they can be extremely expensive to repair.

Here are some potential risks;

• Flooding of the homes: sewer backups will lead to flooding in your home, which can in turn damage your building and destroy your belongings.

• Flooding in the yard: supposing that the sewer tak is located beneath the property, any leaks can cause the yard to flood and stink.

• Sink holes: these are dangerous. Damages to the sewer pipes beneath the property can cause the soil to saturate leading to indentations or even sink holes in the land or the pavements above.

• Cause weak foundations: yes, if the sewer leaks go unnoticed for a certain peroid of time, it can cause the foundations to be weak and this can be seen if your walls starts to have some cracks.

HOW MUCH WILL IT COST YOU?

There are so many factors that go into determining the cost of a sewer scope inspection. These factors include geographic location and sometime the age of the home. However, a standalone sewer scope inspection will cost you anywhere from $150-$500. Of course you can get discounted prices for the inspection especially if there are more inspections to be made.

The most important thing is to never assume this important inspection when purchasing the home.

Are VA loans good for veterans?

By John Costigan

The demand for VA home loans has recently been rising as many service members with tough credit, and down payment requirements choose VA loans as their suitable home financing option. We cannot hide or deny the extreme attractiveness of VA loans, especially for veterans. In 2020, the number of military members who took advantage of the VA loan programs was reported to have expanded rapidly. According to Forbes, more VA-backed loans originated in 2020 than in the previous fiscal years combined, totaling more than 1.2 million loans.

However, as with any loan option or anything else, VA home loans have pros and cons. It’s just part of the game. It’s best that you remain aware of these pros and cons if you’re to make an informed decision. Let’s have a look.

PROS OF VA HOME LOANS.

To begin with, VA-backed or VA home loans require no down payment. This means eligible borrowers can borrow as much as the lender is willing to give without putting a penny down. How does this happen? When the VA backs a loan, they insure a part of the loan. This means that in case you default, the VA covers the portion they had insured. This gives lenders more confidence, and they can offer more favorable terms, such as no down payment to eligible borrowers.

VA home loans require no private mortgage insurance (PMI) from eligible borrowers. This is because the Department of Veterans Affairs or VA insures home loans to eligible veteran borrowers. Normally, PMI is required for conventional borrowers who cannot put down at least 20%. For conventional borrowers who

afford to put down 20% or more, or those with a 20% equity in their homes, PMI is not required.

Requiring no down payment and no PMI, VA home loans come with significant benefits to eligible military borrowers.

Additionally, VA home loans offer two refinance options to help eligible veteran home buyers reduce their monthly payments or get cash back from their equity. The first one is the Interest Rate Reduction Refinance Loan (IRRRL), designed for home buyers with existing VA loans. The second one is the VA Cash-Out Refinance which allows existing VA and non-VA homeowners to refinance their mortgages and get cash at closing to pay down debt or cater to other expenses and needs.

Another advantage of VA home loans is that they are flexible with bankruptcy and foreclosures. Typically, bankruptcy and foreclosures can crush one’s credit score and financial health. However, bankruptcy and foreclosure don’t automatically disqualify a borrower from getting a VA loan. After being declared bankrupt or having experienced foreclosure, you must wait two years to qualify for a VA home loan.

Lastly, of the pros of VA loans, there is no prepayment penalty. Yes. You can fully settle your VA loan early without worrying about attracting prepayment penalties. This is unlike other conventional loans.

VA HOME LOAN CONS.

First, VA home loans or programs are not for everyone. The program is a loan one must earn, making it extremely rare to acquire compared to other loan options. VA home loan programs are only eligible to service members, including veterans, active service duty members, and those serving in a National Guard or Reserve.

They have served or are serving in the US military. The programs are also eligible for surviving spouses of veterans, the spouses of veterans who are missing in action, or those held as prisoners of war. Besides these, the veteran or the spouse must meet the basic service requirements set by the VA, have a valid Certificate of Eligibility (COE), and meet the lender’s credit and income requirements.

Secondly, all VA home loans come with a mandatory VA Funding Fee, which is meant to help keep the VA home loan program alive for future generations and goes directly to the agency. However, eligible borrowers with serviceconnected disabilities are an exception. You’ll not find the fee in other conventional loans, although it’s for a good cause.

Moreover, VA home loan programs are only designed for primary residences. This means that you can’t use a VA loan to buy your second home or investment property. Service members who qualify for the loan must certify that they intend to occupy the property as a primary residence personally. The VA gives eligible borrowers a “reasonable time” of up to 60 days from the closing date to occupy the home.

Lastly, some home sellers are never open to accepting offers from VA-backed borrowers. However, this majorly has much to do with some myths and misconceptions surrounding VA loans. Some rumor that VA loans have too much government red tape, while others believe that VA loans take forever to close, all false statements.

With both sides of the coin now shown to you, you’re in a better position to make an informed decision. It’s time to live the American dream of homeownership.

San Francisco & The Bay Area Housing Market: A Look At Prices, Current and Future Trends

and Forecast for 2023

By Norman Green

The Bay area is one of the most expensive areas to live and buy real estate in America, but the good news is that it’s all coming down! Even though not as fast as we would love, it is still coming down and that is what counts. The California Association of Realtors (C.A.R) reported that the number of home sales in the San Francisco & Bay Area dropped by almost 30 percent in August 2022 compared to the same period last year.

Not only that, but the report shows that sales in three out of the nine counties of the Bay Area fell more than 30 percent in August with a county like Sonoma plummeting by 40.3%. This is a good thing for the market especially considering that the Bay Area for the last 2 years has been untouchable. This effect has pushed many people out of the state in search for affordable housing options. Therefore, the deceleration in home prices means that many people who were locked out of housing opportunities because of the stiff prices now get a share at the big pie. The huge declines in prices of homes occurs as mortgage rates have significantly risen in the past 9 months which has ultimately discouraged many buyers.

Although the rising interest rates is a good thing for such a frenetic market, it has had a negative impact on the buyers. Remember last year many people got into the market to buy homes with the hopes of locking in a low rate, and now that the rates have risen, many buyers are afraid they might not be able to afford to buy homes.

Also noted in the C.A.R report is the fact that

there is a slight increase in inventory which is a positive thing as inventory has remained low all throughout the year. The more inventory there is, the less the competition in the market and the more the market tilts towards the buyer’s side.

A LOOK AT THE HOUSING MARKET

In August 2022, (the latest data that we can analyze conclusively), housing prices in the Bay Area dropped and going by the current trends, home prices in the majority of the Bay Area Communities will continue to decline over the next 12 months. Data from zillow predicts that there is likely to be a 4% decline in the Bay Area home prices between August 2022 and August 2023.

The current median prices of homes in many counties of this region average at $1,250,000 and this includes counties like; Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonom. Therefore, we can expect that in the next 12 months, prices will be averaging at around $1,200,000.

Interestingly, the sale of existing homes was down in all the major regions of California in August with the central coast region recording dramatic declines of 30.6 percent from a year ago. This was followed closely by the San Francisco Bay Area which has recorded a decline of 29.1 percent.

HOUSING INVENTORY

As of August 2022, the months of supply for the existing single-family home in the Bay Area stood at 2.5 months which shows that we are still in a

sellers market. But, of importance to note is that this is an increase from last year’s count which was at 1.5 months. Today, homes in the Bay Area are still selling for more than the asking price as buyers are still ready to spend more to win bids. In fact, the sales price to list price ratio is at 100:1%.

Do we expect prices to drop further? Yes. The buyers who have been priced out of the market for whatever reason, be it downpayment or any other, are waiting for the market to cool down further. But, there are those that argue that the supply still supports higher prices and while that’s true, high interest rates will crash all prospects of prices rising higher. Interested buyers will find it difficult to get properties, but sales and prices are certainly declining further in the coming months.

CURRENT TRENDS AND PREDICTIONS

Certainly, San Francisco and the Bay Area ranks among the top most expensive areas in the world and that’s not about to change any time soon. It is also one of the most densely populated areas in the United States which means, the demand for homes will always be there and as long as demand is higher than supply, home prices will remain extremely high.

For these reasons and more, San Francisco is shaping up to be one of the world’s hottest markets. According to Zillow, since 2012, the San Francisco county home values have appreciated nearly 100%.

The typical value of homes in the county is $1,534,752 and 50 percent of all housing stock in the area is worth more than $1,534,752 and 50 percent is worth less. Compared to the same

period last year (August 2021), it shows that homes in San Francisco have appreciated 3.4% since the typical home was selling for about $1.48M.

THE APPRECIATION DATA

In the last ten years, San Francisco has seen an appreciation rate of 106.51% with an annual appreciation rate of 7.5% which means San Francisco is in the top 20% of the country for places that will give you the best returns for your money. However, looking at the percentage change year over year, last year the area’s appreciation rate lagged behind most other places in the country recording a 10.71% which is actually lower than most American Cities. NeighborhoodScout’s data show that the appreciation rates in San Francisco were 3.37% in the most recent quarter which means a 14.19% annual appreciation rate.

PREDICTIONS FOR 2023

Going by what we know so far, that the Bay Area real estate has risen 7.5% over the past year, we can determine what the future looks like. However, higher mortgage rates are shaping the market and have a huge role to play in the moderation of price growth. The Bay Area home values have certainly gone up but we expect a steady decline of about 4% from August 2022 to August 2023.

Real estate market in San Francisco is like no other and only a few places have seen such dramatic changes in just a short period of time. That said, 2023 may be the year price temperance makes the city much more affordable and we can already see the signs. But that remains a mystery and we just have to wait and see.

Connecticut Housing Quarter: A Deep Dive into New Haven real estate Market- Stats & Predictions

By Steven Rivkin

Last year we saw a frantic market, but I am glad this year we saw the market cooling down, although not naturally, at least the market is leveling. The storm witnessed last year is cooling down and the Connecticut housing market is at a level where we can accommodate more buyers than the previous two years.

This year, the market is different due to the rising mortgage rates, and remember, the market last year was frantic due to the low mortgage rates. The rising interest rates were more of a corrective measure taken to tame the rising inflation rates which in turn has made homeownership much more expensive and inaccessible to many people.

The good news is that the New Haven market has started to record an increase in the number of inventories which means that buyers now have more options. They no longer have to engage in counterproductive bidding wars they were subjected to in the past two years.

As of the beginning of the year, the statewide inventory supply was just two months short. The State’s association of realtors states that its has four months worth of supply. The normal supply is six

PHOTO FROM 123RF

months, this is when we say that the market is operating optimally.

LOOKING FORWARD… GUIDED BY A ROUGH PAST

Many people experienced a very tough past when it comes to their experience with buying a house. Looking forward, properties will continue to sell relatively quickly. It is also highly likely that these properties will be selling for more than their asking price as inventory will remain relatively low.

I can conclusively say that the last time Connecticut saw a normal market was in 2017 and as the interest rates continue to rise, and as inventory continue to make its way into the market, the market will slowly come to a level of equilibrium.

Also, it is safe to say that home prices in the major connecticut metro area will fall in 2023 as the increase in the home prices is falling considerably as compared to last year and a good case to mention is the New Haven CT market where property values rose and expected to maintain a momentum of 2.9% between the summer of 2022 and summer of 2023.

STATEWIDE FORECAST: IS IT SAFE TO INVEST IN CONNECTICUT?

Currently, Connecticut is a seller’s market and even now, homes are selling faster and for far much more than they are actually worth. When compared to the past years, home values in Connecticut have risen 12.4% and 36% over the past two years which paints a picture of how frantic this market was.

the Connecticut’s metros are expected to decline in 2023 and there is a reason for that. Remember, the conditions that have existed over the last two years are still prevalent which means the market is and will continue to be in favor of the sellers. Unless the inventory grows faster or the interest rates rise higher to the point of dampening the demand, we can conclude that sellers will dominate the market into the foreseeable future.

While these are statewide statistics each city and town in Connecticut has its own unique story, but not very far from what we are seeing on a statewide level.

Investing in this market is one of the best decisions you could ever make. The best markets to be looking at include New Haven, Fairfield County where there is a high demand for homes. Fairfield is one of Connecticut’s most populous county. Data from NeighborhoodScout show that the statewide appreciation rate in the previous 12 months, that is Q1 2021 to Q1 2022 was among the nation’s lowest appreciation rates with the median price for homes only appreciating at 16.05 percent.

Between Q4, 2021 and Q1 2022 the appreciation rate was 2.49%.

Looking at Metro area data, Zillow predicts that none of

1. Hartford, CT home values are forecasted to rise 0.7% between July 2022 to July 2023.

2. Stamford, CT home values are forecasted to rise 1.5% between July 2022 to July 2023.

3. New Haven, CT home values are forecasted to rise 2.9% between July 2022 to July 2023.

4. New London, CT home values are forecasted to rise 1.5% between July 2022 to July 2023.

5. Torrington, CT home values are forecasted to rise 1.9% between July 2022 to July 2023.

Home prices in Connecticut will definitely cool, but not so soon. The demand will still remain strong. The geographical positioning of state makes it one of the areas where real estate prices will remain unchanged for a while.

C o s t a M e s a

DECIRA PIMENTAL

Costa Mesa Housing Market:

A Look into the Areas real estate market

performance through the year

By Decira Pimental

Costa Mesa can be described as a medium-sized city that is in the state of California. It has a population of 111,918 people and about 25 constituent neighborhoods which makes it the 58th largest community in the state of California.

The largest share of the available workforce in the city are in management occupations (13.49%), followed closely by sales (13.32%) and office and administrative support (9.12%).

Life in Costa Mesa offers the residents an urban suburban mix that makes many people feel right at home. There are so many restaurants, coffee shops, relaxing areas, and parks. It is a city that accommodates all demographics but I find that it’s a city blooming with youngbloods. One thing you’ll love about this city is that it has some of the state’s highly rated public schools.

Looking at a profile of homes sold in Costa Mesa, you will quickly realize that they are some of the most expensive homes when compared to other places in the state, which makes a lot of sense why Costa Mesa has consistently ranked among the most expensive areas to buy property in America.

WORKFORCE CHARACTERISTICS

Primarily, the city is decidedly a white-collar city with almost 90 percent of its workforce employed in white-collar jobs. This is well above the national average. If you dig deeper, you will find that many people living in the city are in sales and other administrative jobs, for instance managers, and professionals.

Additionally, Costa Mesa is home to many artists. It has more artists and designers and people working in the media industry than 90% of the communities in America. All of these factors combined give the city its unique character.

Of interest to note is that the economy of Costa Mesa is primarily run by people who work from their home. About 11.25 percent of the workforce in Costa Mesa work from home. While this number might seem less significant, as a fraction of the total workforce it is quite high compared to the rest of the country.

One thing that you will quickly notice about Costa Mesa is that it has a large population of young, single, highly educated and upwardly-mobile career starters. Many people living in Costa Mesa are in their 20s and 30s. These are people with graduate or undergraduate degrees starting their careers. It makes Costa Mesa one of the places that offers a vibrant lifestyle tailored for young people and a good place for young people to meet and interact with people like themselves. It is a city that offers good opportunities for friendships, socializing, romance and fun.

ECONOMY

The per capita income of most people in Costa Mesa as of 2018 was $44,291 which can be considered as an upper-middle income relative to California and a wealthy one when extrapolated to the nation. This therefore equates to an annual income of $177,164 for a family of four but that’s not to say that the city doesn’t have its share of poor people.

As of 2022, and as reported by Niche.com, the median household income of Costa Mesa is $90,370 which is also high compared to the national average of $64,994.

ETHNIC DIVERSITY

In terms of racial integration, Costa Mesa is an extremely ethnically diverse city. The greatest number of Costa Mesa residents are white followed by Asians. It also has a sizable population of Hispanic descent who account for about 36.36 percent of the city’s residents.

REAL ESTATE MARKET PERFORMANCE: ANALYSIS, PREDICTIONS & APPRECIATION DATA

The median cost of homes in Costa Mesa is $1,061,201 and homes in this city are not only expensive, but make the city one of the most expensive in America.

Looking at the homes by their characteristics, we can see that the most common housing type are the single family detached homes which account for about 38.74% of the city’s housing units. Other most common housing types in Costa Mesa include large apartment complexes or the high rise apartments which account for 36.76 percent, duplexes, homes converted to

Getting Buyers Hooked!

3 strategies to initiate bidding wars and get multiple offers in a crazy market

By Monica Hill

The past two years have been extremely tough for investors and buyers in the real estate market. There has been a severe shortage of inventory which has inevitably set the center stage for increased competition. Sellers have been riding this wave sky high and before things get better for the sellers, it’s going to get worse.

more buyers for the same property. Essentially, the past two years have been characterized by crazy bidding wars which have in turn drove the real estate prices higher. Buyers in a desperate effort will offer sellers increasingly higher amounts of money and other perks for sellers to be swayed to their offer. And other buyers too in competition offer more and the process continues.

As such, how can sellers and real estate agents get the most out of their listings?

Enter bidding wars! Bidding wars, just as the name suggests, is competition between two or

Sellers are usually happy in such a situation as more offers means more money and in today’s market, bidding wars are happening organically which means sales prices are being driven high above the asking price.

PHOTO FROM 123RF

But what if bidding wars are happening organically? There is a way for sellers and real estate agents to jumpstart this process.

Offer low prices to drive eyeballs your way!

One of the ways you can jumpstart a bidding war is by offering a low listing price for your home. You can go just slightly below the fair market value for the home.

Ideally, low prices will incite increased attention and interest in a home and competition among the buyers. In most cases, when it comes to determining the listing price for the property you should price the property not just to be on the market, but to be in it too. The idea behind pricing your home lower than the market values is to make it a compelling choice for the buyers who will notice it and quickly take a look.

When you offer lower prices for the property, it will create a perception of value in the eyes of the buyer which in turn attracts them to come and see the home, most of the time in person.

While this is a strategy that can drive higher prices for the home, it does come with some risks in that the seller can go too low than they are willing to accept. Also, you should keep in mind that the ‘pricing your home low’ strategy does not guarantee higher prices. In the last 2 years, the pricing of homes has incited a bidding war especially in the last two years, but right now, interest rates have risen well above 6 percent and the result- homes are staying on the market longer. Lessened demand for homes means less bidding wars which means offering a low list price will potentially attract low offers.

SET A DEADLINE FOR OFFERS

Typically, a serious buyer is never worried about missing out on their dream home and therefore, how will setting a deadline help? Setting a deadline motivates the potential buyer to act fast, not procrastinate thus stimulating a multiple offer scenario.

But there is a caveat to this strategy. This strategy works best where the home has been priced right and where you have multiple on site showings lined up. This way you can notify all buyers that you have received multiple offers and that they should submit their highest and best offer if they are interested within a certain period of time.

CREATE A SENSE OF URGENCY

A rule of thumb to always remember is that interest begets interest and therefore, you should always try to create consistent interest and foot traffic at your open house.

Assuming that there are more people viewing the property at any one particular time, that is they are overlapping in between the viewing, more serious and interested buyers will always try to offer more based on the home’s appeal, and perception of greater competition. Always try to schedule the open house for a limited time on the weekends about a week or two after listing the property which gives more people the opportunity to view the property.

Crypto real estate:

How Cryptocurrencies are changing real estate investments

By Jamar James

CRYPTOCURRENCY FUNCTION IN REAL ESTATE

Most crypto investors are younger than stock market investors, who involve older pals. They have become more interested in the market due to cryptocurrency adoption in the real estate sector. Cryptocurrency fits the 24/7 pace that this audience is used to. Thus there is no slowdown or waiting for a financial institution to initiate a money transfer while using it.

FACTORS THAT FOSTER THE GROWTH OF THE USE OF CRYPTOCURRENCY IN REAL ESTATE

Consumer awareness, comprehension, and conviction are the main determinants. Who would have imagined that we would have FTX Arena in Miami or Crypto.com Arena in Los Angeles just a few years ago.

Some investors made it rich during the pandemic as cryptocurrency trading skyrocketed. They

PHOTO FROM BITCOINIST.COM

suddenly had the money to purchase their first property— those who already had riches invested in cryptocurrency. In a global study of more than 600 wealth managers who oversee portfolios for individuals worth more than $30 million, nearly one in five clients already invest in cryptocurrencies, tokens, and coins.

DRAWBACKS OF CRYPTOCURRENCY IN REAL ESTATE

Rising interest rates caused a drop in cryptocurrency prices in 2022, thus alarming investors and reducing the worth of all cryptocurrencies by about $2 trillion. However, interest in cryptocurrency real estate deals continues, not just among buyers trying to turn their more volatile holdings into less risky investments.

In the months leading up to bitcoin’s peak in November of last year, according to Daniel Browne, a senior real estate associate at the British law firm Kingsley Napley, interest in purchasing real estate with cryptocurrencies increased. As a result of recent market volatility, he claims that the case for investing in safer assets is becoming more compelling. “People were looking at perhaps having an exit from something known to be volatile and then putting money into something a little bit more well-known... say bricks and mortar,” he says.

Younger first-time purchasers make up a large portion of Browne’s clientele.

According to them, they “had legitimately profited through taking chances and, I assume, some luck along the way. They have now ventured onto something different. International homeowners are interested in purchasing second homes abroad. That is why La Haus, a Colombian real estate firm with Jeff Bezos’ support, has tested bitcoin property sales in well-known tourist destinations like Tulum, Mexico, and Colombia’s Caribbean coast. There are only a minimal amount of volumes involved.

The business has completed four property sales totaling $800,000 since its first one in January. Dealing exclusively in cryptocurrencies eliminates the need for international purchasers to pay conversion fees and exchange rates, facilitating cross-border transactions. In the last two months, according to Zome, the company has sold four houses in Portugal to buyers from the Netherlands, Canada, and

Portugal. There are nine more transactions in the works. Ways to use a crypto currency

DIRECT PURCHASE

The ability to obtain finance is restricted when investing in U.S. real estate using cryptocurrencies. Although lending platforms are emerging to allow investors to collateralize conventional

PHOTO FROM APPDUPE.COM

down payment loans with cryptocurrency, investors or home buyers cannot utilize cryptocurrencies for a property’s down payment.

Prospective homebuyers can obtain cryptocurrencycollateralized mortgages using platforms like Milo.

There may be particular benefits to buying real estate abroad with cryptocurrencies.

The possession of real estate can grant residency or citizenship status in some nations, such as Montenegro and St. Kitts. With Bitcoin ATMs across the country and no capital gains taxes on all investments, including cryptocurrency, St. Kitts is known for being particularly crypto-friendly.

TOKENISED REAL ESTATE

Tokenised real estate is typically fractionalized, with each token denoting a portion of the property’s ownership.

Fractionalized real estate may resemble the real estate shares sold through conventional crowdfunding platforms and may be more affordable for investors. Like those on the HoneyBricks platform, real estate tokens can also support thriving secondary markets, raising the sector’s overall value.

CRYPTOCURRENCIES THAT EMPHASIZE REAL ESTATE

By purchasing homes with cryptocurrency, investors increase the real estate exposure in their cryptocurrency portfolios.

These purchases, made with coins already in circulation or that will shortly be released, frequently through an ICO (ICO).

USE CRYPTOCURRENCY AS COLLATERAL FOR LOANS AND REAL ESTATE INVESTMENTS.

Those who already own crypto assets can borrow money to make real estate investments. The service, provided by many centralized and decentralized finance companies, allows the posting of crypto as collateral for a new loan.

While decentralized platforms utilize smart contracts to govern the transaction using code, centralized platforms often offer this product with the assistance of a third-party custodian who retains the assets as collateral.

The best cryptocurrencies for investing in real estate are stable or have minimal leverage to reduce the chance of a margin call. A margin call occurs when the loan-to-value ratio deviates from the desired level.

Los Angeles Housing Market Data:

Outlook of the Market, Current Trends and Forecast

By Dolores Golden

The market dynamics are changing and after a seemingly never ending 2-year’s run, the housing boom spurred in large part by the record low rates is now cooling down, thanks to the same rates. But is this a real market correction? We’ll have to wait and see.

Los Angeles is one of the areas that have performed really well in recent history fetching a good return on investment for many investors, indeed so that nop other city in the world has captured the attention of international investors more than the city of Angels. It has been formally declared as the most desirable place to invest globally and according to data from

the Association For International Real Estate Investors (AFIRE), the Los Angeles housing market was one of the fastest growing markets in the world and also the fastest way to gaining massive returns on capital in 2021.

“Los Angeles, Paris, and Boston are the top three global cities where investors would like to increase their investment exposure,” according to the organization’s latest survey.

Many investors feel that the city has unrealize potential and the appreciation of homes and generally the housing market is only beginning. The global attention for the city will continue to

grow and this something that bodes incredibly well for all the parties involved; buyers, sellers, investors and many others. Additionally in light of the past appreciation data and market trends, LA market is poised to benefit the savvy investors for years to come.

The precedent set during the COVID-19 days are still influencing and to some extent affecting the real estate market today. For instance, we thought that after the pandemic had been declared in California, demand would slow down, people would keep to themselves, but the opposite happened. There was pent-up demand due to the low rates. Also many people felt the need to take advantage of the extremely fast appreciating assets and this effect is still being felt today amid rates rising.

OUTLOOK OF THE LOS ANGELES HOUSING MARKET

First of all let us get this question out of the way; is the market cooling down? Certainly. The rising interest rates coupled with inflation has made it unbearable to buy homes today. So naturally, less demand means less pressure on prices.

Interestingly, there has been an increase in the number of active listings in the market and also, home sales have declined moderately. Bidding wars have also ceased as a result of less buyers and more inventory in the market. As such, buyers do not have a hard time on the market.

The median price of homes in Los Angeles peaked in september 2021 and ever since, prices have been moving quite unpredictably. It fell in July 2022 only to rise again 3% in August from the previous year and 1 percent compared to June.

In a nutshell;

• Los Angeles County’s Median price in September 2022 was $966,595

• Los Angeles County’s median price in August 2022 was $978,196,960

• Los Angeles County’s median price in July 2022 was $992,630

• Los Angeles County’s median price in August 2021 was $901,552

Data from C.A.R Resale report for the month of august indicate a dip in sale in all the major regions of California. Additionally, the sales volume collapsed in LA county by 29.1 percent which confirms that the market is moderately cooling down.

When looking at the available inventory for sale, LA has 3.3 months of supply left and generally, a balanced market has about 6 months worth of supply and what is presently available is less than what’s required. That being the case, LA will continue to see upward pressure in prices.

MARKET TRENDS

Looking at the data this year, the market has recorded higher prices compared to last year. According to Realtor.com data show that we are still in the seller’s market and things might stay that way for a while.

On average, tujhe sale to list price ratio was 100% meaning that many homes in this market were selling way above the list price and averagely, homes were staying on the market after 55 days.

Appreciation of real estate in this market has been skewed towards the sellers and the

moderate demand coupled with low inventory count has put an upward pressure on prices which means that there is a high likelihood that homes will continue to appreciate in value in the next 12 months.

The CAR report shows and supports a strong market outlook for the LA market and in addition shows that homes are moving fast. According to the report, the median days on the market for a typical home was 16days but the sale of the existings single family homes were massively down 29 percent from the previous year. Here is a summary of C.A.R’s data;

• The single-family median price went up by 3% YoY to $854,960.

• Last month the median home price was $846,320.

• Last year at this time the median home price was $830,070.

• Single-family sales were down 29.1% YTY but up 1% MTM.

• The condo market also showed less buyer turnout.

• Sales of existing condos were down 27.7% YTY but up 6.4% MTM.

• The median condo price in Los Angele grew by 8.4% YTY to $598,450.

• It was a decline of 1.9% from July’s price of $610,000.

• Last year at this time the median condo price in Los Angeles was $552,000.

If you want a piece of the LA real estate, chances are, you will still pay more than the asking price. But as we progress into the future and given the current conditions, it is possible that home prices will come down and everyone will be onboarded! But we just have to wait and see!

Home Ownership

by Eric Lawrence Frazier MBA

Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own.

Real Estate you own is not like cars that decay over time and you have to replace them.

Real Estate you own is not like clothes that go out of style and you have to buy new ones.

Real Estate you own is not like expensive vacations or experiences that only last a moment in time.

Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable.

Real Estate you own is not like staying at your parents house where you know can’t stay forever.

Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy

Home ownership is the pride of a mother nurturer and the kitchen her domain

Home ownership is the pride of a father provider and protector of his territory and family.

Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned.

Home ownership is the place you build memories that can never be taken from you.

Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand.

Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.

It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor

It’s the birthday parties, and anniversaries in the living room and kitchen.

It’s the back yard barbecue with friends, neighbors and family contentions

it’s the high school and college graduation, and wedding receptions

Its’ the family nights and block parties and the fellowship of family connections

Home ownership

It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire.

It’s more than money saved, gifts recieved and grants obtained

It’s more than the debt you incur to buy it.

It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time.

It’s memories, it’s family, and it’s life that can happen in one place

Until you say it’s time to move.