35851 Beach Road One-of-a-kind stunning home. Custom Cape Cod-style oceanfront estate on two beachfront lots. A rare opportunity to own in the guard-gated Beach Road community. End of road location and very private. Large decks offer panoramic whitewater views stretching from the San Clemente Pier to Dana Point Harbor. Gorgeous seafront courtyard with stone fireplace, lush landscape, sandy fire pit lounging area, built-in barbeque and glass enclosure. Featuring a main floor movie theater, wine cellar, four interior and two outdoor fireplaces, remote control window coverings, hardwood flooring, wood beam ceilings, surround sound, custom paint and lighting, paneled wainscoting and an alarm security system. Chef’s gourmet kitchen with spacious breakfast nook and fireplace, extended granite and marble island, stainless steel appliances and white panel built-ins. Family room accommodates separate full wet bar with extending NanaWall design folding doors. The master retreat is breathtaking with an extended view deck, marble set grand master bath, fireplace and private study area. • Four bedrooms, four-and-one-half baths • Approximately 4,032 square feet • Approximately 10,599 square foot lot • Three-car garage • Situated on two beachfront lots • Guard-gated community • Oceanfront estate with private beach • Custom movie theater and wine cellar
www.35851BeachRd.com
Real Estate
ExpErt’s CornEr SHOULD I REFINANCE? Say Hello To Some Of The Best Rates In History The question I get all the time is should I refinance now or wait for a lower rate? In today’s economy things are changing very quickly and you can chase rates for a while but you don’t want to miss the boat. We’re in historic lows so I would advise all readers to determine a rate that makes sense and once rates hit that level, lock, close, and move on. Rates could go lower, but there is much more room above for rates to go higher then below for rates to go lower. And keep in mind, LIFE happens, things can change, you could simply be late on 1 payment to a credit card and your credit could fall and now you don’t qualify. Just two years ago rates where 1% higher then they are now, 3 years ago they were 2% higher. So, as you can see, things can move quickly. Many readers are hoping to lock at the lowest point of rates, but here is the problem with that strategy: No one will know what the lowest rate will be until rates move higher! I was having a conversation with one of my clients the other day, he has a rate in the upper 5’s and due to credit he doesn’t qualify for the best rates but still can get a rate which was lowering his mortgage payment by $220 a month, almost 10%. Even if rates got a .25% better for him it would save him an additional $55 per month, an additional 2% reduction in payment. So, I asked him this question. If your boss approached you today and said he would give you a 10% pay hike, would you tell him that you want to hold off until you receive a 12% hike? I don’t thing anyone reading this would. So, what this client must consider is should he continue to pay $220 more then he has to each month to hope for a better rate. Rates may be lower 6 months from today but if he waited 6 months he would have over paid by $1,320 during that time and maybe secured a lower rate, OR maybe NOT. And even in time if he got a .50% lower rate, it could take several years before he recouped what he lost with the higher payment all those months. Life happens, his credit could suffer, could lose his job, etc… I have had clients in the past who wanted to wait for “the lowest rate”, but then life happened to them and they couldn’t refinance. Maybe the property value went lower due to foreclosures in there area, maybe due to a sagging economy their employer had to cut their position or reduce commissions/bonuses, etc. There will always be a risk with waiting, with risk can come reward or failure. As mentioned above, when a rate makes sense, and is beneficial overall for your needs (lower rate or payment, longer term, etc), grab it and move on. Rates have only been this low 2 out of the last 39 years, it doesn’t get a whole lot better than this. You’re safe at that point, once locked the rate can’t go up. If rates take a big dive again you can capitalize on that as well, you’re in a good position all the way around.
Caryn SChultz 949.276.4124 | www.pointbrealestateservices.net CA DRE Brokers License #01491016 | NMLS #271319
SHORT SALES
Summarized
By now, anyone who even casually follows the real estate market knows about short sales. In simple terms, a short sale is when a property sells for less than what is owed against it (the mortgage amount). This occurs as home values decline. Following are the four most common questions people have regarding short sales. CAN THE LENDER PURSUE ME FOR THE DEFICIENCY ON THE LOAN? Both Federal and State governments have instituted safeguards for borrowers who have innocently found themselves in this situation. In most cases, it is disallowed by law for the lender to pursue the borrower for the shortfall. In California, the laws have been expanded (as of July 15, 2011) to even include junior lien holders, refinances and income properties. Exceptions to this protection include commercial properties and fraud. WILL I HAVE INCOME TAX LIABILITY? Again, lawmakers have imposed temporary protections for borrowers who are in danger of losing their homes. One major component is with regard to the issuance of a 1099 for the deficiency. In the past, the deficiency would have been considered regular income and the borrower (or home-seller) would have to pay income tax on this amount. For now, there is a moratorium on this requirement if the property being sold is the borrower’s primary residence (other restrictions apply). HOW WILL MY CREDIT SCORES BE AFFECTED AND CAN I BUY ANOTHER HOME IN THE FUTURE? If you stay current with all your other obligations, your credit will hold up better. Also, if the short sale is completed quickly, there will be fewer late charges reported to the credit bureaus, reducing the impact on your overall scores. For the most part, we are seeing people’s credit scores bounce back quickly, provided they are paying all their other bills on time and their credit cards are not maxed out. There is no specific reporting by credit agencies for a “short sale.” HOW LONG WILL THE SHORT SALE TAKE? Some banks are very quick, while others still take many months. It also depends on if you have one loan or two (or three or four...). The agent who compiles and submits your package, and negotiates on your behalf is a huge factor. We have closed some shorts sales in as little as one month, while some go on for much longer. On average, we are seeing 60 – 90 days for approval. CONCLUSION More than with any other real estate transaction, experience counts. Only select an agent who is well-versed in these complex and very serious matters. The results may impact you for a long time. Having dealt with hundreds of these transactions, we at the Csira Group are always available for a free, confidential consultation. The Csira Group 1088 no. Coast Hwy • Laguna Beach, CA 92651 www.CsiraGroup.com • 949.509.7700
California
AFFORDABILITY INDEX
TOP 10 CREDIT
“Don’ts”
45 39
40
34
PERCENTAGE
35 30 25
27
25 22
20 15
Many are taking advantage of interest rates at historic lows, either by restructuring debt with a refinance or purchasing property. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that borrowers must be aware of when applying for a loan. Here are my top 10 credit don’ts during the loan process that will avoid a red flag to be raised by the scoring system. This can help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.
11
10 5 0 1985
1990
1995
2000
2005
2010
YEAR
Jeremy Conrad Realtor/Broker 949.697.0721 Jconrad@ConradRealEstate.com
Bill Conrad Realtor/Broker 949.285.5797 BillC@ConradRealEstate.com
“Proudly Serving orange County Since 1963” Please visit our website for Featured Listings, Foreclosure Radar, Easiliy Search All Homes in MLS, and Much More!!
www.Conradrealestate.com
1
Don’t make any large purchases, car, furniture, appliances
2
Don’t apply for new credit of any kind
3
Don’t pay off collections or charge offs
4
Don’t max out or over charge on your credit card accounts
5
Don’t consolidate your debt onto 1 or 2 credit cards, no balance transfers
6
Don’t close credit card accounts
7
Don’t pay any trade line late by even one day!
8
Don’t change or open bank accounts
9
Don’t dispute anything on your credit report
10 Don’t lose contact with your mortgage and real estate professionals
Caryn SChultz 949.276.4124 | www.pointbrealestateservices.net CA DRE Brokers License #01491016 | NMLS #271319
California Median Sales Price SINGLE FAMILY RESIDENCE 600,000 550,000
522,670
500,000 450,000 PRICE
400,000 350,000
303,010
300,000 241,350
250,000 193,770
200,000 150,000
119,860 99,550
100,000 50,000
178,160
24,640 41,600
There’s nothing more exciting than opening the door to your first new home and knowing that it’s actually yours! No landlord bothering you about every little thing. No silly rules about what colors you can paint or what renovations you want to make. And while this is a great feeling, and the pride you feel is natural and well deserved, don’t allow yourself to get too carried away with your newfound freedom. You worked hard to earn this opportunity and you don’t want to potentially jeopardize your investment by letting your emotions get the better of you. Take a few moments to think about the practical side of home ownership before you start making any major changes or renovations.
Get properly insured Before you decide to build or tear down anything, be sure that you are properly insured. Even if you enjoyed the full $8,000 tax credit for firsttime home buyers (or the full $6,500 tax credit now available to qualified “repeat” buyers), sit down with your insurance provider and make sure you’re covered on all fronts before you do anything. It doesn’t make sense to spend your tax money upgrading your home if you’re not protected in advance.
YEAR
Maintenance before makeover It’s true that you no longer have a landlord looking over your shoulder for every little thing. But, you also don’t have a landlord to turn to if something should go wrong. So, before you think about beautifying your new home, think first about fortifying it. Invest in necessary repairs first and avoid surprises down the road.
Bill Conrad Realtor/Broker 949.285.5797 BillC@ConradRealEstate.com
Go with the pros When the time does comes to make those changes, be sure to hire the best, most qualified people. This doesn’t mean you can’t paint or do the little things that can make a big difference. But when it comes to the big stuff, hire the pros for the best results and to avoid injury. Remember, your new home is an investment and it deserves the highest care and attention you can give it.
0 1970 1975 1980 1985 1990 1995 2000 2005 2010
Jeremy Conrad Realtor/Broker 949.697.0721 Jconrad@ConradRealEstate.com
PRACTICAL ADVICE for New Homeowners
“Proudly Serving orange County Since 1963” Please visit our website for Featured Listings, Foreclosure Radar, Easiliy Search All Homes in MLS, and Much More!!
www.Conradrealestate.com
Caryn SChultz 949.276.4124 | www.pointbrealestateservices.net CA DRE Brokers License #01491016 | NMLS #271319