Are You a Golfer?

Interested in golf, but don’t want a country club?

The Crossings at Carlsbad is a new public golf course that will be opening this summer/ The course has been in the works for some time and the long-awaited opening (17 years) is approaching. With a 23,000 SF clubhouse (with golf shop, bar and restaurant/dining room), the course is located on the north side of Palomar Airport Road, a short distance from the 5.

Stay tuned for more information as the opening gets closer – expected in July 2007.

Exploring North County San Diego Neighborhoods – Aviara

As you are hunting for your new home you might want to consider the area of Aviara in Carlsbad (you’ll notice the bird theme in many of the street names).

Developed in the late 80s and early 90s, this affluent neighborhood is anchored by the Four Seasons Aviara Resort with a fabulous golf course and terrific coastal views of the Batiquitos Lagoon and the ocean.

You can read more about Aviara on my ActiveRain blog – What’s Up Doc?

Exploring North County San Diego Neighborhoods

As you start your home hunting search you will likely begin by seeking out North County San Diego neighborhoods that appeal to you along the coast.

I am starting a series of posts on some of these neighborhoods, with photos, information about housing, things to do, and more.

Here’s a link to my post on ActiveRain about La Costa, in south Carlsbad. I hope you will enjoy it.

Jeff

Today is an Exciting Day

Today is an exciting day….well, at least for me and my first time buyers.

We submitted an offer on the house they love yesterday (after seeing about 30 homes this month), and expect to get a response some time today. They are very excited, and we are hopeful that the sellers will counter and we can work toward a “meeting of the minds” over the weekend and an acceptance. This is what it’s all about. I love this part of the process.

BTW I want to mention a new search engine geared toward buyers – Move.com. But even more exciting…for me…is that I have been asked to contribute regularly to their first time home buyers blog! So stop by and look for me there, too! But don’t worry – I will continue to write here as always, and answer any and all questions.

Have a great weekend!

Covenants, Conditions and Restrictions (CC & Rs)

As a first time buyer here in California, you will most likely run across these if you are buying a home in some sort of subdivision (very common in our area).

CC & Rs come to light during the contingency period after an offer is made, and you must review and accept these restrictions. You can read more about Covenants, Conditions and Restrictions here.

If I can anser any questions about these documents, please let me know.

Are Mello Roos Tax Deductible?

I have recently had a couple of buyers ask are Mello Roos are tax deductible, like property taxes?

The answer is not simple. And since I am NOT a tax professional nor can I give you tax advice, let me provide some information that may help.

If you are not clear on what Mello Roos are, see my previous post on “What are Mello Roos?” Generally if there are Mello Roos fees on a property it will be noted in the MLS. But it’s ALWAYS a good thing to double check when you are going through the due diligence process to make sure if there are or not (just as you want to know what the HOA fees are and what they cover).

Regarding tax deductibility, the answer seems to be yes or no - it depends.

Here is a link to a good summary (Spanish and English) of the issue and an explanation of when they may be deducted and when not.

But as always, check with a tax advisor to get the lowdown. You don’t want to get yourself in trouble with the state department of revenue or the IRS.

Are You Avoiding Making a Buying Decision? Or Afraid?

Buying a house is a huge commitment – financially and emotionally. Likely the biggest decision you will ever make (now if THAT’S not enough pressure…)

It’s often hard for even experienced buyers, but for those of you making this decision for the first time, it can be paralyzing. It is normal to be nervous. I worked with some experienced buyers this weekend who, for one reason or another, didn’t move quickly enough on their dream home last summer and lost it (I was not their agent). Ironically, the house came back on the market a few days due to family circumstances so they have a second chance. But that typically doesn’t happen.

Are you fearful of making the commitment to purchase? Examine the reasons WHY you decided to buy(taxes, equity, build your credit, have a place you can truly call your own, etc.) in the first place. You KNOW why owning a home is important to you.

Are you scared you will make the wrong decision? If you have done your homework, made your list of things that are important (and perhaps necessary), have visited houses and neighborhoods you like and feel comfortable with, gotten pre-approved, made your budget, and are working with a knowledgeable agent, you will be fine. The home that meets your needs and your budget is probably the right home for you. It likely won’t be perfect, but that should not keeop you from making the decision. DON’T miss out because you are anxious about deciding what to do. That means this is important to you, not some frivolous decision.

New Tax Laws

You might want to check out this article on the 10 new tax laws you should know Here is a brief list.

And make sure you consult a tax professional to see if they impact YOU, and if so, how.

• Telephone tax credit
• Multiple direct deposit option
• Energy-saving home improvements
• Alternative fuel auto credit
• Tougher donation rules
• Older philanthropist rules
• Kiddie tax tightened
• Foreign income adjustments
• Rolling over retirement money
• Old deductions are new again

Take a look. It might save YOU some $$$.

Buyers – You Have Hoops to Jump Through

Making the decision to buy a home, starting to search, and getting to the closing table means you have a few hoops to jump through. Remember this – There is always the possibility of a glitch somewhere along the way. Unfortunately, no matter how smoothly a transaction may be going, you never know when something can come along and burst the bubble – you know, Murphy’s Law?

Be prepared for this. While it might not happen, chances are it will, so being prepared mentally will help keep you sane when things don’t go as planned.

Here are some hoops (to read the detailed post, visit my blog, “What’s Up Doc?” on ActiveRain):

• Pre-approval – it’s in your best interest to do this right away so you can be in control. Knowledge is power.
• Finding the “right” agent to help you - Get a referral if you can, but make sure you work with someone you trust, who provides YOU with the information you need, and who clearly has YOUR interests at heart.
• Offer – Get the info you need to make an informed decision. Again, knowledge is power.  Know your limits (your budget). Be prepared to negotiate, and expect that you will get a counteroffer. Make sure you understand the terms and conditions of the contract before you sign – your agent is the expert.
• Home Inspection – a prudent thing to do – not mandatory, but you want to know what you are buying (no home is perfect). If you request repairs but can’t reach agreement with the seller, you can decide to walk away. But understand under what conditions you can do this so your deposit is not at risk.
• Contingency Period - you will likely have documents to review and approve as part of the transaction.  Keep ALL due dates in mind. Retain copies of everything you review and sign.
• Loan Commitment – you must obtain a loan commitment from the bank, based on the appraisal and the full financial file (unless you are buying for cash). Understand all the requirements of your lender. Make sure the process moves along and you can meet the deadline.
• Final Walk-through – this is your opportunity before closing to check on the home and make sure it is as it was when you made the offer.
• Closing - Read everything carefully and make sure all the information is correct (loan rate, payments, fees; title and other documents; names; is everyone on the deed who should be?; dates; money (especially the math); social security numbers, etc.)

Keep in mind your agent is there to assist YOU. And remember – there are no dumb questions.

Avoiding a Short Sale

This is NOT a suggestion that you not consider a short sale property for purchase. I think many of them can be a good deal for you, if you do your due diligence, the home is right for you, and it fits your budget.

This is about avoiding getting yourself into a short sale situation. This can happen fairly easily. If you purchase a home with 100% financing, there is no equity in the home. Your mortgage balance IS the purchase price. Over time, you will build up equity, especially if the value appreicates. But this can take a while, especially since most of your payment will be interest, not principal, especially in the first few years.

The bigger issue is the interest only mortgage. This is often offered as a way to get buyers into a home with the lowest payment, especially in a high-priced area. The risk is that you ARE NOT paying down the mortage balance, unless you make optional payments over time. And usually people who get into these types of loans are not in a good position to make additional payments.

The problem arises if you need to sell (especially within a couple of years, perhaps). Given the typical home incurs about a 7-8% cost to sell (commissions and closing costs) you can find yourself in a short sale situation (i.e., owing more than the house is worth) unless appreciation is significant (i.e., more than 7-8% in the time you are there).

Be careful when looking into loans and deciding what program to use, and what you can afford. Short sales are bad for your credit!