Los Angeles Real Estate

There's quite a shakeup in the San Fernando Valley mortgage industry that is happening right now due to the number of defaults on recent loans. Many underwriters are closing their doors or tightening their requirements. What it means to the industry is that first time buyers looking for 100% financing will now have to have about $25,000 minimum to get into their first home. With the first time buyers being reduced in numbers, the entry level homes will be harder to sell...and inventories will most likely rise...and move up homes at the next tier of pricing will most likely sit on the market longer or have to be reduced drastically. If you are a first time buyer in the San Fernando Valley, you might want to lock in your loans immediately. If you are a San Fernando Valley home seller, you might want to implement a price adjustment sooner than later so you won't be competing with the expected increase in inventory. For more information on what's happening in the industry, you can visit this link on CNN

http://money.cnn.com/2007/02/28/magazines/fortune/subprime.fortune/index.htm?postversion=2007030117

San Fernando Valley Home Warranty Information

A home warranty pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home. Warranties can be purchased by either the buyer or seller. When the seller is paying for the warranty, it is usually paid for and goes into effect at closing. The coverage period is normally one year. There are a lot of companies offering home warranties and coverage of individual policies can vary widely. Usually, central heating and air conditioning systems, electrical, plumbing and major appliances are covered. It's important that you read the policy closely and understand what is and is not covered.  The cost for a one year home warranty typically runs between $300 and $600, depending on the size of the home and the specific types of coverage.  In addition to the policy premium, there is normally a deductible of $50 - $75 to pay when making a repair claim.  

There are some very good reasons to pay for a home warranty when selling your home.  Providing a warranty can help set your home apart from the competition. Buyers will appreciate having a warranty and will feel more comfortable about buying your home without worrying about hidden problems. Providing a warranty can even result in a higher price, offsetting the cost.  Certainly it can make it easier for a buyer to make an offer. These assets make the home warranty an excellent marketing tool.  

In addition to marketing advantages, you could also avoid getting sued down the road.  When a major appliance, heating or air conditioning system goes bad shortly after a home is sold, it's not uncommon for the buyer to blame the seller. Unfortunately, this can and does lead to lawsuits. Providing a home warranty with the sale of your home can go a long way towards preventing these types of suits. In some areas where lawsuits are particularly common, almost all homes are sold with a home warranty included.  

If you are buying a home and it doesn't come with a warranty, you may want to consider paying for one yourself. The first year after buying a home is a time when most people don't have a lot of cash on hand to cover problems that might arise. Having a one year home warranty in place can provide peace of mind during this time, and if something does break down, could really save your budget.        

Determining whether a home improvement will add value to your San Fernando Valley home can be tricky. There are many factors to consider. Some factors are tangible like the cost of making the improvement. Other factors are less tangible and harder to quantify, like the improved quality of life the home improvement brings you and your family.

When making a dollars and cents evaluation, first consider the costs involved in making a home improvement. Be sure to factor in the costs for materials, labor, building plans, building permits and any changes to your
homeowner's insurance.

Then consider how these improvements will impact the value of your San Fernando Valley home positively or negatively. (Not all home improvements add value. Some can even decrease the value of your home.) Remember, your return on investment can vary as the real estate market changes. And the value of a home is not always reflected by the selling price. (In a "seller's market" your home's value may be lower than the home's selling price.)

Remodeling Online (http://www.remodeling.hw.net/pages/remodelingonline/index.nsp?) evaluated 15 home improvements in their annual Cost vs. Value Report. This report analyzes the percentage of cost returned for a home improvement when comparing cost to construct versus added resale value. Of the 15 improvements evaluated in the 2003 report, only a deck addition had a positive return (104.2%).

Improvements with returns in the 92.6% 98.1% range in 2003 included: siding replacement (98.1%); bathroom addition, mid-range (95%); attic bedroom (92.8%); and bathroom remodel, upscale (92.6%). These evaluations were conducted in what is considered a seller's market.

It may be that the money you plan to invest in a home improvement would be better spent toward a new house. Selling your current house and buying a new home with the features and amenities you desire may actually save you money. I can help you research the local real estate market to help you make this decision, give me a call at (818) 488-8038 or contact me by e­mail at paul@aragonestates.com to schedule a time for us to meet that is
convenient for you.