Fullerton real estate is a booming market, so much so that the inventory or selection of homes for salehas fallen to only 282 as of today. This number is comprised of 209 single family homes and a mere 73 condominiums to choose from. By way of comparison, we have to note the the high was 687 during last year and the low was around 230 during the hot market. This is an amazing statistic - are we headed back to a sellers market? Maybe so.
Check for comparable neighborhood prices at www.foustonline.com, Home searches will help you to see what the market is saying. Also review neighborhoods to get a comparison of the areas.
OK, this is one of my favorite questions. The reason I like it so much is that it gives me a chance to "preach" about the way the world should work (according to Bob), at least about how property ownership should work.
Refinancing a home is a serious decision, not to be taken lightly or often. Our goal should be to get the home paid off, and refinancing can both help and hinder this process. In my opinion the best and most valid reason for refinancing a home loan is to reduce the total interest paid and shorten the time of the loan. A good example of this is to refinance into a 15 year fixed rate loan, during a time when interest rates have fallen. If you are coming from a 30 year loan this will increase the monthly payment (many times not your immediate goal) but "wow" the end goal of a paid off loan will really be advanced. What a great plan if you can do it.
More commonly though, the move from a 30 year term to a 15 year term, is just not palatable. In this case the refinancing may be more of a monthly cash flow move than a loan term adjustment. As interest rates decline there is real incentive to change the loan to capture the new and lower rates (thereby saving monthly payment costs). All situations are different, but on average you will need to achieve at least a 1% point reduction in order to have things make sense. Why? - Loan costs, that why. A refinance is not free, it may be presented as free or no cost by some, but in reality the costs are either upfront or are buried in longer terms or increasing the balance on the loan. Fees are also incurred with the title change, re-recording of the trust deed, escrow fees, notary fees, and other fees that I have left out. Just remember - loans are not free - people get paid from somewhere. Most calculations will show that the costs to refinance are not recovered until about 4 years of reduced interest rate payments. That usually means break even is about 4 year down the road from the refinance.
I see many instances where the income of a home owner changes so drastically that lowering the monthly payments becomes an immediate necessity. OK, I can buy into that. If conditions require it, then a refinance may be in order.
Now here is where I start "preaching" - If borrowers are refinancing in order to reduce payments and use the extra money to buy cars or "toys", then I have real heartburn. Our homes are not a source of funds for us to siphon off - they are where we live, where we raise our families, and where we can feel safe and secure. The mental security of a "paid off" home is not to be underestimated. The security and the peace of mind are awesome.
About the Author: Bob Foust is the chief executive for the FOUST Team at C21 Discovery; one of the top-selling real estate teams in Southern California. He specializes in Orange and Los Angeles Counties and operates one of the area's most informative real estate websites. To contact him or learn more about real estate in Orange County, please visit www.FOUSTonline.com.
Fullerton real estate must be leading the way - not necessarily the right way. To buy a REO home now in Fullerton requires multiple bids by many buyers, not what we really want. The key word we are looking for is "STABILITY" -- not panic buying and not zero buying. We just keep supporting the extremes here in Fullerton. I know it is a great place, but "gee", can we get some normal market conditions please? Buyers are back in the market, and sure some are bargain hunting, but let's see if we can just settle down and get back to a real normal condition - Have not seen that for a long time (the good old days).
A user friendly Quick home search is provided at www.foustonline.com and is a top performing tool for buyers and sellers. A current, relevant, and "must read" Real estate blog is also provided at www.foustonline.blogspot.com
As of just today the REO bank owned homes in Fullerton are quickly disappearing. At this time we only have 22 homes in all of Fullerton that are bank owned and on the market. Of these , only 8 are single family residences, while the remaining 14 are all condos. This is an amazing turn of events, we were deluged with them (REO's) for months - but now they are gone. Bargain hunters have scooped them up like "hotcakes" -- currently we are trying to offer on them, only to find ourselves in the multiple bid process, not what the bargain hunters want to do. We are reading this situation as at least a pause in the market slide, and in fact may be the bottom. At least that is the case here in Fullerton real estate.
All cash buyers appear to have a great advantage in this market. Yes the Sellers seem to prefer all cash, thinking that it will go easily, but they can be very wrong. All cash buyers in many instances are bidding on more than one property at a time. We have seen many all cash buyers drop out very early in the escrow process, just because a better choice became available. Here is where the conventional buyer can shine. Our advise is to try to make your offers enticing for the seller, so that if they choose the all cash offer ahead of yours, you finish in 2nd place. Now when the deal goes sour for the all cash offer, then you are ready to step in. But how do you get in such a position? First, show good solid financial, with two or more loan company approvals to show that lots of people will loan to you). Second, do not ask for the seller to pay your closing costs (they really don't like that). Third, is to make sure your agent stays in contact with the other agent. Personal relationships will go a long way when the escrow falls out, then the other agent may just call you, first and only. That is the goal.
A user friendly Quick home search is provided at www.foustonline.com and is a top performing tool for buyers and sellers. A current, relevant, and "must read" Real estate blog is also provided at www.foustonline.blogspot.com
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