Develop an Emotional Connection

The market is always changing. I'm here to help you make sense of everything that's happening in the real estate world. A doom and gloom attitude to all the changes will only ensure you'll miss out on new opportunities when it comes to homeownership and real estate investing. You can have what you want. Now. 

 

December - Ponder this, "California dreamin' on such a winter's day." — The Mamas & The Papas - While the world dreams of living in our sunshine we are here already. I’m so happy that this is home for me, and grateful for the sun that greets me almost every day here. 

 

As always, I am here for you, your family, and friends.

 

Your Forever Agent, 

 

Hope Leitner, CRS,

CalDRE #01874321

Hope Opens Doors

 

HOMEOWNERS, INVESTORS, MORTGAGE LENDING, TRENDS   How to Convert Your Home into an Investment Property     Many homeowners who need to make a move may be reluctant to sell their homes because they have a low interest rate and will pay a much higher price for their next home, as well as a higher interest rate in today’s market.   Renting out an existing home and buying another property is an attractive option—if you play fairly with your lender. Some purchase loans aren’t available to investors—such as FHA and VA-guaranteed loans—and are only for owner-occupants, while investment property loans require larger down payments and charge higher interest rates. Trying to buy a property while hiding the fact that it’s a rental could result in your loan being called due.   You can buy a home with owner-occupied financing and turn your home into a rental with little risk of penalty if you do the following:   Occupy the home for at least 12 months, as agreed in the loan documents. Frequent applications for new owner-occupied financing every few months will make underwriters suspicious.   Use the same mailing address as the property.   Be prepared for lender scrutiny with a logical explanation, such as a job change, or moving closer to family, if you have other, nicer properties and seek owner-occupied financing for a lesser quality home.   Don’t refinance your owner-occupied home to pull out equity to use as a down payment on the next home and then finance your next home as an owner-occupant unless you intend to actually occupy the home for 12 months or more.     TRENDS, HOMEBUYERS, FINANCE   Shifting Tides: Market Dynamics Ignite a Surge in New Home Interest     Lack of supply in the resale market is favorably impacting new home sales. In September 2023, the pace of new home sales was up 33.9% year over year to a seasonally-adjusted rate of 759,00 units. The median new home sale price in September was $418,800, down 12.3% compared to a year ago, largely due to builder incentives and a shift toward building slightly smaller homes. Meanwhile, existing, or pre-owned home sales sank 15.4% from the previous year, yet existing home prices rose slightly to $394,300.   New home construction is typically more expensive than existing homes of similar size, condition, and amenities, but homebuyers are flocking to new homes because the costs and benefits between existing homes and new homes has narrowed. According to NewHomeSource.com, new home buyers get numerous benefits, including:    The ability to choose the finishes, fixtures and decor A “honeymoon” period when everything in the house is brand new Builder-supplied warranties for finishes, systems and structure Energy-efficient heating, ventilation, cooling and appliances that will save you money The latest in architecture, design, floorplans, construction techniques, and in-home automation.   In the overheated market of the past few years, shopping for a home has become wearisome to homebuyers, including some buyers’ remorse caused by unexpected issues with the home, too much maintenance and upkeep, and too many compromises simply to get into a home.   Ask your Berkshire Hathaway HomeServices network professional to show you new homes in your area. Don’t visit builders or model homes without your agent, so they can negotiate for you.

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