how can i find a good deal on a house in southern california?

Question

i'm also a first time buyer. where can i get financial help?

Answer 1

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.html

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How to value a property during market downturn?

Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.

Let's use following example:

Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.

If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.

In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.

It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.

Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.

It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.

One may ask, why is there a discrepancy between two perspectives of the buyer and owner?

The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.

Answer 2

If you are a first time buyer do your homework, this is the most expensive and important purchase you'll ever make. See Suze Orman's book regarding home buying too.

Financing go online to Lendingtree.com. Make sure you have good credit. Look at the place where you can figure your ratios on the site I mentioned. Your debts vs your income is important, so is how much you have to put down.

Right now you should be able to find some deals with the market being so shaky, you may want to look around to see what is available and hang on for a couple more months when people are really hungry for buyers.

Chose an agent carefully. Ask around to see who others have used and get their take on what that agent did for them. You want a buyers agent--someone that will work for and with you in finding what you want. Make a list of what you want in a home and then ask the agent to give you the listings that have those things along with the maximum price you can afford.

Do not get an ARM loan, you want a fixed rate. Do get inspections to ensure the house is in good shape. And make sure your contract when you make an offer is contingent on those inspections and any work to be done is taken care of before the close of escrow. Check out the neighborhood carefully, ask neighbors about it. Good Luck!

Answer 3

a million. understand your marketplace interior out (alongside with marketplace traits), or you would be the subsequent foreclosures statistic. 2. do not even think of approximately figuring out to purchase for greater advantageous than 70% of the After fix value. 3. Have 6-8 months of money reserves accessible for containing costs on my own. 4. examine mutually with your broking provider for the place of work rules in this. If an agent sells their very own residence, the E/O coverage usually won't conceal that transaction. 5. Use your Dad's expertise and it seems which you will possibly not have the needed adventure / expertise to wisely confirm fix costs.

Answer 4

Best deals around $200k are in the high desert north of Palm Springs. Morongo Valley, Yucca Valley, and Joshua Tree. Go to www.realtor.com to check some out. Then after you make an offer apply @ www.Lendingtree.com.

Answer 5

First visit my site and start searching for home
http://www.homes.la

But first your going to need to be pre-approved. Why? Because you want to make sure you can afford the homes your looking at.

Contact: Ken Sisson [phone] Chase Home Lending

As far as choosing a real estate agent, call me:
Richard Johnston, REMAX 818-730-4128
http://www.estates.la

I've got a 2 bedroom, 2bath condo in Encino. You can view the real estate show here: http://www.realestateshows.com/90451

Let me know.

Answer 6

Try this web site, I see there are some realtors in CA, I would think they could help or get you to the right people.


http://realestateagentlive.com/index.php

Answer 7

don't live in california, too pricey, too hot, too many earthquakes. live in texas, good deals and good scenery!

Answer 8

look for forclosure or unclaimed houses.