Rate increase: NBD

Media are so invested in ‘reporting’ sensational news that often, stories are made out of nothing. For example, all of the major networks this week have reported a “hike” in interest rates – as if that was news worthy.

First of all, a “hike” in the woods is typically a big deal. A “hike”can also refer to down hill movement. So that choice of words is used out of the media’s numb mindset of “breaking news” and “shocking developments“. A more appropriate word to describe an interest rate increase would be “adjustment” as in, “interest rate adjustment“. Our speech patterns however, have gotten lazier so saying a 3-syllable word like “adjustment” might be too much work for media-types.

Consider the truth about an interest rate increase. If you get a home loan of $424,000 at 4.5% interest rate for a 30 yr. loan, your monthly principle and interest payment will be $2,085.83. Last month, that loan might have only cost 4.25% with a payment of $2,085.83. The total difference in this “shocking development” is $62.50/mth. That’s it. And, that slight upward adjustment translates into $178 more gross pay per month needed to qualify for the 4.5% loan. No big deal (NBD) – right?

Having said this, in a season of increasing interest rates, there is no value in waiting for better rates. The slight adjustment in payments pails in comparison to typical appreciation of the home’s value. Just a 5% increase in our example home’s value would be $2,208/mth (annualized). So, don’t procrastinate buying or refinancing a home rationalizing to yourself,  “I’ll wait until the rates go back down”. 

Coming Soon, Hollister 4 bd. 2 bth.

In about 2 weeks 2141 Calistoga Dr., Hollister, will go on the open market for sale.  When it does this 1,820 sq. ff. home won’t last long.  We’re pricing 003it to sell quickly.

This nice house will be freshly painted, new carpeting, and a refinished hardwood floor entry.  Unlike the new homes being built, the home sits on a raised foundation, has a remarkable view of the acres immediately behind it, the foothills beyond. and reasonable side yard space. Likewise, 2141 Calistoga has a cozy fireplace in the family room – many of the new homes near hear don’t have a fireplace.

If you would like to see this nice house before the open public does, text, email or call me.  I will arrange a tour of it for you.

Rare Find: Willow Glen Home for Sale

1817 Comstock Ln 004To find a home in the “Doerr Park” area of Willow Glen (San Jose, CA) for sale is a rare event.  Here you go: “Coming Soon” : 1817 Comstock Lane has 6 bedrooms and 3.5 baths in nearly 2.600 sq. ft of living space. There is marble, tile, granite, recessed lighting, crown molding, real wood floors, finished garage floor and too many other comfortable features to list.

This location is very near world renowned employers and the commute is minimal.

Then, when you consider that this home is in the “Cambrian School District” and that ownership of this home provides membership in the Doerr Park recreational facilities, you have a rare find.

We may be going on the open market in the next few weeks. Text, email or call me for more details.

Solar Panels vs. Resale of The Home

Here are 5 questions you want to explore BEFORE you decide to have solar panels put on your roof:

1.  How much will you save in your monthly electric bill over, say 5 years by installing solar?  Consider this total vs. the typical 20 yr loan offered for purchase of a system.

2.  Will the remaining balance on your solar purchase/lease be transferable when you go to sell your home?

3.  IF it is, will it be a ‘seller’s market’ (more buyers than homes for sale)? Or, will it be a ‘buyer’s market’ (plenty of homes to choose from vs. the fewer number of buyers)?

4.  Considering the speed of technological advancements, when you go to sell your home in the future, will your solar system be antiquated?

5.  Who is responsible for the integrity of the roof where the solar panels are installed?  For how long?

This year I have had to inform more than one home owner that their solar system loan/lease balance will have to be paid for by them.  Buyers seem to consider the value of a solar system equal to about 2 years worth of electric bill savings.  In my last 2 listings with solar panels, the sellers had to pay their remaining solar loan balance of $18,000 and $22,000 respectfully.

Do you know of a happier solar-seller situation?  Please share it.

 

Large Turn-key Home, Pool & Solar – Open House

059A0178I’m059A0203 hosting an Open House on the gorgeous home.  Watch this VIDEO Tour of it and you will see what I mean. Open Sat..7/30/16 from 2-4.

4 large bedrooms, 2.5 baths, 2,352 sq. foot of living space and a refreshing pool/spa in the backyard.

Located in ‘Blossom Valley’ 4475 Park Sommers Way, San Jose, there are so many wonderful venues. Again, they are mentioned in the VIDEO Tour.

037Why not stop by for some chocolate chip cookies and see for yourself how refreshed this wonderful home is.

Or, text, email or call me for your own, personal tour.

Great Starter/Investment Home, San Jose

Since “location” has a significant influence on the value of a home, consider 1592 Sabina Way in San Jose, CA: 059A9975located just a few blocks from Hwy 85 and centered between Almaden Expressway and Camden you can get anywhere quickly. In 2.5 mi. you can be at the popular Butcher Dog Park, Almaden Fashion Plaza and Costco center.  The famous “Santa Row” is an easy light rail ride away.  Apple Cupertino, San Jose International Airport and Westfield Shopping Complex are 15 minutes away.

This VIDEO Tour shows the 1,100 sq. ft. 3 bth home well and that there has been a lot of custom wood work (base board, door frames, wain coating and chairback railing.  The hardwood floors and be brought back to a beautiful shine.  In the back yard there 9 different fruit trees a 10 x 12 shed with its own A/C unit, TV & stereo (a true ‘man’s cave’).  And all of this on a quiet, inner street.

Text, email or call me for more details.

Great Home in San Juan Bautista!

If you want to be close to all of the important places but live “far” from it all – this home is calling you!  Watch this VIDEO Tour of it here.DSCN2503

352 Orchard Hill Road, in the rolling foothills of historic San Juan Bautista, is one of just 12 ranchetts on this lane.  It is less than 5 minutes from Hwy 101 and 5 minutes from San Juan Bautista’s boutique shops and restaurants, historical sites, elementary and high school. From here it is only 15 minutes to Gilroy’s Premium Outlet Center and, CalTrain – for an easy commute.  The beaches and Monterey are just 30 minutes in the other direction.

Out each window of this single story, 2,500 sq. ft. home with 3 bedrooms 2 baths and 2 – 1/2 baths, with separate dining, family and living rooms, are spectacular views!  Even the extra wide, 3 car garage has plenty of windows to capture the views and flood it with natural light.

When you step inside 352 Orchard Hill Rd. you are standing on colorful, wood finish tile, and looking up at a cathedral ceiling, beautiful chandelier and crown molding. Leaving the foyer the remarkable kitchen becomes the favorite spot. Custom cabinetry has under cabinet lighting which shins down on beautiful slab granite counter tops; the commercial, stainless steel 6 burner gas stove and double ovens are one of the two center pieces.  The other is the copper apron sink and faucets.

Both the family and living rooms have their own raised fireplace.  While both have coved ceilings the living room has craftsman molding around the highest reach of its ceiling.

The guest bathroom has a sky light and the master suite bathroom has a jetted, sunken tub and, again remarkable views.  The master suite has a tastefully finished brick backdrop to its own “fireplace”.  A short stroll from the master suite takes you the sunken, hot tub and its octagon building.

Rather than go on, why not text, email or call me for your own tour of this remarkable place.

Available in Ridgemark Golf & Country Club

Lrg PatioHere is your chance to own a home in the remarkable, “Ridgemark Golf and Country Club”.

As you will see in this VIDEO Tour, 50 Florence Ct., Hollister is just one of 5 homes on a private court within the gated golf and tennis community.

This home sits on a 10,700 sq. ft. lot with wide side yards for behind-the-fence-storage of your RV, boat and toys.  It has 1,945 sq. ft. of living space with 3 bedrooms and 2.5 baths.

Many features of this home have recently been refreshed: there is a new roof; the exterior was recently painted; the master suite has new carpet; all of the appliances are just 2 years old.

I love the new manufactured hardwood floor in the kitchen leading up to the brick fireplace and the private patio just outside the dining area.  The great room also has it’s own fireplace, floor to ceiling windows for natural light and there is another private patio just out side this cozy room.  Each room has exposed beam ceilings.  In addition to the new forced air heater, there are 4 heaters for individual room comfort.

Outside the master bathroom is a sparkling hot tub.  And then, there is the massive backyard.

Since Ridgemark is just 40 miles from San Jose, Monterey and the beaches it is ideally located for an easy commute and vacation-time when you are home.

Text, email or call me for your own personal tour.  First Open House: 4/16/16, 1-4 PM.

 

Do We Have Enough Homes?

On a national scale the enclosed article in Yahoo Finance points to the 6 reasons why there are NOT enough homes for prospective buyers.

Of course housing markets are typically influenced first by the neighborhood, then community, and finally by their region.  In ‘South County’ (Morgan Hill, Gilroy, Hollister, San Juan Bautista, CA) for example, there is a shortage of homes to choose from and, therefore, home values seem to be forever increasing.  12-16% annual appreciation is pretty typical.

In Hollister we are seeing a slight slow down in the appreciation pace for resale homes this year due to the significant number of new homes being built.  In 2015 the average single family residence value increased 12.6%.  Morgan Hill and Gilroy’s appreciation for the same period were: 15.5 and 16.9% respectfully. Hollister’s new home construction in 2015 affected its appreciation which, normally is on par or, even higher, than both Morgan Hill and Gilroy, CA.

So the proverbial question: “Is your glass half full, or, half empty?”

Home Buyers: Now’s the Time

I have been in the housing business so long that I’ve been through several outgoing, 2 term presidents, where their party was in control of both houses.  Typically, at the beginning of the election year, interest rates and gas prices begin to rise.  They peak during 3rd. quarter and begin to improve toward the national election in November.  (Watch, as soon as I say this, we’ll see an aberration in 2016.)

However, this article may well be a signal that the trend will repeat itself in the coming months.

Prospective homeowners would be wise to buy their home as soon as they can.  Sales prices in the South County (San Jose, Morgan Hill, Gilroy, Hollister, San Juan Bautista, CA) begin to rise more rapidly at the end of March and peak in July.  The interest rates will probably inch their way upward during this same time frame.

And look at the impact of a 1.0% rise in interest rates*:  A $400,000 home with 10% down to a new, $360,000 30 yr. fixed rate loan will see a $214 higher monthly principle and interest; a corresponding increase in the qualifying income needed by $642/mth.  The closing costs will also be slightly impacted.

If you are thinking of buying a home, now will be the lease expensive time for South County homes for the next year or more.

*4.0% to 5.0%