The San Mateo community

But while being a business owner is a great deal of work, it is part of the American dream. The downside is that if you are in the market to purchase a new home in San Mateo and are planning on applying for a loan based on your self-employment income, you may be faced with some challenges you weren’t expecting.

Unfortunately the current economic situation has forced many lenders to tighten their requirements and that may make getting a loan more difficult than in past years for self employed home buyers. Here’s the score on what today’s lenders are looking for.

1. Forget about a ‘stated income’ mortgage – you are going to need tax documents, bank records and at least a two year history of business stability for a lender to even consider your application. Even if you are just branching out in the same kind of business that you have done for years, expect tight requirements and nearly perfect credit to move forward with qualifying.

2. Do your homework – research the banks or mortgage lenders you want to approach and find out exactly what paperwork and documentation they require to process a loan for a self-employed borrower. Spend time putting your documents together carefully and thoroughly in advance of your application.

3. Look for lenders who have a track record of accepting self-employed borrowers and try to meet with them in person to review your paperwork and find the right kind of loan package for your needs and situation.

4. Take a break from write-offs for a couple of years – those tax deductions help with your disposable income, but they also take down your gross income level. Lenders want to see a good debt-to-income ratio,not how clever you are about expensing your income away. Direct any questions about how to manage your expenses and write-offs to your CPA.

5. Stay liquid – build your bank account so that lenders can see your ability to make payments even if you have seasonal or other fluctuations in your income levels month to month or year to year. A solid savings plan and liquid assets can be helpful in getting your application approved.

Finally, if you have a strong co-signer, one with great finances and a steady income, you may be able to overcome your lender’s concerns and hesitation when it comes to considering the source and level of your personal income.

Are you self employed and have more questions? Contact me for more information, I would be happy to help!

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  As San Mateo Coastal Real Estate agents; we understand the importance of hosting a great open house.  Buyers want to see the ins and outs of your home and there are six key ways to help your home have a successful open house!

1. Make it Generic- While it’s great to make your home personal, your pictures, children’s art or your to do list on the refrigerator can be a large distraction to potential buyers.  They need to be able to envision themselves in your home, so putting away those personal items will help buyers picture their life in your coastal home.

2. Clear Counters- Look at your kitchen or bathroom counters from a outsiders viewpoint.  Do you have too many appliances cluttering your kitchen counter?  Clearing this space will make their appear to be more room for cooking or their own storage.  If your bathroom counters are filled with perfumes, toothbrush holders, etc… take time to put them in cabinets or drawers so buyers can see the actual size of the space.

3. Set the Table- This may not seem necessary, but having your dining room table set with nice place settings add a touch of class and can help the San Mateo Coastal buyer envision hosting their own dinner parties.

4. First Impressions- Believe it or not, a nice doormat or attractive porch can really set the tone for the entire open house.  If there’s an old doormat , chipped paint or nothing special about the entrance to your home, buyers may feel that you don’t really care.  A welcoming setting from the start will instantly let buyers know that your home is well-maintained and that each area of your home is cared for.

5. Get to the Heart- The best way to appeal to the buyers’ heart is through offering something special when they walk in the door.  Whether you bake fresh cookies, have hot chocolate or coffee in the cooler months, or have lemonade for them on your counter as it starts to get warmer; these added touches will set your home apart.

6. Don’t Stick Around- While it may be tempting to want to hear what the potential buyers have to say, it can be awkward when the seller is present.  They will feel that they can’t openly express their thoughts to the agent and will not feel as comfortable when looking throughout the home.  Even if you take a walk through the neighborhood, being away from the home during an open house can make all the difference.

Hosting an open house can seem like a nerve-wracking process, but it’s the best way to get your home sold.  By taking note of these tips; you’ll be well on your way!  If you have questions about selling your San Mateo Coastal home; please let us know!  You’ll want someone who knows the area, has experience in selling homes on the coast and can be with you every step of the way.  Feel free to contact us with any questions you have or to learn how we can help sell your home!

One reason is that during the holidays more properties are taken off the market then put on. Inventory is lower in the winter so you are not competing with as many homes.  As a new listing your home will stand out over the ones that have been on the market for months.  Buyers will have less to choose from, and if your home is on the market there will be less competition.  More importantly, only Serious Buyers are looking for homes during this time. This means the buyers are really motivated to buy.  Another perk is that that the casual buyers, who only want to look but are not serious about buying, are not out.  Additionally, come January the housing inventory increases dramatically, because everyone else will be putting their house on the market, which could reduce the demand for your home.

Another factor you may want to consider is that homes on the market during the holidays generally show the best. There is nothing better than walking into a home that is all decked out for the holiday season.  Curb appeal is in full force! Or for a Buyer to walk into a home where pine scented candles are burning and chocolate chip cookies are baking in the oven. To make the most of this time, though, you’ll want to make your home is as warm, appealing and inviting as possible. Buyers have more time to look over the holidays and are emotional, which can lead to spending more on just the right house.

A lot of families relocating to California will visit and home shop during the holiday when they are off from work and kids are off from school, so buyers demand will be consistent and most likely increased.

Remember buying a home is not just a huge financial decision; it is also an emotional one. Appeal to your buyers desire to settle down with their family in a new home full of warmth and love — your home! Allow them to visualize their family enjoying their next winter in your home.

Follow this advice and you might receive the best holiday present of all, a sold  sign on your front yard!  Call us today and let’s discuss your goals to buying or selling in the San Mateo market.

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Living in San Mateo County

Thanksgiving: Tips for Hosts and Guests
Hosting the big Thanksgiving dinner is a huge responsibility. It’s normal to feel overwhelmed with cooking, cleaning, decorating, and maintaining the guest list. (And let’s not even begin to think about the clean-up afterwards!) Here are some tips on how to make Thanksgiving in your San Mateo home a wonderful event for the whole family:

1.  Remember, people will take your food- So, plan for leftovers ahead of time. Have some extra Styrofoam containers, paper plates, aluminum foil, and plastic grocery bags available for guests so they can take a little morsel or two home at the end of the evening. This will prevent the loss of your favorite Tupperware, plates, or bowls from your own cabinets
2.  Prepare for clean-up- Be sure to keep some extra cleaning supplies nearby just in case an accident happens, and it is also a good idea to always keep some soapy dishwater in the sink for used cutlery and plates as guests finish eating.
3.  Don’t be afraid to ask for help-As the host or hostess, it’s easy to assume that it’ your responsibility to do everything. This isn’t true! Asking for help with cooking, decorating, or cleaning will be a fun, easy way to get things done efficiently.
4.  Don’t leave out the specialty foods-Make sure that there is a variety of things for all of your guests to eat. It’s usually good to have a few dishes that are vegetarian, vegan, low-fat, and/or low-carb.

As a guest, it is important to remember that you have many responsibilities as well when it comes to showing good manners.

1.  Be thankful for the invitation – after all, it is Thanksgiving! A thank-you note or small gift (such as candles or box of chocolates) is a great way to show appreciation to your host or hostess. Also, it is a good idea to offer to bring a dish, even if it is not a potluck dinner.
2.  Keep your host/hostess informed- If you have special food needs (such as vegetarian, low sodium, sugar free), you need to make sure your host or hostess is aware of the situation and can make necessary accommodations for you.
3.  Timing really is everything- Simple concept: if dinner starts at 7p.m., be there at 7p.m.! It is always a good idea to arrive on time or no later than half an hour after the scheduled time.
4.  Be available to help- Remember, your host/hostess has gone through a lot of work to accommodate you. It is of utmost importance that you do as much as you can to lend a helping hand when you have the opportunity.

The quickly approaching holiday is sure to bring your friends and family plenty of good times.  If you have any questions about living on the California Coastside area, or if you’d like to see some California homes in Pacifica, Half Moon Bay, El Granada, Moss Beach, and Montara, contact us today. We’d love to hear from you! Have a Happy Thanksgiving!

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Start by communicating with them. You may uncover a problem that you can help to solve.  it may be that your neighbor is elderly or ill and unable to do things for themselves. Perhaps you could help out with lawn care or basic maintenance. You might even get other neighbors involved to lend a hand.

If you have an HOA, you can go to the president or governing committee. Most HOA’s have strict requirements for upkeep, and they take quick action to correct violations. Also contactl the city code enforcement. If your neighbors’ grass is knee high and they have a rusted out cars in the front yard, they are probably in code violation.

Use a fence or landscaping to hide unsightly side or back yards.

Some home sellers who are serious may offer to pay to haul off trash or try to work out another option to try to help the situation.

Another property de-valuer, especially in today’s economy, is the foreclosure. While you can’t personally do anything about a foreclosed home in your neighborhood, you should be prepared to take a hit on your home’s appraisal value. Be aware of the home values in your neighborhood and what other sellers are listing their homes for. You may need to consider discounting your home or offering incentives to counteract the foreclosure.

Foreclosure is so commonplace now that it probably won’t affect people coming to your neighborhood – in fact, it may draw potential buyers. You just have to be ready to compete with the ‘bargain’ a foreclosure may present to your potential buyers.

Your realtor may have dealt with this before, ask them for their advice if you find yourself in this situation!

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Whenever you’re buying a home, there are some things to keep in mind.  Below is a to do list will help you in finding your ideal home amongst those that are available along the San Mateo Coastal cities of Moss Beach, Half Moon Bay, El Granada, Montara and Pacifica. 

1.  Do research the neighborhood- Look at the house, but also look at the neighborhood. Location is the most important thing, so it’s critical to look at more than the home itself. Be sure to make a list of the things you’re looking for in a San Mateo Coastal neighborhood in order to find an environment that fits your style.

2. Do look at several houses before you buy- If you buy a home without comparing it to other listings in the San Mateo area, you’re likely to overpay or miss out on a great nearby home. Walk through at least three homes before you choose. If you still love the first one you saw, make an offer!

3. Do invest in a professional inspection- Sellers don’t always disclose everything that’s wrong with their home to potential buyers, or they might have done a band-aid job to cover up issues after the sale. Many potential problems, like plumbing and wiring trouble, are not visible at a glance.  Home inspectors know what to look for and can do a thorough job so you’re sure to know exactly the type of home you’re buying- which can save you from unwanted surprises down the road.

4. Do buy based on needs, not wants- The average Americas lives in the same home for about 9 years, so it’s crucial that you think about your long-term needs when buying a home. A smaller home with a gourmet kitchen may grab your attention today, but will you still be enamored down the road when your family starts to grow? Make a list of your needs and stick to it to avoid buyer’s remorse in the long run.

We know buying a home can seem like an overwhelming experience, but keeping these tips in mind can help you narrow down your search and stay focused.  Many sellers are hoping to sell their homes before the holiday season hits, making now an even more lucrative time to buy!  San Mateo Coastal sellers may be more willing to work with you on the price and closing date if they know you’re serious about buying their home.  If you have any questions about the current San Mateo Coastal Real Estate market or are ready to start looking at homes on the San Mateo Coast, please let us know!  We’d be happy to help you find your new home!

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So how do you go about selecting a home inspector?    One good way to start is one of the two nationally recognized professional associations for home inspectors; the American Society of Home Inspectors or The National Association of Home Inspectors.   In order to be listed with either of these organizations one has to go through a certification process. Both of these have a search engine to help you find “state certified home inspectors.”  Once you have a few names it doesn’t hurt to check with the Better Business Bureau.  Make a list of inspectors that have been recommended.  Avoiding anyone who has a negative report can help you avoid any potential problems with your inspection. 

A few things questions to ask when talking to your potential home inspector:

• What is the inspector’s experience? How many years have they been in the business and how many inspections do they do a year? 
•  Exclusively inspections? Beware of contractors who do house inspections “on the side”–they may be looking for work and this isn’t necessarily what you want.
•  What type of report? Will it be written or oral or both? Will the report contain suggestions for remedying deficiencies?   Preference should always be to get it in writing.
• How long will it take? Depending on the size of the house an inspection should take between 2 and 4 hours.
• What will be included in the inspection?
• What certifications do they have? Are they ASHI or NAHI certified?

If you are concerned about the condition of your San Mateo dream home, be sure to let your real estate agent be aware of this, they may be able to put your fears to rest.

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Below are five ways to protect yourself from home improvement scams:

1. Don’t fall for high pressure ‘now or never’ deals. Sometimes contractors will knock at your door with a special ‘one time only’ deal. If you don’t sign up right there and then, they warn, you will lose the opportunity to get a great deal. Reputable remodelers may offer specials, but they also recognize that you may need some time to think it through, talk it over with your spouse, or check out their references. Ask to see a price list, a website, and a list of verifiable past customers before you agree to allow any work to be done.

 2. Watch out for unsolicited offers for exterior repairs in Montara. When a repairman knocks and tells you he ‘just happened to notice’ several items on the exterior of the house that need repair, don’t fall for it. Even if he has been working in the area, many repairmen spend all their time scouting for any signs of wear and tear and turn it into an opportunity. Be especially wary, if he ‘just happens’ to have all the materials with him that are need for your job. Chances are the materials actually belong to someone else – maybe even one of your neighbors who paid more for repairs than was needed.

3. Don’t pay for the job up front. If your contractor-to-be needs to be paid in full before he starts, then you should take that as a sign that you will never see him again. Never pay for a job before the work is finished. Legitimate remodelers typically require a down payment of a third or less to get a job started (which is reasonable) and pay for materials. The balance of money in your agreement (and for significant jobs get the agreement in writing) will be paid after different milestones have been completed, with the final payment coming when all work has been completed to your satisfaction.

4. Don’t do business with out of towners. Beware of contractors who drive unmarked vehicles or trucks with out of state licenses. They may be part of a band of scammers who are making their way through your area. This is especially common after a storm or other widespread event that makes homeowners vulnerable to quick repair scams. Make sure that the remodelers or repairmen you choose are established in your area and have both trade and customer references.

5.  Always check references. Don’t just ask for references – take the time to actually follow up on them and call. Granted, contractors aren’t going to list anyone who has negative reviews, but if they have 5 or more solid references you should feel good about them. Ask for bank or trade references also, and check with the Better Business Bureau and local license board to make sure their business practices and credentials are sound.

When selecting a home improvement contractor or remodeler, use your good judgement.  Take time to do your homework, get referrals from friends, check references.  Beware of unsolicited offers, high pressure sales, and upfront payments.

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Here are some questions you need to ask yourself: Do you think you’re ready to move into the world of homeownership in Montara? Does your job require you to relocate frequently? Are you ready to “settle down” and raise a family? Not sure what you want to do yet?

Buying a home has some real advantages.  Right now buyers in Montara can cash in on hefty price drops and rock bottom mortgage interest rates.  Many people just do not realize how great the market really is!

Here are a few pros and cons to buying and renting in Montara:

Buying Advantages:

* You gain equity in your home through mortgage payments.
* Your home could be one of the best long-term investments you will ever make.
* You can decorate and remodel the way you want.
* You get homeowner tax breaks.
* You build your credit standing.
* You can improve your property using home equity loans.
* You gain independence and pride as a homeowner.
* You can transfer your property through your will.

Buying Disadvantages:

* Your costs are variable.
* Your equity may change due to market conditions.
* You usually must sell your home to move.
* You handle maintenance and upkeep.
* You usually need more cash to get in.

Renting Advantages:

* Your costs are fixed for the term of your rental.
* You don’t lose equity.
* You can move at the end of your lease term.
* You have fewer maintenance worries.
* You need less cash to get in.

Renting Disadvantages:

* You never get equity.
* You can’t always decorate or remodel the way you want.
* You don’t get any tax breaks.
* Your lease is for a limited time period determined by your landlord.
* Your rent may go up at the end of your lease and other terms may change.
* Your landlord may not fix problems or invest in routine property maintenance.
* You normally can’t transfer your lease without the landlord’s OK.
* You may face eviction if you and your landlord have a dispute.

That’s a lot to think about. To put these pros and cons into dollar terms, try out this rent v. buy calculator offered by the Federal Home Loan Mortgage Insurance Corporation (better known as Freddie Mac). Don’t be shy–check out different scenarios and see what they mean for your finances.

There are certainly a lot of variables to consider when making this decision. You need to do your homework and decide what is right for you and your family.  Working with a qualified real estate professional in Montara can provide current market advice for your area can help.

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