Tag Archives: new homebuyer

Top 5 Tips for Opening a New Escrow!


Opening escrow, especially for the first time, can be a bit like navigating uncharted waters. Based on our experience opening multiple escrows for over 12 years, The Mendelsohn Group has compiled a list of useful tips to help homebuyers through escrow with ease!

  1. Read through all paperwork and stay on top of all signatures. If you were to print out every single piece of paper involved in the purchase or sale of a home, the file would easily be three inches thick! As you can imagine, it can be a bit overwhelming to deal with all of that paper. Do your best to stay on top of it and READ and sign as it is sent to you. Don’t hesitate to call your agent with any questions before you sign.
  2. If you are currently renting, DO NOT GIVE NOTICE of your intended move-out date until ALL CONTINGENCIES are removed on your sale. This is incredibly important because if something falls through, you could potentially be out of a place to live! As Revi always says, “I’d rather you have two places to live than none!”
  3. Avoid posting anything on social media regarding the sale. This helps protect you against your landlord finding out of your plans to move prematurely. Posting on social media during negotiations could also affect you negatively because you never know which friends buyers/sellers have in common. When Revi is representing you, she is always planning strategically to get you the best possible deal! As Revi says, she keeps things “in her back pocket” to benefit you in the deal.
  4. Do not discuss any repair or inspection matters with your lender under any circumstances. This is key to ensuring a smooth lending process. If you are unsure of any matters, consult your real estate agent. Bringing inspection matters to the lender’s attention can complicate the loan, and potentially cause the deal to fall apart.
  5. While in escrow, do not make any large purchases such as a new car, furniture, or anything that can affect your credit score and ability to get the loan. The lender repeatedly checks your credit ratios during and up to the close of the loan. Before making any changes such as employment, opening or closing bank accounts, or making large deposits, speak to your realtor and your lender to confirm it has been set up properly. Revi and The Mendelsohn Group team are here to help you every step of the way — no question is too big or too small!

If you have any questions regarding the escrow process, or real estate in general, do not hesitate to contact Revi Mendelsohn at 310-963-7384!

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TOP 8 reasons Why Home Buyers Want The Mendelsohn Group on Their Side

Are you thinking of buying property? Maybe you are looking for investment opportunities. Or maybe you are ready to take the big leap into owning your first home. The thought can be overwhelming if you don’t have the guidance of an experienced team on your side. The Mendelsohn Group has over 12 years of residential purchase experience. We specialize in the following to ensure a positive home-buying experience, and get the best possible outcome for our clients:

  • We help our clients pay an average of 3% UNDER asking price
  • We offer a proprietary “Top Five Deal Breaker System” to help clients determine what is most important in their next home
  • We make our clients feel like they are our only clients through award-winning* customer service and sales experience
  • We provide outstanding project management skills. We have an excellent reputation amongst our peers, as evidenced by listing agents preferring to work with The Mendelsohn Group
  • We regularly secure property from multiple offer situation through successful packaging buyers to listing agent
  • We have excellent negotiation of repair credits due to experience and understanding of home repair
  • We practice solution-oriented strategies to bring all parties of the sale together
  • We present top notch service providers for any repairs after the sale, as well as follow-up with clients to ensure they are settled in their new home

*Rodeo Realty’s Vice-President’s, President’s, and Executive Circle awards 2010-2015  and Coldwell Banker’s Prestigious President’s Circle 2007

Another happy family in front of their first home!

Another happy family in front of their new home!

Last week we closed escrow for a family on a wonderful home in West LA. After several months of searching, we were able to secure 2nd backup position on a home (2nd backup means that 1st backup is in front of us, but 1st backup is behind the buyers in escrow). It was a bit of a challenge for our buyers, as they had access to a special loan program for Military Veterans. This Veterans Administration loan is unfamiliar to most agents in LA.  We had to educate the listing agent and sell her on our buyers. In a matter of 4 days, the 2 other buyers both in escrow and 1st backup dropped out and we won the house! Now our clients’ kids have a yard to play in and to plant a vegetable garden in. They never imagined that they would have two extra bedrooms, one for a home office and the other, a playroom.

For more stories of The Mendelsohn Group’s successful purchase negotiations, click here! If you are looking for these types of results in this highly competitive Real Estate market, call Revi at 310-963-7384.

 

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Will Your Will Be Enough?

Congratulations, you have taken the big leap and have purchased a home! Now that you own a home, have you thought about protecting your assets? Is having a WILL good enough?

When one dies with assets to his/her name over $150,000, his/her estate goes through Probate Court – and that happens whether or not he/she left a Will. The only instance when a decedent’s estate (that exceeds the probate threshold of $150,000) stays out of Probate Court is if the assets are titled in a Trust. For purposes of meeting the $150,000 threshold, the probate court looks at GROSS, and not NET value of the Estate.

For that reason, your new home–which you just added to your estate–most definitely pushed your assets above the probate threshold of $150,000. Therefore it would be wise to set up a Trust and transfer your home into Trust to prevent it from undergoing probate.

Even if spouses take title to their home jointly, that only protects the surviving spouse from probate at the first death. At the second death the home (which is now only in the survivor’s name alone) will most likely need to be probated.

Unlike the costs for setting up and administering a Trust, probate costs are much higher. Few people know that the probate fees are set in the Probate Code as a percentage of the gross value of the estate. It costs $46,000 to probate a $1 million dollar estate, $56,000 to probate a $1.5 million dollar estate, $66,000 $2 million dollar estate, and so on. Half of these go to the attorney for the estate, and the other half go to the estate representative. Those should be assets going to your heirs instead.

Protect your assets and your family – save your money for your beneficiaries and consult with an Estate Planner to convey your new home and your other assets in a living Trust.

 

 

 

Disclaimer:  This post is not intended to replace legal advice. It was put together with the assistance and guidance of attorney Maria N. Jonsson. We personally use Maria for our estate planning.

Maria N. Jonsson, Esq. (310) 802-9961, [email protected], www.mariajonssonlaw.com

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Buying a Home is STILL Cheaper Than Renting!

With the prices of homes in metropolitan areas still below their highest values and mortgage rates still teetering on historic lows, the monthly mortgage payment on a median priced home is less than at almost any time in the last 25 years.

In a recent report from Trulia, it is explained that owning a home remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the U.S. Nationally, the price of owning is an average of 35% less expensive than renting. In the Los Angeles area, that rate is between 20-40%!

How is this possible you ask? Let’s take a look at the numbers:

  • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). In the past year, these two trends have made homeownership even more affordable compared with renting.
  • Some markets might tip in favor of renting next year if home prices increase at a greater rate than rents and if mortgage rates rise, due to the strengthening economy. However…
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989!
  • The National Association of Realtors performed a study in which they looked at income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years. They found that a typical rent rose 15% while the income of renters grew by only 11%.
  • The average renter in the United States pays 30% of their income on housing compared to that of a homeowner who can expect to spend 15%.


The bottom line is that buying a home makes sense. Rental costs have historically increased at a higher rate of inflation. Now is the time to lock in a low interest rate and work towards your goal! Consider the following if you are on the fence about taking the leap into homeownership:

  • There are many benefits to homeownership. One of the top ones is being able to protect yourself from rising rents and lock in your housing cost for the life of your mortgage.
  • Homebuyers who purchased their home over the same five-year period locked in their housing costs and were able to grow their net worth as home values have increased and their mortgage balances have gone down.web-layout-sm
  • According to a poll by DigitalRisk.com, over 60% of first time homebuyers who recently bought a home put down less than 20%, while 36% put down less than 5%.
  • Speak with a realtor you can trust – they can help you plan your journey to buying a home, and making it as stress-free as possible!
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First-Time Home Buyer Tips!

You’ve decided to go for it and start the process of buying your first home. Buying a home can be thrilling and nerve-wracking at the same time, especially for a first-time homebuyer. It’s difficult to know exactly what to expect and if you are making the best choices for your budget, lifestyle, and goals.

That’s why we’ve created a list of the Top 5 Tips for the smoothest first-time home buying experience possible!

 

1.     Seek help from a professional agent you can trust.

Speaking to an agent about specific budgets and goals can help set you up for the best plan of action, and what is best suited for you. The years of industry a realtor can provide you with is worth the costs and can help expedite the process.

2.   Reach out to elders and mentors with experience for advice.

There is no greater value than getting advice from people who have been in your situation. They can help you navigate what mistakes to avoid and even give some tips on things like loans and interest rates.

3.   Research and narrow down the type of housing and neighborhood works best for you.

Having a strong grasp on exactly what you are looking for can help save a lot of time and stress down the line. This is especially crucial if you plan to use this property as an investment—things like proximity to major landmarks, school districts, and value of the neighborhood can pay off later on when you go to sell.

4. Fully prepare for short and long term expenses.

While upfront costs to purchasing can seem quite obvious, home-buying can come with a lot of unpredictable charges. There may be home owner’s association fees and unexpected repairs involved, so make sure to save and prepare for these potential road blocks.

5. Take your time.

There is no need to rush this process. It is a very rewarding thing to be able to purchase a first home, and it takes a lot of courage to commit! Once you commit to your decision, make sure to not get caught up in the hustle of finding the place you are looking for. Make sure it has what you are looking for and you are absolutely happy with your decision!

If you have any questions, or are looking to make this exciting move in the next few years, Revi would be happy to talk you through this process! Call or email anytime for more tips and advice to help you reach your home-buying goals!

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Millennials Heat Up The Home Buyer Market!

The Next HomeBuyers

Millennials are dominating the homebuyer market and changing the market for going on the second year in a row – and these exciting changes are sure to do great things for real estate in the coming years!

With more jobs on the horizon and more focus on establishing financial success before marriage, the real estate market has continued to see a boost thanks to this growing group of new buyers. According to the National Association of Real Estate, millennials are making up about 32% of the buying market, which is majority over all other buyer groups. This is proving beneficial to everyone in more ways than expected – it is boosting our economy and driving home values up!

Want to know where to start before buying your first property? The Mendelsohn Group can help point you in the right direction! Follow these helpful tips for millennial home buyers:

1.     Seek help from a professional agent you can trust.

Speaking to an agent about specific budgets and goals can help set you up for the best plan of action, and what is best suited for you. The years of industry a realtor can provide you with is worth the costs and can help expedite the process.

  1.    Reach out to elders and mentors with experience for advice.

There is no greater value than getting advice from people who have been in your situation. They can help you navigate what mistakes to avoid and even give some tips on things like loans and interest rates.

  1.    Research and narrow down the type of housing and neighborhood works best for you.

Having a strong grasp on exactly what you are looking for can help save a lot of time and stress down the line. This is especially crucial if you plan to use this property as an investment—things like proximity to major landmarks, school districts, and value of the neighborhood can pay off later on when you go to sell.

  1.   Fully prepare for short and long term expenses.

While upfront costs to purchasing can seem quite obvious, home-buying can come with a lot of unpredictable charges. There may be home owner’s association fees and unexpected repairs involved, so make sure to save and prepare for these potential road blocks.

  1.    Take your time.

There is no need to rush this process. It is a very rewarding thing to be able to purchase a first home, and it takes a lot of courage to commit! Once you commit to your decision, make sure to not get caught up in the hustle of finding the place you are looking for. Make sure it has what you are looking for and you are absolutely happy with your decision!

If you have any questions, or are looking to make this exciting move in the next few years, Revi would be happy to talk you through this process! Call or email anytime for more tips and advice to help you reach your home buying goals!

 

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