Michael E. Anderson
Michael E. Anderson
Broker Assoc. ABR, RSPS BRE# 01417114
(805) 698 - 3770
Anderson Home Pros Real Estate
1433 Marsala Ave.
Santa Maria, CA 93458

Water Crisis Solutions For Your Home

Water Crisis On The Central CoastWater Crisis Solutions For Your Home

We on the West coast know full-well how valuable water is. It has become a serious issue for all California Central Coast homeowners & residents. This month we would like to focus on what you can do for very low cost and what would provide the highest return on your investment.

Since spring has come and we look to our gardens and yards that are hopefully springing back to life, I wanted to start there. As you can see by the informative chart, our yards landscaping consume 57% of water resources. There is something wonderful about vast expanses of  bright lawn. However, lawns require the most amount of water of any feature in our yards. As a Real Estate professional on the California Central Coast I would not tell you to remove all your lawn, since most buyers want and desire a lawn area, but I would recommend that you reduce the size, use water retaining fertilizers, increase mower height to reduce evaporation, follow a reduced water schedule, and make sure any runoff is minimal. The second place to focus your water-saving efforts is to install drip irrigation in your flower beds. Watering with drip emitters, micro spray heads or weep hoses delivers water efficiently and economically. Why water weeds?…focus on giving each plant exactly what it needs to prosper. Using drip is very beneficial to your landscaping. My third suggestion is to use a mulch in your flower beds to reduce evaporation and help to keep weeds down. There are many other suggestions on where to save water in your daily life such as turning off your faucet when brushing your teeth could save as much as 10 gallons a day or cutting your shower back to 5 minutes vs. 10 minutes could save 12.5 gallons a day. Continue…

Who is working for you in a Real Estate Transaction?

Real Estate AgencyWho is working for you and what is Real Estate Agency?

The normal response to that question from a buyer or seller is typically “my agent.” The real answer is more convoluted than that and Real Estate Agency really should be better understood by the public. When you sign a listing agreement or an agency agreement with “the agent” you are actually hiring the Broker of Record.

The first item to understand is that the Broker of the company is whom you are hiring. The agent who you meet is typically an independent contractor hired by the firm and in most cases represents the broker. In the first few pages of documents you should see an agency agreement where it is clearly (or should be) explained how you as a buyer or seller are being represented. There can be a buyers’ representative, a sellers’ representative or a dual representation where the agent or broker provides services to both parties. Continue…

Free Home Staging Services For All New Listings!

Anderson Home Pros Real EstateHome Staging Services With Anderson Home Pros

Do you want to sell your house fast…and I mean really fast? Then set a rock-bottom price lower than anybody else, and be sure to also negotiate your agent’s commission, because it’s not going to be that hard to sell. Anyone could do it.

Now, if you want to sell your house fast and get the most money for it, then you need Home Staging Services With Anderson Home Pros with a plan:a Staging Specialist. As a trained Staging Specialist, I can provide this valuable service if you list with me.

The world of real estate is ever changing and never seems to remain constant for more than a brief period. But one thing has always been a constant – the home that is priced well and shows well generally sells well. No matter what the market conditions, how your home shows has a tremendous impact on the end result. Continue…

New Lending Rules-Are YOU Ready?

Lending RulesLast month I touched on the new rules coming out of the lending intuitions. Since financing your home is most often a dreaded part of buying a new home, I believe it is important to understand the new lending rules, and use that knowledge when you apply for your next mortgage. There are a lot of conflicting stories and articles discussing the lending rules. Every situation is unique and one size does not fit all. Knowing the rules and how they may or may not apply to you can help you to feel much more in control of a very stressful business.

One of the basic tenants of the new rules developed by the Consumer Financial Protection Bureau was make sure you can pay back your loan. While most of you who are looking at acquiring a loan have already noticed a slight change, it has mostly been invisible to the public at large. This may seem like an obvious expectation…you need to be able to pay back your loan. It seems that in order to sell loans, many lenders were overly generous in their hopes for payment, making loans to buyers that were not qualified by financial history or income to pay them back. The big term you need to know is qualified mortgage, or QM. If lenders make qualified mortgages, they have more protection against lawsuits should the loans later go bad.

These loans cannot: Contain terms that exceed 30 years, Include interest-only payments or payments that are less than the full amount of interest so that the home loan debt grows each month, Charge more than 3 percent in upfront points and fees for loans above $100,000, Contain balloon payments, Push a borrower’s total debt load above 43 percent of his or her monthly income. There are some exceptions when the debt load can exceed the limit. If the loan is eligible to be backed by Fannie Mae or Freddie Mac, or a federal housing agency such as the FHA, for example, that debt load could be greater.

Then we get this from the Wall Street Journal: U.S. Banks Start to Ease Limits on Lending

A brightening outlook for the country could be enhanced as big banks begin to ease limits on Lending.

1. According to new reports, banks relaxed the criteria for businesses and consumers to obtain credit during the 18 months leading up to June 30, 2013.

2. A limited pool of loans and a sustained low-interest-rate environment has supported this credit thaw, in addition to the rosier economic picture.

3. A decrease on limits in lending is expected to bolster growth projections. The Federal Reserve predicts U.S. growth between 2.8 and 3.2 percent.

4. Banks are offering the following changes to entice customers: Less onerous conditions for corporate borrowers, giving banks fewer tools if a loan gets in trouble, and longer terms for auto loans.

My conclusion to this information is this…Banks will lend to anyone they feel can pay the loan back at reasonable rates of return and with the least amount of loss exposure. Consumers will have more protections against shady lenders driven by these new rules and lenders will be less exposed to loss. Make sure your credit score is at an acceptable level and if you don’t know what it is…check. Start with the lender first before you look for your first home and get pre-qualified for a certain level of expenditure. Then you can go house-hunting with a clearer idea of what you can actually buy. One strong bit of advice (which I was reminded of recently) Just because the lender says you can buy up to a specific amount doesn’t mean you should max out your ability. Leave yourself some comfort zone for the unexpected.

When looking for a loan, talk with your agent or broker and see which lenders have produced proven results within the industry. Try to find a direct and if possible local lenders. They know their specific marketplace and can guide you through the process…personally. There are many great large institutions outside the area that lend, but often leave you feeling put through the mill. You are more than just a number and their livelihood depends on you, don’t lower your expectations!

After many years on the Central Coast I have worked with dozens of lenders and most have been exceptional. I can honestly recommend them and will give you a list upon request. As I have said, every town along out coast is unique and many have different lending options for you. Whether you are in Santa Maria, Orcutt, Nipomo (USDA Loans), Arroyo Grande, Pismo Beach or beyond…there are loan agents ready to talk to you. Give me a call today to discuss any Real Estate need.

Michael Anderson, Broker Associate, ABR, RSPS, BRE #01417114 805-698-3770 Mike@AndersonHomePros.com

2014 Central Coast Real Estate Projections

California Central Coast Home and Real EstateIt is often fun to look at last year’s projections to help. After looking at current and historical statistical data, I found some reasonable insights and a few misses. Happily, I came away with a positive outlook and once again found the market is indeed changing. Remember the old adages: Only a few guaranteed things in life…death, taxes and everything keeps on changing.

2014 Central Coast Real Estate Projections

In the Santa Maria and Orcutt housing markets we saw an increase in sales price close to 25% although it slowed a little in November and December which is a typical seasonal adjustment. Inventory is still an issue with high demand for affordable housing. Continue…