What Costa Mesa Homebuyers Hope the Future Brings

As Costa Mesa homebuyers arrive at their final choice, it’s impossible to ignore how greatly their decision will influence their future. Five, ten, twenty—or more— years from now, the purchase will likely have shaped a lot of what’s to come. Buying a home in Costa Mesa at this point in time may be seen to have been a great move for the family. Or not. It’s a truism that puts most homebuyers in a thoughtful state of mind.

A prime facet of what will come to be seen as a successful purchase is whether it will later be seen as a financially shrewd decision. On that score, today’s Costa Mesa buyers have little to worry about—particularly if they will be financing with a typical 30-year home mortgage. Everyone knows that home loan interest rates are low right now—but the real impact of how that fact will actually play out is informative.

The average interest rate over the past half-century is 7.75%, according to Freddie Mac’s official records in this report. By decade, that breaks down as—
1970s: 9.35% 1980s: 12.34% 1990s: 7.91% 2000s: 5.10% 2010s: 4.03%

For the average homebuyer during the past 50 years, that means a typical monthly payment for a $300,000 mortgage has been (principal and interest only) $2,149. Contrast that today’s buyer—when offered a 3.75% home loan, the monthly P&I will be only $1,389. Over the course of a 30-year loan, that’s a difference that works out to a savings of more than $273,600!

Back in the ‘80s, when interest rates were ballooning, buyers could only shake their heads when they heard stories about earlier generations who had financed their homes for what seemed like pennies. Those earlier mortgagees might as well have been lottery winners. It’s no stretch to foresee that years from now, future buyers facing historically average (or worse) rates may hear what today’s buyers are being offered and think it’s some wild exaggeration.

Your own envy-worthy home purchase begins with finding the right Costa Mesa home—one you’ll enjoy living in for years to come. Get started by giving us a call!

We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com

Buying a Home this Spring: Bright Spots and Challenges

On Thursday, USA Today published a view of what many of this spring’s first-timers have encountered in their inaugural home-buying ventures. Our own Costa Mesa trends don’t precisely match those tapped by their research—but the themes cited in the national press are familiar here, too.

Although the headline emphasized the difficulties those buying a home for the first time may encounter (“3 Challenges Facing First-Time Homebuyers This Spring”), elsewhere in the piece, some bright spots were acknowledged. For Costa Mesa readers inclined toward a ‘glass-half-full’ point of view, they tend to balance out the familiar challenges.

Bright Spots:
• According to the Mortgage Bankers Association, affordability has advanced with the easing of 30-year fixed mortgages to a national average of 4.42%.
Inventory “has loosened up slightly.” This is a relative finding since the U.S. still lags in properties for sale (at least compared with the historical norm).
Prices. Price growth has slowed “and leveled off” according to the MBA.
Spring buying. Nationally, good, old fashioned negotiations have replaced the frenzied bidding wars of last year. But USA Today isn’t calling this spring a buyer’s market—only one characterized by fewer competing offers.

Challenges:
Home prices. Prices are still relatively high—especially for those buying a home for the first time. Since they can’t count on the equity built by their current property, scrambling for a substantial down payment can be a barrier.
Securing a loan. In March, the FHA said that it is tightening its rules for high-risk mortgages. As is generally the case, this can provide a hurdle for first-timers.
Inventory is still tight. Some finger-pointing is aimed at the home construction industry, which is only now rebounding from the recession-spawned falloff in new home starts. Entry-level housing ($200,000 and less) is the sector hit hardest.

Buying a home in Costa Mesa may take more determination for first timers—but that doesn’t mean it isn’t well worth the effort. Whether you are a first-timer or a long-time homeowner, give me a call for an in-depth discussion of the possibilities presented by this spring’s many offerings!

We are built on a philosophy of Heritage & Hustle L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, L3 has grown to a full staff of 20 serving over 300 clients a year. L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact L3 today at 714-444-4663 or email us at info@thel3.com

Costa Mesa House Hunter Query: What’s the Ideal House Size?

A few years ago, the Realtor® website weighed in with some ideas addressing a question that Costa Mesa house hunters face all the time: what house size should they be aiming for?

I have one approach, but the Realtor.com team took another tack—posing five questions buyers should ask themselves. Here they are:

1. How long do you intend to live in the new house—and what will your family size be during that period?
2. Ask yourself, “do you really want to clean a large house?”
3. How expensive will it be to furnish?
4. Will maintenance costs strain your budget?
5. How important are your personal preferences? For instance, your desire for “coziness” may trump your wish for extra rooms to accommodate guests.

The five questions are all relevant—but there is a more concrete approach to dealing with your ideal Costa Mesa house size:

Step 1: Measure your current living quarters. Get out the tape measure, list each room and measure it, wall to wall. Don’t bother with the hallways. Now, next to each room, mark a “+” for rooms that you’ve found to be unnecessarily large, “-” for those that have proved to be uncomfortably small, and “=” for those that have proved to be about right.

Step 2: If you have experienced the need for an additional room or rooms, note them at the bottom of your list. If you currently have superfluous rooms, “X” beside them.

Step 3: You have probably already figured out what Part 3 is going to be—use all that information to make a mental checklist for your ideal Costa Mesa house size. Note that I haven’t recommended adding them all up to get a single “square footage” number to match with the listings’ single figure. What will be more meaningful are the individual room sizes and the number of bedrooms and baths. Listings’ single “sq ft” number often includes less essential spaces. That number is more useful as a ballpark to compare listing-to-listing.

Even if it turns out that your room calculations point you toward unaffordably large properties, knowing what your own experience suggests will provide reference points that can’t help but make your house hunting efforts more productive.

There’s also another way guaranteed to yield productive house hunting: call us!

We are built on a philosophy of Heritage & Hustle L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, L3 has grown to a full staff of 20 serving over 300 clients a year. L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact L3 today at 714-444-4663 or email us at info@thel3.com