Orange County, CA Real Estate Podcast with Torey Severino

What is a home warranty? Should you get one at the close of escrow?

First of all, keep in mind that a home warranty is not the same thing as home insurance. A home warranty is a one-year policy that covers many of the mechanical items on the property, such as pool equipment, the water heater, the furnace, A/C, or other appliances.

As a buyer, you should absolutely get a home warranty. After the close of escrow, you can move into the property knowing that if anything goes wrong, all you have to do is call the home warranty company. The company will then send out a technician to repair or replace the appliance.


As a seller, the home warranty is a great way to offer buyers reassurance.

Who pays for the home warranty and what does it cost?

Depending on the market, either the buyer or the seller will pay for the home warranty. In a more competitive market with lower inventory that favors sellers, it is more likely that the buyer will have to pay for the home warranty. In a buyer’s market, where there is more inventory and buyers have the advantage, then the seller will foot the bill for the home warranty.

Home warranties tend to cost between $350 and $700, depending on the home and the number of items that the warranty covers.

Still, a home warranty is worth the investment. If you have any other questions about home warranties, give me a call or send me an email. I would be happy to help you!

If you want to buy a home, how much money do you need for your down payment?

Most lenders would love to see you put the standard 20% down for a conventional loan. Why? First of all, you won’t have to pay mortgage insurance. Secondly, you will be less of a risk. You are more likely to make your mortgage payments because you have equity in your home. Finally, putting 20% down helps you qualify for a bigger purchase.

That said, there are a few things to consider.

Recently, the National Association of Realtors revealed statistics from April to June of 2017 that found that 73% of all first-time homebuyers put less than 20% down; 61% of those buyers put less than 6% down.

Here in Southern California, which includes Orange County, L.A., and the Coachella Valley, prices are appreciating and interest rates are low overall. The market is really taking off, although the desert is slowing down a little bit. Home prices have appreciated quite a bit over the past eight and a half years since the bottom of the market.

Buyers are tired of renting. They know that long-term investments mean long-term gains. Real estate is a great way to build your portfolio and start building your wealth. In fact, 95% of all people who become millionaires got there through homeownership.




A lot of people may say that renting is the way to go. Renting is fine if you are moving around a lot or have a transient job that requires you to go from location to location. If you have established a family or have a great career in the area, then why are you renting? Why are you spending $2,000 to $4,000 and not gaining anything from it?

You may have a great place to live, but the reality is you are not benefiting from any of the mortgage interest deductions or appreciation that homeowners do. If the landlord decides to sell your home because the market is improving, then you have to move again, which costs you time and money.

So, what are the loan limits? 

FHA loans allow you to put 3.5% down. If you are looking to buy a $500,000 home in Orange County, you would need $17,500 down. If you were looking at the same home but needed to put 20% down for a conventional loan, you would need $100,000 for your down payment.

You can also get a conventional loan with a 5%, 10%, or 15% down payment. If you qualify for a VA loan, you can purchase a home with no money down.

If you would like to talk more in depth about which options are available to you, give us a call or send us an email. You can also get pre-approved by our preferred lender on our website.

So, if you have any questions, give us a call or send us an email. We would be happy to help you!

Today we’re excited to give you a 4th quarter market update, for both the Coachella Valley and Orange County. We’ve got some interesting numbers to share with you today, let’s start with the Coachella Valley.

Back in September, we had just about 5,000 listings on the market in the Coachella Valley, which is pretty typical coming out of the summer market. However, since then, we’ve had 1,600 new listings come on the market. Our active inventory has gone up all the way to 6,600 listings. That’s a huge jump in inventory, and creates much more competition for sellers.

As for sales in the Coachella Valley, they are only up by 100, so a lot of these homes on the market now are going to take longer to sell. The key to selling your home first is to price correctly, stage correctly, and have good showings.

In Orange County, things are a little different. Listings have actually gone down close to 900 since September and sales have gone down by 375. This gives us about a 600 unit difference in listings and sales, which is a little more typical of what we see this time of year. 

The market is usually fickle during an election year, so your price is going to be the biggest thing that’s going to impact the sale of your home in 2016. The next thing you’ve got to remember is to keep your home tidy and smelling nice for buyers. 

I appreciate getting the opportunity to help you in 2015, and look forward to helping you in the new year. If you have any questions at all for me, or if you or someone you know needs my help, please give me a call or send me an email. I look forward to hearing from you in 2016!