Dana Point Real Estate Reports


Dana Point Lot


Financially that may be a good strategy but take heed and purchase your Dana Point lot with care. Why? Because it can happen that the lot you buy today is not suited at all for the Dana Point home you want to build in the future. Here are some things to watch out for.

Dana Point Dream Home


As you can see, the lot you choose for your Dana Point Dream Home could have
either a negative or a positive effect on your overall building costs. A large, square lot in the middle of a graded subdivision in Dana Point is the easiest type of building site to work with. The further your lot deviates from the ideal, the higher your building costs will be. Building on a hillside or on a lot with varying topography and irregular shape is expensive.

Dana Point Housing Patterns


Dana Point Housing patterns tend to be homogenous, meaning homes worth $100,00 are located in $100,000 neighborhoods. It is important for properties to be within the general pricing patterns of their neighborhoods because over-valued homes, even if they are exceptional, are sometimes difficult to sell at full market price. Remember, lenders want to compare your home to nearby homes. If your Dana Point real estate is located in a neighborhood of $100,000 homes but you have added another $100,000 in improvements, you may have over- improved your property in that lenders will be reluctant to lend the higher amount.

Many sellers think that the price of their home is determined solely by what they are willing to accept and what the buyer is willing to pay. However, the lender’s appraisal in Dana Point is one more variable and it can complicate the sale of your home. In these cases, it helps to have a knowledgeable REALTOR working on your side.


Dana Point Real Estate Cycles


During a slow economic time, fewer people are buying homes in the Dana Point market. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.

During sellers' markets, Dana Point real estate sells quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During buyers' markets, Dana Point real estate may sit on the market for a while before selling, so sellers become more flexible and may even drop their prices.


Guidelines for Buying Dana Point


Let’s say everything is a GO! You have found the perfect Dana Point home. You know you can afford it and it is actually priced below what you expected to pay. What a bargain! Yes there are bargains to be found in Dana Point. At this point it is fine to put in an offer on the property but only with a well-planned contingency. Of course, it the home is going to be financed, the lender will want a Home Inspection before agreeing to lend money on the property. However, you need to protect yourself by making an offer SUBJECT TO a clean bill of health from the Home Inspector of your choice. This kind of a contingency gives you an out if the inspector finds a problem with the roof, or foundation or other structural problem that was not apparent to the seller or to your agent. This does not mean you will not buy the house but you will have a good reason to renegotiate the price with the seller.


Building Dana Point Home Equity


A popular question from prospective Dana Point homebuyers relates to building home equity. Buyers like to estimate how much a home may increase in value based upon past appreciation. One of the many advantages of home ownership is that appreciation is based on the home’s market value rather than on the actual dollar amount invested or the down payment so that a $100,000.00 home that appreciates 5% is now worth $105,000.00, especially in Dana Point.

With a typical 30-year loan, most of your monthly payment goes toward interest payments with only small amounts going to the principle in the early years. Only half the principle is repaid in the first 23 years of the loan. You can build Dana Point home equity faster by choosing a 15-year loan instead of a 30-year loan.