Haunted House For Sale

Home For Sale:  6 bedroom, 6 bathroom, 6666 square feet.  Located on dead end street.  Features include: dungeon complete with torture chamber, (stretching rack is negotiable).  Spacious kitchen with fireplace large enough to hold your cauldron.  Plenty of storage under the stairs.  Master bedroom has walk in closet (skeletons do not convey).  Hidden staricases and rooms for when you need to get away from it all.  Lighted tunnels lead to fully equipped labratory.  Beautiful views of your own private cemetary.  This is the deal of a lifetime. 


Agents:  Please contact owner for confirmed appointment to show, werewolf on property not known to bite.  Showings only between 11:00PM and 1:00AM.

2011 Home Affordability Refinance Program (HARP)

I am trying to get the word out regarding the recent revamped HARP program.  This program started in 2009 and is also known as the government Home Affordability Refinance Program.  They have made some significant changes in the 2011 program.  Please share with anyone who owes more on their home than the current value and who could benefit from reducing their interest rate.

Here are the details.

1.  Your loan must be backed by Fannie Mae or Freddie Mac in order to be eligible.  Many times homeowners are not even aware their mortgage is Fannie Mae or Freddie Mac.  If you are unsure please visit Fannie Mae at Fannie Mae Lookup and Freddie Mac at Freddie Mac.  You will need to type in your address in both sights to see if you have a Fannie or Freddie loan.

2.  Your current mortgage must have originated before June 1, 2009.

3.  Your home loan must be paid on time for the last 6 months and at least 11 of the most recent 12 months.

4.  You must NOT have used the HARP program previously

5.  The new HARP program specifically has no loan-to-value restriction so that homeowners in California can take advantage of it.  You can be seriously upside down, your home worth far less than what you owe on it and you will still be able to refinance under this program.

6.  You will be able to use any participating HARP lender, you do not have to stay with your current lender.

7.  You can refinance investment/rental properties, second/vacation homes, condos and of course single family homes.

8.  Income verification is required and you must qualify for a loan.  Income and credit will be verified.

Finally there is some relief for some homeowners who owe more on their home than their home is worth.  While this program will not reduce the principle amount it does give you the opportunity to refinance at today's low interest rates.  If you need any assistance or have any questions, feel free to give me a call.  If you know of anyone who might benefit from this revised program, please pass it along.

Home Inspections when Buying a Home

With the number of bank owned properties on the market today, getting a home inspection is even more important. Banks are exempt from providing buyers with the typical disclosures a seller would provide. They will not provide the Transfer Disclosure Statement which a seller fills outs and answers questions about the property, among others. The banks must disclose anything they know about the property but in many instances they do not know any of the homes history. Even in a transaction where there is a "regular" seller who has lived in the home, you need to consider the source of the disclosures. You need to keep in mind that the seller is trying to put the property in the best possible light to a potential buyer. It is imperative that you have the property inspected by a qualified inspector so you are aware of any defects before they purchase the home.

There are steps to this process, the first being the offer to purchase itself. Your offer should include an inspection contingency that allows you to inspect whatever you would like. Some inspections you may want to consider are a pest inspection, general home inspection, well inspection, septic inspection. It really depends on what is important to you. If boundaries are important, get the property surveyed. Does there appear to be drainage issue?  Get it checked out. If you are considered about permits go to the county and pull the permits. If the general inspector says the roof is questionable get a roofer out there to check it out and give you a bid. I have a list of well over 20 inspections that you may or may not want to have performed. Do whatever it take so that you feel comfortable moving forward with the purchase.

This being said you also need to understand that the inspections must not harm the property or you must pay to put the property back into the original condition. For example, if there is evidence of water damage on the ceiling of a room below a bathroom, it may be necessary to remove drywall to see if there is an active leak. You would need the homeowner’s permission before you go tearing into walls and you would need to put it back into the same condition or work something out with the seller in advance. So when you write your offer make sure there is a broad inspection contingency.

You will also need to establish in the offer the amount of time you will need to get the inspections done. The standard time allowed is 17 days. This may seem quick but for the most part the inspectors are aware of the time constraints and will get things done very quickly. It is important that you understand that once your offer is accepted and escrow is opened things will move quickly. You will be very busy the first couple weeks of escrow. Your lender will be asking for items to complete the loan. You will be scheduling and attending inspections. I will be going over disclosures and escrow paperwork with you. You must remember that there are deadlines built into the contract that you must adhere to. Make getting all the necessary inspections done a priority.

One of the biggest objections I hear to doing an inspection is that it will cost the buyer money. This is very true. The buyer is responsible for paying for their inspections. However some inspections may be negotiable. You can request in the offer that the seller pay for some inspections for example the termite, septic or well inspections. But you need to remember you might be competing against other offers and the more you ask for the less likely the seller is to accept. I also like to remind my buyers that spending $400 or so for a home inspection is money well spent, especially if a fatal defect is discovered. This is probably the biggest investment you will make and a home inspection could save you a lot of money. It is best to know what you are buying.

The purpose of the home inspection is for the buyer to know the condition of the property so you can make an informed decision as to whether or not you want to continue with the purchase. The home inspection is not meant to create a shopping list of repairs you expect the seller to perform. While you can submit a request for repairs to the seller before doing so you need to limit your requests to "deal breakers". These are items that must be done in order to feel comfortable with moving forward. I have seen buyers use the inspection report to come up with a laundry list of repairs and upgrades they wanted. The seller's response was "tell them to go buy a brand new house or raise their price by $100,000". The seller is under no obligation to even respond to your request for repairs. The inspection is meant to help you decide if you want to purchase the property or walk away.

You may have been searching for a year and this is your dream home. You may have written numerous offers and been outbid or waited around for short sale approval that never came but no matter what, do not let your emotions cause you to cut corners. Yes it is nerve wracking and I understand you really want the home to check out. I have seen buyers devastated after doing a home inspection and discovering the well was bad and they could not purchase the property. It took a little bit for the sting to go away but in the end they were very happy they found out before they moved in and yes, they found another home and are perfectly happy. Do the home inspections so you know what you are buying and you can have some peace of mind.

Release the Shadow Inventory

As many of you know I was on vacation last week.  When I returned to work yesterday I was struck by the lack of new real estate inventory in El Cajon.  There are currently 282 single family detached homes for sale in all of El Cajon.  If I search for a property under $300,000 there are only 89 properties.  I am currently working with 14 buyers in this price range.  When I start narrowing the search by specific area of El Cajon, number of bedrooms needed, and the required condition needed to satisfy an FHA loan, there is really not much to choose from.  Yesterday more listings went into contingent or pending status than came on the market.  Which shows the inventory is continuing to shrink.

We have all heard the media discuss the "shadow inventory".  Much of the shadow inventory is comprised of homes that the banks have foreclosed on and now own.  Recently there has been discussion on the banks renting these properties rather than flooding the market.  Renting these properties is not the way to go.  This will just put off the selling process and slow the recovery.  The banks need to start releasing the properties they have so the buyers can take advantage of the low interest rates and have a better selection of properties.  I am not saying they should flood the market and drive prices down but they should increase the number of properties they currently have on the market to come in line with the demand.  What are they waiting for?  Are they dripping the properties onto the market to try and drive up the price and make themselves more money?  This is not going to work.  Buyer's right now are willing to wait for the right property.  They are aware the banks are sitting on a ton of properties that at some time will have to be sold.  By not releasing more of the inventory they hold, the banks are simply forcing the real estate market to become stagnent.  They need to remember they are in the business of lending money not property management.

The banks are also selling properties in bulk as opposed to listing the properties on the MLS where most families and individuals purchase homes.  This practice excludes regular folks from being able to have access to the properties the banks own.  Investors can purchase these bulk holdings but not people looking to buy their first home.  This makes it even more difficult for a buyer to find a home. Many times when an investor buys the properties they become rentals rather than owner occupied homes.  This can negitively effect the community.  Some investors are starting to flip these properties, meaning rehabing the properties and then reselling.  They are sold at a higher price once they are updated and many times the property is then priced out of reach for a first time buyer.

Most agree that now is a great time to buy.  Prices have come down to a reasonable level, interest rates are at an all time low.  The home affordability is at it's highest level in years.  But yet there are so many who want to buy but can't because there is not much inventory on the market.  The banks need to release some of the shadow inventory.  Let's allow the market to recover and get these properties sold to individual owners.

El Cajon Monthly Real Estate Report - September 2011

October is here, so that means it must be time for the El Cajon real estate market report for September 2011. Below you will see the number of active, pending and homes that sold in Septmeber 2011. I have included single family detached homes only for the 3 zip codes in El Cajon

92019
There are currently 81 active real estate listings in El Cajon zip code 92019 ranging from $200,000 for 3 bedrooms, 2 bathroom, 945 square feet to $1,875,000 for 4 bedroom, 6 bathroom, 5890 square feet.

55 properties are pending, currently in escrow.

26 properties sold in September (closed escrow). Ranging from $203,935 for 3 bedroom, 2 bathroom, 1008 square feet to $750,000 for  4 bedroom, 3 bathroom, 3430 square feet. The average time on the market was 35 days.

92020
There are currently 83 active real etate listings in El Cajon zip code 92020 ranging from $166,500 for 3 bedrooms, 2 bathroom, 948 square feet to $1,015,000 for 4 bedroom, 3 bathroom, 3175 square feet.

43 properties are pending, currently in escrow.

26 properties sold in September (closed escrow). Ranging from $176,000 for 3 bedroom, 2 bathroom, 1152 square feet to $668,000 for  5 bedroom, 4 bathroom, 3049 square feet. The average time on the market was 56 days.

92021
There are currently 106 active real estate listings in El Cajon zip code 92021 ranging from $140,000 for 2 bedrooms, 1 bathroom, 681 square feet to $1,550,000 for 3 bedroom, 3 bathroom, 5500 square feet.

50 properties are pending, currently in escrow.

32 properties sold in September (closed escrow). Ranging from $184,000 for 3 bedroom, 2 bathroom, 1040 square feet to $677,990 for  3 bedroom, 3 bathroom, 3176 square feet. The average time on the market was 60 days.

Here is the El Cajon real estate trending report.

Jamul Real Estate Market Report - September 2011

We have started a new month so that means it must be time for the Jamul real estate market report for September 2011. Below you will see the number of active, pending and homes that sold in Septmeber 2011. I have included single family detached homes only. 

There are currently 31 active real estate listings in Jamul ranging from $169,000 for 4 bedrooms, 3 bathroom, 1795 square feet to $1,300,000 for 3 bedroom, 2 bathroom, 1102 square feet.

11 properties are pending, currently in escrow.

7 properties sold in September (closed escrow). Ranging from $175,000 for 2 bedroom, 2 bathroom, 1499 square feet to $856,000 for 6 bedroom, 6 bathroom, 5523 square feet. The average time on the market was 139 days.

Here is the Jamul real estate trending report.

Alpine Real Estate Report - September 2011

Here are the real estate market statistics for Alpine.  Below you will see the number of active, pending and homes that sold in Septmeber 2011.  I have included single family detached homes only.  Condos are not included. 

There are currently 87 active real estate listings in Alpine ranging from $136,250 for 2 bedrooms, 1 bathroom, 768 square feet to $2,595,000 for 3 bedroom, 3 bathroom, 3000 square feet.

30 properties are pending, currently in escrow.

16 properties sold in September (closed escrow).  Ranging from $149,900 for 2 bedroom, 1 bathroom, 1092 square feet to $875,000 for  bedroom, 5 bathroom, 4534 square feet.  The average time on the market was 92 day.

Here is the Alpine real estate trending report..