I recently worked with a buyer and it reminded me of a pattern that I so often see. When people first decide to buy a home they are very excited and sometimes have unrealistic expectations. I start them off by helping them get pre-approved with a lender. This is very important since the lending requirements have changed so much in recent years. It is important that they know how much they can afford and what their payments will be. The buyers in this scenario are prequalified for up to $300,000 and they were comfortable with the associated payment. We are good to go.
I start to send them some active listings that are within their price range and meet their other requirements. Pretty soon, they find a couple of properties they want to take a look at. They are so excited to be on the hunt for their home and they are oozing with anticipation, dreaming of the great properties that await them. They have heard how the rices have dropped so significantly and are ready to snatch up their gem. I try to keep them in reality but at the same time not douse their excitement. I schedule the appointments and off we go.
We are scheduled to see 5 properties and the buyer's know their dream home will be one of them. I have explained to them that the houses in their price range are going to need work. They say they understand and do not mind a fixer but the area and square footage are the most important. When we pull up to the first property the curb appeal is less than ideal but the buyers look past it thinking it would not be difficult to bring it back to all it's glory. We go into the property and are hit with a musty, dirty carpet smell which is quickly written off to being closed up. As we tour through the property their hopes are dashed as they find not only does the carpet need to go but the floors in the kitchen and bathrooms are vinyl not tile, the cabinets are knotty pine not sleek dark wood, the counters are tile with missing grout not granite, and there is a small wall heater not central heat and air. You can see the disappointment on their faces. They try and remain perky and assume the next properties will be better. I remind them that homes in their price range in this area will all need work. But they think I am crazy. They have heard in the news how desperate people are to sell, how much prices have come down.
This story continues as we view the remaining homes. All of the properties are in need of work and updating. The chipper mood of the buyers has faded and they have decided the sellers of these properties are unrealistic and out of their minds. They do not think the houses they saw would sell at the list price. They consider putting in what they would consider a fair offer on one of the homes. Because of the amount of work that they feel needs to be done to put it in the condition they want they want to submit an offer for $120,000 under the list price. What the buyers do not understand is that these homes are priced for their condition and pretty much at market value. Unfortunately market value is not determined by how much they can afford.
The end of the story is that the buyer's did submit a low offer on the property even after seeing the comps and what they were selling for. They did not get the property because multiple offers came in at or above the list price. It took the buyers awhile to get over the sting that their offer was unacceptable but eventually they did. They became more realistic with what they would get for their $300,000 and made some changes to their search requirements. It took awhile but we found it and they just closed on their new home. It may not have been their dream home but it was a home that they could afford and would love. It was their reality.
Monday, January 30, 2012
Monday, January 23, 2012
I Want To Buy A Home - Where Do I Start?
So you have been listening to the news and have heard all about the affordability of homes and the incredibly low interest rates. You are thinking that the housing market is beginning to recover and you are beginning to realize there may not be a better time to buy a home than now. If you are like 85 - 90 percent of home buyers, you have even started to search for and look at properties on the Internet. You have used a mortgage calculator and you like the payments you are being shown and see that buying a home is a good financial move. Now you are wondering how to start the process of actually finding and purchasing a home.
This is a scary point for many. The idea of buying a home can be scary in and of itself. The idea of the paperwork and process of buying a home can be downright terrifying. You are not alone. Many feel overwhelmed at this point. Just remember, tons of people buy homes everyday and you can too! Luckily for you there are professionals here to assist you through the entire process.
To start contact a real estate agent, (preferably Me!), to discuss what you are looking for in a home. I will want to know what areas you are considering, how many bedrooms, bathrooms, approximate square footage and lot size, etc that you would like. I also want to find out other specifics that appeal to you. This will assist me in better understanding what you are looking for and help me tailor a search for you. I will set up an automatic search that will email you as soon as new properties that meet your criteria come on the market. Let's face it, the good ones go quickly! This does not cost you anything! You do not pay me out of your pocket. See, when a homeowner decides to sell their home they will contact an agent (preferably me!) and "list" the home for sale. At that time a contract is done and the seller agrees to pay a commission. Typically half of the commission goes to the list agent and the other half goes to the buyer's agent (Me, your agent!) You do not pay me.
The second thing you need to do after calling me is to contact a lender. I have a list of some I have worked with in the past, to help get you started. You need to contact a lender and get prequalified. The lender will take your information and run your credit. They will then show you some different loan possibilities and tell you how much you qualify for. This is imperative. You need to know how much you can comfortably afford before you go out shopping for a home. There is nothing worse than falling in love with a house that you can not afford. Also, home sellers will not consider an offer without a pre-qualification from a lender. They want to know you can afford the home. You need to get this done before you start shopping otherwise you run the risk of finding you dream home and not being able to put an offer in on it and someone else getting the home.
Once we have the search parameters set and you have your pre-qualification letter then the fun begins. You look at the listings I send you. When you see one that interests you, you let me. I will find out more information about the property and I schedule a time for you to see it. We look at properties until we find one that you want to put an offer on. See, not so hard, with my help you can do it. I will answer all your questions and help you through the entire process of writing an offer and going through escrow. You are not alone. So, what are you waiting for? Give me a call to get started!
This is a scary point for many. The idea of buying a home can be scary in and of itself. The idea of the paperwork and process of buying a home can be downright terrifying. You are not alone. Many feel overwhelmed at this point. Just remember, tons of people buy homes everyday and you can too! Luckily for you there are professionals here to assist you through the entire process.
To start contact a real estate agent, (preferably Me!), to discuss what you are looking for in a home. I will want to know what areas you are considering, how many bedrooms, bathrooms, approximate square footage and lot size, etc that you would like. I also want to find out other specifics that appeal to you. This will assist me in better understanding what you are looking for and help me tailor a search for you. I will set up an automatic search that will email you as soon as new properties that meet your criteria come on the market. Let's face it, the good ones go quickly! This does not cost you anything! You do not pay me out of your pocket. See, when a homeowner decides to sell their home they will contact an agent (preferably me!) and "list" the home for sale. At that time a contract is done and the seller agrees to pay a commission. Typically half of the commission goes to the list agent and the other half goes to the buyer's agent (Me, your agent!) You do not pay me.
The second thing you need to do after calling me is to contact a lender. I have a list of some I have worked with in the past, to help get you started. You need to contact a lender and get prequalified. The lender will take your information and run your credit. They will then show you some different loan possibilities and tell you how much you qualify for. This is imperative. You need to know how much you can comfortably afford before you go out shopping for a home. There is nothing worse than falling in love with a house that you can not afford. Also, home sellers will not consider an offer without a pre-qualification from a lender. They want to know you can afford the home. You need to get this done before you start shopping otherwise you run the risk of finding you dream home and not being able to put an offer in on it and someone else getting the home.
Once we have the search parameters set and you have your pre-qualification letter then the fun begins. You look at the listings I send you. When you see one that interests you, you let me. I will find out more information about the property and I schedule a time for you to see it. We look at properties until we find one that you want to put an offer on. See, not so hard, with my help you can do it. I will answer all your questions and help you through the entire process of writing an offer and going through escrow. You are not alone. So, what are you waiting for? Give me a call to get started!
Monday, January 16, 2012
4 Bedroom El Cajon Home For Sale
Are you looking for a 4 bedroom home to purchase in El Cajon? Here is a good opportunity for you to get a jump on the competition. This home is not yet in the MLS, I am giving you the first shot. This is a 4 bedroom, 2 bathroom, 1650 square foot home, listed for an affordable $299,000. It was built in 1981 and is located on quarter acre. This is a regular equity sale, no banks to deal with!! Can close quickly. More pics and information
Call me today for all the details. I will be entering the listing into the MLS later today.
Friday, January 13, 2012
San Diego Martin Luther King Jr Parade - 2012
Here is a good link that provides the details for this Satuday's Martin Luther King Parade in San Diego. Get out there and enjoy! Parade Link
Wednesday, January 11, 2012
Mortgage Debt Forgiveness Act
In 2007 the Mortgage Debt Forgiveness Act when into effect. Before the enacting of this Act if you had mortgage forgiveness from your lender this amount that was forgiven was taxable. If you did a short sale and your lender accepted a sales price of less than what was owed on your home, you were taxed on the amount you were short. It was considered income. The Mortgage Debt Forgiveness act changed this. You no longer had to pay taxes on the amount you were short. This applies to tax years 2007-2012. It is scheduled to expire at the end of 2012.
What does this mean to you? Well, if you are considering doing a short sale, you may want to do it sooner rather than later. There is no way to tell if this act is going to be extended past the 2012 deadline. If you do a short sale and close before the end of 2012 this debt may be excluded and not taxed. If you wait and close after the end of this year the amount of debt forgiven may be taxable. I know I would not want to pay tax on such a large sum of money!
Another thing to consider is that short sales are time consuming. Do not wait to initiate the short sale until the end of the year. The escrow must close before for the end of 2012 for the debt forgiveness to apply. Let's look at a typical short sale to give you an idea of when you should start in order to close by the end of the year. In El Cajon, the average time on the market is 80 days, short sale approval (the time you wait for the lender to review your financials and any offers) can take 3-6 months depending on the lender, how quickly you can compile documentation, how responsive the negotiator is and so on. Once you get the short sale approval, a typical escrow is 30-45 days. So, so you are looking at 10 months from start to finish on a short sale. If you want to give yourself a realistic chance to be eligible for the debt forgiveness you need to get started by the end of February of this year.
If you would like more information about initiating a short sale please call me today. Do not wait and risk not being eligible for the savings. If you would like more information regarding the Mortgage Forgiveness Act, here is a link to the IRS website.
What does this mean to you? Well, if you are considering doing a short sale, you may want to do it sooner rather than later. There is no way to tell if this act is going to be extended past the 2012 deadline. If you do a short sale and close before the end of 2012 this debt may be excluded and not taxed. If you wait and close after the end of this year the amount of debt forgiven may be taxable. I know I would not want to pay tax on such a large sum of money!
Another thing to consider is that short sales are time consuming. Do not wait to initiate the short sale until the end of the year. The escrow must close before for the end of 2012 for the debt forgiveness to apply. Let's look at a typical short sale to give you an idea of when you should start in order to close by the end of the year. In El Cajon, the average time on the market is 80 days, short sale approval (the time you wait for the lender to review your financials and any offers) can take 3-6 months depending on the lender, how quickly you can compile documentation, how responsive the negotiator is and so on. Once you get the short sale approval, a typical escrow is 30-45 days. So, so you are looking at 10 months from start to finish on a short sale. If you want to give yourself a realistic chance to be eligible for the debt forgiveness you need to get started by the end of February of this year.
If you would like more information about initiating a short sale please call me today. Do not wait and risk not being eligible for the savings. If you would like more information regarding the Mortgage Forgiveness Act, here is a link to the IRS website.
Tuesday, January 3, 2012
Real Estate 2011 Shape Up
Happy New Year everyone! I am sure many of you heard that houses did not sell in 2011 but the reality is they did. Maybe not as many as in previous years but homes were definately bought and sold. Here are the numbers for some east county neighborhoods. This is only for single family homes that sold through the MLS. I did not include condos, land or commercial properties.
Alpine 91901, 180 properties sold, $149,900-$1,100,000
Jamul 91935, 89 properties sold, $105,000-$1,200,000
El Cajon 92019, 334 properties sold, $151,000-41,317,740
92020, 316 properties sold, $125,000-$905,000
92021, 344 properties sold, $80,000-$840,000
La Mesa 91941, 287 properties sold, $140,000-1,300,00
91942, 257 properties sold, $160,000-$610,000
Spring Valley 91977, 540 properties sold, $115,000-$635,000
91978, 68 properties sold, $137,000-$529,000
Santee 92071, 422 proerties sold, $130,000-$820,000
Alpine 91901, 180 properties sold, $149,900-$1,100,000
Jamul 91935, 89 properties sold, $105,000-$1,200,000
El Cajon 92019, 334 properties sold, $151,000-41,317,740
92020, 316 properties sold, $125,000-$905,000
92021, 344 properties sold, $80,000-$840,000
La Mesa 91941, 287 properties sold, $140,000-1,300,00
91942, 257 properties sold, $160,000-$610,000
Spring Valley 91977, 540 properties sold, $115,000-$635,000
91978, 68 properties sold, $137,000-$529,000
Santee 92071, 422 proerties sold, $130,000-$820,000
Subscribe to:
Posts (Atom)
AddThis
