The Shifting Market

Point Loma San Diego RealEstate                   

The Shifting Market Part 1

The market is shifting once again. Here is some advice for both sellers and buyers as we all navigate through the changing market.

Advice For Buyers:

Be Patient. Whether a hot or cold market, buyers don’t need to rush to get into a property. There is still a lot of time, maybe 1-2 years, before the interest rate and prices start to rise. If the buyer doesn’t find a property now, there is every chance of finding it down the road, especially as banks release more foreclosed properties into the market. There has also been a slow increase in new construction.

Check the Comps. Ask your Realtor to check what has sold in the last six months, in the neighborhood, before making an offer. Compare the sold properties to the property you are interested in, comparing bedrooms, bathrooms, location and condition, etc.

Know your maximum limit and stick with it. Before making an offer, the buyer needs to know what their highest amount is that they can offer, especially in case there is more than one buyer making an offer on the same property. The seller may counter, giving the buyer an opportunity to submit their highest and best offer. If there is no competition, the buyer may consider an offer below the list price.  But as stated before, check the comps.

Get preapproved for a mortgage. In this market every offer is to be accompanied with an approval letter from the lender. Buyers who have gone through the process are considered better candidates when making their offer. Sellers will seriously consider the offer that has a preapproval from the lender as opposed to offers that do not, even if the offer price is lower. Once a buyer is preapproved the Realtor can show properties within their price range.

Look for “Advice For Sellers” next month.

Real Estate Property inPoint Loma San Diego CA                      

For more properties, clickhere.

Determining Market Value

Point Loma San Diego Real Estate                   

Determining Market Value of Your Property

How we determine market value of your property IS based and NOT based on many criteria.

The market value of your home IS NOT based on:

·         What you have in it

·         What you need out of it

·         What it is appraised for

·         What you heard your neighbor sold their home for

·         What the assessor’s office says it is worth

·         What the insurance company has it insured for

·         Based on the memories or sentiment you may have in it

·         Or based on the price of homes in the area where you are moving

The true market value of your home is: What the buyer is willing to pay for the property today:

·         Based on today’s market

·         Based on today’s competition

·         Based on today’s financing

·         Based on today’s economic conditions

·         Based on the buyer’s perception of property condition

·         Based on location

·         Based on normal market time

Because these factors are always changing, periodically the list price of the property will need to be modified.

As a Seller you control:

·         The price you ask

·         The condition of the property

·         Access to the property

As a Seller you do not control:

·         Market conditions

·         The motivation of your competition

·         Market value

As you consider your next move, be it selling or buying, be sure to consult a Real Estate Professional, like myself. In this ever changing real estate market, it is important to have someone who is knowledgeable in the changes of the market in order to advise and help the seller determine the best asking price or buyer determine the best offer.    Should you or someone you know need the services of a Real Estate Professional, like me, I would appreciate the opportunity to be of service.

 Real Estate Propertyin Point Loma San Diego CA                       To see property click here

Short Sale Misunderstanings

PointLoma San Diego Real Estate                   

Short Sale Misunderstandings

2012 has been dubbed the year of the short sale. It is important to get correct information to know how to proceed.

1.      The homeowner must be delinquent in their monthly payments in order to allow the short sale.

NOT SO: This may have been true, but not in 2012. There does need to be a legitimate reason for the short sale: loss of job or income, health or medical issues, divorce, etc.

2.      Foreclosure is what the banks would prefer to do rather than approve a sort sale.

NOT SO: Banks would prefer not to foreclose as it may cost the bank more money per transaction. It actually costs them less to do a short sale than to foreclose.

3.      The seller must be pre-approved by their lender to be able to do a short sale.

NOT SO: Most lenders will consider a short sale. Each bank will have their own process to follow which needs to be followed carefully in order to have a successful short sale transaction.

4.      Short sale transactions never close.

NOT SO: Short sales do close.

5.      Short sales take months and months and months to close.

NOT SO: Lenders are striving to refine the short sale process so as to take less time to close. Good communication between the homeowner, the agent and the bank is key to a successful close.

6.      The homeowner will have damage incurred to their credit as compared short sale and foreclosure.

NOT SO: Many times the credit consequence is more damaging in a foreclosure as compared to the short sale. Financial recovery can come quicker when proceeding with a short sale.

7.      After a short sale the homeowner will not be able to purchase property for the next 5-7 years.

NOT SO: Depending on the lender, some folks have been able to purchase property in as little as 24 months.

8.      The homeowner will receive a 1099 after the short sale transaction and must declare the loss as income.

NOT SO: The will receive a 1099, but because of the Mortgage Forgiveness Debt Relief Act, the homeowner may not owe any taxes.

9.      The homeowner will be sued by the lender after the close of the short sale for the deficiency.

NOT SO: California has certain anti-deficiency protections in place, depending on the circumstances.

10.  There is no need for additional training for the agent to learn about the short sale process.

NOT SO: It is important to keep updated on the short sale process to ensure a successful close for the homeowner.

 Whatever the circumstance be sure to ALWAYS seek legal and tax  advice to ensure the consequences to your situation.

 

RealEstate Property in Point Loma San Diego CA          For more properties click here.            

First Impressions

Point Loma San Diego Real Estate                   

CURB APPEAL

As we approach the season of sunny, warm weather, it is a good time to work on projects for the exterior of your home, especially as you consider putting your property on the market. Looking at the property from the eyes of potential buyers, you may want to consider some landscaping or other areas for an upgrade.

There are projects that won’t break the bank nor will a remodel be required nor totally re-landscaping the yard. Here are but a few easy projects that will not take a long time to accomplish.

~Replace the mailbox. Over time, mailboxes start to look worn and rusty from all the exposure to the weather. Replacing the box is an easy fix. Or you might think about building a permanent structure that covers the mailbox, protecting it from the weather.

~Lights. Adding or upgrading the lights on the porch or along the walkway or even the driveway can  add  a  welcome home feeling to the property. The added light can also add to the security of the home. The soft glow of the lights in the evenings is inviting.

~Landscape. There are so many places to add flowers or small bushes to the front of the home. Flowers can be put into window boxes for the front windows. Decorate the walkway or driveway with small bushes. Flower pots can be put anywhere in the front of the home and can be moved around for a change. A small, decorative fence can line the driveway. There are many, inexpensive ways to add to the landscaping of the home.

~Windows. If you are thinking about a bigger project, then you might consider replacing the windows. This can be the best home improvement you make to the property. Not only will it look great, it will save with energy costs as well. There are a variety of vendors, easily found online, to choose from. Plus, they do all the work!

Spring is the season for cleaning, de-cluttering the house and yard and garage. It not only feels good to get it accomplished, but will add to the appeal of the property as potential Buyers walk through.

Real Estate Property in Point Loma San Diego CA                      

To search for homes click here.

Carbon Monoxide Detectors

Point Loma San Diego Real Estate                   

Important to Know……

Senate Bill 183 Lowenthal (SB183) created the Carbon Monoxide Poisoning Prevention Act of 2010 (Act). The Act requires carbon monoxide (CO) detectors to be installed in every dwelling unit intended for human occupancy. A CO detector is a device that detects the presence of CO and emits a loud noise to alert occupants that CO is present in order to prevent CO poisoning. Detection in a home environment is impossible without a warning device because CO is odorless, tasteless, colorless, and invisible. It is often referred to as the “silent killer” because it is virtually undetectable without using a carbon monoxide detector.

Placement and location of carbon monoxide detectors in the dwelling is not clearly spelled out in the Act. This may be determined in the packaging of the carbon monoxide detector which can be purchased at any hardware or home store. Installation locations may vary depending on the manufacturer and depending on the type or design of the detector. Since instructions will be specific to the carbon monoxide detector you purchase, be sure to read all of the instructions before attempting to install the device.

There are some general guidelines regardless of which type of carbon monoxide detector you use:

·         CO devices should be placed on every level of the property

·         CO devices should be placed within 10-15 feet outside of each individual sleeping room

·         CO devices can be placed on the wall or the ceiling, depending on packaging placement instructions

·         CO devices should not be placed where children or pets can get to them and may do damage

·         CO devices should not be placed in areas of direct sunlight or areas of extreme temperatures

·         CO devices should not be placed behind anything that will obstruct or inhibit the device from working properly

For more information you can explore the website of the Center for Disease Control and Prevention:

http://www.cdc.gov/co/

Real Estate Property in Point Loma San Diego CA                      

To find property in the Point Loma area click here

Looking To Sell? Part 2

Point Loma San Diego Real Estate CA

Looking To Sell? Part Two

     

6. Stage Your Home: In order for the Buyer to see all the possibilities of each room in the home, it is a good idea to set the stage. Pack away the nick knacks or any decorations that might take away from seeing the home. Take down wall decorations or pictures. This will help showing the true size of the rooms as well.

7. Do Not Hover: So that the potential Buyer does not feel uncomfortable, it is a good idea for the seller to be gone from the property during showings or an open house. This way the Buyer can take their time as they consider whether this is the home for them.   

8. What is Next? Be ready for the next move. Are you going to buy another property? Are you going to rent a property for an extended time? You want to leave yourself plenty of time to make these arrangements. You may have a Buyer that will want to move into the property in a very short time period. You want to be ready so that the next move is as stress free as possible.

9. Flexibility is a Key Factor: Today’s market can pose many challenges for the Seller. Some markets have seen price declines and fewer buyers. The willingness to be flexible on both price and terms, and a willingness to negotiate, may ensure a sale that happens sooner than later or not at all. 

      

10. Stay Positive: In spite of today’s market, stay focused on the positive side. Pay attention to the feedback from potential buyers and your agent.  Most importantly, hang in there! Don’t be discouraged. There is a Buyer for your property.

Whether you are downsizing, moving up, avoiding foreclosure, moving closer to the job or schools, keep these tips in mind.  Your agent will help to make the process as stress free as possible.

Real Estate Proerty in Point Loma San Diego CA     

For more properties in this area click here               

Looking to Sell? The First in a 2 Part article: Helpful Advice

Point Loma San Diego Real Estate   

Helpful Advice for Sellers

The real estate market is constantly changing and poses many challenges for the seller. Selling is not a bad idea. The best price you get is the one you will get now.

1.       Make sure to employ a professional. With the constant changes in the real estate market, you will want someone who can help competitively price your property, work their plan of action to get the property sold, attract potential buyers and navigate through the contracts and paperwork.

2.       Disclose, Disclose, Disclose. All known facts about the property must be disclosed to the potential buyer. When in doubt, disclose.

3.       Determining Value. The market value of your home is not what you have in it or what you need out of it or based on memories or what the neighbor says. The true market value of home is what a buyer is willing to pay based on today’s market, competition, financing, location and condition. A property priced correctly from the beginning will have a much greater chance of getting offers. An overpriced property will go unseen.

4.       Keep emotion out of the equation. Sellers who attach too much sentimental value to the property experience missed opportunities to consider offers. Buyers will not recognize the value as the seller does. It becomes more difficult for the seller to make wise decisions.

5.       Stay Tuned. The professional you have hired will guide you through the marketing and paperwork of the sale, but it is important the seller understands the process and the contracts and disclosures involved.  Communicate often. Ask questions. Be involved in the process.

Stay tuned to next month’s blog for five more thoughts on Helpful Advice for Sellers.

As you consider your next move, be it selling or buying, contact me and let the journey begin.

Real Estate Property in PointLoma San Diego CA                      

To find homes in the Point Loma area CLICK HERE.