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Archive for the ‘Homes For Sale’ Category

What Does A Seller Need To Do During Escrow?

14 Feb

Escrow has been opened by your listing agent, now comes the paperwork.  Your Realtor will have you fill out and sign all the necessary disclosures that you as the owner are required to do according to the California Purchase Contract.

1. Transfer Disclosure which allows a Seller to state the items and condition of the property.

2. Water heater/smoke alarm disclosure which tells a Buyer that you have properly installed and strapped the water heater and installed smoke alarms as needed.

3.  Lead Based Paint Disclosure if your house was built before 1978.

4. Seller Property Questionnaire goes in to detail about any repairs made to the property, deaths that might have occurred in the last 3 years, any neighborhood noises and any other known material fact.

5. Termite inspection report and completion of work report.

6.  Natural Hazards Disclosure stating where flood, earthquake, fire zones are located in the area of the property.  This is a report supplied by a reputable company and paid for by the Seller.

7.  Most Real Estate agencies have their own local disclosures that include a myriad of things.

8.  The escrow instructions also need to be signed and sent back to the escrow officer.

The California Purchase contract allows 17 days for the Buyers to conduct all inspections.  As the Seller, your part is to allow access to your home for any and all inspections.  The inspections are all at the Buyer’s expense.  After the inspections are complete and the Buyers are satisfied as to the condition of the property, they might have a Request for Repair list of items that they would like you to fix. This is a negotiable thing and quite frankly a part of the process where communications between both parties can break down.   Remember, the Buyers think they are paying top dollar for your home while you, the Seller think that the Buyers are getting a “deal” on your beautiful home.  Fairness always wins out.

Once the 17 day inspection period is up, your Realtor will ask the Buyer to remove all their contingencies.  In other words, the Buyers will sign the Contingency Removal and that means that they are moving forward with the purchase.  This is a big step for both parties because now there is commitment.

Of course there is packing to do and moving plans to be arranged.  Then about 5 days before the close of escrow the Buyers will request a Final Walk Thru (Verification of Property Condition).  Any repairs that were agreed upon will be checked by the Buyers as will the general condition of the property.  The property needs to be maintained during escrow and kept reasonably in the same condition as on the day of acceptance of the offer.  This is also a great time to talk with the Buyers about how to operate the major components of the home – A/C, heater, pool equipment and sprinklers.   It is also a time to share the gardener’s phone number, when is trash day, etc.

 
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Posted in Escrow, Homes For Sale, market value, Real Estate Update, Seller's market

 

Face to Face – is it still the best way to do business?

13 Feb

For the last week I have been driving past an apartment building on my way to the office with a For Rent sign in front.  An older gentleman in a cowboy hat is sitting on a folding chair next to the sign.  I’ve seen him there in past years but this time I had to stop and talk to him.  I wanted to find out more about him and his way of doing business.

I introduced myself and as I expected, he is the owner and builder of this building with six apartments.  He’s retired and likes to meet the people who will eventually rent from him. He showed me the apartment and we had a great talk about real estate.

Very refreshing!  This is the way real estate used to be done – face to face.  When I received my real estate license 15 years ago, real estate agents would “present” offers to the Sellers in person.  Of course there were no cell phones and email was just becoming popular.  Now days offers are emailed, scanned or faxed back and forth with buyers, sellers and agents never meeting.  Ok, I admit the world works faster now but sometimes I wish I could present my offer to the Seller so that my Buyer would have their offer looked at in a better light.  Investors are snapping up properties that in my opinion should be going to first time buyers.  The investors have cash and “cash is King” so they say.  My buyers want a piece of the action!

 
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Posted in Buyer's market, Escrow, FHA, Homes For Sale, market value, Real Estate Update, Seller's market, Uncategorized

 

Counter Offer

27 Jan

In a past blog post I wrote that in 15 years of real estate I have had less than a dozen offers that I have had my Sellers accept as written.  There is always something to counter offer on a Buyer’s offer.

Everyone thinks that price is the only thing to counter but no contract is perfect and there might be some mistakes that need to be corrected.  There might be escrow and title companies that are preferred to be used by the Seller or agent.  The length of escrow sometimes need to be adjusted.  Maybe the Sellers want to stay in the house a few days after escrow closes in order to finish moving.  Whatever the case might be, put it in writing in the counter offer.

If you, as the Seller, are lucky enough to have multiple offers, you can make different counter offers to the offers.  The counter offers do not have to be the same to all the Buyers.  The Seller has the choice to choose the offer that they want to accept.

 
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Posted in Home inventory, Homes For Sale, market value, Real Estate Update, Seller's market

 

We Have An Offer!

23 Jan

This is such an exciting thing to say to a Home Seller!  All the hard work has paid off.

As a listing agent, the first thing I do is verify all the information on the offer.   The source of funds for the deposit and down payment should be a part of the offer package that the Buyer’s agent has sent over.   A letter of approval from a bank or direct lender should also be in the offer package.  A call to the lender will confirm the ability of the Buyer to purchase the home.  The lender has verified the Buyer’s funds and FICO scores and is willing to give a loan to the Buyer based on the information they have obtained.

With the Buyer’s qualifications verified the offer becomes valid.  The next thing to check are the terms of the offer.  How much is the Earnest Money Deposit (EMD)?  3-5% of the sales price is acceptable.  The length of escrow is important – 30 to 45 days is the most common.   Does the Buyer want the Seller to contribute to the Buyer’s closing costs?  Does the Buyer want a termite inspection and clearance?  What other reports or services is the Buyer asking the Seller to contribute?  And of course, what is the dollar amount offered?

Once the offer is reviewed by the listing agent, a net sheet can be prepared.  The net sheet tells the Seller what amount of money they will walk away with from the sale of their home to this Buyer’s offer.   After all this information has been gathered, a meeting as soon as possible between the Sellers and the listing agent is suggested.  You can strategize with your Realtor and decide if the offer is good enough as it is or if you want to counter offer any of the terms of the Buyer’s offer.  If the offer is not quite what you had hoped for in terms of dollar amount, length of escrow, etc.  don’t fret – Counter offer.

On the other hand, you might have several offers to review.  Now that is a nice problem to have.  You might want to pick the offer that is the highest dollar amount – but will it appraise at that amount?  Maybe you were home when one of the Buyers toured your home and you have a “gut” feeling that they are the right people to buy your home, then go with it.

 
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Posted in Buyer's market, Escrow, FHA, Home inventory, Homes For Sale, market value, Real Estate Update, Seller's market

 

How Many Homes are for Sale?

19 Jan

Its been a while since I posted the number of homes for sale in the Inland Empire/Foothill corridor area of Southern California.  We are two weeks in to 2012 and the news is that home sales are up.  Is inventory up too?  Well not yet but we are about 6 – 8 weeks from the start of the Spring selling season so let’s take a look at how many homes are for sale right now. Why is this important?  For the same reason you get a checkup at the doctor’s office, it’s good to know how healthy you are.

Upland has 207 homes for sale – 61 are short sales and 29 are REO’s (bank owned)

Rancho Cucamonga – 454 homes for sale – 220  short sales and 47 REO

Ontario – 377 homes for sale – 199 short sales and 52 REO

Montclair – 56 homes for sale – 28 short sales and 3 REO

Fontana – 574 homes for sale – 301 short sales and 67 REO

Claremont – 89 homes for sale – 21 short sales and 5 REO

La Verne – 86 homes for sale – 26 short sales and 7 REO

Pomona – 355 homes for sale – 175 short sales and 47 REO

San Dimas – 99 homes for sale – 29 short sales and 11 REO

Total homes for sale – 2297.  Short sales – 1060 and REO – 268

Overall, 46% of homes for sale today are short sales and only 11% are REO, 43% are standard sale.

But wait, didn’t the banks foreclose on 1000′s of homes in southern California the last week of 2011?  Yes, but they have not hit the market yet.  At the end of the 1st quarter we will take another look at the numbers.  Real estate has always been a numbers game,  by keeping track of the numbers we will have a good idea about the health of the real estate market.

 

 
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Posted in Buyer's market, Escrow, FHA, Home inventory, Homes For Sale, market value, Real Estate Update, REO, Seller's market, short sales, Title, total listings

 

Showing Your Home

17 Jan

Show Time!  You have hired the best Realtor in town to represent you on the sale of your home,  the flyers are in the flyer box on the for sale sign post out in the front yard and your Home is clean and ready to show!  Congratulations!  You’ve done it – you are selling your Home!

This big step is exciting and scary all at the same time.  Your phone starts ringing with Realtors wanting to make appointments to bring their Buyers to see your home.  Will they like it?  What will you do?  I firmly believe that it is ok to be home when the Realtor and Buyers come to view your home but that’s it – remove yourself to your garden, the neighbor’s house whatever – just don’t linger around interjecting tidbits that you want to tell them about your Home.  The reason I  think it is ok to be home to greet the prospective Buyers is that sometimes you will get a “feeling” about the Buyers and their agent.  That can go a long way in negotiating the sale.

Sometimes you can’t be home to greet the agent and the Buyers.  That’s ok too.  A Realtor will have a keypad that is registered to them and they will use it to open the lockbox that your agent has placed a key inside.  The great thing about the electronic lockbox is that when it opens it records the agent’s name and time.  When the agent is done showing your home and replaces the key in the lockbox it will record that too.  Your listing agent will have a log of who has been in your home.

On the downside, yes sometimes Realtors will make an appointment and never show up or call.  That is rude to leave you waiting but it is going to happen and the reason it will happen is because maybe the house right before yours was “the One” and the Buyers and their agent rushed back to the office to write an offer on it.  Another possibility is that as they drove up to your home something wasn’t right for them – your home is on a corner (some people love living on a corner – me – and others don’t), maybe it was the neighborhood – don’t worry about it!  There is a Home for everyone!

Since you have priced your home well,  you will have many showings in the first week.  This first 7 to 10 days is the most critical time for your home.  I always say if you don’t have an offer in the first 7-10 days – then your home is not priced well and you should adjust the price.  Now remember I am talking about the Inland Empire/Foothill corridor area of southern California.  The housing market is moving very fast here and this is what you should expect if you are living in Upland, Claremont, Rancho Cucamonga, Montclair, Fontana, Ontario, San Dimas or La Verne.  The supply of homes is low in these cities and Buyers are ready to buy.  Next blog will be about the home inventory in these cities.

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Short Sale Pricing

13 Jan

If you find yourself in the short sale situation, then selling your home is a different story.

You might be receiving letters and postcards from Real Estate Agents talking about listing your home as a short sale.  After all, they have looked at the tax rolls which are public records and the notice of default shows up.   After you have missed 3 months payments the bank will file a notice of default with the county.

Interview 3 Agents to see what they can do for you.  All 3 should tell you the same thing – you must have a hardship to be able to short sale your home.  Without a hardship, the banks will not grant a short sale.  A hardship is loss of employment, death, divorce or illness.  In other words, an event that caused you to get behind in your payments.  Loss of equity does not qualify you to short sale your home.  Sorry if someone has told you otherwise but claiming a hardship and proving it will be necessary.  You will be asked to write a hardship letter that will be submitted to the bank(s).

If you have a true hardship, the banks will also require that you give them copies of your last 2 years tax returns, current paycheck stubs and two months bank statements.  Make copies and give them to the Real Estate Agent that you have chosen.  They will have to prepare a short sale package to go along with an offer.

When you go to price your home, the best advice I can give is to go with Market Value.  Some agents prefer to price a little under market value to create a buzz about your home so that you will have multiple offers to choose from.  During the time that you are waiting for your home to be approved for a short sale, the bank(s) will send out an appraiser.  The bank will want to know the value of your home.  Hopefully the offer you and your Agent have sent to the bank will be the same amount that the bank’s appraiser tells them that it is.  Otherwise, they will have you adjust it.

 

 
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Posted in Homes For Sale, Real Estate Update

 

Price Your Home At Market Value

11 Jan

Market Value – what is that?  Real Estate 101 defines market value as the price, a ready willing and able buyer is prepared to pay for a home.

Another definition:  The sale price at which a property would change hands between a willing buyer and willing seller, both having reasonable knowledge of the relevant facts.

And another definition:  Fair market value is the value of a property, based on what a knowledgeable, willing buyer would probably pay to a knowledgeable, willing seller in the real estate market.

The Realtor you have chosen to represent you in the sale of your Home has given you “the comps” which are the comparable recent sales of similar homes in your neighborhood.  Realtors know what appraisers know about comps – compare homes by similar square footage, age, amenities, bedrooms and neighborhood.   The comps don’t lie.  Review them with your Realtor.  Drive by the houses that you are comparing.  When you are comparing homes that are currently on the market that are similar to yours, ask your Realtor to show them to you.  It will open your eyes and you will begin to see what Buyers see.

When you feel sure that you have all the information you need to price your house, ask your Realtor to give you a price range that they think your home can be priced.  Think about where you want to be positioned in the Market.

Then price your home at Market Value – not above, that doesn’t work any more.  The homes that are selling right now are priced well.  You might be tempted to price high but you don’t need wiggle room, you need Agents to show your house to prospective, well-qualified Buyers.  You need your house to sell in a reasonable amount of time.  In the Inland Empire where the market is very fast and competitive, if a Buyer sees a home that has been on the market for more than 30 days the first thing they ask is, “What’s wrong with it?”

You need to move on with your Life – so price your Home at Market Value!

 

 

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Hiring a Real Estate Agent

10 Jan

Hiring a Realtor to sell your house is a big step.  Interviewing several local Realtors is recommended.  You might have notepads, pens, calendars and various marketing items that have been sent to your home over the years.  The agent that has been giving you these items is telling you that they “work the neighborhood” and know it well.  So be sure to include that agent in your interviews.

So what do you look for in a Realtor?  Same thing you would want in any other professional: Integrity, honesty and good work ethics.   All the Realtors you interview will have comparable sales for you to review.  These are facts that won’t change from one Realtor to the next.  They all should give you a marketing plan of how they will market your home.  This should include a detailed list of items they promise to do for you such as putting up a sign, making flyers and keeping a good supply in the flyer box, promoting your home at their office meeting, advertising in the local paper.   If you want your Realtor to hold Open Houses, then let them know.  Some Sellers don’t mind having a couple of Open Houses when the house is fresh on the market.  I would encourage you to allow your agent to do at least one.  I tell my Sellers that by doing an Open House I can get feedback from the Buyers.  Buyers are smart and they know what the market is like because they are out there looking.  They have the internet to search and once your home is on the market there are sites like Redfin.com that give information on the last time your house sold, taxes, schools and neighborhood safety.

Let’s talk about lockboxes.  I highly recommend that you have one on your home.  Why?  Because if a buyer’s agent has 5 or 6 homes to show and yours is the only one that doesn’t have a lockbox and has limited viewing times then be prepared for your home to sit on the market for a long time.  If you can’t see it, you can’t sell it!   After all, you have packed up all your valuables and readied your home for sale, put a lockbox on it -  they give your Realtor information about what time your house was shown and who showed it.   I know there are special circumstances, small children’s nap schedules and dogs that need to be put in the dog run but if you really want to sell, you will figure out with your Realtor how to get arrange these things.

Last but not least – pick a Realtor that you LIKE.  That’s right, you need to feel comfortable calling, texting and emailing your agent.  They need to be there for you.  Ok, I’m getting on a tangent here but if you see your agent on a billboard, they probably aren’t the agent for you.  Why?  Because you will probably only see that Realtor once – when they come for the interview.  After that you will be dealing with an assistant.   In my opinion,  you deserve better.  There are many intricate details that can get lost in translation if you are dealing with assistants.   Selling a home is a personal thing that most people go through only a couple times in their lifetime.  Hire the Realtor with a heart and you won’t go wrong.

 
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Posted in FHA, Homes For Sale, Real Estate Update, Title

 

What Are Your Plans for 2012?

09 Jan

Is this the year you will sell your Home?   What’s the next step?

Its been 5 years into this current economy and you have waited long enough for the market to stabilize.  You are tired of waiting for prices to go up and have heard that they probably won’t in the next couple of years.  So you want to sell and move on with life.

Are you going to take advantage of the great prices and move up?  What you will find is that between the unbelievably great interest rates and low home prices, this is quite possibly the best time ever to move up.  Call a lender to check your financial position.

Will you downsize to a condo or smaller home?  What about renting?  Renting  takes away the responsibilities of homeownership such as painting, fixing, yard work.  Do you want to free up your time to travel, take on a project or pursue a new career?

Whatever you decide, get the wheels turning in the right direction.  Make a list of things to accomplish and give yourself a time limit.  Will it take 30, 60 days or longer to put your house on the market?  Start reading everything you can about selling a house.  Talk to your accountant and tax person.

Looking at Zillow.com and Trulia.com is a good idea too but don’t bank on their numbers.  You will get a good idea what your house is worth but call a local Realtor and make an appointment to get a better idea about what your home can sell for.

If you find yourself selling your parent’s home which many Boomers are doing, then this is an especially important crossroad.  It’s not easy to do.  I have assisted many clients and friends take this journey and all I can say is “take it easy” unless you have to rush due to financial reasons.  On average I find that it can take a year or so to accomplish.  It will all come together but usually there are siblings and other family members that need to weigh in on what the right thing is to do.  Keep the family peace by having a “talk” early on.  Have one or at most two decision makers that live closest to the home in question.  That decision maker can communicate to family members the progress of the sale.  And don’t hesitate to rely on your Real Estate Agent.   They can be a wealth of knowledge and help get you the answers you need.

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update

 
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