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Posts Tagged ‘Good News’

Close of Escrow

09 Dec

Step 16

Congratulations!  Escrow has closed!

You’ve been waiting for your Realtor to say this for the last 30 days!  Your lender has “funded the loan” for your new home and escrow has reported to your Realtor that the grant deed has been recorded at the county recorder’s office.  That event signals that Escrow has closed!

It seems that this time period has lasted forever but soon it will be a story that you will be sharing with your friends and family for years to come – you survived buying a Home!  You have accomplished the All American Dream of Home Ownership!

Hope you have been packing because tomorrow is moving day!

 

 

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

 

Final Walk Thru

05 Dec

Step 15

About 5 days before the close of escrow, your Realtor will schedule a walk thru of the home.  The purpose of a walk thru or verification of property condition is to establish that the property is in similar condition to when your offer was accepted.  If it is a standard sale with the Seller still living in the home, the landscaping should have been kept up and the home in good condition considering the owners are in the moving process.  The walk thru is also a time to see that any agreed upon repairs are complete. The part I like best about a walk thru is that the Buyer and Seller are usually more relaxed and can talk about the house and how things work.

If the home is a short sale or REO (bank owned home) then things are quite different.  There have been no repairs or regular maintenance done to the home during escrow so you hold your breath as you enter the home and hope that it has not gone down hill any more than on the day your offer was accepted.

 

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

 

What is Escrow?

18 Nov

You hear the word Escrow over and over when talking about buying a house but what is it anyway?

I like to describe escrow as a neutral third party that is in charge of gathering and dispensing information about the home purchase. They work for you so if you have any questions, please call the escrow officer. They will be happy to answer questions.

Most escrows last 30 days, “Time is of the essence” is the rule of thumb. Gone are the days of 60-90 day escrows. The sooner escrow can close, the better. Escrows on bank owned homes are also as short as possible. Now of course if your escrow involves a short sale – who knows when that escrow will close!

Escrow will gather title information about the property, insurance information, homeowner’s association information (if it applies), lender and loan information. Escrow will check on the progress of the loan and report on it to the agents. Escrow will also gather all funds – from the EMD (Earnest Money Deposit) to the down payment and loan funding money. Escrow instructions are given to both Buyer and Seller to be signed and returned. There is a lot going on at Escrow!

Escrow also can change terms of the contract for the Buyer and Seller however the change will have to be in writing and agreed upon by both parties. One party cannot make a change without the other one knowing about it. For example, if the Sellers need to change the date of the close of escrow, they will need to write a letter to escrow asking for the date change. If the Buyers agree and sign the change of date form, then it happens.

What act signifies the “Close of Escrow”? The recording of the Grant Deed with the County Recorder with the new owner’s name on it! And the best part – Escrow will be the one to call your agent with the good news – Escrow has closed!

 

image courtesy of lynnchuba.com
 
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Posted in Escrow, Homes For Sale, Real Estate Update, Title, Uncategorized

 

Home Appraisal

14 Nov

Step 13

As soon as you have acceptance of your offer, your lender needs to be notified so that he can order an appraisal.

The appraisal process has changed in the last couple of years. Let’s suffice it to say that the appraiser is randomly picked from a pool of appraisers.

The appraiser will meet with the listing agent at the property. They measure the dwelling and inspect the neighborhood and recent sales. The buyer will be given a copy of the appraisal.

Once the appraisal is back at the lender’s, the lender will put in motion the final “conditions” of the loan process.

Should the appraisal not come in at the agreed upon price, then that opens up negotiation again. Both Seller and Buyer will have to agree to go with the appraised value or escrow “falls out”.

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

 

Multiple Offers

09 Nov

I sort of skipped over the multiple offer situation but would like to talk about it now.

For most of my career in real estate in the Inland Empire I have been more of a Buyer’s agent. During these years what I have experienced is multiple offers on most homes for sale.

There is a huge demand for homes and the proof is the fact that every time, and maybe you think I’m exaggerating but it is true, every time I write an offer there are other offers on the same house. It doesn’t matter the price of the home, it can be $125,000 or $950,000 and there are more than one offer that my Buyer has to compete with. So that is the word I want you to remember – compete.

Because the number of homes for sale is low, the demand is high, there is no place for low-ball offers. If the house proves to be well priced, then offer your best. Especially when you are dealing with a bank owned home. The bank will always come back to the listing agent and ask for “Highest and Best”.

Yes, I know you say you don’t want to get in a “bidding war” but if you want to buy a home in this area, you will be competing. Read some of my earlier posts and you will find that competing is not only about price but the terms of your offer.

 
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Posted in Homes For Sale, Real Estate Update

 

The Counter Offer

17 Oct

Step 9

Expect to receive a counter offer from the Seller. In 15 years of writing offers for Buyers, I have only had maybe a dozen original offers accepted as written.

The most common thing that is countered by the Seller is the price.

Some of the other terms of the contract that can be countered is the amount of time for escrow. 30 days is the most common escrow length but sometimes the Seller wants to close escrow on a specific date. The Seller will also counter the escrow and title company that they will want to use. It is customary in this area for Sellers to use the escrow and title company of the listing agent.

If you have written an offer on a bank owned home – REO – then the bank will send you a counter offer that looks like an offer and can be 15-20 pages long. Don’t be alarmed, this is the way they do things. If you have written an offer for a short sale then be prepared to wait as the bank will want to do an appraisal before issuing a counter offer. If you have written an offer on a standard sale home then the Seller will most likely respond within the 3 day time limit that is stated in the contract.

Something that has been happening in the last year or more with REO’s and short sales is that they will counter back that they do not want to pay for any termite work or home warranty. Again, the banks are trying to increase their bottom line any way they can. So buying a bank owned home or short sale places more responsibility on the Buyer because the Buyer will need to pick up these fees.

Next blog post: Multiple Offers

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

House Hunting – Standard Sales

16 Sep

Step 4

You know the area you want to buy and the price and size of home that is comfortable for you but now the big question.

Do you want to buy a standard sale home, short sale or bank owned home?

The standard sale home seems like the easy route. However, a large majority of the standard sellers in today’s market think they are “losing money” by selling their home. They could have sold for much more years ago but they didn’t and now life changes are prompting them to sell. Be careful because sometimes these sellers over price a home just to see if they will get a bite. Have your agent “run the comps” which is Realtor talk for – what is the home worth according to recent sales? If you find that the house is overpriced but you want to make an offer then write a good clean offer at market value. All houses sell for market value so the Sellers will need to come to grips with that at some point. Be prepared for a counter offer, 99% of all offers will get a counter offer. If the Sellers are reasonable, you will have bought a house. Don’t feel bad if they don’t take your offer. Many Sellers reject the first offer and then their homes sit on the market and at the time I am writing this, it’s almost guaranteed that their house will go down in value by waiting. Move on to another house for sale.
In the Inland Empire there is a “Perfect Storm” at this moment. Interest rates are amazingly low, you can buy a house and make mortgage payments that are close to what you are paying for rent. And there are many homes for sale. Inventory is good in this area and more homes are coming on the market all the time so don’t worry, your dream home could be just around the corner!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

I Want to buy a House with the Listing Agent.

16 Aug

Really?? Really! Are you sure?

I hear this statement several times a week, as I’m sure most Buyer’s agents do. Do you know what you are giving up?

The Seller has already signed a contract with the Listing Agent to have exclusive representation by the Listing Agent. If a Buyer wants to buy a home with the Listing Agent, then a conflict of interests arises. This is called Dual Agency and it must be disclosed. Dual agency is such a bad idea that it has been outlawed in other states, yet it is still legal in California. Some of the information you may want to know would be illegal or unethical for a dual agent to disclose because of their fiduciary responsibility to the Seller. Just because the seller “has” to use their Cousin George as their agent, doesn’t mean YOU have to.

A fiduciary responsibility requires that every action the agent performs must be in the best interest of their client. This is above and beyond “Honest and Fair”. This responsibility goes so far as to require that even if a particular course of action is NOT the most advantageous action for the agent, but IS in the best interests of the client, the agent must act for the benefit of the client.

In every real estate transaction I have been involved in, I have found at least a dozen things the other agent wanted to do, but were not the best path for my client. Dual Agency is just as crazy as having the same lawyer represent both sides in the same lawsuit.

Wow, buying a home is a “Big Deal”. Why would you want a conflict of interest?

Call me if you want to work with a Buyer’s Agent!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

New Video

10 Aug

I am so proud to make this post to my blog.  I have made a video that introduces me and my area to prospective clients.

For my friends, family and past clients, it will give you an insight into my real estate career.

I hope you enjoy it and please give me feedback, I’d love to know what you think!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

What’s the right price for my Home?

14 Jul

Most Standard Sellers in today’s market are still California Dreaming of 2006.  Five years ago you could price your house $10,000 more than the last home on the block sold for, and it would sell at that price!   Sorry to say,  that was then, this is now and that time will not come back – EVER!

You could have sold your home in 2006 for $200,000 more than today, so why didn’t you?  Well, you had to have a place to live.  And if you had sold in 2006, you most likely would have turned around and bought another home at the top of the market and lost the $200,000 gain anyway.

What’s the right price for your Home?  Market Value.  I guarantee your home will sell for Market Value.  We are back to the good old fashion, American way of selling a home.   You put your Home on the market for Market Value – NOT higher than Market Value because “we want to have some wiggle room”.  You get a lot of showings by Real Estate Agents with qualified Buyers.  You get one or more offers, you open escrow and pack, the appraisal comes in at Market Value and Viola – You have sold your Home!

 
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Posted in Homes For Sale, Real Estate Update

 
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