This Month in Real Estate Novemebr 2011

15 11 2011


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Categories : Agent Info, BUYERS, SELLERS

This Month in Real Estate: July 2011

5 07 2011


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Zillow releases mortgage app for iPhone

9 06 2011

Real estate website Zillow.com on Tuesday joined the saturated mortgage app market with one of its own.

The tool, available to only iPhoneusers, lets you calculate:

-Your estimated mortgage paymenton a potential purchase.

-How much home you can afford.

-What you would roughly pay if you refinanced.

When you launch the app, you’ll see a chart showing the performance of the 30-year fixed rate, which fell last week to its lowest level this year.

Below you’ll see three calculators, and within each one, you can manipulate a number a features to get an estimate of how much you’d owe in a home loan.


Likes: What sets the Zillow app apart from other mortgage apps is its simple design interface and the attention to detail within the calculators, which is important when deciding on a big payment such as a mortgage.

It’s nice that you can immediately visualize your mortgage payment in a pie chart as you manipulate price, the down payment and interest rate. You can see similar visuals in the affordability and refinancing calculators within the app.

Dislikes: The slide bars that let you decrease and increase the field amounts are finicky. But I realized you can just tap the fields and input figures using the number pad. It would be helpful if the app developers made that option more visible.

Zillow also should consider making an Android version. The Guardian, a publication in the U.K., reported last year that Google was activating 160,000 mobile phones that the Android operating system daily. Read that story here.

See a preview of how it works, and try it yourself by searching “Zillow Mortgage Marketplace” in the App store.

 


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Categories : Agent Info, BUYERS

The Basics of Making an Offer

30 05 2011
Oral promises are not legally enforceable when it comes to the sale of real estate. Therefore, you need to enter into a written contract, which starts with your written proposal. This proposal not only specifies price, but all the terms and conditions of the purchase. For example, if the sellers said they’d help with $2,000 toward your closing costs, be sure that’s included in your written offer and in the final completed contract, or you won’t have grounds for collecting it later.
REALTORS® usually have a variety of standard forms (including Residential Purchase Agreements) that are kept up to date with the changing laws. When you use a REALTOR® these forms will be available to you. In addition, REALTORS® cover the questions that need to be answered during the process. In many states certain disclosure laws must be complied with by the seller, and the REALTOR® will ensure that this takes place.
If you are not working with a REALTOR®, keep in mind that you must draw up a purchase offer or contract that conforms to state and local laws and that incorporates all of the key items. State laws vary, and certain provisions may be required in your area.

After the offer is drawn up and signed, it will usually be presented to the seller by your REALTOR®, by the seller’s REALTOR® if that’s a different agent, or often by the two together. In a few areas, sales contracts are typically drawn up by the parties’ lawyers.

What the offer contains
The purchase offer you submit, if accepted as it stands, will become a binding sales contract (known in some areas as a purchase agreement, earnest money agreement or deposit receipt). It’s important, therefore, that it contains all the items that will serve as a “blueprint for the final sale.” These purchase offer items include such things as:
  • Address and sometimes a legal description of the property
  • Sale price
  • Terms — for example, all cash or subject to your obtaining a mortgage for a given amount
  • Seller’s promise to provide clear title (ownership)
  • Target date for closing (the actual sale)
  • Amount of earnest money deposit accompanying the offer, and whether it’s a check, cash or promissory note, and how it’s to be returned to you if the offer is rejected — or kept as damages if you later back out for no good reason
  • Method by which real estate taxes, rents, fuel, water bills and utilities are to be adjusted (prorated) between buyer and seller
  • Provisions about who will pay for title insurance, survey, termite inspections and the like
  • Type of deed to be given
  • Other requirements specific to your state, which might include a chance for attorney review of the contract, disclosure of specific environmental hazards or other state-specific clauses
  • A provision that the buyer may make a last-minute walk-through inspection of the property just before the closing
  • A time limit (preferably short) after which the offer will expire
  • Contingencies, which are an extremely important matter and discussed in detail below
Contingencies
If your offer says “this offer is contingent upon (or subject to) a certain event,” you’re saying that you will only go through with the purchase if that event occurs. The following are two common contingencies contained in a purchase order:
  • The buyer obtaining specific financing from a lending institution. If the loan can’t be found, the buyer won’t be bound by the contract.
  • A satisfactory report by a home inspector “within 10 days (for example) after acceptance of the offer.” The seller must wait 10 days to see if the inspector submits a report that satisfies you. If not, the contract would become void. Again, make sure that all the details are nailed down in the written contract.
Negotiating tips 
You’re in a strong bargaining position — meaning, you look particularly welcome to a seller — if:
  • You’re an all-cash buyer; or
  • You’re already pre-approved for a mortgage; and
  • You don’t have a present house that has to be sold before you can afford to buy.
In those circumstances, you may be able to negotiate some discount from the listed price. On the other hand, in a “hot” seller’s market, if the perfect house comes on the market, you may want to offer the list price (or more) to beat out other early offers.
It’s very helpful to find out why the house is being sold and whether the seller is under pressure. Keep these considerations in mind:
  • Every month a vacant house remains unsold represents considerable extra expense for the seller;
  • If the sellers are divorcing, they may just want out quickly; and
  • Estate sales often yield a bargain in return for a prompt deal.
Earnest money
This is a deposit that you give when making an offer on a house. A seller is understandably suspicious of a written offer that is not accompanied by a cash deposit to show “good faith.” A REALTOR® or an attorney usually holds the deposit, the amount of which varies from community to community. This will become part of your down payment.
Buyers: the seller’s response to your offer
You will have a binding contract if the seller, upon receiving your written offer, signs an acceptance just as it stands, unconditionally. The offer becomes a firm contract as soon as you are notified of acceptance. If the offer is rejected, that’s that, and the sellers could not later change their minds and hold you to it.
If the seller likes everything except the sale price, or the proposed closing date, or the basement pool table you want left with the property, you may receive a written counteroffer, with the changes the seller prefers. You are then free to accept or reject it or to even make your own counteroffer. For example, “We accept the counteroffer with the higher price, except that we still insist on having the pool table.”
Each time either party makes any change in the terms, the other side is free to accept or reject it, or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.
Withdrawing an offer
Can you take back an offer? In most cases the answer is yes, right up until the moment it is accepted, or even in some cases, if you haven’t yet been notified of acceptance. If you do want to revoke your offer, be sure to do so only after consulting a lawyer who is experienced in real estate matters. You don’t want to lose your earnest money deposit, or find yourself being sued for damages the seller may have suffered by relying on your actions.
For sellers: calculating your net proceeds
When an offer comes in, you can accept it exactly as it stands, refuse it (seldom a useful response), or make a counteroffer to the buyers with the changes you want. In evaluating a purchase offer, you should estimate the amount of cash you’ll walk away with when the transaction is complete. For example, when you’re presented with two offers at once, you may discover you’re better off accepting the one with the lower sale price if the other asks you to pay points to the buyer’s lending institution. Once you have a specific proposal before you, calculating net proceeds becomes simple. From the proposed purchase price you can subtract:
  • Payoff amount on present mortgage;
  • Any other liens (equity loan, judgments);
  • Broker’s commission;
  • Legal costs of selling (attorney, escrow agent);
  • Transfer taxes;
  • Unpaid property taxes and water bills;
If required by the contract: cost of survey, termite inspection, buyer’s closing costs, repairs, etc.
Your present mortgage lender may maintain an escrow account into which you deposit money to be used for property tax bills and homeowner’s insurance premiums. In that case, remember that you will receive a refund of money left in that account, which will add to your proceeds.
For sellers: counteroffers
When you receive a purchase offer from a would-be buyer, remember that unless you accept it exactly as it stands, unconditionally, the buyer will be free to walk away. Any change you make in a counteroffer puts you at risk of losing that chance to sell. Who pays for what items is often determined by local custom. You can, however, arrive at any agreement you and the buyers want about who pays for:
  • Termite inspection;
  • Survey;
  • Buyer’s closing costs;
  • Points to the buyer’s lender;
  • Buyer’s broker;
  • Repairs required by the lender; and
  • Home Protection Policy.
You may feel some of these costs are none of your business, but many buyers — particularly first-timers — are short of cash. Helping them may be the best way to get your home sold.

[youtube http://www.youtube.com/watch?v=nNqtB1A0bw4&w=480&h=390]


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San Diego’s Craftsman Style Homes

24 05 2011

Yesterday I was part of a home tour that was showing new clients the different areas of San Diego. On the tour we visited North Park, Golden Hills, Mission Hills, Normal heights and Hillcrest. I really love these areas.  With the old architecture and great neighborhood feel, these parts of town have been have always been desirable locations for home buyers. As we were popping in and out of homes it dawned on my that I should do a little piece on San Diego’s older neighborhood home styles….

The Craftsman Style

Craftsman’s Style homes can be found all through out the older hoods of SD, for example the majority of North Park and South Park are craftsman. The big surprise from yestrdays tour was the Golden Hills area. I don’t spend a lot of time here but after yesterday my radar is definitely on for this neighborhood.

Golden Hill is one of San Diego’s most historic and architecturally eclectic zones, with many pre-1900 homes and apartments. With its once stately old mansions, quaint bungalows and apartment buildings, Golden Hill is currently enjoying a rejuvenation. On the southeast end of Balboa Park, Golden Hill (and adjacent South Park) has some fine views of downtown and pockets of really cool neighborhoods.

Some signs of Craftsman Style Homes include…….

[youtube http://www.youtube.com/watch?v=Rkg_FMNsbD4&w=480&h=390]

Signature Inviting Porch
Typically a battened door with wrought-iron strap hinges welcomes guests paired with the signature wide, inviting porch unique to Craftsman style homes. The front porch typically spans the width of the front exterior facade supported by heavy square or round columns contrasting the bold exterior stone chimneys.

Details Increase Functionality
Inside, Craftsman style homes offer airy open floor plans with few hallways but lots of windows to let in light. Stained or leaded glass windows provide a special touch while beamed ceilings, dark wood wainscoting moldings, built-in cabinets, shelves and seating create a cozy welcoming retreat for family activities and casual entertaining.

Low-Slung Roof
Related to Bungalow, Prairie, and Pueblo homes, Craftsman style house plans feature wood, stone or stucco siding, a low pitched roof, and wide eaves with exposed wood rafters. The low-slung roof; often with multiple projections gives the home a “built-in” feel.


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Categories : Green Tip with Pat Tugend, Hoods

Tips on how to Stage Your Home for Sale

18 05 2011
[youtube http://www.youtube.com/watch?v=ec7QCZAxidY&w=480&h=390]
  1. Disassociate Yourself With Your Home.
    • Say to yourself, “This is not my home; it is a house — a product to be sold much like a box of cereal on the grocery store shelf.
    • Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours.
    • Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
    • Say goodbye to every room.
    • Don’t look backwards — look toward the future.
  2. De-Personalize.
    Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, ”I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”
  3. De-Clutter!
    People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.

    • If you don’t need it, why not donate it or throw it away?
    • Remove all books from bookcases.
    • Pack up those knickknacks.
    • Clean off everything on kitchen counters.
    • Put essential items used daily in a small box that can be stored in a closet when not in use.
    • Think of this process as a head-start on the packing you will eventually need to do anyway.
  4. Rearrange Bedroom Closets and Kitchen Cabinets. 
    Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:

    • Alphabetize spice jars.
    • Neatly stack dishes.
    • Turn coffee cup handles facing the same way.
    • Hang shirts together, buttoned and facing the same direction.
    • Line up shoes.
  5. Rent a Storage Unit. 
    Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, ”What is this room used for?”
  6. Remove/Replace Favorite Items.
    If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
  7. Make Minor Repairs.
    • Replace cracked floor or counter tiles.
    • Patch holes in walls.
    • Fix leaky faucets.
    • Fix doors that don’t close properly and kitchen drawers that jam.
    • Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
      (Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
    • Replace burned-out light bulbs.
    • If you’ve considered replacing a worn bedspread, do so now!
  8. Make the House Sparkle!
    • Wash windows inside and out.
    • Rent a pressure washer and spray down sidewalks and exterior.
    • Clean out cobwebs.
    • Re-caulk tubs, showers and sinks.
    • Polish chrome faucets and mirrors.
    • Clean out the refrigerator.
    • Vacuum daily.
    • Wax floors.
    • Dust furniture, ceiling fan blades and light fixtures.
    • Bleach dingy grout.
    • Replace worn rugs.
    • Hang up fresh towels.
    • Bathroom towels look great fastened with ribbon and bows.
    • Clean and air out any musty smelling areas. Odors are a no-no.
  9. Scrutinize. 
    • Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
    • Linger in the doorway of every single room and imagine how your house will look to a buyer.
    • Examine carefully how furniture is arranged and move pieces around until it makes sense.
    • Make sure window coverings hang level.
    • Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?
    • Does it look like nobody lives in this house? You’re almost finished.
  10. Check Curb Appeal.
    If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside.

    • Keep the sidewalks cleared.
    • Mow the lawn.
    • Paint faded window trim.
    • Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
    • Trim your bushes.
    • Make sure visitors can clearly read your house number.

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Categories : Agent Info, SELLERS