I Lost Out On A Great Listing...And Here's How

Last week I lost out on a great listing with a top executive at one of the world's largest companies. It happens, right? Well, yes...but I walked out of this knowing I had the best marketing strategies, the highest level of professionalism, the most competent knowledge of the market, his house and our industry. I have combined a top level of understanding of the technical side of real estate matched with the intimate side of the sale of a home. So How did this happen?

This same week I lost out on this listing I went to a class offered by Compass that goes over different personality types. They teach you what your personality type is, and how to discover what someone else is. In learning this, you find that some personality types simply can not hear what the other type is saying. It's not because the information is wrong, bad or incomplete. Rather, it's not delivered in the best way to communicate effectively so that the other person can hear what is being said. Months ago, I met Chris Voss who was the Top FBI hostage negotiator for many years (and you thought selling real estate is all about where to point your open house signs and cute bus bench photos) He spoke with me and touched on something I hadn't thought of before. He said "Amber, you seem very competent and direct in your communication. I'm the same way. But is the person you're speaking to able to hear you or do you need to communicate with them in another way?" That was the first light tapping that got me thinking. Then I took this course last week that hit the nail on the head. Some people simply have a way that they take information in and process it. And while all the great information I have may be good for some, others may not hear it the way they need it to be delivered. And I had just left a listing appointment with the CFO of a world-wide company thinking what a great job I had done. I mean, I really went into that meeting giving him all the information I had, with my background in real estate and every top notch marketing piece mixed with technological advances my company and I had in our pockets. Yet, I got the call two days later that they went with another agent. What?! I didn't see that coming. At least before I had taken this class through my company about how to deliver information to different types of personalities. And believe it or not, after I had completed this class and before I got this seller's phone call, my mind had changed on what a great job I had done during our meeting. See, I still believe I left him with everything any top executive looking to sell their home would want from a Realtor. What I didn't leave him with, was the best way he could have heard what I was trying to deliver.

So, lesson learned. And I'm always excited about good lessons. I don't believe I can do my job at a top level without being able to step back and see where I could make improvements and putting that to work.

How Much Personal Information Does Your Real Estate Agent Know?

Buying and Selling a Home is a very intimate process.  The people you work with have an up-close POV to a lot going on in your life.  And of course, there are many people who work with a friend who is an agent.  So how much personal information does your agent find out about you?

When I go to meet a new client or someone I know who is going to be selling or buying, the questions I ask are:
--"Why are you selling or buying now?"
--"When do you hope to move?"
--"If you are buying, Have you been pre-approved with a lender?"

Once a client has been pre-approved, here is what I find out:
--"What budget a client would like to stay within"
--"How much down payment a client has to use for a purchase."
--"What a client's FICO score is." (sometimes I don't even know this)
--"If a client is being given money to help in the purchase. This is called a "Gift" and is usually from an immediate family member"
--"The amount of proceeds a client may be receiving from the sale of a house."


Here is what I don't know and can't find out unless a client chooses to tell me:
1. "What a client's salary is."
2. "Any bonuses a client has received from an employer"
3. "What taxes they paid or their tax returns" (sometimes if a client is renting a landlord may ask to see this)
4.  "Any debts, or credit card bills a client has."
5.  "How much money a client has total in savings, retirement, stocks or any other investments"
6.  "If a client has been previously married or divorced" (unless the home you are selling still has a previous spouse still attached to the title or loan.
7.  "How much and on what a client spends for personal use each year."



I write this blog because so often I am helping a personal friend/acquaintance to buy or sell a home as many real estate agents do.  And no matter how close we are, there is still information that most people prefer to keep private.  I completely understand and am actually the same way, especially when it comes to some of these financial pieces of information.  The lender is the one who finds out most, if not all, of the very personal financial information a client has. The lender is not allowed to share these things with me and it is a good idea for every buyer/seller to talk with their lender about what information they share and with whom do they share it.  A client can also just tell the lender (even though it is already this way) to not share any extra un-needed information with anyone, especially just for the piece-of-mind of saying it out loud and letting it be known that you want to keep things private.
                                                                           

If you are looking to make a move this year, call me. I would love to help you make a move.

Did You Know? Tips And Tricks For Your Home

Did You know...you can track your mail through a service provided by USPS.  Sign up here https://www.usps.com/    Look for the "Track And Manage" Tab and under that choose "Informed Delivery".  UPS and Fedex also offer similar services.

Did You Know....You could be eligible to get $400 rebate for a new Clothes Washer through LADWP?  Find out more here https://www.ladwp.com/ladwp/faces/ladwp/residential/r-savemoney/r-sm-rebatesandprograms?_adf.ctrl-state=fcerei2y0_4&_afrLoop=646652632687252

Did You Know....LADWP also offers free AC Optimization services from installing a new thermostat, replacing air filters and adding coolant to your unit?  Find out more here
https://www.ladwp.com/ladwp/faces/ladwp/residential/r-savemoney/r-sm-rebatesandprograms/r-sm-acopt?_adf.ctrl-state=fcerei2y0_4&_afrLoop=646866475158789

Did You Know....Using DW40 to help doors and windows open better may work but spray silicone is what most professionals would recommend you use instead

Did You Know...Watering your grass in the middle of the day can waste water as most of it will evaporate from the sun's heat.  Watering your grass at night may work better but may also cause the growth of mushrooms.  Watering in the early AM is typically a better option for most.

Did You Know...Even though your holiday lights say they can be used outdoors, rain and moisture can still short them out or corrode the plugs over time.  Some neighbors either zip-tie or use electrical tape to cover the plugs with a plastic bag.

How To Get Free Maintenance For Your AC

Was it really just 115 degrees outside last week?  Even the dust was crying it was so hot.  And how about all those Air Conditioners that went out?  No fun for anyone who had to suffer through that heat. And while many people had to call on someone to fix, or replace their air conditioners because of that heat wave, I have some good news for those whose units made it.  You may be eligible to have your AC maintenance done for free! Here are some of the service provided by LADWP

• Replacement or cleaning of standard air filters
• Outdoor coil cleaning
• System diagnostic test
• Refrigerant charge adjustment (up to 2 lbs. of refrigerant will be provided, if applicable)
• Installation of smart, Wi-Fi enabled thermostat (for compatible residential systems only, if customer does not already have a smart thermostat*)
  • Zoned systems only qualify for one thermostat
• If the customer’s home is not Wi-Fi enabled, or would prefer not to have a smart thermostat installed, the following AC system or Heat Pump alternatives can be installed at no charge to the customer:
• Western Cooling Control

Along with these great services, you can get rebates on new A/C units and much more.  Visit their website here: 

https://www.ladwp.com/ladwp/faces/ladwp/residential/r-savemoney/r-sm-rebatesandprograms/r-sm-acopt?_afrLoop=2141401561408961&_afrWindowMode=0&_afrWindowId=15q4bwlpzk_1#%40%3F_afrWindowId%3D15q4bwlpzk_1%26_afrLoop%3D2141401561408961%26_afrWindowMode%3D0%26_adf.ctrl-state%3D11qutgi5ni_4

Five Signs The Market Is Changing Right Now

Number #1 question I get about real estate is "When Do You think the market is going to stop climbing, level out or go down?" I'm pretty sure the answer is "Now".  Every year since about 2011 the market has been on the rise.  Some years more than others and each year the seasons and holiday times would give way to the natural ebb and flow of the market but I'm starting to see a real change right now in, what would normally be, the high season for buying and selling.  I've worked with a number of sellers and buyers this year and just about a month ago a few things happened in my transactions that got me asking "Is this just my transactions this is happening in, or is this a trend that is showing signs of something else?"  So I started asking all the other realtors in my office and that I was working with.  At first, it seemed as if it were just my luck (or lack there of) that was witness to some interesting things going on in my sales.  Then my questions started reflecting back that other realtors were experiencing some abnormal set-backs as well.

Here are five things I'm seeing that may be signs the market is making a change. 

1.  A number of homes aren't flying off the market, even when priced and marketed very well.  In fact, many were staying on for a few weeks and months and even some were starting to drop their prices.

2. Buyers are starting to really ask for a lot of request for repairs that seemed more than I had experienced in years which made me believe they were okay if they lost this sale and confident that would find another and be just as happy. Whereas in years before, they felt lucky just to get their offer accepted and didn't want to rock the boat too much and lose out on a deal.

 3. We've seen rates being to climb a bit however, they are still low enough that they are considered very good rates by history's standards.  But when rates go up even just a bit, some people are pushed out of their price range and what they can afford leaving them to "hold off" and either wait to save more money, wait for prices to drop or wait to see if rates drop back again.

4. Well priced good homes are getting high interest right when they hit the market for the first week, but after that, interested parties are seeming fewer and further between.

5. Short sales are starting to show up more.


I've been interviewed by NPR, LA Times,  Realtor Magazine, Trulia, Real Estate Business Institute and many more regarding my expert opinion on the housing market.  While I can't make predictions, I have great insight into where the market is and what is happening.  If you have any questions or if you are considering buying or selling soon, call me today!

                                                                     

I also added some statistics on here about home sales year over year in 3 different areas for your reference as well. 

5 Most Common Options For People Who Need Money From Their Current Home To Buy Their Next One.

Buying and Selling a home comes with challenges that are unique to each individual.  I've worked with first-time home buyers that sail through the process like a breeze and others whose home buying is more challenging.  But one of the benefits of being a first-time home buyer is that you just need to give your landlord notice to move from your current home.  Homeowners looking to buy something else have another hurdle they have to get passed.  How do you get the money from your current home to use it to buy the next? Here are 5 of the most common ways you can go about doing this.

1. Sell your current home and take the proceeds from that sale then and move into a short term rental until you buy your next home with your proceeds ready to go.

2. Explore the options of having a family member help you with your next downpayment.

3. Ask a lender how much money you could take out of your current home to use for the next.  If you choose this option, your lender will likely tell you there is a waiting period from when you take that money out, until you can sell that home. 

4. Put your home on the market for sale and ask the buyer for a "Rent Back" which is when the buyer becomes the owner and you become their tenant for a short time.  There are some pros and cons to doing this so make sure to talk to your agent about what they may be.  Going this route may be gambling a bit since it leaves you a limited, finite amount of time to find and buy your next home.

5. Put your home for sale contingent on buying your next home. This means your agent will put something into the contract when the buyer makes an offer on your current home that states the home can not complete the sale until you have found your next home. However, this also means you need to put something in the contract on the home you intend to purchase that says you can't complete the sale of that home till your current home sells. A bit of a domino effect can be created doing it this way.  This is the trickiest way to go straight from one home to another but for most, it's their only option.

Any option you choose, make sure you have an agent that is very hands on.  For most people, there needs to be a lot of creative problem solving done between clients and agents and clients tend to need a lot more questions answered as situations get more convoluted in the selling/buying process.

                                                                         

Feds Raise Rates Again And Expect More Raises To Get Back To A More NORMAL Rate

Feds just raised the rates again by a small amount as they all agree the market is healthy and this is the best time to raise them.  They mentioned raising them 2 more times this year an they expect to raise them 3 times next year.  Does this mean the house prices will go down? The market will drop? What should you make of this news?  Here is the most important part of this article:

 ..."it expects to increase rates another two times this year as it pursues a return to more normal interest rate levels."

The reason I believe this part of the article is the most important is because I've been preaching about our very low interest rates for years. They've lasted this long but won't last forever and this is major.  If you are thinking about buying...don't wait! You may be out of luck by next year if/when rates are continuously raised.  

My professional experience leads me to believe that this will not cause house prices to drop. At least not this year. And for those of you that have been holding out on buying...stop. The rates are the biggest factor in home buying and I suggest you move on them before they rise back to normal. 

Read more about it Here

                                                                                

Pacific Union International is My New Company

I started with the John Aaroe Group when I first became a realtor.  John Aaroe appealed to me with his vast knowledge of the industry, the respect that people had for him, his focus on the agents in the office and his ever-gracious way about him.  Just a few months ago, he decided it was time to go sit by a warm beach, watch the waves and drink a frozen concoction with an umbrella in it (ok...I'm making that up since that's what retirement looks like in my imagination).  None-the-less, he retired and our company became known as Pacific Union International.  Pacific Union was already a force in Northern California and they wanted to spread their wings and be a part of the hot SoCal market as well.  So, I'm still me, doing business as usual but just with a new company name.  I look forward to helping you buy and sell your home and investments with all the same drive, professionalism and personal touch that I've done in all the years past.  Happy 2018 and I'm always here to help!

                                                                       

11 Questions You Should Ask A General Contractor

A past client just reached out to be the other day and asked about what she should look into when hiring a General Contractor to update her home.  So I took this as a great opportunity to write about it and share.  I reached out to an old friend, Kevin McCabe, who has a contracting business in Raleigh North Carolina called KLM Designs (see his Facebook page here  KLM Designs Facebook ) and asked him what prospective clients should be asking when they are looking to hire someone.  Most of the tips below came from him and you can't get better information than from the source itself so here you go.  

This is a list of 11 things you should be asking a General Contractor when you are shopping around.


1. Ask for proof of insurance
2.  Make sure they are licensed then find out how long have they been licensed. Here is the website for California where you can check http://www.cslb.ca.gov/
3. Can they supply referrals of people they've done jobs for?
4. Ask for their estimate on how much and how long they think they project should take.
5. What is included in their estimate? Such as, is this a total for all work and materials or are you going to be buying certain materials yourself that are not included in the estimate?
6. How many people work for that general contractor? Or is the General Contractor subbing out the work and if so, how long have they worked with the people they are subbing out the work to? 
7. If you live in a condo or home that has an HOA, ask the contractor if there are specific permits or approvals they need to get ahead of time and if so, how to get those?
8. Talk about the process of getting permits on the work getting done or if you choose to forgo that.
9. Ask about how the payment will be handled for the job.  Every General Contractor does it different and it can largely depend on the size and scope of the job.  Some examples of payments can be:
Larger jobs may charge 1/4 down, 1/4 on day one, 1/4 at a certain point during the job then the remainder when the job is done.  Others may ask for 50% upfront and the rest when the job is complete.
10.  Ask what you should expect during the work. If you are working on a kitchen, you may need to use a hotplate or microwave for a while to eat and also find a make-shift place to clean dishes. 
11.  Ask how any future issues resulting from the work should be handled.

                                                                       

7 Things That Make Homes In Los Angeles Unique

If you've ever lived in places other than Southern California then moved here, you'd notice some things that are different about the houses we have.  As someone who has lived all over, I'd like to tell you what our homes here in LA have that differ from homes in other places.

1. Not too many homes made of brick. You'll find brick homes in most other states across the US but not here.  Earthquakes and brick homes don't go together well.
2. Not all homes have Heating and Air Conditioning. There are so many homes in LA that were built well before these amenities were common to every home. So unless your home is newer or someone has added Heat and Air, you may find homes that still don't have it.  Also, homes closer to the beach typically don't need AC since the weather stays so mild there.  Beach city homes may have heat but a lot of them opt out of having an air conditioner.
3. We don't have a lot of "Neighborhoods" here.  In a lot of American towns, if someone was asked where they live, they may say something like "Stoney Brook Meadows" or "Oakwood Heights" and you would see a little sign that has the name of your subdivision at each entrance.  However, here in LA, when people tell you where they live it's typically the name of the city or a locally-known name of the specific area in the city such as South Pasadena or Hancock Park.
4.  You will see a lot of homes that have air conditioning units on the roof of the house.  This can be found in a number of cities other than LA but if you haven't been to those cities, it may be a surprise to some to see the AC units perched up there. But with large lots being hard to come by here, it sure saves space.
5.  LA may hold the most vast amount of styles of homes than anywhere else in America.  Now, this is just a guess I'm making here but I would be surprised if any other place holds as many different styles as we do.  From Colonial, Mediterranean, Mid-Century Modern, Farm houses, Victorian, Cape Cod, Craftsmen, Contemporary, Tudor, Ranch and on and on.... Our mild climate allows for just about every style home. And architects love to come here to flex their creative muscles so-to-speak because of our climate and many different landscapes to work with.
6. Some of our houses are on stilts that hold part of the home that is over a steep hillside.  This was a unique characteristic I had not seen before moving to LA that still fascinates me.  And it's very common in places like the Hollywood Hills.
7.  It's not common to have basements or attics you can walk in here.  Most of the cities I've lived in have basements, whether they are storm basements, partial basements, or full basements that are used as extra living space.  Also, attics where you can pull down a folding ladder to walk up into it or a door that leads to stairs that go to the attic are common in many places but not in LA.  Here, you may find "California basements" which are usually the size of a closet but even those aren't common.  And while we have attics that hold ducting and insulation, it's not usual to find walk-up attics here.

If you don't live in LA and get the chance to come here, make a point to drive through some of our cities and look at the homes.  If you like looking at houses as much as I do, you will find some very fascinating, beautiful and unique houses while you are here. 

How Much Does Your Agent's Reputation Really Matter?

The reason I'm writing this post today is because I just closed 2 escrows where the agent's reputation got them the deal.  One was on a listing I had.  I called someone I already knew who worked in the office of the agent that wrote the offer and asked for some insight on him.  I got good feedback, accepted his offer and the deal went smooth.  While working for some buyers of mine, I submitted an offer where the listing agent called someone in my office to ask about me.  The person they asked gave good feedback, our offer was accepted and again, the deal went smooth.  Two back-to-back cases where an agent's reputation got them their clients a home.
So you're thinking about working with an agent and you don't know them personally?  You've seen their flyers or their photo on your local bus bench.  Maybe they do a lot of local business so you think they are good to work with based on these things, right?  Don't be so quick to act on that.  Who you are working with is who is representing you in any given transaction.  And there are things about that agent you may not see or know.  Maybe they are known for being unprofessional and not returning messages and phone calls. Or maybe they have a reputation of being difficult to work with (and you can be a great negotiator without being a difficult agent, in case you were wondering).  Be warned, if you have an agent like this, it can hurt your chances of selling or buying a home.  And if you get in to escrow with a difficult agent, you may feel a lot of unnecessary drama and stress.
Of course you're wondering "How do I know if this agent has a bad reputation?"  You most likely wouldn't.  But use your instincts.  Are they professional with you?  Do you get a good feeling from them that they are going to work for you and not for themselves? Maybe stop by an open house they are at and see how they are interacting with people and other agents that come in.

Call me if you are thinking of buying or selling.  I'm always here to help

Seller's Net Sheet

A net sheet is a breakdown of the costs associated with selling a home.   Emile L'Eplattenier, a writer for FitSmallBusiness.com asked me whether or not I use a Net Sheet when I am talking to potential sellers or not.  He included me in his article which you can read here: 

                               Seller’s Net Sheet: Free Template & Tips From the Pros

What’s Good in the Hood? Six Ways to Check Your Neighborhood’s Vibe

I'm in another article regarding real estate. Check it Out

 What's Good In The Hood? Six Ways To Check Your Neighborhood's Vibe

LA Schools And Real Estate: What You Need To Know.

                                                   
                                                     Attention Parents!

Attention Parents To-be!

   Attention People Who Know People With Children! 

I work with so many people who would like to buy a home in a "Good School District".  And, I work with people who don't have young children, however, they are curious about the future resale value of their home based on the district it is in.  So, if you would like to know about about the Los Angeles Schools, this is for you. I've personally worked with this organization before for my own family needs. I've also held events where I invited them to come speak about how to get into the school of your choosing. And most of of their seminars are FREE.  They cover a wide variety of topics regarding school and here are just a few:

1. How to navigate Public elementary schools and admissions

2. How to navigate Private elementary schools and admissions

3. Understanding typical language development in preschool and elementary school ages

4. LAUSD gifted/talented programs

5. Summer is Coming! What do I do with my kids now? (okay, I made up the title but the event is real) 

Parent's Education League is a non-profit organization that helps parents in LA understand our schools and what they have to offer.  For a list of calendar events they offer click HERE 

Best Time To Buy A Home Is When It Is Raining

Yes, that's right.  The best time to buy a home is when it's raining.  And here's why...if you haven't heard, most people in LA melt in the rain. So there typically aren't a lot of people looking at homes when it's rainy.  So if you happen to see a home on a weekend when it's been raining and put an offer on it, you are likely to be up to less competition from other buyer.  Another great reason to buy a home during a rainy time is that is the best time to see what an inspector has to say about the home when it's been through some wetter weather.  Can he see any leaks from the roof? Are there any areas of the home where water intrusion is happening? Does the landscaping or slope of the property puddle or hold water? And if you are in the hills, what does the street the home is on look like during a down pour?  Do you see any structures you would worry about because of the rain? So, while we love our sunny warm weather here in LA, our city and homes weren't always designed with a lot of rain in mind and therefore something as simple as rain can tell us a lot about whether or not a home will be a good buy.  So, while it's raining, get out there and see some houses. I have my rain boots and jacket ready to go so call me when you are ready to buy or sell. 

How To Find A Home That Is Not Listed To The Public

Shhhhh!! It's a secret.  

I have been very successful at helping both buyers and sellers with pocket listings.  Over the years, I have been able to get a great deal of buyers into homes that were not listed to the public.  In fact, I have another one at this very moment that I found for my buyer.  So, what is a "pocket listing" you ask?  They are homes for sale that aren't listed to the public.  And why would someone want to sell their home and not list it publicly?  Well, there are a lot of reasons.  Such as: Someone may have a small baby or sick family member and they don't want a lot of people in and out of their home.  They may be strategizing the sale of their home in hopes that if they find a buyer who is getting a home that no one else knows about, the buyer will put their best-foot-foward to make the deal happen.  The sellers may be asking to put the home on the MLS but, through word of mouth and close-working relationships, an agent could get a buyer into a home before it becomes listed on the MLS. 

And I have a wide reach of people I know that help me find homes not listed on the MLS.  And it's not just about finding a home that isn't listed...but also getting the other agent to accept my offer rather than putting it out for the public and hoping to get multiple offers.  It's not an easy task.  So, call me if you are ready to find that home that no one knows is out there.  

Did you hear me on NPR?

Ben Bergman from NPR called me the other day to ask me about sales in Porter Ranch after the gas leak.  He read my name in an article from the LA Times when they called me to ask about the same subject a few months back.  I had a number of people reach out to me telling me they heard me on the segment on the radio.  I've been very lucky to be the go-to realtor in the valley for many media sources like the LA Times, Trulia, Realtor Magazine and more.  Adding NPR to that list makes me very proud and I am blessed that I keep getting the opportunities.  But more so, I work hard to stay on top of what is going on the market in my area.  And when you are looking for a realtor, they should know all the things about the local market and what may be causing a change or any foreseeable changes that may come.  All these media sources trust that I am in-the-know of real estate here in the valley.  So if you are looking to buy or sell your home, give me a call. Listen here (corrected link if you read this before) http://www.scpr.org/news/2016/10/07/65419/home-prices-in-porter-ranch-not-effected-by-gas-le/

                                                                               

Loan Approvals For Condos May Be About To Change

For years, there have been restrictions on buyers being able to get a loan on certain condos.   One of the big obstacles for buyers and sellers has been that if the building had more than 50% of the units being occupied by renters, then loans could be denied for prospective buyers on a unit in that building.  This is a harsh restriction for many reasons.  If the building was small, such as a 6 unit building, then if 3 were rented, that would be 50%.  Plus, if you need to sell your unit and these restrictions are in place, then you may be stuck having to rent your unit yourself which could be a domino effect on the entire building causing a building to have more and more renters over time.   But the FHA has proposed a change in the rules and this is what the US Department of Urban Housing and Development said on the issue:

"FHA currently requires that approved condominium developments have a minimum of 50 percent of the units occupied by owners. While having too few owner-occupants can detract from the viability of a project, requiring too many can harm its marketability. Through this proposed rule, FHA is specifically inviting comment on this issue and is proposing to establish an allowable range between 25 and 75 percent. The range allows FHA to choose a specific percentage that is responsive to future market changes."

Another big change that may come is in the ability for a buyer to get an FHA loan on condos.  As the way things stand today, an entire building must be "FHA approved" in order for a buyer to use an FHA loan.  This process requires the building pay fees and pass an inspection before approval.  Most buildings have decided to not go through this process since the market has been on the rise and units are able to sell to buyers not using FHA loans.  But this leaves FHA buyers with very little to choose from. We may be seeing "spot" approvals for condos soon which means the whole building may not need to have the FHA approval in order for a buyer to purchase a unit.  The US Department of Urban Housing and Development posted this:

Under certain circumstances, FHA is proposing to insure mortgages for selected condominium units in developments that are not currently approved. An individual unit may be eligible for Single-Unit Approval if:

• The Condominium Project is not on the list of FHA-approved Condominium Projects, or the unit is not in a project that has been subject to adverse determination for significant issues that affect the viability of the project;
• The individual unit is located in a completed project that has not yet been approved;
• The unit is not a manufactured housing condominium project or located in a two-to-four-unit project;
• The condominium unit is not a manufactured home and is in a project that has at least five dwelling units; and
• The unit is in a project in which the amount of Single-Unit Approvals is limited to a maximum of 20 percent of the total number of units in the project, which may be reduced to as low as zero percent via subsequent notice.
• 
  

To read more about changes coming to loans on condos, read here http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2016/HUDNo_16-146

                                                                               

What Is Happening In The Market Today? - September 2016

We've been on a rising trend with home prices for quite some time now.  I remember in January of 2012 I wrote an offer for a home that was just over $2 million.  My buyers had all cash and they offered over asking price for the home.  There were several offers on that home and our offer was not the highest. In fact, the other offer that was higher than ours was also all cash.  That was my first sense that the market was making a turn.  From then on, it's pretty much been on the rise and we've been in a seller's market.  I'm now starting to see another change.  Sure, the season is slowing down as it naturally does around labor day and after the kids get back in school but I've seen this new wave in the market for a couple months now.  And here is what I'm seeing: Homes that are priced right at the price they will most likely sell for may get an offer or two or may sit for a few weeks.  Homes that are priced barely over where they would most likely sell are getting offers but the offers are lower than the asking price or the home sits for quite some time and either lowers the price eventually or the owners take it off the market.  This is a big change in where we've been for the past 4 years in real estate.  Up until now, most buyers knew that making an offer under the asking price would just leave them out on the curb, so-to-speak.  And sellers had a big upper hand for so long, that they could sell their homes and get the buyers to agree to many interesting terms that otherwise would seem over-the-top.  But there is a good chance that we may be getting into a market where buyers and sellers are on a more level playing field.  What does this mean for you? 

First, if you are buying a home, you still need to come in with a strong offer.  That doesn't mean offering up your first born either.  It just means that your offer needs to be attractive and fair.  You're most likely not going to be met with crazy expectations from the sellers either because sellers are learning that buyers are getting picky and walking away when sellers behave boastfully.  

Sellers...you need some great guidance as to what to do to make your home look appealing to buyers. Before now, sellers would look past a messy kitchen or shotty gardening job. That isn't the case right now.  They expect to see a clean home unless you are selling your home as a fixer.  You will also need to price it very well.  For the past couple of years, I've advised sellers to price the home just under where it should sell for.  I still say the same today.  If you price and advertise your home well, then you should hopefully get a few offers.  This will still give you the chance to pick from the most qualified buyer.  But if you are pricing your home too high, then you may see it sitting around for a while and possibly still get negotiated down quite a bit after it sits.  

But both buyers and sellers should really be working with an agent that is in tune with where the market is today so they know how to give the best advice possible.  And the market is different in the Westside than it is in the Valley so keep that in mind as well.  And if you need help finding or selling your home, call me.  I'm always happy to help.  

                                                                           

If Home Prices Fell, What Would That Mean To You?

What Would You Do If Prices Fell?
 Talking about real estate is always a hot topic. And everyone seems to have an opinion on where things will go.  I too have an opinion but fact is...these are all just opinions.  If anyone had the crystal ball, they would be rich. But let's talk about reality and "what-if".  I promise, you will find this VERY interesting. 

 

• If prices fell at the end of this year by just a bit, say a home that is worth $500,000 fell to $475,000, then what does that mean to you?
•  
• If you own your home, then it means you just lost $25,000 worth of equity to buy that next home.
•  
• It may mean that you will have to wait to move.  If that is the case, are you okay staying where you are?
•  
• I know what you are thinking though...if prices fell then my next home's price would be relevant, right? (We will take a look at that below)
•  
• If you own an income property, then you just lost money.
•  
• If you don't own, but want to buy you may think this is great for you, right? (We will take a look at that below)

 

But there are two main factors people consider when buying a home.  One- how much will the monthly payment be? Two- how much down payment will I need?

Follow me here:  If that $500,000 house fell to $475,000 you would go from $100k down payment to $95k.  That's only $5,000.  And chances are you just lost roughly $25k in equity.

And if prices fell but interest rates went up only 1%...well, let's take a look at what that means. 

This first screen shot shows interest rates at 3.5% for a $500,000 home. 




This second screen shot shows interest rates at 4.5% for a $475,000 home. 


So, in my example of everything you've seen, if a $500,000 home fell to $475,000 and interest rates went up only 1% then you would be paying more per month for your mortgage and as for your down payment, you would only save $5,0000.

Let's talk more about real estate and the what-if's.  If you are wanting to buy or sell a home, then my job is to help you accomplish that.  And you need to be informed of all the possibilities that could affect you and your decisions.  So call me and I'll be happy to go over this with you