Use A Well Known Lender When Making An Offer

I'm doing it again...putting in an offer on a place that already has 5 offers. So if you have found yourself up against multiple offers, there are a lot of different strategies you and your agent can try to work with in being the offer that is chosen but there is one very important key element... your lender.  The agent reviewing offers wants to know the home will sell and close and if you are using one of these lending companies you see on TV at 3am, chances are they will go with another offer.  So please get a local, well-known, trustworthy lender to help you with your loan.  And if you don't know of one, ask me for a few references when you call me to help you buy your home. Cheers!

My Home Buying Experience: Part 2

If you've read my previous blog My Own Home Buying Experience: Part 1 then you know we've been pre approved and I have a list of things I would like in a home.  So now we've started touring some houses a couple weeks ago and found that we weren't able to get the things we need in a home in our price range in the areas we began to look in.  So just like trying a new food, I kept my mind open and went to look at some homes in a different area and found that not only did I like the feel of the neighborhoods, but that we would be able to get a lot on our check lists in this area.  And while I thought I would be a hard customer to please since I'm in the business, come to find out, it's my husband who embodies a number of traits of a buyers that keep me on my toes as a realtor. There have been too many times I've come home and the table talk at dinner revolves me sounding like a broken record booo-ing about the fact that my clients try to find the value of a home based on a certain popular real estate website that may rhyme with pillow. That is the last place you should look to try and find the value of a home or base any offer or listing price from. But yet the other night, my husband says..."but I looked on this site and found the home should be worth blah blah blah".  This must be karma for something I've done, I'm sure of it..haha.  But we found a home we really liked this last weekend.  The downside to the home was that the kitchen was super small and so was one of the bedrooms.  The kitchen was updated and I could tell the home owners spent a lot of money since the cabinetry and finishes were top notch...but again, the kitchen was very very small.   The house across the street, which had been updated in the past 5 years and had a terrific view just sold 4 months ago for $60k less than what this home was listed for which had no view.  So we put in an offer that I felt was more appropriate to what the home was really worth without trying to offend the sellers at the same time (but even so, an appraiser would very likely take the sale of the home across the street and use it to value this home). But the according to the realtor of the home for sale, the sellers put a lot of money into the kitchen and downstairs floors and would not budge on the price regardless of the home across the street with the terrific view.  And my husband and I were not willing to budge on the offer we put in so moving on.....more to come soon.

Are We In A Buyer's Market Again?

Here in LA the real estate market has been as crazy as drivers on the 405.  It has definitely kept me on my toes the past couple years.  And here we go again...according the LA Times, we are headed back to being a "buyer's market".  So not only are the interest rates incredibly low but now buyer's may have some cards to play with when looking for a home and negotiating a better price and terms. Here is the article that LA Times wrote about it Housing Price Cuts Point To A Shift In Southland Market
                                                                              

LA May Be Handing Out Stiff Fines Soon If You Are Too Noisy

Wow...I don't know about you but I lived in LA for about 14 years and I've just gotten use to how noisy it can be around town. Not that I like it, mind you, but it just seems to be something I've put up with living here. Back when I lived in an apartment, it was common for someone to throw a party till all hours of the night, screaming and smoking and what-not.  Once, I called the police to come quite them down but the police couldn't even show up for hours after I called them cause...you know...they are busy with all the other problems LA has to offer on a Friday night.  So I just stopped calling.  But now there may be fines attached to a police visit if you happen to be a social host, or have a noisy dog or even if you are using one of those leaf blowers (don't start me on that topic...see previous rant of a blog from early this year).  Curbed LA wrote an article on these new fines that may be in the works if your neighbor is a noisy one.  What do you think?  To fine or not to fine? LA Going To Start Fining People For Fun Parties and Cute Dogs

                                                                           

My Own Home Buying Experience: Part 1

I've been working in real estate for years helping people buy and sell their homes.  And I really try to stand in their shoes when they have questions or have to make hard decisions and let them know I truly care for them and their outcome and work hard to be a great realtor.  I'm now about to start looking to buy a home again and I hope my experience can help me to continue to give great expertise advise to my clients.  So it is now August and I hope to buy something sometime from October to December.  But I'm already starting to prepare and here are 4 things I've done before I've started to go out and look at homes:

1. I reached out to my loan officer to get an idea of what we can afford. It is never a good idea to start looking at homes until you have your loan officer go over your financials to know what your price range is.  You will be shooting yourself in the foot if you look at homes in the $800k range only to find out you can afford $650k.  Then everything you look at will disappoint you from there on.  And no matter how much money you make, there are many factors that qualify you for a loan so don't assume that just because you are bringing in "x" amount of money per month, that you can spend it on a mortgage.   

2. I've already narrowed down the areas we will be looking. And don't think that just because I work in real estate that I should know the exact area I want to buy.  Like everyone else, I have a budget and I have a list of things I would like in a home and they don't necessarily work together in unison.  I will have to make sacrifices on somethings so I'm keeping an open mind regarding certain parts of town.

3. I've written down 2 lists of things that are important to me in a home.  One list includes "deal breakers" which are things that I can not compromise on.  The other is a list of things we would like, starting from most important to least. Below is what I've come up with:

Deal Breakers
1.  Must be in a good school district
2. Can not have a pool that takes up entire yard or is so close to the back of the house, there is little room to walk out the back door before falling in
3. Can not need major repair work if the home is close to our budget (i.e new roof or chimney is falling away from house.....)
4.  Can not be located on a major street with traffic
5.  Must be at least 1,600 sqft with 3-4 bedrooms and at least 2 full baths
6. Can not have crazy add on space or rooms that are nonfunctional or give the layout of the house a bad flow.  (being a realtor, not only are add-ons hard to work with if not done well, but they can make the resale of a home very bad)
 
Things we would like in our home (starting with most important)  
1.  Great location.  We are looking at a few neighborhoods in Encino that we really love, or Burbank would be nice and Woodland Hills as well.
2. Attached 2 car garage or at least a detached garage
3. Good yard space that is fenced in for the kiddos and dog
4. Open living/kitchen concept or the option to open it up (if budget allows)
5. Closets!!! I've lived in a home with little itty bitty closets...I don't need walk-ins but I need good space.
6. Good neighbors. I bet your asking "How would you know if they are good or not?" Well, you can ask questions like: Do you know if they smoke? Do you know them and can you tell me about them? You can also call the police station to find out if their have been any reports taken recently. And you can just look around and see how their home and yard are taken care of.  Listen for a loud dog in the yard.
6.  Don't want master bedroom to be adjacent to other bedrooms
7. Good laundry area not next to bedrooms
8. Some updating would be nice but if not, then the counters and floors need to look as if they've been well taken care of
9.  Would prefer no pool 
10. Would love trees in the back yard or shade coverage of a sort
11. Walkable to a park or some shops or restaurants

4.  And I've already got a automated reminder set up on my MLS that sends me new homes that come on the market so I can get an idea of what we will be looking at starting in October.

So I am still a few months away, and these are the things I've already done and if you are looking to buy a home, start doing these things as well! Keep reading my blog to find out how my home buying process is going and learn about things you should be doing when looking for a home yourself.  And call me....I can help you find a great home and we can swap home-buying stories while we are working together. 

                                                                                  

3 Things You Should Be Doing To Sell Your Home In Today's Market

It's May 2014 and the market is lighting up again.  Not only is this a big time for home owners to start listing homes with the summer approaching but interest rates are going down and this makes for a great time to position yourself to sell your home. So here are a few tips to get the best price and buyer for your home. 

First, if you haven't listed yet, you should talk with your realtor about stirring some buzz among other brokers before your house hits the market.  They should be talking about and pitching your home before it hits the MLS.  They should be talking about your home on all social media as well.  There is something about being able to get something that isn't available to the public that creates a great excitement with buyers which can lend some people to go ahead and put their best foot forward in terms of an offer right off the bat which can benefit you, the seller.

Second (and I've preached this one before but I find it so important, I have to say it again) Don't over price your home when selling it. In fact, pricing it just under the value will do you a world of good in the market.  And here is why...you are likely to get multiple offers when people see your home and it's priced lower than the competition.  This will not only drive up the price when buyers compete for your home, but you will also have a selection of buyers to choose from which is good for you in terms of finding the most qualified one for your home. So price is strategically and not emotionally!

And lastly,  go ahead and get it ready to be shown today.  Don't wait. Go ahead and get the landscapping done, clean the inside and get the photos taken.  The rates have dropped again and buyers are eager to make a move so you should be ready to make yours today too.

While your are thinking about buying or selling, think about this...The LA Times has turned to me time and time again for my expert option on our Real Estate market.  They know I work hard and I am the go-to person when it comes to buying and selling homes, and so should you.  Read the latest article from today's paper where I am quoted again New Home Single-Family Homes Jump 6.4% In April  And when you have any real estate needs, whether you are buying, selling or leasing, call me.  I am always here for you.  

Social Media And Your Real Estate Agent

How relevant do you think social media is when it comes to buying and selling your home? Do you think your agent should be an active participant on certain sites? The age group which is currently buying the most homes is somewhere between 30 and 50.  While 16-24 year old age group is still the largest social media users according to Smartinsights.com, 25-34 and 35-44 are a huge force as well.  And even more interesting, if you are 45-54 years of age, you are the largest growing users of social media.  And social media covers a wide range of uses...you can connect with people within your own industry, you can advertise your services or products, it allows you to reach out to people you would otherwise not have contact with, you can search for services and products, view people's opinions on them and put out your own opinion on anything you want.  Social media is faster and more accessible that a newspaper, is used by everyone from your neighbor to Target stores, your local police station and even the president of the United States. So, I'll ask again...do you think your Realtor should be on social media?  I sure do.  Because even if it's something you don't personally use, it is all around you.  I write blogs so that people can hopefully find answers to questions they may have regarding real estate.  But I also want to have a good "online footprint".  I'm on Facebook, Pinterest, Twitter, Blogger, LinkedIn, Youtube, Google + and a few more.  I also use QR codes, mobile apps, Yelp, my own personal website and many other tools.  Doing all these things allows me to network with other Realtors, meet new clients, attract attention from people that can help my business grow, advertise your home and search for homes that may not be advertised for sale on the MLS.  You want your Realtor to have as many reaches as they can in their local community as well as online.  And social media is one of the strongest ways to do this.  So, next time you meet with a Realtor regarding buying or selling your home, try searching them online first and see what they are already doing for their business in terms of social media...it can really make a difference.

Do Realtors Try Working In A Certain Price Range Of Homes?

One of the great things about Los Angeles is that you can drive down many areas and have multi-million dollar homes on one block, then a minute later you could be in a neighborhood where the homes are closer to $600k. Some of these homes were built in the 1940's where others are less than 5 years old.  And we have our traditional Ranch style homes mixed with Tudor houses that can be right next to Spanish Revival homes.  That being the case, most of us work with an array of different home prices.  It is not uncommon for me, as well as most realtors, to sell anything from a first-time buyer's condos to estates and everything in between.  And for a realtor to say they only work with certain priced homes is, in my opinion, not a great way to work.  See, my ultimate goal as a realtor is to make my clients happy.  Nothing brings me more business than referrals and word-of-mouth from people I know and past clients. And if I do a great job for a first time buyer on their condo, then maybe they're family that has owned their home in the hills for many years will want to work with me too.  And it goes the other was as well...if I sell an estate to someone and they mention me as a terrific realtor to work with at a dinner party, then maybe someone there is ready to move from their first home into a neighborhood fit for their growing family. And I want to make everyone I work with feel as if they are just as important as the next, because ultimately...they are.  Everyone's money and investments are very important to them no matter what price range they are in.  Their questions about the market, or disclosures they are given, are all very pertinent to each person.  And making sure that each client can reach me, get answers to questions they have, and feel safe about asking me whatever they need answered, is my goal whether your home is $2,000,000 or $300,000.  Because I want the same result from each client I work with, and that is more clients I can do a great job for in the future. It all comes back to referrals...and that is how I stay successful as a realtor.  Now, there are some realtors that generally stick in very high-markets, but chances are that if you are working with someone on your million dollar home, that they have also recently sold one for less than half of that as well...and you always want someone who gives the same quality of their attention to both. 

                                                                    

San Fernando Valley Real Estate Market Update April 2014

Here is your San Fernando Valley Market update for April 2014

When Buying A Home-The Selection Of Inspections

When your offer is accepted on a home, one of the next steps you need to take is to get that home inspected.  Being that there is a limited time frame on the purchase contract to have inspections done in, I suggest to my clients to get the general inspection done right away just in case the inspector recommends having further inspections done. If the home is a single family residence (not a condo) then I tell them they may want to get a sewer inspection, especially if the front yard has a lot of trees or shrubbery.  And if the house has chimney's, I always suggest getting a chimney inspection (even though these can be a double edged sword).  There are a number of other types of inspections you may want to get as well including roof, HVAC, pool, geology, mold and other hazardous materials, structural or foundation, pluming, and the list goes on.  In most cases, the general inspector will go over as much as they can and point out the areas where a specialist may be needed to do further inspections (although most general inspection reports say you should have a specialist check out every area that can be looked at)  But two of the more common inspections I see that can be big red flags, and you should pay close attention to, are the sewer and chimney.  First off, I think every real estate agent should prepare their clients if the home they are looking to buy has a chimney.  Most chimneys here in SoCal, should just be considered decoration and not meant for real firewood or even gas logs usage. There are so many homes here that were built over 50 years ago and most chimneys have not been maintain or repaired over the years.  And on top of that, we have earthquakes here which always wreak havock on those.  So most chimneys need a good amount of repair which can run in ranges from $1,000 to $20,000 and upward in order to be in proper working condition.  Unless the chimney can do structural damage to the house (as in fall away from the house) then repairs may not be necessary and you may just have a nice mantel with a great location for a candle collection.  And to top that off, I run across chimney inspectors as well as sewer inspectors all the time that seem to give an extreme, over-exaggerated diagnosis of issues that may or may not be there.  Another good thing to look into is getting a chimney inspection done by someone who does not do the repairs as well so there is no conflict of interest. And on a sewer inspection, make sure you see the video camera go through the pipes and have the inspector go over what they see so you can see it as well.  As for any other inspection you may have, if an inspector gives you alarming news that seems to coincide with putting a big dent in your wallet, consider getting a 2nd or 3rd inspection.  Unfortunately, some of these inspectors are more out for work for themselves rather than giving proper diagnosis. So while it may cost you an extra $300 to get another inspection, it may save you thousands in the end if you can avoid getting unnecessary work done.  And as always, you may want to get recommendations from your realtor on who to call for these inspections and services since we may have some insider knowledge on whether they are on the up and up or just out for some extra $$. 

                                                                 

Sold! Porter Ranch Gated Community

Congratulations to my client Mike who can now call SoCal home.  He bought a lovely home in a highly desired gated community of Porter Ranch.  Welcome to the town that is known for only having two seasons: Summer and Awards season.
                                                            
                                                                    

Why Are "All Cash" Offers Considered Better Than Ones With Loans?

This is a very important topic if you are looking to buy a home so read on...
Have you ever wondered why offers that are using all cash are viewed as a better choice than ones that are taking out loans?  Doesn't the seller get their "cash" in the end once the house is bought whether it comes from under someone's mattress or a bank?  The answer is yes. Once the deal is done, the seller will get their proceeds whether you got a loan or paid all cash.  But an all-cash offer is better for one Big reason...you don't need a loan to buy the house.  Okay...well that is an obvious statement, but so what? Right?  No...loans are very hard to get these days and just because a loan officer pre-qualifies you to get one, doesn't mean that you will.  And it happens All the time! I can't tell you how many people I have seen go to some bank or online loan place and get qualified only to be knee-deep into buying a house then get denied.  Or better yet, all the sudden the loan people want 'this', 'that', and 'the other' from the buyer to get them the loan and it puts a tremendous stress on the sale process which can either delay the sale, cost the buyer money because now they have to pay a per-diem to the seller because they aren't closing on time, or even worse, loose the buyer's deposit.  And some of the things I've heard from loan officers that they need in order to proceed with the loan can be things like a receipt showing where the money for $400 cash deposit into your bank two month ago came from, or asking the buyer or seller to fix the cosmetic crack in the ceiling before proceeding and prove it is fixed by having someone come out and check it, or removing a 6'x6' wooden platformed deck in the back yard and getting city permits to do so, before the end of the sale.  Or then they can always simply say you don't make enough money, even though everything seemed fine a month ago when you got pre-qualified.  The list goes on with the number of things that can happen with a loan in the middle of a deal.  So not having to bother with a loan can be a much better choice. But if your agent conveys to the selling agent that the loan officer being used is a good/trusted source, or the selling agent happens to know them (and we use some of the same guys around town because we know they are good) then your offer will stand a better chance if you are up against an all-cash offer.  And even if you aren't competing with all-cash, get a good loan officer just for your own good.

So, the lesson here for all the buyers out there looking to buy is, get a loan officer that is recommended to you or is connected somehow with your agent.  I have a few that I always recommend to my clients and I know people have to be thinking "What do I get from recommending these loan officers?" I'm sure some people think we get money or something from it, right?  Well, I don't think the loan officers I've recommended for years have even bought me so much as a cup of coffee.  But what they do for me is get the loan done.  And if things get harry in the middle of a transaction, I can just pick up the phone and talk to them and get answers.  This isn't the case with some of the random loan officers some of my clients are using.  I've called some of these guys for days with no return phone call or email which makes me nuts because these are my clients and their money is on the line and its my job to try to make sure things don't get scary.  But with a loan officer I know who I've seen get the job done time and time again, not only can I easily reach them for answers, I can also hold their feet to the fire to get things done being that I bring them business.  So, find a good loan officer.  Call a friend, ask your agent, but don't just find a place online or walk into a bank and grab one.  It is really in your best interest to have someone who truly cares about your best interest working for you. 

                                                                      

What Is The #1 Thing An Agent Will Say To Get Your Listing? Watch Out, This Could Cost You

It happens way too often that when sellers are talking to agents and trying to figure out who to use, that their judgement becomes clouded by hopes of a over-inflated selling price of their home promised by an agent.  I have lost listings to agents that have promised super high selling prices to get the listing and just about every agent out there has been through the same thing.  But the market doesn't lie....and when homes that are similar to yours are selling at a certain price, don't be fooled that yours may be able to sell for a much higher amount.  As a seller, you should do your own home work and find out what the last 2-3 houses in your neighborhood sold for in the past 4 months.  Look at the photos online and compare the size of the home, the upgrades and amenities.  Now, let's say I tell you your home's true value is about $1 Million.  And you have another agent that comes in to meet with you and tells you your home is worth $1.3 million dollars (even though you've seen the sales nearby and they are closer to my estimate)  If you choose to list your home at $1.3 million there are a number of things that could cost you big time and here are just a few:
   First and foremost, you've chosen to work with an agent that isn't upfront with from the start and that is just a sign of where things may go as they move further along. And you have just signed a contract under this agent that is binding you to them for months.
   Next, if your house is prices too high, the initial boom of interest in a home that just hits the market, will sail right past yours.  Other brokers will know before even seeing your house that it is over priced and most won't even bother to come to the broker's open for that reason alone.  And as for buyers, you will probably get an open house or two where people stop by to see the home, but buyers will be looking for similarly priced homes in your area and quickly see that yours does not compare.  The lack of interest will either keep your home on the market at this high price for a long period of time, or the agent that you signed with will then convince you to drastically lower the price to attract offers.  Either of these are not in your best interest.  See, when a home first hits the market, if it is priced and marketed well, it should attract a good amount of attention.  This is the best time for your agent to do their job and try to get a flurry of buyer's and buyer's agents interested enough to make offers...and hopefully you will get a great one quickly, if not more than one.  If you pass this initial excitement phase, you may be expecting low offers, even after you lower your price because sellers will see how long your home has been there and they will come in low, knowing they are probably the only interested party actually writing an offer.
Lastly, unless someone is willing to pay all cash for your home, your home can only be sold at a certain price that an appraiser working for the buyer's loan officer says it is worth.  It is not uncommon that a buyer will put an offer on a house of $1.1 million knowing full well that the house will appraise closer to $1 million.  And when that appraisal comes in, the buyer will have kept your home off the market for a couple weeks at that point, then ask you to lower the price so that they can get the loan to buy it.  Some sellers won't do this and put their home back on the market, which then makes the next buyers ask what happened with the first buyer.  Or, the sellers feel that is their best option to lower the price and get the home sold...which to a seller can feel like a defeat after being promised by their agent they would be able to sell it for a much higher price.

So, when thinking about listing your home, ask yourself...is it worth it to gamble with an agent who sounds to good to be true, or are you serious about selling your home and doing it well with the right agent?

                                                                       

When Dealing With Multiple Offers, Is The Other Agent Being Honest?

If you have been in a multiple offer situation before, I'm sure you have asked whether the other agent is being honest with you and your agent.  Maybe you've heard things such as "You need to be at "this" price to get the home" or "You will have to put shorter contingencies in your offer".  Things like this, and other things, can be suggested by the listing agent in order to get your offer accepted.  So, is that agent being truthful or are they yanking your chain to get a really high offer?  Well, let's sit in the listing agents' shoes for a minute.  Chances are, yes, they have another offer, if not a few.  Let's say they have 3 offers and the offers are like this:
Bob offered $500k
Sally offered $515K
John offered $499K
Then your offer comes in at $510K
Since your offer is in an acceptable price (and lets say all other things on the offer are similar or the same) they will take your offer into consideration.  Now, while looking at this from the listing agent's POV, in order to get the best price for the client, they could call you and Bob and say that $520K is the price that will get the offer accepted, which would be higher than Sally's offer. Saying this to you and Bob gives you guys the chance to raise your offers and get the house.  If neither of you choose to do this, they will most likely accept Sally's offers since this is still the highest.  But I know what you are thinking...it is possible that they have 2 offers and it goes like this:
Bob offered $500K
You offered $510K
And are you thinking that the listing agent calls and tells us that they have multiple offers and in order to get our offer accepted, you must come up to an offer of $520K (which would be pitting your against yourself)?  Chances are they are not doing this...and here is why:  If I were the listing agent, my job is to get the best and highest offer accepted to my client.  Having 2 (or even 3) good offers on the table is better than one, just in case something happens to my first chosen offer, I can have another as back-up.  If I were to tell the highest offer that they need to come up in price (which is playing a game of sorts), there is a chance the highest offer could walk away all together.  Then, not only have I lost my client's highest offer, but now we only have one offer to work with and if something goes wrong with this one offer, we will have to put the house back on the market, taking up more time and money from everyone involved. So, it would not be wise for an agent to gamble like this and in my opinion, I would not think this to be something a good agent would do.  So, if you ever find yourself in multiple offers wondering if someone is yanking your chain, try to think about what the other agent maybe be thinking and what risks would be involved if they were not being honest...chances are, they are just trying to get the best deal for their client and what you are hearing, is the truth.

                                                               

I'm Mentioned In The LA Times Again

I feel so lucky when they call on me for stories.  It's nice to see my name in the paper and I hope they continue to call.  Check out this latest article on our real estate market Home Prices Are Slowing, Case-Shiller Index Suggests