All-Cash, No Contingency Home Buyers. Where's It All Coming From?

If you are out looking for a home, and had have make a couple offers that were not accepted, chances are, you have heard that someone else with all-cash, and maybe even, no contingencies, got their offer accepted. These types of offers are spreading like wild fire. But...where is all this cash coming from? Who are all these people who have this type of money available? And no contingencies? That sounds crazy, right? To be honest, I have had a number of buyer ask me if all these people with all this cash are foreign investors. Everyone has their own idea, or conspiracy theory, of what is going on. Well...who better to ask than a real estate agent? So here we go:

Yes, there are foreign buyers out there right now, but...when has that not been the case? This is LA and we have always had a large variety of foreign money here. And no...I'm pretty sure there isn't someone sitting somewhere like China on the phone saying "buy now".  So, yes, there are a lot of foreign buyers in the market right now, but that isn't everyone with all-cash.

What about the real estate investors or "flippers"? Is it them doing these deals with all-cash? Yes, there are a number of investors and flippers out there buying houses with all-cash. But fact is, I've been on the buying side of a lot of deals, and I've seen houses being sold to all-cash buyers that weren't worth flipping because they were in good shape and there wouldn't have been enough room for someone to buy the house, put $ into it, then resell for a profit. And the people buying it, weren't going to rent it out, so, it's not totally all the investors either. Although, some investors are buying houses to rent out and sell in a few years hoping to turn a profit that way.

So...let me turn this article back on to you, the reader. Chances are, if you are reading this, that you are out looking for a home to buy. Well, where did you get the money for your down payment? Have you been saving it for when you felt comfortable buying? Or maybe it was left to you in an inheritance? Perhaps a family member who may have thought of leaving you some money after their passing decided to go ahead and gift it to you now while it was a good time to buy?  Well, these are the other people with all-cash. Some people are very meticulous about saving money and now that time has come where they feel comfortable about the economy and where it is headed, they are ready to spend it, on what they hope will be a good investment in their future. And there are a lot of people that inherited money years ago, or even just recently, but now this is the time to put it towards a home before prices soar again.

 So, there you have it. That is a mix of where the all-cash buyers are coming from. And it's no conspiracy. I mean, why are you looking to buy right now? Well, whatever your answer is, there are a lot of other people thinking the exact same thing. It's no secret. Prices are going up, rates are incredibly low, and people are feeling good about the economy.

And last but not least, the "no contingency" buyers. I honestly don't know what to make of this one. It is a risky move but if this is what you think will get you the house, and there is a good chance it might, than maybe it is something you are up for. Or maybe not. It really is a person to person decision you and your real estate agent should talk about. As always, if you are looking to buy or sell, feel free to call me. I will be available to answer any questions you may have about the real estate market any time as well.

                                                                    

Good Home Inspections VS Bad Home Inspections

Have you ever wondered what makes a good home inspection good? Or just the same, a bad home inspection bad? Here are some clues to look for when choosing your inspector:
I hear it time and time (and time) again from people buying a home "I want an inspector that is going to be very detailed and go over everything" But, do you think that is the only thing you should want in an inspection? I hope not. Or sometimes I will get the buyers who choose an inspector based on price. Maybe the cheap inspection will save you some money, right? Not in the long run folks. If he misses things or doesn't recommend further inspections that may be needed, then you could be left buying a house and finding out very soon that there were things that were overlooked that can cost you a pretty penny to rectify. And at the other end of the spectrum, maybe the guy who charges more will be extra good, right? Not necessarily. So then what makes a good inspector and where do I find one? Well, the best place to find one is to ask your real estate agent. We see dozens of inspections each year, so it is likely that we have a few people's names and numbers that we can give you to choose from. It is also likely we have a few names and numbers you should avoid.
Finding a good inspector is really like finding a good doctor. And sometimes you want someone who delivers the news in a way that best suits your personality. Some people like it as frank as you can give it. Others need gentle explanations of what is going on. And a good inspector should be able to read you, read the situation, and do the same. They should treat a first time home buyer the way a first time mother-to-be should be looked after. You don't want an inspector to overload you with negative news delivered in a harsh, cold, matter-of-fact way. You want someone who is going to give you all the important news, in a way that you can understand, and also let you know that there are solutions to just about everything. And this is VERY important so listen up here...some inspectors like the roof, chimney and sewer inspectors may also give you news in the hope that they can benefit by fixing what they find (and I have seen inaccurate diagnoses plenty of times). I hope you got that point.

Here are a couple of real stories from inspections:

 During a recent sewer inspection the man doing the job said there were a lot of roots in the pipes (by the way, no trees anywhere near the front yard where the pipes are) as well as some separation. (This man was hired based on his low quote to do the inspection) He estimated anywhere from $5,000-$10,000 to fix the problem. Another sewer inspector came out for a second opinion (this company cost a only $100 more than the other one) and wound up cleaning the pipes out, which were just filled with bathroom products and viewing the separation with a higher grade camera to point out that the separation was extremely small and minor. The total cost from this company for repairs was about $200.

At a home inspection this week the buyers chose an inspector that was recommended by their friends because he was said to be thorough.  This inspector delivered his findings to the buyers in the same manner Rush Limbaugh delivers his news. This inspector was so over the top, matter-of-fact, and dramatic. And the clients are first time buyers. Some of the issues he pointed out were that the board along the floor surrounding the water heater in the closet it too high and could cause you to trip and that, to him, was a big safety issue. To paint a clear picture to you about this, the closet was only big enough to hold the water heater and not much else...therefore walking into it is not an option. He also mentioned that a small pipe that drains water from the A/C needs to be looked at since the water coming from this pipe can create a puddle in the dirt on the side of the house. When I asked him why this was a problem his answer was "Because mosquitoes like water and you don't want that" This puddle is situated just near their pool, by the way. 

So hiring the right inspector is a very important decision and the cost of a good inspection is worth more than you will ever know.  Your real estate agent most likely knows a number of good ones you can call, or they should easily be able to find some from other agents they know. So please take the time to find a good one, and listen to your real estate agent's advice. After all, our main job is to look after you and your best interest.  And if you live in the LA area and would like any recommendations on good inspectors, feel free to give me a call and I would be happy to help. And when you are ready to buy or sell, I am happy to help with that as well.
                                                             

My First Time Home Buyers Just Got Their Keys

Congratulations Justin and Kelly on your very first home together! After over a year of trying to buy a home, we crossed paths and just a few short months later, they had the keys to their first house.
                                                                     

Pocket Listings: Real Estate's Hottest Password That May Get You In The Door

It's May 2013 and the real estate market here in Los Angeles looks like the grand finale of the 4th of July Fireworks. It is just exploding. There is so much demand to buy a home right now, that there are a number of growing trends to help both buyers and sellers get the best outcome they desire. One thing that is popping up everywhere are Pocket Listings. So, what are pocket listings, how do they work and how can you find out about them? Well, here are all those answers:
A pocket listing is an agreement between the seller and their agent that they prefer not to have their home publicly listed on the MLS (multiple listing service). There are a number of reasons a seller may choose to do this. One may be that the seller lives in an home where they don't want just anyone off the streets to come walking though it.  This is typical of homes in affluent neighborhoods where the seller prefers that their agent find only qualified buyers through resources other than the MLS.  In today's market a seller may have other important reason to not have their home publicly advertised. I have heard a number of sellers say that prospective buyers have just knocked on their front door with no appointment or realtor by their side. This is not invasive but it may be a safety issue for the seller as well.  Therefore, some sellers are choosing to have their agent go out and find buyers themselves. Another thing that is happening all over is that some houses are getting 20 or more offers on them. Now I know what you may be thinking "How is having 20 offers bad thing?" right? Well folks, to sell a home, all you need is one good, strong offer.  Having 20 offers in front of you can, not only, be overwhelming, but there is a good chance that 18 of them aren't strong buyers that will be able to close the deal. If you have your eye on the market right now, you are seeing a lot of houses come "back on the market". This can be frustrating and time consuming for a seller to think their home is being bought...and then it's not.  Buyers don't believe they have the luxury of time where they can see the house a couple of times, think things through, weigh their options and then make an offer....and they are kind of right. They may not. So they are making offers on home just because the home is in their desired location and the price range is what they are looking for. Buyers are also assuming their offer may not be accepted so sometimes, they aren't even serious about making this offer. If I am listing your house and we decided that we are not going to put in on the MLS, I can find serious and well qualified buyers that are more likely to get you that good price you are looking for and actually follow through with the purchase. If you are a well connected real estate agent in the community, then you have surely been speaking with other agents that you know have good buyers ready to make a purchase, and that is how we find you one, or a few good buyers to choose from as oppose to the 20 that may or may not be real. Another reason to not publicly list your home may just be a convenience factor. You may not have a flexible schedule where you can make your home available for showings all the time. Or maybe you don't live in your house and you have tenants there. They may not want to open their doors a dozen times a day to let people in to see this house. So maybe, you just want your agent to bring a few serious buyers in to see and get an offer that way.
There are a number of reasons, as a buyer, you will want an agent that has their finger on the pulse of this market as well. Not only should your agent be connected with the agents in their office, but they should also be connected with the agents that are listing a lot of homes right now. I get to hear about these pocket listings and if I believe that my buyer will put in an offer at a respectable price, with good terms and conditions, then I may be able to get you into seeing these houses that aren't on the MLS. But please realize this, just because you are in the market to buy a home, doesn't mean that any agent will be willing to help you. Because the market is so competitive, your agent may need to know and understand that you are ready, willing and able to make a purchase before they decide to work with you. So if you are someone who is looking to buy or sell your home, and you have questions about how to go about doing it in the best possible way, call me and lets talk over your options. I look forward to hearing from you!
                                                          

Getting the 411 On Houses Before Seeing Them

So you are out looking for a home to buy and you have a lot to consider when buying a house. But you'd like to keep your search to homes that better fit your criteria rather than seeing every house out there, right? What can you do to find out more about a home before going to see it that can help you keep your search more focused and time efficient for your busy schedule? Well, there are a number of things you can do, so let me tell you about some of them. 

Are you wondering about a potential house but don't know how safe the area is? Well one way to tell is by going to this site www.CrimeMapping.com   Type in the address of the house you are looking for and see what comes up on the crime map. Now, don't jump too quick at what you see. Try entering in an area that you already feel safe in, or live in and really like, and now compare what see. And remember, you may see more crimes in busy shopping areas so keep that in mind as well.

Maybe you have kids or think that having some may be in your future and you would like to find out about where they may go to school if you bought a particular house. Well this site may help you some when it comes to the local school systems GreatSchools.org  When you enter in the address of a home, it will tell you what school is closest to that home. But be reminded that this does not guarantee that your child will be able to attend that particular school. Please also check with the school by calling them or visiting the principal to ask about future enrollment of your child.

There is actually a lot you can find out about a house by going to this site Google Maps  Either you are already using this method to find out about a home or you think I'm giving simple advice by pointing out that you can see where a home is located on a map right? Well try this..go to the site and type in the address of the home and hit the search key. Okay, so now you see the pin point of where the home is located. Now go back to the search bar and erase the address and try typing in something like "restaurants" or "parks".  You can zoom in and out and the map will show you where these types of locations are in your area.  So if you are someone who likes to be near a lot of restaurants or maybe you want to know where you can take you dog to the park, this is a great way to find out. Now you can also re-enter your potential home's address back in the search bar and search it again. But this time when it points it out on the map, look to the left of the map and see if there is a photo of the property. If there is, then there should be a little orange symbol of a person in the corner of that photo. If you click on this orange person symbol, it will show you a front view of the home. Once the picture shows up on your main screen you can use your mouse pointer to move around the angle and position of where the camera is coming from. Here are a number of things you can find out about the house just from these photos:
Do you see any new additions in the listing that weren't in the google map photos? Maybe an extra wing of the house? If so, you may want to go to your local building and safety and see if that was permitted. What about a garage? Do you see one? Sometimes we forget to look for one in the listing because it's not pointed out to us in the listing that there isn't one. Or maybe there is one, but it's only accessible by an alley and in order to get to it, you have to manually open a gate in the alley to enter into it. You can sometimes see this on google map too. So the listing says the lot is 21,000 sqft in the hills? Wow, that is a lot of land here in LA. But maybe if you have searched the house on Google Maps, you can zoom in with the Satellite View and maybe see that most of that properties land is really hillside?   Have you ever gone to a listed house and not even recognized it from the street? Maybe because there is a large wall that surrounds the house? Well, the photographer of the listing may not have wanted that part of the house featured but Google Maps will show that big wall just fine. And what about the neighbors and the street the home is on? You can preview that on Google Maps as well.  And there are other things you can see from this site as well. Like maybe this home backs up to the rear of a grocery store. Or you would like your home to have some elements of Feng Shui? Well, you can see if this home's front door faces the South from Google Maps as well.

And last but not least, just try entering the potential home's address into a search engine and see if anything of interest comes up...you never know what you could find out there as well.


So before you set aside a whole day to go look at houses, try using some online resources and seeing if you can weed out the ones that already may not fit into your criteria and when you are ready to go out and start seeing some homes, call me. I am happy to help you with all your Real Estate needs (323)828-7777

                                                                      

Does My Agent Get Kick Backs From Recommending Certain Businesses Or Vendors?

Something tells me that you have thought to yourself, "Why is my real estate agent recommending these certain professional people and what do they get out it?".  Sometimes I can tell that my clients think this even if they don't ask...but, why not ask?  I say go ahead and see what your agent says. Because here is the scoop you've all been waiting for:

There are a number of people your agent might suggest you call and see if they can help you during your home buying process. Some of these people are general inspectors, roof, chimney and sewer inspectors. You may get the contact info of a few different loan officers and also an escrow company.  So why are you getting these people's contact information? And what do I get out of giving them to you? Well.....I get peace of mind.  Not the answer you thought you'd hear, right? Well, it's true. These people are people that I have worked with before or have been referred to me by other people I trust. When it comes to getting a house sold, whether you are on the selling side or buying, it is important that you use people that are good at what they do. It's not just as simple as calling an inspector and asking for their prices. I mean, does this inspector really know what they are talking about? Are they going to explain it to you in a way that you can understand? Are they going to point out the difference between what type of work needs to be done now and what can be done in the future? If you were looking to get your car repaired, would you just look over the yellow pages and choose someone or would you go with a person that is recommended to you? Well, who could be a better person to ask than someone who works with these people on a regular basis?

And if you think getting a loan funded and closed on time is just a matter of going over your financial papers and checking your credit then sitting back and waiting to hear a "yes" or "no" about the loan, then you are really in need of some recommendations. The loan officers are much more than the fees they charge.  They really need to know there way around HUD houses, FHA loans, investor ratios in condos, and all the lovely hiccups that are almost inevitable in every loan process.

So, yes, I may ask if you want me to send you some numbers of some loan people. And yes, I will ask you if you already have some inspectors names in mind. But to answer that burning question...No, I don't get anything when you call them besides knowing who they are as professionals and understanding how they work.
                                                               

Hot Tips For BuyersTo Use In This Hot Seller's Market

I've recently been working with a lot of buyers and I've heard a number of them ask about the comps (comparable recent sales) of a house they are interested in putting an offer in on. There have been a number of times that once the buyers find out what the comps are for a house, whether it be from me telling them or the online Real Estate websites (zzznot the place to look for za compz!) that they base their offer on the average comp price. No no no no.....In case you were wondering, we are now in a seller's market and a very competitive one at that. If your goal is to get a house then you must try to be the highest and best offer. So if you are making an offer that is not close to, at, or above the highest comp out there, then truly, you are not in the market to buy a house at this time. If the house is priced well, and in a desirable area, and you make an offer at or under the listed price, you are most certainly not getting the house. I know that it is hard to come out of a market, where not too long ago, there were a lot of short sales to choose from and you could negotiate the home price with the seller, but that time is gone. And I highly urge anyone in the market to buy a home right now to go into the process with the goal of buying a home, and not trying to get "a deal".  The deals are still out there which is why the market is so hot right now. And here are the deals: the low loan rates, the houses (while going over list price a lot) may still continue to rise for years from now. Those are the deals. If you choose to look for any others, you may be out of luck and spend good time getting beat out of the market. And when putting your offer together, ask your Realtor what else you can put in your offer to make it desirable, other than the price.
There are many other things in the offer that you can include, or not include, that may get the seller's attention and get your offer chosen.  Here are a few things you should talk with your Realtor about concerning the offer:
1. Do you really need the refrigerator and washer/dryer? Maybe don't ask for those and if you really want them, maybe offer to purchase them separate from the home purchase.
2. Can you offer a shorter escrow time period? Seller's would love to see the money from the sale sooner than later.
3. Can you shorten your contingency periods and maybe do your inspections in the first few days? Or talk over the other contingencies with your Realtor and see if those may be shortened.
4. What about the costs for Retrofitting and certifications for this? Ask your real estate agent what this may cost and is this something you can pay for?
5. Home warranties are great! I recommend having one. The average home warranty may run $400-$600. Is the house you want to buy worth you paying for this yourself?
6. Ask your broker about the NHD report. This is usually at or under $100. Do you need the seller to pay for this?
7. And what about the termite and pest inspection and correction? Depending on what the inspection says, if you offer to pay for this, it could be in the thousands...but maybe this is something you are willing to do as a buyer?
8. And last but not least, and this one doesn't cost you a dime; write a letter to the seller with your intentions for the house, and be honest. Are you going to move into the home and make it your home for years to come? Are you going to care for the house and yard the way the sellers have done for so many years? While a letter like this may not mean much to some sellers, it may make a huge difference to others...and it's totally free.

Talk about all these options and more with your real estate agent and good luck with buying and selling your home. And when you are ready to list your house, I can walk you through the best way to get the best dollar for your home, so call me anytime.
                                                                      

Did You Know?... Some Little Known (or unknown) Things About LA's San Fernando Valley

I'm just going to write some bullet points here that include some fun facts about our valley...I will call this the "Did You Know?" blog

Did You Know?  Toluca Lake is really a community in North Hollywood

Did You Know?  That President Reagan married Nancy in 1952 in Studio City's Little Brown Church (it holds about 40 people)
                                                                  

Did You Know?  That the San Gabrielle Valley was once known as "Gabrielino"?

Did You Know?  That Burbank is it's own city...and Studio City is not a city?

Did You Know?  The house where "The Brady Bunch" was filmed is still looking great and located in a neighborhood in Studio City? (I don't think the people that live there would like me to advertise the address so I won't put it here...but if we are out looking at houses, ask me and we will take a drive past it)

                                                  

Did You Know?  Valley Glen is really a community in Van Nuys?

Did You Know?  Bob's Big Boy in Toluca Lake/Burbank was built in 1949 and is considered an iconic symbol of modern design for the time that it was built? You can see some amazing classic cars there every Friday from 3-10PM at the car show.
                                                                 

                                                               
Did You Know?  That Studio City was originally a part of North Hollywood? Maybe that explains why there is such a large distance between Hollywood and North Hollywood today....

Did You Know?  The valley made tract houses famous and a lot of that started in areas like Panorama City?                                                            

Did You Know?  The red clay roof tiles (called Terracotta) that are all over the roofs our Spanish-styled houses here in the valley, were believed to have been made, back in the day, with the workers placing clay over their thighs to give the tiles the arch shape.
                                                                    

Did You Know?  The El Portal Theatre was opened in 1926 and is still a working theater? Now the famous Academy of Television and Science is situated just across the street from this landmark.
                                                                   

Did You Know?  Encino is typically 10 degrees warmer than Hollywood, which is just 14 miles away?

Did You Know?  One of the world's most famous people, Michael Jackson, spent most of his childhood, along with his family, in their home...right in Encino?
                                                                    

Did You Know?  The price of single family homes in the valley can range anywhere from around $300,000 to well over $10,000,000?

Did You Know?  There is a sushi bar in North Hollywood where the waiters wildly sing and dance to today's hit music while serving you sushi? Tokyo Delve's is not the place for the early-bird-dinner-special-clients, if you get my drift.

Did you Know?  Mary Astor and Frank Sinatra were both once residents of Toluca Lake.  This famous estate, locate at 10051 Valley Spring Lane,  is still here and if the walls could speak, I bet they'd have a lot to say.
                                                           

Did you Know?  And yet another world known musican lived here too. 4326 Forman Ave in Toluca Lake is where Bing Crosby once lived.  Seems like Tolcua Lake was the happening place to live (and still is)


For more fascinating information about parts of the valley, it's history, architects, and developement, check out this webiste.  It is a goldmine of information http://preservation.lacity.org/files/SO-SC-TL-CP%20Survey%20Report%202.26.13.pdf


If you have any more little known facts about our communities here in the valley, feel free to email me and I will add them on here.

Pinterest: The Good, The Bad and The Ugly (photos of homes)

One of the things I've always enjoyed, even as a child, was going to open houses. I loved to see how other people's homes looked; how they decorated, how the kitchens were laid out, or how they missed the mark on design all together. So, I have decided to start a Pinterest page on the things I see in the homes around town. I hope some of the photos you will find inspiring for your own home. Others will just be lovely ideas or great architecture. The rest will just be for fun. So come follow me on Pinterest as I take you around Los Angeles to see some of our homes.

                       Pinterest: The Good, The Bad, and The Ugly







 

A Greener Home: Earth Day Tips On How You Can Make Your Home More Earth Friendly

I've reached out to my readers and clients on things that they do to make their homes greener and I have put those suggestions, along with other, here for you to read. Sometimes just doing the small things around your home can really go along way. Especially if a lot of people are doing them. So let's start with some of those simply tips:

*Turn off the lights in a room if you don't need them on
*Turn off your faucet when brushing your teeth
*Unplug the things that don't need to be plugged in. Even a phone charger that is plugged into the wall when your phone isn't attached to it, is wasting energy.
*Wait till you have a full load of laundry or dishes before doing a wash.

Now here are some tips my readers and clients use around their homes:

Dawn from North Carolina writes "Clean with vinegar. If you don't like the smell you can add orange peels to cover up the vinegar odor plus it adds an extra grease cutting ability."

Becky from North Hills admits "Before bed, my husband pees right after I pee, and then we only have to flush once! Haha! Saving water 1 pee at a time!"

My personal thought on Becky's suggestion is that this might not be for everyone...but if you do want to save the Earth one flush at a time, I would suggest adding this tip to making your home a greener place: Try waiting till your husband or wife is ready to take a shower and save some water by taking only one...together. 

I personally use vodka to clean and sterilize floors and counters. I use a steam mop on my floors and lightly sprinkle a cheap vodka while mopping. I also clean my counter tops with good old fashion soap and water. 

*When your dish sponge starts to get an odor, don't toss it out, just put it in the dishwasher with the dirty dishes and run a cycle. Good as new! 

*Solar panels aren't just for the fancy green home owners anymore. Did you know that you can rent them for your house now? And if you own a condo here in SoCal, you are allowed to put them on your roof there too. Now this is exciting! 

*How about a rainwater cathment systems? These are wonderful sources for watering your yard and plants. They even have an association where you can learn more about the systems at http://www.arcsa.org/ 

*Don't forget that even though you may not be using an appliance at the moment, if it is plugged in, even if it's off, it is using energy. So unplug everything that isn't necessary. 

*reuse your paper towels. When you wipe the counter, wash it in water and wipe the floors too. They can be reused time and time again. 
 
*And those reusable bags you use at the grocery store...can't we use these or other similar bags when we go to clothing stores or places like Target? Sure we can! I wouldn't use the exact same ones you use for food to put clothes in but just buy a few extra for these types of shopping trips! 

Do you have any great tips you use around your home that make you a greener person? I would love to hear and share them with others so please add your own comments on here and let's start working towards a greener, more Earth friendly, home. 

                                                                   

 

Just Sold!

A big congratulations to my clients Paul and Sana on their new beautiful home in Porter Ranch! We got them a lovely home and I can't wait to see it when they put their personal touches on it!

Casey Kasem's Home is For Sale- And Here Are The Top 40 Reasons You Should Buy It

That's right folks...Casey Kasem's home is for sale. He and his wife, Jean Kasem, have listed their sprawling Holmby Hills home (say that 3 times fast) and if you have a cool 40, well technically 42 million, you could be the next owner. And here are the top 40 reasons you should want to own it. This is quite funny!!! Check it out here Top 40 Reasons To Buy Casey Kasem's House

                                                                             

And they forgot to add the #1 best reason you should buy Casey Kasem's $42 million House....It is listed by my office and I'm sure our agents will be putting on the pressure for a lunch on the house when it is sold!

Things You Should Say And Things You Should Not Say To An Agent At An Open House

Have you ever wondered what may be good, or not good to say, to an agent at an open house? Do you think that just because they ask, that you should have to answer them? Oh no, be careful what you say. So here are some things you may hear an agent at an open house say or ask you while you are there and here is what is okay to let them know or perhaps not:

Do you have an agent?- You probably will hear this all the time. Go ahead and tell them and be honest. If you do, maybe even mention who it is since they may know each other or maybe the open house agent is expecting you since your agent said you would be stopping by. And if you don't have an agent, feel free to let them know as well. Especially if you get a good feeling from this agent. Maybe you can work together. But if you would rather not, simply tell them you don't have one and are not looking to work with one at the moment either.

Do you live in the neighborhood?- You may have just as many neighbors stopping into an open house as you have buyers. It's perfectly normal for them to want to see how someone has decorated or maybe upgraded some things. So go ahead and let the agent know you live across the street. It's always nice for us to meet the neighbors too.

What do you think about the house?- Don't be cruel if you think the house is a hot mess. After all, this is probably still someone's home and not everyone likes the same cup of tea. But you can be honest in a diplomatic way.

Is this home something that may interest you?- Sure...go ahead and tell them. And if you happened to walk into a million dollar house and your price range is more around $500k, you can tell them that too. I mean, looking at million dollar houses can just sometimes be fun and we are aware that there is no price tag out front that could have lead you to know the price before you walked in.

Will you sign in with your name and contact info?- Sure. Go ahead and leave it. Especially if you want to be contacted for things like future open houses, other houses that just came on the market or just so I can thank you for stopping by my open house and see if there were any unanswered questions you may have. 

What is your price range?- Now here's the one you may want to not answer. Don't forget, we are in the sales business and unless you hire us to help you purchase this home, our job is to work for the seller and get the highest price we can for them. So if this house is listed at $850K and you tell me your price goes up to $900k, I may go into the deal with a peak at the cards you are holding and that won't be the best move for you. So, if you are interested in this home, keep the numbers to yourself so that you don't reveal too much to the wrong person.



                                                                             

Should I Remove The Contengencies In My Offer?

It is almost April of 2013 and the housing market out here in Los Angeles has become very competitive. There is a larger difference between the number of houses on the market and the number of buyer out there. Some of the areas I specialize in are getting large numbers of multiply offers on homes that are marketed well and buyers are needing to step it up if they really want a particular house. So what are some of the things that I'm seeing buyers are doing in hopes to get their offer accepted? Well, there is the almighty all-cash-king. This one seems to help the sellers accept an offer pretty frequently. But there aren't a lot of buyers out there that can buy a house with all cash, so what are the rest doing to gain a seller's interest? Well, quite frankly, some buyers are removing some or all of their contingencies on an offer to keep themselves in the running for owning a home. So what does removing contingencies really mean and is it something I should do in order to get a house? Well folks, this is a very slippery slope I'm about to discuss here.

First off, there are three major contingencies in a Purchase agreement, or an offer. There is the loan contingency, an appraisal contingency, and an inspection contingency. According to Merriam Webster's dictionary, the definition of contingent is-dependent on or conditioned by something else. 
These contingencies are put into the contract to protect the buyer from unknown obstacles that can occur during the purchase. Buyers are not 100% guaranteed that they will be able to get the loan they were pre approved for on any house. There are a lot of factors that determine whether or not a lender will actually give a loan. Therefore, there is a contingency for obtaining the loan. Same goes with an appraisal which is directly tied in to getting the loan. A lender needs to know that the value of the house is there before they give that amount of money out for a loan on a home. So, same thing again as before...that is why there is an appraisal contingency. And so on with the inspection contingency as well.

So, let me say it again...the contingencies are there to protect a buyer.  Just as a deposit is there to protect a seller. And guess what is at risk if you remove contingencies?...you guessed it. Your deposit.  But let's say that you've heard that if you remove a contingency that there are still time periods and other things in the contract that are there to protect you as a buyer. Well, yes and no. These decisions of removing contingencies should only be considered on a case by case, person by person situation. I would not feel comfortable as a Realtor just suggesting to anyone of my clients that they do this without fully explaining what it means and what the consequences could be.  And I surely would not throw this out blanketly as a strategic maneuver to get an offer accepted. Try to imagine like this: When purchasing a home you place your deposit in a box behind three brick walls. And lets say those walls represent those three contingencies.  If you start off your offer with one or more of those walls missing, that is the level of protection your deposit has left.  Now this way of going about writing an offer can work out very well for the right person, but please have this talk with your Realtor and get all the facts you can before moving forward with these options. And, just so you know, there are other ways of getting your offer accepted in this competitive market. After all, in the past month, I have had two offers accepted in a multiply bid situation and neither of them removed any contingencies and neither of them were the highest offer. I'm not going to give away my secrets here but if you are out looking to purchase a home right now, maybe you should give me a call!

                                                                             

Buying and Selling a Condo and The Hidden Challenges

No matter what you are thinking of buying or selling, there can be challenges. But condos hold different challenges than single family residents do. If you are looking to sell your condo, there are some key questions your Realtor should be asking you that are huge factors regarding a buyer being able to qualify for a loan to buy the condo. Here are a few things we need to know:
1. How many of the units are rented and not owner occupied?
2. How many owners are delinquent on their home owner's dues?
3. And if an investor owns more than one unit in this complex, how many do they own?

These things can create some challenges when it comes to selling your condo. And anyone looking to buy a condo needs to be working with a lender that is aware of these issues from the start so that you don't get yourself half way through the transaction just to find out that you can't get the loan. There are more things regarding the units we are going to be asking about but the ones listed above seem to be the ones that are most easily overlooked that can create problems. Please feel free to call me and ask about how to sell your condo and how to overcome some of these issues.

Here is a great site with some information on this subject that you may find very helpful http://www.realtor.org/topics/condominium-approvals