In today’s real estate market, homes that are competitively priced, tastefully staged, and in “move-in” condition –  WILL sell quickly and for top dollar!  When you find a home that meets your specific search criteria and you immediately find yourselves “in love” with the home — it is time to take immediate action — hesitation may be your ultimate downfall.

AKA Mrs Buyer

I received a call yesterday from a very sweet woman (aka Mrs.  Buyer) who advised me that she and her husband absolutely loved one of my listings in Glendora, California.  She continued by sharing that once they walked into the Open House, I hosted a little over a  week ago, that they knew it was the perfect home for them!

Mrs. Buyer went on further to say that it was the 3 car garage, office and wine bar which basically “sealed the deal” from her husband’s point of view, and they wanted to purchase the home . [ I vividly remembered them from the Open House and it was obvious to me that that they loved the home.  Upon their departure, I was fairly certain they would be submitting an offer.  What I didn't know is that they would wait over a week to take action].

Bomb Shell

Now comes the part of my job that I really, really passionately despise…I had to drop the bomb that would shatter Mrs. Buyer’s excitement and enthusiasm.  I advised her that the property was already in escrow and that we had received 4 offers within 2 days of the Open House (which was the first time the home was available for viewing).

I truly felt badly for Mrs. Buyer as she was obviously counting on the fact that they would be able to purchase the home.  My news came as a shock and she was trulydisappointed.  She and her husband had just assumed that, because of the market condition and decline in home sales, that there was no urgency in getting a purchase offer submitted.    

Giving bad news to anyone is never enjoyable.  In this case, however, it was even more difficult because Mr. and Mrs. Buyer were the epidemy of the parent and/or  grandparent one would aspire to have in their life. 

Procrastination Is A No No

Unfortunately, this scenario is far from unique.  When homebuyers are not educated as to the real value of homes in a specific neighborhood, and on the available inventory of homes, they can’t tell when a property is a diamond or crystal. Many buyers seem to believe that all homes are priced high, and that if they simply wait on the sidelines  -  after a month or two the Seller will lower the price.   Obviously this mentality does not always pay off! 

My advise to all home buyers is don’t let your procrastination cost you the home of your dreams. Do your homework, get educated on the value of homes in the neighborhoods of your choice, and retain the services of a professional real estate agent. 

Take Action Today!

 When the “perfect” home pops up — immediate and decisive action is required — submit an agressive purchase offer! 

If you have any questions,  comments, or if you are ready to purchase a home, please feel free to  Contact me !

Normally, as the old saying goes ,“Money talks and @&%# walks”, holds true …

Except when some potential Glendora home buyers are trying to obtain a mortgage loan to purchase their dream home.

Can’t Judge A Book By Its Cover

Recently, I have been encountering more and more potential home buyers who for all intents and purposes appear to be the “perfect” candidate for a mortgage loan.  Some of their characteristics are:

• high credit scores
• strong employment history
• low debit to income ratio
• significant sums of cash in their banking account statements

The problem arises when the mortgage loan lender begins sifting through the financial documents submitted by the perspective buyer, and they find large deposits of cash in the bank statements that do not match up with deposits of pay stubs.

The lender will then request written documentation verifying exactly where these funds came from.  Without a verifiable “paper “trail, the lenders will not be able to include these funds when computing the eligibility of the buyer for the loan.

I was just involved in a real estate transaction as the buyer’s agent and found out, after entering escrow on the home of their dreams — that they simply didn’t qualify for a mortgage loan.  In their particular situation, the husband owned a body shop and was paid cash for a lot of the repair work.  In addition, they would fix vehicles up and resale them for a profit, which again was in cash.

Not trusting the stock market or the financial institutions, they simply kept their cash deposits in a safety deposit box.  Little did they know that this strategy would result in them being denied a loan, as they could not prove that the cash had been in the safety deposit box or, when and where it originally came from.

Why The Banks Would Not Just Accept The Cash

If you are wondering why the banks would not just accept the cash as belonging to buyers and taking it into consideration when conducting the pre-approval process, the answer is simple…the banks are required to verify where the funds were derived from to curtail illegal money laundering.

This was a very painful lesson for them to have to learn and I am hoping that by sharing this scenario it may prevent other buyers from finding themselves entangled in the same mess.

In Conclusion

If you have any questions about obtaining a home loan and you fit in the category of buyer above, let me know.  Feel free to share you questions/comments with the community by leaving a comment below.  Or feel free to contact me directly.

• Seller
• Buyer and/or Investor
• Just making conversation.

In an effort to keep this post relatively simple, I have decided to direct my focus this post on Sellers.  I have also elected to use Glendora’s real estate market, from August 2009 – August 2010, as my case study.

Considering the fact that I do not own a crystal ball, I cannot accurately predict what the future has in store for us.  I can, however, share with you where the real estate market is today versus months past.

Is it a good time to list a home for sale?

The answer really depends on the Seller’s specific needs.  If the Seller has a NEED, and/or strong desire, to sell their home within the next 5 years, then my answer to them would be “YES”.

We know where the market values and interest rates are today, whereas we have no real clue as to where the market will be in 6 months, next year or in the years to come.  Today, if a property is priced competitively and marketed properly, the home will sell for top dollar.

The problem we struggle with day in and day out is the Seller’s mindset.  Too many Sellers are listing their home at a price which is higher than it’s true market value “today”.

Many of todays Sellers today purchased their homes at the “peak” of the real estate market, and don’t truly understand that the value of their home has depreciated. Just thinking that your home is worth much more than the other silmilar homes which have sold in the neighborhood– doesn’t make it so.

If a home is listed above it’s actual market value, will inevitably result in the home just sitting on the market without any offers. Whereas, if the home is priced slightly below market value it will not only result in offers being received, there is a STRONG possibility that the home will sell above the listed price.

Internet access creates savvy Buyers

Today’s buyers, thanks to the internet, are much more educated on the real estate market.  Statistics show us that 90+ of all buyers scour the internet real estate sites, for months before even beginning their phsyically viewing properties of interest. These savvy buyers have done their homework, and will avoid homes that are simply priced too high.

How does the market compare with last year?

As you will see by this graph, in August 2010 there were 34% or 43 more homes on the market than in August 2009.  Why are these numbers important to the Seller? The old saying “competition drives prices down” also applies to the real estate. Higher inventory levels give Buyers more properties to choose from…which results in lower property values.

Another illustration of competition driving prices down is illustrated by this graph. Data reflects that the average per square footage price of homes sold in December was $285  (with 96 homes for sale)versus $246.00 in August 2010 (with 169 homes for sale).

What we don’t see on these graphs is the actual number of bank owned and short sale properties (which was significant), that were sold throughout the year which directly accounted for lowering the sold per square foot value.

Sellers should take note that our supply of inventory, should begin to decline as we enter into the holiday season.   Historical data reflects that this decline is due to many Sellers, whose homes have been sitting idle on the market for months and months, tend to take their property off the market during the holidays.

Why would they do this?  Another great question!  Apparently, they don’t want to be bothered over the holidays, and believe that that relisting it after the first of the year — will magically bring forth the perfect buyer.

Do Buyers disappear over the holidays?

No, the buyers do not evaporate during the holidays. The simple truth is…that the buyers who are seriously looking to purchase a home will continue their search throughout the holiday season.

Savvy Sellers will take advantage of this past trend by placing their home on the market over to the holidays, to help increase their ability to get top dollar from the sale of their home.  Remember, that lower inventory levels will result in more money in your pocket! 

My recommendation to Sellers, who are seriously thinking of selling their home within the next year, is to take advantage of this trend and list your home before the holiday season begins. 

Bottomline, we know where the Glendora real estate market is today –tomorrow is merely speculation.

The proud owner of a condominium and/or townhome and have decided that it is time to sell your proud possession of joy.  You entrust the listing with an agent that you hold in high regard and expect that it will sell expeditiously and at top dollar.

What many of you don’t expect is that you will be inconvenienced by viewing appointments with buyers, who are pre-approved for a mortgage loan, and yet do not have the ability to purchase your home.

Why would a pre-approved buyer not able to purchase the unit – the answer may be as simple as your condominium complex is not FHA approved.  If you are curious as to how this can be avoided…the answer is relatively simple…

…the listing agent needs to clearly state on the MLS listing that the complex is or is NOT FHA approved.

Know The Facts…FHA or No FHA

I can’t tell you how many times I have called the listing agent of a unit that one of my buyers is interested in and have been told either that they don’t know if the complex is FHA approved or, that it is not FHA approved.  It amazes me that the listing agents can’t take the time to do the necessary homework to find out this very important information and to share the information with all of the potential buyers by simply adding the information to the MLS listing information.

For those agents that don’t know how to find out whether a particular condominium complex is or is not FHA approved they can click on this link HUD’s Government Website and enter the condominiums name and address and if it appears on the search results it is FHA approved.  It doesn’t take a genius to figure this out and it sure would be useful to the Seller, the listing agent, the potential buyers and last but not least the buyer’s agent.

Finding FHA Approved Condominiums in San Gabriel Foothills

In today’s marketplace, it is becoming increasingly difficult to find condominium complexes located in the San Gabriel Valley Foothill communities that are actually FHA approved.  I routinely receive calls from buyers, whose hopesare high, and request a viewing of a listing that just popped up matching their search criteria.

My frustration begins the moment I pull up the listing, and find no mention as to whether or not the condominium complex is actually FHA approved.   I then have to call the listing agent, and the vast majority of time it takes several calls to finally reach the agent, only to be told it is not FHA approved. Then I have to make the call, that dashes my buyer’s hopes when I tell them it’s not FHA approved.  These calls are definitely not the highlight of my day.

Calling All Condominium Listing Agents

I implore all condominium listing agents — take the time to do your due diligence and provide all of the buyer’s agents with the necessary information to help you get your listing under contract.  Just think of the time you will ultimately save yourself, by not being inundated with our telephone inquiries regarding whether or not it is FHA approved.

Sellers, you too could help remedy this situation by providing your listing agent with the pertinent information, and making sure that it is clearly stated on the MLS listing. I, for one, would be forever in you debt.

One last thought I would like to convey, to all of you agents that don’t even bother responding to our inquiries — you should be ashamed of yourselves!

If your client only knew…

Leave a comment below if you have questions of whether or not your condominium is FHA approved or not.

How To Ruin A Good MLS Picture

I guess the answer depends upon who you ask.  In my personal opinion the answer is emphatically “YES”!

As a Realtor specializing in residential real estate throughout the San Gabriel Foothills Communities, I am continually amazed each time I pull up a property that has been posted in the Multiple Listings Systems of a home that boasts numerous photographs to enhance the buyer’s interest.  As I am viewing all of the photos and impressed with the home’s design and upgrades, I come across a photo of the beautifully remodeled bathroom that is every woman’s dream, to include a fireplace next to the huge sunken Jacuzzi tub…then as I move my eyes a little to the left I find myself starring down a toilet bowl.

My love affair with this particular bathroom has now ended abruptly.

Please Close The Lid!

I would also like to submit a plea to all of the homeowners who currently have their properties listed for sale.  Please shut the toilet seat lids whenever there are scheduled viewing appointments of your home.

The buyer’s first impressions are lasting and there aren’t too many more disgusting things then the inside of a dirty or unflushed toilet bowl.  Not only will this help portray you home to it’s fullest potential…it will also save me the time spent walking through the bathrooms closing your toilet seat lids.

Okay, so maybe I am a little fanatical about this except I do not find the interior of the toilet bowl to be appealing in any way, shape or form.  There are only a few occasions that I would find myself in need of looking inside the toilet bowl, and they are:

1. when cleaning the toilet bowl
2. to retrieve something that fell into the toilet by accident
3. when I find myself hugging the toilet bowl, and this is something I NEVER look forward to doing

Face it, toilet bowls were designed with lids for a reason and it’s not because of the sleek design of the seat cover – it’s because toilet bowls are toilet bowls and deal with waste day in and day out.

Feng Shui Demands It

In my defense,  it appears that I am not the only one out there that feels strongly about toilet seat lids being left open — Feng Shui advises keeping toilet seat lids down in order to help prevent the leakage of energy that escapes when the lid is open.

The simple truth is Mr and Mrs Seller, in today’s real estate marketplace you need all of the “good energy” you can possibly capture to get your lovely homes sold!