Jean Joh’s Real Estate Blog

5 Tips To Improve Your Odds in a Multiple Offer Situation

jeanjoh — Wed, 24 Jun 2009 15:25:00 +0000

“Multiple offers? I thought we were in a Buyer’s Market?” Well, it certainly IS a great time to buy in that we are seeing interest rates that are still at historical lows coupled with housing prices that are more affordable. But on the other hand, here in the San Francisco & Peninsula area, we are seeing an increasing number of multiple offer situations. For example, on the last home my clients submitted an offer for, there were 26 (yes TWENTY-SIX!) offers, all of which were put in within the home’s first two weeks on the market! Whatever the reasons for this, it’s become clear that if a home is well priced or below market value, there’s a good possibility that prospective home buyers will find themselves in a multiple offer situation. Here are five tips to help make your offer stronger:

1) PRICE – no matter how the market changes, this will always be one of the most important issues to a seller, whether you’re dealing with a bank or a “real” seller. Be sure to look at market activity in the area and then decide how much you are willing to pay for the home. Just ask yourself: “How would I feel if someone else bid a little more than me and got the home instead?” Of course, don’t offer more than you feel comfortable with, but keep in mind that you might only have one chance. Now is not the time to lowball.

2) KEEP IT CLEAN – what I mean by this is, try to keep your offer as simple as possible without asking the seller to do a bunch of work on the home. Home sellers are trying to sell the home with the least amount of inconvenience, especially if you’re talking about a bank-owned property. Of course, if it looks like you’re going to need to do some work and you need a little more cash upfront, you can negotiate for up to 3% of the purchase price in some closing costs, but be aware that this will mean that much less profit for the seller (hence, you’ve just reduced your edge in terms of price – see tip #1).

3) TIMING IS OF THE ESSENCE – as mentioned above, homes that are well priced or below market will often sell rather quickly. If you are serious about buying a home, make sure to get pre-approved and have your loan agent and real estate agent get in touch with each other, so that you’ll be in a position to submit an offer as soon as you find the perfect home. I don’t believe in rushing my clients, but on the other hand, I’ve seen far too many miss out on a purchase because they took too much time “thinking about it.”

4) PRESENTATION MATTERS – although the price, terms & timing are essential in presenting a good offer, it’s also important to make a good impression on the seller and listing agent. All other things equal, it will help sway things in your favor if the offer is presented in a complete and professional manner. Be sure that your offer includes a cover letter, a pre-approval letter, and a copy of your deposit (earnest money) check. If the seller provides disclosures, sign them. If you’re purchasing a bank-owned house and the bank requires you to get pre-qualified through one of its agents, do it. If you’re dealing with a home owner, you might even consider writing a nice letter introducing yourself and telling them how lovely their house is…couldn’t hurt, could it?

5) REPRESENTATION MATTERS – find an agent who can assist you with all of the above. A professional and qualified agent will help guide you through the home buying process and make sure that you have all the resources you need in order to make an informed decision. He or she will be in contact with the listing agent and help present your offer in the best light possible.

This blog is already longer than intended and I’m sure there might be other issues I haven’t covered here, so I’d love to hear thoughts from other agents and home sellers on this subject. While it’s not easy being in a multiple offer situation, the increased activity among home buyers is definitely a good sign for the real estate market and the economy as a whole.

Mortgage Protection Program for First-Time Homebuyers!!

jeanjoh — Thu, 02 Apr 2009 18:22:43 +0000

Great news for California home buyers! As if the $8000 tax credit, historically low interest rates, and affordable home prices were not enough, the California Association of Realtors Housing Affordability Fund (C.A.R.H.A.F.) is making the pot even sweeter by offering a mortgage protection program for first-time home buyers. Wow!

Back in January, I posted a blog on my personal blogsite (http://budurl.com/5vpd) about the Hyundai Assurance Program (if you lose your job or have another hardship within 12 months, you can give your new car back) and commented that it would be an interesting idea if we could have the same sort of thing for buying homes. The basic idea – buy a new home, and if you lose your job, you can give the home back without penalty. Well, it seems that someone out there was reading my blog…okay, maybe not, but this new program is not too far from the same line of thinking. So what does it entail exactly?

This is the information, according to C.A.R.’s latest newsletter:

Through the Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program this year, and estimates that up to 3,000 families will benefit from the program throughout 2009.

If you want to qualify for this program, you must:

Be a first-time home buyer – someone who has not owned a home in the last three years
Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
Use a California REALTOR® (me!) in the transaction
Purchase the property in California
Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR® (that’s me again!). For applications and other information on this exciting new program, go to http://budurl.com/g8p5.

Real Estate May Be Rebounding in SF!

jeanjoh — Sun, 15 Mar 2009 00:58:04 +0000

Just wanted to share a link to a video article from CBS5 posted on March 11th. This talks about the possibility that we may be looking to a rebound in the real estate market within San Francisco. This doesn’t surprise me, considering that every time I go to show homes or visit an open house in the city, there are many people walking through. I’ve even had instances previewing a home and being stopped by potential buyers with a request to show it to them. Anyway, it’s great news that we need to get out there to offset all the negative news that’s out there.

Here’s the link: http://cbs5.com/video/?id=47401@kpix.dayport.com

A REAL Home Buyer Tax Credit!

jeanjoh — Fri, 20 Feb 2009 22:15:02 +0000

A homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed into law Feb. 17, 2009. This is different from the previous tax credit, primarily because it does not require repayment unless someone sells their home within 3 years. Although I doubt that this would be the sole reason for someone to go out and purchase a home, it’s still a great incentive for those who are still somewhat “on the fence.” This tax credit can be applied to 2008 or 2009 taxes, and the purchase must be completed before December 1, 2009. In addition, the maximum is $8000 (if your income qualifies) or up to 10% of the purchase price, which means that you can get the full $8000 credit as long as your home costs $80,000 or more. For those of us here in the SF Bay Area, that’s not a problem at all! So, if you needed another reason to buy, besides the fact that home prices and interest rates are low, here it is!

Be sure to talk to a tax professional to make sure that this tax credit would be a good option for you. For a chart detailing the main features of this credit, go to: http://tinyurl.com/aw4fye.

Pregnant & Buying a Home?

jeanjoh — Tue, 17 Feb 2009 04:18:08 +0000

I learned something new today that I thought I would pass on to others. If one of the buyers is on maternity leave, there are some lenders who will not count that person’s income when it comes to qualifying for a loan. The apparent rationale is that there is a probability that after having a baby, the mother might end up not returning to work and hence, will not have that income any more to help pay for the mortgage. Just something to keep in mind if you (or a client) are getting ready to have a baby and buy a home around the same time. Not sure if this applies to all areas and lenders, so be sure to check with your loan agent or mortgage broker.

The Real Estate Market is…BUSY!!

jeanjoh — Wed, 28 Jan 2009 18:22:07 +0000

As soon as anyone knows I’m in real estate, one of the first questions they ask is, “So, how’s the market?” People are surprised when I tell them it’s actually been pretty busy. In particular, home buyers are seeing the opportunities that are available to them. Mortgage rates are at historical lows and home prices have become much more affordable, which is especially good news here in the San Francisco Peninsula area. FHA & VA loans are making a comeback, as they provide ways for people to purchase a home with low or no down payment. The federal government is providing a $7500 tax credit/loan for first-time home buyers. If now is not a good time to buy, I don’t know what is. One sure sign of this – the sales board in our real estate office (the list of sales that have entered escrow) is almost full for the month of January already! If you’ve been thinking about buying a home, don’t wait until it’s too late! If you’re thinking to sell yoru home, just make sure to price it right – the buyers ARE out there!

San Mateo HS Presents Peter Pan

jeanjoh — Wed, 21 Jan 2009 19:09:25 +0000

San Mateo High School will be performing the classic musical, Peter Pan, from January 30 – February 8, 2009. Friday & Saturday performances are at 8pm; Sunday matinees are at 2 p.m.

It’s the unforgettable story of the boy who wouldn’t grow up–full of flying, singing, dancing, and adventure, with Peter, Wendy, Michael, John, Tiger Lily, the Lost Boys, and, of course, Captain Hook. The score contains many memorable classics, including I Gotta Crow, Neverland, and I’m Flying.

Tickets are $10 for children, students, and seniors, and $15 for adults. You can purchase tickets at www.smhsdrama.org/buy.htm, or at (650) 558-2375. More information is available at www.smhsdrama.org. Performances are at the San Mateo Performing Arts Center at 600 N. Delaware, in San Mateo.

We hope you’ll come to a performance–and help spread the word to others in our community.

A Historic Occasion

jeanjoh — Tue, 20 Jan 2009 19:22:18 +0000

Some people in our office got together this morning to watch the Inauguration of Barack Obama. The brokers even postponed our scheduled 9am meeting, so that no one would miss this historic occasion. I won’t write much here but just wanted to express my own sense of great pride and gratitude for our country. Whatever the flaws and difficulties, the fact that in a period of about 60 years, this country has progressed to the point of being able to elect our first African American president is incredible. Especially with all of the uncertainty and anxiety about the economy and the troubles throughout the world, it’s wonderful to have a moment to pause, give thanks and renew our hope.

Is Your Agent a Twit?

jeanjoh — Fri, 16 Jan 2009 22:48:29 +0000

Recently, many people in our office have been learning more and more about social networking sites, such as twitter, Facebook, LinkedIn, FriendFeed…you get the idea. One of the questions I hear often is, “How is twitter going to help me get more business? What good does it do to let people know what I had for breakfast?” The basic answer for this is that this is just another way to make more contacts, put ourselves in front of more people, and hopefully become known as the “real estate experts” in our area. But another question comes to mind: “How do my clients benefit from the fact that I’m on twitter and other such sites?” Here are some reasons why it might be beneficial to you to have an agent actively engaged in social networking on-line:

1) You can get to know more about an agent before you decide whether or not to work with him or her. When buying or selling your home, it only makes sense that you should feel comfortable with the person who will be helping you with one of the most important steps in your life, especially as they will probably need to know more about your finances and living situation than some of your own family members.

2) If you’re buying a home, your agent will be able to more easily access information about homes and neighborhoods, and pass them on to you. In fact, he or she will probably have websites and blogs that provide that information on an up-to-date basis. You can also be assured of having quick and easy access to your agent, when questions come up along the way.

3) If you’re selling a home, your agent can expose your property to a wider network of potential buyers, even from other countries! Surveys indicate that about 80% of home buyers begin their search on the internet. Don’t you want an agent who knows how to reach those buyers beyond just putting your listing in the MLS?

4) You can know that your agent is on top of the latest technologies and is working hard to develop themselves. Every seminar and class that I attend is motivated by the goal of providing better service to my clients. Don’t you deserve to have an agent that feels the same way?

5) A real estate agent who is well connected (online & otherwise) is probably in a better position to handle transactions and work with other agents on your behalf. If you’re relocating to another area, they are also more likely to be able to help you find a great agent in that area.

And finally, don’t you want to know what I had for dinner yesterday? (j/k) I’m sure there are more reasons and examples that others can give, and I’d love to hear them. One disclaimer: I’m not saying that an agent who doesn’t do these things is not a good agent – I know many great agents who don’t even know what twitter is. But if you’re reading this blog, then you obviously have a computer and are somewhat comfortable with the whole realm of blogs and social networking. If you’re thinking about buying or selling a home, why not use your computer to help you find an agent who will use the “latest and greatest” to help you achieve your real estate goals?

Oh, and if you’re not already, you’re welcome to follow me on twitter at http://twitter.com/jeanjoh. Hope to meet you there. Tweet!

Millbrae Teen Center Fundraiser at Thai Stick

jeanjoh — Fri, 16 Jan 2009 21:28:15 +0000

The Thai Stick and the Millbrae Recreation Department have teamed up for a fundraiser to benefit the Millbrae Teen Center. The Thai Stick has generously offered to donate 100% of all proceeds to the Teen Center. On Tuesday, January 20th from 5-10pm, grab your family, friends, and neighbors and gather for a great dinner to benefit the youth of Millbrae!

http://www.ci.millbrae.ca.us/index.aspx?recordid=71&page=24