East Bay Real Estate Journal Podcast

Should Real Estate Be Part of Your Retirement Plan?

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 21 Jun 2017 09:18:00 -0700

Should you invest in real estate as part of your retirement plan? It’s a good idea, but you need to make sure it’s right for you.

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Should real estate be part of your retirement plan?

Actually, including real estate in your retirement plan is a great way to diversify your portfolio. Most financial planners agree that diversification reduces the risk in your retirement plan.

However, investing in real estate may not be right for everyone. It does require you to set a lot of money aside in case something happens in the property. For example, the air conditioning may go out, you could lose a tenant, or you may need to take care of deferred maintenance items. When you invest in real estate, you need to have an emergency fund to take care of those things.

Real estate is a big commitment. Unlike other kinds of investments, real estate is not necessarily liquid. It can be difficult or expensive to get rid of your real estate investment.

Investing in real estate is a big commitment.

So, before you take the plunge, make sure you do your research. First, find out how much money you need to put down. Also, decide who will manage the property. If it’s a local property, you may be able to manage it on your own. If the property is in another city or state, then you need to find someone you trust to manage the property for you.

If you have any other questions about investing in real estate, just give us a call or send us an email. We would be happy to help you!

Why You Should Run Comparables Before Submitting an Offer

Scott@Thescottfullerteam.com (Scott Fuller) — Tue, 6 Jun 2017 11:27:00 -0700

When you’re looking at buying a home, it’s very important to have your agent run comparables on the home before you decide on making an offer.

Selling in the East Bay area? Get a free home value report

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What we’re seeing more and more in this area is listing agents are purposely pricing the home low to get multiple offers. In many situations, we are seeing a $1 million home being priced at $600,000. It creates a craze among buyers who are looking at this $1 million home and thinking they can get it for $600,000.

The idea behind this strategy is that the listing agent and the seller want to create a multiple offer situation in which the potential buyers are trying to outbid each other and end up going over the actual price of the home.

Running comps before submitting an offer will help you anticipate what other offers will be.

Comparables, or "comps," are properties that have sold that are like-kind in your area in the last 60 to 90 days. If you’re buying a home in the area and you want to make sure you’re putting in your highest and best offer, make sure you have your agent run the comps on that home to know what it will actually sell for.

Doing this also helps you anticipate what kind of offers you may be competing against for the home and helps establish a reasonable market value for the property.

To set yourself up to get the best outcome as a buyer or a seller, make sure you’re doing your homework and having your agent working for you to find these things out ahead of time.

If you’re looking to buy or sell a home or you have any other real estate questions, please don’t hesitate to give me a call. I’d be happy to help.

How to Handle Multiple Offers on Your Home

Scott@Thescottfullerteam.com (Scott Fuller) — Thu, 25 May 2017 12:35:00 -0700

To maximize the return on your investment, here are five things you need to consider when reviewing your offers.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

You have your home on the market, you have a due date for offers, and you’re starting to receive them. What do you do when you find yourself in a multiple offer situation?

First, have your agent confirm with the other agents that their clients have submitted their highest and best offer, and make sure that all the documents are completed with all the information you need to make the best decision. Remember that the highest price isn’t always going to be the best offer.

Remember that the highest price isn’t always going to be the best offer.

To maximize the return on your investment, here are five things you need to consider when reviewing your offers:

1. Timeline. What is their time frame to close escrow? Is it too soon for you or will the timing take too long?

2. Contingencies. There will be inspection, appraisal, and loan contingencies written into most offers you receive. Review these carefully; they should be reasonable for the buyer but you want to make sure that they will be able to follow through with what they’ve promised in the offer.

3. Type of financing. Cash isn’t always going to be the best option, so be sure to carefully consider the other financing options that buyers include in their offers.

4. The down payment. How much is their deposit and down payment?

5. Rent-back agreement. A rent-back agreement may be necessary if you need time to find another house after you make the sale.

As your agent, I take the time to interview each buyer and buyer’s agent to ensure that the offers they present are solid. I want to know what their motivations are in purchasing the home, both emotionally and financially. This will help you make a better decision in a multiple offer situation.

If you have any other questions regarding this or any other topic, please reach out to me. I would be happy to help.

Busting One of Real Estate's Biggest Myths

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 3 May 2017 11:49:00 -0700

Many people incorrectly think that price per square foot will be the same for all homes in an area, but it's just not that simple.

Selling in the East Bay area? Get a free home value report

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There's a major misconception out there in real estate that price per square foot will be the same in all homes in a neighborhood.

You have to consider adjustments in each unique home for the features, benefits, amenities, lot size, and other things. You can see a comparison of this in the video above. The three homes in the example range from 1,407 to 1,954 square feet but the price per square foot goes up as the total square footage goes down.

Many factors go into price per square foot other than the area.

This pretty much holds true in most markets.

If you're building a home and you have a square or rectangular foundation, the price to continue to make it larger actually decreases. Price per square foot simply isn't always the same across the board.

When you sell your house and you're assigning a price, you need to consider all the features and adjustments. If you'd like to know what your home is worth, we're always happy to come out and give you an assessment and full market evaluation to let you know what your home's price per square foot is. This will help you make sure you don't make any mistakes when you price your home.

If you have any questions or you're thinking about buying or selling a home here in the East Bay, give me a call or send me an email. I'm here to help.

How Do Home Prices Differ Along the BART Lines?

Scott@Thescottfullerteam.com (Scott Fuller) — Thu, 20 Apr 2017 13:58:00 -0700

The Bay Area is a great place to live. However, it can get pretty expensive depending on where you choose to buy a home.

Selling in the East Bay area? Get a free home value report

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Welcome back to another edition of the East Bay Market Minute, the fastest 60 seconds in real estate. We’ve got an interesting topic for you today. We’re going to take a look at the cost of homes in terms of average price per square foot along the BART lines.

If you’re not from the Bay Area, BART stands for Bay Area Regional Transit and the BART lines are basically the mass transit system around here.

The graphic in the video above shows you where the BART lines go and what the average price per square foot is in each of those areas. The lines go up into the Richmond area in the northwest and North Concord in the east, and as far down as Millbrae in the southwest and Fremont in the southeast. As you can see, the price per square foot varies quite a bit. As you get into the city of San Francisco, the price goes up over $1,000 per square foot! At the same time, homes in Oakland are much more affordable at an average of $300 square feet.

It makes sense that a lot of people are moving out to the East Bay.

It’s not surprising that we’re starting to see people living in San Francisco move out to the East Bay. Obviously, the price per square foot is advantageous out here, but when you combine that with good schools and good communities, a lot of people from the city are moving here and increasing demand.

If you want a copy of the graphic in the video above for yourself, let me know and I’d be happy to send it over. If you have any other questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

The Important Differences Between Price and Value

Scott@Thescottfullerteam.com (Scott Fuller) — Thu, 6 Apr 2017 09:44:00 -0700

When you sell your home, you need to understand the difference between its value and its price. Here's how.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

When you sell your house here in the East Bay market, it's important to understand the difference between value and price.

Value is merely a function of supply and demand, while pricing is a function of how to market a property based on the value. Take a car for example; buyers go to Kelly Blue Book to get the value. They aggregate different sales of comparable cars and consider all the features, age, mileage, and benefits to give you a value range of what the car might be worth.

Translating it to real estate is the exact same concept.

A home's value is determined by recent comparable sales.

To get the value of a property, we consider how it compares to other properties that have recently sold, the current supply and demand, and other similar items. The value is based off other comparable properties that have sold, just like cars.

From there, you'll use this knowledge as a marketing strategy to determine what you'll actually list the home for. To determine the value range you should list it, you want to determine what's going on in the current market. How much demand is there and how much inventory is there? This will help you determine whether you should market the home on the lower end of the value range or the higher end.

If you're thinking of selling your home this year and you'd like to discuss the value of your home and the best way to market it from a pricing standpoint, give me a call or send me an email. I'd be glad to help you.

How Will Changes in New Construction Affect Buyers and Sellers?

Scott@Thescottfullerteam.com (Scott Fuller) — Fri, 17 Mar 2017 13:27:00 -0700

Changes in new construction could have a pretty significant impact on the real estate market. I’ll go over what to expect today.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

How are changes in new home construction going to affect the market?

If you look at the chart above, you’ll see what builders are expecting in 2017 compared to what they actually faced in 2016. This year one of their biggest concerns is building material prices.

If you’re looking to buy new construction, be prepared for an uptick in prices.

The reason for this is that the United States has a softwood lumber agreement with Canada and they are at a stalemate in negotiations pertaining to unfair import practices for lumber. Until that gets resolved, we are likely to see much higher prices for lumber and other building materials. In fact, from February 3rd to February 10th, the framing lumber composite price rose from $366 to $391, which is the largest weekly price jump since August of 2003.

When the builders have to take on these costs, they have to pass it on to the consumer. So, if you are looking to purchase a new construction home, you’ll want to keep in mind that prices of new construction homes will likely be going up. If you’re a seller, the uptick in new construction prices could bode well for you too, as that might increase the value and demand for your home.

If you have any questions, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you!

3 Steps to a Quick, Lucrative Home Sale

Scott@Thescottfullerteam.com (Scott Fuller) — Fri, 17 Feb 2017 12:47:00 -0800

Doing these three things will get your home sold quicker and for the best price.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

If you’re looking to sell your home in 2017, there are three things you can do to sell for the most money in the shortest amount of time.

First, price it right from the beginning. Home values are in a certain range and if you go just a little bit below the median of that range, it will be the price that brings the most interest in the shortest amount of time.

Doing these three things will get your home sold quicker and for the best price.

If you price your home at the top of the value range, other homes might sell before yours if they offer similar benefits but are priced more competitively. You don’t want to end up sitting on the market for two or three weeks. If you do, you’ll have to keep dropping your price and buyers will sense the desperation to get your home sold.

Second, have all of your repairs completed before you put it on the market. It would also be a good idea to get a pest report done. That way you show the buyer a finished product and let them know you have done your due diligence.

Finally, make sure you declutter. Some houses need to be staged and some don’t, but every home needs to be decluttered and depersonalized before going on the market.

If you have any other questions, please feel free to give me a call or send me an email. I’m happy to help!

Why Shouldn’t You Work With an Agent Who Practices Dual Agency?

Scott@Thescottfullerteam.com (Scott Fuller) — Fri, 3 Feb 2017 11:07:00 -0800

If you’re selling your house, you shouldn’t ask any agent that practices dual agency to represent you. Here’s why.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

What is dual agency?

Dual agency is when an agent represents both the buyer and the seller in the same home sale. Why should you avoid this situation when selling your house?

Let me put it this way: how can an agent equally represent both sides when the seller is trying to sell the house for the highest price they can and the buyer is trying to buy it for the lowest price they can? If I’m representing a seller and I get a call from a buyer who’s interested in that seller’s house and also wants me to represent them in purchasing that house, that’s a problem because the seller has already hired me to look out for their best interests. They have my fiduciary duty to sell their home and get the most money in the shortest amount of time.

Don’t work with an agent who practices dual agency.

If you’re thinking about selling your home this year, you should ask every agent that you interview if they practice dual agency. You need to find out whether your agent will also represent a buyer that comes directly too them, or just you.

My suggestion is to only work with an agent who doesn’t practice dual agency. Not only can a dual agency situation cost you money when you’re trying to negotiate the price up front, but it can also cost you money when negotiating repairs and other terms during the transaction process.

If you have any questions about this topic or are thinking of buying or selling in the East Bay market, feel free to give me a call or shoot me an email. I’d be happy to speak with you!

10 Simple Ways to Add to Your Home's Value

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 28 Dec 2016 07:21:00 -0800

According to recent data from Redfin, homes sold during the winter are 9% more likely to sell than homes listed during other times of the year. In addition to this, homes sold in the winter sell for 1.2% more money. With the 2017 winter home selling season upon us, we are getting a lot of questions as to the best ways to prepare a home in order to get the MOST money when selling.

Trulia came out with a great article.

10 simple ways to add $30 - $50K to your home's value.

Here are the top ten.

Goal: Spend less than $10,000 and attract buyers who are willing to pay $30,000-$50,000 more for “move-in ready.”

Have A Professional Come Out: Free
An agent will help guide you through the right steps to make your home sell for the most amount of money. Make sure your agent doesn’t want to “expedite” your home sale before you have a chance to make the simple fixes to increase the value of your home.

Deep Clean: $300
Make sure your home is spotless. This includes places most overlooked like the oven, grease on the range hood, and baseboards. Consider hiring a cleaning company for a few hundred dollars to come out and make your house shine. While a super clean home does not literally boost your home’s value as much as other things, it will make a great first impression.

De-Clutter: $150
Clutter and clunky furniture make a home feel small. Less is more when it comes to selling your home, so consider making room in your garage or rent a storage unit and get rid of any extraneous furniture items.

Paint: $1500
Only paint the walls that need it, and clean the others if needed. If you have baseboards, definitely paint those. Go through your home and decide which rooms will need paint and which should just be cleaned or left alone. Don’t get too carried away because many new homeowners will decide to paint anyways.

Fixtures, doorknobs, light switches, outlets, and other small repairs: $500
Make sure that every little fixture, door knob, light switch, and outlet are all intact, clean, and in working order. On their own, these small repairs may not seem important, but those small things will add up to create the impression that your home has been neglected.

Homes sold in the winter sell for 1.2% more money.

Basic Gardening: $500
For a few hundred dollars, you can hire a gardening service to come out and remove weeds, clean up planters, plant some flowers, throw down some lawn seed + fertilizer, and make the outside area look great and presentable.

Ditch The Popcorn Ceilings: Avg. $2500
Popcorn ceilings are very outdated and may contain asbestos. Buyers already know this and can easily be turned away because of potential hazards. It’s recommended that you hire a company to do this because it can get very messy and possibly dangerous. Most companies charge $1-$3 per square foot.

Small Bathroom Upgrades: Avg. $2000
One bathroom can be upgraded for around $750 and can add much more value to your home. Make sure to go simple here because you’re just looking to upgrade your bathroom to look new.

Clean Carpets: $200
Some real estate agents advise against replacing your carpets because those are the first thing new homeowners change. At the same time, old dirty carpets are a turn off. Consider hiring a carpet cleaning company for a couple hundred dollars to come out and clean the carpets. Or even better, rent a rug cleaner machine from your local supermarket for under $100 and do it yourself.

Inspections: $750
Not every home improvement is cosmetic. Deteriorating roofs, termite infestation or outdated electrical systems — you can’t fix it if you don’t know it’s broken. Hire an inspector to check out the areas of your home that you don’t normally see. They may discover hidden problems. Small problems (such as a hidden water leak) can become big, expensive problems quickly; the longer you put off repairs, the more expensive those repairs will be.

Pricing mentioned in this article has been adjusted to reflect typical East Bay market costs for standard home preparation services. To read the full article please click here.

If you are thinking of selling and you're wondering what your home is worth, click here to discover your home's current value.

If you're thinking of buying, click here to take you to the local MLS, where you can see every home available in the East Bay market.

In the meantime, if you ever have any questions, you can give me a call at (925) 855-3432.

How Will a Trump Presidency Impact the East Bay Market?

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 30 Nov 2016 08:35:00 -0800

Donald Trump is the President-elect. How will his presidency impact the East Bay real estate market?

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

Donald Trump will become President in January. That said, what effects might his presidency have on the East Bay housing market?

1. Interest rates have gone up 0.5% since the election ended. That is a pretty big jump. Considering that the average loan amount is $700,000, a 0.5% increase means a $200 increase in your monthly mortgage payments. Janet Yellen is the head of the Federal Reserve, and she determines when mortgage rates are raised or lowered. We have seen very gradual increases, but there may be more pressure from a Trump Presidency for Yellen to increase those mortgage interest rates over the long term. As rates go up, affordability will go down.

2. The large sell-off in tech stocks will impact a lot of buyers. Many people in the East Bay work in the tech sectors, so as people sell off tech stocks in order to invest in other things that may do better under a Trump Presidency, that may impact people’s ability to purchase real estate in the East Bay.

Interest rates will most likely continue to rise.

3. Demand may change in regards to undocumented immigrants. Most undocumented immigrants who work here in the East Bay are renting apartments until they become documented citizens. If these people end up leaving the United States (of their own accord or due to new immigration policies) and fewer immigrants come into the United States, we could see a lot of vacancies in those apartments. There has been a large push by builders to continue to build high-density housing, so as we see more vacancies, that could impact the housing market. Rental rates will also drop, causing more people to rent rather than buy a home. Since buyer demand will drop, home prices will go up, further affecting affordability.

4. Rescinding mortgage restriction programs, like Dodd-Frank, could actually have a reverse effect and increase affordability. Getting rid of some of those programs could provide more loan programs because there would be less regulation for financial institutions.

There are a lot of factors at play, so it’s hard to say exactly how Trump will affect the real estate market. I definitely think that interest rates will go up soon. We are nearing a peak in the market, so if you are thinking about making a move, now could be the time.

If you have any questions, please don’t hesitate to give me a call or send me an email. I would be happy to help you!

The Best Places to Live in the East Bay

Scott@Thescottfullerteam.com (Scott Fuller) — Mon, 14 Nov 2016 09:55:00 -0800

In Money Magazine’s list of top 50 places to live in the U.S., two cities in the East Bay made the cut: San Ramon and Fremont.

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Purchasing in the East Bay area? Get full MLS access

Money Magazine recently came out with their list of the 50 best places to live in the U.S. They looked at factors such as taxes, health care, education, jobs, and home affordability. It was no surprise to us that two of the cities on this list are right here in the East Bay.

Coming in at number 21 is San Ramon. They are calling it “mini-Irvine.” With new neighborhoods, parks, and the headquarters for Chevron and 24-Hour Fitness in their backyard, this is a fantastic place to live and work. If you would like more information about San Ramon, reach out to us and we would be glad to send you some great resources.

San Ramon is a fantastic place to live and work.

At number 46 on the list is Fremont. This is a city with a diverse culture, as well as a great economy. It’s also very close to Silicon Valley.

If you have any questions about any of the cities on the list or here in the East Bay, we would love to talk. There are a ton of great ones out there. Give us a call or send us an email today.

Should You List Your Home During the Holidays?

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 26 Oct 2016 14:27:00 -0700

Contrary to what you may think, listing your home during the holidays is actually a very smart idea. Here are seven reasons why.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

While most people think that there are fewer buyers looking for homes during the holiday season, there are a few reasons why this time of the year is a great time to list your home. Here are my top seven reasons:

1. Buyers out looking for homes during the holidays usually have an impending reason to move. Because there will be less competition on the market from other home sellers, there will be a larger number of buyers who are serious about getting into a home quickly.

2. Buyers are more emotional during the holidays. Buyers want to be able to come in and see themselves in your home when it comes time for next year’s holiday.

3. Houses show better during the holidays. Your house will look better with holiday décor and buyers love to see this.

Buyers are more serious about finding a home during the holidays.

4. Buyers have more time to look at homes. Because it’s pretty common to take a few weeks off during the holidays, buyers will be able to take some time to make more prudent, rational decisions about purchasing a home.

5. Some buyers have to buy a home before the end of the year or before tax season ends. For a lot of people, this is a financial decision that they make under the guidance of their CPA.

6. Some buyers need to relocate before January. Because many new jobs begin in January, some buyers will need to be sure that they have a place to live and are settled in by November and December so that they can start work in January.

7. As a seller, you won’t have to move during the holidays. A good agent will be able to arrange a situation in which you close during December and then extend your occupancy in the house or get you a rent-back until you’re ready to move in January or sometimes even as late as February.

Don’t be tricked into thinking that buyers are only around during the spring or summer; lower inventory and less competition make the holidays a great to list your home. If you have the flexibility to be able to do this, give me a call or send me an email and I’d be happy to point you in the right direction!

These 3 Renovations Add the Most Value to Your Home

Scott@Thescottfullerteam.com (Scott Fuller) — Mon, 17 Oct 2016 14:40:00 -0700

If you’re thinking about selling your home, you may be wondering which improvements will get you the best return on investment.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

A couple of weeks ago, we sent out an email asking all of you to send us your questions about real estate and, overwhelmingly, the most asked question was, “Which additions or enhancements to my home will get me the best return on investment?” Here are my top three picks:

1. Garage door replacement. If your garage door needs to be replaced, a new one will net you a great return on your investment. The average cost of a new garage door is $2,000, but the average resale cost for that replacement is $2,600. This cost recouped is 131%!

2. Entry door replacement. Since this, like the garage, is going to be one of the first things that potential buyers see when looking at your home, it’s important that it makes a good first impression. A new front door will net you a great ROI as well, since the average cost to replace a door is about $1,400 and the resale value is almost $1,900—or a 128% cost recouped. Curb appeal goes a long way.

3. A minor kitchen remodel. In our area, the average cost of a minor kitchen remodel is about $24,000 and the resale value of this enhancement is about $28,000, which is a 116% return on the investment.

Insulating your attic can net you a 150% return on investment.

Bonus tip: attic insulation. This improvement often goes overlooked by many sellers who are getting their home ready for the market because they don’t think that buyers will necessarily inspect the attic. Rest assured, a fully-insulated attic will make a world of difference when it comes time for the home inspection. The average cost to insulate your attic is about $1,381 and the average resale value is $2,000 with a cost recouped of 150%!

One renovation that many people think about making is a bathroom remodel. Obviously, this can be a very important thing to consider, but according to the numbers, the job cost is about $22,000 and the resale value is just a bit less than that, so the cost recouped is about 95%.

I hope this helps you better determine where you should put your money in order to maximize your investment in your home. If you have any other questions about selling your home or anything else related to real estate, give me a call or send me an email. I’d be happy to help you!

Should You Accept a Contingent Offer from a Buyer?

Scott@Thescottfullerteam.com (Scott Fuller) — Mon, 26 Sep 2016 14:09:00 -0700

When deciding whether to accept a contingent offer, there are a few questions you should ask first.

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Let’s say you’ve got your home for sale on the market and you receive an offer from a buyer that is contingent on them selling their existing home. Should you accept it?

The first thing we need to find out is if the property that they own is currently on the market. If it’s not, that’s going to indicate a somewhat risky situation.

If their property is on the market, find out whether it’s sitting at a higher price range or a lower one. Properties in higher price ranges tend to take longer to sell, while properties in a lower price range tend to receive offers quicker.

If the property is under contract, we need to find out whether or not the buyer of that property has removed contingencies already. If they have, that means that there is a pretty good chance that the property is going to close.

Contingent offers can potentially be better than others.

Most of the time, when a buyer puts in an offer on your property and they have a property to sell, they’re usually pretty serious about their offer. From their point of view, if the home they’re selling is under contract, they won’t want to back out of the offer that they have on your property because it could leave them with nowhere to go.

For these reasons, if all of the conditions look right, we’ll usually recommend that sellers go ahead and accept a contingent offer. Contingent offers can potentially be better than other offers because that buyer has more motivation to close than a buyer who doesn’t actually have to make a move.

If you have any other questions on this topic or any others, feel free to contact us directly by phone or email. We’d love to hear from you.

FHA Lending Changes Are Making Condos Easier to Finance

Scott@Thescottfullerteam.com (Scott Fuller) — Fri, 9 Sep 2016 13:46:00 -0700

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Purchasing in the East Bay area? Get full MLS access

The government has recently made certain changes to FHA lending that will make it easier for people to buy condos in certain communities, and I’d like to discuss some of those changes today.

Here’s how it works:

Every condo association is either approved or not approved to be purchased by FHA lending. FHA lending is basically government-backed lending which allows an eligible person to put 3.5% down in order to move into a property. Right now, the condo community has to be approved by the FHA in order for a person who has FHA financing to be eligible to purchase in that community.

While the FHA laws have been strict in the past, they have been loosened up as of late July. Here are a few of the things that FHA has changed:

They’ve streamlined their entire certification process for a condo project to be approved for financing, which will make it a bit easier for people with FHA financing to be able to purchase in that community.

They’ve streamlined their entire certification process for a condo project to be approved for financing.

They have also reduced the minimum number of non-owner-occupant units in the community. What this means is that if, for example, 50% of the community is owned by investors, the FHA would not have normally lent in there, but now if only 35% of the units are owner-occupied, FHA financing would still be allowed in that community.

These changes make everything a little bit easier. If you rewind about 10 years, the real estate community became very competitive when the government employed some changes to make it easier for people to qualify for and purchase properties, and this is the situation we’re looking at once again 10 years later.

If you’re an FHA buyer with questions about how this works, or if you’re a seller wondering how all of this will impact the condo you’re trying to sell, feel free to contact us by phone or email at any time. We look forward to helping you.

A Common Issue with California Investment Properties

Scott@Thescottfullerteam.com (Scott Fuller) — Thu, 18 Aug 2016 16:26:00 -0700

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If you're an investor with a property that has had renters for a long time, I wanted to share a few things that you should look out for.

We always want to maximize your ROI when you have a rental property, and we're seeing many investors not charging market rate for rent. The classic case is someone buying an investment property 15 years ago and charging $2,000 a month in rent, and having great tenants who pay on time. Then, investors come to us ready to sell, but the tenant can't leave because they probably work in the area and have kids in the local school district. Market rate has gone up to, say, $3,000 a month, and that tenant can't afford to move out anywhere.

We always want to maximize ROI with rental properties.

If you've dealt with investment properties in California, you know that it's expensive, time-consuming, and requires hiring an attorney to get rid of a tenant. Many times during this period, they're also not paying rent.

Keep this in mind if you're an investment property owner!

If you have more questions on this subject, please feel free to call me or email me. I'd be happy to answer them for you.

5 Reasons to Visit That East Bay Home at Night

Scott@Thescottfullerteam.com (Scott Fuller) — Tue, 2 Aug 2016 12:52:00 -0700

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Purchasing in the East Bay area? Get full MLS access

When you are out looking at properties, you typically only visit homes during the day. Most open houses on the weekends end before 5 p.m. However, it’s important to visit a home at night before you purchase it. Why? Here are five reasons:

Find out what the commute is like. Driving in the evening allows you to see what that commute home from work will be like. Here in the East Bay, a lot of people find that the commute is longer than what they want. It is important to know how much time you will spend driving to and from work before you buy a home.

Figure out what the commute is like before buying the home.

You will see how many kids are in the neighborhood. During home showings, kids are usually in school. If you go to an open house on the weekend, you might see a few kids, but driving through a neighborhood in the late afternoon or evening gives you a better idea of how many kids are in the neighborhood and if the area is a good fit for your own children.

Is the neighborhood safe? By driving through the area in the evening or at night, you can spot any potential issues that may threaten your family’s safety.

Are there any loud neighbors? Will there be people having band practice or loud parties on school nights or during the workweek? Can you live with that?

How is traffic in the area? If you are buying a place closer to downtown, that area may see some busy traffic around 7 or 8 p.m. The noise may be a problem, but you should also keep in mind that traffic is a safety issue.

If you have any other questions about buying a home or about real estate in general, give me a call or send me an email. I would be happy to help you!

How the Baby Boomer Generation Affects the Real Estate Market

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 6 Jul 2016 12:25:00 -0700

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All of the baby boomers are looking to retire. Where are they going? How will their moves impact you and your home value?

First, it’s important to know that many more people are retiring today than they were 10 years ago. Ten years ago, 2.2 million people turned 65 each year. That number has surged to 3.5 million retirees this year, and by 2025, 4.2 million people will be retiring each year. A lot of retirees are cashing out on their home equity, and there are a few different things they are doing.

For example, many baby boomers are moving to downtown areas where it’s easier to walk to different restaurants and entertainment centers. Some are also looking for post-retirement employment, so it’s important for them to live closer to those areas. Walnut Creek is a popular destination for baby boomers right now.

"Downtown areas, like Walnut Creek, are popular destinations for baby boomers."

Still, a lot of those people who move downtown only rent a home for a couple of years. They’re not sure where they’re going, but they do want to be downtown and by popular amenities for awhile before they move out of the area.

Of course, others are moving to be closer to their kids. Still, more are following typical migration patterns to El Dorado Hills, Folsom, Texas, Phoenix, or Tucson. Many retirees who sell in the East Bay move to one of those places.

If you have any questions, give me a call or send me an email. I would be happy to help you!

Follow U-Haul Migration Patterns to Find Where People Are Moving

Scott@Thescottfullerteam.com (Scott Fuller) — Thu, 23 Jun 2016 10:34:00 -0700

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Where are people moving to in the United States? Which cities are they leaving? Which locations are popular these days? A great way to answer these questions is to look at U-Haul. While many people hire movers, a lot of people still use U-Haul to move from one location to another.

To figure out where people are going, you can simply look at U-Haul’s statistics and their pricing model. For instance, it is more expensive to rent a truck in cities that have a low inventory of trucks. In cities with more trucks, it is less expensive to rent one.

If we look at San Francisco, we see that it costs 35% more to rent a U-Haul truck there because there aren’t many trucks available. There aren’t as many trucks available because there aren’t as many people dropping off trucks in San Francisco at the end of their move. Therefore, we can determine that there are fewer people moving to San Francisco.

"Cities with higher inventory tend to have more people moving there."

On the other hand, in the Northwest, it is less expensive to rent trucks in cities like Seattle and Portland. That’s because more people are moving there and dropping off trucks, so there is higher inventory at those U-Haul locations. The same is happening in the Southwest in cities like Phoenix, Austin, and Dallas.

Last year, Concord, Calif. had the largest inbound truck drop-off in the United States. These patterns tell us that people are moving to the outskirts of large cities and, in general, more people are moving south.

It’s always interesting to see where people are moving and where they are coming from. If you have any questions, give me a call or send me an email. I would be happy to help you!

How Do We Draw Buyers From Out of the Area to Your East Bay Home?

Scott@Thescottfullerteam.com (Scott Fuller) — Wed, 25 May 2016 13:19:00 -0700

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Purchasing in the East Bay area? Get full MLS access

We are on location at a beautiful listing, 99 Oakridge in Black Hawk, or Danville for you out-of-towners. How do we show a property like this to everyone online? How do we market so everyone can see what a 7,000 sq. foot home looks like? We do two things.

First, we take aerial and ground footage on a full HD 1080p video camera. These videos allow you to see the inside of the home as well as all four acres on this property. Many potential buyers in this $5 million price range are not in the area, so videos like this show people what’s available to them, enticing celebrities, sports stars, and more to make the trip out to see this home.

"Buyers can see every detail of the property with our new dollhouse virtual tour."

We also create a dollhouse virtual tour so you can walk through the property from your own home. By simply using the mouse or arrow keys on the keyboard, potential buyers can see the entire home. This technology is pretty new - we use a special kind of camera to pan through the house, look at different areas, and create a better visual of what the property looks like in real life.

These two methods show buyers how awesome the property is, which makes them want to see it in real life. If you think these strategies can benefit you, you don’t have to be in this price range. Just give us a call or send us an email. We would be happy to help market your home online.

What to Do When Your East Bay Home Inspection Is Bad

Scott@Thescottfullerteam.com (Scott Fuller) — Mon, 9 May 2016 10:53:00 -0700

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

When you’re a buyer and you find a home to buy, the next step in the process is to get a home inspection done. If the inspection comes back with a lot of problems, what are your options?

When you get any kind of inspection, whether it be a general home inspection or a pest inspection, problems are going to come back. Inspectors are paid to come back with pages and pages of things that are wrong with the property. They are always going to find stuff, but most of the time these items aren’t deal-killers.

What we are most concerned about addressing are any health and safety items. These include problems with the foundation, roof, plumbing, or any other major part of the home. When you get the report back from the inspector, your agent should be able to negotiate repairs or credits for those big items.

When you get the report back, it’s important to prioritize a list, showing your agent what you are most concerned with. Then your agent can take those items to the seller and negotiate the repairs or credits.

If there is an item that proves to be too expensive to fix and it derails the deal, that’s okay. You don’t want to buy something that is going to be a money pit. You can absolutely cancel the transaction and get your earnest money back. Usually, we can get things figured out by negotiating on your behalf to take care of those big issues.

If you have any questions about this or need our services, give us a call or send us an email. We look forward to hearing from you.

How Long Will It Take You to Buy an East Bay Home?

Scott@Thescottfullerteam.com (Scott Fuller) — Fri, 15 Apr 2016 12:44:00 -0700

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

Today we’re going to discuss a question I get often, “How far ahead should I start looking for homes if I’m planning on buying?”

Right now, we are finding that a lot of the buyers out in the marketplace are looking to be all moved in their new home by the end of the summer. School starts a little earlier this year, so you need to be prepared to start looking for homes soon.

When you’re getting ready to go out and buy a home, the first thing you want to do is get pre-approved for a loan. This can take anywhere from 1-7 days. With a more in-depth approval, it can take 5-7 days because the lender is going to go through all of your financial documentation. This kind of pre-approval is basically as good as cash.

After that’s been completed, you can start viewing properties and submitting offers. You should be able to find a home pretty quickly in this market, unless you have something specific you’re looking for. If you are looking for something specific, like a single-story home or a certain lot-size, it could take up to 30 days before you find the right home and get an offer accepted.

Once your offer has been submitted, it can take 3-7 days for the offer to be signed and all the follow-up period to be completed. At that point, you’re under contract, then you’ve got the actual close of escrow date. That can take anywhere from 30-45 days depending on the inspection period and appraisals. After that is completed, you’ve finally closed escrow.

All in all, it can take up to 90 days from when you initially start the pre-approval process until the day the home is finally closed. If you’re thinking about buying, make sure you give yourself the adequate time. If you have any questions for us or need some help getting started with the process, give us a call or send us an email. We’d love to hear from you!

How Do Preliminary Title Reports Affect Your East Bay Home Sale?

Scott@Thescottfullerteam.com (Scott Fuller) — Mon, 29 Feb 2016 09:05:00 -0800

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

When you enter the East Bay real estate market, you’re going to receive a preliminary title report before you sell or buy a home.

We always have our sellers run a preliminary report to ensure that there are no problems with the title on the home. We want to ensure that the legal description is correct, that there are no mortgage liens, or any other restrictions that might prohibit a sale.

This is just one way to ensure a smoother and faster home sale. When issues with the title arise, it’s not fun. They take a lot of time and money to resolve, so it’s best to get them out of the way first.

If you have any questions about this, please don’t hesitate to contact us!

Here's How You Can Now Compete with Cash Home Buyers

Scott@Thescottfullerteam.com (Scott Fuller) — Mon, 15 Feb 2016 10:55:00 -0800

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

There are a few different types of prequalifications, and we’re going to be talking about the differences today. You may want to know this as a seller in the East Bay real estate market.

So, what are the different types of qualifications?

A prequalification letter can be obtained by talking to someone over the phone. It doesn’t hold much value because the qualification is based on what you had said. Nothing is checked by the lender, so it doesn’t hold much merit.
A pre-approval is when a lender looks at your bank statement, pay stubs, tax returns, etc. This is your typical approval, and listing agents typically require this of buyers.
A fully underwritten pre-approval holds the most merit out of the three. This process can take 3-5 days, but this kind of approval makes you almost as good as a cash buyer.

If you’re selling in the East Bay, you need to be looking for buyers who have been pre-approved or have been underwritten with an approval. Watch out for buyers who only have a letter of prequalification. In a multiple offer situation, this is going to be good to know.

If you have any further questions, please don’t hesitate to contact me!