Location, Location, Location

Sunday morning, house is sleeping, I'm reading.....and have another confirmation of what we all know in Real Estate....

Location is a Big Part of Home Buying and Selling!

Malibu Rocks !

When the home in one neighborhood doesn't sell for the same amount as the very similar home in another neighborhood.....location.

When the one closer to the freeway sells faster to the commuting family than the one in the center of town.....location.

When Malibu beachfront property is still able to sell for, holy cow what was that price tag in the article? SEVENTEEN MILLION?....um, location!

Ahh, I sooo miss the beach!

You're In Escrow - DONT BUY A THING!!

I was reading this morning, I'm so typical, and came quickly across an article in the LA Times Real Estate section about some changes in credit search and standards for loan applications.

Here is the link to the story:

New Debts Could Affect Your Mortgage Terms

I just thought it was kinda of funny. Haven't we been telling our clients for years that once you're in escrow and the loan has been approved....Don't Buy A Thing!

Before we start looking for homes together, all my clients must discuss financing with a lender, bank, broker. Need to be sure they can buy the home they want. Needless to say, that banker must look at a multitude of items for their loan application. One being the buyers debt. And, the debt to income ratio.

The buyers get their loan approved, terrific! But, and a big but here, banks check towards the end of escrow to make certain that no additional debt, or hidden debts, are discovered. Because why? That would, of course, change the debt to income ratio.

So, don't ignore your Realtor when they tell you that you can't go buy new furniture, or that big Television before close of escrow. Don't start applying for new credit lines either. The banks don't want to see changes on your credit. They want to see the same buyers debt to income ratio at the end as they did when they originally approved your loan.

Really, just be patient.....it is a virtue after all!

34 Showings in 34 days, Not Sold?

When your seller wants their home sold, what do we do?

We market it! We put it on a plethora of websites, host open houses, run an agent caravan, price it to sell, reduce it to gain additional interest, network with agents and buyers, set-up toll-free sign riders, make color fliers, keep a steady eye on the competition, follow all leads, and present all offers to sellers.

What does the seller do?

They are the vital ones to help sell their home. Make it available, keep it clean, do their absolute best to get it in the finest show condition possible...and respond to all offers presented.

And, they are the ones that need to know to accept a valid offer when it comes. Yes, absolutely do negotiating, work on getting the best price possible. Getting the best price possible...... what if it's less than they want? Should they walk away? Maybe, sometimes, only sometimes. Each case is individual, for certain.

Keep in mind the old adage in Real Estate, 'The first offer is usually the best', and it is very frequently right on. It may not be the best terms, may not be the best price, but generally it is the best in the long run.

So, I speak of the long run? Being on the market for a long while doesn't usually help get more proceeds for the seller. It makes people wonder why it's not sold yet.

And, a seller should wonder why also.  34 showings in 34 days? And, the property is not sold?

I wonder why......?



Love Those Clients Closing Smiles!

Almost nothing feels better than handing over the key to my clients' new home! And, yesterday was one of the most adorable smiles ever.

I've known this client for about 15 years, our kids played hockey together and we've stayed in touch. The chapters in her life have changed and it was time to find her a new home.

We looked for many months, wrote several offers, and got approved on a Short-Sale(SS) at the end of last year.

I called her on Monday to let her know the loan funded and, that on Tuesday we would get a call saying it had recorded and was now officially hers.

So, at 2:30 yesterday I missed a call and she left me a message noting that I should be proud of her for waiting til that time to check on recording status. I said, "Hell, I waited until only 1:00 pm!" ;o)

But, just before 3, we got the call, I went to pick up the key, and met her at the property at 5:01. Hah, I actually got there a few minutes early so I could open the garage and let her pull right into her new home!

The really cute part of this story is that she was going to sleep there last night! I said, are ya crazy? It was in great need of cleaning, carpet and paint. She had those people coming the next morning @ 8am and thought best if she was just there already......and she was sooooo excited.

It's adorable to see someone looking absolutely delighted about their new home. She could see past the sticky floor by the fridge. See way past the dog-dirt carpet in the living-room. Her friend laughed when she and I both got down on all fours to sniff the bedroom carpet for dog accidents! And, she even figured out how to cap off the refrigerator water line that the seller left dripping into a cup.....that was over full!

First thing this morning, I called to see if she really did sleep there.....what do you think?

Reading, Reading, Reading

I'm up super early on a cloudy Sunday morning. It's quiet in the house, I'm reading articles, latest news. Most Real Estate related, some silly entertainment news, and some about what to eat for longer life. You know, news we are all reading now.

I did spend some time reading a couple of associates recent blogs. And, mine are based a lot on my opinion due to my experience, but still information is extracted from the news. What I read this morning was good and confirmed that most Realtors in my area are on the same so called....page.

Interest rates may be creeping up? Good, I say? Hmmmm.....well, helps to make fence-sitting buyers get off the fence. Shadow Inventory gap widening? Good? Well, at least some of the NOD/NTS' are getting further along.

I have to find the positive in our market. Have to. Negativity doesn't make things happen.

So, I'm happy to see some more REO's pop on the market, I'm aok with interest rates still amazingly low, albeit rising. More SS? Well, at least they are moving along and closing some before they go back to the bank and make that REO gap widen even more.

There is a cup half empty, or a cup half full. I'm happy to be keeping mine at the very least, half full!

FHA Extends the Flip Rule

Yippee! The FHA is extending the suspension of the 'anti-flip' rule for another year! You can read the article from the LA times below:

FHA Flip Extension

In my book that is good news. Helps to move some more properties, helps with buyers that have little money to buy a home that has already been re-habbed. Helps all-around.

With so many buyers doing FHA financing these days and so many distressed properties on the market and still waiting to be released? This program will help move some of those properties quicker.

Any investor waiting on those court house steps to buy at discounted pricing because they have the cash to do it can continue to re-hab the properties and have more buyers available to buy them when they are ready to be sold.

Yes, those investors with cash waiting on the steps are making money. Of course. But, I'm just looking at the rainbow of opportunity for many buyers. And, yes the FHA program will still have protection stipulations for the transaction. But, it's more homes moving. And the more we move out of the dang 'Shadow Inventory' and into the hands of home-owners, the better.

And, I'm flipping with joy!

Economist Thoughts

We had a great speaker at our last office meeting. She was an economist with the National Association of Realtors. Full of information, and phew, lots of energy. Doubtful that it was caffiene. I beleive that is just the way she is!

At any rate, she had a lot to say about our country, the world and, of course, our little valley.  Her biggest push is that what we all read in the newspapers and see on the television isn't always that valid.....to us.

What is valid is what is happening here in our market. In Santa Clarita Valley. (SFV for my out of SCV followers). Stats about the market in N. Carolina don't mean anything to buyers in Valencia and Canyon Country.

Unemployment in Texas isn't what is valid to us. California is what is valid to us.

Slow new construction in our area? That's important. That it's picked up? Even more important. That our jobless rate has come down a tad? Super.

Again, it only matters to buyers and sellers in Santa Clarita, (and, again SFV, forgive me for not including you in the emphasis of this post).

Buyers want the best price, sellers want the best net. It's all about who wants it more and how long they are willing to wait. Or how much of a gamble they are willing to risk.

Is the market going to appreciate? Sure. When? Not too much very soon. This we know. Is it going to depreciate? Maybe, if the 'Shadow Inventory' gets released in a rush, just maybe. We've all been waiting for that 'Shadow Inventory' to get zeroed out.

Working Realtors in our little valley know what's going on. We've seen the changes in the last few years, this past year, this last quarter. We've watched home prices continue to depreciate. We've watched the buyers dwindle after the tax credits lapsed.

And, yet, there are still plenty of buyers out there. The days of multiple offers are done, for now. The days of FHA financing, with very little down, are here for a while. That's the economy. The pricing of homes is allowing first-time buyers to get in. And, that's good for buyers.

Regardless of the situation of Real Estate in any area, it will build wealth in the long run. There still is a tax deduction for home ownership. There still is a sense of pride taking care of your own home. There remains a wonderful place for your family to enjoy.

She was a great speaker, with a lot of information. The focus, what we already knew. Santa Clarita is it's own town, we have our own Real Estate stats. And, Real Estate is still a good investment.