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Investors, here is a downloadable copy of Apartment News Magazine. If you have income property investments this is a great tool to have in your file. For more information about buying or selling apartment buildings, contact us at (949) 607-8543 or send us an email at digonzini@kw.com
How To Beat A Cash Buyer A Get Your Dream House
Cash is king and will always be king. In today’s real estate market, there is an abundance of cash buyers, ripe with cash from investment properties or from downsizing later in life.
When a seller receives a cash offer s/he does not have to worry about banks or loans and the entire process tends to run smoother and quicker and, after all, time is money. At the end of the transaction, the seller gets paid the same way. Cash transactions close much more quickly and that is the important point.
The trick is always to make the credit offer look more appealing for the seller. Be able to move quickly.
Having a home sale fall through is extremely frustrating for any seller, and financial difficulties are a common problem. This is one reason why cash buyers are so appealing; the cash is available without having to wonder if the buyer will get financing. To make an offer more tempting, the credit buyer should come to the table with plenty of evidence that their offer is just as solid and as quick.
A pre-approval letter from a lender indicating that the buyer is a well-qualified and approved can help overcome some of the seller’s concerns.
Those who are comfortable being open with the seller should also consider making financial information available to the seller, such as employment information or assets, to help bolster the claim that a loan for the particular person is a sure thing.
Cash buyers know that their offers look appealing to sellers because of their ability to pay cash up front. For this reason, at times they expect some kind of discount on the listing price. The credit buyer can help counteract the appeal of the cash offer by offering a higher bid.
Certain steps, such as waiting for appraisals and loan approval, can end up adding weeks or months to the process. Speak with the loan officer to try to learn what can be done to speed up the timeline.
Sending a personalized letter may or may not have any impact whatsoever if the seller makes analytical decisions. Believe it or not however, there are some who will make decisions based on emotion. If the offers are very close or even slightly better, the buyer who has connected personally with the seller could have the upper hand.
To make an offer seem even more appealing, some buyers will take risks such as waiving the appraisal contingency or the home inspection.
One of the terms in a real estate offer that is almost always very important to a seller is the closing date. When you are competing against a cash offer being super flexible with the seller’s desired closing is really important. If the seller want to close on a specific date make sure you give it to them!
There is no denying that competing against a cash offer will be difficult. The convenience that the offer presents for the seller makes it very appealing, especially given the difficulties that can arise when dealing with a buyer procuring financing.
A cash offer on a house that a credit buyer has fallen in love with does not mean that there is nothing that can be done. Taking the above advice will give any credit buyer the best chance of securing their dream home, regardless of the other bids.
Why Selling Your House On Your Own Is A Bad Idea
While being able to sale your own home may seem like a great idea, it can be an very hard process that may leave money on the table. Most orange county homeowners do not possess the skills needed to sell a home successfully. Not to mention, the very hard aspect of professionally marketing your home to attract potential buyers. Below are some things to think about should you think of selling your home on your own.
Overvaluing
One of the main reasons why selling your own home is not a good idea is that more than likely, you may overvalue your home. It is true that most homeowners often think that their home is much more valuable than it may be. A lot of times when home owners try to sell their homes, the prices that they come up with often includes memories and sentiment behind their price decision. Overpricing your home will cause the house to sit on the market for a long time, resulting in time and money wasted. When this happens we often meet people who become so frustrated by the process that they either call us or end up selling their home far below what they should have.
Undervaluing is also a problem we see, where many for sale buy owners leave money on the table and do not get the right price for selling their home.
Having a realtor will make sure that a mistake like this does not happen, and that you get the fair market rate amount for your home. When we price homes we take many things into consideration, and we have a 90 day sell guarantee,* so having your home sitting on the market isn’t something you’ll have to worry about.
Real Estate Laws
Most people don’t know, but selling a home on your own opens you up to all the risks associated with real estate. If not done correctly, you could find yourself in some type of lawsuit during the process. There are strict requirements and guidelines that one must follow when trying to sell their own home. A realtor will have the necessary experience and knowledge to make sure that you meet those requirements and keep you out of a lawsuit.
Open House
During the home selling process, it will be necessary for you to show the home. You will have to coordinate everything, take time away from work to give people tours, and know what to say to sell your home. Moreover, you would have to make sure these people are who they say they are.
When selling with a real estate agent, you can be confident that strangers will not be allowed into your home. All potential buyers are pre-screened by your realtor. Not to mention, when prospects visit the property, your agent will walk them through your home in a professional manner, highlighting the aspects the buyers are looking for and showcasing your house in the best way possible. You would not be required to take time out of your day or off from work to meet people during the selling process.
The Negotiations
When you have a potential buyer, they may have demands. They may try and get you to make repairs, update rooms, or even reduce the home because things need to be fixed. Furthermore, they may ask specific market related questions that if unable to answer can make or break deals. When using a real estate agent, this is something you do not have to worry about. Agents are constantly negotiating for their clients and are able to make sure you do not get taken advantage of. They possess the knowledge to have any questions answered and can assess work needed and cost reductions that are just and fair.
The Paper Process
Many things can happen in the final stages of selling your home that may cause a deal to go sour. There are things that can arise that if not trained in the field, you may not know how to handle. An orange county real estate agent is prepared for the unexpected, which can not only help save deals, but get you top dollar in the process. They know all of the do’s and don’t of the game to help you avoid possible problems during this part of the transaction.
Remember, when you are trying to sell your home, the paperwork can be overwhelming running many many pages long. Apart from that, you also have to worry about all the disclosures that are mandated by the federal and state government. One mistake on these, and the deal could become invalid. If that were to happen, you’d be forced to end the deal or spend the time and money redoing all the paperwork and goring through the entire process over again.
If you are trying to sell your OC home and you are not a realtor yourself, you will be surprised by what you get just from hiring a professional who is experienced in this area. If you have your home on the market or plan on selling soon in the Orange County area, give us a call. We can come out and speak with you for FREE. You have nothing to lose. Let us prove to you why we’re not only the best (why work with us), but how we can add value and make sure you get top dollar for your home and the process is quick and smooth.
Call now! (949) 682-9930 and have a team of professional OC real estate agents working for you!
What is a short sale? | Buying a Short Sale Home
Let’s say you’re looking to buy your first home. You start doing some research and you begin seeing a term come up that you are unfamiliar with: short sale. Perhaps you have heard the term before, or maybe it’s your first time reading it. Either way, we’re going to give you a little breakdown as to what exactly that means when a home is listed as a short sale.
A short term sale occurs when a homeowner sells a property for less than what they currently owe on the mortgage for that property.
For example, say the homeowner has a home that’s current market value (the most he/she can expect to get from a buyer) is $300,000. However, when he bought the home it was worth $500,000. He put down $50,000 so the loan amount from the bank (lender) is $450,000. So, the difference between what the loan amount is and what he can sell his home for is a loss of $150,000 (450,000 – 300,000). The homeowner is unable to make his payments for various reasons and is either forced to sell or foreclose.
In order for a short sale to occur however, the mortgage lender must not only be informed about the desire to short sale the home, but must also agree to accept the short sale amount in exchange for terminating the loan with the current owner. Some of the reasons that the mortgage lender may actually accept to a short sale enlisted by a homeowner include: (a) the individual(s) who borrowed the money cannot continue to make the monthly loan amount for payment and/or (b) the homeowner(s) cannot afford to pay off the full loan amount upon sale of the home and needs to move out of the home.
In general, a lender’s approval is necessary in order for a short sale of a home to take place. They review evidence and analyze whether or not the buyer is capable of continuing to pay the mortgage payments. The lender also compares whether a short sale would be more beneficial for them VS foreclosing on the property.
Although a short sale is not as beneficial as paying a mortgage in full, many buyers approach this process because they would like to avoid a foreclosure which can carry with it a more significant impact on credit score than would a short sale of the home.
Buying a Short Sale Home
Alright, let us say you’ve found a nice home that is listed as a short sale. What’s the process like to buy it?
When buying a short sale home, it is a different process than buying one that is’t a short sale. One of the biggest factors could be time.
Overall a short sale purchase may take longer than a traditional purchase. This is due to the fact that you and your real estate agent submit a price you’re willing to pay for the home to the lender (and not the homeowner). The lender then must look at all the offers, and decided which is best for them and agree to the price. This can take various amounts of time, anywhere from 30 to 90 days and beyond.
Another thing to keep in mind is that with short sales you may tend to get a better deal yet with that you are more often than not buying the home “as is.” Therefore, it’s important that you and your agent go over the home and point out anything that may need improvements since you’d be the one paying for them. This is all factored in when making an offer.
Overall, while the short sale process is different than non short sale purchases, there are ways to get great deals and move into areas/homes you’d never thought were in your budget. Since they are a bit more complex, we highly recommend seeking the advice of a professional real estate agent.
DIG Homes is here to help you with any questions you may have. We’re experienced with short sale homes and make sure our clients have paid a fair amount and received the home of their dreams. Call us now: (949) 682-9930
5 Ways To Add Value To Your Home
Since your home has the potential of being one of your greatest investments, adding value to it can pay off – especially if you plan on selling it. There are several ways in which you can do this, with some ideas being more expensive than others. However, if your home needs improving, you should put in as much work as you necessary. If you are unable to do so, you can simply make a few additions and upgrades to your home’s current features that you know will heighten the overall value of your home.
Here are 5 thing you can do now to help increase your value.
1. Improve Your Home’s Curb Appeal:
Your home’s curb appeal is the first impression people get when they see your property; If they like the outside, they’ll want to see the inside. Your home should look well kept and welcoming. Some ways to do this would be with a few potted plants, clean cut and well maintained grass, fresh flowers, etc,. Also, creating a pathway to the front door that is well lit at night and inviting shouldn’t be overlooked.
2. The Backyard:
In the summer, your yard should be a place where the great outdoors can be enjoyed. It should be groomed, maintained, and properly taken care of so that it looks it’s best. Some ways to spruce up this area is to add some trees, flowers, and some shrubbery; all of which can be bought at competitive prices at your local Home Depot. Anything else that will enhance the beauty of your yard should also be considered. Remember, it’s not about how much money you can spend, but about making the right decisions to show off the potential. Of course adding a pool will always boost interest, especially in Orange County.
3. Modernize Your Kitchen:
Your kitchen should include quality nice cabinets, clean flooring, and well maintained countertops. In addition to convenient storage space and lots of room to work in. If you kitchen is small, make sure you are utilizing all it’s space correctly to showcase maximum mobility. If your budget permits, upgrading to marble countertops and newer amenities should be considered. Moreover, add things like a breakfast bar can really add some appeal (and value) to your kitchen. If possible, all appliances should match the theme of the kitchen. For example, If you have some stainless steel appliances, try buying new versions of the others appliances in the kitchen in stainless steel. Same would go if you have black appliances, make sure that all the appliances in the kitchen are black and so forth. Spend some time thinking about what would best make this area of the home stand out.
4. Add a Deck:
A deck is a feature that many people find appealing, and it’s something that a lot of people look for when purchasing a home. Even if you have a large yard, a deck can be a valuable add on. If you don’t have a large yard, adding a deck can bring an extra layer of outdoors enjoyment and make your lack of a spacious yard more appealing. Decided if this is something that would work well with your yard. If so, consider design, shape, and appearance that would complement the yard and exterior of the home.
5. Upgrade Your Bathrooms:
Just like a kitchen, a bathroom can sway someone’s decision on whether or not to purchase your home. You should consider upgrading to spa tubs or a whirlpool to enhance your bathroom’s features. This can also just be done in the master to give an added bonuses and save money. Some other things to add could be: multiple jet showers, double sinks, and even a separate toilet room.
Remember, when deciding to upgrade your home, whether it’s to add value to sell, or just increase quality of life, your goals – and budget – should be considered first. Keep in mind the house as a whole, and what people will see when they view it. Be smart with your money, as you may be looking for good rate of return on your home improvements.
It may be hard to determine what will add vale, how much, and what won’t really be worth investing it. That’s what we are here for. Give us a call, (949) 682-9930 or contact us for any help!
CA Real Estate Stats: May 2014
The California housing market saw some exciting changes in May. Below is a summary.
- Housing inventory remained unaltered.
- The Index was 3.6 VS 2.6 in May of 2013 (this figure is how many months on average a home takes to sell. The mean number a home, single family, took to sell was 31.6 days VS 33.8 days in April. These numbers are encouraging, however in April 2013 it was 27.1 days.
- Mortgage rates fell this month, with 30yr fixed rates averaging around 4.19% down from 4.34 the previous month. Adjustable rates averaged 2.43%
Here is what Orange County did this month vs previous months.
| May-14 | Median Sold Price of Existing Single-Family Homes | Sales | |||||||
| County | May-14 | Apr-14 | May-13 | MTM% Chg | YTY% Chg | MTM% Chg | YTY% Chg | ||
| Orange County | $698,260 | $679,820 | $655,630 | 2.7% | 6.5% | 8.6% | -13.7% |
Notes: Info taken from CAR
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