Buying a Home

Want To Make More Money When You Sell Your Home?

Terri Pontzious 1 Comment

ImageSo, you have been pleasantly surprised by the increase in prices and you have decided to take the plunge and put your home on the market. You have watched the TV home improvement shows and know you should “get your home ready” or “stage” it, but what does that mean?

I can’t stress the value of “curb appeal” enough. When potential buyers arrive at your home and walk to the front door, are they making a list repairs that need to be completed? Or, are they drawn to the freshly painted and welcoming front door? The new door mat? The colorful flowers in the pot? It makes a big difference.

I recommend you stand across the street from your home and pretend you are a buyer…what do you see? Let your emotional ties to the home go and be honest.  Is the front door dusty and in need of paint? Can you see the trash cans? Are the walks clean?

Most homes show better with less furniture.  You have decided to move, so start packing! Rent a storage unit for furniture that blocks paths through your home and put them in storage. Do you need all the books on the book shelves – probably not, pack them. What about out of season clothes or toys your kids don’t play with anymore?

Now is the time to de-clutter – if you haven’t used it in a month, does it really need to be out on a counter? If not, donate it or pack it away!

You must de-personalize! Pack up those personal photographs. You want potential buyers to say “I can see myself living here” not wondering what kind of people live here now, looking at your family photos to see if they know you!

Your house needs to shine! Wash windows inside and out. Re-caulk tubs and showers if needed. Polish faucets and mirrors. Replace worn rugs. Hang up fresh towels. Keep the beds made!

Now is the time to make minor repairs. Even better is to have a home inspection that you can provide the buyer with a list of the items you have or will take care of.

Taking a couple of weeks to prepare your home for sale can be worth literally thousands of dollars…REALLY.  I would be happy to share more details for how to prepare your home for sale, just let me know how I can help you!

FINDING THE RIGHT REALTOR: What It Takes To Buy A Home In San Diego Today

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When I started working with my clients James & Sharon in June, they were really excited about buying their first home. They thought it would take about a week or two to find a home, write an offer, and have it accepted.  But, the rapidly declining inventory of homes for sale in San Diego County, especially in the under $275,000 price range, quickly shattered that illusion!

After viewing many homes, finding out that there were already multiple offers over the asking price, having three offers rejected because other buyers bid over what my clients could afford, we finally had an offer accepted and have since closed escrow. But, it’s not easy!

You are going to need an experienced agent…this is even more important in a competitive market. You need an agent who knows the local market, the other agents in the market, and the market trends. You need a veteran with a good reputation. Why? If there are multiple offers on a property, having an agent with a great reputation may give the listing agent the push they need to recommend the seller take your offer over others. The listing agent and sellers need to know that your agent is a pro who closes transactions.

In the lower price ranges, expect to pay the asking price or more!  With multiple offers now the norm, there really is no point in coming in low, you only diminish your chances of having your offer accepted, or even countered.

Write a biography about you and your family (or have your agent do it). Do you have kids? Where do you work? What do you love about the home? Send it, along with a picture of your family, with the offer. For my clients James & Sharon, it meant they had the edge over the competition. The sellers connected with their family and wanted them to have the home.

Example: I have a home listed for sale, under $275,000, a traditional sale. We had multiple offers. While I advised the seller to counter with all the buyers, they chose to work with only one family. Why?  Because the seller thought her parents would have loved these buyers being the ones to buy the home. They made an emotional connection.

True, in the case of bank owned or investor owned properties, this might not help. But with more and more traditional sales coming on the market, it can mean the difference between you being the lucky buyer selected or not!

WHAT YOU SHOULD KNOW BEFORE YOU BUY A HOME IN SAN DIEGO

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So you think you are ready to take the plunge and buy a home in San Diego. What’s the first step? Well, buying a home is a big step, especially if it’s your first home purchase. After all, it is the largest purchase most people make. It requires thought, preparation, planning, sometimes sacrifice, and the LAST step in the process is looking for a home!

  • Unless you are a veteran or active duty military eligible for a VA loan, you will need a down payment, somewhere between 3.5% and 20% of the purchase price. With some loan programs, you can obtain a “gift” of the funds from a family member. You will also need normal closing costs, 3% of the purchase price is average, but it can be more or less. You can request that a seller pay some or all of the closing costs. If you are asking the seller to pay the closing costs, you don’t have as much negotiating power when it comes to the price. In today’s market, you can expect to pay the asking price OR MORE if you are asking for closing costs.
  • Now is the time to meet with your lender and become pre-approved for a loan. Yes, BEFORE you go house hunting! The lender will need tax returns for the last two years, your most recent pay stubs, copies of your bank statements, information about all your current debt and more. Start collecting the information so it’s easily obtainable when you need it.
  • The lender who is loaning you the money to purchase a home will require that you have some money in “reserve” for an emergency. Even if you have family members willing to “gift” you the down payment and closing costs, you need to have some money saved. Once you are a home owner, you will be responsible for repairs and maintenance on your home. Plumbing leaks, dishwashers break, windows are broken. And, if you are like most people, you will want to make the home your own with paint, maybe carpet or flooring, new furniture or appliances. Now is the time to start the discipline of saving your money! It may mean fewer lattes, fewer dinners out, or skipping a vacation. It will be worth it!
  • Do not buy anything on credit now. It will affect the purchase price of the home you can buy. Wait until AFTER you have closed escrow to buy the new car, furniture, washer and dryer. Do not co-sign a loan for anyone else.
  •  Make a wish list and include everything you want in a home…the area, the size, number of bedrooms, bathrooms, garage, pool or no pool, fixer upper or not, etc. Next, divide the list into “Must Haves” and “It Would Be Nice If It Hads”. Realize that you won’t find everything on either list in any home. Be realistic.
  • Your real estate agent will meet with you and discuss what you want in a home and advise you on what you can and can’t expect to find in your price range in the area you desire. A good agent will take the information and find the homes that meet your requirements. They won’t show you homes that don’t. Why would you want to see them anyway?

The home buying process will be exciting, stressful, and sometimes tiring.  Achieving your goal of home ownership is the ultimate reward!

Is It A Good Fit: How To Choose to Realtor To Sell Your Home

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ImageHaving sold homes in San Diego for over 20 years, I am still surprised how many people really have no idea how to choose a Realtor to sell their home. But then again, why would they? Selling a home isn’t something people do every day. Most families are staying in their homes for over five years before selling now, some much more than that.

It might surprise you to know that many real estate agents do not keep in touch with their past clients. Why? A variety of reasons…some were part-time agents and haven’t remained active in the business.  Some agents say they are afraid to talk to their past clients; they just don’t want to know about problems. Some agents are off to find the next sale and maintaining relationships just isn’t a priority. Unfortunately, it is true that most people do not hire the agent who represented them when they bought their home to help them sell it when the time comes!

So, how do you find a good agent? My advice is to ask your family and friends if they have an agent they would recommend. Then find out:

  • Is the agent in the business full-time?
  • Does the agent have a track record of actually selling homes?
  • Can the agent provide references?
  • Does the agent belong to the National Association of Realtors and the state and local Association of Realtors – not all licensed agents are “Realtors”.
  • Does the agent know the local market?
  • Does the agent have a marketing plan?
  • Does the agent have a professional website and presence on the internet?
  • Does the agent return calls, emails, and text messages in a timely manner?
  • Does the agent understand the legal documents they are preparing and asking their clients to sign?
  • Will the agent take the time to make sure you understand the contracts, the process, and anything that comes up in the process?
  • Is there good chemistry between you and the agent? Sometimes personalities just don’t mix, that’s okay!
  • Will the agent give you advice on how to prepare your home for sale?
  • Does the agent review the most recent comparable sales in your area to determine the asking price?

For most families, their home is their largest asset. Finding a professional and experienced Realtor to help protect that asset is an important first step in getting it sold for the best price, within your time frame, and with as little hassle as possible. Taking the time in the beginning to find a great Realtor will save you money, headaches, and will make the process much more enjoyable, maybe even fun!

Are Short Sales For You?

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With so many of the homes on the market today being short saleImages, they are something every buyer needs to consider.  Before you jump in with both feet, though, there are some things to think about! 

  • This is not your normal transaction. No matter what terms you and the seller agree to, the lien holders may not agree, and you are back to square one. The lien holders may make seemingly arbitrary decisions or requirements. That is the name of the game! 
  • You will not get a great “deal” with a short sale. Yes, the price may be discounted some, and that may not be worth the wait. The will banks have an appraisal or valuation of the property….we all have access to the same information, so value isn’t a secret. You will see short sale listings priced below market value in some cases. This is to encourage buyers to write an offer so something can be submitted to the lien holders to get the ball rolling. It doesn’t mean that the lien holders will accept the price you offer, and they often do not. You can expect to pay close to market value for a short sale in most cases.
  • Short sales do require experienced agents on both sides of the transaction…it is not time to work with a novice! Especially the listing agent should be experienced with short sales or you may waste months of time.
  • If you do not have extra money for repairs, do not make offers on short sales. In most cases, they are sold in As-Is condition and neither the sellers nor the lien holders will make any repairs. There may be exceptions, but don’t go into a transaction expecting it. If you are purchasing with FHA or VA financing, the property needs to be in good condition. 
  • Short sales take a long time!  The fastest closing I have seen is about 45 days, many take several months…up to a year or more. In our area, 90 to 120 days is normal. So, if you need to be moved in a certain time frame, short sales may not be for you.
  • Remember that even though the short sale process has, in many cases, improved, not all short sales will be approved. Some will never close escrow and will go into foreclosure. 

KCM posted a great article about short sales, you can read here.

Do You Love Where You Live?

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I love where I live. 

Living “in the country” brings me a sense of peace and tranquility at the end of the day.  Today, my husband and I watched a Golden Eagle soar over our house and land on a tree overlooking our property.   What a majestic being he was. I wanted to grab my camera, but we couldn’t move without disturbing this giant bird and ruining the moment. So, we stayed put, transfixed as we watched the eagle look for his evening meal.

We all like different things – some like the country, like I do; some like living in the mountains, the beach, in the city, in the suburbs, near a school, near public transportation – we are all drawn to something.  Sometimes that changes over time. What we like when we are 25 may not be the same as when we are 35 or 60.

Sometimes, we dream of where we would really like to live, and that can lead to a goal and a plan to achieve our dream.

So, do you love where you live?  Where do you dream of living? I would love to know, so let me know what and where your dream home is!

I LIKE What I Do!

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I like what I do….I mean, I really like what I do.  I have always liked looking at homes, all types of homes. The homes I dreamed of owning and living in one day.  The quirky and unique homes.  The homes that needed work….but, oh, what they could be!  The homes that were too modern for me.  The homes with too many stairs or with the yard that was too small.  Homes with the great views. Even the homes I hated!

I even like going on home inspections!  Boy, what you can learn on a home inspection!  I have almost never had a home inspector not find problems with the electrical system…home owners have this thing about “I can do it myself “when it comes to the electrical systems in their homes. Really, unless you are an electrician, not a good idea! I have learned about foundations, the good, bad and ugly. HVAC systems, how they work and why they don’t. I have learned a lot about how to maintain your home.

Of course, I love looking at the gardens, vegetable gardens, flower gardens, any kind of garden. You can tell a lot about someone by looking at their garden! I have noticed many more vegetable gardens in the last few years; people are beginning to find the joy of growing their own veggies. I love our vegetable garden and am always looking for new ideas. Of course, I love flowers. Having fresh cut flowers in my home makes me happy.

So, I guess its natural that seeing a client’s face as I hand them the keys to their home, or their settlement papers when they sell a home, is so rewarding. What a high to see a young couple walk through the door to their first home. How bittersweet it is to close the door after helping an elderly client sell their home of many years as they go on to the next phase of life. How exciting to help investors make a great investment and reap the reward, or help a family move into their long anticipated dream home.

I just love it!

Home Inspections for the Home Buyer

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When a buyer finds the home they love, their offer is accepted, and escrow is opened, the next step is having the home inspection.  Most home buyers have no idea how to select a home inspector, and will often make their decision on price. But, this is definitely NOT the time to shop for the least expensive inspector. You need a reputable inspector, one who is a member of the professional organizations for home inspectors in your area, one with experience, and one who has references.  In our area, an inspection of a home will run from approximately $450 to $600.

A home buyer usually pays for three items up front…the appraisal, the credit report, and the home inspection.  If the transaction does not close, they will not be reimbursed for the appraisal or home inspection (in most cases).   Home buyers need to remember that the purpose of the home inspection is to make sure the major components of the home are operating correctly….is there something that would cause you not to purchase the home if not corrected?  It is not a time to start asking for cosmetic repairs.  The inspector’s job is to find things wrong with the property, and they will!  Buyers are usually buying a previously lived in home. Some are lived in “considerately”; others are lived in a bit “rougher”.

I have rarely had an escrow fall out because of inspections.  A seller wants to sell the home and a buyer wants to purchase it, so we usually work out any issues that may arise.