Monday, December 16, 2013
Tuesday, April 16, 2013
Waiving Your Appraisal Contingency-Good Idea or Bad?
Buyers, right now let's face it, there seems to be a shortage of homes on the market. There actually has been for quite a while, but it has gotten worse which means that prices are going up once again. Good for sellers, bad for buyers.
With that in mind, many buyers are having to sign a counter offer from the seller which is removing one thing that actually has been in place to protect the buyers from over paying for a home...the appraisal. Once the appraisal contingency has been removed, the buyer must understand that they will have to make up the difference in the sales price to the appraised price and this could be a substantial amount of money. I have seen homes appraise for $10,000-$50,000 more than the list price. So, eliminating the appraisal contingency is a risky business because you could lose your deposit that you put down in the first place when you opened up escrow.
The market is hot, prices are soaring and this has created this frenzy of supply and demand. Appraisers and realtors alike are having trouble even pricing homes in this market. Realtors can only do our best to look at comparable homes that have sold, but when everyone seems to be willing to over pay for homes, prices are just going up it seems quickly. We don't know what the homes are closing for that still have not closed. Many agents are not cooperating if we call them (and I have called a few to ask them what they did open escrow with) to let us know because it seems it's a dog eat dog world amongst other agent who don't want to help other agents either. Some agents get upset that you have a possible listing in their "farm area" and don't want to help. So, we have to sit and wait to see what that house closed for and so we wait.
Many agents advise their clients that they can get out of the escrow if they don't like the amount that the house appraises for and they tell their clients they can get out for other reasons. This is true to some degree that if they don't like how the inspections come out-say there is a leak in the roof etc or some type of mold etc. They have that contingency they can get out of buying the house with. This is true...but many agents are tightening the inspection periods some to 7 days which means you would have to have the inspections all complete before that time period. What can be a damper is getting an appraiser out there quickly with this market or even getting the appraisal back quickly. You could have all the inspections done and not have anything wrong with the home. Or should I say nothing substantial. And, not have a reason to not buy the house. Then you have the appraisal come in for a lot more money and have to pay the difference from the sales price to the appraised price.
One thing I have my buyers sign the the CAR form called Market Conditions Advisory. Meaning they know they know that I don't control the market when it comes to prices and they are in control making the decision to buy at the price they do.
So, removing the appraisal contingency up front is up to you. If paying more for a house is worth it to you to get the house now, then it is worth it for you. Sometimes, if you want a house, you need to do what you need to do to obtain it. If that means paying more than the list price, then do so. And, if removing your contingency that was there to protect you in the first place for the appraisal is something you want to do, it is your choice after all.
Kind Regards,
Joan Patterson, B.A., G.R.I., A.S.P., Realtor, License #01431647
951-204-1864
http://inlandempirerealestate.kwrealty.com
With that in mind, many buyers are having to sign a counter offer from the seller which is removing one thing that actually has been in place to protect the buyers from over paying for a home...the appraisal. Once the appraisal contingency has been removed, the buyer must understand that they will have to make up the difference in the sales price to the appraised price and this could be a substantial amount of money. I have seen homes appraise for $10,000-$50,000 more than the list price. So, eliminating the appraisal contingency is a risky business because you could lose your deposit that you put down in the first place when you opened up escrow.
The market is hot, prices are soaring and this has created this frenzy of supply and demand. Appraisers and realtors alike are having trouble even pricing homes in this market. Realtors can only do our best to look at comparable homes that have sold, but when everyone seems to be willing to over pay for homes, prices are just going up it seems quickly. We don't know what the homes are closing for that still have not closed. Many agents are not cooperating if we call them (and I have called a few to ask them what they did open escrow with) to let us know because it seems it's a dog eat dog world amongst other agent who don't want to help other agents either. Some agents get upset that you have a possible listing in their "farm area" and don't want to help. So, we have to sit and wait to see what that house closed for and so we wait.
Many agents advise their clients that they can get out of the escrow if they don't like the amount that the house appraises for and they tell their clients they can get out for other reasons. This is true to some degree that if they don't like how the inspections come out-say there is a leak in the roof etc or some type of mold etc. They have that contingency they can get out of buying the house with. This is true...but many agents are tightening the inspection periods some to 7 days which means you would have to have the inspections all complete before that time period. What can be a damper is getting an appraiser out there quickly with this market or even getting the appraisal back quickly. You could have all the inspections done and not have anything wrong with the home. Or should I say nothing substantial. And, not have a reason to not buy the house. Then you have the appraisal come in for a lot more money and have to pay the difference from the sales price to the appraised price.
One thing I have my buyers sign the the CAR form called Market Conditions Advisory. Meaning they know they know that I don't control the market when it comes to prices and they are in control making the decision to buy at the price they do.
So, removing the appraisal contingency up front is up to you. If paying more for a house is worth it to you to get the house now, then it is worth it for you. Sometimes, if you want a house, you need to do what you need to do to obtain it. If that means paying more than the list price, then do so. And, if removing your contingency that was there to protect you in the first place for the appraisal is something you want to do, it is your choice after all.
Kind Regards,
Joan Patterson, B.A., G.R.I., A.S.P., Realtor, License #01431647
951-204-1864
http://inlandempirerealestate.kwrealty.com
Friday, April 5, 2013
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Website-http://inlandempirerealestate.kwrealty.com
951-204-1864
Give me a call today if you are looking to buy or sell real estate in the Inland Empire. I specialize in equestrian properties in the Inland Empire. You can give me a call at 951-204-1864.
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Wednesday, March 27, 2013
Rental Scam Information
It always makes me so mad when people take advantage of other people and rip them off. I get so angry that it makes my skin boil when I find out that someone has done something so wrong to someone. The rental industry has really risen due to many things happening in our economy. So, once again, the vultures will always be out there looking to make easy money off some unsuspecting person. And, this may be all the money they have for a while...they have been saving up for first month's rent, last month's rent and a deposit. In some cases, this could be a substantial amount of money...easy money for those out there trying to make money by basically STEALING from some non-suspecting renter. UGH!!! I get so mad at these types of people.
Here are some scenarios I have seen and I am sure there are more, but please beware of the wolf in sheep's clothing. Just keep some of these in mind when you are out there looking for a rental.
1-If the rental seems TOO GOOD to be TRUE...it probably is. This means if the rental rate is below normal for the neighborhood...BEWARE! You may see a 3 bedroom home in Rancho Cucamonga renting for $1000 and if you go some of the rental sites, you may see it should really be renting for $2,500 a month...be careful! You can go to rentbits.com to check out what the average rental prices are for homes in your area.
2. You may get an email if you applied for a Craigslist rental. Be careful if it has misspellings, too many words capitalized, does it start out with Dear Madam or Sir? Is there anything in the email that references the UK, cashier's check, Nigeria, God, Reverend, Pastor, etc? Is the email from an email provider that is FREE such as yahoo, AOL, hotmail, gmail etc? If the email you received has many of these items, it could be a scam.
3. Another scam is on a free classifieds site and the rental price is LOW again. Scammer tells renter that he is out of the country on business and asks the prospective renter to wire him money to HOLD the house for them. And bingo...the money is gone, and no house is really available to rent.
4. One more scam I have heard of is the scammer will say they own a house and they don't. They tell the prospective renter they will take a deposit to hold it for them until they can get a key to get inside as they lost their only key. And, wooolaaaaa the deposit is never to be seen again. Nor is the house or the scammer.
5. Be leary of ads on Craigslist. I am not saying they all are bad, many are legit, however, please be careful. I recently heard of a lady who advertised her house on Craigslist, took deposits for several tenants and then held off their move in days for various reasons and they never saw their money again.
Please use your heads and if it sounds too good to be true, it probably is. Also, if the prospective land lord does not call you back and only wants to communicate via email...be careful. Don't pay with a money order or CASHIER'S Check. Make sure you walk through the home with the property manager or owner as well. Verify that they really do own the property...you can check with the County Recorder or local realtor.
Please spend your money wisely and if you have doubts or something makes you feel that uneasy feeling-you should walk away.
If I can help you find a home in the Inland Empire, please let me know. Buying and selling homes is my speciality!
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
http://inlandempirerealestate.kwrealty.com
951-204-1864
Here are some scenarios I have seen and I am sure there are more, but please beware of the wolf in sheep's clothing. Just keep some of these in mind when you are out there looking for a rental.
1-If the rental seems TOO GOOD to be TRUE...it probably is. This means if the rental rate is below normal for the neighborhood...BEWARE! You may see a 3 bedroom home in Rancho Cucamonga renting for $1000 and if you go some of the rental sites, you may see it should really be renting for $2,500 a month...be careful! You can go to rentbits.com to check out what the average rental prices are for homes in your area.
2. You may get an email if you applied for a Craigslist rental. Be careful if it has misspellings, too many words capitalized, does it start out with Dear Madam or Sir? Is there anything in the email that references the UK, cashier's check, Nigeria, God, Reverend, Pastor, etc? Is the email from an email provider that is FREE such as yahoo, AOL, hotmail, gmail etc? If the email you received has many of these items, it could be a scam.
3. Another scam is on a free classifieds site and the rental price is LOW again. Scammer tells renter that he is out of the country on business and asks the prospective renter to wire him money to HOLD the house for them. And bingo...the money is gone, and no house is really available to rent.
4. One more scam I have heard of is the scammer will say they own a house and they don't. They tell the prospective renter they will take a deposit to hold it for them until they can get a key to get inside as they lost their only key. And, wooolaaaaa the deposit is never to be seen again. Nor is the house or the scammer.
5. Be leary of ads on Craigslist. I am not saying they all are bad, many are legit, however, please be careful. I recently heard of a lady who advertised her house on Craigslist, took deposits for several tenants and then held off their move in days for various reasons and they never saw their money again.
Please use your heads and if it sounds too good to be true, it probably is. Also, if the prospective land lord does not call you back and only wants to communicate via email...be careful. Don't pay with a money order or CASHIER'S Check. Make sure you walk through the home with the property manager or owner as well. Verify that they really do own the property...you can check with the County Recorder or local realtor.
Please spend your money wisely and if you have doubts or something makes you feel that uneasy feeling-you should walk away.
If I can help you find a home in the Inland Empire, please let me know. Buying and selling homes is my speciality!
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
http://inlandempirerealestate.kwrealty.com
951-204-1864
Friday, March 1, 2013
Inventory of Homes LOW-Sellers Now is The Time to SELL!!!!
Wow, this market is frustrating for realtors who are working with buyers. I have several buyers that I receive on a daily basis, however, if there are not homes available, how do we find buyers a home?
Well, I have resorted to door knocking to see if sellers would like to sell in the neighborhoods that my buyers are looking at. The days are gone where there is too much inventory on the market. We have a SHORTAGE of homes for sale right now.
Sellers are getting a lot more for their homes than they thought they would. Many buyers are coming in with all CASH making it a quick move for most sellers if they so desire. Of course, every market and City are different. But, many times a home is sold even before it hits the market due to the listing agent having their own buyers, or another realtor they know that has a buyer. It is just crazy!
Pending home sales ere up 4.5% from December to January and 9.5% from a year ago. The Pending Home Sales Index from NAP is at the highest since 4/2010. And, remember, the buyer tax credit was happening during that time which made demand for homes crazy back then.
It seems we are having the strongest price growth in more than 7 years which is crazy. Interest rates are still low, and many buyers are trying to swoop in before the interest rates go up along with home prices. It is frustrating for buyers due to the investors who are coming in and paying all cash. Many FHA buyers don't seem to stand a chance with this happening. Even Conventional buyers are having a hard time up against the all cash offers.
So, in essence what I am trying to convey is, if you would like to sell, now would be a great time. If I can be your agent, feel free to contact me. I have more buyers than I can find homes for right now and my team is very frustrated that we cannot help them find homes.
Give me a call at 951-204-1864 or send me an email at calljoan4ahome@gmail.com if I can be of any help.
Sincerely,
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
http://inlandempirerealestate.kwrealty.com
Well, I have resorted to door knocking to see if sellers would like to sell in the neighborhoods that my buyers are looking at. The days are gone where there is too much inventory on the market. We have a SHORTAGE of homes for sale right now.
Sellers are getting a lot more for their homes than they thought they would. Many buyers are coming in with all CASH making it a quick move for most sellers if they so desire. Of course, every market and City are different. But, many times a home is sold even before it hits the market due to the listing agent having their own buyers, or another realtor they know that has a buyer. It is just crazy!
Pending home sales ere up 4.5% from December to January and 9.5% from a year ago. The Pending Home Sales Index from NAP is at the highest since 4/2010. And, remember, the buyer tax credit was happening during that time which made demand for homes crazy back then.
It seems we are having the strongest price growth in more than 7 years which is crazy. Interest rates are still low, and many buyers are trying to swoop in before the interest rates go up along with home prices. It is frustrating for buyers due to the investors who are coming in and paying all cash. Many FHA buyers don't seem to stand a chance with this happening. Even Conventional buyers are having a hard time up against the all cash offers.
So, in essence what I am trying to convey is, if you would like to sell, now would be a great time. If I can be your agent, feel free to contact me. I have more buyers than I can find homes for right now and my team is very frustrated that we cannot help them find homes.
Give me a call at 951-204-1864 or send me an email at calljoan4ahome@gmail.com if I can be of any help.
Sincerely,
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
http://inlandempirerealestate.kwrealty.com
Tuesday, February 26, 2013
Does Your Neighbor's House Affect YOUR Appraisal?
I get asked this question all the time, "Will my neighbor's house affect my appraisal?" And the answer, is an emphatic YES. If your neighbors take excellent care of their home, it will help keep your value up. If their grass is like a park, their house does not have flaking paint, their house just simply has great curb appeal-kuddos to them!
However, on the ugly side...if your neighbor's grass is two feet tall, they have Christmas lights still hanging in July, oil all over their driveway, dead trees etc-well you get the picture, this can lead to your home being devalued by 5 to 10%. The appraisal industry calls this neighbor "external obsolescence" which means this is a factor that is beyond your control...but it still affects your property.
If your neighbor has a lot of cars all over the place, it may prevent your home from selling. If someone comes by to look at your home when it's on the market and there are barking dogs, that could deter someone from wanting to live there as well. The best approach is to try to talk with your neighbor first, however, this does not always work. And, when it does not, the City typically has code enforcement that can help you. It is USUALLY better to go to the neighbor first to try to resolve it. Sometimes that does not work as it is a case by case situation as we are dealing with all sorts of personalities as we know.
The biggest form of external obsolescence has been with homes that have been foreclosed on. Many of these homes have gotten so run down and the weeds are so high. Many Cities are enforcing the real estate agents that take these listings from the banks to take care of the grass (or lack thereof) and make the curb appeal much better or there will be fines.
So, yes, your neighbor's house and neighboring homes do affect the value of your home. Try to get things cleared up before putting your home on the market if you can. Many times, these things are beyond our control and unfortunately, it is what it is and we can only do what we can do. We cannot control everything.
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
http://inlandempirerealestate.kwrealty.com
However, on the ugly side...if your neighbor's grass is two feet tall, they have Christmas lights still hanging in July, oil all over their driveway, dead trees etc-well you get the picture, this can lead to your home being devalued by 5 to 10%. The appraisal industry calls this neighbor "external obsolescence" which means this is a factor that is beyond your control...but it still affects your property.
If your neighbor has a lot of cars all over the place, it may prevent your home from selling. If someone comes by to look at your home when it's on the market and there are barking dogs, that could deter someone from wanting to live there as well. The best approach is to try to talk with your neighbor first, however, this does not always work. And, when it does not, the City typically has code enforcement that can help you. It is USUALLY better to go to the neighbor first to try to resolve it. Sometimes that does not work as it is a case by case situation as we are dealing with all sorts of personalities as we know.
The biggest form of external obsolescence has been with homes that have been foreclosed on. Many of these homes have gotten so run down and the weeds are so high. Many Cities are enforcing the real estate agents that take these listings from the banks to take care of the grass (or lack thereof) and make the curb appeal much better or there will be fines.
So, yes, your neighbor's house and neighboring homes do affect the value of your home. Try to get things cleared up before putting your home on the market if you can. Many times, these things are beyond our control and unfortunately, it is what it is and we can only do what we can do. We cannot control everything.
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
http://inlandempirerealestate.kwrealty.com
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