Frankly Speaking

This past week, I made the trek to Sacramento for the California Association of REALTORS® business meetings. And once again the hot topic was the bulk sale proposal from Freddie and Fannie.  You may remember that a few months ago I told you about Lance Martin (REALTOR® extraordinaire) who almost single handedly led the leadership of CAR to make the decision to lobby against this program. While CAR has sent emissaries to Washington to address the issue, and spent copious amounts of money in print ads in an attempt to rally the public support in opposition of bulk sales in California, it appears that we could in fact be fighting a losing battle. I say this because of the view on the horizon (let me explain). Seven years ago, we were in an incredible real estate market, prices were rising quickly. The average buyer could afford an above average home. And, there was nothing but blue skies all around us. But on the horizon, the companies who had always been there when the mark...

In Real Estate there is one responsibility that easily outweighs any other that a seller (or his agent) have. That is the one regarding disclosure. Simply stated if you know a pertinent fact or detail germane to the property, it must be disclosed. Failure to do so could put the offending party at severe risk of litigation. For the seller, the form most commonly used to achieve this purpose is the Real Estate Transfer Disclosure Statement or the TDS for short. I thought it appropriate to spend a little time investigating this form because properly filled out it can be a shield, improperly completed and it will be the spear by which you are skewered. As with all of the CAR forms, the first section identifies the property in question and confirm that it is in compliance with section 1102 of the civil code as of the date it is completed. Section two clarifies whether or not the seller is living in the property, and the amenities of the home. Through a series of check boxes we c...

Recently the California Association of Realtors sent out a press release regarding the top ten myths of a short sale. After reading it I thought that some of you might benefit from the topic. Here is my adaptation of the story.  I hope you enjoy. First it is important for you to note that by most accounts 2012 is expected to be the year of the short sale. This will be for a number of reasons, not the lease of is the likelihood that the IRS could begin taxing forgiven debt beginning in 2013 if their current policy is allowed to sunset.  So the motivation for sellers who are in a delinquent situation to sell will be a major driving force. Myth 1: The homeowner must fall behind on a mortgage payment in order to qualify for a short sale. Truth: This was the case years ago. In fact it was common place for real estate professionals to consul their clients to intentionally halt payments to “motivate” the banks to cooperate with the transaction. Today what a seller must be...

[Enter Post Title Here] Over the past couple of weeks I have spent a great deal of time exploring why now is the time for you to buy. And, I firmly believe that it is…if, you are able to do so. While I have been espousing the many benefits of homeownership, I have unintentionally ignored a large subset of the current housing market. They are those who are losing their homes because they can no longer carry the weight of their obligations. I bring this up because I met a couple recently who are more typical then they might realize.   Most likely they are in their late twenties to early thirties. They have two adorable children and they are living in the house of their dreams. A massive home by any measure, they got it for a great price and believed that this would be the family home for years to come. It is often very sad how life sometimes makes a mockery out of our best plans and intentions. You see, this family is now another statistic of an economy struggling ...

The power of mindset is truly an amazing thing. By way of illustrating this fact I offer the following for your consideration. This past week, I was in Anaheim for the National Association of REALTORS ® business meetings. And, at those meetings, I had the occasion to hear the President of the California Association of REALTORS ®, The Hawaii Association of REALTORS ® and the Guam Association of REALTORS ® all speak to us about their markets. This is what they said. Properties listed are selling quickly at or near list price. Inventories are low by traditional standards. In all three places, prices have been stable or on the increase for a protracted period of time and yet they are in a buyer’s market. Think about this for a second, demand is higher than supply. Prices are (in many areas) rising and they are in a buyer’s market. For the life of me I cannot remember the last time that this scenario has played out like this. The classic law of supply and demand is that when...

Recently I had a transaction where after due consultation the seller agreed to list the home at the price which I suggested. I arrived at this price by doing a in depth analysis of the current activity within a half mile of the subject property. In attempting to arrive at the best possible price point (the point at which someone would offer on the home) I looked at the most recent sales of similar properties including those which were in escrow, but had not yet closed. And, at the active listings (those currently on the market but not yet sold). I look at the recent sales for obvious reasons. These are the homes which had completed the sales process. By studying these properties, I can see where they were priced when listed, how long they were on the market. And, what the final sales price was. All of this is vital information when determining where to price your listing. If a home is on the market for a protracted period of time without selling, it most likely will sell fo...

Recently I spent the weekend in Long Beach watching my fiancé  run her first marathon. For the record, she was amazing. Finishing the 13.1 mile trek in a scant  two hours and forty six minutes. This of itself is noteworthy and should be proclaimed for all to read in a publication such as the press enterprise. However, while I am very proud of her effort, I am actually writing for a completely different reason. For the two weeks leading up to this event, she was filled with self-doubt. Was she ready for this challenge? Did she train as effectively as she could have? Would it be too hot or too cold? Would she be able to go the distance which was 3 miles farther then she had previously run? And as we discussed her concerns (call me silly) I actually started thinking of all the insecurities that buyers have to overcome in order to create a mindset conducive to buying. Is this the right house? What about the neighborhood…Will my family be safe? Are the schools going t...