Many buyers find themselves in the situation of looking at distress properties – short sales, foreclosures, and bank-owned properties. It may be because you specifically want to purchase this type of property, or that may be all that is available in your price range.

Some things you need to know as a prospective buyer if you get through the offer process and the short sale, foreclosure or REO is approved by the bank:

BUYING THE HOME AS IS:

Generally these are homes you must purchase “as is.” Be aware that you will be the one taking the responsibility for making repairs, not the lender. So find out what defects there are upfront by having a thorough inspection. In some case some repairs may be negotiated but don’t expect it. If the costs are high for these, factor this into your thinking about whether this is the right property for you or not.

Depending on the issues, you may want to have one or more tradespeople in to evaluate the defects (say plumbing and electrical) so you have an idea of how much the repairs might be. This additional information MAY be helpful if you are attempting to negotiate repairs (a good idea even in the case of a typical sale where you are dealing directly with the homeowner).

TERMITE ISSUES:

Here in California it is common for properties to have termite issues (this may not apply to those of you in other parts of the country).

In the typical sale the seller will complete a termite inspection and take care of infestation and termite damage as part of the negotiations (There are exceptions). A termite clearance MUST be provided before your lender will allow closing to occur. In the case of these distress sales you will often find that the seller, because of financial hardship, will not be responsible for termite repairs, but may pay to have the inspection done (they are pretty inexpensive). In the case of REOs, however, banks often will not do the inspection either. The Catch 22 is that your lender might require a termite inspection as well as a termite clearance.

If the bank is not willing to pay for this then you will need to do so. It is a good idea to have your own termite inspection if the seller will not so you are aware of any issues and can take care of them accordingly.

Be aware that with short sales and REOs, you may have to take care of the termite problems yourself in order to obtain the clearance and meet your lender’s requirements.

It is smart to work with an agent who has some experience with short sales and similar transactions so you get the guidance you need to make the right decisions.

As a seller with a property to sell as part of your relocation, you have a huge task ahead of you. Selling your current home in order to buy a new one is a big piece of this.

If you are like many folks, you NEED to sell in order to buy another home. And in many markets this is a challenging undertaking given inventory levels, competition, pricing shifts and more. So how does one accomplish this successfully.

Working with a REALTOR who has the CRS designation (is a Certified Residential Specialist) is one of the best decisions you can make. Here are some reasons a CRS will benefit YOU, the homeowner.

An agent with the CRS designation must complete a number of intensive 2-day classes on a variety of real estate topics to benefit consumers (a favorite class is the one on listing strategies - all the things that we can do to help you market and sell you home effectively; another is technology - kearning all about the many ways technology shuld be used to effectively makret a home, commununicate, and run a successful real estate business).

There is significant time commitment on the part of an individual who decides to gain this designation, and the training classes are some of the best available in the real estate world.

We must pass an exam for each class we take, so you can't just sit there pretending to learn but must demonstrate this before being awarded credit for the class toward the overall CRS designation.

Classes involve significant interaction among attendees so there is a huge opportunity to further learning from others in the business

All candidates for the CRS designation must meet certain production requirements, either a minimum specific number of transactions (the minimum is 25 transactions, or $8 million in production with a minimum of 10 transactions within a 2 year period). This means you MUST have substantial experience as a real estate agent in order to become a CRS. Another great benefit since you will be able to work with someone who has demonstrate significant real estate experience.

Having a CRS is likened to having a Ph.D., and it's considered to be THE most rigorous designation (only about 4% of all REALTORS posses this certification). And many CRS  agents continue to attend classes or to repeat classes as they are revised,  and to participate in the CRS organization either nationally or at the local level (as I do on the Board of Directors for the Southern California Chapter of CRS).

Don't you want someone who has the best knowledge and training, and can provide the competitive edge YOU need to sell your home?

One last thng to consider. You will need someone in your new location to help you BUY a home. A CRS can make the right connections to other CRS agents around the country and find you the best person with THE SAME training and experience.

Buyers in our area, and others, are now confronting a new issue in their real estate transacation - the APPRAISAL.

Having a home appraisal is NOT new, of course, and most buyers (and sellers) typically anxst over the appraisal until it is completed, since the bank will not issue a loan commitment until the underwriter has the complete file and reviews the appraisal.

Today's market, wtih declining prices in many areas, and the increasing number of short sales, foreclosures, and REOs (bank owned properties) is creating problems in many communities with appraisals which are, increasingly, coming in below the agreed-upon purchase price. Banks are tightening standards (only 3 months allowed for comparables, not 6) and appraisers themselves are being more closely scrutinized.

You may be relocating to a market very different from your current one and may find this to be more of an issue, or possibly less.

Is this a concern?

In many markets it should be. And as a prudent buyer there are things you should know, and do.

Read There's a New Source of Anxiety here.

This is just one more GOOD reason to make sure you are working with an agent in your relocation who really knows the local market and can help avoid some of these issues.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

Most REALTORS strongly encourage buyers to hire a home inspector to investigate the home they are trying to buy and part of the due diligence process. To not do so is foolhardy, in my opinion. We even have a disclosure here that advises buyers that to not conduct such an investigation is going against the recommendations of the agent. But sometimes folks don’t listen.

With the market we are in, this becomes even more critical, given the number of short sales foreclosures, and bank-owned properties (REOs). Since these homes, and sometimes others, are sold AS IS, a prudent real estate buyer will want to know what they are getting themselves into before signing on the dotted line.

My experiences with home inspectors have been pretty good, although I know there are some who are not so competent. And let’s face it they are normally not trades people so their inspections may be less thorough than, say, a licensed plumber. Nor should they be expected to be as knowledgeable. Plus there are always those darned disclosures and disclaimers.If they recommend further evaluation, it is probably wise to listen.

The point of all this is to ask whether you, Mr. and/or Ms. Carlsbad Buyer, are really doing as thorough an inspection as you should. Or are there cases where more is needed?

Read the full article here.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

I started a series recently on financial planning as it pertains to real estate purchases. We talked about financial planning in general, keeping in mind our overall financial goals as we consider our real estate purchase. My friend Paul Paroti, a financial planner, shared his wisdom with me regarding making these real estate purchase decisions with long term goals in mind.

Next we discussed the issue of down payments and the financial considerations associated with making decisions about where the money is coming from, long term goals, tax implications and so on. As a financial planner, Paul again shared some thoughts on this important decision so buyers can give appropriate consideration to their down payments and where to obtain the cash. Putting a large chunk of money down may not always be the right financial decision.

Another popular focus of buyers these days, especially the baby boomers, is on buying a vacation or second home. The current real estate market presents a phenomenal opportunity for second home buyers.  Whether you’re a baby boomer looking for a home to move to permanently in a few years, or just someone who loves the idea of having your own vacation home, the housing market is ripe for buying in many areas, and thus the chance to get into a second home at a great price is there for the shrewd buyer. 

While buying a second home offers countless benefits, and sounds rather idyllic for many of us, there are some financial implications of a second home purchase  Most people are aware of all the benefits- the prestige of owning an attractive property, the enjoyment of weekend and holiday getaways and the economic benefits of long-term appreciation and a tax sheltered investment. 

However, buyers should realize that the expenses of owning a second home can be significant, and my feeling is that most people underestimate the true cost of owning a 2^nd home.  Like a primary residence, you likely expect to have a mortgage, property taxes and homeowner’s insurance (as well as HOA dues if it’s a condo or townhome).   What you probably haven’t given as much thought to are other expenses you’re more likely to incur with a second home than with a primary residence.  

•  When you buy a new primary home you’re likely to bring at least some of your furnishings from your prior home

• With a second home you’ll likely need all new furnishings unless you buy the property completely furnished - everything from living room and bedroom sets to a washer and dryer to silverware and dinner plates
• Since many second homes are located some distance from the primary home it is essential to consider the costs of traveling to and from your second home.  With gas prices where they these days are things can add up quickly
• Finally, don’t forget the costs of maintaining your second home.  Even if you’re a do-it-yourself gardener at home, chances are you’ll need to hire someone to help with your second home, unless you’re up for driving who knows how far just to mow the lawn, or taking time from your “vacation” to mow the grass and deal with other maintenance issues

I recommend that second home buyers sit down and make a list of all these “additional” expenses so you have a reality check on your costs.  Then, add 10%-15% to account for miscellaneous items and things you may have forgotten.  The purpose isn’t to scare you, but rather to make sure you give serious thought to the full ramifications of your purchase.

Buying a second home is an opportune time to sit down with your financial planner (and if you aren’t using one this might be a good reason to start working with one).  He or she will be able to “crunch the numbers” and show you how your second home purchase will affect your big picture situation.  Taking the time to do this will give you the peace of mind of knowing you’re on the right track.  Worst case scenario? If buying your dream second home would put a crimp in your retirement plans you’re better off finding this out beforehand.

By taking a little extra time to think everything through and understand the financial implication, you’re ensuring you’ll be able to enjoy your new second home without any unnecessary worries.  Happy house-hunting!

I appreciate Paul’s thoughts on these issues and recommend you give him a call or send an email with any questions about your second home purchase and how to factor this into your long term financial planning goals. Paul can be reached at (714) 424-9440 (office), (949) 466-7519 (cell) or via email at Paul@ifsplanning.com.

Why not find out how he can help YOU with your financial planning objectives?

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

I recently wrote about the importance of considering your overall financial status and goals when making a Carlsbad home purchase. It’s a big decision and there can be huge financial implications, both in the near term and down the road.

Most buyers, unless they qualify for 100% financing or obtain gift money, will allocate a large chunk of cash to the down payment (up to 20% or more of the purchase price; with detached homes starting around $500K in Carlsbad we are talking $100,000!). And the decision of how large a down payment to make on your home purchase is not just about making a competitive offer, but may have huge implications on your big-picture financial situation. This decision requires a careful analysis and depends on your unique set of circumstances.

So I got some information from a friend of mine, Paul Parotti, a financial planner, and wanted to share this. With the help of a qualified real estate agent, financial planner, mortgage professional and possibly a CPA, buyers should look at the following factors when making this decision:

How will the down payment expense affect your nest egg? Tying up too much of your net worth in your home would create major problems if you were to lose your job or encounter some other financial difficulty. For those who think they will always have the option of cashing out excess equity by refinancing, consider that mortgage standards on cash out refinances are much more stringent than on purchase transactions, with lower loan-to-value allowances and stricter borrower credit requirements. Even if you do qualify for a cash out refinance, closing costs may be several thousands of dollars. The bottom line: it’s best to keep enough cash available to float you for six months or more, just in case.

Read the full article here.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

Yesterday, Memorial Day, I got meme’d, against my wishes. Got one of those Internet chain letter types of things called a MEME where I am supposed to yap about me and share stuff I wouldn’t ordinarily. Since I was busy with business I didn’t get this done until today. Sorry, Irina.

Mary McKnight initiated this Memorial Day Super 8 MEME, based on the number 8, you know like 8-ball, figure 8? Her rationale? It’s her favorite number, the 8 is the infinity symbol if you turn it on its side, and it’s 2008. Whatever. Anyhow, she meme’d Laurie Manny, who meme’d Irinia Netchaev, who decided I ought to be part of the 8 bloggers she needed to meme. Lucky me.  Since I tend to be a law abiding citizen, and meme law according to Mary McKnight requires that I answer these questions AND find 8 other lucky bloggers to do the same, I cooperated. Sort of a twist on “do unto others as you would have them do unto you.”

Here’s Mary’s MEME

Here’s Laurie’s MEME

Here’s Irina’s MEME

Anyhow, here are the 8 questions (do you see the trend?).

1. Who is your favorite musical artist (post a YouTube Video)

This is impossible. I don’t have a real favorite. There are many artists that I really liked, or have liked over the years, and picking one out of all these doesn’t seem right. I enjoy classic rock and roll – The Rolling Stones are high up there, for example. Can’t leave out the Beatles. Pink Floyd and The Moody Blues were favorites of mine at some point. Love Annie Lennox from the old Eurythmics (my kids when they were young called them The Arithmetics). Oh, and Fleetwood Mac too. I’m a big jazz lover and the list of artists is endless. Chris Botti is a fave, as is (was) Chet Baker. And blues is right up there – Etta James may top that list. Since I have to pick one for a video, here’s Sweet Dreams sung by Annie Lennox.

2. Who is your favorite artist? (Post a Flickr photo)

I have been interested in art for many years, and credit my wife, Kay, with cultivating that love and appreciation. I love visiting galleries and museums (The Uffizi in Florence,  Italy was certainly a highlight, but then there was the Tate in London, and the  Getty in LA, and…). My wife and I also collect art, and had an art gallery in Cambridge MA for 3 years before heading to California. Not sure I would pick a favorite artist since there are so many good ones, especially contemporary which tends to be a love of mine. So here’s one from my own collection (and I don’t have to worry about who owns the Flickr photo, right?). “Martinis” by Rob Brooks.

3. Who is your favorite blogger?

Nope you won’t trap me there. Don’t have one – there are so many great bloggers I enjoy reading.

4. If you could meet anyone (dead or alive) who would it be and what is the most interesting thing about them?

Again, this is a tough one…how does one choose? I guess the one person that immediately comes to mind is Mother Theresa. This short video of her message says it all.

5. What did you want to be when you grew up? 

Hmmm, I don’t think I wanted to grow up. That’s sounds Peter Panish I suppose. I know at one point being a vet intrigued me. And as a teen I got interested in real estate (my Mom was with RE/MAX) but then pursued my love for psychology in undergrad and grad school. Did that for a bit and found it was not for me, at least not working in a medical environment.

6. What is the most interesting piece of trivia you know? 

I can’t ever remember any of that stuff, and I am miserable at Trivial Pursuit. But I found a fun tidbit in honor of Irina since she writes about Pasadena:

“ In Pasadena, it is illegal for a secretary to be alone in a room with her boss”

7. If you could live in any point of history, what would it be and why?

I’m not a history buff, and I think I have lived in the times I liked best – grew up in the 60s, lived through the disco age, worked for a DotCom company and went through that meltdown, and have seen tremendous advancements in technology in the 1990s into the 21^st century. What could be better?

8. What is the most interesting job you have ever held?

Hmmm, well there have been some that are not so much fun. And I suppose I would be wimping out on this question if I said my current career in real estate, which I enjoy the most because of the diversity of stuff I get to do and the people I meet. But thinking back, I would otherwise say my last Human Resource position at HookMedia as VP was the most interesting. I was the 6^th employee and got to help grow the company to 103 folks in 3 cities, build the culture, design all the programs, etc. I had the most fun of any corporate job I have had and it was a great place to end my corporate life.

Soooo, NOW I get to pick 8 lucky bloggers as part of this MEME. Yes, it is no longer Memorial Day, so maybe that makes a difference. I don’t know but I don’t want anyone saying I didn’t do my part. Maybe one of them will respond. Remember the meme law?

Sally Cheeseman – Aloha! Hawaii Real Estate and Relocation Blog

Neal Bloom - Weston Florida Real Estate Blog

Linda Scanlan – Fort Worth Real Estate

Maureen Henry – Home Staging Rockland County NY

Jeff Belonger – Mortgage Knowledge at Its BEST

Sharon Simms – Real Estate Musings from St. Pete, Florida

Lenn Harley – Lenn Harley, Broker, Homefinders.com in Maryland and Virginia

Kelly Sibilsky – Lake Zurich Illinois Real Estate

What IS the real estate world coming to?

You bet. There are tons of predictions floating around, and everyone wants to know:

• will my house sell?
  
  • When will the market hit bottom?
    
    • Should I buy or sell now or wait?

Whether you believe in the power of St. Joseph to sell your home, wish your REALTOR had a crystal ball, or are one of many folks who consult psychics on a variety of subjects, predictions seem to be the mainstay of our housing market these days.

Read more about a growing trend.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

You have signed on with an agent (either for listing your home OR helping you find a home in your new location) and all of a sudden you find out your agent is leaving town.

Perhaps you are asking yourself "What do I do?"

Well, as you might expect I have a few thoughts on this. Given my own obsessiveness (and the fact that I am not particularly good about taking time for myself and avoiding the phone or email), maybe I am not the best one to give advice. But having been through the seller and buyer side as few times before becoming an agent, and also how I handle my own business, I wanted to share some thoughts.

While this may be a little late if you are already hooked up with someone, I recommend finding out how your agent will handle time off, vacations, etc. It is not reasonable to expect that your agent will be available 24/7 - are YOU? But there should be some allowances for how to handle those times when you need help and your agent is on a well-deserved vacation or needs to handle a family emergency, whether it is a colleague or their broker. They should have some sort of coverage or contingency plan, and you need to know who that will be, how to get in touch with them, etc.

I would strongly encourage you to bring up the subject if they do not. Believe it or not, I know folks who have been working with an agent who leaves town and they have no idea where the agent is, when they will return, or how to deal with things until their agent is back. I have had buyers call me for help because THEIR agent is out of town. Hmmm, whose client ARE you? Do they not respect you enough to make sure you have help finding a home while they are gone, particularly if timing is an issue such as a relocation, or handling your listing in their absence?

Setting expectations is important for both parties. You need to know what to expect in terms of their availability, but they do as well. If you decide to leave the area your agent needs to know so they can reach you if needed. What if you get an offer on your home? Or if the offer you submitted gets countered, or accepted?

Finding out what more of communication is best is a good idea. Will they be able to access email and will they? Is there a phone number that you can use if their cell does not work? And if their coverage will be taking over in their absence you need to have their contact information, and they need yours.

Pretty simple stuff, actually. But surprisingly many are taken aback when confronted with these situations and plans are not in place to deal with absences. Make sure YOU know what to expect and how to get the assistance you need.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

A couple of years ago blogging was almost an unknown, certainly not common knowledge.

Some agents and other real estate professional were involved but not to the extent we see today. Similarly, use of the Internet by buyers and sellers continues to grow dramatically – it is hard to find a consumer who isn’t searching for homes, and learning about real estate and agents, on-line.

Real estate professionals, as well, derive many advantages in their blogging for consumers. Those of you who blog regularly know this; those who don’t (but you are reading this, right?), listen up!

Read the full article here with all the 9 advantages of blogging for YOU, the buyer or seller.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler

Selling your Carlsbad home is a challenge. And you want to know that the REALTOR you hire will get the job done. Of course I am assuming that you have priced the home to sell, since we know that no matter how much marketing you do, an overpriced home will not sell.

Read: What’s Important to You as a Seller?

This is not so much about how to go about finding the right agent, but more about what will the listing agent do for you.

Read: What do You Want to Know About Your Agent?

Also: What Kind of Agent do You Want?

There are many strategies a listing agent can employ in order to help you find the right buyer for your home. The operative word here is CAN: some agents take the easy (or lazy) way and do the minimal work needed to get a home sold, or don't have a clue about Internet marketing where most of today's buyers are.

Gaining the maximum exposure in today market is critical since there is so much competition. Buyers are being picky and are not willing to pay more than what they perceive market value to be. So, to reiterate…PRICING is the most important thing you can do to sell your home. And of course your home will be free of clutter and personal items (i.e., staged), and repairs will have been taken care of. Assuming that is on target, then, what sorts of things might you expect the agent you are considering hiring to provide you with regarding to marketing and advertising?

• Standard offerings
  • listing in the MLS – accurate information, no typos hopefully, and lots of high quality photos
  • signage in the yard
  • attractive feature sheet in the house and in a brochure box (there is some debate about the brochure box)
  • An ad in the local newspaper, an open house or two (or perhaps one every weekend – hmm, is that what you really want, given we know few homes sell this way?) and broker caravan
• Other offerings
  • Single site webpage or blog (see 6547 Calle Valperizo for an example of a blog I am using for my newest listing)
  • Unique URL for YOUR home (see above)
  • Virtual tours – these are easy to do and pretty common, yet lots of agents DON’T use them…and buyers say they WANT to see them. Here’s an example.

• Written marketing plan – many agents do not have one and look at you like a deer in the headlights if you ask to see one. How do you know what they plan to do to target market YOUR home?
• Lots of photos – buyers tell us they WANT to see photos, lots of them. Some buyers will not even look at a listing that has no photos…and many don’t. Here is an example of a slide show of a recent listing of mine.
• On-line flyers and postings on multiple websites – here is a Vflyer for my latest listing. This gets posted on multiple sites. And there are dozens and dozens of real estate website where your listing should be (Trulia, Realtor.com, Zillow are just a few of the big name ones that get the most Internet traffic).

• Video – is there a video of the home, or better yet the community? Here is an example I did.
  

There’s more, but you get the idea. Don’t short change yourself. Selling your home is TOO important, if you are really serious about it.

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If I can provide more information about Carlsbad or surrounding communities, and the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

Area schools are often one of the major criteria buyers are concerned about when searching for a new Carlsbad home (and elsewhere), and it’s not only those with school-age children.

This is particularly important for those who are relocating and are not familiar with the schools in the community. So how do you find out about the schools in the communities you are thinking about for your new home?

You can read more here about School Digger, School Matters, School Data Direct, and Great Schools.

***********************

If I can provide more information about this community or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360
or email me at JDowler@remax.net.

In today’s market it is not unusual for sellers who are relocating, especially for a new job, to reach a point where they NEED to move to the new location but still have not sold their current home.

How can you best handle this situation, and protect your investment?

1. Discuss the situation with your REALTOR and reach an agreement regarding him/her checking the house regularly, especially after bad weather (say, at lest once per week or more). They ought to do this without you asking but better to be sure.
2. Entrust a good friend or neighbor with a key to also check in, in case your REALTOR gets busy and is not available, or forgets to check in. Have them check the bathrooms in case they have been used by folks touring the home, and watch for leaky pipes and sinks. They can also check the heat and AC in case buyers or agents turn them on and forget to turn them off.
3. Turn off the water to the washer if there is one in the house.
4. Keep the utilities – yes, it will cost a little, but it is not impressive to show a home without a any lights, especially on a cloudy day or in the evenings. And if it’s the cold season you do not want the temperature in your home to go too low – pipes could freeze, and it’s an annoyance for buyers who are touring your home.