by Gagner | Feb 16, 2013 | Uncategorized
As in most aspects of our lives, giving buyers a great first impression is critical when selling your Cambrian home. It can mean the difference of receiving multiple offers for your house or no offers at all. The good news is there are small repairs and items which can easily be done to add significant value. Let’s look at a few of the more common fixes and upgrades that leave great 1st impressions. For starters, the overall look of the home from the street can either keep the prospective buyer in their car OR excited to come in and see more. That means your yard should be clean of debris, lawn mowed and landscaping pruned and neat. Dark bark and some fresh flowers in the flower beds add color and an impression of a newly updated home. Park any cars in the garage or on the street, and pick-up any clutter that gives an un-kept look. Fixing or replacing gutters that are in poor condition, a new coat of paint and even replacing old garage doors are small expenses compared to the additional profits you will net. Once inside the house, the same basic issues apply. Keep all rooms in the house reasonably clean and uncluttered. Remove items like pictures and knick knacks that have personal meaning. The idea is for the buyer to envision himself or herself living in the home. Again, larger items like fresh paint and new carpeting can give the house a remodeled smell and feel, while paying for itself several times over. The more you can get someone to put themselves in the home...
by Gagner | Feb 5, 2013 | Uncategorized
With the Cambrian (and overall Bay Area) real estate markets very hot right now, it truly is a great time to consider moving up. This means different things to different people. Perhaps you have outgrown your house and are looking for something larger or maybe a nicer neighborhood. Whatever your goals, it may be time to consider making a change for the better. Why consider moving up now? Because chances are you will get a great price for your home in today’s hot market (if priced and presented well) and mortgage interest rates are still at historic lows. To be more specific, Zillow indicates that home prices in the Cambrian Park area were up 15.8% year-over-year in Dec 2012. Interest rates for 30 year fixed mortgages are well into the 3% range for those that have good credit. So the window to buy your dream home before prices rise too high and/or interest rates start to climb is open for now. When trying to move up, it is always a balance between a strong market that provides you a good selling price for your existing home and one where the “move up” home is still affordable. I believe we are at a point where this balance is very optimal. If anything, the sales trends for Cambrian area home prices are rising faster (as a percentage) on lower priced homes than higher priced homes. Couple this balanced market with sub 4% mortgage rates, and a new home might look more affordable than ever. Of course, all of this depends on your home having equity. A discussion with an experienced realtor...
by Gagner | Feb 3, 2013 | Uncategorized
Condo markets in the Bay Area are on fire, with most “priced right” properties getting multiple offers. Real estate experts agree that people have finally begun realizing it’s less expensive to buy a condo in many areas of San Jose, such as Cambrian, than pay rent. Because of their lower cost of entry, a 25% down payment on a condo is a manageable amount of money for many to come up with. Of course, at the current rate of price appreciation, this situation may not last for very long. Since the summer, the average days on market (avg DOM) for condos in the Cambrian 95124 zip code has ranged from as little as 9 days to as much as 25 days (even thru the typically slow months of Nov and Dec). This is incredible when you think about it. On average, condos in Cambrian are basically selling the week after their 1st weekend open house. The stats are even better in Cambrian zip 95118, where the avg DOM in July was an unbelievable 6 days!!! Such demand inevitably causes bidding wars that raise prices well above list price. In 95124, selling prices above list price started in July and peaked at 107% of list in the month of August. That is pretty phenomenal until you consider condo sales in 95118, where selling prices were above asking every month of 2012, and peaking at an eye-popping 122% of list in the month of August. It all makes sense when one considers that the majority of condos in both zip codes can be fetched for between $200K-600K. Considering the central location...
by Gagner | Jan 27, 2013 | Uncategorized
For months now, the national news has been reporting that residential real estate prices have turned the corner and are rising throughout most areas of the country. Of course, real estate trends are local events, and nowhere is the rise in prices more evident than in the bay area. If you own a home in the Cambrian area of San Jose or have been considering this area, you may be surprised by the strength of the recovery. I love the Cambrian area of San Jose for many reasons, including its central location to work and play, good public schools and reasonable prices, relative to other parts of Silicon Valley. Besides the economy, this combination of factors really helps home prices over time. The positive sales trends for homes in Cambrian area began in March 2012 and have continued mostly unabated right thru the generally slower seasonal period (Oct-Dec). My intention is to provide readers with an ongoing picture of the overall Cambrian area housing market, along with specific market topics that may be of interest. Two key figures that indicate the strength of any real estate market are “average days on market” (avg DOM) and the “sale to list price ratio”. Prior to March 2012, the avg DOM in Cambrian area were well above 2 months and often pushing 3 months or more. In fact, this figure for all of San Jose was well above 3 months since the great recession began. Suddenly, beginning in March 2012, the avg DOM dropped to 40 days (95124) and 27 days (95118), and continued to mostly trend down all the way up...
by Gagner | Jan 26, 2013 | Uncategorized
You may or may not have heard about lease options. Why and when would this be a credible strategy to sell your house? We’ll discuss those concepts here. A lease-option allows a seller to sell their property when it may otherwise be difficult to sell (poor physical condition, undesirable area or neighborhood, buyer’s market, etc). In many cases, a seller can net more money when offering terms to a buyer. In addition, sellers can often avoid paying realtor sales commissions by using a lease-option agreement (as they have already found the buyer themselves). In most lease-option arrangements, the tenants agree to pay move-in “option” money that will be used for credit toward a down payment on the house. You’ll also want them to demonstrate their commitment by paying above-market rent, the “above” portion of which (10 percent and up) will be credited toward a sale. If the tenants back out of the deal at the option point — typically one to three years after move-in — you’ll get to keep those monies, which can amount to a nice little chunk of change. Another bonus is that lease-option folks are inclined to maintain a home better than conventional renters, because they have a vested interest in it. In other words, you’re less apt to suffer the dreaded “renter trashing.” Also, you get to retain the income-tax benefits of the house during the lease period and won’t have to pay taxes at all on the option money until it’s formally credited toward the house. A lease option, by the way, is not to be confused with a lease purchase, a very...
by Gagner | Jan 2, 2013 | Uncategorized
Seller financing is almost always an attractive proposition to a home buyer. This is particularly true for investors that are looking to minimize their financing costs while fixing and flipping a property. The general wisdom is that a seller can maximize their selling price with attractive terms. Seller financing generally offers the buyer the lowest cost of acquiring a given property. Why would a seller finance their own property sale? Many reasons: Make it easier and faster to sell an otherwise difficult to sell property. Seller won’t recognize capital gains until each payment is made, minimizing their tax liability Acting as a bank, the seller essentially creates an annuity, which can provide on-going funds. Maximize sales price by offering more flexible purchase terms. If funds are not immediately needed from the sale of your property, this may be a great option for you. Particularly if the interest you can charge is greater than other returns you can safely make. Think about it, IF the buyer is unable to make their payments, you can foreclose (just like a bank) and take the property back. In the meantime, you have gained the benefits of whatever interest and principal payments the buyer has made. Of course, the risk is that the buyer does not take care of the property and you end up with a house that is worth less than when you financed it. Just like a bank, you should do your due diligence on the buyer. Make sure they have a responsible payment history and reasonable credit score. Generally, people that are responsible have solid credit histories. I also recommend...
by Gagner | Dec 25, 2012 | Uncategorized
If you haven’t heard yet, most banks today are foregoing foreclosure efforts in favor of short sales. Simply put, they have finally figured out that a short sale is actually more beneficial to their bottom-line than foreclosing on a property owner. This is important to know for those people who still find themselves “under-water”. That figure still comprises over 25% of California home-owners. How do you know if a short sale is the right strategy to pursue? There are many factors involved. First, ask yourself if you need to leave your house now or can you “wait out the storm”. If you don’t need to sell your house, then why damage your credit for 3-7 years (depending on your FICO score). The answer to this question is dependent upon your circumstances and your goals over the next many years. Even if you want to leave your house, it is important to recognize that banks will only approve a short sale if the owner can show a hardship, which includes: Unemployment, loss of hours or under-employed 50+ mile job relocation Business failure Medical losses Divorce or death of spouse Increased mortgage payments The bank will also want to know if you have considered other options, such as refinance, lender workout, forbearance, loan modification and rent it. If you meet the criteria above, a short sale may be the right strategy for you. If that is the case, be prepared for a tedious process that can easily take 60-90 days or more. The length of time required to complete this process depends on the financial institution(s) involved and the complexity of...
by Gagner | Oct 30, 2012 | Sellers
The situations that home sellers find themselves in are as varied as sellers themselves. With that said, most sellers will find that using the traditional sales approach works well and helps them meet their objective of getting maximum value for their home. But there are many times when a less traditional method for selling your home might be better. Typically this is the case when a seller has another primary objective besides getting the highest offer. In this article, I will cover those situations in which a cash offer is generally the best solution. The seller that needs to move quickly often cannot wait for the process of selling their home to a buyer that requires bank financing. Buyers that are “pre-approved” still require at least 4 weeks for the bank’s final approval and funding. Further, the lending standards have become so tight that over 30% of 2012 sales transactions in CA never make it to the finish line. When this happens, the seller has to start over and the process can become painfully long. In addition, when a transaction falls thru there is typically a negative impact on the final sales price. For sellers that need to sell in less than 4 weeks, they have one choice, which is to sell to a cash investor that does not require bank approval. It’s the only way in today’s market. What about the seller that has a physically distressed property? Banks are reluctant to finance homes that are in poor condition. Whether a house is inhabitable, and thus financeable, is a subjective matter. It is important to note...
by Gagner | Oct 14, 2012 | Sellers
There are times when selling your home using the traditional approach of hiring a real estate agent might not be your best choice. It is true that a real estate agent will list your house on the MLS (multiple listing service), and therefore maximize its exposure to the market. Generally speaking, this should maximize the amount of money you can obtain for your property. So why wouldn’t this always be the best approach? To answer that question directly, let’s consider any one of the following scenarios: Your house is in disrepair and the bank is unwilling to provide a loan to your buyer. You need to move quickly and do not have time to list and show your property to the market You require very flexible terms that a “retail” buyer might not be able to provide (ie. fast close or long close, etc) You hate the hassle of keeping your house perfectly clean and having prospective buyers come thru your home for the 30-60 days required to sell You do not wish to pay a realtor the 6% commission they will charge you for selling your home These reasons and many more may be why you should consider alternatives to selling your home using the traditional sales process. For example, private investors can buy your house fast, easy and often times with no sales commissions. In addition, there are many FSBO (for sale by owner) websites which help regular folks sell their homes without paying sales commissions and on their own terms. Lastly, there are many forms of seller financing and lease-to-buy options that can be used to...
by Gagner | Oct 14, 2012 | Sellers
Are you looking to sell your house, but find your circumstances to be unusual? If so, you are not alone. We hear from sellers every day who have challenging situations where a traditional approach to selling their home just won’t work. For example, a job transfer that requires a fast move to somewhere far away, or an inherited property that is in bad disrepair, or a family situation that calls for flexible terms (ie extended close date, rent back,,etc.). As discussed in my previous blog, private investors serve a purpose to help in these and many other “unusual” circumstances. Share your goals, and in most cases a solution can be found. The beauty of working with private investors is that they can generally offer the flexibility and creativity needed to help you solve your problem. But be careful, because not all investors are created equal. Besides obvious factors like experience and money (both critical to providing a successful solution), there are other factors that will either help you or hurt you. Does the investor have a team of people that will help him or her execute a smooth transaction? How experienced is their team? Does the investor have a consistent track record of following thru and closing on all their transactions, or do they let small hurdles become large hurdles? In other words, how willing are they to work with you if new challenges arise? What about their quiver of tools to give you choices and help you solve any problem? Perfect examples are seller financing, sale lease-back options and rent-to-own solutions. These might not be right for you,...
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