You've lassoed your bank! Now don't get stuck with the "bull!"

 Short Sale Strategies for Sellers and their Agents

Getting your short sale approved is irrelevant...

...if it doesn't close!

The seller found a buyer! The buyer found a seller!  We're in contract!  

Fantastic! Just make sure that you don't leave yourself with a bunch of bull in the process!

Walking into Starbucks or _______________ (fill in the blank) I continually hear "My house got foreclosed on! I thought the short sale was going to go through, but it didn't!"

After processing short-sales for several years I've seen quite a bit!  Have I seen it all?  Nope! Nobody has, but these tips will not only help sellers get their homes sold, but from the other side will help buyers write offers strong enough that even with a soft listing agent you'll have an excellent chance of holding the keys to your new home at the end of it all!

Here are a few common situations that buyers, sellers, and their agents unnecessarily encounter far too often:

• Our buyer had written several offers and 'forgot' to tell us that they bought another house two weeks ago.
• When our short sale got approved, the buyers no longer wanted the property.  When we re-listed it, it was too close to the trustee sale date to get it closed.
• I think my real estate agent wasn't giving all my updated information to the bank in a timely manner.
• We got approval from both lenders, but when the buyer did his inspections a few things turned up that he wasn't willing to fix, and I certainly couldn't afford to fix it! (or it was an FHA buyer who wasn't able to make necessary repairs to close) so it foreclosed.
• The first loan said yes but the 2nd lender wanted too much to close.  The second just wouldn't cooperate.
• ...and on and on.

PLEASE, I implore you...
if you're going to write an offer on a short sale OR your are listing your home as a short sale...use an expert!

So let's get to the punch!  How can you best avoid having your short sale...fall short?

1. SELLER - Make your initial submission of your short sale packet P E R F E C T ! ! ! ! It will show the negotiator or single point of contact that you and your agent are ON IT!  These folks are people too, and making their lives easier will in turn make yours easier too!
2. SELLER - Keep in contact with your lender(s). If you KNOW that your Realtor is phenomenally successful at the short sale process, good for you!  You've got a real pro who cares and will follow through, good for you!  If you aren't   absolutely certain, advocate for yourselves. Keep in direct contact with your lender.  You may find that the bank is waiting for documentation that your agent never even asked you for.  I call all lenders...on all short sale listings...every Tuesday and Friday morning.  I do this regardless of how 'dialed in' the negotiator is.  It's happened more than several times where my single point of contact, "um...yea...she doesn't work here anymore!"  You want to know this NOW, not a month down the road.
3. SELLER - After your property has an offer that you agree to, list the property as "Pending, show for backup offers" not "Pending Subject to Lender Approval."  It's smart to keep at least one strong backup offer in the bull pen; two would be better.  As you get close to estimated close of escrow, make sure that your backup buyer is still interested.  If not...get another backup 'warmed up'. This eliminates a time gap in the event that your first buyer backs out.  
4. SELLER & BUYER - Make contingency periods start the day that the offer is accepted by the seller rather than approved by the lender. As a seller, you know your buyer is vested.  Does the buyer want it?  Then inspect it, or don't...but release all contingencies within 17 days of contract date. If your buyer isn't willing to do this, in this market, get a new buyer who is. As a buyer, the bank and your seller sees that you're willing to 'ride it out'.  Why wait until two weeks before your auction date to start inspections. Show them that you're the right buyer during the offer process and you'll have a higher likelihood of having your offer accepted.
5. SELLER & BUYER - Deposit earnest money deposit into escrow within 3 days of accepting the offer. This again shows both sides, and the bank that you're all vested in getting this closed. 
6. SELLER & BUYER - Make sure that your property is listed for sale "As Is."  Unless you have a unique circumstance, you're not going to want to make repairs on a house with which you stand to net $0 at close. As a buyer, don't expect your offer to be accepted with the expectation that concerns discovered upon inspection are going to be remedied by the seller.  Write it up "AS IS" even if the seller isn't asking you to.  Do your inspections.  If you don't want to continue after inspections, that's your safety net. Use it!
7. SELLER - If your short sale is fully approved, make sure to follow up with the buyer's agent regularly that the loan process is going as planned.  You don't want to find out that your buyer thought it would be funding in time but the lender (all of whom seem to be grossly understaffed at this point) dropped the ball and now you're facing foreclosure.
8. SELLER  - BUYER - Don't hesitate to contact me to discuss a possible short sale or if you are upside down or having other financial difficulties  Click here if you have any questions.

Updated market trends to come...

As always, I'll leave you with a little taste of wisdom:

“Trust is the glue of life. It's the most essential ingredient in effective communication. It's the foundational principle that holds all relationships.” 

― Stephen R. Covey

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Short Sale 101: BTW...What is a short sale anyway?

When you're up to your elbows in jargon, idioms, and the practical vocabulary of any specific industry, you can forget the fact that not everyone on earth knows what you're talking about.  So here's a bit of an introduction to short sales for those of you who are (rightly so) confused about the terms and ideas you may hear around the water cooler.

What is a short sale?
A short sale is a sale of real property (typically your house) from which proceeds are less than the balance of debts secured by liens (your mortgage or mortgages) against the property. If the property owner cannot (or isn't willing to) afford to completely repay the liens, and the lien holder(s) agrees to release it's lien on the property and accept less than the amount owed on the note, you have an approved short sale.

If it was that simple, they'd all be done and gone.  The short sale process is certainly not that simple...nor that easy. Although short sales have been part of the real estate industry forever, they can be quite complicated.  Today's real estate market, still heavily weighted with short sales, demands a much, MUCH higher level of expertise than in the past.  It is your agent's job to keep you informed, advised, and most of all protected.  If you don't think you're receiving that level of service...fire them!

I've seen many, many homes that should have closed as a short sale (or short pay transaction) not get approved, ultimately resulting in the foreclosure of the listed property.  There are far too many people I've bumped into over the last few months who've obviously had their short-sales mishandled. This failure to close  and subsequent foreclosure is often accompanied by buckets full of heart-ache and resentment by all parties involved.   After your deal is botched is NOT the time to start asking questions.  That's why I'm here.  Click here to e-mail me a questions directly.

• What is a short sale
• Banks -vs- Investors
• Why do banks take so long to approve the seemingly misnamed "Short Sale?"

First let me start out by reiterating very crudely and simply that a short sale is when a property is sold at a price that leaves the seller "short" on funds to close.  Example: The seller's mortgage balance is $655,000 but the home's current market value is $415,000.  There's a $240,000 deficiency which makes this a short sale; a sale short of the balance of the debt.

Secondly, let's clear up the difference between a "Bank" and an "Investor".  B of A, Chase, Citi, Wells Fargo.or J.P. What's his name...(whatever name they've slapped on the front of your branch at the local strip mall)...may or may not be the investor behind your mortgage(s).  These enormous multinational corporations 'service" the loan for the investors.  Who are the investors?  You've got a better chance of having a dinner on Beale St. with the Elvis than ever learning who the investors are.  OH...but if you did...your debt would probably be sold to another 'investor' before you got approval for the servicing bank anyway.  It's best to just drop it.  Do what the servicing bank says, do it now, and do it right the first time.  The bank will, in turn, smile and move things along smoothly.

Lastly, a short sale is a complete misnomer.  They are typically not short.  That said, I've have them approved in as few as 8 days, and as long as several months.  The length of time it takes for approval depends on many things including the competency and speed of the following:

• The listing agent
• Possible third party negotiators
• The servicing banks' document collectors
• Your single point of contact at each bank
• The time it takes for internal approval
• The time it takes for final review and a decision by the investors
• Possible counter offers
• Changes on HUD statements from Title
• and on and on and on.

These are just a few thoughts that will help you get up to speed with the terms and complex nature of the short sale process.  With all of this in mind, remember this: Getting your short sale approved is completely irrelevant if you can't get it to close!

Tips and Strategies for getting your short sale to close will follow this post.

As always, I'll leave you with a little taste of wisdom:

“You will get all you want in life, if you help enough other people get what they want.”

~ Zig Ziglar RIP

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

California Homeowners Bill of Rights: A small victory for the underdog!

Happier New Year to come?

Kamala Harris, our State's Attorney General really does seem to be fighting against the monster banks on behalf of the citizens of California!

The Homeowner Bill of Rights builds upon and extends reforms first negotiated in the recent national mortgage settlement between 49 states and leading lenders. Attorney General Harris secured up to $18 billion for California homeowners in that agreement, and has also built a Mortgage Fraud Strike Force to investigate crime and fraud associated with mortgages and foreclosures.

“The California Homeowner Bill of Rights will give struggling homeowners a fighting shot to keep their home,” said Attorney General Harris. “This legislation will make the mortgage and foreclosure process more fair and transparent, which will benefit homeowners, their community, and the housing market as a whole.”

The Homeowner Bill of Rights goes into effect on January 1, 2013.

More than one million California homes were lost to foreclosure between 2008 and 2011—with an additional 700,000 currently in the foreclosure pipeline. 

• Seven of the nation’s 10 hardest-hit cities by foreclosure rate in 2011 were in California.

The California Homeowner Bill of Rights marks the third step in Attorney General Harris’ response to the state’s foreclosure and mortgage crisis. 

1. The first step was to create the Mortgage Fraud Strike Force, which has been investigating and prosecuting misconduct at all stages of the mortgage process. 
2. The second step was to extract a commitment from the nation’s five largest banks of an estimated $18 billion for California borrowers. The settlementcontained thoughtful reforms but are only applicable for three years, and only to loans serviced by the settling banks.
3. The California Bill of Rights

Two key bills of the Homeowner Bill of Rights contain significant mortgage and foreclosure reforms. The major provisions of AB 278 (Eng/Feuer/Mitchell) and SB 900 (Leno/Corbett/DeSaulnier/Evans) include:

·                     Dual track foreclosure ban: Benefit ~ Mortgage servicers will be required to render a decision on a loan modification application before advancing the foreclosure process by filing a notice of default or notice of sale, or by conducting a trustee’s sale. The foreclosure process is essentially paused upon the completion of a loan modification application for the duration of the lender’s review of that application.

·                     Single point of contact: Benefit ~ Mortgage servicers will be required to designate a “single point of contact” for borrowers who are potentially eligible for a federal or proprietary loan modification application. The single point of contact is an individual or team with knowledge of the borrower’s status and foreclosure prevention alternatives, access to decision makers, and the responsibility to coordinate the flow of documentation between borrower and mortgage servicer.

·                     Enforceability: Borrowers will have authority to seek redress of “material” violations of the California Homeowner Bill of Rights. Injunctive relief will be available prior to a foreclosure sale and recovery of damages will be available following a sale.

·                     Verification of documents: The recording and filing of multiple unverified documents will be subject to a civil penalty of up to $7,500 per loan in an action brought by a civil prosecutor. Enforcement will also be allowed under a violator’s licensing statute by the Department of Corporations, Department of Real Estate or Department of Financial Institution.

The content of this blog was pulled 

directly from the Office of the Attorney General 

website which is a fantastic resource.

As always, I'll leave you with this taste of wisdom:

"Any intelligent fool can make this bigger, more complex, and more violent. It takes a touch of genius, and a lot of courage to move in the opposite direction."

~ Albert Einstein

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Only 34 active homes for sale in Oakley! + Listings for East County Properties and Beyond

If you're doing a little 'window shopping' for a home in Oakley, Brentwood, Discovery Bay, or beyond...

...why not start here!

Fetured Property - 70 Vella Circle, Oakley, CA

Offered at $249,900, this 'traditional' sale won't burden you with drama from big banks, negotiators, or short-sale delays.  Simply make an offer, and we'll give you our respectful a realistic response in a timely fashion.

This 4 bedroom property was built in 2006 and shows little to no wear.  At 1908 sq. ft., you'll enjoy the benefit of fantastically large family and living areas without the fantastically large utility bills that often accompany the many homes of today.

Click here to see the complete listing:
Click here with any Real Esate related questions, to schedule a showing, or to discuss the details of a potential offer:

Now for a little browsing ; )

Below are links to homes currently on the market in the areas I most frequently service:

Homes in Oakley
Homes in Brentwood
Homes in Discovery Bay
Homes in Alamo
Homes in Walnut Creek

As always, I'll leave you with this taste of wisdom:

“The best way to predict the future is to create it.”
–Dr. Forrest C. Shaklee

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

WAIT!!! "Back Up" to go forward?: How to get your offers accepted!

Are your offers still being rejected?

Submitting a backup offer

 is far more effective that most buyers and agents think.  

It's certainly easier than "backing up" a trailer full of rhinos!

First, for those interested, here are active real estate listings (as of noon on Voting Day! 11.6.12) in the four areas I service most often:

Real EstateListings in Brentwood, CA

Real EstateListings in Walnut Creek, CA

Real EstateListings in Alamo, CA

Real EstateListings in Oakley, CA

These listings INCLUDE properties listed as “Pending, Show For Backup Offers”.  Including these “PSLA” listings increases your likelihood of having an offer accepted as many, many Realtors don’t bother to write ‘back-up offers’.  Fewer agents writing back-ups = less competition. That means more happy buyers for me! 

Do back up offers actually work?  If you’ve read my previous posts, you know that there’s no crystal ball.  With that in mind, backup offers are only awarded a contract…IF YOU WRITE THEM!  So I do!  Even if the listing agent isn’t ‘accepting’ backup offers, push for it anyway.  There are hundreds and hundreds of investors writing a dozen offers each week hoping to get themselves a couple of strong income properties.  Yes, unethically, many of the agents for these buyer's agents don’t disclose that they’re writing offers on more than one property.  So when one or two of the offers are accepted and actually close escrow, the other deals that are in escrow “Fall Out”  of escrow. Typically the listing agent frantically lists the property as “Back On Market”!  If your offer had been in place, in back-up position, then you would be in escrow.  Does it happen?  Let’s see…

Properties listed as "BOM" in the areas I service: Click Here to see 7 homes listed as Back On Market including a phenomenal $1,000,000 listing at 3885 Arbolado Drive, Walnut Creek; nestled between Mt. Diablo and the Boundary Oak Golf Course. 

Additional tips to help get your real estate offer accepted:

• Do your best to truly understand the seller's motivation.
• Demonstrate to the seller that you are not just willing, but able to close
• Offer the right price
• Offer your maximum down payment
• Offer to close quickly
• Put your money into escrow prior to approval on a short-sale offer
•  Limit Contingencies
• Offer a Significant Earnest Money Deposit
•  Write a personal letter.
•  Hand deliver your offer to the listing agent
•  Accommodate the sellers Close of Escrow Period
• If you don't NEED closing costs covered, don't ask
•  Submit an as-is addendum
• Ask if you can submit a back-up
• NEVER count out negotiation with a builder

As always, I'll leave you with this taste of wisdom:

" Be the change that you wish to see in the world."

 ― Mahatma Gandhi

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

We're buying what we can, rather than what we need, and it's gonna cost us again!

What is the cost of peace? 

 

Ask a Buddhist monk. There is no price.  

It appears, regardless of how much digging I do, that the real estate market is truly recovering.  At this point in the time, many of us have 'learned our lesson' having overextended ourselves. We've paid the price, financially as well as emotionally. In fact, we didn't just buy our dream home...we had encumbered our peace.  So what now?  

Right now, tens of thousands of people throughout the US are ready and eager to re-enter the real estate market.  So, buyers talk to lenders, determine how much they can afford, then start shopping for their new home.  Lenders are looking at, among other things, the buyers "ratio".   

Debt to income ratio is just that; a ratio or percentage of income that will go toward debt after a mortgage loan is funded.  For example, a buyer's income is $5,000 per month.  If, including the new mortgage payment, the buyers monthly debt is $2,500 the 'ratio' is 50%.  Personally, I have a 'magic number' that gives me peace.  That number is a number that is much, much lower than most others. I'm suggesting an alternate point of view.  Don't buy what you can afford! Buy what you need, and with that...your peace of mind.

Various mortgage programs, interest rates, etc. are determined in part by this ratio.  So what?  What does this have to do with peace, needs, and wants?  Just this: Lenders approve loan applications to a limit at which they feel comfortable that a client will be able to repay the debt.  There is one world in that sentence that doesn't really jump out, but it really needs to, and that is limit.  So buyers start looking for a home at or near their limit!  They then determine which home, at or near their economic threshold, would be best.  In my eyes, that process or sequence is backward.  Let's try something new:

1. Talk, listen, think, and determine what features you need in a home.  
2. Differentiate what you need from what you want or would 'like to have'.  
3. WRITE IT DOWN! It's simple: Must Have vs. May Have. Writing helps to distill your thoughts. 
4. Get with a lender that you trust. Learn what you qualify for. Set your budget. Stick to it.
5. Go buy your home. 

You may discover that by sticking with what you need...you can move into the neighborhood that you love.

You may discover that by sticking with what you need...you can afford to have your spouse work less.

You may discover that by sticking with what you need...you can afford...your home!

Just because you CAN buy at a certain price point; just because you CAN afford a particular monthly payment doesn't mean that you should.  In my list of needs vs. wants, peace and security are at the top. After that, I start thinkin' about bedrooms, bathrooms, and living space.

I'll leave you with these little tastes of wisdom:

“It is the preoccupation with possessions, more than anything else that prevents us from living freely and nobly.” 

― Bertrand Russell

“Normal is getting dressed in clothes that you buy for work and driving through traffic in a car that you are still paying for - in order to get to the job you need to pay for the clothes and the car, and the house you leave vacant all day so you can afford to live in it.” 

― Ellen Goodman

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

 

How can I get my real estate offer accepted?

How can I get my offer accepted?

15 Strategies to getting your offer accepted!

The plight of today's buyers: "I'm just so tired of submitting offers that never get accepted!"

Are you making the wrong offer?  Are you working with an ineffective Realtor? Both?  I will stand by these words:  "If you're willing to write your very strongest offer (note that I didn't say 'highest' offer) the first time, and your Realtor is ethical, diligent, and thorough, you WILL have an offer accepted." Don't give up.

How to:

1. The most outside the box strategy used to be the ONLY strategy.  Ask your Realtor to hand deliver your offer!  It's really easy to ignore an e-mail, phone call, or text message.  It's much harder to ignore a human being; one who's gone above and beyond.
2. Do your best to truly understand the seller's motivation. Price isn't always king! Neither is cash; especially in short sale situations where the seller may stand to net zero out of the deal. To the seller, knowing that he/she had some influence over who's ultimately going to live in the property, might be the determining factor.
3. Demonstrate to the seller that you are not just willing, but able to close Include bank statements, or Proof of Funds to Close with your offer.
4. Offer the right price and back it up with Market Data. With more traditional sales closing, price may not be the most important factor for the sellers. Can you close more quickly? Are you willing to extend escrow in order to accommodate the sellers' circumstance? Will you do a rent-back for your seller?
5. Offer your maximum down payment.  If you're writing an FHA offer, perhaps you can put 5% down rather than the typical 3.5%.  Writing Conventional? Can you put 25 or 30% down?  
6. Offer to close quickly. Ask you lender if he/she can perform quickly.  With all else the same, a buyer will typically accept the offer with the shortest time to close.  It shows your commitment and eagerness to perform. 
7. Limit Contingencies. with this caveat: Protect yourself first, aggressively pursue the property second.  A contingency on a contract may make a seller nervous. However, you may be able to shorten your inspection contingency period, from 17 days, to 15...or to 10.  If your agent is proactive, he/she may be able to line up inspectors in advance, thus not necessitating the entire 17 day contingency release period.
8. Offer a Significant Earnest Money Deposit. This can be up to your entire down-payment.   Remember, it's not at risk until you release all contingencies, but it might show the seller a level of commitment that no other prospective buyers are willing to (or even thought to) show.
9. Write a personal letter. Seriously! More often than not, there is a human being on the other side of this transaction. Expressing, in writing, why it's important that your offer is accepted may be the deciding factor. This is the "get off the pot" clause.  You may be spending a half a million dollars or more on a home.  Step up!  Put in the 12 minutes it might take to draft this letter, even it you have to do it 3 or 4 times.
10. Escrow Period. "We're willing to wait if you accept our offer now!" "We can close our FHA loan in 21 days if that would help!"
11. If you don't NEED closing costs covered, don't ask. Previously, agents could ask for closing costs very easily and could even raise the asking price to cover the additional credit.  However, as values continue to rise, a home might not appraise if you add your closing cost credit into the price!
12. Submit an as-is addendum. If you're willing to buy a property truly as is, let the sellers' know up front.
13. Ask if you can submit a back-up. Can't even find an "Active" property that suits your needs? To me, every property is active, even if it's not on the market at all.  Ask your Realtor to see if you might be able to submit a back-up offer even if MLS doesn't say you "can."
14. Put your money into escrow prior to approval on a short-sale offer. Showing the listing agent that you're willing to put your deposit money into escrow demonstrates yet another level of commitment. Remember: your funds are not at risk until you've removed all contingencies.
15. NEVER count out negotiation with a builder.

• Even if you don't "feel" that a new home is right, don't leave yourself in a position where you look back a year later and think, "Wow, we could have lived here!"
• Another caveat: Don't go into the builder's sales office unarmed.  Although I work with builders very, very often and have huge respect for virtually all of them, it costs you nothing to have your Realtor register you and to have him or her negotiate on your behalf.  Imagine if you could have a "Professional Auto Negotiator" with you when you buy your next car...at no extra charge!  That's the circumstance with builders.  Those of us who close many deals in new construction understand the process thoroughly; know what to watch out for; know what the builders might think is ridiculous; get the deals done. 
• A Realtor's commission from the sale of a new home typically comes from the corporations ad budget, not from the price of the house.

" It doesn't take sharp eyes to see the sun and the moon, nor does it take sharp ears to hear the thunderclap. Wisdom is not obvious. You must see the subtle and notice the hidden to be victorious"

 ~ Sun Zu

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

BUYERS - Stick to your guns: Egos -vs- Experience

Are we all mad...

...or have we learned our lessons?

Yes, here it is!  I don't often show it...but I do have one! 

TA DA!  My soap box!

I continue to bite my tongue when the conversation about "what we really need" arises.  Our collective lives seem to have become luxury-necessary.

• We need a flat screen in every room.
• We all need a German built, leather clad SUV with more technology than the Star Ship Enterprise...only slightly bigger!
• We work so hard that we need both of our time shares!

Now please don't think for a minute that I don't "want" for more too.  I do, and I'll continue to work hard for it.  But with that in mind, I most certainly have learned my lessons over the last 8 years. (Since the market took a dump!)  Now, however, I'm starting to see folks falling right into the same old patterns of over extending, and our fine lending institutions are standing at attention, waiting to oblige.

Today, via industry junk mail, I received a solicitation for Stated Income Mortgages!  In simple terms, that means, "Honestly Mrs. Banker...I make $250,000 per year! Will you lend me more than I can afford?...PLEASE?"  Bingo!  Here's your mortgage!

Today, I also heard another in a long line of commercials from our auto industry, handing out sub-prime auto loans.  0% interest?  How do a lender make any money on 0% interest?  Easy!  Your new Ford pick-up cost $55,000!  There's enough margin in that transaction to cover commissions, overhead, profit, and to subsidize your loan!  Seriously though, who can even afford a car payment when you 5 year loan payments are $1,100 per month?  Ask and you shall receive!  At 0% interest, why not stretch that payment out over 7 years...or let's just do 10!  OR, I'm no longer going to make my mortgage payment anyway...so now I can make that huge car payment more comfortably!

Helpful Tips for Home Buyers:
Don't let the moment or our always encroaching egos sway you from standing firm on tried and true home buying strategies.

• Identify and write down your needs
• Identify and write down your wants
• If you need a 4 bedroom house because you need three rooms and an office...you don't need a 4 bedroom home! You need a 3 bedroom home with an office/den/loft etc.
• KNOW THE DIFFERENCE
• Know your budget, including:
• Closing Costs
• Principle Payment
• Interest Payments
• Property Taxes PLUS Assessments/Mello Roos
• Hazard or Homeowners Insurance
• PMI (Private Mortgage Insurance) on some loans
• Ask your agent if homes in your area are closing at, below, or above asking price.
• GET LOCKED INTO A LOW INTEREST, FIXED RATE, 30 YEAR (or less) LOAN
• In this market, ALWAYS bring your best offer.  You may not have time to make another.
• Do your inspections!
• Don't not do your inspections!  ;  )
• If you're stuck in a situation where you continue to submit offers and still can't get one accepted, CALL ME!  There's something wrong.  I have effective strategies that help get offers accepted.  If you're working with another agent, have that agent ring me.  I'm always happy to share.  I learn from many agents and I'm sure some can learn from me!
• Don't forget to look at new homes, with one caveat: E-mail me, call me, or send smoke signals before you go.  In 2011, 35% of my business was in new constructions.  Leveraging that experience and those relationships to your benefit can save you tens of thousands of dollars, but costs you not a cent.  Typically my commission will come from a separate line item within a marketing budget rather than having it tied directly to the home in contract.  BUT....if you register with the builder before you call me I can no longer act as your advocate; your negotiator.

Owning a home ought to be a joy.  Over the past ten years or so, it's more often become a nightmare.  Learn from our societal mistakes. 

• Have a plan!  
• Know what you need.  
• Know why. 
• Stick with your plan!

" 

Wisdom comes from experience. Experience comes from making mistakes.

"

 ~ Unknown

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

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Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.