Michael Roberts' Blog -San Jose Homes, Real Estate and Houses for Sale

Myth #1:  Buyers agents want you to pay more to get a higher commission.

Wrong. The value of the home has to meet the lenders appraisal.  If it doesn’t meet the lender’s appraisal the mortgage loan won’t get  approved.  The seller, having now expected a higher price,  will be disappointed having to  accept a lower offer.    Your agent wont get paid and you don’t get the home because the seller becomes uncertain and reluctant.   It is always better to make a reasonable market wise offer that has potential for negotiating, especially if there are multiple offers.

Myth #2:   Listing agents want you to accept any offer quickly so they can get paid.

Wrong. If you are provided a Market Analysis then you should know the current market price.   This puts you in the driver’s seat to consider only those offers that are reasonable.  Most listing agents want you to get the most for your home. That allows them bragging rights to gain more listings.   Simply ask for a new market survey to give you comfort in support of accepting an offer for your home.

Myth #3:  All agents conspire against their buyers/sellers to get a sale.

Wrong. While they are sales persons, they have a fiduciary responsibility to show good care and ”Realtors” abide by a strict code of ethics.   The best agents enjoy the art of negotiation (fighting for their client). It’s in their DNA to win and only win- losing sucks.   However, every industry and market sector have their bad apples and Real Estate is not immune from worms.   Always ask for at least 3 referrals from an agent’s past clients, call them and you will know if your agent really cares about you.

Myth #4:  Foreclosures are the best deals.

Wrong. While buying a foreclosure feels like a great deal they really aren’t.   There are inherent issues with foreclosures that price alone does not overcome.   In today’s volatile market foreclosures are often found in distressed areas.  Location is still the number one factor in home value.  Historically distressed areas reduce the upside potential. If the home is below market now it will likely be below market when you want to sell.    Not to mention the number of potential hidden conditions that are not readily identified or disclosed.   Be sure to have a thorough property inspection from a reputable inspection company, analyze every value factor and consider future upgrade costs that will meet the neighborhood standard.

Myth #5: Making a cash offer is better than one with a mortgage loan.

Wrong. The process of escrow still remains.   While a cash offer can close escrow in a short 21 day period, an offer with lending can close in the same period or within 30 days, typically.   The seller still gets cash in the end so, waiting an extra week or two and sell for a higher price trumps a cash offer.

Myth #6:  Having an Open House will sell your home.

Wrong: Having an open house does not sell your home 99% of the time.    Statistics show that only 1% of homes sold actually sold from  having an open house.    With so many internet sites providing virtual tours and numerous pictures more and more buyers pass on spending the time to visit an open house. An open house does allow all the neighborhood looky loos and wannabe buyers to traipse through your home.   Serious buyers  will call an agent to schedule a private tour.   Great Pictures, a Virtual Tour and a liberal showing schedule will sell your home 100% of the time.

Myth #7:  Short Sales are a waste of time.

Wrong. If the best home that suits you is a short sale then it is never a waste of time.    Agents often refer to short sales as a waste of time because it takes so long to close the sale.   Waiting an extra month or two to get the perfect home is worth every delay. Buying Real Estate should always be done in a patient and thoughtful manner.  Hire an experienced Realtor who has a track record in all types of sales to help overcome foreseeable delays.

Myth #8:  Making a low ball offer for your primary home is the best way to get a deal.

Wrong. When you have identified a home that you want make an offer that is market worthy, at least. Low ball offers always create an adversarial environment and will cause your offer to be rejected out of hand. Low ball offers are best suited for investment property strategies where the outcome is based solely on numbers and not where you want to live. Offers that will initiate some negotiation are far wiser and more successful.

Myth #9:   Listing my home at the highest price leaves room for negotiation.

Wrong. Buyers search for homes in specific price ranges.   If you would accept a lower price then list it closer to that price where more buyers will find it. Listing your home at the highest price reduces the number of buyers that will consider making an offer. Most buyers search for homes priced below what they actually qualify for.  Price your home competitively to increase your pool of buyers and encourage multiple offers.

Myth #10:  If one Agent is good two is better.

Wrong. Trust is more important than pitting one against another.  Partnering with a trusted professional will always prove to be more beneficial.  A full time committed Realtor will present guidance and opportunities not found if you waste their time.   Interviewing a few recommended Realtors and committing to one will prove to be more advantageous to you.

Can we be of assistance to you?  Please let us know.

An attractive short sale Home for sale in Los Gatos is getting a lot of attention this week.   When a Million Dollar property is listed for under $800K that will happen.  Above Hi 17 the noise may be an issue for some or the old oil heating system, but a great price nonetheless.  Built in 1915 the character is built in.

first time buyer credit

Gov short sale guide

Q:  Short Sale definition.  What is a Short Sale?

Answer: In ”short”, a shortsale is when the lender agrees to settle the debt owed on the property for less than the full amount of the debt. In most cases “Settled” means the lender writes off the debt. You usually will receive a 1099 after a short sale for the amount of debt forgiven. The bank is agreeing not to go after you for the money they lost by filing a deficiency judgment in the future. The exception is the HELOC loan where they reserve the right to file a default judgment.

Answer: If you have a heavy asset portfolio that would cover the amount above the home’s value then the answer is likely to be no.  Each case is different and would be better answered after a professional review to help learn how to short sale.

Answer:  There is a lot of misinformation on the internet about this. A short sale is recorded on your credit report as “debt settled for less than the amount owed”.  In plain English, this will result in a relatively minor hit to your credit compared to a foreclosure or late payments on your mortgage. A short sale will affect everyone’s credit differently. The more established your credit, the less of an impact it will have on your score.

If you stop making your mortgage payments for 4 months, regardless of whether you do a short sale or not, 4 months of missed mortgage payments will have a significant negative impact on your credit.  A short sale will drop your credit 100 points or more.

If you are already behind on your payments, you have already incurred the majority of the hit that a short sale will have on your credit.  Moving forward with a successful short sale will insure that your debt is settled with your lender.

However, if you are current on your payments and can stay current throughout the short sale process, you will save your credit to a large extent.

These two Los Gatos homes for sale prove that a listing price is rarely a selling price in our Real Estate market.  We are at a crossroads.   It just isn’t what you might think;

131 Millrich Dr.  this Los Gatos house sold for nearly 1% less than the asking and 411 Clearview Dr., a townhome, sold for nearly 5% over the listing price !

A reminder that ‘sweet spotting’ your asking price will always pay off.

The good news….neither property was a short sale.

2 Los Gatos Houses sold this week,

131 MILLRICH DR, Los Gatos 95030 (Los Gatos)Single Family Home 3 bed(s) Baths: 4|1 bath(s)   SqFt: 2,593  Lot: 9,100 sq ft

List Price: $1,449,000     Sold Price $1,332,000.00

______________________________________________________

411 CLEARVIEW DR, Los Gatos 95032 (Los Gatos)Townhouse  3 Beds, 2|1 Baths:  SqFt: 2,122 Lot: 2,220 sq ft

List Price: $749,000 Sale Price: $780,000

Assoc. Fee: $428

We see a crossroads ahead…one where the buyers in the Los Gatos Real Estate Market aren’t in the driver’s seat.    Could this mean the homes for sale are in a Seller’s market?

Remember…

Spring is coming and the end of the $8000 First time buyer’s credit is there waiting.   I wonder if will  lead to more vigorous sales?…bidding?

It looks increasingly obvious the problems for some lenders are going to get a lot worse.

Rismedia reported this weekend…

The Department of Housing and Urban Development (HUD) said it’s taking a closer look at 15 mortgage companies to determine why they had such high rates of problems with FHA insured mortgages.

Can I answer that?  Lending to anyone who could fog a mirror tends to do that.    I told you Fannie Mae was getting a spanking before this new investigation.

“Each loan on this list will be thoroughly examined and we will track down the reasons why it failed. Once we determine the causes, we will look to see whether there is a need for further review or remedial action. We want to send a message to the industry that as the mortgage landscape has shifted, we are watching very carefully and that we are poised to take action against bad performers,” Donohue said.

I wonder if this has anything to do with the fact Fannie Mae is approving foreclosure without notifying banks.

I don’t think Ken Donahue has tried to actually apply for a Home Purchase Read the rest of this entry »

The program was originally designed for First Time Buyers only.  With the extension of the  tax credit came some other great news.  Just released today was the new IRS form for attachment to your tax filing.  Los Gatos home buyers  should be attaching this form when filing.

The new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the homebuyer credit, and it encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period.

what you can and cannot deduct as a homeowner

Get your taxes done FREE

Great short Video Explanation of Credit

Prize: $100 Haitian Victim Relief Donation.

Create a Quip Contest!  Choose One of the Perils and Create a Quip Contest.

Pick a Peril from the list below, create a quip and post it as a comment below.  We will take a community vote at the end of the month.

The winner will have a $100.00 donation made, in their name, to their favorite charity helping the Haitian earthquake victims!

David Letterman announced where donations can be made directly.

You can text to 90999 and enter Haiti  to make a $10 donationtoo.

2 silly Contest Examples:

Why do transactions fail?

8. Applicant makes large purchase on credit before closing.

Quip: At least the store was still open.

9. Illness, injury, divorce or other financial setback during escrow.

Quip: You should know better! Mom warned you about escrowing!

Help others! Choose one of the 88 snags -below the video – and create a quip then post it in the comment section below.   It’s Easy and will help someone in need.  Do It Now!  Please.

Pick Your comment to create a quip… Read the rest of this entry »

The Haitian earthquake reminded me of the 1989 Loma Prieta earthquake and how hard it hit Los Gatos.    I was lucky no one I knew was hurt.   I only had to fix a cracked coupling on my grandmothers gas pipe in the Carlton Meadows neighborhood where she lived.

Think ahead!

I added a couple of links below this post to help you obtain the items discussed here.

‘Safe Up’ your home by addressing these 10 things.

1. Make sure shelves are fastened securely to the walls.
2. Place large, heavy objects on lower shelves or on the floor. They might Read the rest of this entry »