San Diego Real Estate Cafe by Krista Lombardi
Archive for June, 2010
Is it Fair to Your Neighbors to Stop Paying Your HOA dues?
Did the HOA pay the water bill?
As a realtor with Prudential California Realty I have all sorts of conversations with different people and hear various opinions on San Diego real estate. I also listen to people’s different schools of thought. A few days ago I had one of these interesting conversations thus the title of this post.
I believe that with every generation, values and beliefs change and that times have changed and along with that so have values and beliefs. I can tell you that my parents came from the school of thought that your word and a hand shake was worth more than any contract. They also believed in always paying your debts even if it meant a bit of sacrifice. Read the rest of this entry »
Lightning Quick Strategies for Crossing the Goal Line Sooner
If you’re curious as to what goal line I’m talking about, it’s time to review the advice regarding your mortgage and keeping your home. Each mortgage payment that you make takes you closer to the finish line goal which is owning your home free and clear of any mortgages.
What are the strategies for achieving this optimal financial situation according to financial experts Clark Howard and Jane Quinn Bryant? Here goes:
Game Plan
1. Making bi-weekly payments reduces the amount of interest that you pay on your mortgage over the long term.
Here is an example: say you have a mortgage of $100,000.00, 30 yr fixed at 6.5% which is off the charts right now. You would end up paying $127,544.00 in interest plus $100,000.00 would go towards principal equaling $227,544.00.
By making a bi-weekly payment you chop the 127K to 97K saving yourselves 30K. That’s more than most pay raises.
2. Stay away from reverse mortgages.
Their thoughts on this is that a reverse mortgage typically puts the elderly into debt with astronomical rates and fees. The FTC has listed reverse mortgages as one of the many types of fraud.
3. Do NOT take out home equity loans to pay down credit cards.
You would think that makes sense, me too! Apparently the temptation to go buy those Jimmy Choo shoes is way too high. Huh, oh well….
The Winning Touchdown!
Imagine a football field which is 100 yards from goal line to goal line and 
you are somewhere on that field in terms on how much of your mortgage you have paid off. 15 years would be mid-field.
We’re obviously not out of the woods yet in terms of the housing crisis, we’ve seen some positive signs, we don’t know if they will stay positive. Here are perspectives that are not coming from CAR, NAR, Trulia, or Zillow, ideas in this blog today are coming from finance guru Jane Bryant Quinn. Let’s see what is similar or different.
Jane Bryant Quinn says: “If you’re paying on a house that’s worth less than the original price, keep paying it. It might be a slow recovery. But remember that with each payment you’re gaining more equity. You might be gaining very short yardage each month, but you are moving toward a first down with payment.”
A short sale, foreclosure or bankruptcy will devastate your credit score. Bankruptcies take a decade to go away, so instead of following the crowd, be one of the players on the field that is advancing and moving toward the goal of owning the property free and clear and financial security.
Top 7 Hottest Things To Do in San Diego This Week
Someone once told me that compared to LA there is nothing to do here. 
Well, if our contenders are LA and New York, we’re doing ok! There is more to do in San Diego than you can imagine. I found 50 different events just today. Here are some top picks for the week:
1. Sunday 6/6/10 – San Diego Rock-n-Roll Marathon
More than 30,000 people will be running in this event. If you go, there will be 26 entertainment stages from Balboa Park to Sea World.
2. Monday 6/7/2010 Maritime Museum
This ship originally built in 1937 will be in on Monday. The Portugeuse tall ship the Sagre will be here for a one week stay at the Maritime Museum.
3. Tuesday June 8, 2010 Celebrate World Ocean day at Birch Acquarium- 11 am – 3 pm Admission $12.00
It’s the 50th anniversary of Dr. Seuss. Explore Birch Acquarium in “Seussian style” with a scavenger hunt and storytelling all day.
4. Soups and Stocks – Wednesday June 9, 2010 6.30-9.3- pm, 1291 Simpson Way, suite H, (858) 964-8513
Learn to make rich stocks and soups from scratch during Basic Cooking Series 101 in Escondido.
Should you talk to a loan officer before you look at houses?
Most of us have bought a car, whether new or used, at one time or another and it’s usually a pretty substantial purchase. When it comes to the affordability factor we all have some idea of what we can afford and then most of us try and get the best deal on their auto loan and talk to our bank, credit union or whatever type of financial institution we bank at.
Sometimes buyers just simply use the in-dealership financing department and walk off the lot in their new car. So why do we all seem to go about this process backwards when we go to purchase a home which is by far our largest purchase and most important asset? How many of us, present company included, have gone to pick the home first and then tried to secure financing for the purchase? Read the rest of this entry »
Is a Full-Time Realtor Better Than a Part-Time Realtor?
Tempers can flare over this subject in the real estate world. Seasoned agents 
giggle and stick up their noses to the part-timers. Part-timers usually don’t have the financial means to quit their day or night jobs.
What difference does it make?
Especially in the San Diego real estate market nowadays, you had better be ready to go for months without a paycheck. Brand new agents may go for up to or more than one year without earning a dime. Here’s the thing, it’s a business. Your first year in business, you are not expected to make money or break even, you don’t need to take Business 101 to know this.
Having said that, a lot of people do not know this before setting out. They see the big bucks and the million dollar homes and think “wow, I’d like to make a lot of money!”
Let’s stop for a moment. 3% commission is a lot of money. But you should never join this industry because you want to make a lot of money. You’ll quit the first year.
On the Shady Side of the Road
Sigh…if there is one thing to be said about the real estate industry it is that you are always learning new things. There is no end to the little nooks and crannies and intricacies.
The lesson learned today is not so new or surprising, however once learned is never to be forgotten. What is it? If there is something shady about the person on the other side of a transaction be it buyer, seller, or agent, run the other way!
In the most recent case, my buyers are purchasing a home from a seller/agent/broker that bought a home at auction.
Agents that do 1 transaction every 10 years so they represent themselves are an interesting breed. You would think, “hey, I’m saving myself some money, it makes sense!” Yes, except if you don’t know what you are doing, maybe you are not.
Here’s how it all went: he bought a home at auction, it was a multi-unit but he put it on the market as a single family home until someone reported it as a violation. He accepted our offer even though he had “way higher offers”, yeah sure. The property had an encroachment. No permits as a multi-unit. No security deposit for the tenant in the back. No rental agreement for the tenant in the back.
Stop! Don’t Get Stuck in Your Car During the San Diego Rock’n'Roll Marathon
So if you’re plans on Sunday June 6th include going somewhere by car 
whether to get groceries, go to the the beach or see some San Diego real estate, be careful of the route you take because you might just get stuck sitting in your car honking your horn.
The annual Rock – n- Roll marathon takes place across the country and this weekend places it in San Diego. If you think you know the street closures, be careful, they have redefined them for 2010 and this weekend our streets and freeways become a raceway for runners, walkers, and all things rock-n-roll.
Before you hop in your car and drive off for a fun day only to chase detour signs, visit this site to see all info on street closures, trolleys, and buses.
Short Sales, The Good, The Bad, and The Ugly
Generally speaking, you should view all available options to you on the San 
Diego real estate market so that you can make decisions on which home you’d like to purchase.
Here is the catch…
Sometimes these short sales are really deceiving. Often they advertise a sale price that is completely out of whack with the market. Almost 200K less than the last sale on a 330K appraised value?! What does that do to a person’s property value? It makes the real estate market worse than it needs to be.
And the ugly part of this is that recently it appears as though quite a few agents will tell you that they are taking your offer on the short sale. Then they drag out signing acceptance on the offer or they put the property into “contingent” status and just a few days before the bank approves the short sale, they put the property back on the market to collect more offers.
Why? Fear.
Save Money By Using the Buying Power of a Group
We all know that times are tough right now and we can all agree that, now more than ever, we’re always looking for a deal.
Well I have been using several sites that will send me local deals on all sorts of stuff. I’m sure that some of you have seen some of these types of advertizements, such as groupon, reader steals, living social and daily deal, and have signed up to receive daily email or SMS alerts on deals in San Diego on everything from restaurants, services and much more. There are a few rules that apply to get the savings and just like the saying says, “If it’s too good to be true, it probably is”. I must say though that compared to clipping coupons and such it’s a breeze to use these internet based saving opportunities. Read the rest of this entry »
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