San Diego Real Estate Cafe by Krista Lombardi
Archive for the 'Buyer’s Brew' Category
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 »
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.
Special Addition Foreclosure Prevention Library
The California Association of Realtors has provided new information made available by legal counsels and current market conditions for the following subjects:
1. Proposition 8 – Property Tax Relief
2. Tips for a Short Sale Seller
3. Tips for a Short Sale Buyer
4. Foreclosure or Short Sale
5. Foreclosure Prevention Resources
6. Short Sale Process
7. Foreclosure Timeline
8. Homeowner Liability After Foreclosure
9. Avoiding Foreclosure Scams
10. Alternatives to Foreclosure
The information is designed for those who may be at risk of foreclsoure in the San Diego real estate market or who are already going through the process, and possibly helping to prevent foreclosures.
This information is free. If you are interested in one of these titles, please send an email with the title in the subject line to sandiegorealestatecafe@gmail.com
California Housing Affordability Index is Up!
What does this mean?
It means that the percentage of households that could afford to purchase a home this yearwas higher than in the “glory days” of 2004 and 2005. Even though the economy was better in 2004 and 2005, more people had more jobs, unemployment was lower. Nowadays, thanks to the market correction and lower prices, more people can own a home.
More stats on this: the median income to buy a $250,000.00 condo/house ws $41,500.00 thanks to the great interest rates. For most first time homebuyers, the average monthly payment was $1,380.00 including taxes and insurance. As I’m writing this out, I realize that most rental charge more than that per month, that is a steal.
Areas that ranked more expensive for real estate than the San Diego real estate market were: San Luis Obispo, Bay Area, Los Angeles, and Santa Clara County.
Final thought of the day, one of the basic necessities is a roof over your head, make sure you have one!
CHECK OUT ALL ROOFS IN THE SAN DIEGO REAL ESTATE MARKET HERE!
San Diego’s Real Estate Market Fairs Better Than the National Average
Everyday I get up and read up on the latest real estate news and I have to say that nationally things are not good. What I’m most interested in though is what’s happening here in our local paradise called San Diego. Locally, which to me is most important, there have been several articles documenting San Diego’s signs of real estate recovery and improvement. Market data also shows that San Diego’s housing woes are getting better and that’s very important for overall economic recovery. Real estate is an industry that is tied to almost everything and when people talk about the trickle down effect they should be sure to include real estate. Read the rest of this entry »
What Does Brad Pitt Have to Do With Real Estate?
A lot! I’m not kidding. Let me explain.
When you first set out to buy your first home, or second home for that matter, you have certain expectations, I mean, you’ve heard a lot of news about how cheap everything is. California has been hit hard, you can walk down the street and buy a house in a day.
Exaggerated, I know. But you’ve got to hear some of the stories out there. It’s real estate, the news is always scaring us and everyone has an opinion.
So back to Brad.
The Brad Pitt effect begins with a homebuyer’s expectations. It’s like dating. Don’t we all expect a perfect 10? We’re going to marry Brad Pitt or George Clooney and he’s going to be the richest man in the world, have a BMW or Mercedes, a big house and a great personality, right? (Guys, work with me here. Maybe Jennifer Aniston? )
The Sellers Want to Make My Deposit Non-Refundable!
Just yesterday an agent countered one of my client’s offers asking for a non-
refundable deposit. Well, guess what!? According to Kuish vs Smith 4th District CA Court, the answer is NO!
In the past, how it worked is the seller and seller’s agent might try some scare tactics to make you think that they would try to keep your cash, but escrow kept your deposit safe-guarded and it was virtually impossible to try to keep a buyer’s deposit.
Enter Kuish and Smith. Bradford Smith entered into written agreement to buy a 14 Million dollar Laguna Beach home, he gave $620,000.00 as a deposit described in the contract as non-refundable.
What Are the Biggest Mistakes that San Diego Real Estate Investors Make?
Late 2008 and early 2009 investors came out of nowhere swooping up a good portion of San Diego real estate and buying properties up cash. Between January of 2009 and January of 2010, 8,452 properties were sold for cash in San Diego County. I had the honor of working with many an investor, and still do. If you are considering purchasing a property to fix or to flip, here are some pitfalls that you’ll want to avoid.
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