10 Painful and Costly Mistakes Home Buyers Often Make

1. Don't use your "Aunt Mabel".
• Although your friend or family member will surely have your best interest at heart, without an intimate understanding of current, local market trends, you're either going to struggle...or pay too much.  Neither of which is ideal.  Use an established and respected local area expert. Why? They get the job done; repeatedly.  They know what's out there and they know what's coming.  They also have established working relationships with the other players in the mix: Title, escrow, lenders, other agents, etc.
2. Remember, until it's yours...it's only sticks & bricks.
• Until you get the keys, do your very best to remember that the deal you're working on is literally just a stack of raw materials and labor.  Don't go order your new sofa or that 80" HDTV. Until it's actually yours, believing otherwise often leads to headaches and heartaches.  
3. Not doing recommended inspections.
• There are typically only two circumstances when I'll subscribe to the idea of 'no home or pest inspections'.  A) New Construction. B) When the buyers have the ability and willingness to recover from unexpected problems with the property; mold, plumbing, electrical, foundation, roof, etc.  These inspections are crucial in making an informed decision as to whether you proceed with a purchase, walk away...or renegotiate terms of your contract.  "But what if we pay for these inspections and find out that we don't want to buy the home?"  THAT, my friends, is exactly why you do the inspections.  Better a $275 risk...than a $475,000 risk.
4. NEVER change your financial circumstances while in escrow. 
• Don't pay more, borrow more, sell something, buy something, or make an investment...and please...don't guy buy a new car! "But I thought paying off my credit card debt would be helpful!"  Don't think; ask!  It might be helpful.  It might have been better, though, to have used those funds to buy down your interest rates. So, if you're going to do anything other than buy groceries (exaggerated...but just a little bit) while you're in escrow, tell your lender immediately.  Better than that, ASK your lender.  I promise that you don't want to be stuck in a contract that you cannot close.  It's no bueno! 
5. Don't leave yourself Mortgage Broke
• Mortgage Broke is when you can comfortably afford your mortgage payment...but nothing else.  No baseball games, no Disneyland trip, no back to school clothes, and no new tires for the car.  Most Americans have an almost unquenchable material appetite. In a funny way, we want to WANT as much as we want to HAVE.  So, just because you're approved to a loan amount of $600,000 doesn't mean that you HAVE TO buy a $600,000 home.  It's your home...not your life.  Make sure that you're comfortable enough to absorb a few financial hits along the road and smile through them.  Enjoy that occasional ski trip.  Take a weekend away, now and then.  Leave just enough breathing room to keep you 'in love' with your home, not burdened by it. 
6. Negotiating with home builders on your own.
• Most home buyers would never consider taking their real estate agent into a new home community.  Over the past 4 years, nearly 25% of my business has been the result of successful negotiations with home builders on behalf of clients.  Think about it for a minute.  Imagine if you and your spouse could walk into a new car showroom with YOUR OWN car salesman to help you negotiate.  Seriously!  This guys know what goes on behind the scenes.  Next, imagine that his or her service was free AND did not raise the price of the car you were going to buy!  It's the same way with new home construction.  You CAN bring help.  As your agent, yes, I do get paid, but those funds typically come from the builder's advertising budget, not the sales price of your house.  I learned this early, watching a Realtor who I know and love negotiated terms on my first new house.  It was fantastic.  Click here to read more. 
7. Know your lender.
• Some random "WannaBuyAHouse.Com" loan website probably isn't the most ideal relationship to foster when your financial future is at stake.  Find a local lender that you can speak with in person, on the phone, via text, or however you prefer.  This person is far more likely to invest time and some serious effort into someone they've personally met.  Are the employees on the other end of some website interface going to be busting their butts for someone they've never even met?  You can't be sure.  So drop into your bank or credit union.  Even better than that would be to work directly with a lender that already has a strong working relationship with your real estate agent.
8. Don't expect that fun new iPhone app to turn you into the local area expert.  

• This has become such a problem within our industry that I already wrote an in depth post about it.  Zillow, RedFin, Trulia, etc. are great if you're looking for a reasonable rule-of-thumb, but as they admit themselves...their data is questionable at best.  Count on your local area expert. He or she knows not just what the price of your new home ought to be...but WHY it ought to be sold at that price.  That expertise; that "why" is crucial when it comes to negotiating a fair price and fair terms.
9. Don't use the wrong "coach."
• Do you know why there were two coaches in the Superbowl this year...and every single other year since the beginning of time?  Because there were two teams; two sides. OK, I know what you're thinking..."Duh!"  But every single weekend, unsuspecting home buyers walk into an open house and tell the listing agent, 'We love it!  Let's write it up!" That's no different than the Patriots marching into the Seahawk's stadium and asking their opponents coach to help them gain the best possible outcome.  It happens all the time.  So what should you do if you do fall in love with that open house?  First, ask if the agent holding the home open is working for the sellers.  Sometimes they're not! If the agent at the open house is working for the sellers, say this, "We absolutely love it!  We're going to go have our agent run comps and write up a competitive offer." Then leave. Find an impartial real estate agent that will advocate or coach your side exclusively. The listing agent has a fiduciary responsibility to the seller. Let someone else advocate for solely you!  
10. Unless your purchase is going to be a rental, make this your home, not just an 'investment'. 
• It's easier said than done, but consider your purchase for what it is; your home.  It may go up in value. It may go down in value. But it will always be your home; at least until you sell it, or will it away! Creating a bit of emotional separation between the idea of investment and home will leave you feeling more peaceful throughout the ups and downs of the real estate market.

There are dozens of other do's and don'ts to keep in mind when buying and selling a home, but I hope that these ideas leave you a bit better equipped to confidently walk the path of buying your next home.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

How long after a Short Sale, Foreclosure, or Bankruptcy do I have to wait?

Did you get caught up in the housing bubble that burst?  Almost everybody did!  In the Riverside, San Bernardino, Ontario metro areas nearly 50% of all homes sold in 2012 were foreclosure related sales. That was just 2012.  Add to that, all of the other distressed homes sold between 2007 and today, and you get a pretty good idea of the scope of that bubble bursting.

Here's the good news though.  If you've survived the stresses of going through a foreclosure, a short sale, or a bankruptcy, you're probably closer than you think to getting back into the market.  How close?  Let's take a closer look.

Below I outline typical wait times for various loan programs based on which financial circumstance you went through.  

• Short Sale 
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Deed in Lieu of Foreclosure
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Foreclosure
• FHA Loan - 3 years. As little as 1 year if borrower qualifies"Back to Work" program. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 7 years
• USDA Loan - 3 years
• Chapter 13 Bankruptcy
• FHA Loan - 1 year if payment period has elapsed. 
• VA Loan - 1 year if payment period has elapsed. 7 years on loans > $417,000
• Conventional Loan - 2 years from discharge date, 4 years from dismissal date
• USDA Loan - 1 year if payment period has elapsed. 
• Chapter 7 Bankruptcy 
• FHA Loan - 2 years from discharge date. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years from discharge date, 4 years from dismissal date
• USDA Loan - 3 years from discharge date. 

I often advise my clients NOT to wonder.  Don't wonder if you're ready.  Find a lender you trust and find out if you're ready.  If you're not ready, the worst thing you would walk away from this experience with is the truth and a plan.  Sounds like a win/win to me.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

14 Reasons why New Homes are better than Pre-Owned Homes

Question: Should I Buy a New Home or a Previously Owned Home?
Answer: This one's an easy one to answer! It depends! See. Pretty easy.

Ok, all kidding aside, I'm a huge advocate for new construction.  My wife and I have owned 3 homes over the past 12 years. Two of those were new construction; the 2nd and the 3rd.  But are new homes better than existing homes?  That question simply can't be answered.  Are new cars better than old cars?  You tell me.

My history shows my personal taste. I love new! But I have friends, family, and clients who absolutely love older homes; the older the better in most cases. Think about it.  You can't buy a new, 1907 Victorian home in Redlands.  You just can't!  And you'd be hard pressed to find a brand new home in a neighborhood filled with 200 year old trees. You probably aren't going to find a new home in Yucaipa on a half acre lot either.

Let's dig a little deeper into what's "better," and for whom.

Here is a list of reasons that might compel you to buy a brand new home as opposed to one that is pre-owned.

1. You have a choice!
With little to no change in sales price, new home builders typically offer choices as to color and styles of the features of your home. These aren't "upgrades," but they're still choices. Carpet color, tile, vinyl, counters, cabinet finishes, etc.  You'll often have 3 or 4 choices in each category to choose from at no extra cost. These choices are made at the design center after we've negotiated the terms of your purchase.  Design center?  It's a complete blast!  You're literally designing the interior of your home!  

2. Possibilities of Negotiation.
When you buy an existing home you have terms with your lender and terms with a seller.  The lender needs to profit, and the sellers obviously want their cut as well.  When you buy new construction; a brand new home, you've got twice as much opportunity to negotiate. Why? Builders want to sell homes.  They'll do everything they can (within reason) to close the deal.  Often builders have an "In House Lender" (an affiliate or subsidiary) that helps buyers get into these homes by putting together attractive loan programs tailored to each unique buyers' financial circumstance. The builder and lender become one, and they typically share in the success of selling these homes. It's no longer two entities looking to profit from selling you a home.  Understanding this allows me, as your agent, to negotiate terms on items such as:

• Sales Price
• Loan Terms
• Closing Cost Credits
• Design Center Credits
• Contingent offers, etc.

3. Shhhh!  Listen! Do you smell something?

Truly a classic, funny line from Ghostbusters.  However, when it's your home, there's nothing funny about "that funny smell." Personally, my favorite smell when I get home is "New House" smell.  Seriously!  I think there's this feeling of certainty that unconsciously reminds me that dinner isn't going to be interrupted a ruptured pipe or blown fuse.  What's that smell?  It's not curry, mildew, cigarettes, or pet odors...it's peace. I remember when our boys were young, crawling and rolling around on the floors. It brought my wife and I peace of mind knowing that not only the carpet was new (and in a color we chose) but the carpet pads and sub-flooring were new as well.  No smokers, no pets, no allergies, and no spills are going to resurface 4 months down the road. If there's gonna be a mess...it's gonna be OUR mess!

4. Competition
When buying new construction you're not likely going to be competing with multiple buyers for the same house. You simply pick your floor plan and elevation (appearance) or your floor plan on the lot you like, negotiate terms, then watch it being built!  

5. Contemporary Styling
Yesterday's "Upgraded" has become today's "Standard" features with new home builders. Dual-pane vinyl windows, energy efficient appliances, and granite counter tops have now become the standard that new homebuyers are looking for. Why worry about updating that dated kitchen when it will already be updated the moment you get your keys?

6. The whole is a sum of the parts
When you buy a 35 year old home, you've got 35 year old 'stuff'.' That 35 year old stuff is connected to other 35 year old stuff.  To a buyer of an older home this often turns a seemingly simple plumbing or electrical problem into a massive investment.  By massive I mean that the backed up sink in the guest-bath could lead to a $7,000 complete re-pipe of your 'new' house. 

7. Infrastructure
In new home communities, you've typically got new sewers, new streets, lights, sidewalks, parks, and more. Sometimes cities even require new home developments to assist in developing the surrounding community as well, including schools, retail outlets, and more.

8. What sounds better; a walk through or an inspection?
With new construction there are no dreaded home inspections!  When you buy a new home, everything is new!  What's to inspect? With pre-owned homes, you've got those anxious days between the time you write an offer and the time you receive your pest and home inspections. After that is the fear of going forward, walking away, or renegotiating.  New home construction closes with a final walk through.  Now THOSE are fun!

9. With new homes, appraisals are your friend!
Yes, your new home must appraise in order for a lender to fund, even on new construction.  That said, it behooves the builder to price their homes accordingly.  Have I seen new homes NOT appraise?  Yes...once.  In that case, the builder simply reduced the price to the appraised value.

10. Home builders sell to FHA and VA buyers!
FHA and VA buyers are typically well qualified and committed to the process. However, from a seller's point of view, FHA and VA offers are less attractive because they bring the results of the inspections in to play.

11. You won't have to buy (or ask the seller to buy) a Home Warranty
Your new home comes with one!  Wait...it comes with several: Foundation, Roof, Fit & Finish, Appliances...everything!

12. Beyond any warranty
You've got a builder's reputation at stake, and they'll stand behind their product.  With pre-owned homes the sellers have likely moved on, and you'll never see or hear from them again.

13. Safety Features
New homes are built to much, much safer building codes.  Fire retardant materials, CO detectors, fire
sprinklers, smoke detectors, GFCI plugs, etc.  Want ground fault circuit interrupters in your pre-owned home?  Let's get a bid for that little upgrade from your local electrician.   

14. Resale Value
"Honey. I'm never leaving this house!  I love it!"...and then...

• Job transfer
• Babies on the way
• Kids are grown and move out
• Parents move in
• Change in family circumstance
• and on and on.

You may plan to live in your next home forever, but at some point you may look at selling.  Reselling a modern home is often a simpler task than selling an older one. 

I could easily create a list that's just as long and just as compelling advocating the purchase of pre-owned homes.  In fact, I'm sure I will.  However, at this point in my personal life, and with a young family in tow, I feel very peaceful living in a newly constructed home and I'm always at peace when I help a client negotiate a deal with a home builder.

Wait!  You mean...I help people negotiate deals with home builders?
Absolutely!  Countless times! Really, at this point I could only guess how many brand new homes I've sold. I've done it enough, in fact, that simply accompanying my clients on their first visit to a builder's model homes pays huge dividends. If I accompany a buyer to a builder's sales office, it affords me the ability to negotiate on their behalf. I've negotiated upgrades, closing cost credits, appliances...even fully landscaped backyards...at no extra cost to the buyer.

But wait, do I get paid a commission?
Yes!  Well technically...no.
Let me explain. It's customary that the sellers of a home pay the listing and buying broker's commissions.  In the case of virtually all new home communities, they don't pay a commission.  They pay a marketing expense; a referral fee.  This is not a line item on your closing statement.  It doesn't come from the sale of the home.  It's paid by a different department all together.  Often the same one that pays for TV commercials, web presence, and print advertisements.  This mean that a) you DON'T pay me; directly or indirectly, and b) I'm absolutely committed to giving you the very best service possible and negotiating aggressively and effectively on your behalf.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Hey! What's with the property taxes in Beaumont?

It's the first thing I hear and it's the last thing I hear when I hold an open house in Beaumont.  "Does this place have those super high assessments and taxes?"  My answer: "Yep!  It sure does!"  But as a Realtor, would I ever live in a place with "those super high assessments and taxes"?  Absolutely.  In fact I DO (not in Beaumont specifically, but in one of the newer communities in a nearby city).  

It's not just Beaumont.  It's everywhere: Beaumont, Yucaipa, Redlands, Rancho Cucamonga, and on and on.  

Once I learned what these Mello Roos, or Special Assessments, or whatever you want to call 'em actually pay for, I was all in.  These property taxes go toward proactively building exactly the kinds of communities I want to live in and the community I DO live in. 

If you're a home owner, not just in Beaumont, but anywhere, or if you're looking to buy in the near future, I think that the 6 minutes you spend watching this video will help explain why so many newer developments carry such a high tax burden.

Don't get me wrong.  Not everyone wants to live in a new community.  Some really appreciate the charm of an older, more established and mature setting.  Seriously...you can't buy a new home with a 95 year old oak tree in the front yard.  However, for so many young families, we're looking for convenience, dependability, parks and recreation, and the confidence of knowing that our community has an intelligent and well thought out plan.  

So, now are you ready to pay a bit more in property taxes to live in a bright, vibrant, and intelligently thought out community?  I am!

      Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

How much should I list my house for?

Home is where the heart is, but it can also be where the anxiety and stress is if you're planning on selling anytime soon. 

Selling your home can be an incredibly stressful and emotional time, BUT with the right guidance and support it can (and should) be a smooth, exciting, and hopefully profitable experience. 

Probably the biggest source of anxiety and stress when selling a home is arriving at...and agreeing on...your home's list price.  Below are a number of ideas, thoughts, strategies, and points of view that will leave you best equipped to tackle this seemingly daunting task.  Let's call 'em the Dos and Don'ts of Home Pricing.

DOs

1. Consider your motivation and timeframe
• Do you have a new job that you're moving too?  How about kids starting school? Be at peace with the reality of your unique set of circumstances.  Be realistic with yourself.  Do you have times to 'test' the absolute limits of the market, or are you serious about making your move?
2. Wear 3 sets of glasses

• Consider all of three of these points of view when determining your list price. 
• You HAVE TO think from your buyer's point of view. How do they look for a home?  If you were a buyer...what would attract you? 
• More importantly, you have to think about your buyers' Realtor's point of view.  Your buyers' agent is the one that influences the actual buyer.  Think about it...most parents don't go to the store with the idea of buying Captain Crunch cereal and Sponge Bob Krabby Patties!  But kids influence parents (the buyers) actions. If you influence your buyers' agent, the buyer's will take action.  
• Anyone else?  Oh yea! You have to think about the appraiser's point of view as well! If you've overpriced your house but you're fortunate enough to find a buyer at that inflated price...the appraiser is likely going to pop your bubble, and you'll be back down to reality before you know it, so you might as well start there.
3. Rely on clearly understood "Comps."  
• Comparative Market Analysis, CMA, or "Comps." Use the following criteria to help establish a realistic starting point:
• City, town, or area: Outline your specific development on the map and use homes that are 'model matches' of your particular house.  If you can't do that, start with a half-mile radius from your home. 
• + or - 10 years from the year your home was built
• + or - 10% of the square footage of the home
• + or - 20-30% of the square footage of your lot
• # of bedrooms...until you get to 5, then simply use 4+
• This is a sound starting point. You'll want to find at least 5 properties that are very similar in kind to yours that have closed recently (within the last 90-180 days). If you don't have 5, broaden your search criteria. However, the less refined the search criteria, the less dependable your comp data will be.
4. Look at the median number of days homes are on the market; DOM:
• Look at homes that have been on the market for 90 days or more without selling!  As of the date of this post, the average DOM for local homes is 41 days. If your "Comp" is still on the market after 90...there's a good chance that it's overpriced. You might not weight that comparable home as heavily as another.
5. What time of year will you be selling?
• Ah, spring is here. Spring is considered the best season to sell a home since families are trying to get situated before the start of the next school year; however, fall is a close second since it comes right after the quiet days of summer when most people are away on vacation. Winter is usually the worst season -- especially in areas where it snows -- but also because of the Thanksgiving, Christmas, and New Year's holidays when people's minds are on socializing, not buying or selling a home. Note: This can be an excellent time to buy!
6. Look at inventory; the number of homes for sale in your market
• This is right out of ECON 101; Supply & Demand are inversely related.  Simplified...lots of inventory means lower prices, and little inventory means more buyers bidding on each house, driving up prices.  What's your current inventory level? Is that more or less than 3 months ago? Is inventory increasing or decreasing?
7. Consider psychological price caps
• Although these numbers are arbitrary, we live in a society where they actually matter! We don't see a candy bar for sale for a dollar.  It's 99¢.  Billions; probably trillions of dollars have been spent by marketers around the world verifying that yes, we actually DO think that 99¢ is less than $1.  What does this mean for your home's list price? Don't list your home for $512,000.  List it for $499,900.  At $512,000 you'll miss ALL of the buyers who are willing and able to pay that much, but they never saw your house because their arbitrary search criteria was capped at $500,000! On the contrary, if your home is undervalued at $499,900, it will receive multiple offers and likely bid up to or even beyond your estimated value of $512,000.  If that strategy doesn't actually work...guess what...your house wasn't worth $512,000 in the first place.  
8. Look at Current Mortgage Interest rates



Interest rates change buyers' behavior

• Low rates = More Buyers = Higher Demand = Higher Prices
• Stable rates = Current market data becomes even more relevant
• High rates = Fewer Buyers = Lower Demand = Lower Prices
9. Look at expired and cancelled listings
• Almost nobody looks at these numbers, but they tell 'the rest of the story.' This is a look into the recent past.  If a home didn't sell, it's a virtual certainty that it was overpriced.  Keep that in mind when pricing your home. 
10. Look at List Price vs Sold Price
• This adds credibility to your "Comp" data.  It shows recent trends with regard to homes selling above or below their initial asking price.  For example: Over the past 90 days 144 homes sold.  Their combined list price was X and their total sold price is Y. Comparing those two numbers illustrates a trend of overpricing vs. underpricing.  It usually only varies by about 4%, but can really help guide you in terms of direction.
11. Contact a Local Area Expert
• The “art” of choosing the right price for your home comes after you've pulled the data you need to make an educated choice.  Your Realtor's experience & knowledge of your local market is not a logarithm or spreadsheet.  It's expertise.  Chef Ramsay can't tell you exactly how much salt to use, he tastes...and makes a judgement based on decades of experience.  Local experts know intimately the things home sellers probably never even thought about, like...which HOA is having financial troubles or is in litigation? Which side of the street sells for more money; the hill-side, or the golf-course side? Which neighborhoods have excessive special tax assessments or Mello Roos? Did the school boundaries change recently? What is the city doing with that empty lot on the corner? Have you seen that updated FEMA Flood Map? Are there any short-sales or bank owned homes left in your area?  ALL of this knowledge comes from your Realtor's time and commitment; it's knowledge that your iPhone app and your aunt Mable from out of town couldn't possibly know.

DON'Ts

• DON'T look at your Zillow Zestimate as anything but a generalization



Ethically, Zillow notes that Zestimates should not be used for pricing a home.

• Sure, use this figure as your starting point, but don't take it as a fact. These "Zestimates" are admittedly inaccurate.  In fact, Zillow  advertised, to Realtors, a free downloadable PDF file on how to overcome objections to their own data.  These Zestimates are always wrong, but are sometimes HORRIBLY wrong!
• DON'T consider what you paid for your home
• Maybe you still owe $400,000 on a $280,000 house. Maybe you inherited the home and paid nothing! The only thing that matters is the home's value right now.
• Ignore the News; both local & national
• Ignore the News. No matter how "local" the news says it is, it's not local enough to do anything other than create hype or scare the pants off of you.  That's what the News gets paid to do; freak you out.  What's happening within a major metropolitan area is rarely what's happening in your town...much less on your street.  Don't believe the hype; good, bad, or indifferent.
• DON'T put too much weight into what is currently on the market.  
• Sure, those homes might be your competition, but they also could have been on the market and are never going to sell!  I recently saw a listing that had been on the market for 985 days.  How relevant is that?  Remember, what your neighbor 'wants' for his house and your other neighbor 'wants' for hers is no guarantee that either of them will get it. Yes, look at the active market, but more importantly look at what has closed recently (lets call 'recently'...90 days or so).  

Let's review your offers!

I encourage my clients to list at absolutely the most competitive price possible. This creates the highest number of showings. It also creates a bit of a 'feeding frenzy' which plants a seed of urgency within your buyers. Buyers usually have lots of options, and they won't have time to look into all of them. Price is always a motivator for prospective buyers and their Realtors, so let's make the list price an intelligent and competitive one. Consider best-case and worst-case: If the offer you receive is too low, you can accept it or make a counteroffer.  If your price is too high...you'll never get an offer to accept or counter.  That idea alone illustrates the importance of not overpricing your house.

Click Here to read a very recent (current at the time of this post) real world case of exactly how this works:

Having a stale, overpriced house on the market is ineffective, inefficient, and frankly...embarrassing for the sellers and their Realtor.  When your home is priced right...it feels right, and the activity you'll see proves that it is.  THAT is when you know you hit the sweet spot.

Click here if you'd like a FREE, no drama, no spam e-mails, no phone calls Home Valuation (CMA) created for your current home, or for one you're interested in buying!

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

What's the value of your home? FREE Home Valuation.

I've got to say that the hardest part of my job isn't the fact that I'm on call 24/7. It's not the fact that one day I'll be talking to a prospective seller about a million dollar listing and the next day I'm running to a listing with a raincoat, boots and shovel (dealing with some unforeseen circumstance)! The real tough part of this job is having to overcome the lack of trust laid down before me by my predecessors. As a Realtor I often hear my chosen profession as "One step above a Used Car Salesman." So, in an effort to remedy that, here are a my first promise to you; several promises to you in an effort to earn your trust:

• I will complete a fully customized CMA (Comparative Market Analysis) of your home or a home you may be interested in buying. This is the best way to determine what your home might sell for on the open market. 
• I create this free of charge, leaving you with absolutely no obligation to contact me in the future.  
• I will not contact you without your permission.
• I will deliver this comprehensive report to you via e-mail, through the united states postal service, or in person: It's your choice.  
• I will not pester you with phone calls or countless e-mails. 
• I will simply provide the best information possible in an effort to earn your trust, and someday...your business.

How does it work?

1. Simply e-mail me (my contact information is below) the property address that you'd like analyzed. I'll e-mail you back a .pdf file with an estimated market value of the subject property.  
2. I will create this report within 24 hours of your request. If you'd rather have your CMA mailed to you, I will do that. If you'd rather have your report delivered in person, I will do that.

Note: Without the benefit of actually seeing the subject property in person it would be irresponsible of me to claim that the value I give is 'the most accurate estimated value possible.'  However, if you'd like for me to come by and see the property in person, I can make arrangements to do just that. Doing so provides more information, leading to a more accurate valuation.

Click here for a copy of my resume.

Again...this is all done with no obligation on your part.  The information is free.  Use it as you see fit. My goal is never to 'trick' you or pester you into allowing me to bombard you with unwanted e-mails and fliers. My goal is to attract clients; informing clients, in hopes of working together in the future.

I wish you the very best, and thank you for the opportunity to serve you.

Andy

I can be reached at:
Andy.Blasquez@gmail.com
or
Andy@LoisLauer.com
or
909.539.3292

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A Case Study in Effective Home Pricing

In January of 2014 I completed a CMA on a 4 bedroom 2 bath Single Family Residence.  I advised the prospective seller that the home's value was just under the $400,000 mark at about $385,000.  I thought that $399,500 was definitely on the high side, but not high enough to be completely unrealistic.  There were comps that closed above that price so appraisal wouldn't be an issue. The prospective sellers realized that they had a few financial items to get sorted out before they made a move so they chose not to list at that time.

In January of 2015, one year later, I completed a second CMA on the same home.  This time the property value came in at just above $400,000 at $412,350.  We listed the property for sale at the exact same price I had suggested earlier; $399,500.  I had proven to these clients that I knew what I was doing and reassured them that if they'd never have to sell at a price that they weren't comfortable with.

On February 18th, 2015 we listed the home at $399,500.
On February 23rd we reviewed 7 offers, two of which came in at $420,000. We went pending on the 23rd with an estimated Close of Escrow (COE) date of March 20th, 2015, with the right to possibly rent back until the sellers closed on their new home.

I am virtually certain, although there's no way to turn back time and test it, that we would have been lucky to broken the $400,000 mark had we listed the property for sale at an overly optimistically price of something like $425,000. I believe that home buyers, first time buyers, and investors cap their search criteria at numbers like $300k, $350k, $400k.  These number are, for statistical purposes, absolutely arbitrary, but psychologically...they matter.  Knowing that we'd capture more prospective buyers under the $400k mark than we would over the $400k mark paid dividends.

Receiving 7 offers gave me and my sellers the confidence that if one buyer scoffed at a possible counter offer, we had 6 more in the running.  If we'd overpriced the house and received only 1 or 2 offers, we'd not have had the security to negotiate strongly.

At the time of this post, the property discussed above is "Pending."  We won't know if it's going to close until it does!  That, however, has nothing to do with the pricing and everything to do with the property inspections and the current condition of the home.  The pricing strategy worked...again.

We'll update this post once we've closed escrow. Stay tuned!

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  

If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my services.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

The Pros & Cons of Homeowners Associations: HOAs

If you're shopping for a home there’s a good chance that some of the homes you’ll look at, especially brand new homes, will be part of a homeowners association; an HOA. There are literally tens of millions of homes in the US that are part of an HOA, with more coming with each passing day.  I've created a short list of the most commonly recognized Pros and Cons of living under supervision of a Homeowners Association.

PROs

• HOAs provide access to community amenities like parks, pools, tennis courts, clubhouses, fitness centers, and the list goes on.  Want a nice pool to lounge around during the summer months?  How many months of HOA payments would it take (at $48-$95 per month) to pay off a $45,000 pool…plus the service and maintenance of that pool?
• HOAs assume many responsibilities that would otherwise be yours…or perhaps nobody’s.  Most of these responsibilities are referred to as ‘common area maintenance,’ such as landscape maintenance, paint, park upkeep, pool servicing, etc.
• HOAs keep up the appearance of your community. By enforcing bylaws, your HOA encourage the original integrity of the development by requiring acceptable appearance of buildings, gardens, and common areas.
• Neighborhoods and developments supported by effective HOAs often command higher sales prices as the development as a whole tends to be more sought after.
• Often time, HOA fees include other services such as water, sewer, and/or garbage.
• HOAs can often mediate between neighbors rather than giving in to calling the police or resorting to lawsuits.

CONs

• HOAs can be mismanaged; resulting in loss of reserves needed for operations, and can result in an increase of HOA dues. 
• HOAs can be perceived as a bit too “Big Brother,” asking you to remove lawn decorations or to repaint the front door that you just painted red back to its original color.
• HOAs can limit or prevent the lease or rental of any or all of your property.
• HOAs can actually foreclose on your home if dues aren’t paid.  Although this is a last resort and is very infrequent, it does occur and remains a possibility.
• Although there are benefits to being a member of an HOA, buyers may be turned off by the idea of following the bylaws and/or paying the non-tax-deductible Homeowners Association Dues.

Like with so many Real Estate related questions, there is no one ‘best’ answer.  “To HOA…or Not to HOA” is another of those questions.  What''s my advice? Stick with the idea of buying with a particular lifestyle in mind and you’ll do just fine. 

 Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

How do I know if I'm ready to buy a house?

Don't get overwhelmed. Ask for help.

Simple! You go into a lender's office and ask. What? Is it that simple?  Yes. Really! Just do it! 

I don't 'wonder' if I need to have a cavity fixed. I ask my dentist! Don't waste time wondering if you might qualify.  Ask a lender. "But I don't want to go through all of that paperwork drama." OK. I'll make it even easier.  Find a lender. If you don't know one, ask your friends and family who they use. Don't want to ask them?  Ask me! I trust my business to a brilliant and hard working gal who works in our office.  Her name is Melissa Chagolla.  Click here to reach her. Now...call or E-mail your lender and say this: "I'd like to buy a home but I'm not sure what I qualify for. Can you help me with that?" That's all it takes. Just start the process. Once the ball is rolling it's really a straightforward process. I'm happy to help if needed; sorting, scanning, copying, organizing, e-mailing, delivering, documents, etc.  It's all part of the process.  Your lender and I can help make this process as smooth as possible.

Your lender will probably ask for what I call "Your 2, 2, & 2."

• 2 years of taxes (or at least your W-2s or 1099s to start with) 
• 2 months of bank statements
• 2 months of pay stubs 

Your lender will take it from there.  Did you know that you can be approved for a mortgage with a credit score as low as only 600.  Sure...a credit score of 750 or 800 might qualify you for a lower interest rate, but the average credit score in California is only 651. You probably qualify right now and don't even know it. There are grants and programs that provide downpayment assistance and help with closing costs. There are even areas such as Calimesa, Cherry Valley, Oak Glen, and parts of Beaumont and Yucaipa that qualify for a USDA program with up to 100% financing. Your lender knows what's possible...and what's best.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com