• Knowledge:  I keep abreast of market trends specific to our area by monitoring inventory and tracking market statistics.
• Internet Expertise:  Because 80% of home buyers use the internet to find homes, the internet is now the most important tool when it comes to real estate. I am able to leverage my internet expertise throughout every real estate transaction.
• Satisfaction:  I am hard working and goal oriented.  I hope to meet and exceed your expectations.
• Commitment:  I take great pride in providing my clients with excellent service.  I am honest, loyal, and ethical.
• Support:  You will benefit from the knowledge, experience, and support of my team, the top producing Coldwell Banker team in San Diego.
  
  

RELEVANT ARTICLES:

Risks of Remodeling Without a Permit

Most cities require that homeowners obtain a building permit before making modifications to their residence. Which modifications require a permit vary by city. Also, some cities are morevigilant than others in enforcing permit laws.

In order for the homeowner to receive apermit, the homeowner or his/her designee are required to file plans and payfees to the city. In addition, the improvements are given a value. If theyincrease the value of the property, this may result in an increase in property taxes. Inspections are often required, and this means having to schedule andthen wait for inspectors to approve the work to be done. This process can betime consuming and inconvenient in the short run. It is for this reason that some homeowners skip the permit process.

If a permit is needed and you fail to get one,the city may discover this at some time in the future and getting a permit retroactively can frequently be significantly more expensive and much more problematic than having obtained the permit before work commenced. If work is not done in accordance with city procedures or if the inspector is unable todetermine if the work has been done properly, the homeowner could be requiredto open walls, tear up floors, so that the inspection may take place. In addition, by law, work not permitted where a permit was required must be disclosed to any prospective purchaser. This may cause the owner to discount their sale price or perform costly or time-consuming repairs before title can be transferred.

For prospective buyers of a property, save yourself the future hassle and loss of money by researching whether all work onthe premises has been done according to code and with the proper permits. You may obtain these permits by going directly to Building & Safety in the municipality in which the property is located or by hiring a "permit puller"who will research the permits for you.
copyright © Agent Image 2007

Traversing the Pitfalls of Home Inspections

June and Fred Smith were diligent aboutgetting their home ready for sale. They ordered a pre-sale termite inspection report. The report revealed that their large rear deck was dry-rot infested, so they replaced it before putting their home on the market.

The Smiths also called a reputable roofer toexamine the roof and issue a report on its condition. The roofer felt that theroof was on its last legs and that it should be replaced. The Smith's didn't want buyers to be put off by a bad roof, so they had the roof replaced and the exterior painted before they marketed the home.

The Smith's home was attractive,well-maintained and priced right for the market. It received multiple offers the first week it was listed for sale.
But the buyers' inspection report indicated that the house was in serious need of drainage work. According to a drainagec ontractor, the job would cost in excess of $20,000. Fred Smith was particularly distraught because he'd paid to have corrective drainage work done several years ago.

First-Time Tip: If you get an alarming inspection report on a home you're buying or selling, don't panic.Until you see the whole picture clearly, you're not in a position to determine whether you have a major problem to deal with or not.

What happened to the Smiths is typical of whatc an happen over time with older homes. The drainage work that was completed years ago was probably adequate at the time. But since then, there had been unprecedented rains in the area, which caused flooding in many basements.Drainage technology had advanced. New technology can be more expensive but often does a better job.

The Smiths considered calling in other drainage experts to see if the work could be done for less. After studying the buyers' inspection report, the contractor's proposal and the buyers' offer to split the cost of the drainage work 50-50 with the sellers, the Smiths concluded that they had a fair deal.

The solution is not always this easy,especially when contractors can't agree. Keep in mind that there is an element of subjectivity involved in the inspection process. For example, two contractors might disagree on the remedy for a dry-rotted window: one calling for repair and the other for replacement.

Recently, one roofer recommended a total roof replacement for a cost of $6,000. A second roofer disagreed. His report saidthat the roof should last another three to four years if the owner did $800 of maintenance work. Based on the two reports, the buyers and sellers were able to negotiate a satisfactory monetary solution to the problem for an amount that was between the two estimates.

It's problematic when inspectors are wrong.But it happens. Inspectors are only human. Here is another example: A home inspector looked at a house and issued a report condemning the furnace, which he said needed to be replaced.

The sellers called in a heating contractor who declared that the furnace was fit and that it did not need to be replaced.

The buyers were unsure about the furnace,given the difference of opinions. The seller called in a representative fromthe local gas company. The buyers knew that the gas company representativewould have to shut the furnace down if it was dangerous. He found nothing wrong with the furnace, and the buyers were satisfied.

In Closing: Sometimes finding the right expert to give an opinion on a suspected house problem is the answer,but it is always good to get two opinions.

What is a CMA and Why Do You Need One?

CMA is real estate shorthand for"Comparative Market Analysis". A CMA is a report prepared by a realestate agent providing data comparing your property to similar properties inthe marketplace.

The first thing an agent will need to do to provide you with a CMA is to inspect your property. Generally, this inspection won't be overly detailed (she or he is not going to crawl under the house toexamine the foundation), nor does the house need to be totally cleaned up andready for an open house. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. If you plan to make changes before selling, inform the agent at this time.

The next step is for the agent to obtain dataon comparable properties. This data is usually available through MLS (Multiple Listing Service), but a qualified agent will also know of properties that are on the market or have sold without being part of the MLS. This will give the agent an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.

The CMA process takes place before your home is listed for sale. This is a good assessment of what your house could potentially sell for.
CMAs are not only for prospective sellers.Buyers should consider requesting a CMA for properties they are seriously looking at to determine whether the asking price is a true reflection of the current market. Owners who are upgrading or remodeling can benefit from a CMA when it's used to see if the intended changes will "over-improve"their property compared to others in the neighborhood.

The Home Sale: Securing the Deal

Ready to close the deal? Maybe not.

Sometimes unforeseeable issues arise just prior to closing the sale. Hopefully, with negotiation, most of these have a workable solution. Unfortunately, this is not always the case. But don't panic.Another buyer might still be found who is willing to accept the house as is.

Imagine that your prospective buyers are acouple with young children. They envision your unused attic as the perfect playroom for the kids but, before closing the deal, they request an inspection to see if it's safe and also if they will be able to install a skylight to provide natural light to the new space.

This inspection reveals that under the shingles that are in good condition is a roof that will only last another yearor two. The prospective buyers immediately balk, not wanting to incur the time and cost of replacing the roof. Their plans were to move in and only have to spend time and money renovating the attic. The additional cost of the new roof,they say, is just too much.

At this point, you sit down with the prospective buyers and calmly discuss the situation and how it can be solved tothe benefit of all. First, you agree to get another professional opinion on what really needs to be done. Inspectors are only human, and are not infallible. Once the extent of the damage is agreed upon, you can jointly decide what to do about it. While the buyers hadn't planned on that expense,you show them that instead of a limited roof life that they would get with most existing homes, they'll have a new worry-free roof that won't cost them in repairs for the next decade or so. Since the roof wasn't in as good shape as you had thought, you agree to lower the purchase price to help offset the costof the new roof.

By negotiating calmly and looking at all possibilities, what could have been a "deal breaker" can be turned into a win-win situation for both the buying and selling parties. In other cases, the most workable agreement for both parties might be for the deal to be called off. The seller can always find another buyer and the buyer can always find another home.

To protect yourself against last minute"buyer's remorse," make sure the purchase contract anticipates and closes as many loopholes as possible after all known defects have been fully disclosed.

Advice for First-Time Buyers

• Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.
     
• Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You'll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
     
• List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
     
• Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.
     
• Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:         
  1. One or more detailedmaps with your areas of interest highlighted.        
  2. A file of the properties that your agent has shown to you, along with ads you have cutout from the newspaper.             
  3. Paper and pen, fortaking notes as you search.             
  4. Instant or videocamera to help refresh your memory on individual properties, especiallyif you are attending a series of showings.             
  5. Location: Look at apotential property as if you are the seller. Would a prospective buyerfind it attractive based on school district, crime rate, proximity topositive (shopping, parks, freeway access) and negative (abandonedproperties, garbage dump, source of noise) features of the area?         

• Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?
     
• Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don't make a hurried decision that you may regret later.
         
• Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:         
  1. Include inspection& mortgage contingencies in your written offer.    
  2. Have the propertyinspected by a professional inspector.             
  3. Request a secondwalk-through to take place within 24 hours of closing.
  4. You want to check to see that no changes have been made that were not agreed on (i.e., a nicechandelier that you assumed came with the sale having been replaced by acheap ceiling light).   

• All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.

How to Negotiate with Sellers

Buying a home is one of the most important purchases most people will make. In order to make the right decision the first time, potential buyers need to be prepared. Consider the following beforestarting negotiations:

• Be prepared
  
  Research the housing market in the target area. Once you have information about the general area, focus on the particular property and seller. Look for answers to questions such as:     
  1. Why is the homeowner selling? (If they're movingbecause they find the area undesirable, you might want to consider thisissue.)         
  2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative factsabout the property that you need to know.)        
  3. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)         
  4. What is the seller's time frame for selling andmoving? Does it fit within your needs?        
  5. Are there any defects in the home or problemswith the surrounding neighborhood? (For example, is the roof so old that it will likely leak during the next storm? Is there a new construction project in the area that will lead to major traffic congestion?)    

As the potential buyer, you want the advantage. While you want answers to all your questions to the seller, reveal very little about your circumstances. Do not give the seller personal information such as your income, the maximum you are able to pay for a downpayment or the home, or when you want to move. Make sure that your agent knows not to reveal any such information to the seller or his/her agent.

Also, do not let the seller see how much you want the property. If you appear desperate or overly enthusiastic, the seller then has the stronger bargaining position. When meeting with the seller or listing agent, keep your emotions in check.

• Establish a Timeline
  
  Find out if the seller needs to have the sale closed sooner rather than later. If the seller is feeling pressured to sell, use that to your advantage in negotiating. Even if you, the buyer, are the one with the deadline for purchasing a home, don't let yourself be rushed into making concessions or a purchase you may regret later.

Types of Mortgages

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won't qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the longrun if you do your homework before signing on the dotted line.

• Fixed-Rate Mortgages     

• Adjustable-Rate Mortgages
         
• The Convertible ARM
         
• FHA and VA Loan

Fixed Rate Mortgages
Consider a fixed rate mortgage if either of the following describes you:

• You plan on living in your new home for many years, and/or           
• You are not a risk-taker and prefer the stability of knowing how much your payment will be each month.

Since most home loans are for a period of 30 years,if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.
This may not always be the best choice, however. If interest rates are very high at the time you take out your loan, with a fixed rate mortgage you'll be stuck with that high interest for the life of the loan (unless you choose to refinance). Conversely, if interest rates are very low,you'll come out the winner with interest rates that will stay low no matter how high interest rates go in the future.
The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:

        15-YearFixed-Rate:

• Pay off the loan in half the time of a 30-year loan.
• Equity builds up more quickly than in a 30-year loan.
• Payments are higher (whichmay be a problem if you lose your job or become unable to work).

        20-YearFixed-Rate:     

• Pay off the loan in 2/3 the time of a 30-year loan.            
• The overall interest paid is considerably less than for a 30-year loan.    

        30-YearFixed-Rate:     

• The most common choice, especially for first-time homebuyers, as it's the easiest of the fixed-rate loans to qualify for.            
• Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of "padding" between theamount you can afford to spend and the monthly payment for your desired property. 
• More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.            
• For income tax purposes, this term provides the maximum interest deduction.    

Adjustable-Rate Mortgages (ARMs)
If you are more comfortable in taking a risk withyour money or if interest rates are very high at the time you take out yourloan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential risein the interest rate.
Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term.
Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly.If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial paymentswill allow you to qualify for a larger loan than if you choose a fixed-rate.The downside is that your payments will increase if/when the rates go up.
Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury orT-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London InterbankOffered Rate]) and your payment will be based on the index your lender usesplus a margin, generally of two to three points. Get the formula used by yourlender in writing and make sure you understand what it means.
Fortunately, the amount an ARM can increase is limited. There are "caps" on how much your lender can increase yourrate, both for a period of one year and for the life of the loan. Plan ahead,and have your lender calculate what the maximum payment would be if your ratewent to the highest amount allowed by the cap for your particular mortgage. If you are not confident you'll be able to pay that amount on a monthly basis, perhaps you should reconsider this type of loan.

Convertible ARMs
If neither the fixed-rate or the adjustable-ratemortgage seems like the best option, perhaps the convertible ARM will be rightfor you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed.

Government Loans
Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.

• VA Loans: Veterans may qualify for a loan from the Veterans Administration. Thereis a limit on the amount you can borrow, so this option works best forthose buying a lower priced home.
          
• FHA Loans: The Federal Housing Association offers loans to lower-income Americans.Look for the phrase "FHA approved" when looking at ads forhomes.

Getting the Best Rates for YourMortgage

Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates as well.
A lower interest rate means a lower monthly mortgage payment, which can save you money in the longrun. Also, it is easier to qualify for a lower payment than a higher one.
You basically have two routes to finding the best rate. The first is to do all the research onyour own. The second is to use a mortgage broker.

Do-It-Yourself
With the advent ofthe Internet, much of this information is readily available online. Once youhave educated yourself sufficiently about real estate loans, all it takes is thetime and energy to sift through online resources to find the information you  need.
Rates change quickly.That great rate you find today might not be there tomorrow. Once you find therate you are looking for, submit a loan application and lock in that rate.

Some sources for interest rates on the Internet include:
Bank RateMonitor (http://www.bankrate.com)

                  E-Loan (http://www.eloan.com)
When comparing loans, make sure that you'recomparing loans of the same type. For example, you find that "Loan A"for a 30-year loan has a much lower interest rate than "Loan B" (alsofor 30 years). Upon further inspection, you find that "Loan A" istechnically an adjustable rate mortgage. Its payment is based on a 30-yearamortization, but becomes due through either payment or refinancing at the endof 5 or 7 years. These are frequently referred to as a 5-year or 7-yearfixed-rate mortgage. While both said "30-year", they are not the sametype of loan.
Ask the lender for a statement detailing all feesassociated with the loan. Factors such as "points" (loan fee),interest rate and "garbage fees" (extra fees which some lenderscharge) can vary greatly from one lender to another.

Mortgage Broker
If you do not have the time or experience to"do it yourself," look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates whohave refinanced or purchased recently if they have a broker they can recommend.You'll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind.

You've Opened Escrow, Now What?

Congratulations, you are on your way to owning your very own home!  Follow these suggestions (and your realtor's advice) so that escrow and settlement with go as smooth as possible.

You will be asked for a down payment on the home you are purchasing.  You can choose to put down as much or as little as you want (depending on your mortgage), but remember,the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.

During this period of purchasing your home, you are going to need an escrow or settlement company toact as an independent third party so that you know when and who to give yourmoney to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period.  This deposit check may also be held by an attorney or inthe broker's trust account. Make sure that there are sufficient funds in your account to cover this check.

The deposit check will be cashed. Assuming the sale goes through, this money will be applied tothe purchase price of the home. If for any reason the sale is not consummated,y ou may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it wouldbe wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

The period that you are "in escrow" is often 30 days, but may be longer or shorter.During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to anagreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:

• Inspection contingency: this should becompleted as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancelthe contract.          

• Financing contingency: once thecontract is signed, you have a period of time to secure funding. If, for anyreason, you are unable to secure funding during the period of time granted toyou by the contract (and the seller will not provide a written extension oftime), you must decide whether you want to remove the contingency and take yourchances on getting a loan. You may choose to cancel the purchasecontract.
  
  
• A requirement that the seller must provide marketable title.

With an attorney or title officer, review the title report. The title must be "clear" to ensurethat you do not have legal issues regarding your ownership.

Check into local and state ordinances regarding property transfer and make sure that you and/or theseller have complied with them.
Secure homeowner'sinsurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your bestinterest to apply for insurance as soon as possible after the contract issigned.

Contact local utilitycompanies to schedule to have service turned on when you close escrow.
Schedule the finalwalk-through inspection. At this time, you should make sure that the propertyis exactly as the contract says it should be. What you thought to be a"permanently attached" chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!