Is the listing price for a short sale important?
What do I need to know about tax consequences for doing a short sale or foreclosure?
Is there really a difference in pricing between buying a Short Sale, REO or a standard sale?
What is the difference in the process between buying a Short Sale, REO or a Standard Sale?
What is the difference between selling as a Short Sale or allowing my home go into foreclosure?
Selling
How do I decide what the best price is when I list my home with you?
Should we do repairs, upgrades or stage our home before placing it on the market?
How long of a listing contract is typically required to list my home?
What type of Marketing should I expect to help my property sell quickly for the list price?
What are possible tax consequences and laws pertaining to selling?
Buying
Why is it best to get prequalified with a lender before looking at homes?
How long can I expect to look before finding a home?
How should an agent keep me updated on homes that become available that I might be interested in?
When looking for a new home, what does a good agent do that’s different from average agents?
What should I expect as a first time home buyer?
Personal
What separates Southland Properties from other offices?
I notice a lot of Agents refer to themselves as “Buyers Agent”, “Sellers Agent” or some sort of Specialist. What kind of Agent should I choose to work with?
What areas or communities does Southland Properties cover?
Is it better to work with a local agent that knows my community?
What is the advantage or disadvantage of using a veteran Realtor as opposed to a Rookie?
Why would I use Southland Properties instead of using one of the National Real Estate Offices like Remax?
Does a real estate agent really make a difference?
How do you feel about representing both the buyer and seller in a Real Estate transaction?
Costs/Pricing
How much will it cost me to sell/buy a home?
How long will it take for me to sell/buy a home?
Can you provide me firm numbers to back up your opinions?
How does an agent determine the value of my home?
Do school districts have an influence on home values and if so, why?
Is the listing price for a short sale important?
A: Paul Rodriguez feels It’s not unusual for Short Sale Listings to be listed at a price point far below market value. However, that is very misleading and sometimes potentially destructive to the process. It doesn’t hurt for a Short Sale to be listed at slightly below market value, maybe 5%. Ultimately, the lender will determine what price they are willing to accept for the property in order to avoid the foreclosure process. Listing a Short Sale at a price dramatically below the Market Price usually causes buyers to invade your privacy because they think they can steal a property, it causes your neighbors to be upset because it artificially lowers values in the entire neighborhood, it causes the lender to be less likely to work with you because they are concerned that something underhanded may be happening. The reason your Realtor will want to price your home at a ridiculously low price is because it will make their phone ring and they will pick up new clients off of your home. Back to the top
What do I need to know about tax consequences for doing a short sale or foreclosure?
A: Gary Boyer explains It’s important to talk to an attorney or your tax consultant in reference to possible tax consequences. In most cases there is no tax liability if the property you are selling via Short Sale qualifies as your primary residence. Do keep in mind that the Tax Laws change constantly and what was true last week may not apply today. Back to the top
Is there really a difference in pricing between buying a Short Sale, REO or a standard sale?
A: Daniel Boyer says in the long run, there is no difference. At the end of the escrow you own a home. The process can be extremely different. Keep in mind that normally when buying a Short Sale, REO, Foreclosure or any type of what qualifies as a “Distressed Sale”, you are usually buying a property at less than market value. Whenever you buy anything at a reduced price there are stipulations as to why you are getting a reduced price. The process can be very frustrating and the chances of the escrow falling apart are greater. If you are not willing to accept the risks associated with a Distressed Sale, it might be better to stick with Standard Sales. Back to the top
What is the difference in the process between buying a Short Sale, REO or a Standard Sale?
A: According to Kathy Boyer, the biggest difference is that when you are buying a property as a Standard Sale, you are dealing with the home owner directly. When dealing with a Distressed Sale, you are normally dealing with a variety of different people including the lender, attorneys, Asset Managers, Investors, etc. On top of that, all of these people typically report to some one who ultimately has to approve any decisions they make. Back to the top
What is the difference between selling as a Short Sale or allowing my home go into foreclosure?
A: There are typically two advantages to selling as a Short Sale rather than allowing your home to go to foreclosure according to Gary Boyer. First, you may be able to stay in your home longer through the Short Sale process as the banks normally take a long time to make decisions when negotiating a Short Sale. This isn’t always true, it’s possible for e lender to make the Short Sale process a very quick one. Once a foreclosure notice has been filed against a home, in California, you may have to move out in as little as 111 days. Second, your credit score is not damaged as much with a Short Sale as it is with a Foreclosure. The amount of that difference depends on how far behind you get on your mortgage as well as other debt you may have. Back to the top
How do I decide what the best price is when I list my home with you?
A: When listing a home there are usually 3 price points to consider says Cathy Eichhorst, the price the seller wants to get, the price the buyer wants to pay and the price the appraiser will appraise the property for. Very seldom are these three prices the same. The biggest problem for a seller is that if your starting price is too high, you will typically end up selling for less than Market Value if you are in a position that you must sell. Back to the top
Should we do repairs, upgrades or stage our home before placing it on the market?
A: Daniel Boyer thinks that this is one of the toughest questions to answer for a seller. It depends on the cost of the repairs and how much they will affect the value or salability of your home. There are many repairs that must be done to make the home presentable for a buyer. There are many other things that you need to determine if investing the time and money will be worth it. For example, fixing a broken tile on the kitchen counter will make the home easier to sell but won’t get you a higher price. Replacing the tile with a formica counter top may me the kitchen prettier but probably won’t bring a higher price either, however, replacing the cabinets and adding a granite countertop would definitely bring a higher price. Now the next question is: will it bring in more than it costs? There is no reason to spend $10,000 for new cabinets only to generate a $5000 higher price point. Back to the top
How long of a listing contract is typically required to list my home?
A: Laura Cropp shares that typically the length of a listing contract is probably 6 months. However, in a tough Real Estate Market, some agents would prefer the listing contract to be for 1 year. Keep in mind that the length of the contract is negotiable, just like the price and terms of the contract. However, it’s important to remember that if a home doesn’t sell by the end of the contract, an agent is paid nothing regardless of the time and money they have spent to market a home. There is no other job, that I’m aware of, where you work for someone for months and have that kind of out of pocket expenses and get paid nothing. Back to the top
What type of Marketing should I expect to help my property sell quickly for the list price?
A: Gary Edmonds feels that there are six types of marketing that are necessary to help sell your home fast and for top dollar.
- VideoTours: Creating a video tour is vital to allow a prospective home owner to view as much of your home as possible on line.
- Professional Photography: A Professional photographer will shoot clear and compelling photos in order to show your home in the best light.
- Maximum Photos Allowed: The maximum amount of photos allowed should always be included with any internet marketing of your property. This will again allow a potential home buyer to see enough of your home to make them want to see it.
- Realtor.com Listing Enhancements: Realtor.com with 583,000,000 web pages views is the industry leader in Home Search Websites. It is imperative that every enhancement available on this sight is utilized.
- Listing Syndication: with over 50 syndication partners displaying your listing on more than 300 web destinations online. Syndication is becoming one of the fastest growing listing advertising mediums on the Internet today.
- Print Advertising: As the internet has become the most vital marketing tool available, it is still important to utilize print advertising to give your home as much exposure as possible. Back to the top
What are possible tax consequences and laws pertaining to selling?
A: All of the agents at Southland Properties are required to take educational classes on a regular basis in order to keep their standing at our office. Especially in today’s Real Estate climate, it is even more important that we understand the legal and Tax consequences with any Real Estate Transaction. The cost to purchase a home has increased dramatically in the last 3 years due to increased fees and regulations placed on the industry by the Federal Government. Unfortunately there was and still is unscrupulous people in Real Estate. The Federal Government has chosen to increase regulations and fees rather than use laws already on the books to punish those who chose to take advantage of the General Public. Because a Real Estate transaction involves such a large amount of money, it’s easy for dishonest people to take advantage of a small amount of people and reap huge rewards.
The best defense of something like this is to always choose to do business with some one that you have know or that comes recommended to you. Some one that you will see at the Little League games on Saturday or Church on Sunday. Back to the top
Why is it best to get prequalified with a lender before looking at homes?
A: You would never start looking at Lamborghini’s if you make $10 an hour. For the same reason it’s important to know exactly what you can afford prior to starting to look at homes. If start looking at $500,000 homes because you went on a web site and used their calculator to figure a mortgage, only to find out you can only afford $300,000, you will be disappointed with the rest of the homes you look at. Buying a home, especially your first home, should be a magical and exciting time of your life. Unlike when you are buying a car or other major purchase, there are both obligations and incentives to buying a home that need to be taken into consideration. There are tax advantages when buying a home with a mortgage. Your interest and property taxes are deductible but there are also other expenses like utilities and maintenance that you don’t have as a renter. That is why it’s important to talk to a lender prior to starting to look for a home. Back to the top
How long can I expect to look before finding a home?
A: Valerie Cichon says, “Knowledge is said to open doors….this is literally true when it comes to buying a home. How long should you expect to look before finding your dream home? Well…..You may end up buying the first home you see or it can take years. As Realtors, we definitely don’t work by the hour and we never give up but just remember there are many things to consider. Are you ready to buy a home? How much can you afford? How much space do you need? What areas of town do you like? This is not the only thing to consider but it all takes time. The biggest factor when looking to buy is the stability of the current market. If you have a steady or declining market and interest rates are steady, it doesn’t hurt anything to take your time. However, when prices and interest rates are increasing, waiting too long can end up putting you in a position that you are priced out of the market. When you find the perfect home, you will know it. As Realtors, we see it in buyers faces all the time.” Back to the top
How should an agent keep me updated on homes that become available that I might be interested in?
A: If you are a buyer, you will find yourself talking to your Realtor almost daily up until the time you find a property and open escrow. If you’re not, find a new Realtor. New homes go on the market every day, no, make that every hour. The best deals go quickly, so a good Real Estate Agent will be constantly communicating with you until you find what you want. Once in escrow, your line of communication will change dramatically from talking to your agent daily, to talking to your loan officer daily. Your agent will be working in the background, setting up inspections, appraisals, making sure escrow is proceeding accordingly and that all the involved parties are working together. Much of the paperwork you fill out during the process can become a bit overwhelming and your Realtor should always be the source that you can get any questions answered. Back to the top
A: First, make sure your agent communicates well and responds in a timely manner. Please keep in mind what you think is timely and your agents definition of timely may be very different. Make that clear right away to avoid misunderstandings. If you expect a response within 10 minutes to Text Messages and you later discover that your Agent doesn’t use Text Messaging, you are going to have a frustrating experience. Most Realtors utilize, Cell Phones, Text Messaging, Email, Instant Messaging, pretty much everything but smoke signals. If you expect everything delivered by mail or in person, that needs to be made clear at your first meeting. Back to the top
What should I expect as a first time home buyer?
A: Brandon Beckwith can share with you that your life is about to change forever. Like getting married, having a child or changing jobs, buying your first home will be one of the most exciting times of your life. Normally your first home is just that, your first home and there will be many more to come. For that reason, it is important not to get too emotionally involved even though it is hard not to. Most people stay in their first home for 2-5 years, however some do stay forever, so this can be a huge decision.
When choosing your new home, there are many aspects to consider. Finding a home that you can comfortably afford is one of the most important criteria to consider when you begin your search. Sitting down with a lender to discuss what you can qualify for and how much you are willing pay each month is an easy way to determine the price range you should be looking in. Other criteria to consider are the neighborhood, schools, and sometimes the ability to add on just in case you end up staying longer than you planned.
For some people their first home becomes their first investment. It is not unusual for a first time home buyer to keep their first home as a rental property when they move. The prospect of the home being a rental property might be something to consider as well. Back to the top
What separates Southland Properties from other offices?
A: There are many factors that separate us from other offices.
First, we have many Agents who have been with our office since we were founded in 1987. That is un-heard-of in Real Estate where agents seem to move form office to office as often as Elizabeth Taylor used to change husbands.
We understand that we work for you. Just like any other job, you are our employer.
We understand Marketing. The general public thinks that as Real Estate Agents we get the client to sign a contract, put the information on the Multiple Listing Service and wait to cash a commission check. Check out our Marketing Plan and you’ll see we do more than any other office when it comes to marketing.
You will find that most Franchise Real Estate Offices make money by renting desk space to agents and selling them proprietary items like signs, business cards, marketing material, etc. At Southland, we don’t make a dime unless we sell homes. Our agents don’t pay the office for anything until they close an escrow, so if you aren’t successful we aren’t successful.
Technology, sometimes I think we have too much, but for you gadget geeks, we have every tool imaginable to make you experience with us as user friendly as possible.
That being said, we still understand that the only way to find your home or to sell your home is good old fashioned leg work. Our agents still caravan every new listing that comes on the market and we still preview most of the homes we show our buyers. You can tell a lot by searching the internet, but you never know the whole story until we physically see a home. Back to the top
I notice a lot of Agents refer to themselves as “Buyers Agent”, “Sellers Agent” or some sort of Specialist. What kind of Agent should I choose to work with?
A: Ronny Geenen states: Choosing a Realtor is often a personal preference, because over the years all Residential Specialists are trained in all aspects of Residential transactions and procedures. However, the difference between residential Real Estate agents and those who specialize in Commercial, Multi-family or other types of Income Real Estate can be huge due to major math involving. Someone who may be very comfortable selling apartment buildings may know very little about marketing a manufacturing building. The ways that you determine income are different on every type of investment property. Back to the top
What areas or communities does Southland Properties cover?
A: In todays Real Estate Environment, most Realtors do not concentrate their efforts on individual communities anymore, especially in Southern California. With the internet, it is now possible to do research on communities much easier than in the past. Although most of our business is in the eastern San Gabriel Valley and the Inland Empire, we have the ability to help individuals in most of Los Angeles, Orange, San Bernardino and Riverside Counties. Back to the top
Is it better to work with a local agent that knows my community?
A: Zak Bushey says it is always best to work with someone that is knowledgeable on your community. The most important reason for people buying or selling a home comes down to their family situation. If you are buying a home in a community of course you will want to know about schools, shopping, local entrainment and safety. Communities in this area tend to be very close knit and our office is very involved in fundraisers and city events. For that reason we stay up to date on information that is important. This translates to the sale of your home also. If potential buyers are coming to look at a home, there is a benefit to having an agent that is passionate about the neighborhoods and city so that they can relay that personal knowledge to the buyers and get them excited about becoming part of our community. Back to the top
What is the advantage or disadvantage of using a veteran Realtor as opposed to a Rookie?
A: Susan Chase says when choosing a Realtor, there are many things to consider, and experience is just one factor. While some people may tell you that the best option is to choose a Realtor with experience that is not always true. What you need is a Realtor that is accessible to you, one you are comfortable working with; one you believe is invested in you and your unique situation. A new Realtor is often working with with only a few clients, which makes them attentive and responsive to your needs. They are often more eager to make things happen for you as your success is building their success as well. While some veteran Realtors may rely heavily on on past achievements and past practices, a new Realtor is fresh out of coursework that has schooled them in the latest rules, newest regulations and best practices of real estate transactions. A great Realtor, experienced or not, will surround themselves with a strong community of reputable Realtors who will help him or her resolve any difficulties that your particular transaction might encounter. So when you find a Realtor that you are comfortable talking to, feel valued by, one whom you trust to handle your affairs with professionalism and integrity, and has placed themselves in a well qualified agency, that is the one to choose, whether they have been in the business 25 years or 25 days. Back to the top
Why would I use Southland Properties instead of using one of the National Real Estate Offices like Remax?
A: There are some major differences between using Southland Properties and the Major Franchises and all of those differences are in Southlands favor. First and foremost, we have the ability to Market your property for sale without the restrictions put on some Franchises. Back to the top
Does a real estate agent really make a difference?
A: Heather Riffner says of course it makes a difference. You may not realize it but a Realtor can make an extremely vast difference in your life and change your future for the better. There are so many things that factor in when buyer or selling that the average client doesn’t know. A good Realtor can help with the decision of where you will spend your life, raise your family and prepare for other major financial decisions you make like College for your kids, paying for your daughters wedding and being able to retire comfortably. Think about the difference between someone who chooses the right community to buy their first home in a location that has a secure business environment, good schools and a stable Real Estate Market and some one who buys their first home with no guidance. A good Realtor will be with you every step of the way and can help pave the way to a wonderful future for you and your family. Back to the top
A: Dennis Beckwith says, “I have always viewed this situation as a mixed blessing. There are parts of the transaction that are made easier for both my clients and myself, because everyone is more aware of what’s going on, there are no communication lapses between agents as can be the case in most “traditional” transactions. I’ve heard it said that “my favorite agent to work with is myself”, and there’s truth in that. However, on the flip side, the negotiation process can be tricky (not only the initial contract, but a few points along the way). Both parties would like to get the best deal and they may view that as difficult if they share the same agent. When this potential situation arises I always tell my clients that it may require me to do more work during the negotiations. There may be a couple more steps or back and forth’s in that process. I let them know that I will provide information to them and my opinion related to facts of the property or issues, but not address the area of what the other party may or may not be thinking (unless instructed to by that party). If we can get to a place that works for both parties, great! I’ve been involved in a fair number of these transactions and I’ve found they have typically ended well because the parties often feel satisfied with a more informed process.” Back to the top
How much will it cost me to sell/buy a home?
A: This can be a very complicated question that can be answered in a variety of ways. You can ask the seller to pay the buyers closing costs, the buyer can get a no point loan or pay extra to buy down the interest rate. The seller can sell their home “As Is” or pay for a variety of repairs. If you want a short answer, with typical conventional financing, a buyer will pay between 2%-4% of the sales price of the home in costs, the seller will pay between 6%-8%. Buyers costs will include loan costs, prepaid taxes, insurance, interest, escrow & title fees. While the sellers costs will include escrow, title, termite repairs, various government fees as well as commissions. Back to the top
How long will it take for me to sell/buy a home?
A: Keith Reeves says pricing a home is not an exact science. When you are selling your home you need to price it according to the market conditions. Home prices are based on comparable sales. If you price your home above other properties of comparable condition it will attract the attention of fewer buyers and it will take longer to sell, or it will not sell at all. If you price your home below other comparable properties it will attract the attention of a broader range of buyers and it will sell quickly. An experience real estate agent can help you determine a comparable range. For example, if you have a house which is comparable to other houses in the neighborhood which have been selling for $300,000 and you price your house at $300,000 you might sell it in 4-6 months. If you price it at $345,000 you may not sell it at all or at least not at that price. If you price it around $265,000 you will probably sell it very quickly as many eager buyers will want to buy what they perceive to be a good deal. Back to the top
Seldom are two properties exactly comparable, and amenities which one buyer finds attractive might scare another buyer away. A pool, for example, might attract some buyers, but might eliminate a property for consideration by another buyer. Again, an experienced agent can help you determine how the features of your home add or detract from its value. Once you have an offer it generally takes 30-45 days to close the sale, assuming the buyer is using a loan. Cash buyers are able to close much more quickly. If you are purchasing a home the time it takes is ultimately up to you. If you are in a hurry and have good credit or cash you can purchase a home fairly quickly. If your credit is marginal or you don’t have a strong down payment you may find it takes longer as you are competing with stronger buyers. Back to the top
Can you provide me firm numbers to back up your opinions?
A: This is the easy part of the process. Historical number almost always tell the story as to what you can expect as a buyer or seller. As Realtors, we have access to all Real Estate Transaction numbers whether properties were sold by a Real Estate Agent or not. If homes in a particular neighborhood are selling for between $480,000 and $520,000 it’s pretty safe to say that you are not going to buy in that neighborhood for $200,000. At the same time, if you are selling a home in that neighborhood, don’t expect to get $800,000. Believe it or not, Real Estate is a pretty exact science for most transactions. Back to the top
A: Zak Bushey feels that the biggest factor in determining your homes value is to compare it with recent sales in the same neighborhood within the last 90 days. This includes looking at the home size, lot size and overall property condition against those that have sold. After determining a base value, you will then want to look at the upgrades and property characteristics that may affect your value. For instance, updated kitchen, bathrooms, pools and views can all be used to adjust a homes value up or down depending on what the other sales had. In this market homes truly sell for the amount determined by other comparable. There are many homes on the market to choose from and a buyer will simply not overpay. If it’s priced correct it will sell quickly. If it’s priced too high, it will sit without any serious offers or even showings for months and may be a sign to do a price reduction. If you happen to price it too low, you will get multiple offers and may wish to counter with a higher price or adjust the sale price. The bottom line is by listing your home for an adjusted comparable price to the last sales in the neighborhood, you will set yourself up for a successful transaction and a lot less stress. Back to the top
Do school districts have an influence on home values and if so, why?
A: Kim Gillett finds that schools are a very important factor in area’s desirability and home value. Even for buyers and owners who do not have school-age children, good schools can ensure consistent demand for properties and strong prices. There are numerous education related web sites that provide free school comparisons, test results, etc… Two that I have found to be helpful are Education.com and GreatSchools.net. You can find homes right across the street from each other where the value may differ by as much as 10% just because of the school district. Back to the top
