Do I Need An Agent?
I was at a recent home buying workshop and someone asked if she needs an agent.
In the Bay Area the buyer does not pay for the agent to help them find a home, help them negotiate; walk them through the process, etc. The buyer also does not pay the agent for helping them digest the comparable properties, or get inside information concerning the home or the comparables, educate them on the neighborhood, and more. The buyer never pays the agent anything. The seller’s agent pays the buyer’s agent for assisting them in selling the home, but the agent has a fiduciary duty and obligation to their client, the buyer.
So why wouldn’t you want someone to do all the dirty work, to bounce ideas off of, and to pick their brains with no cost to you.
Every transaction is different. The buyer’s agent does all of the above and more depending on each individual situation.
The most important task the buyer’s agent performs but hardly mentioned, is helping the buyer maintain their emotions. I have seen buyer’s get so excited about a home that they would pay anything for it. Well maybe not anything but more than necessary. A good agent will protect the buyer by making them see reality. On the other hand they might be offended by the seller’s response and might react by cancelling the transaction or respond negatively and blow the deal. An agent is the buffer.
An agent will help the buyer see through the seller’s messy home to see the bones and layout of the home. An agent will keep the buyer focused on the purpose of buying a home, facing reality and prevent them from getting sidetracked. I remember helping a newly married couple with a baby purchase their first home. They liked the well decorated home in a not so good area. They were not familiar with the area. They were prepared to write an offer and I did not want to discourage their enthusiasm. I suggested on the way home we drive by again. We did and they calmed their emotions and changed their thoughts on their own. Read more
Is it a Good Time to Buy a House in San Francisco?
People love San Francisco! It’s a diverse city with tons of character and charm. Its real estate appeal attracts people from all over the world! It hasn’t always been easy to purchase a home in San Francsco because of its sky high prices but things have changed! For example, you can buy a home in the Sunset/Parkside or the Mission District for around $500,000+.
The City is an awesome place to live. I know this because I grew up in the Sunset where the streets are wide and Ocean Beach is our backyard. Contrary to belief, there is actually plenty of parking for those who own their own homes in San Francisco. Houses come with garages and driveways and if you lived in the Sunset like me, there was always places to park on the street. Not true when you live downtown or rent an apartment and there are some people who don’t even bother owning a car in the City because there is a bus stop on almost every corner!
Rents are still high in San Francisco so if you want to live there, it would make sense to buy at this point and time. If you put 3.5% down on a house that’s $500,000 ($17,500) your payment would be $2,300 per month. That’s a 30 year fixed with a 4% APR. That’s not including property tax or PMI but it would be around the same amount as renting!
There are other deals to be found in San Francisco as well! There are smaller houses that require a little handy work for $400,000 in some areas like Visitation Valley and Silver Terrace or you can buy a very cool 2 bedroom condo in the Ingleside or Diamond Heights for the same price!
Anyways, there is always something for someone in San Francisco and if you can’t find exactly what your looking for, then let me tell you about the San Mateo peninsula but that’s another blog!
Should I rent or buy???
Many people have always asked, “Should I rent or should I buy?”. My answer, it depends… Each person has their own situation and their own plans for their future. I have always wanted to own my own home and have therefore belived it is better to buy then to rent. Have I rented before, of course I have. Some people may not plan on staying in the same area or not know if they will or not.
With the recent market activity in the area I service, the rental market has slowly continued to raise and become more expensive while the value of homes have come down over the past years and have made buying more affordable. The interest rates combined with the lowering of home values provide an even stronger argument for home ownership.
Under what circumstances would it be better to own? Under what circumstances would it be better to rent? Lets look at some of the reasons for each case. Read more
Should I rent or buy?
Should I rent or buy is a question that just about everyone asks themselves at one time or another. At what point does it make more sense to own a home than to rent one? Much of the decision comes down to personal choice…..Do I want to be in charge of my own home or have someone else be responsible for repairs and maintenance?
For me, the choice was a relatively simple one because I have always hated the idea of a landlord telling me what I could and couldn’t do in my home, so I always knew I would try to do whatever I could to purchase my own home.
In the end it often comes strictly down to the money. Sometimes, it simply doesn’t make sense to purchase a home, particularly if it means that you will be struggling to make the payments each month, let alone pay for property insurance and taxes. When my son and his wife were trying to decide whether to continue renting or buy a home, they went to this website and found it to be very helpful: http://www.decisionaide.com/MPCalculators/Menus/MP_Calculators.asp. When you get there scroll down the page and you will find a link for Renting vs. Buying. Read more
How Much House Can I Afford?
Well that depends…. how are you planning on purchasing your home? Do you have cash? Are you planning on getting a loan; if so, have you received a pre-qualification letter from your lender yet? Once you establish the way you will be funding the purchase of your home then we can figure out which steps you will need to complete to accomplish this.
Cash is pretty self explanatory. Lets talk about financing a bit. A serious buyer, in need of a loan to purchase a home will need to contact their lender for a pre-qualification letter. This is most often wanted, to be included in your offer package, when submitting to the banks in a short sale, reo and even Sellers in a regular sale. If you are in need of a lender remember, to make things easier on you, Prudential San Bruno, has a really good Mortage Company relationship that works in house , Guarantee Mortgage 650.589.1000. What else can I say but they are nothing less than awesome!
Actually getting a pre-approval often times can speed the home buying process up. Your lender will need to evaluate your debt to income ratio in order to establish how much house you can actually afford. Read more
What is a Mortgage?
A mortgage is often refered to as the amount paid for real property monthly. It is a loan that is secured by real property through the huse of a mortgage note. Most commonly a loan is gotten through a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.
There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation and legal requirements.
Interest: interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be higher or lower.
Term: mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization. Read more
Dates to Remember
Thursday Nov. 17 -6:30 – FREE Information Workshop on Energy Rebates -180 El Camino Real, San Bruno
https://energyupgradeca.org/overview
http://www.SDIHomePerformance.com
College of San Mateo, 1700 W. Hillsdale Boulevard, San Mateo, Bldg. 10 – Room 193
The San Mateo Association of Realtors will be hosting this workshop to help you understand the basics of how to buy a home – even if you’re not at that place in life yet – Home Ownership is still the key to reaching Financial Stability and in achieving the American dream. Now is the “Perfect Storm” with low interest rates, low housing prices and low down payments. Professionals in banking, title, credit, law and real estate will provide knowledge and interact with the public on the basics in planning for homeownership. No pre-registration required.
Why Do Banks Hate Short Sales?
Or do they? This question can often arise when buyer & seller alike are faced with short sale situations, as it sometimes feels like the short sale lenders are “dragging their feet” in approving a short sale. I recently attended the Asian Real Estate Association of America (AREAA) National Convention in San Francisco and heard from top executives at Chase, Wells Fargo and Citibank regarding short sales. All three of them stated that their organizations are actively seeking ways to improve the short sale process and that they definitely prefer short sales as an alternative to foreclosure. The numbers show that banks can lose between 10-45% in a short sale but that loss becomes 50-75% in a foreclosure situation. I also heard a broadcast from Bank of America just this week, stating that they are planning to “increase their short sales next year by 60-70%” and now have over 3000 people in their short sale division.
So if banks want to do short sales, why does it seem so long and difficult to get an approval? That’s a subject for another blog…
Jean Joh
Short Sales & Foreclosure Resource (SFR) Certified – National Association of Realtors
www.jeanjoh.com
Some Bank Websites re: Short Sales
Bank of America: http://tinyurl.com/ssbofa
Wells Fargo: http://tinyurl.com/sswellsfargo
Citibank: http://tinyurl.com/ssciti
Chase: http://tinyurl.com/sschase
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Recent Posts
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