Gary Kent Team

If you’re selling a small or large apartment building, often it’s marketed as, “Show with offer.” So the investor makes an offer, a showing is arranged with the tenants, and then the buyer decides if they still want it and at the price they offered. If you’re selling a house or condo, most buyers will be “owner-occupants”, aka people who want to live there, rather than investors. And few owner-occupant buyers would be comfortable making an offer without going inside. Thus you’d be much better off arranging showings while the home is for sale vs. only allowing showings when you get an offer.

Sorry, but I don’t. I want you to do something. Tell that price to a friend of yours, then ask them to repeat it back to you. Odds are, they can’t. Why? Our brains have a finite amount of cognitive resources. You could say we have limited bandwidth. Most psychologists say we humans can only remember 7, plus or minus 2 “chunks” of information. That’s why remembering a phone number is tough for most people. It’s 10 numbers, or “chunks.” Now, for some people, common area codes become one “chunk” and if the number has some pattern to it (like 858-555-2200), it’s easier. Back to prices… When our senses are overloaded, we can get confused. You don’t want your buyer to be confused, do you? For me, the rule when doing “value range pricing” is KISS. Keep It Simple, Sally. So I recommend you do $795,000 to $825,000. (By the way, I’ve found that ranges of 7-10% are optimal, but I won’t go off on a tangent here and explain why.)

Good question. First of all, not all mold is hazardous. So it depends on what kind of mold it had. Second, if the mold was fully removed AND the cause of the mold was corrected, you should be fine. So you should ask for the paperwork regarding the removal. While it’s best to have mold removed professionally, it can still be done by a non-professional. If you have any doubts or want to be extra safe, you can hire a mold pro to inspect and/or test to see if there’s still mold. FYI, I had mold in my home and had it removed by a pro. It hasn’t come back and I’m not concerned about it.

I don’t have enough information to answer that. But here’s what I can tell you… First, North Clairemont’s zip is 92117, which includes Bay Ho and part of Bay Park, which are pricier than “Clairemont proper” and thus skew the median price upwards. Second, I don’t know your source, but often I see medians based on a small number of home sales and thus are too small a sample to be reliable. Third, even if the median is accurate, you can’t go by median prices to determine the value of a specific home. My suggestion is to invite me by to see your home. I’ve literally priced over 10,000 homes, so I should be able to give you a pretty accurate figure.

Ironically, in an effort to inform people of all they should know when buying or selling real estate, there’s such an information overload (TMI) that people don’t read the contracts and many important points are missed. This is one more reason it’s so important that you work with a reputable agent you can trust.

A home equity LINE (aka HELOC, acronym for “Home Equity Line Of Credit”) is an open line of credit against your home. The balance goes up and down as you borrow and repay the funds. The line can be open with a zero balance. A home equity LOAN is simply a first, second, third (etc., but hopefully not!) mortgage that starts at a set amount. You take all the money at once. It typically must be repaid monthly, and once it's paid in full the loan is paid off and done. Home equity loans usually are taken out for a specific purpose: remodel, debt consolidation, investment, etc. Home equity lines may be taken out for similar reasons or as a way of having rainy day money available if needed in the future.

It doesn’t sound like the agent explained the benefits to you of talking with a lender before looking at homes. You will find out: 1. How much home you can afford within your budget for a monthly payment 2. The maximum home price you qualify for 3. What that payment would be 4. What things you might be able to do to: a. Improve your credit b. Get a lower rate c. Increase your buying power 5. Answers to any questions you have That being said, our policy is that we’d be happy to show one home to you without having you talk with a lender. But no smart, professional agent would show anyone multiple homes without confirming that they’re qualified. It would be a disservice to the client and the agent.

People ask me that now and then. No, real estate contracts do NOT have any rescission rights for buyers. (The seller only has rescission rights if they are in foreclosure, live in the home, and are selling to an investor.) However, most contracts give the buyer an “investigation” contingency period, typically 7 to 17 days. During this time, you have the right for any reason to decide not to buy the home and receive your full deposit back.

There’s a lot to know, but here are some basics and smart tips not everyone thinks about: 1. Upon acceptance: a. Get your deposit into escrow within 3 days (or whatever timeframe your contract says). b. Schedule your home inspection ASAP. c. Get your loan going ASAP. d. Call your insurance agent to get your insurance started. 2. Just prior to closing: a. Arrange to transfer your down payment $ to escrow. b. Schedule your final walk-through inspection. c. Call in advance to get your utilities on. d. Remember, if escrow doesn’t close on time, it’s not your home to move into yet. 3. After Closing: a. Change the locks (who knows who has a key!) b. Possibly clean the carpets. c. Find your water shutoff and breaker box. d. Ignore scam letters telling you to pay money for your deed. You’ll get the deed via mail in a few weeks.

Sorry, but VA loans are only for your primary residence.

I was very hesitant for many years to put “sold as is” in my marketing for a home. I felt it gave the impression that there were serious problems that the seller was unwilling to fix. So yes, I think there WAS a stigma to saying a home was being sold As Is. But I think that’s changed. It still means the seller doesn’t want to make repairs, but I no longer think it implies that the home has significant issues. That being said, know that marketing your home As Is or even writing that in your contract with the buyer does not preclude the buyer from still requesting repairs or credits.

Personally, I’m NOT a fan as most of my clients who used (or tried to use) online lenders had poor experiences. They tend to be based out of town and impersonal. And because they don’t have local representatives, there’s no personal relationship with local homebuyers and agents, creating less motivation to provide the best service. So in my humble opinion, you’re at a much greater risk of having a bad experience if you use an online lender.

My answer may sound self-serving, but you’ll agree it makes sense: The only way to choose an agent is based on their track record. Fancy presentations and “happy talk” are nice, but they’re just promises. If you want something you can depend on, the odds are that if an agent is successful and experienced and has done well for many clients, they’ll do well for you too. This brings up the question: What is a good track record? The BARE MINIMUM is that they average 25 home sales per year and have sold over 200 homes in their career. (By comparison, I’ve sold over 5,500 homes in my career.)

Imagine you’re the seller and you have two offers. One is low, but the other is at a good price with terms you’re happy with. Many homesellers don’t want to risk losing the good offer by making a “multiple counter offer” or putting the “good” buyer on hold while they explore the low offer. That’s probably what happened in your case. The moral of the story is that if you really want a home, don’t make a low offer, especially if there are other offers on it.

It’s a judgment call, but since it won’t detract when your home is shown (assuming your A/C is off), I recommend you do not change it now. First of all, be sure to mention that in your disclosures. Second, when the buyer for your home has their inspection, they normally request a list of repairs. Assuming the A/C is on the list, we can use that as a negotiating chip: “We agree to the large expense of a new A/C (or, better, a $4,000 credit), but not most of the other items.” And if it doesn’t come up, then you’ll save the $4,000.

Nope. It would be a clear violation of the Realtor® Code Of Ethics, Standard of Practice 16-13: All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client. A buyer’s agent is prohibited from asking a seller (whose home is listed) such questions or doing anything resembling negotiating directly with them. This rule is often broken, so homesellers should be on guard for agents unethically trying to get them to share information that puts them at a disadvantage.

Keep in mind that buying fix and flip properties is highly competitive. You’ll be competing with investment groups that can buy all cash and make repairs much more cost efficiently than the average person. That being said, here’s an idea…tell me if it makes sense for you: 1. Buy a fixer condo and move into it a. This gets you out of living with family, which you said you don’t enjoy b. This allows you to get an owner-occupied mortgage at a lower rate and lower down payment c. You’re also living there, so you’re not paying a mortgage on an empty property 2. Remodel while you live there a. Not fun for most people—that might be a reason NOT to do this 3. Stay for 2 years and sell at a profit a. By owning and living in it for 2 years you can take advantage of IRS Section 121 and pay ZERO tax on your gain (confirm with your tax pro) Either way, let’s figure out a time convenient for you so we can get together and make a game plan…

Good question, but impossible to answer. Sure, I could say La Jolla or Rancho Santa Fe, right? After all, they’re the most expensive, so they should be the best. But for you (and anyone), it all depends on: 1. Your budget 2. What type of home you want (house, condo, etc.) 3. Where your friends and family live 4. Where you work and how close to work you want to be 5. Whether you want to be within walking distance of shopping, public transport, etc. 6. What you like to do in your spare time 7. What weather you like 8. The list goes on… To be sure we find the best neighborhood for you, I recommend that we find a convenient time for you to come to my office. We’ll ask you a few questions and based on our knowledge of different neighborhoods, we’ll find you the perfect one!

In theory we’d like to think that if homebuyers and their agents are serious about a home, they’ll change their schedule and work with us on showings. The reality is that many homebuyers are not that flexible. They have busy schedules or work long hours. Arrangements for showings are often done the night before or morning of. And if an agent has many homes to show, often the hard-to-show homes fall of the list. Being “in the trenches,” I know that when you create obstacles to seeing a home, you lose showings, your home takes longer to sell, you get a lower price, or you may perhaps get no sale at all. But we can alleviate the situation. Perhaps I can talk to the tenant and have them understand things may be a bit different than you discussed.

Neither would I! And the good news is that it doesn’t send that message at all. There’s an old “joke” in marketing: “What’s everyone’s favorite radio station? WIIFM, also known as What’s In It For Me.” In other words, everyone — including you and me — constantly sees things from our own perspective. (I put joke in quotes because, as you noticed, it’s not actually funny.) As it applies here, most homebuyers and agents will see your reduced price from their perspective, which is that your house is now priced more attractively than it was before. They probably will not give much time pondering your motivation for dropping the price.

If you’ve been a particularly good or (ironically) bad tenant, your landlord may be willing to let you out of your lease early. We’ve had many clients simply ask their landlords nicely to let them out of their lease early and gotten a “yes.” Others have offered to help find a tenant, have actually found a tenant, or offered to pay an extra few weeks of rent and gotten their landlord’s OK. Ask, and ye might receive…

Fannie Mae or FNMA, stands for the Federal National Mortgage Association. It’s a major market for buying and selling home loans and they have certain critical guidelines. If a loan doesn’t meet FNMA guidelines, it’s harder to sell, which typically results in a higher interest rate. It was a privately-held corporation, but backed by the full faith of the U.S. government. Due to the mortgage crisis a few years back and all the related losses by “Fannie,” it was taken over by the federal government, causing taxpayers hundreds of billions of dollars in losses.

Great question, I hear that a lot. In my experience, the most expensive costs that come up, in roughly declining order are: 1. Settlement/structural problems 2. Sewer line that’s broken or corroded 3. Mold remediation 4. Unpermitted room additions 5. Roof replacement 6. Major plumbing (other than #2) 7. Major electrical 8. Major termite repairs

Great question! Indeed, the buyer’s down payment doesn’t impact the amount of your check at closing. (Unless you act as bank and “carry” a first or second loan against the house, but that’s another story.) So while it doesn’t affect the amount of your check, it may affect IF you get the check. Here’s what I mean… All other things being equal, the bigger the down payment, the more likely someone tends to get approved for their mortgage. So a buyer with 30% down is much stronger and more likely to be approved than one with 5% down.

You can, but that’s not what home inspections are for. Home inspections are for you to find significant defects that you weren’t aware of when you made your offer. Based on what you find, you can decide if you still want the home and if you want the seller to repair or credit you for those defects. You obviously knew the condition of the carpet when you made your offer, right? So it can be viewed as an act of bad faith if you made your offer aware of the carpet, presumably took that into account in what you offered, then asked for a discount due to something you knew in the first place. My advice: take the carpet condition into account in your offer and don’t ask for any credit for it from your home inspection.

I appreciate your frustration. San Diego home prices are amongst the highest in the nation. So while I don’t disagree with you, I feel compelled to address a fallacy I’ve heard many people express. That fallacy is: “Prices have gotten so high that no one can buy a home.” This contradicts basic economic theory. If prices actually got to the point where no one could buy a home, they would by necessity drop until they reached a point where people could buy a home. That’s how free markets work. So, while San Diego home prices are indeed high, homes are selling every day.

Yes, it is legal. What may or may not be legal is actually requiring you to get your loan from their lender. That being said, I completely understand how you feel. But please also see this from the seller’s perspective… You’re asking the seller to take their home off the market based on your ability to get a loan. If your loan was denied, the seller would lose many weeks and have to start over. Depending on their situation, this could be a disaster. Often people make offers on my clients’ homes and present us with qualification letters from lenders I’ve never heard of. I would be doing my client a disservice and putting them at unnecessary risk if I told them to accept at face value a letter from a random lender. And I can’t tell you how many times I’ve had my lender “cross-qualify” the buyer (as it’s called), only to find out that random lender missed or even misled us and the buyer was unlikely to get financing.

Rarely. In my experience, probate appraisals are about the most inaccurate appraisal you could possibly get and tend to be high. Recently, a client called me about a home she was inheriting from a relative. The probate referee (as probate appraisers are called) had put the value at 1.25M. Even the most optimistic valuation would price the home at $950,000. So my advice is to never consider a probate appraisal to be an accurate evaluation.

Agents are trained to present an air of success. It’s the old “fake it ‘til you make it.” But you might be shocked to discover that many agents you’d think are successful are anything but. They have a couple of sharp looking outfits, VERY good hair, and a leased Mercedes. But what they don’t have is much actual experience or success selling homes! My advice is to ask them for PROOF of their track record. And if they haven’t sold at least 100 homes, find an agent or team who has. For comparison, I’ve sold about 5,500 homes in my career. (Yes, I had to throw that in there!)

Sure, here’s one… When you look at homes online, pay special attention to the ones with very low-quality photos. I don’t mean ugly homes necessarily, but the homes with photos that look like they were taken by an 8-year-old using an iPhone 1. Homes with photos that are… • Dull or dark • Narrow (the photo is in “portrait” instead of “landscape”) • Crooked • Unfocussed • Rotated sideways (yes, I’ve seen many of those) • Show the agent in the mirror (my favorite!) • Etc. …are almost certainly much nicer than they look. So agents and other homebuyers may be skipping right past those homes as they move onto the next one with bright shiny photos. And that means you may find an overlooked home that’s pretty nice. There’s your tip!

First of all, how nice you are to be so thoughtful. This is relatively uncommon, so there’s no accepted protocol. You can give them a bottle of wine, flowers, or whatever you feel is appropriate. And you can leave it in the house or give it to them in person. Do I think it’s a good idea? Yes, for two reasons. The first is that it’s just a nice thing to do! The second is more practical. It’s always good to have warm, friendly feelings in a sale, just in case things go sideways during escrow or after closing. It just makes the resolution so much easier when both sides like each other.

From your question, it sounds like you only asked to be a backup offer, but never had it in writing and signed by you and the seller. If that’s the case, you had no contract with the seller and they were free to sell to the other party. Next time you want to be a backup offer, put it in writing and get it signed by the seller. Then you’ll have a binding contract.

It’s MUCH faster than you might think. In fact, it only takes a couple of days to set up. So it shouldn't delay your transaction. That being said, never wait until the last minute to set up your exchange. Tell your agent and your escrow officer immediately that you’re doing an exchange. And be sure your agent puts the appropriate verbiage in your purchase and sales contract. What IS the appropriate verbiage? Something to the effect of… “Buyer to cooperate with seller’s 1031 exchange at no cost to buyer or delay to the transaction.” If you’re the seller, then swap “buyer” and “seller” in that sentence.

Yes, I’m a member of several large networks, including the Keller Williams Real Estate network. Will that sell your home? Not likely. The whole “use me because of our big network” sales pitch is really just that, an empty sales pitch that some Realtors say because they don’t have much else to offer. So yes I’m a member of a network, but don’t choose me because of that. Choose me because of my long and successful track record.

Great question. First of all, I love, love, LOVE dogs. But even though you and I and most normal people love dogs, you should never bring your dog into a home you’re viewing without permission. The owner may be allergic, like my wife. And even if not — and this may change over time — it’s just not considered appropriate by most homesellers for you to bring a dog in without asking beforehand.

Yes, you don’t want a regular real estate “sales” agent trying to manage your property. And you don’t want a property manager trying to sell your property. Even though both jobs require real estate licenses, they’re entirely different skill sets. Few property managers have sold many homes, nor do they… - Know the real estate sales market - Know all the laws and practices you must follow to avoid liability - Know how to evaluate comps and price a property - Have homebuyers they’re working with - Know real estate contracts - Have experience negotiating offers - Know the ins and outs of navigating your sale so it closes The list goes on…

Only one that I know of… Because value range pricing is rarely seen outside of San Diego, none of the national websites support it. They only have a field for one price, not a range. Their work-around is to use the top of the range as the price. So if your range is $950,000 to $1,025,000 and a buyer searches on the site up to $1,000,000, your home will NOT show up. In my opinion, the benefits of value range pricing outweigh this one drawback. So I do use value range pricing on about 1/3 of the homes I sell. But it’s always up to the client whether they want to use value range or traditional (one price) pricing.

I’m no attorney, but in my opinion, that is NOT legal (and is, in fact, highway robbery!). Too many HOA management companies are raking it in and breaking the law in the process. My understanding is that per California Civil Code § 4530(b)(1): Allowable Fees – An association is permitted to collect a reasonable fee based upon the association’s actual costs for procuring, preparing, reproducing and delivering the requested documents, but is not permitted to charge additional fees for delivering the documents electronically. The association’s costs may include fees charged by the association’s managing agent for the production of the documents. I can’t imagine that their actual cost is anywhere near $700. Sadly, unless you hire an attorney or threaten legal action, you are at their mercy.

This is a great question! Before I answer, let me clarify one thing you said. While you could have a contractor inspect the home for you, most people get a professional home inspector, most of whom are not contractors. As far as who will advise you on what’s a “big deal” so to speak, that could be the inspector and/or your Realtor. Either way, here’s some general guidance. In approximate order, the more serious and most expensive repair items tend to be: 1. Repair settlement/foundation issues 2. New roof 3. New sewer line (often 5-15K) 4. Major termite repair 5. Mold remediation 6. Major electrical 7. Major plumbing Don’t worry so much about minor things that a handyman could take care of in a few hours. Hope that helps!

Somewhere between -0- and who knows. Yes, that’s pretty broad. The truth is that while open houses never hurt, they’re only one small tool in the toolbox of an agent to sell your home. Contrary to popular belief, only about 2% of homes sell from an open house. We have a bit higher success rate – I’d estimate 5%. Realistically, open houses are very time intensive, usually 2-4 hours on a weekend (3-6 if you include putting up signs, set up, tear down, and talking to visitors who linger after the scheduled end time). These weekend hours are primetime for a Realtor.

People ask me this all the time. Call me a boring theorist, but my answer is always this: All other things being equal, all parts of San Diego should appreciate at about the same % rate over the long term. If there’s some large development (e.g. a stadium, new shopping mall, etc.), then all other things would NOT be the same. So that area may appreciate at a higher — or lower — rate.

Down payment is but one factor in determining the maximum home price you qualify for. Others include your income, debts, and credit score. And of course, another big factor is what payment you're comfortable with. Let’s have you and your husband talk with our preferred lender. He’ll give you specific answers, along with several options. Call me at 858-457-KENT(5368) and I’ll put you two in touch.

Excellent question… If someone is considering selling a home or other property, I provide a FREE estimate of what price they can expect. Having evaluated some 10,000 for clients over 35 years, my estimates tend to be pretty accurate. Appraisals are typically done by the buyer’s LENDER, as the lender wants to know the property (their security for the loan) is worth what they’re being told. Of course, if the buyer pays all cash, no appraisal is required. Buyers and sellers are free to pay for their own appraisals, typically $600 and up, but rarely do.

First of all, contrary to popular belief, an offer of a home for sale does not legally obligate the seller to accept an offer. This applies whether it’s traditional pricing or value range pricing. And it applies whether the offer is in the range, at the top, or over the top (if value range). And if traditional pricing, whether the offer is full price or above. The only obligation in SOME cases is to pay the agents involved. That’s because listing a home is a contract to pay the Realtor fee if an offer is produced matching the seller’s terms. Aside from that… The whole concept of value range is that “the seller will entertain offers” in the range. If it meant the seller would ACCEPT any offer in the range, then you’d know to just offer the bottom price. And that would defeat the whole purpose of value range pricing, wouldn’t it? So, what the seller did was neither illegal nor unethical.

Excellent question! I own several condos as investments and they’ve been great. Here are some situations where I recommend condos to my clients looking for investment property: • You’re a beginning investor and want to start easy. • You want to keep things simple so you can manage it yourself. • You can’t afford a house or 2-4 unit building. • You find a great deal on a condo (obviously). If you want to buy a rental condo, call/text me at 858-457-5368(KENT) and we’ll find you a good one.

(A California room is typically a patio style room with many windows. FYI, in Florida they call them Florida Rooms!) Three possible issues come to mind: 1. Have your home inspector look at it closely to determine if it was built correctly and is safe. 2. Check with your insurance agent to be sure it's covered. 3. The city can make you tear it off entirely if you don’t bring it to code and get a permit. The city generally only finds out if your neighbor reports you or you do other work requiring a permit and the inspector sees it. That being said, if it's a patio cover or room or something simple that doesn't impact the home's value much, I wouldn't worry… provided your home inspector says it's safely and solidly constructed.

Maybe. While I do own one rental house, I’ve found that less expensive condos and houses, as well as 2-4 unit properties, make better investments. However, since it’s next door, it would be very easy for you to manage. So if you’re willing to give up a little cashflow for the convenience, go for it.

You haven’t provided me the most important information: • What are they asking? • What do you think it’s worth? If you like the home and it’s worth the list price, buy it. Don’t get caught up with the idea that you HAVE TO get the seller to come down. If that’s your criteria, you can find plenty of overpriced homes where the seller will negotiate a little, but you’ll still overpay. So go buy that house.

Yes. In fact, it just happened on one of my transactions. The client owned a nice house, but was buying a duplex to move into so he could live with his parents on the other side and take care of them. Even though he was moving to a more desirable part of San Diego, the loan underwriter (decision maker) didn’t believe him and denied the loan. Fortunately, we were able to move him to another lender who approved the loan. It’s not so much that the lender won’t make such a loan, it’s that they won’t approve it at the more attractive rate for an owner-occupant if they don’t think the buyer will live there. And you can’t completely blame them. Many people say they’re buying a property as their primary residence to get the lower rate and better terms, with no intention of doing so. So, unfortunately, the actions of some dishonest people hurt those who are playing by the rules.

You’re 100% right! The seller’s agent is required to inform the seller of ALL offers received unless they are “frivolous.” What’s a frivolous offer? That’s in the eye of the beholder. There’s so much for an agent to know (which is why you want an experienced agent!), my guess is they were unaware that they still had to inform you of offers when you were in escrow.

There’s no reinvestment requirement when you sell your home. The law that applies is IRS Section 121, known as the Principal Residence Exclusion. Under that law, you don’t pay tax on the first 250K of gain (singles) or 500K of gain (couples). The basic requirements are that you must have owned and lived in the home as your principal residence for at least 2 of the past 5 years. The 2 years need not be consecutive. You may be thinking of either a 1031 exchange of investment property, which does have a reinvestment period. Or you may be thinking of the law applying to principal residences that did have a time frame…but that law changed in 1997(?) and no longer applies. As I’m not a tax professional, please confirm all of the above with your favorite tax pro.

Most are a waste of your hard-earned money. Here’s why: • Foreclosure seminars – we have VERY few foreclosures in San Diego. • Tax lien seminars – ditto. • Flipping seminars – too competitive in San Diego. If you can’t pay cash and get work done at wholesale prices, you won’t be able to compete with professional flippers. • Buying property wholesale – I won’t say it’s impossible, but the odds are so low it’s not worth trying. Does that mean I don’t believe in real estate investing? Not at all. I’ve been a real estate investor since I bought my first home, a duplex, 34 years ago. But for San Diego, I believe in the old-fashioned way of real estate investing: • Buy a property to rent out, perhaps one that needs cosmetic work. • Fix it up, if needed. • Rent it out and let the tenant effectively pay your mortgage. You may have some negative cashflow at first, but with time as rents increase, that will become positive. • Either hold it or trade it up to a bigger property.

Ever played the kid’s game of “Telephone”? One person whispers a phrase to the next person, who whispers it to the next person, and so on. The fun is when you find out how much the phrase has changed from the original phrase. That’s often what it’s like when someone tells you where a property line is, except you don’t even know if the first person was right! So, to answer your question: • You don’t know if the person who told you was correct • Fences aren’t always on property lines • You can’t tell where the property line is by looking at a map The only way to find out the property line is to have a professional survey done. And they’re so rarely done, I’m not even sure what they cost. I believe in a typical residential area, they cost between $500 and $2,000. Please verify that.

That agent gave you some incorrect advice. The state will require a 3 1/3% withholding UNLESS one of the following apply: 1. You state that you’re selling your principal residence 2. You’re selling for loss or zero gain 3. You’re doing a 1031 exchange So, as you can see, you’re exempt under #3. Note: I’m not a tax professional, so please verify with your favorite tax advisor.

Let me first say that you could be right. Your home may well be worth 1.1 million. But if TWO agents are saying it’s in the 900s, odds are it probably isn’t worth what you’re hoping. Of course, if you do enough Realtor-shopping you will DEFINITELY find one who will tell you what you want to hear. My question for you is, are looking for information, or confirmation? In other words, are you looking for objective information from a professional, or are you just looking for someone who’ll confirm what you already believe, whether it’s correct or not? If it’s the former, I’ll be happy to tell you what your home will sell for. If it’s the latter, I can’t help you.

Not a chance. He was referring to a 1998 Appraisal Journal study, often attributed to Wells Fargo. It says that for every $1,000 saved in annual utility costs, a home's value increases by $20,000. Not sure who came up with that figure, but while they were busy with their calculations, they forgot to check in with the real world. There’s no way on God’s green earth (pun intended) that this figure is correct. My SWAG (scientific wildly articulated guess) is that it adds 10-25% of the solar’s cost to a home’s value. So that would mean about $2,500 to $10,000 maximum (on a good day). So while I’m a proponent of solar for many reasons and have it on my own house, it’s not a great investment when you sell a home.

There are 3 common kinds of IRC 1031 tax-deferred exchanges: concurrent, delayed, and reverse. A CONCURRENT exchange means you close escrow on your sale (“downleg”) and your purchase (“upleg”) at the same time. More common is the DELAYED exchange where you close escrow on your sale first then close on your purchase later. You must “identify” your upleg within 45 days of closing your downleg. And you must close within 180 days of closing your downleg. These exchanges cost under $1,000. Less common is the REVERSE exchange, where you close your upleg before your downleg. These require greater financial resources as you won't yet have cash from the sale to complete your purchase. Reverse exchanges cost about $5,000. There are a few more rules you must follow when you do an exchange that I’m happy to discuss with you over the phone or in person. Once you know the rules, they’re actually very simple and easy to follow. Just call or text me at 858-457-5368 and we’ll set a time to talk

Cap rate is short for “capitalization rate.” Cap rate is the rate an investment property earns money, as a percentage of the value of the property. It’s similar to an interest rate on a CD. And it’s also your % return if you buy the property for cash. You calculate cap rate by dividing the net operating income (gross rent minus gross expenses NOT including mortgage) by the value of the property. For example (using simple round numbers): • You buy a $200,000 condo • It rents for $1,000/month, or $12,000/year • Expenses are $500/month, or $6,000/year • The net operating income is $500/month, or $6,000/year • $6,000 NOI divided by $200,000 value = 3% cap rate Cap rates in San Diego typically run from 3% to 5%.

Great question. To get the most activity and leave a bit of negotiating room, the optimal amount is about 2% over value, except for higher price ranges. If your home is valued over $1,500,000, I recommend you list about 3% over value. If it’s over $2,500,000, then try about 4%. Of course, there’s the other option: Value Range Pricing. In that case, you want to use a range of 5-10%, with the value (as you believe it to be) around the middle of the range.

Congratulations on being able to pay cash for your home! The answer to your question depends on your circumstances and priorities. Reasons to pay cash include: • Your offer will be much stronger if you pay cash. • Returns on your investments are less than mortgage rates. • You want to avoid the bother of getting a mortgage. • You like the feeling of owning your home free and clear. Reasons to get a loan are: • You want to have more liquid funds available for an emergency or opportunity. • Returns on your investments are greater than mortgage rates. • You think rates will rise in the future (at today’s low rates, that’s a sure thing) and want to lock in today’s low rate.

Good question. It depends on what I call the “Eww, Oh, Ooo Test.” “Eww!” If your carpets are so torn, worn, stained, smelly, or of such an ugly color that a homebuyer would say “EWW!”, it could make your home hard to sell and cost you. So it would be smart to change the flooring. “Oh” If your carpets don’t look great but aren’t offensive and would elicit a neutral “Oh” response from a homebuyer, it may still be marginally profitable to change them, but not 100% necessary. “Ooo!” And of course, if they look and smell just fine, then there’s no need to do anything.

There’s benign mold, and there’s “toxic mold,” so I assume you’re talking about the latter. Many people can live in a home even with toxic mold without it ever being a problem. But mold can cause some people to develop or exacerbate health problems. You should be okay if the seller had the mold professionally remediated (removed) and tested to be sure the mold is gone. So ask for proof of the remediation and the testing. You could still be fine even if the seller just tore out the affected areas, but you won’t know for a high level of certainty unless it was done professionally. Please consult a mold professional.

Two suggestions: #1- TIME IN AFTER CLOSING Try to negotiate extra time in the home after closing. This is in case there’s a delay, so you’re not packed and moving out before you know for sure if you’ll close. I routinely advise my clients to ask for 72 hours in the home after closing for precisely the reason you stated. Or you could request to rent back the home for a week or so, usually paying the buyer the greater of fair market rent or the buyer’s payment. For various reasons, not all homebuyers will agree. But many will. #2- EXPERIENCED AGENT Use an experienced agent with a sharp team who together manage your sale closely. Rarely are sales suddenly delayed on the scheduled closing date without warning. Odds are that your agent should have seen warning signs and told you of a possible delay so you didn’t move out. To be fair, agents can’t guarantee an on-time closing, nor do they always know of delays before they happen.

A common misconception amongst homebuyers and many agents is that items must be brought to code when a home is sold. This is simply not the case. Because building codes change over the years, imagine if all homes that were sold had to be updated to comply with each and every code change! Many homes would have to be practically rebuilt, or at least vastly updated at a huge cost. Another mistaken belief is that “health and safety items” must be corrected to allow a sale. Also not the case. Here’s the very short list of legally required items: 1. Operative smoke detectors in all sleeping areas 2. Operative carbon dioxide detectors in all sleeping areas 3. Water heater strapped correctly for earthquake safety That’s it. There are no other “point of sale” legal requirements when you sell a home in San Diego County.

If the seller’s agent does his/her job, they’ll require you to show that you have the funds to buy the home. So that entails showing them your bank or other financial statements. For security, black out account numbers and social security numbers from your documents.

Sure! Here are 10 smart curb appeal tips for you: 1. Drive up to your home like you’re a potential buyer. You may be shocked at what you notice with this different perspective. 2. Plant plenty of colorful flowers in flowerbeds, pots, window boxes. 3. Green up your lawn with ammonium sulfate…and be sure to water sufficiently or your lawn will burn and die! 4. Cut scraggly or overgrown shrubs that hide your home, especially your windows. 5. If your home is dirty, hose it down. 6. If needed, paint outside. You might be able to get away with just the trim and garage door, or maybe even just the front of the house if your budget is limited. 7. If needed, install new, attractive address numbers. 8. Remove driveway oil spots from your concrete driveway. Try kitty litter, Tide, Easy Off, mineral spirits, gasoline, concrete cleaner, or a pressure wash. 9. Remove debris or extra vehicles. 10. Call me to come see your house and give you tips specific to your home.

That’s a great idea, especially with college so prohibitively expensive! Depending on how old your child is, you should either have a nice positive cashflow to supplement education costs, or you can sell and after taxes likely have plenty of cash to pay tuition and more. If your child is getting close to college age, another strategy is to buy a 3-4 bedroom house or condo near the campus. Then your child can live in one bedroom and you can rent the others to offset much of the payment. Whether your child goes to college locally or in another city, we can help you. We can either find you the home or refer you to a good agent where the school is located.

Great question! Many of our wonderful clients didn’t know where to start either. After all, how many times have you bought your first home? And even if you’ve bought one before, it’s hard to be an expert having done something once or a handful of times. Here are the first two steps we recommend: 1. Talk with our preferred lender to determine your ideal and maximum price range and payments. 2. Sit down for a free homebuyer consultation. We’ll have a good conversation, answer all your questions (please bring a list!), and give you an overview of the process. We’ll go step-by-step, including your next step if you wish to find a home. There’s no pressure—it’s more of a get-to-know-you, get-your-questions-answered meeting. If you decide to wait or not buy a home at all, that’s perfectly fine. To get started, call us at 858-457-KENT(5368) and we’ll take care of you.

There are investors who regularly automatically send low offers on homes as soon as they hit the MLS (multiple listing service), without even seeing them. I call it a “blind offer” since it’s sight unseen. I’m not sure, but they probably just write the offer at some certain % below the list price. For these investors, it’s a numbers game—if someone accepts their low offer, THEN they go see the house to decide if they even want it and if they want to renegotiate the price lower. So that’s likely what happened with your brother. And I expect that it’s probably not a very good offer.

I’m a big proponent of solar and have it on my own home. But I don’t advise getting it if you plan to sell your home. You’re right to be concerned that solar leases, loans, and other agreements can be an issue when you sell. It can be a complication for the buyer when they get a mortgage. And, rightly or wrongly, many homebuyers are uncomfortable committing to the payment. As far as solar helping sell your house, keep in mind your buyer could get their own solar if they wanted to.

Mortgage brokers are indeed middlemen (middle-people?). However, this doesn’t necessarily increase your costs. That’s because the mortgage broker does work that the ultimate lender (whoever actually loans the money) would otherwise be doing, that lender pays the mortgage broker. The benefit of a good mortgage broker is that they have many sources of home loans and can shop to get you the best one, vs. most other lenders who can only offer you the home loans they have. Emphasis on “good” because a good mortgage broker can be very beneficial to you. However, there are plenty of not-so-good ones that will only cause you problems. Contact me if you’d like the contact info from my preferred mortgage broker.

A Buyer Representation Agreement is a written agreement that outlines how you and your agent will work together. Like most professions, many agents use agreements to ensure that the client they're devoting time and money to is also committed to working with them. The agreement says that you agree to work exclusively with that one agent for a certain time period, often six months. But it does NOT obligate you to buy a home.

It's smart to offer the house to your renter first. I usually ask my landlord-clients if they've checked to see if their tenant wants to buy. Two words of caution: 1) I find that most tenants are “interested.” But few end up buying, often after making the landlord wait weeks for an answer. So give them a short deadline, perhaps a week. It only takes a few days to know if they can get a loan. Refer them to a reputable lender who’ll report back to you if they’re qualified so you don’t waste your time. Call me and I’ll put you in touch with my preferred lender. 2) Finding the buyer is only half the job. There are still price negotiations, 15-page contracts full of important small print, legally-required disclosures, miscellaneous forms, inspections, repair negotiations, legal requirements, and overseeing the entire complex process. I can make your life easy and do all that for you at a reduced fee because the job of finding the buyer is already done. Let me know and we can discuss.

People have asked me that many times. The good news is that, no, it doesn’t send that message at all. When a homebuyer or agent sees that the price of a home has gone down, they really don’t try to get inside the seller’s head. The thought process is much simpler… For interested homebuyers, it’s something like, “Oh, the price is lower. Maybe I should give that home another look.” For agents, it’s, “I should call my client and tell them the price is lower. They might be interested at this price.” OR “Hmmm, what client do I have who might be interested at this more attractive price?” As you can see, the reactions to a price reduction are all positive.

It depends on 5 things: 1. Do they have a lease? If so, you can negotiate with them to move, but you can’t make them. 2. Are the tenants cooperative? If the tenants will be flexible with showings and allow a lockbox, you may want to keep them. 3. Are they reasonably neat? If they live like a bad college dorm with things strewn about and no cleaning, you might want to offer to have a maid come in and/or incentivize them to clean up. But if it’s going to stay a mess, that will hurt the sale and you may want to ask them to move. 4. Does the home need profitable repairs you’re willing to do that can’t be done with the tenant in? If so, that’s an argument to have them move. 5. Can you carry the condo if it’s vacant? If you MUST have the rent, then the decision is already made. If you can carry it vacant for a limited time, then you need to discuss the timing with your Realtor. If you’re in this situation and thinking of selling, I’m happy to talk with you!

Where do I start…? Prior to 1997, tax law allowed homesellers 55 or older a once-in-a-lifetime exclusion of up to $125,000 of gain on their principal residence. This did NOT apply to an investment property. In 1997 the law changed such that a single person (regardless of age) can sell their principal residence and exclude $250,000 of gain. A couple can exclude $500,000. Of course, NONE of this applies to your rental property anyway. The most common way to sell investment property and not pay tax is to do a 1031 tax-deferred exchange into another investment property. Another option if you have a lot of equity to defer tax is to “carry a note” (take payments) from the buyer. Also, there may be estate planning or other complex approaches that are beyond my scope. Of course, you should contact a tax professional. But I’m pretty knowledgeable in this area, so feel free to call on me as my consultations are always free.

I’m glad you asked! Because of my large client base, we know of many homes before they hit the market. In fact, we’ve identified nine different sources of homes that aren’t on the market, sources that other agents have overlooked or don’t even know about. Call us and tell us what you’re looking for and we may have one for you!

Great question! Many of my clients ask me this… You’ve heard the old saying, “You never get a second chance to make a first impression,” haven’t you? The first 2 weeks when your home is the “new home on the market” are critical. Those are the busiest two weeks you’re going to have. All the people looking for a home like yours will see it, whether that’s by coming in, driving by, or seeing photos on the web. Overpricing from the start… 1. Attracts the wrong buyers: people looking for more than your home offers. So, they’ll come and go and not be interested. 2. Discourages the right buyers: people in the price range your home should be in often won’t see your home on searches, or they may decide against seeing your home because it’s priced above similar homes. Then when you finally adjust your price two weeks or months later, it’s hard to get people to come back. So, the best advice is to price your home correctly from the start.

You want a home with “the right things wrong with it.” The ideal fixer-upper home needs cosmetics like cleaning, paint, carpet, landscaping, etc. Homes with unpleasant pet odors are often passed over by homebuyers and can be good values. Be careful about major issues such as needing a new roof or sewer line. And be especially cautious about foundation/slab problems, as these can cost you plenty. If you do buy one with such an issue, be sure the price reflects the cost to fix, plus a little more because you likely must disclose such problems when you sell later, even if you’ve fixed them. Obviously, be sure to have a professional home inspection so you know what you’re buying.

They used to. Specifically, they used to have a long list of stringent property requirements. I don’t know whether they shortened the list or just became more flexible overall, but VA and FHA loans now tend to be no stricter about property condition than conventional loans. That is to say, if you have (e.g.) obvious roof leaks or excessive visible termite damage, or no functioning kitchen or bath, it’s probably going to be an issue for almost any mortgage. But VA and FHA no longer make a habit of nitpicking about a home’s condition.

Beware of what I call the “Helpful Seller Syndrome”! The best way to help sell your home is NOT to help sell it. Walking buyers and agents through your home and telling them all the selling features is as pleasant as having the Macy’s salesperson follow you around saying how nice you’d look in each of their latest fashions. When your home is shown, make yourself scarce. Go shopping, take Fido for a walk, or at the VERY least make yourself invisible in your backyard or a quiet corner of your home. You want buyers NOT to feel that they’re being watched or intruding on YOUR home, but that they’re walking through what may be THEIR next home. And you also want buyers to feel free to voice objections like, “I couldn’t live with that plaid wallpaper and hideous carpet.” This allows the agent to address these and possibly give them some redecorating tips, etc. …So, for your own sake, please don’t be a “helpful seller”!

Great question…and the answer is “no.” Mortgage BANKER They handle everything in-house and lend you their own money, though they’ll probably sell the loan later. Mortgage bankers include banks, credit unions, and mortgage companies. Pro: More predictable and the person you deal with has more control since it’s in-house. Con: Less rate and program flexibility as they only offer their own loan. Mortgage BROKER Mortgage brokers do not lend their own money. They shop different mortgage sources and ideally get you the best rate and terms. Some brokers are large, reputable firms with skilled loan officers. Others are not. Pro: Can be better rate and terms. Con: Loan rep has less control over the process. Greater possibility of a bad experience. To make things more complicated…or simpler…some mortgage brokers are also mortgage bankers! So you get the best of both worlds. And I know a great one, so reach out to me and I’ll give you his contact info.

Great idea! Many people have bought fixer-upper homes and proudly shown me the before and after photos once their work is complete. They say real estate is location, location, location. You can always remodel a bathroom, but moving your house to a new location is all but impossible. Here are my random thoughts: 1. Be sure to have the home thoroughly inspected. 2. Distinguish between different levels of work: cosmetics (paint/carpet/landscape), remodeling, and major problems (foundation, etc.). 3. Get estimates and have a plan and budget to bring the house up to par. Don’t make her live in a fixer-upper forever! 4. If a home is in seriously bad condition (e.g. no functioning bathroom, clearly leaking roof), you may not be able to get a mortgage. Discuss this with your lender. Good luck… …But before we part, remember that my team and I may be able to find you the perfect home. Give us a call or text and let’s talk!

Great question. And like many, it depends… 1. Do you have the time to manage the property? You can go for long stretches where all you do is collect rent. But then you can have vacancies and need work done, which take time. 2. Do you have the knowledge to optimally manage it? If you’re not familiar with real estate or don’t have a business mind, you might want a pro. Or perhaps this can be an opportunity for you to learn and grow. 3. Can you have a thick skin when needed? Unfortunately, being a landlord can sometimes mean being firm or tough, even with nice people. 4. Can you afford a professional manager? They typically run 6-10% of rent. 5. Can you afford NOT having a professional manager? Bad decisions can cost you more than a manager does. Or perhaps you make a high income, and taking time away from work to manage the property would cost you more than what a manager would.

Almost certainly 20% or more. Anything below 20% down is virtually unheard of.

Yes, you can, but it may not be optimal. It depends on: - Your furniture Not all furniture is good for staging. It should be: - In new or excellent condition - Coordinate well with your home’s décor and style - Be modern or of the “right” style - Your budget If you just don’t have the funds, make the best with what you have. - Whether the home is occupied It’s easier for a stager to bring in their furniture when a home is vacant. - Your home’s value The higher your home’s value, the more it pays to have it professionally staged with the stager’s furniture. If you do choose to use your own furniture, you can still hire a stager to coordinate things and add or change a few things around the edges. That might mean painting an accent all, changing out some art, or who knows what. I know a great stager, and he doesn’t charge for a consultation. Call, text, or email me for his info.

Great question! We California Realtors used to have a contract addendum specifically to request a pest control / termite clearance. Then a few years ago, the California Association of Realtors stepped back and said, “Why are we making termites etc. a special category of repair? Why does it have its own form when no other repair does?” Logically, they had a point. I mean, why was that any more or less important than getting a “plumbing clearance” or an “electrical clearance”? BTW, there really isn’t such a thing as a plumbing or electrical clearance. So they did away with the form and termite clearances went from being a given to a negotiable item, like any repair. Putting a number on it, I’d say 95% of home sales used to have termite clearances. And now it’s more like 70-75%. So it’s still pretty common.

Yes, most if not all solar loans (often called HERO or PACE loans) are a problem unless your buyer is paying cash. That’s because they won’t go “junior” to a buyer’s new loan, meaning the solar loan stays in “first position” and the new loan would be in “second position.” And the buyer’s lender on a first mortgage — by definition — won’t agree to go second. Without going too far into the weeds of first and second mortgages, I’ll just say that this won’t work and the seller would have to pay off the solar mortgage. Solar liens and leases are another story and another whole set of challenges, but they’re not necessarily as problematic as solar loans.

They’re actually easy and simple! Here are the most common fears (actually myths) I hear about 1031 exchanges: 1. Too complicated As mentioned, they’re pretty simple. You just follow a few required rules on prices, timing, and where the funds are held. But a good Realtor, escrow, and 1031 “Accommodater” do all the paperwork for you. 2. Too expensive A standard 1031 exchange costs around $1,000. That’s not a lot of money compared to all the taxes you’ll save. 3. Not enough time The main time constraint is that you must “identify” the property you want within 45 days of closing the property you’re selling. But if you start looking while your “old” property is in escrow, that effectively stretches it to 60 or 75 days. That’s usually plenty of time. If you’d like to do a 1031 exchange or learn more about them, contact me and I’ll be happy to help you. BTW, even though they’re simple, I’m still required to tell you to consult with your tax or legal professional.

If you don’t take care of your body, when you get older, you’re going to pay for your neglect. It’s also like that when you sell a home. If you haven’t taken care of it, you’re going to pay for it in the form of a lower price.

Yes and no. It depends on what you mean by “share the costs.” When a home sells, the buyer and seller have different costs that they pay. There’s no law that says who pays what. Rather, it’s based on common practice in that geographical area. In San Diego, the seller typically pays the real estate fee, the “owner’s policy” of title insurance, half of the main escrow fee, the county transfer tax, and other fees. The buyer typically pays the “lender’s policy” of title insurance (unless they pay cash, in which case there is not such a fee), half of the main escrow fee, the fees for getting a loan, their inspection fees, and other fees. It sounds like you’re wanting the seller to share what are typically your costs as the buyer. It’s not normal or expected that the seller pays half of your costs, but you could ask. In a hot seller’s market, most sellers will decline. In a balanced market, some sellers will and some won’t. In a buyer’s market, the seller is more likely to agree.

I recommend changing your goal! Having invested in real estate for 35 years, how many properties do you think I’ve bought 20% or more under market? ZERO. I’m not saying it never happens. But the odds are lower than you going to Vegas and dropping $100,000 on the roulette table’s red 7 and walking away with a cool $3.5 million (the payoff is 35-1). So, unless you’re ready to devote the next couple of years of your life to making offer after offer after offer, with no assurance of success, I say change your goal to buying something between 5% under market and fair market value.

Great question! Unless you write in the offer that the seller is to have the home professionally cleaned, the seller is only required to remove possessions and debris. In practice, most homesellers leave homes fairly clean, and some have them professionally cleaned even if it’s not requested. SHOULD you request the seller to hire a pro to clean it? I advise you not to. It will offend a seller who lives there because the message you’re sending is, “You’re a dirty slob!” Even if they don’t live there, I wouldn’t write it in. Why? Because (ironically), you want to write a “clean” offer. And asking for a home to be cleaned is not “clean.” Pun intended.

Absolutely not! Unless the owner authorized the agent to say they would take $825,000, the agent violated their legal fiduciary duty to their client, the owner. Sadly, this is VERY common. Too many agents sell out their client in order to make a buck. Of course, not all agents do. An agent can say vague things such as “we’ll look at any offer” or “bring us an offer and we’ll negotiate.” But what that agent did is unethical and illegal. However, the flipside is 100% ethical and legal: The buyer’s agent is absolutely allowed to try to get such information from the seller’s agent (and vice versa). In fact, it’s not only allowed, an agent who can get that information for their client is representing them well and should be commended.

It can be a great idea to help you invest in something you otherwise couldn’t. And at the same time, while most partnerships go just fine, I've also heard many stories of problems. For example: - One party doesn’t fulfill their end of the bargain, perhaps regarding improving or keeping up the property. - One party gets into financial straits and can’t make their portion of the payment. - One party wants to sell and the other doesn’t. So be sure it's with someone you know and trust, AND have an experienced real estate attorney draw up an agreement covering responsibilities, rules for selling the property, etc.

100%! And for many reasons (all based on past experience), including: 1. Negotiation You could say the wrong thing or the wrong way and weaken your negotiating position. That could be saying why you’re selling, how you say why you’re selling (perhaps you may come across as very motivated), or inadvertently tip your hand about other offers or the lack of them. 2. Miscommunication I’m using a broad term to cover many things. They include promising to do things you shouldn’t do (such as letting the buyer move in before closing), or agreeing to something that isn’t possible or practical. I could go on and on. 3. Liability Trying to be helpful but unknowingly incorrectly answering a question about the property line, age of the roof, or anything could make you liable. So keep the communication to comments about the weather, then give them their space and you’ll be much better off.

First of all, I would NEVER tell you not to have an attorney review documents or answer questions for you. And in many other states, attorneys handle the closing instead of escrow companies, like we do here in San Diego. That being said, few people buying a home in California use an attorney.

Yes, your lender will run your credit and find EVERYTHING. But… Good news. Depending on many factors, you may well be able to buy a home right now anyway. Perhaps your credit isn’t as bad as you think it is. Or you can get a type of loan with a slightly higher rate or cost that’s more forgiving on credit. You should talk to our preferred loan professional, have him run your credit, and find out what kind of loan you're eligible for. Just call or text me at (858)457-KENT and I’ll put you in touch with him…

I tell anyone and everyone: Never, ever depend on Zillow or any automated valuation for your home value. In your case, not only are automated valuations inherently unreliable, but Zillow would have no way of knowing you remodeled your home.

No. An average deposit is about 1 to 1.5% of the purchase price. So that deposit sounds right.

After the foreclosure crisis, banks became much more conservative and bridge loans went away. …But bridge loans are back! They let you make a non-contingent offer on a home you want to buy. Here are some of the particulars 1. “Old” and “new” homes can only be primary residences 2. Available only as “package” with financing on new home 3. Up to 75% of “old” home (must pay off any existing loans first) 4. Must be paid off by 12 months 5. Up to $3M 6. 1.5 points 7. No payments 8. Mortgage on new home is up to 80% 9. Rates on both loans are higher than the current 30 year fixed rate mortgage Call or text me at 858-457-5368 and I’ll put you in touch with my lender.

To my knowledge, there’s no rule against the seller falsely saying they have other offers. But it’s obviously dishonest and immoral to do that. For agents, it’s another story. It’s a violation of the agent’s legal duty to all parties of “honest and fair dealing and good faith” to make up that there are other offers. That doesn’t mean I haven’t known of it being done. Years ago, a young couple called me… Their home was for sale with another agent. They received an offer, and the agent proudly told them part of his negotiating strategy was to lie and say he had a second offer. The couple saw how unethical that was and immediately lost all trust in their agent and asked him to cancel their agreement. The agent agreed. So they hired me and I sold their house for more than what they’d been offered…of course without doing anything shady or illegal.

In the California Association of Realtors real estate “offer to purchase” form, there are certain preprinted default time limits for contingencies. However, those limits are subject to change by negotiation, and they vary depending on the contingency. For the two main contingencies, the defaults are: - Inspections: 17 days - Loan: 21 days There are other contingency periods, such as approving the disclosures and title report, etc.

Great question. I think it’s a smart idea, especially for those people who like to avoid surprises and have “all their ducks in a row.” There is one somewhat obvious downside that I’ll address in the end. But here are the benefits: - You can talk to the inspector to find out which items are minor vs. major - You have more time to get repair bids - You know in advance what repair costs you may be facing - If you choose to fix some items in advance, you can “brag” about them in the marketing. For example, if you put a new room on, that may help you get a slightly higher price. Now to the downside: Home inspections typically cost $500 to $750. And it’s the buyer’s expense when they order the inspection. Once I explain this, most of my seller-clients opt to have the buyer get the inspection.

I wouldn’t say it’s normal, but I may know why they’re doing that. First of all, pest control (aka termite) inspections are pretty standard in a home sale. Pest control clearances — where all the work is completed — are common but not as “standard” as they used to be. When I sell a property for a client, if we’re not planning to give a termite clearance, we try not to reference a pest control report in the contract. That’s because sometimes when a lender sees a pest control report in the contract, they require that they see a copy and then they require that all the work is done or they won’t approve the buyer’s mortgage. And if the buyer and seller did not agree for the work to be done, that can create a problem. Who’s going to pay for the work?

There’s no exact yes/no answer, but here are some things to consider: PRO 1. Real estate can be a strong building block of wealth. I own rental real estate and very much believe in it. 2. The house is a property you’re very familiar with, so you’re not coming into an unknown. 3. If you want to start investing, a single-family home is a simple way to start. CON 1. If you’ve owned and lived in your home for at least 2 of the past 5 years, you can sell it and exclude up to 500K of gain (250K for singles), using IRS Code 121. But once you’ve been out for too long (3 years), you’ll lose that major tax break. 2. While single family homes are a simple starting point, the cashflow is not as good as a duplex, triplex, fourplex, or larger apartment building. And an expensive house has less cashflow than an entry-level house or condo. 3. If your home is in pristine condition, you’ll be heartbroken if tenants mistreat it. 4. Not everyone is “wired” to be a landlord. It is a business.

Not quite. You’ll also need to show “proof of funds,” aka bank statements etc. confirming you have the money. And some seller’s agents may require a “cross-qualification” from a lender they know and trust, especially if you have a low down payment or are working with a little-known lender. A cross-qualification simply means that you or your lender have to talk with that agent’s preferred lender and probably show some of the documents to satisfy them that you’re qualified. You don’t have to use that lender.

You’ll typically spend around $1,200 on your credit report, appraisal, and home inspection. If you do additional inspections (pool, roof, sewer, etc.) that figure would go higher. You’ll also wire your deposit to escrow, typically 1-2% of the price. But that’s not actually an expense. If you follow through with the purchase, it counts as part of your down payment. And if you don’t follow through and you cancel in keeping with the rights and contingencies you have in the contract; you’d get your deposit back.

Yes, you can hire an appraiser on your own. Keep in mind that appraisers and appraisals do vary. So just because you got one value from one appraiser doesn’t mean the next one will be very close. That being said, if you hand the bank’s appraiser the appraisal you got, there’s a good chance the appraiser may use that number as a target. And I’ll be happy to refer you to a couple of good appraisers.

Here’s an answer from one of my favorite home inspectors: “A home inspector will inspect all the major systems and components of the home. That includes systems like the roof, structure, and the electrical system, plumbing system, the cooling, and heating system, the built-in appliances (with the exception of the washer, dryer, and refrigerator). The inspector is also going to test all of the windows, doors, and outlets, plumbing fixtures and drain lines for proper function. As the inspector finds items that are not functioning properly, he/she will take a picture of the issue and make a comment about it in the inspection report. You want to think of the inspector as the home's general practitioner. As he/she finds systems and components that aren't functioning properly, he/she is going to recommend that they are further evaluated by a licensed specialist in that field of construction.”

Hold on a sec. What you’re talking about is not only impractical, it’s also quite illegal. You cannot collect a fee for providing real estate services unless you have an active real estate license. And it’s completely impractical. You’d have to spend a VERY long time before you get such a good “deal” that you can flip it over to someone else and make enough money for it to have been worth your time. Sadly, I think the only person collecting a fee was the one putting the seminar on, not you. Sorry you wasted your money.

Some agents charge their clients an extra fee they call a “transaction fee,” “administration fee,” or something with a similar name. It can be any amount, but is often $295 to $500. We choose not to charge our clients any additional fees.

Let’s go ahead and clear up some common misconceptions about termites and selling a home... It’s not just termites: A “structural pest control” inspection covers ANY insect, organism, or condition that destroys wood in a home. That includes dry rot, water leaks, and more. It’s NOT the law: You’re not legally required to give a buyer a pest control clearance, but 99% of buyers expect one. So plan on it. Not all homes need to be tented: In my experience, less than 50% of homes do need fumigation when they sell. And about 25% need NO work at all. If a termite inspector can see it, so can you: If you have any doubt about work your termite inspector flags on his report, ask to SEE the evidence. If you can’t see it, neither can he, so he can’t put it on his report. Most termite inspectors are honest: But how can you tell? If you need a termite inspection, I highly recommend the people I use. Feel free to call me at (858)457-KENT and I’ll give you their contact info…

It’s possible, but it’s NOT easy. The market for such properties has been EXTREMELY competitive in San Diego. Those who are currently able to buy and re-sell at a profit fall into generally two categories: 1. Professionals These are people who do some or all of the following: a) Pay cash. b) Make a LOT of offers and get few accepted. c) Are contractors and/or have their own crew so they pay wholesale for repairs. 2. Lucky People These are people who want to flip and just happen to fall into one “deal” or opportunity. But you can’t make a business plan based on luck.

It’s not good for you, or the agent. But let’s talk about you. Here are 3 reasons why listing a home for just 30 days isn’t an effective selling strategy: 1. 30 days isn’t long enough for any agent to properly market your home. (This will result in fewer offers and possibly a lower price.) 2. If you get a low offer, your agent has the incentive to push you to take it because they have such limited time to sell your home. 3. A good agent will likely turn you down. That leaves agents who aren’t so good. Do you want a mediocre agent? A word of caution, though… If you list with the WRONG agent, getting locked in a 180-day listing agreement could be a disaster. So ask for a cancellation clause letting you cancel if you’re not satisfied. I always give that right to my clients when they request it. Remember to CALL ME about selling your home. I’m a full-time (and a half) San Diego real estate broker. That’s why the information I share with you is straight “from the trenches"...

Unfortunately, not much, if anything. Homes on corner lots often have smaller backyards because part of the lot is used (wasted?) in a larger side yard. And while some people like that they don’t have a side neighbor, there can be lost privacy because the side is exposed to the street. What I’ve found is that the people who think homes on corner lots should be worth more are – coincidentally – those very same people who OWN corner lots!

I read the same book, and he managed to be wrong three different ways, all on the same point. That takes talent! In the standard California purchase contract: - The time period for response is not 72 hours. It’s at “5pm on the third day after the offer is signed” by the buyer. - That time period is the contract’s “default”, but you can change it to any time limit. (By default, I mean it’s preprinted in the contract and used automatically if you don’t write something different in. Most people don’t.) - Neither the contract nor law ways the seller is REQUIRED to respond in that time, or at all. Instead, the offer expires and is no longer binding upon the buyer if the seller accepts after the expiration. Of course, in practice, the buyer would likely still move forward in that case.

You want the most money, correct? And of course, that’s no secret. Every real estate agent knows homesellers want the highest price, right? So don’t you suppose a few agents might inflate the price they tell you in order to win your business? If you answered YES, you’re spot on. Indeed, it happens so much more than people realize. Truly, it’s the oldest trick in the book. The moral of this story: NEVER choose an agent on price. Choose the one with a track record of success who you feel will do the best job. As to why you should hire me, suffice it to say that after 37 years and 5500+ home sales, odds are I know what I’m doing. And given that most of my clients are repeat or were referred to me, people have been happy with my work. You will be too!

This is “sort of” a scam. I say “sort of” because this person may or may not actually lie or mislead you. But this is a strategy taught at get-rich-quick weekend real estate seminars. And those seminars obviously aren’t looking out for the homeowner like you. For this to be profitable for the investor, he has to lease it well under market rent and negotiate an option price well under market value. And of course, even though he says he’s interested in YOUR specific property, the truth is he’s likely sending mass blind emails and knows little or nothing about your specific property. So unless you want to under-rent and under-sell your property, I’d steer clear of him.

Great question! Usually, the answer is “no,” but it depends on a couple of things. The vast majority of purchase contracts are written with a “loan contingency” that lasts either 17 days or all the way until your loan is funded (meaning the bank wires the money to escrow). That contingency says that if you don’t get your loan in that period, you can cancel the contract and get your deposit back. If you’ve released your loan contingency and you get turned down, you are at risk of losing your deposit. But it’s pretty rare. And if you work with an experienced agent and a great lender, even more rare.

I suggest you lower the cap rate you’re looking for! A real 10% cap rate is not realistic in San Diego, or frankly, anywhere else I know of. As a rough rule of thumb, residential rental cap rates in San Diego tend to be equal to or 1-2% above the prevailing 30-year fixed mortgage rate. So in San Diego, depending on the neighborhood and type of property, right now you should expect a 3-4% cap rate. That’s a heck of a lot more than you can get keeping your money in the bank! Explanation of a “cap rate”: Cap rate is short for “capitalization rate.” In real estate, it’s the annual net cash return of a property BEFORE paying the mortgage as a % of the price. The formula is: Net Operating Income / Price = Cap Rate For example, if on 123 Apple Street, the annual income AFTER expenses and BEFORE paying the mortgage (aka Net Operating Income) is $3,500 and the price is $100,000: $3,500 / $100,000 = 3.5% cap rate. So now you know (if you didn’t already).

The most important thing—hands down—is finding the best possible Realtor. Why? Because your Realtor will advise you on and/or do all the key parts of selling your home including: 1. Timing 2. Preparing your home for sale 3. Pricing 4. Marketing 5. Getting and interpreting feedback 6. Being sure buyers are qualified 7. Negotiating offers 8. Managing your escrow process 9. Dealing with and negotiating inspections 10. Problem-solving 11. Keeping you informed 12. Being a calming influence if there’s an issue To state the obvious, not all Realtors are the same, have the same set of skills, or do the same things. But it seems that many people forget this and choose their agent randomly. Having been a Realtor for 37 years I’ve found the vast majority are good, hard-working people. Yet if I retired tomorrow and wanted to sell my home, I’d only be comfortable hiring about 10% of the agents out there. Why? Because I’d want the best and you probably want and definitely deserve the best too.

Rent to own can be good or bad, depending on the terms. Those terms include: - The agreed-upon eventual sale price - The rent - How much (if any) of the rent is going towards the price - How long the option to buy period is - Whether there’s non-refundable option money - Whether that option money goes towards the price - The financing Three other factors are: - Your ability to buy the home at a later date (if you likely won’t qualify later, then don’t bother now) - The direction of the market - How well the contract is written So as you can see, it all depends. But typically, rent-to-own is used to sell a home that no one wants to buy, be it because of the market or the house itself. If you’re seeing an ad or sign that says “Rent To Own Homes, Call XXX-XXX-XXXX”, it’s likely something to leave alone. If it was a good deal for the buyer, in today’s market in San Diego, people would be lining up to do the rent-to-own. So that tells me it’s probably a high price with bad terms.

It’s the same license, but as Liam Neeson said in the movie Ransom, it requires a very particular set of skills. I try not to make this Q&A a soapbox to promote my services, but I’ll make an exception on this one. Most residential agents have little experience with nor understanding of 2-4 unit properties. They may be GREAT at selling houses and condos. But they don't know rents, gross multipliers, or cap rates, etc. And they don't know how to price duplexes/triplexes/fourplexes, nor do they have many prospective buyers for them. On the other hand, many commercial-apartment agents don't bother with 2-4 units because they’re “small potatoes” for them. I have owned a dozen different 2-4 unit properties at various times. And I’ve owned as many as 140 apartments at one time. So I understand investing, how to price apartments, and how to find people to buy them. Hope that answers your question!

I think you’re really asking, “When can I back out of a deal if I’m buying a home and not lose my deposit or be sued?” The contingencies in your purchase contract give you rights to back out without penalty. Common contingencies include: - Inspections/investigations - Financing - Approval of seller disclosures - Approval of Preliminary Title Report And each contingency is for a certain time period. These time periods vary by contract. So as long as you cancel while you still have an active contingency, you should not lose your deposit or be sued. (As always, let me remind you that I’m not an attorney and you should verify what I say with an attorney.)

Unfortunately, in this case 2 + 2 ≠ 4. A principal of appraisal or determining a property’s value is that you must compare it to “comps,” or “comparable properties.” So, to determine the value of your duplex, you need to compare it to what similar duplexes have sold for, not houses. There’s much greater value in owning two separate 2-bedroom homes that can be owned independently of each other, than there is to owning one property with two 2-bedroom units. Here are some of the typical advantages of two separate independently owned houses over a duplex: 1. Two different people can own them 2. Two separate lots with larger yards 3. Greater privacy and space between them 4. Each has their own garage 5. Often a better neighborhood (not always) 6. Greater rent potential (two houses rent for more than a duplex) 7. Better rates and terms for financing

Great question! As a matter of practice, I would never tell you or any of my wonderful clients not to read what they’re signing. That being said, real estate contracts – especially when long optional addenda are added – can be very long and tedious to read. And actually understanding them is another story altogether! So, the truth is that most people buying or selling a home do NOT read the contract at all, or much beyond the first page. (As an aside, that’s a very strong argument for being sure that your agent is experienced or works on an experienced team. Just because an agent has a license doesn’t mean THEY have read or understood what they’re asking YOU to sign! Bottom line: Should you read the entire contract? Yes. Will you? Probably not.

Not a fan. A wonderful flipper/renovator client of mine and I tried it on a house he beautifully remodeled that I’m selling for him. It sure seemed like a great idea. But here’s what happened… The photos and the house looked GREAT online. But as beautiful as the home was, when buyers showed up, it didn’t look as good as the photos. It’s not a good idea to oversell and underdeliver, disappointing homebuyers when they walk in your door instead of pleasantly surprising and exciting them. My client and I learned our lesson. So, going forward I will never recommend virtual staging to a client. And I don’t advise it for you.

Your question is similar to the seller making you a counter-offer for $1,000 more, and you asked, “What’s the advantage of me paying an additional $1,000?” I’m going to suggest you look at this differently. Let’s look at the big picture. The advantage of agreeing to the seller’s counter-offer isn’t that the seller gets to stay for free for five days. The advantage is that if you agree, you get the home!

When I got into real estate in 1984, it typically took 30-45 days. But that was before faxes (yes, faxes!), scanners, smart phones, iPads, and the INTERNET. Over the past 37 years, with all these amazing advances in technology, it typically takes…well, about 30-45 days. If you’re diligent and have a great lender, you might get it done in 21 days. But don’t count on it.

No, your Realtor will help you determine the value. Your buyer’s lender will require the buyer to pay for an appraisal, assuming they’re not paying cash. Of course, when I wrote “your Realtor” above, I was referring to me! I’ll be happy to help you. I can give you a rough idea over the phone to start with, or come by to give you a more accurate figure. Just call or text me at 858-457-5368

Sorry to be the bearer of bad news, but all real estate contracts must be in writing. So, a “verbal acceptance” is legally meaningless. By the way, for my team, I came up with a “secret” strategy that actually works about half the time. So, when our clients are in a situation like yours, our client’s contract is actually binding and they get the home. This is one of several proprietary techniques and strategies we have to help our clients be more successful in their quest to buy and sell homes. Not to be overly mysterious, but I can’t share it here because it does give our clients an unfair advantage.

I’m tempted to just say, “YES!” But the answer is, it depends. (I say that a lot, don’t I?) It depends on: - What your current rate is - What rate you can get - The costs involved - How long you plan to keep your home The good news is, my trusted lender is as honest as the day is long. And he’ll do the numbers and tell you if it makes sense to refinance. If it doesn’t, he’ll tell you so, even though that means he loses business. Feel free to reach out to me for his contact info.

Yes! In fact, I know several excellent contractors and a GREAT handyman, as well as all types of tradespeople. Based on your question, you may like my free “PREP-TO-SELL” program. Here’s what it entails: 1. I walk through your home and give you a list of profitable repairs/cosmetics that will double, triple, even 10X your investment. 2. I’ll recommend trusted tradespeople for the work. 3. We obtain bids on the work, for your approval. 4. We schedule all work that you approve. 5. We check that all work is completed correctly, and send you photos if you’re not available. 6. You make any final payment. In some cases, vendors can be paid from your proceeds at closing. You can pick and choose some or all of these services. After all, my goal is to serve you. Give me a call and we can make a plan to get your mom’s house ready for sale…

Great question! I won’t try to be overly clever (or not) and say it’s asking that question. Your first step should be a phone, Zoom, or in-person (masked and 6’ social distance of course) discussion with me or one of my associates. We’ll go over what to expect, the state of the market, and what you’re looking for. And most importantly, we’ll answer all your questions. Buying your first home, or any home, is a BIG event in your life. And our goal is for you to feel comfortable and informed as we move forward to find you the home you want. Let me know a convenient time for you and we’ll make it happen!

I’ve got some good news for you. If you’re a veteran, it can be as little as 0% down. If you’re not a veteran, it can be just 3-3.5% down, possibly less if my lender can find you a down payment assistance program. That being said, you will get a better financing package if you do have 20% down. But not everyone does. Let me get you in touch with my preferred lender and he’ll figure out what loan and down payment are best for you.

Generally speaking, I don’t advise clients to remodel before they sell unless they’re contractors. But it’s too hard to answer your question and make recommendations without seeing your home. So, I’m going to suggest you invite me by and I’ll be happy to make a list of profitable improvements you can make. I can even recommend some great, trusted tradespeople to you.

You continue to have the rent paid to you as normal, both during the marketing and once we accept an offer and are in escrow. Do keep in mind that rent is paid in advance. When you receive rent on August 1, that’s for the month of August. So, if we close on (e.g.) August 20th, the escrow company will prorate 10 days of rent from you to the buyer. On a related note, be aware that – unlike rent – your mortgage is paid in arrears, or for the previous month. So, for that same August 20th closing, escrow will debit you for 20 days of interest and pay that to your mortgage lender.

Don’t feel rushed. You’re in complete control of this part of the process. So, we can plan to put it live in the MLS a couple of days later when you’re ready. Or we can put it in as scheduled and tell agents they have to wait a couple of days to see it. Whatever you need, we’re here to serve you and have this be a good experience for you.

Pre-tax. And by your question, you sound very knowledgeable! For those reading, if you’re not familiar with some of these terms, let me define them. Front-end ratio is also called the “mortgage-to-income ratio.” To compute it, divide your projected monthly mortgage payment by your (pre-tax) gross monthly income. The monthly mortgage includes the principal, interest, taxes and insurance amounts. Back-end ratio is also called the “debt-to-income ratio.” The formula is your total monthly revolving debt including mortgage payment, divided by your gross monthly income. Ideal front-end ratios are 28% or less. Back is 36% or less. However, many loans and lenders will still qualify you over these ideal numbers. If you’re thinking of getting a loan for a purchase or refinance, I’ll be happy to put you in touch with my trusted lender.

Lookie-loos…now there’s a retro term! I remember seeing an old real estate commercial when I was a kid, with these little cartoon “lookie loos” tromping through homes with no intention of buying them. The truth is, very few REAL people want to waste their time or have the chutzpah to call an agent to show them homes if they’re not interested in buying. Of course, open houses by their nature will get a mix of neighbors (lookie loos?) and interested buyers. So, I guess you could say no to open houses. But frankly, I wouldn’t worry about it.

Great question! Not to sound too mysterious, but we have several proprietary sources of homes that other agents don’t know about or overlook. Since they’re proprietary, I won’t list them here. But if you’d like to talk about how we can find you such a home, call my office. We may just find you a great home you’d never have even known about!

Yes! And I’ll give you three quick reasons: 1. Your credit may be better than you think 2. Your credit may be exactly as you believe, but still good enough to buy a home 3. If your credit is indeed too poor to buy a home, a good lender will help you make a concreate step-by-step plan to improve it I have a GREAT lender who can do that for you. Just call / text / email me and I’ll put you in touch with him.

It’s usually about 3/8% to 1/2%. By the way, an increase in rate or points like this is called an “add” in lending parlance. So when you see or hear mortgage rates advertised, you’re usually hearing the lowest possible rate for the loan that lenders most want to make: - Owner-occupied - Conforming (up to $701,500) - 25% down or more - Single family home - Borrower with FICO scores 760 to 800+ If any of those items are not the case, then they add to the rate or points. Hence the term “add.”

Not much of a deal, if you can even find one. Foreclosures have been exceedingly rare in San Diego since 2012. From 2007 through 2012, I sold about 750 foreclosures for various banks, Fannie Mae, and other institutions. Since 2012, I’ve sold a grand total of ZERO. That’s for four main reasons: 1. Banks stopped loaning to obviously unqualified borrowers. 2. Banks stopped making those loans that were basically ticking time bombs. 3. Banks bent over backward to work with people to avoid foreclosing. 4. Prices rose so much that people tended to have plenty of equity, rather than being “upside-down” on their mortgage. So if they ran into financial trouble, they were motivated to sell and get the proceeds.

The majority of buyers for single-family homes, be they houses or condos, are owner-occupant buyers. Not investors. So if you were to sign a new lease, you’d be shutting out 75-90% of your market. Now, if you had already signed a lease, you’d have a few options: 1. Ask the tenant if they were willing to end the lease early. 2. Negotiate with the tenant to end the lease early. 3. Sell subject to the lease. I’ve done all of the above for clients successfully. But I can tell you #3 is definitely the toughest.

You don’t have a legal right to break a lease without penalty just because you’re buying a home. But you can move out early if you negotiate with the landlord for an early release or you’re willing to pay the consequences. If you have a good relationship with your landlord and possibly help them in finding a new tenant, many landlords will agree to let you out early. If they won’t, then you’re on the hook for the rest of the lease. However, I believe the landlord is obligated to make a good faith attempt to rent the home and, if able to, cannot hold you responsible for paying the rest of the payments. The last time I checked, I wasn’t an attorney, so please verify the last paragraph with one.

Yes! Student loan debt doesn’t prevent you from buying a home. And if you’re making your payments on time, you’re actually maintaining or improving your credit. I’ll have you talk to my preferred lender to tell you what price home you qualify for.

Each side has their own set of standard closing costs. In addition to the real estate fee, the seller typically pays, in declining order of cost: - Title insurance, owner’s policy - Escrow fee, seller’s portion - County transfer tax - HOA documents and transfer fee (if applicable) - Fees to pay off your loan - Recording fees All together, they total about .75 to 1% of your sales price.

Here’s the answer my attorney wants me to give you: You should get every inspection and test imaginable. That includes: - Basic home inspection - Roof - Sewer - Pool (if applicable) - Termite (pest control) - Heating, electrical, plumbing (by a specialist) - Structural/soils - Mold - Asbestos Now that my attorney is happy, here’s what I and most people do on a typical home: Get a basic home inspection and a termite inspection (unless the seller has gotten one already). If your home inspector feels additional inspections are needed, get them. Exception: If the home has a “red flag” indicating it may have an issue with the structure, roof, etc., then go ahead and get that inspection ASAP during escrow. Inspections are done after the offer is accepted, during your contingency period, which means you can ask for repairs and/or pull out if you’re not satisfied.

Yes! There are a variety of down-payment options available to you. There are loan programs with down payments of only 5% and less. And if you’re a veteran, you may be eligible to buy with zero down. Thinking you have to wait to save up for a down payment may actually cost you money due to 1) delaying all the financial benefits of home ownership and 2) prices continuing to go up. Call me and I’ll put you in touch with our preferred lender. He’ll tell you what price home you qualify for, how much down payment you need, and what your monthly payments will be.

Sorry, there’s no such thing. Once it’s closed, it’s yours. An exception MAY be if you were fraudulently induced to buy the home. But that would require legal action. A similar question I’ve heard is, “Is there a 3-day right of rescission after your offer is accepted.” That one is more complicated. The literal and correct answer: NO. But the more practical answer: YES-ish. What I mean is, there’s not actually any right of rescission once your offer is accepted. However, you almost certainly will have several contingencies in your contract, including: - Approval of inspections and investigations - Approval of seller’s disclosures And, until these contingencies are released, you can exit the contract without penalty, at your discretion, provided you exit in good faith. Please confirm the above with your favorite real estate attorney.

It depends on a few things: 1. Opportunity Cost Can you get a safe return somewhere on your money that’s much over the 4% you’re paying on your mortgage? If so, that’s an argument to put (or keep) your money there instead of paying off your mortgage. 2. Liquidity Do you need to have money available either for some opportunity or for a “rainy day”? If so, that’s an argument to keep the money liquid instead of paying off your mortgage. On the other hand, you could pay off your mortgage and get a credit line just in case. 3. Emotional Feeling Of Having Your Mortgage Paid Off To borrow from the Eagles, there’s a “peaceful, easy feeling” you get when you finally pay off your house. It’s a feeling of security, knowing your house is completely yours. For some people, that’s a great reason to pay off your mortgage.

There most definitely is! Let me quote what one of my very nice homeseller clients recently told me when a homebuyer asked for a huge, unjustified, very inflated credit on his house: “NOT A PENNY!” And he stuck to his guns. He was so offended by the transparent and ridiculous request that he said he’d rather cancel the sale than give them anything. What would have happened if the buyer had asked for a reasonable amount? It’s entirely possible he may have agreed to a reasonable credit. The lesson? If you want the other party to be reasonable and act in good faith, the best strategy is for you to do that also. Sure, you might ask for a little more than you expect to get. But don’t go overboard!

Delaware Statutory Trusts (DSTs) are the successors to Tenant In Common (TIC) investments, which were all the rage 10-20 years ago. Both are similar in some ways to a real estate investment partnership. Like TICs, DSTs tend to invest in commercial properties, often large “flagship” properties that are considered safe. Many of my clients invested in TICs with mixed results. But the reason some didn’t do well was because of the general real estate and economic downturn of ’07-’11, not necessarily because they were TICs. Also like TICs, DSTs can be a way to get good, consistent returns with professional management, so you don’t have to deal with it. Side note: This is a lot of your money, so I encourage you to do your due diligence before investing. And because I am not an expert in DST investments, please confirm my comments above with a knowledgeable professional in the field.

As long as the deck is built correctly, deck permits are generally not an issue unless the deck is VERY large and built on a hillside. Homebuyers are more concerned with permits on room additions. I can’t recall the last time a buyer even asked if a deck was permitted. So as far as selling the house, it shouldn’t be an issue.

Over 99% of the time the seller pays the buyer’s agent. The rare case where you would pay your agent would likely be if your agent found you a home that wasn’t listed and the seller refused to pay the agent’s fee. In that rare case, if you’re paying the fee, just offer the seller what you would have offered, less the agent’s fee. That could be an issue if you’re very tight on cash. But like I said, this is exceedingly rare.

Certainly not in San Diego. And not anywhere else I know of. The typical cash-on-cash return in San Diego is going to be around 3%. So if you find a place that has a 10% return on their real estate, please let me know!

In many states other than California, homes are re-assessed annually so that their assessments are close to their value. Not so in these parts. California’s Proposition 13 (from 1978) limits annual reassessments to a maximum 2% increase, with two exceptions: - Homes can be reassessed when sold. - The assessment can also be increased if the property is improved, but only by the value of the improvement. So the practical effect is, with San Diego’s average appreciation of around 4.72% over the past 20 years, the assessed value is already low the year after a home is sold.

I would not depend on an appraisal. In my experience they tend to be accurate only within about 10%, and the appraisal will cost you north of $500. The best way is to ask me to determine it for you! And I do that at no cost to you. There are two ways we can do that. First, I can do an “over the phone” valuation for you based on public records data and what you tell me about your home. This tends to be accurate within about 5-6%. Or I’d be happy to come out and see your home to determine the value. This is much more accurate, about +/- 3%. So, call/text/email me. Let’s talk and I’ll figure out the value for you.

Yes, it’s legal. And no, you don’t have to use that lender (which I believe would be illegal). Agents do this because it’s their job to protect their seller-client which includes making sure the buyer is qualified. Of course, you’d think that if your (or any) lender says you’re qualified, that should be enough. But in reality, I can’t tell you how many times lenders have blown it by not being thorough and asking the right questions. And the result was the buyer’s loan was denied. So, because the seller’s agent likely won’t know if your lender did their homework well, they want a lender they trust to confirm that you’re qualified. You can refuse, but that will make your offer less attractive. And it may make it seem like you’re concerned another lender will think you’re not qualified. My advice is to agree to the cross-qualification if you want the house. Believe me, it’s not that painful. And sometimes the two lenders can talk to each other without you being directly involved.

I saw those commercials too, and they seemed like a waste of money to me. But to be sure, I checked with my title company experts. They said that as long as you got title insurance when you bought your home, it’s still in place and you don’t need TitleLock or anything like it. If you bought using an escrow company (as almost everyone does in California), odds are 99.9% that you got title insurance. Either way, “title theft” is not common at all.

Hands down it’s choosing the wrong agent, and for all the wrong reasons. Unfortunately, most homesellers choose the agent they like the most, which obviously has nothing to do with that agent’s track record or skill. Even more importantly, it’s unrelated to the agent’s ability to get them the highest price, in a shorter time, with less stress, and to handle the whole process for them professionally. Another mistake people make is choosing their agent based on who estimates or promises them the highest price. Sadly, when a homeowner does that, what actually happens is either the price has to be reduced after many weeks or months on the market, or the home doesn’t sell at all. Neither of these are smart ways to choose an agent. If you want to get the most money when you sell your home and get tips on best practices to learn how smart people choose agents, ask me for a copy of my “Wise Client Guide To Selling Your Home.”

Great question! I’d say these are most important in getting your offer accepted, in descending order: 1. Price 2. Timeliness – offering quickly 3. Convincing the seller you’re well qualified I’ve developed several other effective and clever strategies that I train my team to use. So if you want better odds of getting YOUR offer accepted, call and let us find you that dream home…and get the seller to take YOUR offer.

There are several factors influencing whether getting a positive cashflow is realistic for a given property: 1. Will you manage or pay a manager? 2. Will you do most repairs and maintenance, or pay tradespeople? 3. Where is the property located? 4. What type of property is it? 5. What is the price? Generally, people getting positive cashflow with 25% down are buying a small condo, small house, or 2-4 units in a lower- to middle-economic class neighborhood. And they’re managing and maintaining the property themselves, except for big items (e.g. roof, electrical). Otherwise, you should plan on 30% or more down. But consider these two things: 1. Your cash flow will almost certainly improve as rents rise over time. 2. If you compare 25% down with negative cashflow vs. say 35% down, you can consider the negative as a form of a deferred down payment. Either way, we’re happy to get to work for you and find you the perfect investment property.

Great question! And you’re smart to ask it. As the seller’s agent, I have a “fiduciary” duty to look out for their interests. It would be both unethical and illegal to betray their trust and tell you if they’re willing to take a lower price. So, if I didn’t answer your question, why did I say you were smart to ask it? Because… About 1/3 of seller’s agents will give you a useful answer to that question. They’re not supposed to, and they’re violating their duty to the seller, but they will. Why? Some just don’t understand their duty. Others are willing to do so if it gets them closer to making a sale. As a matter of fact, when we represent (you, perhaps?) buying a home, we also ask that question. And, as stated, we often get useful “intel” to help you get a better price.

Good question. And I’ve got a short answer that may not be what you’re looking for… In the long run, in a city that’s pretty well developed, all neighborhoods appreciate at roughly the same rate, barring some specific event or trend. One example of an exception would be downtown San Diego’s revitalization over the past 30 years. That being said, here are two POSSIBLE situations that might apply in San Diego: 1. Proximity to trolley stations if – and it’s a BIG IF – public transportation catches on in San Diego. Many people think we’re too much of an automobile city for that to happen. We shall see. 2. If the Loma Portal area has their 30-foot height limits removed and the area is rezoned and redeveloped.

Buying and selling a home can be an emotional roller coaster. There’s a very curious human psychological event that often happens when people are trying to buy a home. I’ll call it “Rejected Buyer’s Remorse.” You may have heard of “Buyer’s Remorse.” Someone buys a home (or anything), then gets cold feet and talks himself out of it. With “REJECTED Buyer’s Remorse,” someone doesn’t get (or doesn’t THINK they’re getting) a home they want. This causes them to experience “cognitive dissonance,” the stress of holding two conflicting thoughts in their mind: specifically, ‘I want it’ and ‘I can’t have it.’ To end that stress, they rationalize reasons why they’re better off without the home. Such as: “We were paying too much,” or “We didn’t like the neighborhood anyway.” Your slow response or high counter-offer likely made your two buyers think they weren’t going to get the home. So, their Rejected Buyer’s Remorse kicked in and they convinced themselves they didn’t want it.

Great question, and the answer is “no.” The assessed value is generally based on the most recent sales price, then increased 2% per year (due to Proposition 13). Various factors can alter this formula, such as: - When values drop, as they did after the 2006 peak, the assessor will temporarily lower the assessment. - If you improve or add on to a home, the assessment will typically go up. They will take the current assessment and add the value of the improvement. - If you sell part of your property (such as splitting your lot), your assessment will go down. Bottom line: don’t look at assessed value to tell you what a home is worth.

That’s a good question. It depends on how you measure it and how much you put down. If you pay all cash, you should typically expect a 3-4% return on your investment. If you put less than 25% down, there’s a good chance you’ll have a negative cash flow (at least the first year), and thus a negative return. However, there are other benefits not factored into a strict “cash-on-cash return” equation: - Tax benefits (actual losses and paper losses – depreciation – may be tax-deductible) - Value appreciation - Paying down on your loan balance every month - Possible sweat equity (you improving the property value) If you add all those in you could easily enjoy a 5-10% return or higher. And that will go up over time.

Newly built homes offer some coverage by the builder against defects for up to ten years. Resale homes are only warrantied if you or the seller pay for a “Home Protection Plan” aka “Home Warranty.” Basic plans ($350+ for one year) cover many things that can go wrong with the systems of the home: plumbing, heating, electrical, and built-in appliances. You can also get additional coverage for pools, spas, roof, refrigerators, and other items. Note that like any insurance, this is not blanket coverage for anything that goes wrong with, say, your plumbing. It has to be a covered defect or problem. Remember, some of your best “insurance” is using a good home inspector to tell you upfront what imperfections or problems the home has.

Great question! I put them in three categories: 1. Selling Costs – Known 2. Selling Costs – Repairs/Unknown 3. Costs Of Owning Selling Costs – Known These total around 1% of the sales price, in descending order: Title, escrow, county transfer tax, HOA transfer and document fees (if applicable), fees to pay off your loan, miscellaneous. Selling Costs – Repairs/Unknown The typical home sale will have a small negotiation based on the findings of the buyer’s home inspection. I can tell you the average cost is around 1% of the sales price, but it can range from zero to quite a bit. Costs Of Owning These are not actually selling costs, but they are paid through escrow and will impact the size of the check you get. These include paying off your loan(s) and lien(s) if any, your last mortgage payment, and property tax proration (which could be a credit).

Here’s what goes into your FICO, with some comments and tips: 35% - Payment history How current you are with your monthly bills. So, pay everything ON TIME. 30% - Amount of debt It’s best to never exceed 30% of your available credit card limit and to pay it down to a zero balance each month. 15% - Length of credit history The longer your revolving accounts (credit cards) have been open and active, the better your score. 10% - New credit Opening any new account (even cell or cable!) lowers your score for 6-12 months. And new inquiries lower your score 5–22 points for 90 days. 10% - Types of credit Having both credit cards and installment loans (and making payments on time!) raise your score. But don’t open accounts just for a better credit mix – it likely won’t raise your score for a while.

No, but… Why don’t you want a sign? If you’re like most people who don’t want one, it’s because you don’t want your neighbors to know you’re selling. But don’t you suppose your neighbors might get a clue when people show up, one with a clipboard leading the others to your front door? Unless you can convince them that your home is on a randomly scheduled historical home tour (perhaps “Abe Lincoln slept here”?), they’re going to know your home is for sale. The other one I hear occasionally is that a For Sale sign attracts burglars. There are no statistics to support that. And I can tell you that of the thousands of homes I’ve had for sale since 1984, NONE of them were burglarized. So, the bottom line is: No, you don’t have to have a sign to have me sell your home. But I’m going to suggest you not be so shy and go ahead with the sign.

Nope. From years of experience, I’ve learned to be careful when dealing with lenders I don’t know. When I get an offer on one of my listings, I want to be sure the buyer is qualified to protect my seller-client from their sale cancelling at the last minute. So I require that my trusted lender preapprove most potential buyers of my client’s property. Is this necessary? You be the judge… A while back, I received an offer on a clients' home. My lender talked with the buyer's mortgage broker instead of the buyer. This lender had "preapproved" someone with no info but a credit score. In case you don’t know, that is not nearly enough data to accurately know if someone can get a mortgage. The bottom line is that many preapprovals are not really preapprovals at all. They’re just sloppy lazy guesswork that means almost nothing. You want to work with a more thorough lender who will ask the right questions and get the information needed to accurately—and actually—preapprove you.

First, my rule of thumb is, “When in doubt, disclose.” In your case, you definitely should disclose that you have a vacation rental and that it has consistent noise, even if it’s once a month. You’re legally required to disclose anything that could “materially affect the value or desirability” of the property. IMHO, that certainly fits the bill in your case. That being said, yours is ultimately a legal question. And because I’m not an attorney, I must advise you to seek advice from a legal professional.

Real estate contracts offer no right of rescission for either party. While not a right of rescission, the buyer of a property usually has specific contingencies that allow cancellation w/o penalty for a limited period. Why does the buyer have this and not the seller? It’s because buyers are coming into an unknown and are given time to arrange financing, inspect and investigate the home, etc. Under the standard contract, as a seller, you can only cancel if the buyer doesn’t perform. NOTE: When I represent a client selling a property, I negotiate the right to cancel if the buyer does not appear qualified. Incredibly, the standard contract gives such a weak, watered-down right that it can rarely be exercised.

If you buy new, timeshares are one of the worst real estate “investments” you can make. (I put “investments” in quotes on purpose.) Most people I’ve known to resell timeshares have sold them for considerably less than they paid. And they’ve been very hard to sell. If you buy a resale timeshare at a low enough price, it’s likely still not a great investment, but it’s better than buying new.

I hear what you’re saying, but ask yourself this question - which makes more sense?: 1. Pay market value for a home that you’re “meh” (not excited) about 2. Pay a tad over market value for a home you love and you want to raise your family in? The reality is that if you’re going to stay there a long time, it will make almost no difference in the long run. Now, I’m not saying to go crazy and pay 10% over value. But if you have to pay 1-3% over, go for it. On another note, we have our comprehensive “Get It Accepted” strategy that helps us get our clients’ offers accepted over other people’s offers. It includes how we win over the seller’s agent and the seller, and make our offer as attractive and easy to accept as possible. If you’d like to know more about Get It Accepted, call, text, or email me.

Definitely! Owning real estate is much better than having your money sit in the bank. Let’s say you buy a nice 2-3BR condo for $400,000. Here’s roughly where I’d see the monthly numbers: $2000 Rent $ 400 Taxes $ 300 HOA $ 300 Repairs/Vacancy/Misc $ 0 Management (assumes you manage) $1000 Positive cash flow So not including appreciation, annually that’s $12,000/$400,000 = 3% return. If you assume over time it will appreciate (for example) 5% annually, then that’s an 8% return. By my calculations, 8% is way better than 1%!

Sounds like your husband is suffering from a homeallucination! Respected housing economist Christopher Thornberg of Beacon Economics coined that phrase to describe when someone is unrealistic about the value of their home. Let’s set a time for me to come by and we’ll both hear him out. I’ll bring information on what neighborhood homes have been selling for and hopefully, we’ll be able to get him to see the light. On the other hand, in case he’s right, that means a higher price for you. That’s good too!

Deposits vary greatly and many people have different opinions on what’s normal. For me, it’s about 1% or more of the sales price, though I do sometimes see deposits up to 3% or more. It used to be that when you write your offer you’d give your agent a personal check made out to the agent’s firm or the escrow company. However, today the common practice is to wire the funds to the escrow company after your offer is accepted. So the escrow company holds your money until closing. Of if the sale cancels, they return it to you or give it to the seller, depending on what they’re instructed to do. Typically, it would go back to you unless you broke the contract.

I imagine you need this for tax or perhaps legal reasons. Unfortunately, there are no websites where you can accurately find a home’s historical values. And frankly, there are no websites where you can even find a home’s current value accurately, but that’s another story. How do you find out what a home was worth in the past? You’ll need to ask an experienced Realtor or an appraiser to do a forensic price analysis for you. Indeed, many attorneys and tax experts call on me to determine past values of properties.

There are many types of inspections: - Pest control (aka termite) - Home inspection - Mold - Structural / engineering - Plumbing, heating, electrical, roofing - And more I’m assuming you’re asking if you should get a standard home inspection (aka contractor’s inspection). The answer is a resounding YES. Even with a condo, it’s good insurance. Here’s one example… A few years ago, I helped a good friend buy a condo much like you described and she asked me the same question. I advised her to have it inspected. The inspector discovered the heater didn’t work, plus other items needing attention. Fortunately, we got the seller to make the repairs. For a few hundred dollars, she saved herself from some expensive problems.

Great question. The IRS will treat your sale as two different tax events: 1. Sale of a principal residence because you live in one side. You can exclude 250K of gain (500K for married couples filing jointly). So unless you exceed that, you’ll likely pay ZERO tax, provided you’ve owned and lived there for at least 2 of the past 5 years. This applies to the side you live in only. 2. Sale of investment property because you rent the other side. You’re subject to tax on capital gains and “recaptured depreciation”…UNLESS you do a 1031 exchange into other investment property. This applies to your rental portion only. Head spinning yet? Call me for more info, but verify all I say with a tax pro.

Great question. It’s the same concern you have when taking your car to a mechanic. Fortunately, this situation is different… Almost no professional home inspectors do repairs on homes they inspect, so there’s no incentive to “find” repairs that aren’t needed. Otherwise, it would indeed be a conflict of interest. But do understand it IS the home inspectors’ job to find every little item that may be wrong and to suggest further inspection if there are warning signs of things beyond his expertise, such as possible mold or settlement.

Happy to. Bank of America is the “servicer” who you interact with. They are paid by the “investor,” the entity who owns your loan. Large investors include Fannie Mae, Freddie Mac, Ginnie Mae, FHA, and private investors in mortgage securitization transactions. Your servicer may also be the investor, or owner of your loan, but that’s not very common. By the way, a good analogy is a property manager and landlord. The landlord hires the manager to handle the affairs of managing the property, including being the point of contact for the tenants.

I’d be happy to, but… By themselves, comps (sold homes that are comparable to yours) aren’t enough to correctly determine your home value. They need objective interpretation and adjustments for: - location - home size - usable lot size - # of bedrooms - # of baths - floorplan - view - garage - condition, curb appeal, design, interior appeal - market value fluctuations over time - etc. If you’re selling your home, knowing the correct value and optimum list price is critical. Don’t do it on your own unless you’re merely curious. (And if you’re thinking of trying to find out your home’s value from a website, I’ll resist the temptation to start a long rant of how grossly inaccurate those sites are.) If you’d like to know your home value, call me at 858-457-KENT. I may even be able to give you a rough idea over the phone.

In California's taxpayer revolt of 1978, voters passed Proposition 13 that: 1. limited property taxes to 1% of assessed value, + voter approved local bonds 2. limited the annual assessment increase to 2% However, Prop 13 arguably didn't provide enough property tax revenue for infrastructure in new areas. So State Senator Henry Mello and Assemblyman Michael Roos introduced the Community Facilities Act of 1982, creating bonds and fees to pay for new schools, roads, fire stations, etc. “Mello-Roos” shows up on the tax bill in addition to the approximately 1.2%. Many areas built after 1982 like Carmel Valley, Eastlake, Aviara, and Sabre Springs have Mello-Roos. It typically ranges from $50 to $300 monthly and usually expires 30-65 years from when the home was built.

Let’s assume you have two identical homes side by side. One has Mello-Roos and the other doesn’t. The one with Mello-Roos is obviously less desirable, right? The free market will take the Mello-Roos into account in the pricing and the Mello-Roos home will sell for less. So instead of never buying a home with Mello-Roos, I suggest you be open to one provided you can get it at a lower price reflecting the Mello-Roos fee.

Thanks for the question. A banker may answer this better, but I'll give it a shot. If you get a fully amortized loan (i.e. a loan that pays down to zero by the end of the term), every payment goes towards both interest and principal. So each payment reduces your principal loan balance. And as your loan balance goes down, the amount of interest you owe also goes down because you're paying interest on a smaller and smaller balance. Thus with each payment, the interest part goes down and the principal part goes up. It's not mathematically possible to design a loan as you're describing. If it was, you wouldn't be paying enough interest in the beginning and/or you'd be paying too much at the end. Either that's complicated or I'm making it complicated! Or both. By the way, one way you can pay down your principal quicker is either by getting a loan with a shorter amortization period (15 years instead of 30). Another way is by making extra payments towards principal.

Like many things, it depends. Most people prefer detached houses, but you get more for your money with a condo. For example, we have many clients who at first want a 3-bedroom, 2-bath house. But due to their budget, some end up buying a condo instead to get: - Into a better neighborhood - A 3BR/2BA condo instead of a 2BR house - A condo in better condition because only fixer-upper houses fit their price range - A larger condo vs. a smaller house On the other hand, there are some people who prefer a condo over a house because there’s less maintenance or they feel there’s more security if they’re away from home for long stretches.

Here are two quick ones for you: 1. Get a reference from the PREVIOUS landlord. If the prospective renter is bad, the current landlord may say nice things just to get them out of their rental. 2. Look at their car. How they care for their car often indicates how they care for where they live. Hope that helps…

I'd say most expect one, or at least aren't be surprised by one. But it's also related to the particulars of the situation. For example, if a home has been for sale for $1M for 3 months in a hot market, and a buyer offers 995K, they don't expect a counter. But if it was on the market for 3 days and someone offers 950K, then they would expect one. There’s another factor: value. In the latter scenario, if the home is really worth 950K, then the homebuyer may not expect a counter. Of course, value is subjective, so it’s not always cut and dried.

The first real estate investment experts universally suggest is your own home. Your first home can be a house, condo, or perhaps a duplex like my first home was. After that, I still recommend as a beginning investor that you keep it simple. Again, a house, condo, duplex, or maybe a triplex or fourplex. I don’t suggest vacant land, larger apartments, or other commercial property (retail, office, industrial, etc.) because those are more complex and riskier without more experience and sophistication.

Buying a home is highly emotional. When you get a good offer, if you make the buyer wait too long, they may go through an emotional rollercoaster of: - I’ve GOT to have that house… - I hope they answer soon!… - What’s taking so long?… - Ugggh, maybe they won’t take my offer… - We’re not getting the house…I’m so disappointed - Well, maybe it wasn’t meant to be… - Thank goodness we didn’t buy that house!” That said, my advice is case by case. It depends on how long your home has been on the market, how good the offer is, and whether other offers are imminent.

Great question. People ask me this a lot. In fact, many real estate agents have erroneously told me that homes must be brought to current code when they sell. That’s not the case. A home must only meet what are called “point of sale” requirements, which are surprisingly simple and few in San Diego: 1. Water Heater: The water heater must have correctly installed earthquake straps. 2. Smoke Detectors: There must be operative smoke detectors in the “sleeping areas,” meaning either in the bedrooms or the hallways outside the bedrooms. 3. Carbon Monoxide Detector: There must be operative carbon monoxide detectors. (Exception: all-electric homes w/o an attached garage.) Can you imagine the cost, work, and hassle if every home being sold had to be updated to the then-current building code? Thank goodness that’s not the law (yet?).

There are two-time frames, running concurrently, starting the day you close on the property you’re selling: 1. 45 days to “identify” the property(s) you’re buying. Identifying means notifying your “accommodator,” aka the 1031 exchange company that holds your funds. 2. 180 days to close your purchase. Exception: you can’t file your taxes for the year you sold the property until you close your purchase. So if you closed your sale 12/31/20 and haven’t closed your purchase by tax time 4/15/21, you must file an income tax extension. Some people are nervous about the 45 days and don’t feel it’s enough time. The solution is to start looking and probably making an offer while your sale property is in escrow. BTW, this answer assumes you’re doing the typical “delayed exchange” and not a “reverse exchange,” where you close on your purchase before you close on your sale. As always, please verify this (and anything I say that sounds like tax advice) with your tax professional.

- When you bought, you almost certainly paid the “lender’s policy” to insure your lender. And your seller paid the “owner’s policy” to insure you against loss. When YOU sell, you now will pay the “owner’s policy.” So it’s a different policy than the one when you bought. - You say nothing has changed, but a homebuyer won’t just take your word that you have no title issues. As far as the buyer knows, you owe the IRS $1,000,000 and the IRS could attach the house after the sale. - You could have title issues you don’t even know about. Perhaps your fence is built 4’ onto your neighbor’s property and you don’t even know it. But the issue may come up after your buyer owns the home. - You’re not actually LEGALLY required to pay for title insurance when you sell. However, the seller pays for it 99.9999% of the time. If you refuse, you’d be seen as “difficult” and the buyer will either walk or just pay you less for the home to compensate for having to pay the cost.

Oh my, there are so many! Here are some that come to mind: 1. Choosing the wrong agent, especially choosing on personality instead of experience and skill. 2. Choosing a bad, dishonest, or high-rate lender. 3. Not changing criteria if unable to find a home after several weeks. 4. Overpaying for a home. 5. Taking too long to offer when they find a well-priced home. 6. Not willing to pay full or over list price—when warranted. 7. Thinking the home they buy will be perfect. 8. Not having urgency to get things done during escrow. 9. Choosing the wrong agent (did I mention that?) By the way, these mistakes apply whether you’re buying your first or fifth home.

Your lender will select the appraiser. So you should talk to them. It has to be an appraiser on their approved list. The cost should be $500 to $600 unless you have a very unusual and/or large house, or a lot of acreage.

For most homesellers, it’s all about the price. But you’d be surprised how many prefer to sell to a homebuyer that they like. It might just be a “tiebreaker” if there are roughly identical offers. In fact, many of my clients over the years have actually agreed to slightly lower prices so they could sell their home to someone they like. I’ve heard them say… - “They’re such a cute couple. I’d love for them to have our home.” - “We put so much into this home. They look like they’ll really take care of it.” - “This would be a great home for them to raise their family in, just like we did.” So, yes, I’d say write the love letter! (By the way, we help write them for many of our clients.)

Since the sign is still up, “Sold” in this case means the buyer and seller agreed on a price and it will be several weeks of “escrow” before it closes. “Sold” can also mean when the deed is recorded, the sale is final, and the buyer owns the home. That’s when you can definitely find out the price. Agents are not supposed to tell you the sold price until the sale is final. Why? Because if the sale cancels, the agent would have revealed what price the seller was willing to sell for, putting the seller at a disadvantage when negotiating with future buyers. It’s a violation of the agent’s duty to the seller. Despite this, some agents will still spill the beans about what price the seller accepted, violating this duty. So, we’ll have to wait until the sale is final. I could call the agent and ask, but I’d be asking him or her to violate their duty to the seller. And the odds are they wouldn’t tell me anyway.

The following story actually happened to me two separate times… I made an offer on an apartment building and it was accepted. That was the good news. When I went through the apartments, I asked the tenants how much rent they paid. Oddly, EVERY tenant paid less than what the seller’s agent had stated. Because I was basically buying an “income stream” and that stream was shallower than promised, I pulled out when the seller refused to lower the price. That’s why… When you buy a rental property, it’s prudent to verify that the seller’s statements about rents and deposits are accurate. And an estoppel letter (yes, it’s an odd name) is what we call the form that tenants sign stating what rent they pay, if they’re due any future free rent (common in tough rental markets), what their deposit is, etc.

That’s a great question and a great idea. You never want to go by the income and expense data that the seller’s agent presents in marketing as it’s often inaccurate, especially when the agent isn’t familiar with income property. So it is indeed customary to get the seller’s Schedule E if you’re buying a larger building, say over four units. If you’re buying a house or a duplex, it’s probably not so critical, though it wouldn’t hurt. When looking at the numbers, it’s important to keep a few things in mind: - Annual property taxes will change to about 1.1% of the price - If the owner manages or maintains the building him/herself, the costs will be lower - High costs could be a bad or good thing. It may warn of a high-maintenance building. Or it could be that a lot of work was done recently and it’ll require less work for a while Thanks for the great question!

It’s perhaps the best time in the history of San Diego real estate to sell now! But let me address something you said… Fair market value (FMV) can be defined as: The highest price a willing buyer will pay for a good or service and the lowest price a willing seller will sell in an arms-length transaction if both have all relevant information and the good or service has been exposed to the market for a reasonable time. So, the truth is not that buyers wouldn’t pay you fair market value. It’s more that you weren’t willing to sell your home for fair market value. And that’s perfectly fine. No one says you have to sell your home if it’s worth more to you than what people will pay you for it.

Not impossible, but it’s very rare. The vast majority of condo complexes require minimum rental periods of 30 days or longer. And what makes it even harder to find is that our database of homes (MLS or Multiple Listing Service) doesn’t have a searchable field for short term vacation rentals. In other words, I can’t search for that. So, I’ll work on it, but your selection will be very limited.

Unless otherwise agreed in writing, the contract requires removal of all personal property and debris. So, you can’t just leave personal property and other “stuff,” even if you think the buyer will want it. So, if it’s not agreed to up front in the contract, you need to get the buyer’s okay during escrow.

Unless you live in La Jolla, where no signs are allowed, there’s no good reason to sell without a sign. Some of my homeseller clients have told me they don’t want a sign because they don’t want their neighbors to know they’re selling. Of course, what I tell them is their neighbors will figure out their home is for sale when people drive up and a person with a clipboard leads the others into the home. Occasionally people say they don’t want a sign because they think it attracts burglars. But there’s no data whatsoever supporting that. And of the some 4,000 homes I’ve put up for sale, ZERO were burglarized. Pretty safe odds.

Homeowner’s insurance is hazard insurance and covers items damaged in fires, by water, by wind, or other covered events. Unlike homeowner’s insurance, a home warranty covers parts of a home that can break down. These “parts” include systems like electrical, plumbing, heating, air conditioning, and with expanded coverage can include other components like a pool, spa, roof, fridge, etc. Should you get a home warranty? Personally, I never do when I buy. But many people swear by them.

Your best source is to ask a good, reputable, experienced agent. He or she will know a handful of honest and experienced mortgage lenders. Give me a call or shoot me an email and I’ll tell you who I recommend.

Great question. You should set your range with your expected value around the middle of the range. That allows for an attractive lower end of the range to draw interest, and a higher range to give you negotiating room and allow for a higher price. The amount of the range varies. I’ve seen agents set a range of as little as $1,000 (pointless!) to as much as 25% (confusing!). Most agents use about a 5% range. But I’ve found around 8–10% to be optimal, preferably with round numbers at both ends. So, for your $500,000 home, I’d ask $475,000 to $525,000.

It’s completely legal. It’s called a “cross-qualification.” What wouldn’t be legal is if they required you to use their lender. I understand your frustration. However, the seller’s agent has a duty to look out for their client. And part of that is verifying that you’re qualified so the sale doesn’t fall through later if your lender denies your loan. And just because one lender wrote you a prequalification or preapproval letter does not guarantee that. Yes, it’s irritating. And in a perfect world, they’d just take your lender’s word for it. But, if you want the house, I suggest you agree to the cross-qualification. It will help improve your odds of getting your offer accepted.

Wikipedia, the ultimate source of all knowledge, defines value this way: Fair market value (FMV) is…what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market. Put simpler, value is what buyers are willing to pay. So your previous experience seems to say that you weren’t willing to sell your home for what buyers were willing to pay. And that’s perfectly fine. No one says you have to sell your home if it’s worth more to you than what people will pay you for it. Here’s the good news: The market is “en fuego” (on fire) right now. Values are up significantly and homes are selling for the highest prices in recorded history. So yes, it’s a good—even a great—time to sell now!

Uh oh. Your friend knows more than your agent! (Meaning your friend is correct, that you start counting from the actual acceptance date.) Even if your offer is accepted on a weekend or holiday, that’s still considered the acceptance date. Your agent may be confusing when you start counting with when you can close: You can’t CLOSE on a weekend or legal holiday because the county recorder is closed. So by default it gets bumped to the next business day, which is almost always a Monday. The exception would be if buyer and seller agree to close a different date.

Here’s how wholesalers operate… They get their offer accepted. Then THEY try to find someone to buy the property for more than the price they’re paying. If they can't, they either usually try to renegotiate the price down or they cancel. I've had some offers with wholesalers close, but also that didn’t, so they’re usually my last choice of who I advise my clients to accept an offer from.

Happy to shed some light on this. In a nutshell… Section 1 items are current problems, such as termites or dry-rotted wood. Section 2 items are more preventative. These include “earth to wood contact” (e.g., a patio post stuck directly in the ground, which may lead to dry rot) or a “faulty grade level,” when the soil is too high against a structure, which may lead to moisture entering the structure and doing damage. By the way, it used to be the norm that every seller would provide a termite (aka “pest control”) clearance. In this overheated market, it’s by no means a given.

OK, so I’m not going to ask what your cash business is. But I will answer your question. Banks don’t like “cash from a mattress” or safe or wherever. That’s because they want to see a paper trail showing that it’s your money. They want to be sure you have skin in the game and aren’t just borrowing the down payment money. If you’re using your own money, you’re a much better risk to the bank. Bottom line is you have to put that cash in the bank and get one or two bank statements showing the funds. And you’ll probably need to explain and document where it came from.

Unfortunately, to be frank, you’ve made two – or possibly three – very common pricing errors at the same time! They are: Cherry-Picking means looking at the available data and only using the home sale activity that supports the highest possible price, while ignoring that which supports a lower price. Using List Prices means (as it sounds) pricing based on someone’s asking price, even though no buyer has paid it. What someone asks but hasn’t gotten gives you no information about what price a buyer will pay you. Rose-Colored Glasses is when a homeseller assumes their home is nicer because they emphasize the positives in their home and the negatives in the homes they compare it to. You may not be “guilty” of the last one because your home may well be better than the other one. Nevertheless, the first two errors or fallacies are enough to throw you off from market value. We should look most to those two sold condos for determining your condo’s value.

Yes! Thanks for asking. Tip #1 Work with an agent who has sources of homes outside the MLS. We do. I call it my www.FindItOffMarket.com program. Tip #2 Work with an agent with a well-thought-out strategy for getting your offer accepted. We call that our “Get It Accepted” program. Tip #3 Work with us because we do #1 and #2 above. We recently helped one couple find a great home that wasn't on the market. And in another case, I helped a great client get her offer accepted on a house even though she was only fourth highest of 14 offers. To find out more about how these programs work, call us at 858-457-KENT!

Both the buyer and seller have closing costs. For the buyer, the main costs are loan fees, half the escrow fee, inspections, and the lender's title insurance policy. (There are also prepaid items that aren’t truly closing costs, such as part of the mortgage and fire insurance.) For the seller, the main closing costs (aside from the Realtor fee) are the owner's title insurance policy, half the escrow fee, and county transfer tax. Which party pays which closing costs varies by geographic region and is not set by law, but there's a very ingrained tradition. It would be highly unusual for the seller to ask the buyer to pay seller’s costs. If a seller did, the best result would be the buyer lowering their offer by an amount equal to those costs. And the worst is that the buyer may walk, based on principle.

Congratulations. That’s a great idea and I’m glad to hear you can afford to do so. To answer your question, I’d have to know your loan balance, interest rate, when you took out your loan. With that information, then I’d have to either be Rain Man or go to a website like this: http://mortgage-x.com/calculators/extra_payment_calculator.asp So I recommend you visit that or a similar site and plug in your numbers to find out how quickly that extra $500 (or any amount) will help you pay off your mortgage.

Excellent question, because there is much more to an offer than price. I also look at: - any costs the seller is asked to pay - escrow period - initial “earnest money” deposit - down payment amount - buyer’s qualifications And I look hard at two things others might not: - Reputation and experience of the agent - Reputation and experience of the buyer’s lender As I often say in this newsletter, it’s WAY too easy to get a real estate license. So in representing my seller, I feel more secure if the agent is experienced or on an experienced team. And for lenders, I’m very wary of prequalification or pre-approval letters from lenders I never heard of. Too many lenders will write such letters without doing their homework. Then they drop the ball and have the escrow delay or fall through entirely.

Most likely, yes. But… There are some cases where a sketchy seller’s agent doesn’t tell the seller about other offers so he can get his own offer accepted and make both sides of the commission. That IS both unethical and illegal—illegal because the agent has a legal duty to present all non-frivolous offers to the seller. However, most of the time that an offer isn’t responded to is completely above board: the seller gets a better offer that they’re happy with and decide to accept it, rather than counter lesser offers. One could make the argument that the seller should counter all offers because a buyer may just be starting low but willing to pay much more. On the flipside, I’ve represented a homeseller where we countered all buyers and the best buyer walked and we ended up selling for less.

Yes, and no. Yes, banks have the legal right to sell your mortgage. And no, they cannot change any terms of your loan. By the way, years ago some clever and very criminal “scamtrepreneurs” (hey, I made up a word!) sent letters to people saying their mortgage has been sold to their company and to start making payments to them. For this reason, I believe (though I’m not certain) that the existing lender is required to send you a letter announcing the sale or transfer of your mortgage. Whether you get such a letter or not, if you want to play it safe, you may want to call your existing lender and double-check. Especially if the sale is to some company you’ve never heard of.

Yes! As a matter of fact, we have what we call our “Get It Accepted” method where we combine several proprietary strategies to get our clients’ offers accepted in this crazy market. Like I said, these are proprietary, but I’m happy to share a sample of them: 1. Offer a higher price (OK, you knew that one) 2. Get full loan approval ahead of time, subject only to an appraisal 3. Offer to remove your loan contingency sooner 4. Offer to release some or all of your deposit to the seller when you release your loan contingency 5. Have your lender email or call the listing agent to say how strong you are 6. Work with a team like us with sources of homes that aren’t even on the market Hope that helps! But feel free to call my office and we’ll put our Get It Accepted program to work for you and get YOUR offer accepted!

No. There’s no requirement to be a first-time buyer if you’re getting an FHA loan. There are actually very few special loans for first time homebuyers. Interestingly, of the few that do exist, “first time homebuyer” tends to be defined as someone who hasn’t owned a home for at least three years.

It's important we have the right expectations about the market. Indeed, it's definitely a strong seller's market. Right now, I’m seeing about 15% of buyers paying cash. That will vary by price range and situation. In the past year, of the 100+ offers I've received on my clients’ properties, one had the inspection waived. That was a vacant condo where the buyer had a contractor do a quick inspection before they offered. I'm not hearing at all that waiving home inspections is a trend. What is common is for homes to sell over list price. Of course, it depends on what the list price is relative to what homebuyers perceive the value is and are willing to pay. Should you do any work to your home before selling? The answer is yes and no. I believe some repairs will pay you more or much more than your cost, but they may not be worth the trouble for you, and your home will still sell. It’s your call. I’m happy to walk through your home and suggest profitable repairs, then you can decide.

A decent deposit is 1% of the offered price. If you want to show the seller you’re serious (that’s why it’s called an “earnest” money deposit) you might make your deposit 3% of the price or more. Do you get your deposit back if the house doesn’t “pass” inspection? First of all, there’s no universal standard to pass or fail a home inspection. It’s between you, your inspector, and your Realtor whether you decide if the home is in satisfactory condition. If you deliver your objection to the home’s condition to the seller’s agent within the “investigations” contingency timeframe you and the seller agreed to in the contract, you will get your deposit back if the sale doesn’t go through.

I often rant about how grossly inaccurate ALL the home pricing websites are. It’s not uncommon for them to be 10%, 20%, even 40% off. So do yourself a favor and, whether you’re buying, selling, refinancing, or whatever, NEVER ever depend on a home evaluation site for a home value.

Years ago, two agents that worked for me bought a fixer-upper house. They told me they were going to “1031” the money into another house and do the same thing. Unfortunately, I had to break the bad news. To be eligible for a 1031 tax-deferred exchange, the IRS says a property must be “held for investment, business, or use in a trade.” That means it can’t be held for resale. To be eligible, you’d have to intend to rent the property out. And the best way to show that intent is to actually rent it out, for a good year or more. So, I’m sorry to tell you I don’t think you can do an exchange on your fix and flip house. But please consult your tax professional.

First of all, to be assured of getting it back, you must comply with the contractual contingencies and timeframes. Your deposit should be in escrow by this time. Escrow is a neutral third party that can only take action based on mutual instructions from you and the seller, or a court or arbitration order. 99% of sellers will tell escrow to release your deposit if you object within the time frame. For that 1% who won’t, you’d have to go to mediation, arbitration, or small claims court. But that’s rare, so I wouldn’t worry about it.