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START AT THE BEGINNING, WHEN BUYING AN ESCONDIDO HOME…

What’s the first question you ask yourself when you’re ready to buy a home?  It should be, “How much can I afford?”  Without that crucial piece of information, you can’t even begin your search.  Figure your monthly income and debt payments, order your credit reports, and determine how much you can put down.

Now, apply for pre-approval from a number of lenders, to shop for the best interest rate and terms.  You can choose fixed or adjustable rate, and a conventional or government or jumbo loan, among the most common types of mortgages.

Now, what do you want out of your new home?  Want a location within the city, close to downtown, in the suburbs, or a rural setting?  How many bedrooms and bathrooms, in a single family home or townhouse or condo?

Now that you’ve figured out what you’re looking for and what you can afford, locate the neighborhoods that satisfy your requirements.  A local real estate professional that’s seasoned in the area, can help guide you. The best way to find your agent is through referrals.  And interview them before committing, to make sure you have the right “chemistry.”

 You can browse listings online, and your agent should be able to provide a list of suitable properties when you are ready.  He or she will schedule appointments to view homes and you can also attend open houses if available.  My upcoming column will guide you through some of the next steps.

Please feel free to contact me for your real estate questions or needs. 
There’s no cost obligation or pressure.  Let me EARN your business!

THE “PRICING” PUZZLE

If you need to sell your Escondido area home, but it’s lost value since you bought it, you’re facing a pricing puzzle. But before deciding on a fair price that may be below what you really want, consider the costs of not selling by asking too much.

If your home sits on the market, waiting for a higher offer, you’ve got to figure in the costs of continuing your monthly mortgage payments, utilities, maintenance and insurance.

Compare the asking prices of similar homes to the actual sales prices, often determined more by the lenders than the buyers. If you’re asking more than your home’s current real value, the required appraisal will show that, and the lender won’t approve the buyer’s loan, leaving you back at Square One.

Walk in the buyer’s shoes and do your homework. Tour similar homes listed in your area (we will be glad to assist with this). Compare their price per square foot and see how yours stacks up against the competition in terms of value. This should help you arrive at a realistic and aggressive asking price that will hopefully be your sale price!

The amount of local inventory determines your price, too. The more homes that are on the market For Sale in your area, the more competition there is for yours.

There are several factors that must be considered before establishing a realistic value. Starting with an accurate value (in the current market especially) is as important as what is done for marketing the property, when it comes to a successful house sale.

BOTH SIDES HAVE BENEFITS

There are new rules regarding short sales meant to improve the experience for both sellers and buyers, but the legalities and legwork can overwhelm even the most savvy.  Of course, that’s where the real estate agent shines, handling the paperwork and the phone calls, leaving you to focus on your move.

Keep in mind that if you’re expecting to buy an Escondido area home on a short sale, you can get a great deal, but don’t expect miracles from a bank that has agreed to accept a price lower than what the sellers owe on their mortgage.  These short sales often generate multiple offers, and though short sales can often be purchased at a below market price, don’t expect to waltz in with an offer $125,000 on a property with a current market value of $200,000.

The real advantage of a short sale transaction is that the home will likely be in much better physical condition than its foreclosure counterpart.  Often, a foreclosed home will have been abandoned for months, and perhaps trashed before being vacated. A short sale property in better condition is in and of itself a benefit with real value that offsets any lower price you could offer on a foreclosure.

And for sellers, a short sale preserves your dignity, reduces some of the stress, and won’t damage your credit history as much as a foreclosure.  Whether selling or buying, consult a competent Realtor for the best results.

FOR MORE INFORMATION REGARDING BUYING OR SELLING ESCONDIDO REAL ESTATE GO TO www.AnthonyRealEstate.net. OVER 30 YEARS LOCAL REAL ESTATE EXPERIENCE!

HOW TO BUY LIKE A SELLER!

If you’re in the market to buy an Escondido area home, take a counter-intuitive tip and imagine the day you’ll be selling it.  That’s right – whether you’re a first time buyer, or relocating, this home probably won’t be your last, so look for features that will pay off when the day comes to move again.

North, south, east or west, the biggest amenity the next buyer will look for is central air conditioning.  In the Deep South, over 90% of buyers rank central air as critically important, and three-quarters of buyers everywhere else put it high on the list.

Another often-overlooked feature is storage.  Over half of buyers desire a two-car garage and a walk-in closet for the master bedroom.  Ample closets and storage space just can’t be stressed enough.

If at all possible, avoid costly upgrades and offer incentive down the road by purchasing an energy efficient home with newer windows, pervasive insulation, and Energy Star appliances.  If the home is already wired for cable, satellite, and high-speed Internet, so much the better.

Finally, it’s still all about location, location, location.  It’s the one thing you can’t change about the home you buy, so look for good schools (even if you don’t have children) and proximity to shopping and recreation.  Just ask your agent about the most popular features in your area and take heed!

If you have a North San Diego County CA real estate question or need, feel free to contact us for FREE information or advice.  There is absolutely no obligation or pressure.

SHORT SALE…A BETTER ALTERNATIVE

Due to recent government incentives, short sales in the Escondido California area are becoming popular in the distressed-property market. A short sale keeps owners from foreclosure, because lenders allow homeowners to sell for less than they owe.

Banks have sped up the process, hiring large numbers to serve the demand. In early 2010, one large bank had more than doubled the number of short sales it approved, sometimes as quickly as 24 days, compare to last year, when short sales took a minimum of 6 months or longer!

The biggest roadblock was often a 2nd mortgage held by a seller. Since the primary lender must be paid first, the 2nd lender could be left with nothing, and basically kill the sale. Now the Home Affordable Foreclosure Alternatives (HAFA) program provides money to primary lenders who share proceeds with the second lien holders. HAFA also provides up to $6,000 to secondary lenders if they release their claim.

Short sales keep borrowers out of foreclosure & can reduce the impact on their credit. Foreclosure can take 200 points off the score, but a short sale is about half of that. Hopefully, the short sale boom will bring us closer to end of the foreclosure crisis.

Feel free to contact Jay Anthony for your Escondido, CA area real estate questions.  There is absolutely no cost, obligation or pressure of any kind.  He has over 30 years residential real estate experience in the greater Escondido area (North San Diego County, CA), serving this area since 1978!

PRICING UNDER PRESSURE

Deciding on an asking price for your Escondido California home is challenging enough these days, but you need specific pricing strategies for particular scenarios, especially if you’re under pressure to move quickly or your home isn’t selling after being on the market for several months.  Here are suggestions for both situations.

If you’re facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today’s market.  You’ll need to list at significantly less than your competition.  Think 15% less.  That may seem tough to stomach, but it’s better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your home.

If your home has been listed for some time, but not generating interest, you’ll need to lower your price.  Of the three elements that sell a home – price, location, and condition – price is the one you’ll have the most control over.

If home values have declined in your neighborhood, the price you originally listed at a few months ago may now be too high and out of line with comparable listings.  Now would be the time to have your real estate agent prepare a new Comparative Market Analysis (CMA) and reevaluate your pricing strategy.  If you’ve got to sell, and sell now, price it like you mean it.

Feel free to contact me for your real estate questions or needs.  There is absolutely no cost, obligation or pressure.  We’ve earned a reputation over the past 30+ years for honesty and high ethics.  Let us earn your business too!