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 June/July 2010
Selecting your Realtor!
So you’re thinking of selling your home? Here are a few tips to get you started in selecting a Realtor.
First, ask your friends and family if they know of anyone that they’ve used and had a good experience with. There is no higher compliment for a Realtor than a referral from a past client or friend, and if the Realtor has earned the respect of that person, they must have done a good job. Obviously if you have a past relationship with a good Realtor then you should stick with them if at all possible.
If you have a Realtor that works or “farms” your neighborhood, “the neighborhood expert”, definitely give them a call. Often times, they have the knowledge, passion and experience to assist you in possibly getting you a higher price just based on their expertise.
Another thought is going to Open Houses to see how the Realtor Host works to actually sell the home that they are in. If you run across someone who is knowledgeable, honest and actually attempting to sell the home they are sitting, you may want to give them a call as well.
In any case, make sure that you are provided a marketing plan, marketing materials, a resume, referrals, and comparables as a minimum during your interview process. See what they really bring to the table for you – selling is a complicated process – go with the best!
Need a Buyer’s Agent? Selecting a Buyer’s Agent is not a simple process either. Some agents actually specialize in working with only Buyers. Some agents have Buyer’s Agents working for them. What is the difference? How does it work? Ironically, as the internet has become such a large part of our lives, all of inventory is available for us to see, but what about the entire process of home buying?
In a nutshell, your agent for a home purchase can be contractually exclusive to you and you to them, or it can be a hand shake agreement. Who has the most knowledge in financing, schools, shopping, the neighborhood, who has the most negotiation expertise, who do you feel the most comfortable with, who will actually work for you?
Use the internet to check them out. See if there is a “neighborhood expert” – they may have the inside track on exclusive listings. Ask for referrals, meet them at open houses, ask the questions that you expect an informed direct answer to before you commit to them. Make sure that they look at you as a client and a relationship, not just a paycheck. Use your instincts, they’re usually right. And of course, you can always call me!
 May 2010
Preparing you home for sale. What will make your home shine?
So you’re thinking of selling your home? Well before you’re ready to plant that “For Sale” sign in your front yard, there is work to be done to prepare your home for sale.
Remember how keen your eye was to every small detail and defect in the houses you saw as a buyer? Now that door to your bedroom that never quite closed properly or that leaky faucet that you never got around to fixing will be seen by a potential buyer with that same keen eye.
Start making the obvious repairs today – even if you don’t plan to sell until a year from now. These repairs can cost money and take time. Plus fixing it now will allow you to enjoy the results before it’s time to move out.
If you plan on doing some improvements before the sale, the best place to start is where the buyers start: at your curb. Potential buyers base a large part of their decision on a property’s “curb appeal,” so make yours say something positive. That means a tidy front yard, a house with well-painted trim, a tidy driveway and a clear, welcoming entryway.
Inside, the biggest return on your investment continues to be improvements to the kitchen, followed closely by improvements to the master bedroom. If you’re making these improvements shortly before selling the house, consider painting and decorating the rooms in neutral colors, the most appealing choice to the greatest number of potential buyers.
Inside and outside, start reducing the clutter. When it comes time to show your home, less will mean more. Potential buyers don’t want to see how your closets overflow with clothes, how every room feels cramped with furniture, or how the yard is difficult to maneuver with that rusty swing set in the way. So downsize now; it not only will make the preparation for showing your home easier, it also will make packing for your move faster, easier and more efficient.
Outside, you’ll need to keep your lawn trimmed, the rose bushes pruned, the weeds tamed. Add some color in the planters, regardless of the season. Put away the garden hose and the tools. Make sure the bulbs in your home’s exterior lighting fixtures are all in working order. Be vigilant about removing flyers, handouts and newspapers left on your front doorstep or driveway. Remember, first impressions are very important for you.
Now you’re ready to call Alex and be ready to move!
Next Month I’ll discuss how to select your Realtor, in both Buying and Selling your home.
 April 2010
Searching The Internet for Real Estate Information
The internet can be a wonderful tool in assisting both Buyers and Sellers with their respective Real Estate transactions. In either case, there are many ways to use it in a positive manner, while remaining cautious of the possible pitfalls that may await you. Please read on for a few pointers.
Let’s start with home Buyers. Purchasing a home is a process that, like most purchases, can be made a little easier with available accurate information at your disposal. The key words here are accurate information. As we all know, the internet offers access to many websites that may or may not provide the truthful data that you are looking for. Be careful to base your home buying or selling decision making on information that comes from a known, reliable source.
Home searches and loan information are probably the two most commonly inaccurate sources of information that are out there in web land. In many cases, the information provided is not up to date, and you may find yourself calling or emailing for information only to find that the home that you are inquiring about hasn’t been available, in many cases, for as long as 6 months. Make sure that you use reliable websites in your searches, or better yet, use the website of a well known Realtor, who bases their reputation on providing up to the minute property information regarding availability and content. I welcome you to access my website for such information.
Loan information is available everywhere, but again, you must understand that the information provided may not be up to the minute as the market rates and fees change constantly. Until you actually “lock in”, you cannot be guaranteed any specific fees or rates. Referrals are the best way to find the best loan representatives in your area.
What about Seller’s information? If you are a potential Seller trying to get a general sense of what your home may be worth, the internet can be a great tool to use. The same rules apply regarding accurate information, and many websites simply do not take the available closed escrows and make them available to you. Title companies are a great source of accurate information as well. Of course, the easiest way to obtain information is by using your Realtor, who can navigate through the information for you. I recommend talking to more than one Realtor because they all don’t have the same perspective of value as it relates to the information at hand. You should be able to find a top notch Realtor online as they should have a website and information available for you online without obligation to you. Feel free to check me out at www.alexgandel.com.
Next month I will discuss preparing your home for sale, what really is important, and is “Spring Cleaning” really necessary in preparation for marketing your property
 March 2010
Cost of Buying and Selling a Home
“Alex, why are there so many costs involved with buying and selling homes?” I can’t tell you how often I am asked that question. Please read on to find out more about this subject.
Let’s start with the home buying process. Purchasing a home is a process that may require many hands to complete the task. As a Buyer, there are fees that are required and some that are not required. When financing a home, some of the fees that are required are typically escrow fees, title fees, loan fees such as points, which are a percentage of the loan amount, otherwise known as a loan origination fee, processing fees, loan document fees, appraisal fees, inspection fees, wire fees, and more. These fees are typical “Buyer” fees and they may be paid by either the Buyer or the Seller, depending on the way the transaction is negotiated. It is not uncommon for the Buyer’s expenses, including prorated taxes and/or interest, to be as much as 3% of the purchase price.
Will the Buyer’s bank pay for the Buyer’s fees? Yes, but if they do, the interest rate is typically higher than if the Buyer pays their own fees.
Can the Seller pay the Buyer’s fees? Yes they can. There may be limits on what they can pay, and this is generally negotiated into the price of the home.
Who pays the Realtor? In most cases, the Seller pays the Real Estate commissions, but there are cases where the Buyer pays their Realtor for their services.
What about Sellers costs? Seller’s closing costs are different from the Buyers in that they don’t have loan origination fees, but they do have loan payoff fees if there is a loan of record, higher title fees, Real Estate commissions, proration of interest and taxes, home warranties and HOA transfer fees, which are negotiable, county fees for the recording of the grant deed, and more. As previously mentioned, sometimes the Seller pays all or part of the Buyer’s fees as well.
Are Processing Fees negotiable? Most fees are negotiable, and quite honestly, those decisions are typically made at the time of purchase or sale.
Next month I will discuss the internet and how it helps both Buyers and Sellers. Please do not hesitate to call or email me at any time with any questions that you have
 February 2010
Short Sales and Foreclosures
January flew by with the usual “is it already February and why does time go so fast” comments in my business. As always, I’m asked questions regarding Short Sales and Foreclosures and specifically questions regarding “what will happen when the next wave of Foreclosure properties hits, and what is a Short Sale?”. Maybe this will help you with some of those questions.
Let’s start with Short Sales. What is a Short Sale? A Short Sale is a transaction where the owner of the property is asking the lender of record to accept a payoff amount that is less than what is owed on the property. This means that the loan amount is higher than the value or sale price of the property and there is not enough money to close escrow unless the bank accepts a lower amount than the actual amount owed, including late payments, past due taxes, closing costs, etc. These types of properties are “under water”.
Will the banks do this? Yes, in many cases it is better for them to do this than foreclose and take the property back. The owner, or Seller, must be able to prove that they are unable to meet their financial obligations due to various reasons such as job loss, illness, etc. In order to do so, they must apply for the short sale with their lender. This process usually is done while the property is in escrow with a qualified Buyer, and can take a very long time. In some cases it could take 6 months or longer. You never really know that it is done until the end.
Are their tax implications? Yes there are. If you are a homeowner considering a Short Sale, please obtain the advice of your accountant and/or attorney while in the process. Buyers only have the opportunity to obtain a tax credit provided they are in escrow by April 30, 2010 and close by June 30, 2010.
What about Foreclosures? We are in a time where there are many Foreclosures, or bank owned properties, may be coming on the market. It is highly unlikely that these properties, commonly known as REO’s, will all come out at the same time as to do so would undermine most of the stability and equity gain that has occurred in the past 18 months. Not all foreclosures are a “deal” because so many people bid them up with the hopes of purchasing them. Remember, there is the process of foreclosure, and an actual bank owned property, or Foreclosure/REO. Please don’t get confused between the two.
Financing Foreclosures or “Flip” properties has become much easier as the rules that previously restricted lending on those types of properties has been lifted effective 2/1/10. FHA loans amongst others are all available at this time.
Next month I will discuss the costs involved with purchasing a home, obtaining financing, and closing escrow. Please do not hesitate to call or email me at any time with any questions that you have.
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