IT'S A SET UP YOU WON'T REGRET!

Every REALTOR should "set you up" with expectations.  It's a disaster for a Buyer or Seller to go through a real estate transaction partially blindsided.

When you put your trust in the hands of a real estate professional you want to rest a sure that your hundreds & thousands of dollars are protected, and that your best interest is at hand.

Make sure you understand the real estate process you are about to embark.  There are many very important documents, disclosures, timelines, lender guidelines, preliminary reports, escrow documentation,  appraisal for buyers with financing, among other things..... all of which we will addressed another time.

Today's topic is EXPECTATIONS........things that could come up unexpectedly in a real estate transaction.  Make sure you are well informed up front, about all the possible issues that could arise.  That way you are not blindsided by the unknown.

Think back when you took your very first airplane ride. Was the flight bumpy, with turbulence?  You may not have known that turbulence occur out of nowhere, it may seem. You may have been frightened by not knowing what was happening.  After the plane made its landing you probably thought, "that flight was a disaster".  Your experience could have had a different outcome if you were schooled on what to expect.

Now, here's a list of possible turbulence that could arise and delay the close of an escrow or cause the cancellation of a transaction.  Most of which could be avoided if you have a knowledgeable REALTOR and Loan Officer.

Possible  Buyer/Borrow Set Backs
Does not tell truth on loan application.
Has recent late payment on credit report.
Finds out about additional debt after loan application.
Borrow/Co-borrower loses job.
Income verification lower than what was stated on loan application.
Overtime income not allowed by underwriter for qualifying.
Applicant makes large purchase on credit before closing.
Illness, injury, divorce, or other financial setback during escrow.
Gift donor changes mind.
Cannot locate divorce decree.
Cannot locate petition or discharge of bankruptcy.
Cannot locate tax return.
Cannot locate bank statements.
Difficulty in obtaining verification of rent.
Interest rate increases and borrow no longer qualifies.
Loan program changes with higher rates, points and fees.
Child support not disclosure on application.
Recent Bankruptcy.
Borrower/Co-borrow does not have steady employment history.
Borrower brings in handwriting pays stubs.
Borrower switches to job with a probation period.
Borrower switches from job with salary to 100% commission income.
Borrower/Co-borrower /seller dies.
Buyer is too picky about property in price range they can afford.
Buyer feels the house is misrepresented.
Veterans DD214 form not available.
Buyer comes up short on funds at closing.
Buyer does not properly “paper trail” additional money that comes from gifts, loan, etc.

Possible Seller Set Backs:
Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)
Cannot find a suitable replacement property.
Will not allow appraiser inside home.
Will not allow inspector inside home in a timely manner.
Removed property from the premises the buyer believed was included.
Cannot clear up liens.
Did not own 100% of property as previously disclosed.
Encounter problems getting partner’s signatures.
Leaves town without giving anyone Power of Attorney.
Delays the projected move-out date.
Did not complete the repairs agreed to in contact.
Seller’s home goes into foreclosure during escrow.
Misrepresents information about home and neighborhood.
Does not disclose all hidden or unknown defects and they are subsequently discovered.
Seller has liens on the property that listing agent was not aware of.

Possible REALTOR Set Backs:
Has no client control over buyers.
Delays access to property for inspection and appraisals.
Does not get completed paperwork to the Lender in time.
Inexperience in the type of property transaction.
Takes unexpected time off during transaction and can’t be reached.
Misleads other parties to the transaction has huge ego.
Does not do sufficient homework on their clients or the property and wastes everyone’s time.

Possible Lender Set Backs:
Does not property Pre-Approve the borrower?
Wants property repaired prior to closing.
The market raises rates, points or costs.
Borrower doses not qualify because of a late addition of information.
Lender requires a last-minutes second appraisal or other documents.
Lender loses a form or misplaces it.
Lender doesn’t simultaneously ask for all needed information.
Lender doesn’t fund loan in time for close.

Possible Issues with the Property:
County will not approved septic system or well.
Terminate report reveals substantial damage and seller is not willing to fix.
Home was misrepresented as to size and condition.
Home is destroyed prior to closing.
Home is not structurally sound.
Home is uninsurable for homeowner’s insurance.
Property incorrectly zoned.
Portion of home sits on neighbor’s property.
Unique home and comparable properties for appraisals difficult to find.

Possible Escrow/ Title Company Set Backs:
Fails to notify lender/agent s of unsigned or unreturned documents.
Fails to obtain information from beneficiary, lien holders, insurance companies or Lenders in a timely manner. 
Loses or incorrectly prepares paperwork.
Does not pass on valuable information quickly enough
Does not coordinate well, so that many items cane be done simultaneously. 
Finds escrow/title problems at the last minutes.

Possible Appraiser Set Backs:
Is not local and misunderstand the market.
Is too busy to complete the appraisal on schedule.
No comparable sales are available.
Is not on the Lender’s “approved list”.
Makes important mistakes on appraisal and brings in value too low.
Lender requires a second or “review” appraisals.
Pest inspector not available when needed.
Pest inspector too picky about condition of property.
Home inspector not available when needed.

These things do not happen often however, they do happen.  Buyer's and Seller's should be aware of them.  Make sure you hire a REALTOR that is proactive.  If you would like me to "Set You Up" please feel free to contact me.  

To view all active properties listed for sale in San Diego California go to www.allhomesinsandieho.com

JUST BECAUSE YOUR HOME IS LISTED, DO NOT CONSIDER IT SOLD....JUST YET

According to the National Association Of REALTORS a very high percentage of all homes on the market will not sell.  The marketing plan is a large part of selling a home in today's market. The knowledge of your REALTOR and their negotiating skills are a large factor in getting your home sold as well.

However, today I attempted to show a property in San Diego County.  A call was placed ahead of time to let the Seller know that I would be showing their property, the seller was excited to have us view their property.  The Seller was asked to have the home in showing condition.  Well, when I arrived (before my clients) the home was dirty, there were cloths on the floor, dirty dishes in the sink, there was a bad pet odor throughout the house and the sellers dog jumped all over me.  I requested that they at least put their dog in the backyard.  It was too late for the seller to clean the house as my clients would be there in a couple of minutes.

When my clients arrived the pet odor alone detoured one of my clients.  My other client still wanted to view the property.  Just a few more steps into the dirty kitchen and my clients mentioned they no longer wanted to continue with viewing the property.  Knowing my clients I knew this would be their reaction.

This prompted me to suggest a daily check list for home sellers to consider when selling a home.

1. Keep dishes washed and put away. Wipe kitchen and bathroom countertops daily. 

2. Vacuum floor and dust daily.

3. Cloths should not be on the floor, but in their places.

4. Remove toys, trash, bikes and clutter from the yard. 

5. Keep the porch and steps free of mail and newspapers. 

6. Prune plants and remove weeds in the yard. 

7. Clean the tub and shower after each use.

8. Make all beds are made daily.

9. Keep the lights on during all showings, even in the day time.

10. Open all drapes and let all window shades up.

11. De-clutter each room as well as the garage. 

12. Keep your home in showing condition.

13. Make sure there are no bad odors.

When selling your home don't make it nice and clean just for pictures.  Home sellers must maintain good housekeeping on a daily bases.  An unkept home could suggest to a buyer that maybe the maintenance on the home has not been kept either. 

There are many reasons a home did/does not sell. To find out why your home did not sell, to find out the value of your home, for a complete checklist on how to prepare your home to sell or for any questions and concerns that you may have, please feel free to call or text me at (619) 368-6382.  E-mail is a great way to contact me also.......  carolmorrow@century21award.com

If you are outside of the San Diego County, Orange County or Riverside County areas of California contact me for a REALTOR in your area as I do network with great REALTORS across the United States and abroad.  

MORTGAGE RATES ARE ON THE RISE COME SPRING!

As I was reading an article in The Wall Street Journal just the other day, I thought of all Americans with the dream of home ownership.  Is that dream going to be even harder to obtain? 

If you are a borrower with less then a huge down payment, without a perfect credit scores and thinking about purchasing a home. I would probably guess you might want to consider getting off the fence sooner then later..  Mortgage costs for borrowers are set to rise this coming spring 2014.

Fannie Mae and Freddie Mac, dominate the mortgage market, and are boosting fees that they charge Lenders.  We know Lenders usually tend to pass these costs onto the borrowers.  This means higher mortgage rates.  

For example, after the increase for a 30-year mortgage, a borrower with a credit score of 735 making a 10% down payment could pay fees totaling 2% of the loan amount, up from 0.75% right now.  An upfront fee of 2.5% can raise the mortgage rate by around 0.5 percentage points over the life of the loan.  

For borrowers making a 10% down payment with credit scores of 750, fees could increase to 1.5% from 0.5%; and for those loans with a borrower credit score of 775, the upfront fee could rise to 1% from 0.5%.

Borrowers with larger down payments could also see higher fees. For borrower with a credit score of 690 and a 25% down payment, fees are expected to rise to 2.25% of the loan amount, from 1.5%.

The Federal Housing Finance Agency, has stated that Fannie Mae and Freddie Mac, should raise fees in order to make non-government-backed lending more competitive, particularly for riskier loans.  The FHFA this month did announced the fee increases but didn’t provide specific breakouts for different borrowers.  I would say they are acting like private investors which do not operate with a government safety net to protect them against losses made from the purchases of bad loans.

So, ultimately home affordability will be on the decline for some borrowers.  This is derived from bad loans.  Borrowers that are a high risk will be paying higher fees.  If you are thinking of purchasing a home, you may want to consider purchasing a home sooner by taking advantage of today's Real Estate Market so there are no regrets later. 

.....as always contact me for assistance with all of your real estate needs
Carol Lusidia Morrow
619-368-6382
carolmorrow@century21award.com
view all homes for sell in San Diego www.allhomesinsandiego.com