Are you really ready to submit an offer?

Are you really ready to submit an offer?

You have found a great home. Decided on a price by looking at the comparables with your Realtor.

You have written the offer!!! YIKES, you really did it!!!

Now what?

Your Realtor will submit it to the other Realtor who will present it to the seller for their approval or counter.
Did you give your agent everything needed to submit a strong offer?

1 - PRE-APPROVAL LETTER. Best if it includes a statement that they have verified your assets and stating all 3 FICO scores.

2 - Your credit report. At least the front page with only the last 4 digits of the SSN showing
3 - A copy of your proof of funds showing liquid assets (many banks will not accept stock accounts). This must be dated within the last 30 days.  Sometimes a screen shot is acceptable, provided it shows the banks name, your name, the account number and the date of the document.

4 - A personal letter to the homeowner stating why you like the home, how much you like everything they did to it. Be specific if possible - shutters, counter tops, paint, floor coverings, landscaping, flowers, etc), how it will make you and your family's lives better. Things you have in common with the seller - kids, sports, hobbies, schools, etc. Anything that is truthful and relevant. People like to deal with those who are similar to them in some way.

5 - Anything else the seller's Realtor requests to be privided by the buyer or buyer's Realtor.

6 - If the offer is contingent on another property closing, provide the Escrow or Closing agent's complete contact information along with the escrow/file number. Include the contract. Note the closing date and what contingencies still need to be met.

Must all these items be submitted to the Listing Agent? NO. However, the more of these you can provide to your Realtor, the better chance your offer has of being accepted, especially if your offer is not at asking price or there are multiple offers. I have been in multiple offer situations where the highest price AND best terms did not get the home...one or more of the above made the difference.

Please note my other related posts:

Are you really ready to buy a home?
http://sandiegohomes4ucom.blogspot.com/2010/03/are-you-really-ready-to-buy-home.html

The differences in buying Bank Owned homes, Short Sales & Traditional sales.
http://sandiegohomes4ucom.blogspot.com/2009/08/foreclosedbank-owned-homes-short-sales.html



Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

Donna "Sunshine" Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/
for more information & free reports.

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County

San Diego Real Estate Newsletter - Prices & Sales up sharply

San Diego Real Estate Newsletter -
Prices and Sales up sharply in San Diego County

See the full newsletter here
http://tinyurl.com/4-9-RE-Newsletter

As of 4/09/2010
House and Condo Sales by the Month with Average Price:


Mar 2010 were 2793 at $423,372 at $246.45/sqft  
Feb 2010 were 2113 at  $397,932 at $234.06/sqft
Jan 2010 were 2040 at   $391,775 at $230.39/sqft
Feb 2009 were 2197 at  $341,818 at $209.39/sqft

WOW!!! Prices Up 7% from last month
Sales up 32% over last month
Cost per SqFt is also up.
Active listings: 9535, up over 5% from February, only a 3.6 month supply
Of those, only 773 (up from 667 in Feb) are Bank Owned Foreclosures, a 32 day supply.
2217 (2120 in Feb) are short sales (almost 25%)
There are also another 6170 Short Sales that are Contingent or Pending!!!

Five to six months inventory is a balanced buyer/seller market.
In the lower price ranges, we are in a strong sellers market,
in the higher prices, we are in a buyers market.

Pending Listings: 4528, down from 5785 in Feb.
1025 of these pending sales are Bank Owned.
1981 are Short Sales and 1585 are regular sales (down from 2744 in Feb).

21 days left for the $8000/$6500 Tax Credit

That's only 3 weeks till the Tax Reduction/Credit is scheduled to expire!

We now have a new State buyers tax credit for $10,000.
That takes over where the Federal Credit stops…Close after May 1st,
and you need to be under contract by 12/31/2010.
Limited funding so may not last long. Some say in 2-3 weeks!!!

YES, you can double dip if you are in escrow by 4/30 and closed by 6/30/2010.

Check out the important details and BIG differences at:
http://sandiegohomes4ucom.blogspot.com/2010/03/new-ca-homebuyer-tax-credit-up-to-10000.html

5 Reasons why you should be Under Contract by 4/30/2010…or not.
1 Federal Tax Credit Expires 4/30/2010 for 1st timer

2 Double Dip on the State Tax Credit for 1st timer or new construction

3 Free Mortgage Protection Program ends 6/30/2010 for 1st timer

4 Entry Level price homes Rising

5 Interest Rates are Rising
Why you do not need to be under contract by 4/30/10
If you are not ready – timing, finances, home to sell,  job uncertainty/relocation or ?


Call me ASAP if you want to be in escrow by the deadline so you can Double Dip!
Or just get a home.





Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert

Donna "Sunshine" Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale & Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

New CA Homebuyer Tax Credit up to $10,000. AB 183

New CA Homebuyer Tax Credit up to $10,000. AB 183
Assembly Bill No. 183 passed the Assembly and Senate on 3/22/2010
The governor signed it the next day.

AB 183 picks up when the $8000 Federal Tax Credit leaves off - May 1, 2010.
If you are under contract by 4/30/2010 and close by 6/30/2010, you could get $18,000.

1. The purchase of a qualified principal residence on or after May 1, 2010 and before August 1, 2011, pursuant to a contract executed on or before December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, until the $200,000,000 is gone.
Some say in 2-3 weeks!!!
(Under contract on or after 5/1/2010 and by 12/31/2010, and closed before 7/1/2010)

2. The amount of the tax credit is the lesser of 5% of the purchase price or $10,000, which means any home over $200,000 in price will be limited to the $10,000 credit.

3. The total allocation of $200,000,000 in tax credits is divided between first time home buyers and purchasers of homes that have never been lived in (new homes), $100,000,000 being allocated to each type of purchaser.

4. Only one credit will be issued to a first time homebuyer that buys a new home.

5. A “qualified principal residence” is an attached or detached home that will be used as the principal residence of the purchaser, and has either never been occupied, or is purchased by a first time home buyer.

6. A “first time home buyer” is and individual, or individual's spouse, who has no present ownership interest in a principal residence now or over the three previous year period, ending on the date of purchase.

7. The tax credit is non-refundable, meaning it is a use it or lose it credit. NOTE...You would need to have $3,333 of state tax liability each of the next three years to utilize the maximum amount of the credit available. It will be allocated over three years, beginning with the year the escrow closes on the new home.

8. You must apply for the credit within 2 weeks of closing or lose it.

9. Buyer must live in the home for 2 years or return the money.

If you are under contract by 4/30/2010 with a qualifying home, and close by 6/30/2010,
you should be able to double dip!!!  You can get both the State and the Federal Tax credits but you must hurry.  competition is high and inventory under $500K is low, therefore we are getting multiple offers on most properties under $500K.

AB 183  is the New CA Homebuyer Tax Credit for up to $10,000.




Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.

dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

What is “Value Range Marketing, VRM, price range marketing

What is “Value Range Marketing, VRM, price range marketing
I brought the first buyer that successfully closed a “price range” listing on 8/16/1995.

Range Pricing started in San Diego and San Diego has remained the stronghold. Some other MLS’s do not allow it.

I use price ranges for sellers when, and how, it makes sense. It works well in the right circumstance but it can be confusing for the inexperienced agent or the homebuyer.

Conventional thinking for many buyers is “Why would I offer more than the low end of the range?” That is a valid question. I always recommend that buyers use the range pricing as a search guideline only. Then place their offer according to the comparable prices I provide. Same thing with the bank owned properties. Some banks are pricing properties 10-20% below the comparable sold prices and letting the buyers bid them up to market value or above.

Bank owned listings almost never use a range (only 23 of 7078 in the last 6 months). Since much of the lower end inventory was bank owned, we did not see ranges as much. Now that prices are going up, and bank inventory is dropping significantly (only 696 active bank owned house or condo listings as of today in all of San Diego County out of 7456), we see more regular sellers entering the market, along with investors selling their flippers. Both groups are more likely to use price ranges.

The Value Range Marketing good: More buyers will see the listing.
If the property is worth at, or a little above, a big round number such as $300,000, the seller is in a quandary. If it is priced $10K above that round number, say $320K, most buyers who only want to spend $300K will not see it. If they price it lower, they are afraid they will not get offers over asking, to where the actual value is.

The Value Range Marketing bad: Not understanding how it works.
1 - Agents that have too big a range…20% or more on each side. $240K to $360K. Get real! Are you a professional or not?
2 – Too small a range. $10,000 spread on the range. $270K to $280K
3 - Range pricing top just under the big round number: $270K to $299K
4 - Weak agents that can not convince sellers of the real value of their property. The agent knows the home will sell for no more than $400K but the seller thinks it is worth (or seller needs to get) $500K. Therefore, $400K to $500K range.
5 - Ineffective pricing: having the bottom price range just above the big round number such as $305K to $330K. The low price probably should have been $299K.
6 – Agents who do not know how to properly explain how range pricing works.


Where you ultimately end up closing in relation to the high and low price with a range listing is dependant on what the range pricing is, compared to the market value of a home and how the range is used.

In the “hot” market, I would call the listing agent and ask, “Do we have to be over the high range?” Often the answer was yes because the market was moving up so fast.

From 2007 to Feb of 2009, as prices dropped, more offers were accepted under the low range price. That is changing now with the low amount of inventory under $500K

I just checked 100 range price listings of the 362 sales within the last quarter over $500K and they sold as follows: 27 under, 61 within & 14 at or above the high range.
The under $500K was similar: 14 under, 64 within and 23 at or above the high range.

Ultimately, every situation is different for the buyer and for the seller in what their goals and negotiation strategies are.

The MLS states “The seller will entertain offers between low price and high price”.
If you offer near or under the low price, the sellers says ”That is entertaining, now lets start negotiating”.

Call me so we can meet your Real Estate Goals for 2010.  The opportunities are there!





Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Holiday Sale Pricing on Homes

Buy now to get Holiday Sale Pricing on Homes.

Nov., Dec. & Jan. are traditionally the best time for buyers to buy a home or an investment property. There are usually fewer buyers to compete
for the homes and some sellers need to sell without regard to the season.

Many of the banks want to clear out their inventory by the end of the year.
That means you need to be in escrow by December 1st to have a reasonable chance of closing by Dec. 31st, especially with the holiday season slowing down the process.

Some regular sellers will hold firm but many are willing to negotiate
instead of waiting till the Spring when the market heats up again.

The disadvantage of buying now is that you will have a
smaller inventory to choose from. Many sellers are aware that
the Spring time is the best time for the sellers,
so many of them wait until then to market their homes.

The other problem with buying now is that the inventory is low
and we have had 7 straight months of price increases in San Diego County.  We have almost 1/3 fewer listings than last year at this time. Foreclosure listings are almost 70% lower than they were a year ago. About 630 active at this time in the whole County.
There is increased competition as buyers realize that the
housing market is turning and is unlikely to go back down from here.

In San Diego, home buying and selling goes on all year as we do not have to contend with snow impeding our ability to get around and making it difficult to see what the yard looks like without 3 feet of snow.

Holiday Sale Pricing on Homes wont last long. 
These are bargain prices compared to where the prices were
and where they are heading.

Call me today to find out how you can get Holiday Sale Pricing.
Only 10 more home shopping days this year!



Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

Contingent listing - what the heck is that?

A CONTINGENT LISTING is the step between Active & Pending.
These properties fall into several catagories.


Offer contingent on Court approval - This is usually for a Probate Sale

Offer accepted or submitted pending lender approval of Short Sale

Offer submitted awaiting buyer or bank approval of a REO (foreclosure)

Offer accepted with ____ hour right of first refusal - Usually the buyer has a house to sell before they can buy this one.

Contingent listings still show up on most web sites as active properties. They have to be looked at on an individual basis to determine what the underlying status is...REO, Short Sale, Probate or time clause.
Then it can be determined if it is reasonable to submit an offer.
 
Please contact my about listings in any Status including CONTINGENT LISTINGS.  I am here to help.




Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

$8000 Homebuyer tax credit update

$8000 Homebuyer tax credit update…The tax credit has been extended!!!!

Under the law, individuals with income up to $125,000 a year and couples earning up to $225,000 may be eligible for the $8000 Homebuyer tax credit. The extension would cover homes under contract by April 30th and closed by June 30th, 2010. And as we had also predicted, the  homebuyer tax credit will be expanded to non-first time homebuyers as well. There are a few tweaks for non-first time homebuyers - the credit is reduced from $8000 to $6500, and they must have owned and lived in their primary residence for at least five of the past eight years. Their new purchase must be for their primary residence, not a second home or investment home.

This is a great deal for home owners who want to more up, downsize or get a job transfer.
The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Military veterans earn one-year federal tax credit extension


Military personnel, members of the Foreign Service, and employees of the intelligence community
have an extra year, through June 2011, to buy their principal residence in the U.S. and claim the federal tax credit. The deadline for a binding contract is April 30, 2011; the deadline to close the purchase is June 30, 2011. The extension applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at period of least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
 
The bill also adds some fraud protection.  Buyers will now have to include proof of purchace with their tax return.

For more details:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html

http://www.federalhousingtaxcredit.com/glance.php

How does all this work in my case?  Ask your tax professional/

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

Senate plans to extend an $8,000 tax credit for first-time homebuyers

Senate plans to extend an $8,000 tax credit for first-time homebuyers and allow benefits for some people who already own residences.

The proposal would also let existing homeowners qualify for a $6,500 credit if they have lived in their residence for five years.

The homebuyers’ credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law.

The plan would extend the $8,000 tax credit for first-time homebuyers, due to expire Nov. 30, to home purchases under contract by April 30, 2010, with borrowers allowed another 60 days to close the sale.

It is not a done deal yet because it is tied to bill to extend unemployment benefits along with several other "pork" amendments. Fortunately, there seems to be little resistance to the home buyers credit. We will have to see exactly comes out of the bill.



Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.