Know What the Seller wants—You can’t be the answer to their prayers—unless you KNOW what they’re praying for!

7 tips on gaining an edge when presenting your offer to a seller.

  1. Know What the Seller wants—You can’t be the answer to their prayers—unless you KNOW what they’re praying for!
  2. Have an agreed to game plan for your purchase—what is the big WHY of your purchase?
  3. Bringing Seller or Seller’s agent to reality–Pricing—sometimes we get hung up on small amounts relative to the overall value of the home. A seller and buyer got hung up on $2500 on a $550,000 purchase price. Seems trivial right? I mean its less than a ½%. But the infamous phrase: “It’s the principle!” I won’t let $2500 stand in my way of having a client either get their price when a seller or a buyer. In this case, the buyer was looking at another home in an HOA where the dues $450.00 vs. this HOA at $200.00. That’s $250/month for a savings of $3,000 a year. So the first year he recouped the price increase in 10 months. Plus if he was going to live in the unit for 10 years its gets to the point of being trivial.
  4. Negotiate—some folks just can’t do full price. We have plenty of buyers who have lost a home because they didn’t step up to the plate. If you insist on going in low then you better have a big offset—no contingencies? Shorter inspection periods, quicker close big deposit in excess of 3%. Or go in at full price and ask for stuff—lawn mower, tractor, furniture—hey, some folks are moving down. This you can learn from the listing agent.
  5. Leave Contingencies to a minimum. Inspection contingency should be the absolute one you wish to keep. Shorten up the time frames for this. CAR defaults to 17 days.
  6. Make Multiple Offers? Be careful with this one. The essence of negotiations is “good faith” in a contract. If you are buying 3 houses that’s find. But if you are only going to buy ONE of the three you have offers on then disclose what you are up to and WHY! I had a client, in for the weekend on a job transfer and needing to buy a home, made three offers with instructions to me to inform the seller as to WHY he was doing this. He had me present to the #1 house first and wanted me to tell the seller, “Folks, my client wants your home badly but he needs to know when he goes back east that he has a home to move to. He wants your answer immediately. If you can’t do this I’m instructed to present offer #2. This repeats with #2 as I moved to #3. I didn’t get to #2. You may think this was pressure on the Seller but the house had been on the market for some time and we assumed the seller KNEW what they wanted.
  7. Follow up with listing agent in case you did not get your offer accepted. Ask to be in back-up position. I had presented an offer on a large estate and was representing a very high powered attorney. He got beat out by an “in-house”, Seller was an agent, deal. I wasn’t happy how it went down so insisted we be given “back-up” offer status. It took me some convincing to get my attorney client on board. He grudgingly acquiesced. 2 days later I get a call from the listing agent, buyers realize it is too far out for them from the city. Boom! We’re in first place. I got to make a very nice call to my client who also got to tell his wife they “got the house”!

Continue reading Know What the Seller wants—You can’t be the answer to their prayers—unless you KNOW what they’re praying for!

On The Radio today; Talking Defensible Space and Clayton Fire update with CAL-FIRE

CAL FIRE Battalion Chief, Kirk Van Wormer will be calling in with an update on the Lake County “Clayton Fire”, and we’ll discuss Defensible Space; What is it? Why is it important?

More on the show, including KW Open House Extravaganza, Interest Rate update, a look at the August market, and more. Join the fun at 9:00-10:00 AM pst, 1350AM, 103.5 FM and streaming live at www.KSRO.com

Here are a few great tips from the CAL-FIRE website

1. Equipment Use Safety

·       Never mow or trim dry grass on a Red Flag Warning Day. (Mow before 10 a.m. on a day when its not hot and windy).

·       Never use lawn mowers in dry vegetation.

·       Spark arresters are required in wildland areas on all portable gasoline powered equipment.

2. Campfire Safety

·       Before starting a campfire, make sure you have a campfire permit and that they are permitted on the land you are visiting.

·       Afterwards, ensure that your campfire is properly extinguished.

3. Defensible Space

·       Residents should make sure they have 100 feet of defensible space around structures.

·       Clear dead weeds and vegetation.

·       Remove leaves and needles from gutters.

·       Trim branches 6 feet from the ground.

4. Vehicle

·       Never pull over in dry grass.

·       Ensure trailer chains don’t drag on the ground.

·       Make sure your vehicle is properly maintained.

·       Have proper tire pressure to avoid driving on wheel rim.

·       Never let your brake pads wear too thin.

5. Other

·       Make sure cigarette butts are properly extinguished.

·       Never burn landscape debris like leaves or branches on NO Burn Days or when it’s windy or areas where not allowed.

·       Target shoot only in approved areas, use lead ammunition only, and never at metal targets.

·       Report any suspicious activities to prevent arson.

For more fire prevention tips visit a www.PreventWildfireCA.org.

The Real Estate Ripple Effect…

The national remodeling market is experiencing what some are calling a “full recovery”. The driving factor? Real Estate sales.

The Real Estate market has an approximate $60,000 direct and indirect ripple effect per home purchase… and there’s more.  Tune in to The Real Estate Hour Sunday 7/31/2016 9-10AM PST 1350AM103.5FM and streaming LIVE at www.KSRO.com

RippleEffect

 

 

BREXIT–Brittian votes to leave the EU–Flight to Bonds–Interest rates go LOWER!!

So when the world economy shudders and lurches on the news of  “the un-thinkable” –Brittian leaving the EU– the smart money runs for the relative safety of “bonds”. Bad news=great interest rates! This is getting seriously low.  Look at these absolutely delicious rates!

Mortgage Rates for June 24, 2016

FIXED AND ARM CONVENTIONAL PROGRAMS RATE         APR
30 Year Fixed Conventional 3.500%      3.665%
15 Year Fixed Conventional 2.875%      3.015%
5/1 LIBOR ARM Conventional 3.000%      3.088%
7/1 LIBOR ARM Conventional 3.125%      3.178%
JUMBO PROGRAMS ($554k +) RATE          APR
30 Year Fixed 3.375%       3.592%
15 Year Fixed 3.250%       3.009%
5/1 LIBOR ARM 2.750%       2.847%
7/1 LIBOR ARM 2.750%      2.911%
FHA/VA FIXED PROGRAMS RATE          APR
30 Year FHA/VA 3.250%      4.397%
15 Year FHA/VA 3.250%      4.660%

 

Median “Active” vs. Median “Sold” BIG difference!

 

You hear so much about the "Median Home Sales Price" but how about the Median Listing Price?
You hear so much about the “Median Home Sales Price” but how about the Median Listing Price?

66% of May real estate sales fell between $400,000 to $749,000 here in the “Wine Country” of Sonoma County, California. Many in the nation might think our prices outrageous but here in the super heated “Tech-centered” Bay Area we are considered the “bargain basement”. Our “Median” SOLD home price is $580,000. However, the “Active” or “Showable” listings tell a different story. Whereas a “median” home price indicates half the market above and half below when it comes to “Active” listings its another story altogether. We have 818 total “Active” or “Showable” listings now available county-wide.  If we use $580,000 as a median home price with our “Active” inventory we see 27% of the available listings are BELOW $580,000 and 73% above. The county-wide Median “Active” list price is $815,000.

If you wish to find “Active” properties below the “Median SOLD Price” only 4 areas meet that criteria: Russian River–$449,000 with 59 showable listings. The SW area of Santa Rosa comes in at $469,000 with only 27 showable listings, followed by NW Santa Rosa, $515,000 with 46 showable listings and the Cotati/Rohnert Park with $537,000 median home price of actives but only 18 showable homes.

It really takes off from there. The top two median “Active” home prices? Sonoma at $1,297,000 with 125 showable listings and Healdsburg, $1,411,500 with 76 showable listings. Overall, of the 818 total “Active” listings 308 are OVER $1,000,000.

Did you know you can Purchase a home with a Reverse Mortgage…and have NO mortgage payments??!!

Jill Gromm  VP/Senior Loan Agent  Alliance Reverse Mortgage  3033 Cleveland Ave., Santa Rosa, CA  95403  (707) 535-2926  jgromm@alliancereverse.com  CA BRE 01326979 | NMLS 246723
Jill Gromm VP/Senior Loan Agent Alliance Reverse Mortgage 3033 Cleveland Ave., Santa Rosa, CA 95403 (707) 535-2926 jgromm@alliancereverse.com CA BRE 01326979 | NMLS 246723

If you are 62 or older. you can use a Reverse Mortgage to make a home purchase, and have no payments!!  Today on the show, Reverse Mortgabe specialist, Jill Gromm of Alliance Reverse Mortgage, joins us. Tune in to the Real Estate Hour today for more information om this great option for  our seniors community.

Plus more information about the traditional Reverse Mortgage refi which allows Seniors to age in place. This is good info for all us aging Baby Boomers, and our families.

The Real Estate Hour airs Sundays 9-10AM, PST live on KSRO 1350AM, 103.5FM and streaming live (and later podcast) at www.KSRO.com. Questions, call in numbers 707-636-1350  during the show or 707-799-3617 anytime.

Purchase a Home with a Reverse Mortgage

A HECM for Purchase is a Home Equity Conversion Mortgage that allows homeowners to purchase a new principal residence and obtain a Reverse Mortgage in a single transaction.  As with a traditional Reverse Mortgage, all homeowners must be 62 years or older to qualify. (Spouse may be under 62)

The Reverse for Purchase enables senior homeowners to relocate to other geographical areas to be closer to family members, right-size home or land or maybe move closer to medical facilities.

What is a Reverse Mortgage

A Reverse Mortgage, also called a Home Equity Conversion Mortgage (HECM), is a loan that uses your home as collateral, but instead of making payments to a lender, the lender pays you. As long as you live in the home and comply with loan terms including payment of taxes and insurance, you will never have to make a mortgage payment, in other words you will have no personal liability for the payment of the debt. Upon the sale or transfer of ownership of the property the loan will then be repaid.

A huge benefit is that your cash is distributed to suit your needs and lifestyle. The lender pays out the loan in three ways: lump sum, monthly payouts, or line of credit. As long as you have money to access, you can change your mind on how you take the money at any time. This allows the homeowner to be flexible with the money.

Other benefits include:

  • The funds loaned to you are tax-free (consult your tax advisor for your specific situation)
  • Your loan does not affect your Social Security or Medicare benefits
  • You and your heirs will keep any remaining equity
  • You can never owe more than the value of your home
  • There are no application fees
  • Your piece of mind is invaluable. This loan will provide you the relief you have been looking for, remember it is a loan secured by a lien on your home
  • You may continue to own your home in your name or in your trust
  • Increase cash flow by eliminating monthly mortgage payments

How much can I borrow?
The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates, appraised value, sale price and the maximum lending limit. It will be specific to your situation. We offer a no obligation assessment. Contact us to discuss.

What types of homes are eligible to be collateral?
Most single-family homes, two-to-four unit owner-occupied dwellings and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.

Am I eligible to take out a Reverse Mortgage?
To be eligible the FHA requires all borrowers on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.

What happens if I want my home to be a part of my inheritance?
When the reverse mortgage loan does become due, the borrower’s heirs and/or estate may choose to repay the reverse mortgage loan and keep the home. Or, they can put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.

If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.

A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.

What monthly payments will I have?
You will not have mortgage loan payments, but still need to continue paying property taxes, insurance and HOA dues if any while maintaining the home according to FHA guidelines.

What can I use the money from the Reverse Mortgage loan for?
Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage must use the reverse mortgage loan to pay off their existing mortgage. Ultimately, you can usually use it for anything you need.

 

Jill Gromm

VP/Senior Loan Agent

Alliance Reverse Mortgage

3033 Cleveland Ave., Santa Rosa, CA  95403

(707) 535-2926

jgromm@alliancereverse.com

CA BRE 01326979 | NMLS 246723

Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

Exchange Expert Toni Esposti.
1031 Exchange Expert Toni Esposti.

Toni Espositi of Old Republic Exchange Company (OREXCO) joins us on the Real Estate Hour Sunday June 5th 9-10AM pst., 1350AM, 103.5FM, and streaming live with Podcast immediately following the show at KSRO.com.

Regional Sales Office – California ‒ Northern
& Pacific Northwest – Ms. Toni Esposti, CES®

Vice President & Regional Sales ExecutiveToll Free: 888-677-1031
E-mail: tesposti@orexco1031.com

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There’s a very informative brochure on the OREXCO website at: https://orexco1031.com/Downloads/OREXCO_brochure_English.pdf

Here are some answers to common questions from the Orexco website FAQs . For one on one, specific answers to all your 1031 questions, call in during the show 707-636-1350 or contact Toni Esposti directly: Continue reading Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

1031 Tax Deferred Exchanges THIS Sunday on the Real Estate Hour!

We are very pleased to have on the show once again Toni Esposti, long time facilatator for exchanging real estate property via IRS code 1031. This video was done on her last broadcast. I run it as the code for IRS 1031 doesn’t change all that much. The concepts are simple–deferring your taxes on the sale of an investment property as you use equity to build wealth. Eventually you will pay the IRS but hopefully at much cheaper dollars. Using “Deferred Exchanges” and other scenarios, Toni will explain the mechanics of all. Stay tuned as the steps needed to complete a successfuly IRS 1031 Exchange are implicit in an Exchange.

Listen to Mike and Allison on "The Real Estate Hour", Sundays, 9 to 10am PST, KSRO, 1350AM or 103.5 FM and www.KSRO.com