As many of us know, purchasing a home is a pretty sizeable undertaking that requires significant preparation. Whether you’re working with a short sale realtor, listing agent or some other type of real estate professional, there are many things you can do on your own to get ready for such a substantial move. Last week, we covered determining your budget, saving, prepping your credit and getting pre-approved for a mortgage. Here are some more essential tips for making this process easier and less stressful.
1. Do your research. Get informed about the neighborhoods you are interested in and check out what houses are going for in that area, and what recent sales have been. You can do a lot of research online, and it also helps to talk to people who live in the neighborhood. For example, if you are interested in properties in Palm Desert, it may help to join a local group or organization to get a feel for pricing as well as the community.
2. Find the right professional to work with. It’s really difficult to go through the process of buying a property without the help of an experienced professional. It’s important to find someone who is honest, locally connected, boasts significant expertise and is seasoned in the type of transaction you will be making. For example, short sells can be very tricky to navigate, which is why your best bet would be to hire a short sale realtor to help you through such a transaction. Make sure to get referrals from people who have had good experiences with real estate transactions.
3. Get legal representation. A real estate attorney can be really helpful when making such a large transaction, especially to ensure that all your interests are prioritized.
4. Hire an appraiser. Getting an appraisal is critical in determining the market value of the home you are interested in. It is your legal right and will also be used by your lender. An appraisal is the best way to find the true value of your property—just because you’ve found properties in Palm Desert, doesn’t mean the home is the exact same value of the others in the area. You truly need a professional to come in and give you an accurate assessment.
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Buying property for the first time can be very daunting. As soon as you decide to start looking for your first home, there are several strategies you should employ to ensure the smoothest process possible. Whether you’re seeking homes for sale in Palm Springs or in another part of the country, the tips below can help you navigate your first real estate transaction.
Get pre-approved before you start looking. Taking this step in advance will save you the time that you may waste looking at properties outside of your budget. Pre-approval, which is based on your income, credit and debt, will improve your position when you find the house of your dreams and are ready to make an offer.
Enlist the help of professionals. While the internet has changed the landscape for house hunters by providing wide-ranging access to listings, it still really helps to have a professional real estate agent or short sale realtor in your corner. They will have specialized expertise in the type of transaction you plan to make, as well as local knowledge that will help you choose the best option for your family and lifestyle. It’s especially important to work with a short sale realtor if you plan to buy a property that qualifies for such a transaction, as these types of purchases can be significantly more complicated.
Do your research. Before you place your opening bid, be sure to research the marketplace by looking at the sales of similar properties in the neighborhood for the last three to six months. Consider the sales trend of these transactions when making your initial offer. For example, if you’re viewing homes for sale in Palm Springs and find the ideal property, find out what other homes have sold for in the area and make your initial offer on par with those sale prices, or a little bit lower so that you have room to negotiate.
Hire an inspector. Keep in mind that an inspector is different than an appraiser. While banks tend to require appraisals, this is really just to ensure that the property is worth your offer. An inspector will do a comprehensive home survey so that you can be aware of any potential problems that may result in costly damage or repairs down the line.
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With Christmas already here next week, you’re probably looking for holiday events for the entire family to go to. If you and your loved ones are currently looking at Palm Springs homes for sale with a short sale realtor or listing agent, you can make it a fun experience by immersing yourself in the desert city culture after your viewings.
On December 19, from 8 to 10 pm, the Moscow Ballet will perform the Great Russian Nutcracker at The Show in Agua Caliente Casino in Rancho Mirage. This is a performance that will blow everyone’s mind, no matter what age. It will be a great way to unwind and get into the festive spirit after a day of browsing homes with your agent or short sale realtor.
From December 21-23, head to the Annenberg Theater after looking at Palm Springs homes for sale for an innovative yuletide mash-up called Every Christmas Story Ever Told (And Then Some). Three actors literally perform every Christmas story in one performance that will definitely change the way you look at the classics. Tickets are $24 for individuals, $22 for groups and $20 for students.
Looking at Palm Desert real estate? Take the family to the Palm Desert Aquatic Center on December 22 from 2 to 5 pm for an one-of-a-kind Underwater Christmas Tree Decoration with Scuba Santa. It’s the perfect time to discover scuba and sneak in a visit in with Santa. Participants must be 10 or older and if under 18, a parent or guardian must be present. The event takes place at the YMCA of the Desert. Call 760-565-7467 for more information.
Another thing to do after perusing Palm Desert real estate is to check out the P.S: It’s Christmas show at the famous Forever Marilyn Sculpture on the corner of Palm Canyon Drive and Tahquitz Canyon Way. This free holiday concert runs through December 22, and features nostalgic 1950’s era carolers.
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When selling your home, make sure the interior is spic and span!
Many of the details that you consider minor actually make a big difference to buyers who are seeing a property for the first time. Even if they’ve looked at other Indio real estate properties or homes in other areas of Palm Springs, when they come across a home that appears to be in mint condition and well-kept, the overall effect can quickly cause a sale to turn in your favor.
Do a scan of the house and then make it sparkle from top to bottom. When you have an open house coming up, wash the windows, both inside and outside, vacuum thoroughly and mop or wax the floors until they shine. Assess the sinks, tubs and showers to see if they need re-caulking and bleach any grout that is dingy. Dust all the furniture and areas where dirt accumulates, such as ceiling fan blades, light fixtures and chandeliers.
Remember, if you’re trying to sell a La Quinta real estate property or something similar, the buyers are going to expect the premises to be pristine and high-end. If there are worn bedspreads or duvets on the beds, replace them now. Buy brand new towels for the bathroom, only to be put out when you know there are some prospects coming to look at the house. If you’ve considered replacing a worn bedspread, do so now! Also, replace any burned-out light bulbs or worn-out rugs.
Last but not least, make sure the exterior of the house is spic and span. Hose the garage, driveways and sidewalks down, or rent a pressure washer to get the job done. Clean out any cobwebs in the garage or patio and sweep or rake any dead leaves. Polish any chrome faucets throughout, wipe down all the mirrors and air out any areas that are musty or have odors. It’s even recommended to clean out your refrigerator.
Whether your goal is to sell an Indio real estate property or any other area in Palm Springs Valley, know that if it takes some work to prepare your property, the payoff will be worth it.
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Kim Kelly is an expert short sale Realtor!
The short sale enterprise can be a bit complex. Since it involves the bank, a buyer and a seller, there are probably a few other players involved, including a seller broker, appraiser, and a few who represent the bank’s interests. With so many cards stacked, it only makes sense for a buyer to retain the services of a short sale realtor.
A short sale transaction requires significant expertise and some insight into how each involved party thinks. The buyer typically attempts to push a low ball offer, which means persuading the bank to get the loan off its books at the lowest price possible. This sounds like it can still be simple but when the seller still has any financial ability to influence the sale, that’s where it can get more complicated—and where a short sale realtor becomes invaluable.
Again, whether you’re looking for homes for sale in Palm Springs or any other part of the state, it’s important to work with a realtor with vast expertise, especially in regards to short sales—you want an experienced Agent who CLOSES their short sales. Ideally, you want someone who is familiar with different lenders, is connected in the area and has negotiation skills that transcend normal real estate transactions.
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Negotiations are KEY to closing your short sale!
Short Sales are made up of many different components. We all know about the stacks of documents, the necessity of an experienced List Agent..and what else? Who exactly do you meet during the process of a Short Sale?
List Agent: Critical. Choose an experienced Agent that CLOSES their short sales. Certified is great, familiar with the different Lenders and their different MO’s is also required.
Buyer’s Agent: I LOVE when my Buyers’ agent understands short sales and can explain it to their Buyers. I keep my buyers’ agents updated, but if they don’t understand the process, it’s often a moot point.
Customer Service Rep: First level of contact for yoru Lender. You can call them, and you can bet I will be!
Equator: The online Customer Service Rep. This system keeps us all honest. It creates an online record of what documents have been asked for and received and any correspondence your List Agent has had with your negotiator.
Negotiator: The person that actually gets your file and starts reviewing it to see if any docs are missing. There are several levels of negotiators. Each level gets you a little closer to the Investor.
Investor: Once the negotiator decides the file is complete, it is passed to the Investors to either counter it or accept it.
Closing Representative: This is your contact that sends your List Agent the Approval Letter. If you need an extension on your close date or a buyer substitution, you hope this person is competent!
Remember that the entity you write your mortgage check to is called your “Servicer.” The entity that actually decides on the net amount they are going to write off in your note is called the “Investor”.
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Another Short Sale approved Today in La Quinta at 52255 Avenida Obregon !!!
This home has
3bdr/2ba, 1,414 square ft. . . . Enclosed front courtyard on this charming, clean, well-designed home
in the La Quinta Cove. Separated family room, very large kitchen with eat area, and a master bedroom that is opposite the two guest rooms and bathroom. Good flow! The laundry area is in the finished double garage. Fans throughout, beautifully maintained and very welcoming. The backyard is lush, green, cool, and has Western mountain views. There is even a storage shed in the backyard.
Short Sale was Listed to Acceptance . . . 81 days !!! Chase was the Lender.
Approximate note value of $207,000, Approved Sales Price of $135,000. In 2007, this home sold for $264,000 !!!
Sellers were incredible, as they got all of the required docs in very quickly.
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Palm Springs Valley – Legislators in California are urging the Federal Housing Finance Agency to allow mortgage principal write-downs to help homeowners who are “underwater.”
This approved resolution was introduced by Assemblywoman Nancy Skinner, D-Berkeley to urge Freddie Mac and Fannie Mae to immediately offer principal reductions to homeowners who owe more than their homes are worth.
The reason for this push comes after the acting director of the Federal Housing Finance Agency said he would not allow Freddie Mac and Fannie Mae to lower the amount some underwater homeowners owe on their mortgages – even in the face of new new financial incentives from the Obama administration.
The reason given for not offering write-downs is because the FHFA said its analysis determined that principal reductions would be too expensive for taxpayers and would not necessarily improve the ability of many homeowners to avoid foreclosure.
Real estate professionals, lenders and economists in the Palm Springs Valley are of the belief that such a principal reduction could help the housing market to recover. However, it also raises some key questions — mainly, how would the write-downs be accomplished?
One local realtor thinks we should try to do anything we can to help homeowners stay in their homes – it’s one of the things to deter strategic defaults. And some local economists and financial experts question whether urging principal write-downs is the right approach.
A local Palm Springs Valley economist says that the intention is obvious – and it’s a good one, but he questions what the consequences would be and thinks write-downs are a big mistake. His feeling is that it makes more sense to let the market work itself out. And sometimes, such measures simply raise hopes and delay inevitable short sales or foreclosures. Also, it’s not right to offer mortgage relief for some underwater homeowners and not for others.
This economist stated that some banks already are voluntarily reducing principal for underwater borrowers, though they’re not talking about it. Banks are looking at the option of a foreclosure or short sale, where they’re going to lose money anyway versus a homeowner who is making payments to reduce their principal and continues to live in his or her home.
A local Valley loan officer has said he knows of underwater homeowners who have had their principals reduced voluntarily by lenders, and it generally works this way . . . the lender modifies the loans by saying, ‘If you pay on time every month for the next three years, we’ll reduce the principal X number of dollars.”
Another point that has been brought up is the raising of moral issues – whereas, some people got into something they shouldn’t have, but writing down their debt rewards mistakes or irresponsibility . . . and how do you determine who deserves it and who doesn’t?
It will be interesting to watch this dialogue as it continues – justifiable points on either side.
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PGA West Short Sale; CLOSED!
Short Sale Specialist CLOSES another one! Short Sales aren’t easy, take patience and persistence on both the Buyers and the Sellers parts, but I get them done! List to Close on this beautiful semi-custom home at the Norman Estates in PGA West..approx. 95 days. Two notes.
First lienholder: B of A Approx. value of 1.4 mil
Second lienholder: Chase HELOC (Home equity line) Approx. value of $250,000.
Negotiated Sales Price: $925,000 and $8,500 went to pay off the second. Both lienholders released their right to sue for deficiencies and seller paid ZERO!
If you are underwater on your mortgage, or just want a FREE consultation, give me a call at 760-285-3578. Information is power!
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If you have been sitting on your home waiting to Short Sale it, now would be a good time to consider making your move. Real Estate analysts are saying that indicators look good. Also, if you are looking to get a deal on buying a Short Sale, you may want to listen up too.
- For Sellers – some lenders such as Bank of America and Chase have now expedited short sale programs to where they pre-qualify their sellers and their homes at agreed-upon prices. This has greatly cut down on the time it takes to push all of the paperwork required for a Short Sale through. Also, these big banks are selectively choosing some of the more troubled properties for extra owner incentives. Banks may pay you as much as $45,000 to sell your distressed home.
- You must start soon – if you want to get your tax break. Lenders are also wiping out any extra debt left after the Short Sale is completed. For example, if you owe $200,000 on your home and you sell it for $150,000, then it would stand that the bank would still be able to come after you for the additional $50,000. What they are doing now is forgiving that debt, and that debt is typically subject to income tax. BUT, it will not be subject to be taxed under a special provision that expires at the end of this year. So, try your best to close your Short Sale this year – it can easily take 3 or 4 months to close once you have a buyer.
- Before a lender will approve a Short Sale, the Seller must make the case that financial hardship is keeping him from paying off his loan. In trying to expedite Short Sales, banks are now broadening their definition of what situations qualify as hardships – a job change or impending retirement could be considered as a hardship.
- For Buyers – you should be realistic in your expectations for a bargain. There’s more competition now that bankers and investors have caught on to what good deals these Short Sales are – usually better than foreclosures because more often they are owner-occupied and well cared for, as opposed to foreclosures which may have been stripped of appliances and other things. Expect to pay market price for a Short Sale – avg. price is $175,000, which is still 20% below avg. price of non-distressed properties.
- Try for long locks on your mortgage rates, Buyers, because it may take a long time to find a property you want to purchase – and you want to take advantage of today’s record-low interest rates. Even 60 day locks may not be enough to get you through to closing of a Short Sale. If you’re buying a house that has been pre-approved via one of the banks’ expediting programs, closing time can be cut down to as little as 10 days.
If you are thinking of a Short Sale of your home . . . or looking to Buy a Short Sale, choose a realtor who is knowledgeable and experienced in Short Sales specifically. Call Kim Kelly, an agent with HK Lane Real Estate at 760-285-3578 for a free consultation. She Lists, Works and Closes her Short Sales !!!
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As many of us know, purchasing a home is a pretty sizeable undertaking that requires significant preparation. Whether you’re working with a short sale realtor, listing agent or some other type of real estate professional, there are many things you can do on your own to get ready for such a substantial move. Last week, we covered determining your budget, saving, prepping your credit and getting pre-approved for a mortgage. Here are some more essential tips for making this process easier and less stressful.
