Well the Physical Inspection is done, now who’s going to make the repairs? This can be a stumbling block for both buyers and sellers when dealing with the sale of a home. The seller feels that they gave everything they could in the price they finally accepted and the buyer felt they paid too much for the home. Now we have a laundry list of items that are either not working or at the end of their lifespan. Who’s problem is it? We find that many of these challenges can be avoided by properly educating both the seller and the buyer beforehand. We try to make sure that the seller either fully discloses what repairs they’re aware of and what they’re willing or unwilling to do about them, even if they need to be included in the counter offer. In additon, we encourage sellers to be willing to make repairs on those items that are either a requirement ie. smoke detectors, carbon monoxide detectors or water heater earthquake straps or any health or safety code violations. This will help minimize their liablity in the future. When working with buyers we let them know that the Physical Inspections is designed to give them as much knowledge as possible as to the condition of the property and whether they are willing to accept it with the new findings as a result of that inspection. We also let them know that the seller is not obligated to make any repairs, so in the event the seller responds to the buyer to that effect, then the buyer can decide to move forward or rescind their offer. Many sellers make repairs based on the buyers reasonable request, however there are some that don’t feel they’re responsble. By making both parties aware of what to expect up front you can often times avoid unnecessary cancellations of your transactions and smoothly close the escrow!

Based on a National Housing Survey conducted by Fannie Mae in March of 2012, more Americans are now expecting both home rental and home purchase prices to increase over the upcoming year. Consumers’s are also growing more confident in regards to their own personal finances and believe that they will continue to improve over the next year. It appears that rental payments are becoming more costly than home ownership. In addition, an increasing number of consumers are expecting higher mortgage rates and home prices over the next 12 months. If you’re sitting on the fence waiting for the right time to buy, it may very well be right now. Call Johnny & Becky to find out if home buying is right for you.

Often times when we show homes to buyers, we are asked about “Short Sale” listings, homes that have loans that exceed the property value. Whether we agree or not, short sale listings are going to be a big part of the Real Estate market for years to come. Because so many homeowners are over-encumbered on their homes the only choice for them to avoid foreclosure is to go through the short sale process. In order for a short sale listing to successfully close escrow, the current note holder must approve a less than full pay-off for the current loan. In some cases where there is a second trust deed, that note holder may not receive any funds at all. So what should you, as a ready, willing and able buyer do? Should you avoid short sale listings altogether? Unfortunately today, much of the population is over-encumbered on their home and the only alternative for these homeowners is a short sale. In addition, many agents refuse to work short sale listings in totality. The very best way to move forward on a short sale listing is to make sure your agent does a little research. There are several things an agent can look for to improve the odds of your successful acquisition of the home your considering. First of all does the listing agent have enough experience with short sales? Has that agent ever successfully closed escrow on a short sale? Does the seller qualify for a short sale? Is the seller willing to cooperate with the process of a short sale? Short sales require patience, good communication skills as well as good negotiation skills. Call Johnny & Becky today for a private consultation to find out if selling or buying a home through the short sale process is right for you.