Secrets to Winning in a Multiple Offer Bidding War

As you search around the streets, you may notice there are not as many homes up For Sale as usual. In some parts of San Diego you are right. For example, in Santee the total number of homes listed during the first quarter of the year declined 4%, compared to last year.

According to the California Association of Realtors, the number of homes for sale has been declining for the past 8 months. As the number of homes decline, the law of supply and demand kicks in leading to more multiple offers.

So what are the secrets to winning a bid on a home where there are multiple offers?

1. Use a Realtor®. Many think they can find properties online and don’t need help. But in truth, many of the property websites that consumers use have a 48-72 hour delay. A Realtor can locate new listings and represent you in the purchase of a home.

2. Don’t delay. When you find the right home, there will be other buyers out there feeling the same thing. Get your complete offer in as soon as possible. The offer must include a loan preapproval and the Proof of Funds.

3. Don’t low ball the property. Using the comparable properties prices, determine the fair market value and give your highest and best offer. If you are buying the home with a loan, the home will be appraised to make sure that you are not paying too much for the home. When the market prices are climbing, you can offer a little more than the comps. However, if you are too high, you may have to renegotiate the difference between the appraisal and your offer.

4. Factor in Closing Costs. If you need to have closing costs, you are best to bring up the price up to make up the difference. So at the end of the day, the seller still nets a fair price.

5. Include a letter explaining why you would make a better buyer. Some people include mini biographies with family or individual photos. Any information that might emotionally influence the seller to accept your offer over another will help your position.

With the use of these tips, hopefully you can succeed in a more competitive market and win the home of your dreams.

Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

Aces of Real Estate: 8 Short Sale Negotiation Strategies

Ready to tear out their hair, many agents and buyers have declared, “I don’t want to look at another short sale!” Like a game of poker, I always look at it as a game of strategies. You just have to know who you are playing with and what their next move is. When you know what to expect, this will help you to negotiate the best deal.

While the seller accepts an offer on a short sale, their short sale bank has to review and approve the price and terms of the offer because, ultimately, the bank will be taking the biggest loss. Each bank handles negotiations differently, but I have found some patterns that make it easier to negotiate. These items need to be considered when making an offer so that there are no surprises, only negotiations:

1. First and foremost, Buyers must understand that short sales take longer than the traditional sale. While the banks have improved on their time frames, they still require anywhere from 2-6 months on average to review the seller’s financial records and the offer. See Short Sale--An Oxymoron--A Word for Wait.

2. Normally the offer has to be reasonable within 10-15% of the comparable properties in the area. The bank will have an appraisal to compare the offer to.

3. Depending on the type of loan the buyer has and the price offered, some banks may pay for termite inspection and work, repairs, and closing costs. A lot of banks tend to be more flexible with VA and FHA buyers.

4. Most short sale banks will not pay towards Homeowner Association (HOA) Dues in the rear. If the seller can, they should continue to pay their HOA dues. The mounting fees seem to be a real source of contention for short sale banks or buyers to accept. The buyer’s first reaction is “why should I pay” for something the seller should have kept up. But if buyer can get the bank to pay closing costs or reduce the price in exchange and looks at it as part of the cost of buying a nice home at a great price, it is easier to accept.

5. Depending on the Bank, they may also ask the buyer to pay for the HOA documents which range anywhere from $200 to $500. Again it is best to look at it as part of the cost for a nice home.

6. Most banks won’t pay for the Buyer’s home warranty. So no need to ask.

7. Normally, the oven/stove will be sold with the home; however, the seller will often want to sell any other appliances separately outside escrow.

8. If the seller has two loans on the home, the first lien holder offers the second lien holder money to release their interest. Depending on the situation, a second lien holder may ask for more money than the first lien holder is willing to give. It may seem that you are in a stalemate. Without the second lien holders' cooperation, the sale cannot happen. While the seller cannot contribute any more money, and the banks cannot ask the buyer to contribute. If it is a great house, rather than let it go, the buyers may offer to contribute to the cause.

Short Sales definitely have a longer bumpier ride with less frills than a traditional sale normally does. However, with the help of a knowledgeable short sale specialist, one who understands the game and with these ace strategies you may be able buy a great home at a lower price. The long ride and some added cost may be well worth it.

Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

Short Sale Now or Pay Tax Consequences

A seller recently called me in a panic, "I received a 1099C from the bank and I owe the IRS almost $18,000." She had done a Short Sale last year and was preparing her taxes. She received the Bank's 1099 Form showing the forgiven debt, the difference between what the house sold for and what she owed.

However, the good news for this seller is the Mortgage Forgiveness Debt Relief Act of 2007. The law saved her from having to pay this huge tax. Once the seller filed the IRS Form 982, the problem was corrected on her taxes.

According to the IRS, "The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief."

Prior to 2007,the difference between what the house sold for and was owed, was considered forgiven debt, and may have been taxable.

Since the law only protects those that qualify until of the end of 2012, if you have been considering a short sale now is the time to do it. Since short sale bank approvals can take anywhere from 3-6 months, you need to start making plans .

While I always advise sellers considering a short sale to consult with their attorneys and/or an accountant, you will also want to consult with a Realtor who has the Short Sale Foreclosure Resource designation from the National Association of Realtors. Agents with this designation have gone through special training to specialize in short sales.

For more information, you will want to visit the IRS website on Mortgage Debt Relief Act of 2007 .


Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

An Exciting World of Its Own--Santee Town Center Park East (Santee Parks Part 10)

It was a warm July night in 2010, when I first visited the wonderful world of the Santee Town Center Community Park East located at 550 Park Center Drive, tucked away behind the Sportsplex and Cameron YMCA. People scattered across the giant grassy area on blankets and lawn chairs in front of the concert stage, preparing to hear the sounds of the Corvettes. Many enjoyed their picnic dinners while listening to the music. Children danced to the sounds of rock and roll. It was a delightful sight.


The following September, I vounteered at the first Santee Wine and Blue Grass Festival held at the park organized by the Santee Park and Recreation Committee. What an exciting affair!



On July 4th, the city held a concert festival in celebration of the nation's birth. The locals picniced and strolled around vendor booths. A live band played and people danced, while waiting for the clock to stike 9pm and the fireworks to fill the sky.


Recently, I visited the park again on a lazy Sunday afternoon. As we pulled into one of the large parking lots, I was amazed to see the athletic fields that lied beneath where all the festivities I had been to had taken place. The 40 acres of park includes the Cameron YMCA and the Sportsplex just across two bridges that transcend the San Diego River Bed.



The park was a buzz with activity. My husband and I stolled along the walkway with our dog. As we entered the park, I spotted a gentleman flying a remote control airplane to the delight of all who watched. Lots of open sky to zoom and zag.



As we walked further on, to my amazement, there were lighted synthetic turf football and soccer fields, home to the Santee Pop Warner Ravens. A few soccer games were winding down, and players were gathering up their nets.

I noticed people picnicing at tables, some even under gazebos, along the way. We even stopped to rest on one of the benches that doted the walk way.



The park also includes grills, restrooms, a jungle gym playground area, a concession stand, and a trail system interlinked to all parts of the park.



You will want to visit the Santee Town Center Park East to see this exciting world of its own.


by Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

A Park Amongst the Heavens--Sky Ranch Park (Santee Parks Part 9)

If you are looking for a spectacular view and a new park in Santee to visit, Sky Ranch Park is the place for you. This 1.3 acre mini-park is located in the newer Sky Ranch development at 5850 Cala Lily Street.

The small Santee City park blends in with the rest of the Sky Ranch neighborhood, careful you may drive right by it.


The park has scenic views overlooking the surrounding Santee and El Cajon regions, including Gillespie Field Airport and nearby mountains.



While it is a small park, there is a covered giant playground area along with picnic shelters, picnic tables and barbecue grills. You can stroll along a walkway surrounging the open grassy area or rest on one of the benches and enjoy the solitude.


Dogs on leashes are allowed. Open dawn to dusk, it fits in perfectly with the executive home neighborhood.





by Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

A Tucked Away Wonder--Shadow Hill Park (Santee Parks Part 8)

This eastern Santee park is tucked away in the Shadow Hills neighborhood off Woodside Road on the east side of Highway 67. It is located, off of Woodside Road, at 9161 Shadow Hill Road, between the newer Black Horse Estates and the Sky Ranch subdivisions.

The Shadow Hill Park, like many in Santee, features benches where you can just sit and enjoy the sunshine on a warm day or rest under the shade of a tree. Young children race about the large playground equipment. For the adults and teens, there is basket ball and tennis courts. People can barbecue on grills, plan parties under the covered gazebo. or just share a sack lunch on a picnic bench. Air jumps are also permitted with plenty of green space for children to run and play.

You will find a small bridge leading to a set of benches and a few trails to explore. Time to get away and enjoy another one of the Free Santee Parks.

For more information go to the Santee City website or for more information about other Santee Parks see my blog series on Talkin Real Estate.


Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585 begin_of_the_skype_highlighting (619)258-8585 end_of_the_skype_highlighting

Stroll Down Mast Park West Trail (Santee Parks Part 7)

One of the newest trails in Santee opened in May 2011. It is an extension of Mast Park. The Trail head is a half-mile-long located just south of Carlton Oaks Boulevard just off of Carlton Hills Boulevard.





You can access the trail on the west side of Carlton Hills Boulevard or you can enter park the Mast Park west end parking and walk under the bridge where the Boy Scout Troup 51 has painted several nature murals leading you to the trail entrance.

The finely fenced walking trail weaves through a thickly wooded area that leads to a shaded bench area where you can rest, or just to enjoy a veiw of a river pond where ducks wade and feed off the natural wildlife.



The trail ends at Carlton Oaks Golf Course, where one day there is hope to extend the trail. In the future, Santee,San Diego and the San Diego River Conservancy hope to create a system of trails for bicycle and pedestrian corridors, along both sides of the river from the East County to the rest of San Diego.


Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

Big Rock Park--West Santee Neighborhood Park (Santee Parks Part 6)

If you live in the west end of Santee, you will want to visit this five-acre neighborhood park with entrances located off Mesa & Prospect and also on Arlette St. adjacent to Chet F. Harritt Elementary School. Not only does this Santee Park offers lots of fun activity areas including basketball, volleyball, and tennis courts, it has gazebo picnic benches, grills, two playgrounds and an open green space.

The park like many of the Santee Parks, it is dog friendly with special time for off leash playtime: Monday through Friday, dawn to 9:00 a.m.

The park is also the home of the City’s summer day camp. A modular building (CSD-1) in the northwest corner of the park has served as the recreation program classroom.

One of the other exciting activities, that many of the Santee Parks permit, are Air Jumps.

Before or at the end of you visit to this park, you will want to hike on one of the Trailheads to the Mission Trails Regional Park located next to the park .

Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

Woodglen Vista Park, a Neighborhood Park Geared to All Ages (Santee Parks Part 5)

When I look back over the years of living in Santee, my family has spent many hours at the Woodglen Vista Park, located at 10250 Woodglen Vista Drive, Santee, CA 92071, just behind Cajon Park Elementary. As toddlers and young children, my sons romped around on the playground equipment and enjoyed exploring the large lush green areas and trees.

As my sons grew older, we played games of tennis on the two courts; they played friendly games of basketball on the full size basketball court; and in the spring, they practiced or played on the baseball/softball field.

In their adolescence and teen years, when they took to biking and skateboarding, they spent many hours doing their flips and tricks in the Skate and BMX Park.

We celebrated many family birthdays under the large picnic pavilion. On the weekends and during the summer, people enjoy grilling on the barbecues preparing meals to enjoy on the picnic tables.

Recently, the park fenced off an area where owners can relax in chairs and watch their dogs run free off their leashes.

While there is a lot of activity at this park, it is spread out over 10 acres allowing for even people looking for solitude to find it. This is a great neighborhood park to visit and enjoy some time with one another or by yourself.

For more information about the park, visit Woodglen Vista Park.

Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

Santee Lakes an Outdoor Heaven & Fun Run September 24th (Santee Parks Part 4)

If you are looking for a tranquil place to fish or a place to enjoy some quality family time, you need look no further for an outdoor heaven.

Fifty years ago Padre Dam Municipal Water District created the popular 190 acre Santee Lakes by recycling waste water into seven lakes. The focus of the Lakes is Recreation, Restoration, and Re-investment.

Besides fishing, where you only need a low cost fishing permit for the day, Santee Lakes has a menu of outdoor opportunities such as boat rentals including row boats, kayaks, canoes, peddle boats; Camping with 300 full hookup RV campsites and the recent addition of 10 cabins on or near the lake; picnic areas for large and small groups; playgrounds; and even a Sensory Gardens for the sight impaired. Please see the Santee Lake website for more information.

You won't want to miss the second annual Lap the Lakes 5K Run/Walk and 1/2 mile Jr Fun Run on Saturday September 24,2011, hosted by the Santee Lakes Foundation. For more details go to the Santee Lakes Website for details.

If you haven't visited this haven for outdoor activities, you will need to do it today. Even if you just take a stroll or feed the ducks.

Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

Mast Park a Hidden Neighborhood Jewel (Santee Parks Part 3)

This park is located at 9125 Carlton Hills Blvd, Santee, CA . The park entrance is just behind the Carlton Oaks Plaza business center and Santee Llibrary at the corner of Carlton Hills Boulevard and Carlton Oaks Boulevard. The park is open dawn to dusk and features a large playground, a basketball court, an extensive trail system, a sand volleyball court and an equestrian trail.

At first you might be concerned about what looks like a small parking lot, but keep driving and you will find more parking below the main lot.
On my recent visit, I discovered that the park now has a fenced off-leash dog area where dogs can romp freely.
Besides walking along the natural habitat areas and extensive trail system surrounding the park; in the past, I have used the park for birthday picnics. We celebrated on picnic tables under sheltered gazebos with restrooms nearby. The park offers plenty of trees and green areas as well Barbecue Grills for hot dogs. If the play equipment and a basketball court aren’t enough, Air Jumps are also permitted.

A delightful park to visit. For more information on this park and others visit Santee Parks.

Virginia Hall
Coldwell Banker Residential Brokerage
619)258-8585
Virginia@VirginiaHall.com
VirginiaHall.com

Cool Off at the Santee Aquatics Center (Santee Parks Part 2)

Children bored with summer? Need some low impact aerobic exercise? But don’t have a pool. The City of Santee has joined with the Cameron Family YMCA to offer year round swimming and pool activities to the general public, as well as the YMCA members.

For a small fee, the general public can enjoy the Santee Aquatics Center that has a 25 meter by 25 yard training pool, an activity pool with a play structure, water slide, water exercise area, and locker rooms.

For those like myself, who have an aversion to sweat exercise, you can enjoy a good aerobic workout in the Water Exercise classes, or just swim laps. The lap pools are separate from the water structure and slides.

Families with children can enjoy hours of splashing and playing on the slide and the water structure. Children under age 7 must have an adult in the water. Maximum two children to one adult.

You can't miss the colorful Santee Aquatics Center located at the Cameron Family YMCA, 10123 Riverwalk Dr., Santee, just east of Cuyamaca St. You will want to visit the Santee City’s website to see the current schedules.

For more information about programs offer at the Cameron Family YMCA and City of Santee Aquatics Center call (619) 449-9622 .

Virginia Hall
Coldwell Banker Residential Brokerage
619)258-8585
Virginia@VirginiaHall.com
VirginiaHall.com

Mission Trails Regional Park—Urban Nature Escape (Santee Parks Part 1)

When buying a home, schools and parks are always important. Santee has a number of parks that I would like to share. This is the first part of a ten part series on the parks of Santee.

While Mission Trails Regional Park is not truly a Santee City Park, a portion of the nearly 5,800 acre park is located at the west end of Santee located off Mission Gorge and Father Junipero Trail and is one of my favorite parks to visit.

Centrally located, Mission Trails Regional Park provides a quick, natural escape from the urban hustle and bustle. Mission Trails Regional Park has been called the third Jewel in the City of San Diego Park System.

In particular, this park is one that I often get calls from buyers searching for homes in the area. People love to stroll through the trees, perhaps watch a few birds. Others like to hike along the 40 miles of trails that include open space and rugged hills, including Cowles Mountain. Others bike across the Grassland trails. Families love to visit the Old Mission Dam, and watch the waterfall, cross the river bridge or enjoy a picnic lunch. Mission Trails Regional Park has something to offer everyone, including Fido on a leash.

Opened in 1974, Mission Trails Regional Park has become one of the largest urban parks in the United States. Originally used by the Kumeyaay, the park is the site of the Old Mission Dam, built to store water for the Mission San Diego de Alcala.

Campers visit Kumeyaay Lake, for a weekend of primitive camping with nature, where they might see the endangered Least Bell’s Vireo bird.

You will want to visit the state-of-the-art Visitor & Interpretive numerous informative hikes Center, For more information and Trail and Habitat maps visit http://www.mtrp.org/park.asp .

The Slippery Slope of Dual Agency

Many buyers deliberate seek out the agent selling the home to represent them. They believe they have a better chance of getting their offer accepted at a better price and terms. Some first time home buyers don't understand that they don't pay for their representation, the seller normally pays the commission. But is it a wise decision? While many agents can do dual agency fairly, it is often like being the divorce lawyer for both parties.

Representing both sides is legal in California, and the California Association of Realtors tries to educate buyer and sellers with the Agency Disclosure that defines the agencies. However, Dual Agency can be a slippery slope and not always in the best interest of both parties. In comparison to separate representation, dual agency involves a higher number of law suits.

Conflict of Interest. While it is legal, the Agent's interest may be the priority. Normally the listing agent splits the commission with the buyer's agent. In the case of dual agency, all of the commission goes to the listing agent. Some sellers will try to negate this by negotiating a lower commission for a dual agency situation, but it is worth the risk of stepping over the regulated agency boundaries.

In most cases, the transaction is also easier for the agent.  They spend less time calling and emailing, communicating and negotiating with another agent, who is busy and can never be reached. Also, the agent spends less time faxing or scanning forms to be signed by the other party.

Confidentiality. Since the agent is representing both sides and knows everything about both parties, confidentiality can be hard to maintain. For example, I had buyers once who found out they were expecting and reconsidering their decision to buy a two bedroom, when their adolescent would have to sharing a room with the baby. At the same time, the excited sellers were prematurely heading to another state to search for a new home.

Less Satisfied. Often both parties feel like the other party got a better deal. Even though the agent strives to please both parties, some little nagging devil sits on their shoulder whispering that the agent favored the other party and "they got a better deal."

So having your agent represent both sides, may not always be in your best interest.

Virginia Hall
ABR®, CRS®, e-Pro, GRI®, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585
DRE#01409760

Can't Eat Your House: Buying After a Short Sale

With the economy the way it is today, a lot of people are getting in the mindset of why try to pay the mortgage when you are losing the house anyways. For some people this may be true. You can't eat your house.

However, for those who are able to keep up your house payments and undergo a short sale, your credit will not suffer as much and you will be able to buy another house sooner.

While the average short sale seller has to wait 2-3 years to buy another home, there are some home loans out there for certain sellers, who can buy immediately based on the criteria below:

• have not missed a house payment
• can prove steady employment for the last 2 years
• have a credit score at least 640

When I looked at these criteria, I wondered who might qualify since most banks require the short sale sellers to have legitimate financial hardship to qualify for a short sale. Financial hardships normally include job loss, divorce, unaffordable rising interest rates, job relocations, health problems, etc..

However, there may be circumstances where some people who are still making their house payments such as in the case of a job relocation or going through a separation or divorce, where financial hardship is imminent, but they still manage to squeak by.

For those who fall under the criteria above, there is now an alternative home loan program to consider after rolling over one those bumps in life. For more information contact me.

--Virginia Hall
ABR, CRS, GRI, SFR, e-Pro
Coldwell Banker Residential Brokerage
www.VirginiaHall.com
Virginia@VirginiaHall.com
Direct: (619)258-8585

Five Tips to Buying a Short Sale Home

Buyers are throwing up their hands in frustration. "Don't show me any more short sales!" Buying a short sale home is not for the faint of heart.

When short sales first started, people would ask if a short sale was short in time. No, actually if you have ever heard the word Oxymoron and wondered what it means, Short Sales are the perfect example of it (combined words that are contradictory).

However, with realistic expectations patient buyers are getting homes up to 10% lower than the comparable homes. Keys to successful short sales include:

1. Realistic Expectations. Expect lengthy escrows 3-6 months on average. Once the buyers and sellers agree on a price and terms, then the home should either be placed in the "Contingent" or "Pending" status on the multiple listings. This will signify that there is an accepted offer awaiting the bank's approval. The bank must approve the short sale as well as all the terms of the offer. If the seller refuses to choose one offer, and sends all offers to the bank, then it is best to continue to shop because someone else may outbid you. Remember, while most of the time, the banks will approve the short sales, there is no guarantee.

2. Short Sales in Progress. Seek out homes that have already started the process. In the past, if the home had been on the market a long time, everyone always wondered what was wrong with it. However, while short sales wait a long time for the bank to approve the offer, this question goes out the window. Those homes that have been on the market a long time may be just what the buyer is looking for. If a previous buyer changes his mind and the approval has been started, a new buyer may be able to slip into their place, shortening their approval times to 2-3 months.

3. One Loan Homes. Seek out homes with only one lender to get approval from. The more liens a home has on its title, the more complicated and time consuming the process is.

4. Closing Cost Credits. Buyers should ask for the seller to pay up to 3% of their closing costs. In return, the buyers should expect to pay for items that many short sale banks are refusing to pay for including: Termite work, Home Warranties, Repairs, costly second liens and HOA dues in the rear.

5. Vision. When shopping for a home, buyers need to have vision. They need to see the potential in a home. Finding a run-down home in a good neighborhood, can make a lot of sense. There is less competition for the home and the buyer can remodel it to their liking. If the work is more than carpet and paint, a renovation loan can be used to purchase the home. While these loans have a higher interest rate, the lower price can offset that.

So don't give up hope on short sales, they take longer but under the mess is the potential for a beautiful home.


--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585 begin_of_the_skype_highlighting (619)258-8585 end_of_the_skype_highlighting

San Diego Home Affordability Index Improved

When someone says to me, "that house just isn't worth what they are asking for" and the house is well below the comparable home prices, my first question is, where are you from originally? Not meaning this in a bad way, but when I hear that comment I know they are from a different part of the United States.

Yes home prices in San Diego County seem outrageous to people relocating from Michigan, Florida, and even from people as close as El Centro, where the home prices are up to a 1/4th of the price. However, I quickly remind them that the prices in San Francisco and New York are a lot more and it rains twice as much." I also remind them that they are paying for the weather here in Sunny Southern California.

According to the Union Tribune San Diego's housing affordability has actually improved in the third quarter. Data showed that 51.5% percent of households making a median income of $75,500 can now afford to buy a $325,000 median priced home. The affordability index has improved since May, when San Diego ranked 11th with only 46.6% able to buy.

Looking at the history of the National Association of Home Builders Housing Opportunity index in San Diego, we have come a long way from the fourth quarter in 2005, when San Diego ranked 7th with only 3.6% able to afford the $500,000 medium priced home and to the other extreme last year when San Diego ranked 25th with home prices at $270,000.

While San Diego County is now ranked the 12th least affordable market in the United States, we are still considerably more affordable than New York, who ranked the least affordable with only 22.6% able to buy a $435,000 median priced home, and San Francisco ranking second with only 28% able to afford the $600,000 median priced home.

With California having 7 of the top 10 least affordable cities, you are probably wondering where is the most affordable housing. Drum roll please.....Kokomo, Indiana was the most affordable with 96.1% able to afford the median price home $83,000 with a median household income of $61,400. However, remember while San Diego has an average rainfall of 7" compared to Kokomo with an average 40" and not to mention the average snow fall of around 22".

With low interest rates and the risk of prices falling behind us, economist, David Crowe, fears that San Diego may grow less affordable in the future; however, he also sees rising prices ironically representing a sign of a better housing market to come.

--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

First-time Home Buyer Tips

The following suggestions will help the First-time Home Buyer to make the most of the market:

Find a Real Estate Consultant. The First thing to do is seek out the free advice of a Realtor. You will want to find just one Realtor that can advise you and represent your best interests. You will want a Realtor who is willing to answer questions and educate you on the process. It is not uncommon to sign a Buyer Broker Agreement with an experienced committed Realtor. The agreement outlines the agents' responsibilities, as well as the buyers'. Figure out what is the best way to communicate--be it email, phone, or text.

Discuss Affordability. One of the first people you should talk to is a lender or mortgage broker. They can help you see where you are and where you need to be. How much have you saved for a down payment? How much can you budget to spend each month? Will you need to factor mortgage insurance into their monthly payments? What can you expect to pay in property taxes? Working through questions up front can help you get a better handle on what you can truly afford. Also do not make any large purchases on credit until after the close of escrow to avoid changes in your credit scores.

Discuss Home Ownership Goals. What are your goals and why do you want to buy? How long do you plan on staying in the home? What are your needs in the future? When you first start it is easy to look for your dream home and when you are first entering the market you may need to lower your expectations. Remember that you need to just get on the bus and work your way up as your income improves and you grow your equity.

Match Your Expectations to Your Price Range. Many first-timer home buyers live in small apartments, but when buying will not settle for anything but a house. Understanding that you are at an entry point in the marketplace, and that you are not likely to get all the bells and whistles with your first home in a price range that you can comfortably afford.

Familiarize Yourself with Starter Home Inventory. Begin looking at your market with a fresh eye toward affordable entry-level homes, including properties that may not have been considered before. Falling prices have opened up some areas that have been out of reach to first-time buyers for years. Knowing the inventory inside out will help your expectations as to the type and condition of homes that fit your price range. Once you have a good feel for the homes in your price range, then you are ready to buy.

These are the keys to a successful First Time Home Buyer purchase.

--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585

To Remodel? Or Not to Remodel? That is the Question

I am often asked "What should I do to prepare my home?"

1. Clean & Declutter. While most people have cluttered closets and dishes in the sink, now is the time to show the home at its best. The number one thing that I tell people is to thoroughly clean and declutter your home. Everything should shine. This is the cheapest most effective way to prepare your home.

If you are uncertain at what level to thin out your belongings, you can visit some open houses to get an idea. All counter tops should be cleared and closets should be organized.

If your rooms are crowded, you may want to remove over-sized furniture,opening up the room giving it a more open feel. Some people rent storage containers or storage units that they can move many of the items that you are not ready to part with.

Clean out the closets. When people look in your closets, they will be looking for space. If you are squeezing in your clothes, like most of us, it is time for thinning out the closets and making a run to the Salvation Army.

Don't forget to clean the carpet, windows, and the blinds. Buyers get distracted by personal photos, so best to pack them up.

2. Curb Appeal. While you are decluttering the inside, look at the outside and see if there isn't a bush that needs some pruning. Pull up the weeds and throw down some decorative bark in between bushes to give the yard a fresh look.

Right before the For Sale sign goes up. Add some color near the front door. Plant a hardy colorful plant that will make it through the next couple of months.

3. Got Pets? This can be a challenge. You will want to have all dogs outside, if possible or take them for a walk while the home is being shown. If your house has a pet or a cigarette odor, and you do not have the money to replace the carpet, then you will want to keep windows open and try a plug in deodorizer. I found some spray deodorizers that can help including Smell Be gone (http://www.smellsbegone.com/) and Fabreeze. Also if you have litter boxes, they must be cleaned out daily.

4. Paint. If it has been a few years since you have painted, it may be time for a fresh coat of paint or touch up. Definitely, patch up any holes and go with a neutral color. For those of you have been watching HGTV, beware of bold colors. When you prepare a home to sell, you should be thinking gentle colors with your furnishings and decor being the contrast.

5. Remodeling. Many people talk about remodeling their kitchens and bathrooms before listing. If you are not planning to move for a couple of years, this is fine. However, if you are doing in hopes of getting more money for the home, you may be disappointed. While remodeling kitchens and bathrooms definitely helps a home to sell faster, you may not recoup the money you put into it. According to most Cost to Value Reports, the average return on the investment for a minor kitchen remodel(average $25,000) is 83 percent and for an average bathroom remodel (average cost $18,000)is 78.1 percent. A lot of hassle and money to invest, when you may not recoup the full cost.

So when preparing to sell your home, it is best to keep it simple with these tips.

--Virginia Hall
Coldwell Banker Residential Brokerage
DRE #01409760

Relocation Costs

Considering a move to a new city? Before you pack your bags and hire a moving company, be sure to research the potential price tag of relocating. It may cost more than you think.

Cost of living can vary greatly from town to town, so be sure to do some research before taking the plunge. Better Homes and Gardens recommends browsing the local newspaper for grocery promotions, ads, and other local news to track costs so you can put those figures into a worksheet and determine the income you might need. While several cost-of-living calculators are available on the Internet, they provide only general figures and don’t take into account specific housing needs.

Be sure to ask a Certified Residential Specialist in your target area about “hidden” homeownership costs, such as recreation fees, trash collection and community services. Try to obtain a one-year sampling of utility bills for the type of home you’re considering. What can you expect to pay for telephone, cable TV and Internet services? Will you have your own septic tank and water pump, or will the community provide water service?

There are a host of other expenses to consider. What taxes will you pay? Higher taxes may mean better schools, libraries, trash collection and other community services, while lower taxes could mean higher expenses for these services. But it pays to have all the facts before you make a move.

Likewise, transportation and parking costs often are higher in larger cities, while a small-town commute can mean a short walk or bike ride. Also, gas prices can be more costly in some areas than in others.

Leisure time costs can add up as well. How much more will you have to pay for tennis or health club memberships, adult education classes and golf course fees?

Moving away from family and friends can mean more frequent phone calls and trips back home, so be sure to allow for those additional costs as well.

Provided by CRS--Your Home June 2010

So What in the World is HAFA? A New Foreclosure Alternative

By now, everyone knows someone who has lost their home to a foreclosure or undergone a “Short Sale” that seem to take forever. In an effort to help homeowners avoid foreclosures and streamline the short sale process, on April 5, 2010 the Treasury Department enacted the Home Affordable Foreclosure Alternatives program, better known as HAFA. The program was developed to provide a viable alternative for struggling homeowners who are unable to keep their homes even after qualifying for the existing Home Affordable Modification Program (HAMP).

The program includes simplifying the “Short Sale” process by allowing homeowners to seek the lender’s pre-approval of the short sale price and terms prior to listing the property. The homeowner will be able to use the financial and hardship information already collected during the loan modification process to qualify for this program. It requires lenders to fully release homeowners from future liability for the first mortgage debt, and to provide homeowners with up to $3,000 in relocation money. The program also offers financial incentives for lenders to encourage their cooperation.

While it seems these guidelines may be flexible, the general qualifying criteria for the HAFA program are:

1. The property is the borrower’s principal residence;
2. The mortgage loan is a first lien mortgage originated on or before January 1, 2009;
3. The mortgage is delinquent or default is reasonably foreseeable;
4. The current unpaid principal balance is equal to or less than
$729,7501; and
5. The borrower’s total monthly mortgage payment exceeds 31 percent of the
borrower’s gross income.

For more details, visit the Making Homes Affordable Website. The program ends on December 31, 2012.

So help is on the way for struggling homeowners and soon short sales may actually close in less than 45 days. Struggling homeowners are encouraged to contact their local Realtor® today to
discuss alternatives to foreclosure.

--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
Direct (619)258-8585
DRE#01409760

California First Time Home Buyer Tax Credit--First Come First Serve

The Federal tax credit is gone. However, California enacted a new first time (FTB) and "Brand New" Home Buyer Tax credit 5 percent of the purchase price or a maximum of $10,000 that began on May 1, 2010 that requires you to act now because the credit will only be available on a first come first serve basis. $100 million was allocated to FTB's and $100 million was allocated for buyers of New, never lived in, home buyers.

While these credit are available for taxpayers who purchase a qualified principal residence until the end of the year, the California Association Realtors® expects "the money will be used up very quickly".

Besides the limited funds, another issue that has come to light is the refunds are divided over 3 years and applied towards what the home buyers owe in state taxes. So many taxpayers may not be able to utilize the entire credit, if they don't owe as much as the credit. Taxpayers should consult their tax accountants to see how to take full advantage of the tax credit.

Please see the State of California Franchise Tax Board website for more detailed information.

So if are wondering if now is the time to buy a home and take advantage of the tax credit. Now is definitely the time, before the money runs out.

--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
Direct (619)258-8585

Three FHA Loan Changes

In 1934, the FHA was created with the intent of helping those with low and moderate incomes to buy homes. In the past, FHA increased its market share during housing market slumps and played an important role in stabilizing the market. While a 10% share is optimal, FHA insured nearly 30% of all home loans in the past year. Even government officials believe this may be way too large.

So the FHA has made some more stringent changes to reduce their risk:

1. This month, the 3.5 percent down-payment requirements on loans insured by the FHA have increased to 10 percent for borrowers with credit scores below 580. Borrowers with credit scores of 580 or above still will be able to put down the traditional 3.5percent down.
2. The upfront mortgage insurance premium increased from 1.75 percent to 2.25 percent
3. The closing cost concessions that sellers could give buyers has been reduced from 6 percent of the loan amount to 3 percent.

However, these changes are encouraging some home buyers to return to Private-Mortgage-Insurance (PMI), who have also made changes to their policies. In the recent past, PMI was not available in an area with a declining market, such as California. Although, according to Lew Sichelman of The Los Angeles Times,"one private mortgage insurance company now will insure five-percent down-payment loans to borrowers nationwide."

Buyers need to remember that premiums for both private mortgage insurance and government-insured FHA loans may be tax deductible. Also, after gaining 20% equity in the home, with an appraisal, the mortgage insurance can typically be canceled.

--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
"2010 Five Star Real Estate Agent"
Coldwell Banker Residential Brokerage
Direct (619)258-8585
DRE#01409760

Limited Time $18,000 in Combined Homebuyer Tax Credits

Wow! What an opportunity for first time California homebuyers and move-up buyers purchasing brand new homes. Between now and April 30, 2010, if a first time buyer enters into an accepted contract and closes before June 30, 2010, they may qualify for up to $18,000 total in Federal and California State tax credits during a brief window of opportunity.

Move-up buyers, who are not first-time buyers, purchasing a brand new home and have lived in their present home for at least five years, may also use the same time frames to receive up to $16,500 in combined tax credits as permitted under the federal law.

According to the California Association of Realtors, "Under a newly enacted California law, a home buyer may receive up to $10,000 in tax credits as a first-time buyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits."

California lawmakers allocated $100 million to first time buyers and another $100 million for buyers of brand new homes to be applied in equal amounts over a period of three taxable years. So the new tax credits will only be available until the funds run out and there are certain limitations. The funds are limited, so don't dally.

For more information and details, visit the official
California Franchise Tax Board website


--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
Direct (619)258-8585
DRE#01409760

Buyer's Representation is Free, Free, Free!

I recently had a friend call me after he had entered into a contract on a home, only he used the listing agent to represent him,as the buyer. He thought that by using the listing agent with a cash offer, that he was more likely to get his offer accepted. Which may be true, since the agent will be double ending it--walking away with the full commission rather than just half. Can't blame the agent. Dual agency is legal in California. In most cases, an agent can represent both parties fairly...or so it seems.

Regarding commissions, the standard of practice in Southern California is the seller pays the full commission to their listing agent who splits it with the buyer's agent. Therefore the buyer who believes he is saving money and still getting the best representation, may be sorely mistaken.

Ironically my friend called me, someone he trusts, to ask if I knew of someone that could look over his paperwork. He hadn't used agent in his last real estate transaction and didn't understand all the paperwork. I had to explain to him that I could not, nor would any ethical realtor, review the paperwork after hiring the listing agent to represent him. This would be interferring with their agency and could land myself or the other realtor in hot water. So I had to refer him to a real estate lawyer. And they aren't cheap.

I explained that the next time, he would be better off hiring a separate agent to represent him and then he would feel like someone is really looking out for his best interest. Often the listing agent has established a relationship with the sellers, making it difficult to be impartial; as well as it is often difficult to keep certain confidential information from slipping out.

While I have done dual agency in the past, and believe that in certain circumstances it may be a good way to sell a more challenging home. However, I firmly believe the best way to buy a home is with your own FREE representation.

--Virginia Hall
ABR, CRS, e-Pro, GRI, SFR
Coldwell Banker Residential Brokerage
Direct (619)258-8585
DRE#01409760

Hidden Treasure

Tax day is just around the corner, and many homeowners forget that they’re sitting on a wealth of potential savings — in their home. Tax deductions for homeowners are plentiful, so keep these guidelines in mind as you prepare your return this year.

First, know that if you deduct home expenses, you have to file form 1040 (also known as the long form) and itemize your deductions on Schedule A. While it can be a headache, the rewards might be worth it.

Remember that the mortgage on your home is deductible — at least the real estate taxes, qualifying interest and premiums, for a loan up to $1 million, according to the IRS. Note that fire or homeowner’s insurance premiums and the principal mortgage amount are not deductible. Here’s how to calculate what’s deductible: Enter your total real estate taxes for the year, and enter the number of days in the property tax year that you owned the property. Divide the number of days by 366, and multiply that number by your total real estate taxes for the year.

Paid off your mortgage early? The penalty you might have received is tax deductible as home mortgage interest, as long as it’s not for a specific service performed or a cost connected with your mortgage loan.

You may have heard that home repairs can qualify for tax deductions, but home improvements are the real winners. An improvement is classified as anything that adds to the value of the home — for instance, making a room handicapped accessible or adding a deck to the back of your home. Always keep receipts and records — and remember, if you borrowed money for that improvement, the interest on the loan is tax deductible, just as it is with the mortgage payments.

Another item many homeowners forget is deductions for loan origination fees, better known as “points.” One point is equal to 1 percent of your loan. Depending on how many points you’ve accumulated, you may be eligible to deduct them. There are rules about deducting points, but a financial professional can help you sort through them.

And finally, don’t forget that if you upgraded to energy-efficient Energy Star windows, stoves or water heaters, those may be eligible for a tax credit. Check www.energystar.gov to see if your improvements are included.

Reprinted from The Residential Specialist "Your Home" March 2010

6 Tips to Get Rid of the Cigarette Smoke Smell

Yes indeed, the vacant home was beautiful. It had a manicured lawn and yellow daffodils lining the home entrance. However, when I opened the front door a wall of stale smoke took my breathe away.

After roaming through each orderly, well decorated room, when I asked the buyer what they thought of the home, the buyer said, "It is absolutely beautiful." He hesitated looking at his wife, "But we can't live with this smoke smell."

While some odors are easy to fix, empty the trash and litter boxes, eliminating the smell of smoke can be more challenging. Here are 6 Tips to help. Always be sure to test any products mentioned below on small areas that you are cleaning, before proceeding forward to avoid damage.

1. Stop Smoking In or Near the Home and remove all ashtrays.

2. Clean All Washable Surfaces including windows, screens, counters, etc. with 1 part vinegar and 3 parts water. Change all air filters. For all those surfaces that can't be washed, a couple of products that you can find online that have been recommended by others for eliminating smoke odors are "Smells Begone" or "Vamoose!" .

3. Prime and Paint Your Walls. First prepare all walls, by washing them with vinegar water and allow to dry. Then use KILZ primer before painting the walls. The KILZ is known to conceal stains, and seal the odors from emerging after painted.

4. Professionally Clean or Change Carpet and Upholstery. If you are unable to change the carpet or furniture, read the manufactures cleaning instructions first to avoid damaging them or voiding any warranties you might have. Again after testing a small area, sprinkle baking soda on your carpet and leave it for three to four hours before vacuuming. Leave boxes of baking soda open in the rooms to help absorb. Then have your carpets and upholstery professionally cleaned.

5. Replace, Wash or Dry Clean fabric window coverings.

6. Open Windows and Place Boxes of Baking Soda around the room and leave them for several days. Baking soda should absorb any lingering cigarette smoke odors. You may need to repeat this process several times to completely get rid of odors.

When buyers are looking at homes to purchase, they use not only their sight but they also their sense of smell. So don't let your home be remember for its cigarette smoke odor.

Virginia Hall
ABR®, CRS®, e-Pro®, GRI®
Coldwell Banker Residential Brokerage
Direct (619)258-8585
DRE License #01409760

Short Sale--An Oxymoron--A Word for Wait

People hear "short sale" and think "Great! It won't take too long". Unfortunately, the term short sale refers to the home selling for less than the sellers owe on it. So they will come up "Short" of what they owe.

Because the banks aren't anxious to take the loss, they mull over the sellers' financial records and the process takes anywhere from 3 months to 6 months on average to get an acceptance, if the bank approves it. There are circumstances where the bank won't approve the short sale, and the home moves into foreclosure.

What happens while you wait and wait for an answer to your offer? Once your offer emerges from the bottom of the piles, the bank starts by reviewing the seller's financial records. In variably, they are missing or need updated records. Next they order their own appraisal or a Broker Price Opinion (BPO) to insure the offer price is reasonable. Then they ask for the breakdown of the closing costs to see what they can cut there.

So you wait and wait, and then finally the day comes when they send an approval letter. Now the race is on. The banks will typically give you no more than 30 days to get it closed and will coerce you with late fines.

So is all the waiting worth it. If it is the home you have been searching for, it is usually worth it in the long run. You can usually get a home at a good price, and if nothing more you learn a valuable lesson in patience.

“Patience and fortitude conquer all things” Ralph Waldo Emerson

Virginia Hall
ABR®, CRS®, e-Pro®, GRI®
Coldwell Banker Residential Brokerage
Direct (619)258-8585

They're Back....Multiple Offers in the San Diego Housing Market

While the medium home prices in San Diego County may be climbing slower than in 2003 in, due to the uncertainty of the economy, the bidding atmosphere with Multiple Offers is back.

As the inventory of homes decreases below the normal 6 months of inventory in most areas of San Diego County to 2-to-3 months and the number of buyers increased 10%, compared to a year ago, the competition for good homes is driving buyers into a competetive bidding frenzy. Buyers are making offers on multiple properties, and sellers in the lower end of the housing market are getting multiple competing offers.

"My goal is to get a house this year," said one of my serious first time home buyers. Many are racing towards that goal before the $8,000 Tax Credit expires, before the giant carrot disappears from underneathe their noses April 30th. To add to the mix, the government added in a $6500 tax credit for repeat buyers. And then there are the investors buying while prices are low.

Sellers and banks are looking for the cash to back up those rising offers, should the appraisal not come in and the buyer may have to pay more cash to make up the difference.

So what are buyers to do?

1. Lite Fixer. Look for a home that may not be perfect. Look for the potential in a home. Cosmetic repairs can always be done one at a time. Look beyond the stained carpet and scuffs on the walls. Ask the seller to help with your closing costs so that you can use that money to replace the carpet and paint. Also, the tax credit can be used in the near future for needed repairs or updating. But beware, avoid homes that require too many "honey do's" unless you have lots of money to sink into the home. Watch "The Money Pit" with Tom Hanks and Shelley Long before jumping into a home with lots of issues.

2. Buy Low. Buy a home below your means, below your maximum preapproved price, so that you have room to bid up. While you think you are doing good by giving the seller his asking price, multiple offers pushes the price upward and you may need room to meet that higher price.

3. Be Realistic. Most importantly, listen to your Realtor's advice and be realistic. Listing agents toss the low ball offers aside, unless you have "all cash" for a quicker sale. Know what the comparable homes are running in the area and plan to make a fair market value offer.

For more tips on being a successful buyer in this challenging market, read 5 Tips How FHA and VA Buyers Can Succeed

--Virginia Hall
ABR®, CRS®, e-Pro®, GRI®
"2009 & 2010 FIVE STAR Real Estate Agent(SM)”.
Coldwell Banker Residential Brokerage
Direct (619)258-8585

5 Tips How FHA and VA Buyers Can Succeed

First time home buyers grow frusted! Good homes at good prices are being snatched up by All Cash and Conventional buyers. Homes that are priced well below the market value, a technique called Power Pricing, are meant to get multiple offers in record time. The frenzy created by a low priced home creates an atmosphere of desperation amongst buyers. Each buyer outbidding one another in an effort to secure the great deal.

Unfortuately, there is a heirarchy of loans: "All Cash" is the best, then Conventional, FHA and lastly VA loans. How is an FHA or VA buyer to compete?

1. Representation. Serious buyers must employ the help of a qualified Realtor who can help them catch the brass ring. However, they need the experienced agent to help them understand that everyone is looking for the elusive great deal! They need a representative that can help find a home with their needs in mind, at the same time being realistic.

When buyers are first exploring the market, there are many websites (i.e. Realtor.com, Trulia.com, Redfin.com, etc.) for them to investigate on. However most of these websites have a 48hr filter delay. In this market, those great deals may have multiple offers and not even available in 48hrs.

A Realtor can set up an automated search that is directly connected to the MLS, such as Gateway, notifying buyers immediately of new listings or changes.

2. Ready to Jump. Buyers need to check their personalized online searches daily. They have to be ready to go, to make a quick decision. While a buyer is thinking it over, another one has put an offer in on it. What buyers need to remember is that they can change their mind within a certain period of time defined in the purchase agreement without risk of losing any money.

3. Closing Costs.For sellers, FHA & VA buyers are less desirable when compared to "All Cash" and Conventional loan buyers. The FHA and VA buyers have less down and are less financially stable, often needing assistance from the seller with closing costs, and may not qualify for a loan at the end of the road. Where the all cash and conventional loan buyer may have more money and if the appraisal comes in low, they are more apt to pay the difference. So what is an FHA and VA buyer to do? The price and conditions are the only way to stand out.

The all cash and conventional buyers know they have an advantage and may make lower offers. However the FHA and VA buyer has to come up to the plate with a reasonable or higher offer. With a Realtor's assistance, carefully analyse the comparable home prices and consider the condition of the property and make a reasonable offer. The offer may be higher than the asking price.

If you have the money for closing costs, pay your own closing costs. While you are searching for a home, continue to save your money for the down payment. This will help give you an advantage. If you need the closing costs paid for by the seller, you will need to add those costs into the offer.

4. Ask for Less. When buying a Bank owned property or a short sale, the less a buyer asks for the better. In a normal market, the buyer may ask for appliances or additional items such as a home warranty that the seller would typically pay for. However, the banks don't want to give any frills.

While normally in Southern California, the termite inspection is paid for by the seller, in Northern California the buyer pays for it. In the case of Short Sales and Bank Owned properties, the tide seems to be turning. While VA buyers have to have a termite inspection and clearance, the buyer should put a maximum price tag on the repairs. Banks don't deal well with unknowns.

FHA buyers may want to avoid asking for a termite inspection with repairs altogether, if the appraiser will allow it. Especially, on condominiums where the HOA usually pays for the exterior termite inspections once a year. Buyers should let the home inspector know this so that they can look for any issues of wood rot under sinks.

In regards to houses, if the seller of the short sale home purchased it in the past few years it more than likely had a termite clearance at that time and less likely to have costly damage and repairs needed. However, if the house shows lots of signs of deferred maintence, this may not be the house for a first time home buyer. The bank wants to give you a great price for the house "as is".

5. Stand Out. Buying a home is an emotional purchase. By appealing to the emotional side of a seller, buyers may beat out the competition. In a letter, buyers should give the seller a little history of themselves and reasons for them to like them. Especially Veterans, they need to use their service to our country to their advantage to tug on those heart strings. Even add a nice photo.

These tips will hopefully help a FHA and VA buyer succeed. But the biggest tip is to patient and persistent.

--Virginia Hall
ABR®, CRS®, e-Pro®, GRI®
Coldwell Banker Residential Brokerage
Direct (619)258-8585DRE#01409760