Diamond Bar, CA

In order for lender to issue a loan to buyer to purchase a property, lender hires an appraiser to evaluate the market value of the subject property to ensure lender's interest. Only comparable market sales (comps) of local properties sold within the last six months are allowed to value your home.

In today's down market, appraisal can come in low due to the fact that our market is foreclosure driven and the bank owned and short sale properties are selling 10% to 40% below market. The value of those short sales and bank owned homes could affect the value of standard sales tremendously.

In order to avoid appraisal problem, home owners need to either bring their price down to the bank owned price level or deal with the appraisal problem after escrow opens.

If the appraisal value comes in too low, there are several possible solutions to the problem:

1. Ask for another appraisal.

2. Protest the appraisal with documentation of your upgraded expenses.

3. Have the buyers make a larger down payment.

4. Lower the selling price to meet the appraised value.

If option 1 and 2 do not work out, combined solution of option 3 and 4 will be the most common practice. Buyer comes in with a larger down payment and seller lower the price by meeting each half way between the sales price and the appraisal value.

Recently I have lots of buyer's inquiries on buying un-approved short sale. un-approved short sale occurs when the seller owes more money than the house is worth and the selling price of the house is subject to the lender's approval.

For un-approved short sale, the listing price is not real because it depends on the final approval of the bank. It will take about 2 to 6 months to buy a short sale and the chance of buying it successfully is only 50/50 due to lots of uncontrollable factors such as:

1. Buyer finds another house that is a better deal.

2. Seller gives up on the house by not paying the loan.

3. Bank declines on buyer's initial offer and counter back at a higher price.

4. Multiple buyers bidding on the same house over 2 to 6 months short sale process.

For un-approved short sale, the most logical approach is to avoid it. If the house is really appealing to you, the next most logical thing is to submit an offer first and wait until the price is approved by the bank.

Once it is approved, you can start the regular process by looking at the house and compare it with other similar houses for sale at that time to determine whether you want to proceed with the purchase or not.

Due to the level of uncertainty, educated buyers are staying away from un-apporved short sale and focus their search on bank owned properties, approved short sales and standard sales.

In California, tenant can not use the security deposit in lieu of the last month rent. If landlord did not receive the last month rent after tenant gives a 30-day move out notice, landlord need to contact tenant immediately to collect the rent or serve the "3-Day Notice To Pay Rent Or Quit" notice.

Security deposit will be refunded within 21 days after tenant moves out. Tenant shall not expect early refund of the deposit at the time of move out inspection.

If you are looking for an experienced agent to help renting your home, please call Caroline at (626) 922-8408.

Often times, I have clients who are getting married or in need of transfer title to a family member. To do so in California, you can do it yourself by performing the following 3 tasks:

1. Sign a quick claim deed

2. Have it notarize and

3. Record it with the county.

Or you can have a escrow company do all of the above by making just one trip. The company I am working with is

Platinum Hills Escrow
Esther Murcia
1409 S. Diamond Bar Blvd.
Diamond Bar, Ca 91765
(909) 860-8668
esther@platinumhills.com

Just let Esther know that you are my client and she will process your request accordingly. Please be sure to consult your accountant and lawyer for the tax and legal implication prior to the actual transfer.

Here are some general reasons for using agents as a means to procuring tenants:

1. Interviewing prospected tenants can be very frightening especially for new landlords. Agents do this as a matter of course and can generally ascertain a lot more information by experience and asking the right questions.

2. No upfront fee until the house is rented. Agents handle all the initial transactions including property showings, collecting applications, pull out credit reports, verify employment, prepare lease and disclosures and collecting first month rent and deposits in cashier's check.

3. Agents constantly advertising in the newspapers and internet and have more advertising resources than private owners.

4. The agent can give the landlord 'an arm's length distance. Landlords can sometime be taken advantage of by overbearing prospected tenants.

5. Agents have experience of the current open market rental levels and can advise on the best achievable rent applicable, taking into account the condition of the property and market condition.

6. Agents are used to dealing and negotiating with clients to get the best deal for the landlord.

7. Agents are used to seeing all types of property and can often advise on the standard necessary to attract the best quality tenant.

8. Agents have access to existing tenants already in properties with good track records who for one reason or another want to move. Thus providing a more secure and reliable tenancy.

9. Agents are constantly working with a pool of renters and can easy match your property with the prospected tenants.

10. Agents who are members of professional bodies such as National Association of Realtors and California Association of Realtors are regulated and have ongoing training in respect of current legislation and changing areas within the business. In essence, these particular agents are accountable and always endeavor to carry out in a professional and ethical manner.

11. Lastly but very importantly is that agents spend much time showing the property generally after hours and weekends. Many phone calls can be taken on a particular property and sometimes can be very upsetting by over sensitive or demanding tenants. Agents are used to this behavior and take it in their stride.

It is very important to hire an agent who is experienced and specialized in rental properties. I work with landlords and investors on renting, buying and selling investment properties. For more information, please contact me at (626) 922-8408.