Hemet, CA

From where I sit as a REO Listing agent in the Hemet - San Jacinto Valley the California REO Market is finally starting to heat up. OK, it may not be sizzling, but I have seen more action in the last week than in a long time - both with buyers and my sellers.

Desperate buyers are still struggling to get into escrow to take advantage of the $8,000 tax credit that is scheduled to be pulled off the table for any escrows that don't close on or before November 30^th, 2009. That's only 61 days from now and our average time in escrow here in Hemet - San Jacinto, CA is currently 52 days for FHA loans, which are most of the first time homebuyers. My thought with the decline of the program escrow may get a bit busy toward the end of next month,

Not long ago the banks would come back with "highest and best" giving prospective homebuyers the opportunity to come back and up their offers in the hope of beating out the competition. It was not uncommon for five or more buyer to bid up to an additional 5% - 8% and even 10% over their earlier bids that were already over list price.

Well, laws changed. Policies changed and most importantly the appraisal process changed dramatically this summer. As a result of these changes, the banks found themselves going through the expense and trouble of renegotiating contract after contract.

So, now the banks are getting smarter.

No longer am I, as an REO Listing Agent, asked to solicit ‘highest and best'...the banks just want best! What this boils down to is the banks are satisfied with the list price as an appraised value - that is why they spend all the money on BPO's and appraisals before the property is ever listed in the MLS. So the value is a non-issue. Write your offer for list price.

What Else Can a Buyers Agent Do?

When educating your buyer clients, you as their agent, have a responsibility to educate them on the market condition and changes as they occur - not 3 months later.

The best offer is for all cash. No surprise, but more often than not most first time homebuyers don't have that much cash available.

A year ago we had a ‘Down Payment Assistance" program where it was almost expected for the bank to contribute 3% towards the buyers closing costs. Often times these costs were stacked onto the offer price, so in theory it was just a paper drill. Well those days are gone and to be honest, buyer should not be asking for any cash back from the seller towards closing costs or other concessions.

Listen, I understand that not everyone has a pile of cash to pay for all of this stuff - but at the risk of sounding politically incorrect let me just say that maybe it isn't time for your buyers to buy a home then. Home ownership is not for everyone and it is not a right. Whatever you do, don't call me and plead your clients case as if they are entitled...not if you want my help.

The next step to strengthening your offer and looking better than all the others hovering in the pack is to not ask for any money for repairs and waive your inspection contingency. Check the house out when you write your offer. Then while you are waiting to process the paperwork, bring in your father-in-law, your brother or hire a professional inspector - but due you diligence early on. Remember, you want your offer accepted...not negotiated.

Banks are starting to get away from home warranties. Not sure what happened, but I'm guessing that one of the banks got sued by someone who bought a REO home with a warranty and then there was a condition that was not covered...so I'm betting that the homebuyer might have been an attorney and turned around and sued the bank on some sort of ‘implied warranty' causing the bank to undertake some expensive repairs.

So do everyone a favor, just factor the three hundred bucks or so into your offer and pay for that yourself. It's $300 - don't turn that into an issue - be better than everyone else and get your offer accepted.

Same theory goes with the termite inspection. These are NOT required by many lenders...unless they are in the contract, than the underwriter wants to see the report and clearance. Especially if you are buying a home that is only a few years old. I have yet to see any termite damage in a home less than 5 years old. If you are wanting to buy an older home for sale by the bank - then get your diligence done before you ever go into contract...make it clean.

Now you Know What NOT to Do...What Can You Do?

If your buyer can't come in with all cash - up the ante. Increase the Ernest Money Deposit to the full 3.5% that they will need for an FHA Loan. This shows the bank you are serious.

Nearly every offer I see has a personal check. So, what is better? How can you separate yourself? How about a Cashiers Check? Absolutely and deliver it to the Listing Office. Let them know you are serious and not shopping for any house that will take them. Put your money where your offer is...in the hands of the listing agent.

Increase the total cash down, as well. Just because the minimum buyer contribution for an FHA Loan is 3.5% there is nothing that says you can't put down 4%...5%...or, (oh my gosh, do I dare say it) 10% or MORE! Stretch - no one ever said buying real estate should be easy...and if they did say it, they are not in business today!

The next thing you can do is get a GOOD LOAN. Lets be brutal here folks, FHA Loans and FHA Buyers are at the very bottom of the food chain. After Cash comes a good Conventional Loan with a hefty 50% down payment...even a 30% or 20% gets lots more respect than a government subsidized loan that rarely requires a single months income out of the buyers pocket. So I'll say it again...STEP UP and SHOW ME THE MONEY.

After the Conventional(even a 10% down Conventional loan ranks much higher than an FHA, VA or other exotic loan).are all of those exotic programs that give the seller the impression that they will take longer to close and that the buyer has the benefit of free taxpayer subsidized money and therefore they can or should be putting more skin in the game because it is just too easy for these buyers to get up and walk away (and it happens all the time).

The other big issue with FHA, VA and other exotic loan programs is they often require the seller to do some pretty expensive repair work, which is not adjusted for in the purchase price. The banks really would prefer to sell their inventory "AS-IS"

Other than cash buyers; it is understandably hard for a first time homebuyer in the Hemet - San Jacinto, CA Valley to meet all of these requirements. Please use this as a guide to best position your or your clients offer if you are serious about wanting to buy a new home in this or any other competitive real estate market.

Until Next Time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR®

This blog and the contents written here is the intellectual property of John Occhi, Hemet - San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community

Reflecting on how the real estate business model has changed since I was first licensed five short years ago really is amazing. The way I do business now is so much different from the ‘old school' business model that I was recruited into.

Perhaps the biggest difference is the website. Five years ago, very few agents had websites, let alone blogs or virtual tours or even IDX property searches. I would have to say that the website has had the greatest impact on our business as REALTORS®.

Today, we are not in the house finding business like we were five years ago. I was told that was my job when I started, but it is definitely not my job now. Today as a professional real estate agent in the Hemet San Jacinto Valley in the South Western Riverside County area of the Inland Empire region of Southern California my job is negotiating, writing solid contracts and being the eyes and ears on the ground to make certain that all the things that are suppose to happen, actually happen. These tasks will often include, but not be limited to, coordinating home inspections, working through both the mortgage and escrow process and all of the things necessary to close escrow and transfer ownership. My job today, continues after the close of escrow, to make certain that everything continues to move smoothly for the new homebuyer in CA.

FINDING THE HOUSE

The tech savvy consumers really does an excellent job of finding their own home on the Internet these days. The search portals today are more robust and featured than they ever have been before. Sorry to say, but finding the right house for buyers is low on the priority list of things that I do for my clients.

SERVICE

The real estate buyer today is looking for service. Technology has helped us, as professional real estate agents, to do a better job of communicating with our clients. We are better at being in touch - we answer voice mails and emails quicker than ever. We communicate with text messaging and broadcast via Twitter. Our cell phones are more powerful today than our desktop computers were five years ago.

Today real estate professionals truly are in the customer service business and the quicker we realize how to best service our clients the better we will be at our profession. Technology is good for the consumer and good for the agent. Technology is good for the industry as it will allow for better customer service and increase our sales and bottom line.

Well, this is just one REALTORS® opinion about the evolution of technology in the wonderful world of residential real estate.

Until Next Time, Have a Blessed Day,

John Occhi, Hemet - San Jacinto CA REALTOR®

This blog and the contents written here is the intellectual property of John Occhi, Hemet - San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

As an REO Listing REALTOR® in the Hemet - San Jacinto Valley portion of South West Riverside County in the Inland Empire Region of Southern California I come across some pretty strange things when I take possession of a property.

This weekend I approached a former homeowner who lost their home to the foreclosure process and now the bank wanted me to offer a cash-for-keys opportunity to help relocate the family from the bank owned REO home in the shortest time possible.

The basic rule is that the homeowner has to leave the home ‘broom clean' and all trash has to be removed from the house and yard. We also need to make certain that the appliances stay behind and that there is no additional damage to the property. This means I have to inspect the home, when we agree to the terms, which will establish a base line so when I return on the designated date with the check, the home is a similar - but clean condition.

INSPECTIONS CAN BE HAZARDOUS...OR HOW DO PEOPLE LIVE LIKE THAT?

OK, it is not my job to judge anyone - I'll leave that up to God according to His perfect timing. However, I am never amazed anymore.

The interior of the home was far from perfect, but all and all in tact. I made my notes on the clipboard, as I toured the home with an ah-ha and ummm at the appropriate moments. Again, when I am in this position it is all a delicate balance of empathy and establishing control.

I could not believe what I saw when I entered the 3-car garage.

First, the direct interior access garage fire door had been breached with a doggy-door for their pet German Sheppard. The whole purpose of that door is to stop a fire from spreading into the home. Not sure which is first or second but between the garage and the kitchen you have the source of at lest 90% of all home fires.

OK, it is no surprise, I'm sure that there were German Sheppard size land mines across much of the garage floor. I did comment that this would have to be cleaned out prior to their departure. "No problem", I was told.

On a workbench, located on the back wall of the garage, occupying all of the space between the interior garage door and the hot water heater in it's alcove, were numerous containers of household chemicals as well as solvents that could be used in a garage or shop environment. I did see some wood working tools as well as gardening power tools.

Unfortunately, not all of the containers were closed tight, as there were caps on the workbench. So this means these toxic and flammable chemicals were ventilating into the garage space. Under the work bench were a pair of 1-gallon gas cans. One of them had a dirty rag jammed into the spout.

I pointed this out as a safety hazard and was told that it's OK, there is plenty of ventilation. I looked surprised and did see a small vent on the side wall with daylight coming through it - but that was about it.

WHAT SHOULD BE DONE?

There are three important lessons here - four if you talk about the dog - but that is another story we'll save for another time.

First - the direct access door from the living quarters to the garage is a fire door and by code it has to withstand a fire for at least 20 minutes. The moment you open it up with a hold for any size pet you have added fuel to the fire and allowed it an easy path to the living space of the home.

Second - all household chemicals should be stored in sealed containers. Retail packaging is fine, so long as it is kept closed when not in use. Storage of these chemicals and solvents (paint, too) should be in a cool dry place and NOT a foot or two from a hot water heater with a pilot light!!!

Third - Gasoline should never be stored in a container with a rag in it. Can you spell D-I-S-A-S-T-E-R...How about F-U-S-E? A couple of other words enter my mind, but I am reminded that it is Gods place to judge and not mine - please forgive me.

Just for the record, gas cans should never be stored completely full - about 95% is fine. The fumes need a place to expand. Gas cans should never be in a hot environment over 80 degrees - that means the hot metal storage container on the side of the house - not a good idea in the Hemet - San Jacinto CA Summer where we have consecutive triple digit weeks in our summer.

So please, be careful.

Until Next Time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR®

OK, this morning I was turned on to a new tool that I find exciting and already have numerous applications for. The tool is simple to use and the best part is the tool is FREE!

OK, we can all agree we are in the age of communication. Right?

Old school communication is face to face. Although the most effective it is very time consuming and can at times be awkward or uncomfortable.

Next generation is the telephone. Much quicker, because there is no travel time to get face to face - but certainly can be time consuming if either party likes to gab.

Communication evolved in the mid 1990's to the advancement of email. No one can deny today the phenomenal affect that email has had on society in general and certainly in the real estate industry we breath email.

By the middle of the first decade of the 21^st century, email started to give way to text messaging and ‘Tweeting'. It is amazing how much info can be passed in 140 to 160 characters...or less!

Unfortunately a text doesn't always cut it and an email is not always practical. There are times when we just have to pick up the phone to relay important information. Many times when we start to dial, we are homing for the intervention of voice mail - or the ability to leave a message for the recipient. Thereby, we get to leave a personal message without having to endure a lengthy and sometimes uncomfortable dialogue.

SO WHT HAS CHANGED?

Up until today - I never knew that you could call in straight to a voice mail without the other parties cell phone ever ringing....Now, I know that numbers can be blocked, preventing others from obtaining your phone number to avoid future harassment but think about all of the reasons to call someone - leave a message without ever actually talking with them? Ohhh, just think of the possibilities...

... Not that I have a boss to call in to if I can't make it to work on time, but if I did...I could reach their cell phone voice mail as if I attempted to call, but had to leave the message...

...OK, lets say you need to contact a client and give them some unpleasant news. Oh I don't know...maybe the offer you wrote last weekend for the house your client wanted to buy - just like the 5 weeks prior was turned down by the bank. Now instead of giving the blow-by blow and hearing the frustration all over again you can get right in leave the details in a very professional message and move on to your next call. I guarantee you just saved 10 minutes...

...Here is another scenario that jumps to mind. I'm on my way to an appointment. Now I can be the professional I am and call to confirm that I am on my way and not give the other party the opportunity to cancel...

Maybe I need to call a family member with a reminder or an invitation but just don't want to or have the time to get sucked into a family gossip fest. So bam, make the call - leave the message and get on about your day. Heck, this might save an hour or more if you have family members like some of mine!

If I was single and dating there would be many uses for this, I'm sure...but I won't allow my mind to wander too far off tract - those of you who are single and anyone else please chime in with your own uses for this new tool.

SO HOW TO USE THIS GREAT NEW TOOL...

The free tool I plan on using in my real estate business and personal life is appropriately named ‘slydial'. There are two versions the free one and another for $2.95 a month or $29.95 for the year. You can also use the paid service for as needed basis at only a dime a use.

The big difference is when you use the free version you have to listen to a lengthy message about the service which I found very annoying. I suppose at some point there may be other advertising there as well. With the subscription your call goes straight through.

In quickly looking over the comprehensive list of FAQ I also realized with the subscription you can leave a voice mail as long as the receivers email will allow - with the free version you are limited to 90 seconds.

The final difference I could initially figure out between the subscription plan and the free version is that as a paid subscriber I can earn an incentive for helping others start to use the service. It is real simple if you like this and want a free month, then when you subscribe there will be a question about how you found out about the service - just select the "Friends and Family" Option and then add my email address - TheHouseSeller@GMAil.Com. The way it works is you get a free month of service and so do I. Nothing wrong with that, now is there?

So go to the website for the detailed instructions on how to either start using the service for free or step up to a subscription that works for you. I just know that after hearing the advertisement twice I was ready to pay. I do believe it is a very small sum that I will get a lot of play out of though...so enjoy and please let me know how you use the service - just leave me a voice mail...(or blog post and share with everyone else...)

This week I was Certified by the National Association of REALTORS® as an ePro. As a result of the training I received I am in the process of updating my technology plan - meaning I am looking at the tools I use for my Hemet - San Jacinto, CA real estate business. In many cases, I am ahead of the curve and my peers in my market - and in others I lack.

With that being said, I am looking hard at all of my current services to make sure I am getting the most bang for the buck. Today, I am considering changing my on line faxing solution. In doing my research, I came across what I found to be a useful website where detailed comparisons are made of some of the most widly used on-line fax programs.

So check this outfor yourself and see if you have the best tool on the market - for what you need to accomplish to keep up in this current real estate market.