Caroline Tsou Chai

With the rapid price drop and low interest rate, is this the time to purchase a home? Here is a list of 4 types of buyers who shall not consider buying now.

1. Older couple downsizing. It is financially more favorable to do downsizing when the market is going up.

2. Buyers with unstable future earning. Those buyers shall wait until their financial situation stabilized.

3. Short term investors who want profit in 1 to 2 years.

4. Buyers with high debts and poor credit. It is best for those buyers to focus on reducing debts and improving credit first.

On the other hand, buyers with stable jobs, credit score over 680 and at least 10% down payment shall consider buying. Here's why:

1. Large selection of inventory.

2. Low interest rate.

3. Tax advantages.

If buyers wait until the market turn around to make a purchase, the number of selection and interest rate may not still be favorable.

Also, you can not tell whether the buyer is making money or losing money until the house is sold in the future. As long as the buyer is living in the house long term and enjoying the ownership, chance of making money long term in real estate is still in buyer's favor.

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.

Most agents do not like to work on short sales for the fact that short sales are 2 to 4 times more paper work and less pay. Here's why:

1. In a regular sales, agents deal with only one principle, the seller. In a short sales, agents are dealing with multiple principles including the seller and the lenders - 1st, 2nd trustee and/or 3rd trustees.

2. Since seller will net zero profit on the sale, lenders are the ones who are actually paying the sales commissions. In a short sale, lenders are suffering financial lost already and most of them cut agent's commission to approve the short sales.

Despite of the common judgement, most sellers like to hire an agent that is most popular in the area. However, those agents are not nessasary the best candidates for short sales homes. Most popular neighborhood agents prefer regular sale over short sale for more pay and less work.

Ask your agent how long it will take to secure an offer on your house. If the answer is 7-10 days, most likely you are dealing with a very experienced short sale agent. If it is 30 days, 90 days, 120 days or I don't know, it will not be a good idea to hire those agents since they do not understand the urgency and nature of the short sales. You can find out why with my blog on "Four Stages of A Short Sale Transaction".

I just recently closed a short sale transaction that had 3 loans on the property. By the time the house was sold, my folder is 4 time thicker than a regular sale.

Despite of the amount of work (and less pay), it is very fulfilling to know that I helped the seller resolved a fiscal problem in a financially responsible manner.

If you are looking for an experienced short sale agent to help selling your home, I will love to have an opportunity to have an interview with you and tell you more about what I do to get your house sold quickly. Please call me 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.

If you short sale your property before end of 2009, your will not owe any income tax on the amount that is short for primary residence.

Suze Orman explaining the new tax rules for short sale. Please click on the photo below to view it.