Why Should You Use a Real Estate Agent?

So often I hear from potential buyers that they prefer to not use an agent because they can do "everything" themselves online. With all the real estate websites available today this is true, to some degree.

Of everything posted on the internet, most is not carefully monitored nor does it have a 'code of ethics'. People always warn of social media site users of protecting their identities and whatnot, but the same goes for real estate websites.

I have many tech-savvyy clients who enjoy searching various websites to make sure I am sending them everything currently available. I encourage them to be active in their search for a home, and the "do-it-yourself" action makes them feel more involved.

Often my clients email me several listings to which I graciously cross-check with our MLS and look to determine why I did not send it to them. 100% of the time there is a valid reason the listing did not come from me. Below are the primary reasons.

1. The house is sold or in escrow. Maybe it sold in 1995, which is why it is listed $174,000 below market value. If it is in escrow that means it is under contract with a buyer. Many websites are not updated and get their info from various sources.

2. The house was never officially for sale-- not sure where websites gather this information, maybe it was for rent, maybe it was seized by the bank, maybe it is an agent trying to get business.

I just had one of my clients find a house on a "for sale by owner" website. It was listed $147,000 below what it was listed 1 month prior by a legitimate agent. I cross-checked the tax records which had a different name as owner. To get the real-deal, I tried calling the "seller", of course, the number was disconnected, so I emailed him. He responded and said he was overseas and didn't want to pay the "20%" fees associated with having an agent [fyi- it costs about 7% in fees to sell your home]. He gave me his overseas number and an 800-number for his realtor here, a notable agent. Long story short, I called the agent directly from their # in our MLS, they had no knowledge of this and confirmed he was not the seller.

Attention buyers: You pay NOTHING for an agent's services, we are paid from the seller's proceeds. House shopping on your own without an agent isn't wise and can be a huge waste of time. Not to mention when you find your dream home will you know what to do to protect your investment? I'm here if you need me! 619-990-4192

10 Reasons to Buy a Home Now!

10 REASONS TO BUY A HOME
from The Wall Street Journal

1. You can get a good deal! This is a buyer’s market. Prices have come down quite a bit since the peak, 20-50% depending on the area. Prices have now been going up for 8 months. Could they fall again? Yes, they could, it is nearly impossible to time the bottom of the market but it doesn’t matter in the long haul.

2. Mortgage rates are incredibly low! You can get a 30-year loan for around 4.3%— this is a record low. Less than 2 years ago interest rates were around 6.3%. This drop lowers your monthly payment by 1/5th. If inflation picks up these rates will disappear. If have deflation you can refinance.

3. Tax Savings! You can deduct your mortgage interest from your taxes,

4. It will be YOUR home. You can remodel whatever you want. You can paint to your liking. And most of all, you are earning equity in your home every month.

5. You’ll get a better home. Do the math between renting and owning, it is quite possible you can afford to buy a nicer home than you can rent.


6. Owning offers some inflation protection. This concept isn’t perfect but studies by Case-Shiller and other economists suggest that owning property, over the long-term often beats inflation by a few percentage points each year.

7. It’s risk capital. Your home isn’t a piggy bank or the stock market and shouldn’t be bought as a means to get rich, but in a few years your home will be worth more than it is today. Equity in your home is another way of linking part of your portfolio to the growth of the economy.

8. It’s forced savings. If you can save $400/month by renting instead of buying will you save the $400 for your future? Probably not. If your mortgage payment pays a portion of the principle you are in return paying yourself and building equity.


9. There is a lot to choose from. While most of the “great deals” are short sales in San Diego there are tons of homes to choose from. At the time of writing this we have 182 detached houses and 62 condos on the market in 92106 and 92107.

10. Sooner or later, the market will clear. Economists say the recession is over and housing prices have been slowly creeping up for 9 months. Will it dip again this winter? Maybe, but with interest rates this low now is the time to buy!

Questions?
Wonder what is for sale in your neighborhood?
Call us ~ we are here to help!
(619) 224-7249

Positive Real Estate News

The real estate market has continued its upward turn month over month and now the median price has continued its rise as well. San Diego saw a 13% gain from November '09 to December '09 which is one of the largest gains since 1988.

Rumors continue to spread that the worst is still yet to come when the banks release their "shadow" inventory and a wave of foreclosures hit the market, but insiders say this is not the case. Bank foreclosures representitives say they will continue to disburse a "trickle" of foreclosures similar to what we have seen for the past several months.

One new change is with FHA loan guidelines which will make FHA condo complexes jump through hoops to gain approval.