Home Values - Who Do You Trust?

When you are sick, you go to a doctor! When your tooth hurts, you go to a dentist! And when you are ready to buy or sell your home and move, you call Laura. Probably the biggest question on the mind of every homeowner is “how much is my home worth”. You may be surprised to know there are several different ways you can find out: Here are some of them:

Free Online Estimates: Free appraisal sites offer quick estimates of home values based on analysis of publicly available information, such as tax records. However in my professional opinion these sites are very inaccurate.  I have put in addresses of properties in neighborhoods where I KNOW the values and I have never gotten a correct value!  STAY CLEAR!

Fee-Based Online Appraisals: Some online sites offer property valuation reports you can download for a fee. These are computer-generated analyses based on publicly available information, so they may be useful only if you don't want to spend time looking up records yourself. But once again, you do not want someone who does not know your living area to give you a general price quote!

Real Estate Comparative Market Analyses: Comparative market analysis, or comps, are reports prepared by real estate professionals that estimate a selling price for your house. They're based on the agent's knowledge of the area as well as asking prices and recent sale prices for comparable properties in your neighborhood.  Th

Home Appraisals: A full professional appraisal is a must if you're applying for a loan and is always going to be the most precise evaluation of your home's worth. Keep in mind that a good appraiser isn't in a position to profit from the appraisal, and his or her fee will be based purely on time and expertise.

Advice For Buyer's In A Seller Market

The market is crazy hot right now! How can you as a buyer in a seller's market reach the goal of homeownership?

With the high demand and low inventory, what can a buyer do to make sure they're getting the best price possible. How can they best compete with other offers?

The first thing buyers need to understand is they MUST NOT get over emotional. With so many people feeling desperate to obtain a home they are willing to offer well over asking on homes. I have seen homes go $60,000 over asking price, only to hit a major bump when it came to appraisal. Be patient, be wise. Have your agent run comps for the area before putting an offer in on a home and be comfortable if you are not the highest bidder at the time. I have closed a lot of "backup" deals because the first accepted offer did not close. Patience is key, if you are in RUSH at this time then it may not be time for you to purchase.

Do you foresee the current housing inventory issue lasting throughout the near future? In your opinion what circumstances would need to change to get the market out of this inventory crisis?

Unfortunately, I feel this market is going to continue to rise and buyers will be shut out with the current pricing trend. I believe SELLERS need to be more educated about putting their homes on the market. They need to understand that the "highest and best" offer is not always the best offer. In order for this market to change, sellers will have to see that buyers can no longer afford. Once that happens the offers will stop coming in and prices will be forced to drop in order for the buyers to afford the home of their dreams. At some point, the market is going to break and until money is not flowing it won't change.

How has the business of your real estate partners been affected? Are they doing anything different to combat it?

Deeper business relationships are happening. It is critical that all involved are on the same page. This includes Realtors, Lenders, Title Reps, Escrow professionals and even vendors. When all pieces of the puzzle are present it creates a unified front all with a single goal in mind to assist the buyers and sellers.

What steps would you advise a potential homebuyer to take when buying in this current market?

Patience and strategy! These two elements are a MUST. If you qualify for $400,000 then you must look at homes that are at least $15,000 to $25,000 under that asking price. This gives you room to play without going over your budget and pre-approval. Do not let emotions get the best of you. Bidding wars cause people to "lose their minds" and this could cause many problems down the line with the deal and with buyers remorse. Never buy ABOVE your means. What use is it to have a home if you can't afford it? You want your home to be a place of peace and wonderful memories.

What The Heck Is A Short Sale

Please note, this transcript is an abbreviated version of the video.

Hello Hello Hello my loves this is Laura Key, I am the Realty Goddess of Los Angeles California. I help "Establish the Community One House At A Time" and I have been in the business for 11 years.  I started my career in Colorado and now I am in Los Angeles. I have been in Los Angeles for about six years now and I was a Realtor in Colorado for five years. I love me some Denver. Denver is actually going through a big boom right now as well as Los Angeles. 

What the heck is a short-sale? You see them listed on the MLS sometimes and you hear that you can grab a bargain if you purchase one. Today we will discuss these issues and educate you on how these types of sales are processed.

The first thing to learn about a short-sale is that there is nothing short about a short-sale! What is actually short, is what the owner currently owes the bank compared to what the current market value is. If the home is upside down or less than what the current owner paid then the owner has to ask permission from the bank to sell the home at a loss.  There are many different reasons that people have to do a short-sale but it's typically centered around a hardship. Maybe the owner lost a job, lost a spouse, has to relocate for a job or has become ill and can no longer afford the home. 

Let's take a quick look at what a short-sale is and how it is processed so you can get a better understanding as a buyer so you can decide if you want to go for them as a purchase OR have a better understanding if you are in the seller role.

The number #1 rule is worth repeating...There is nothing short about a short-sale.

The first thing you want to do if you are the owner and have found yourself in a financial bind and you need to sell your home but you cannot pay off the full mortgage, you must contact your financial institution immediately. Let them know the situation and tell them you are interested in doing a short-sale. The majority of financial institutions have short-sale packets ready for you to fill out. The more pro-active you are the more chance you will have in selling your home as a short-sale. These packets can be very tedious and frustrating because it's a lot of paperwork and a lot of writing.

Here is typically what you are going to be asked for: two years worth of taxes, a hardship letter that explains why you need to sell, 3-6 months of pay stubs, 3-6 months of bank statements.  If you don't have any of these items, you must write a note as to why you do not have theses items. Simply saying "I don't have them" will not work. Write it out and put it in the packet. Your hardship letter needs to explain exactly why you are having a hardship. Keep it simple and to the point, there is no need to write a book. My advice is to have all of these items completed BEFORE you list the home. Your real estate professional can help guide you on this.

Your home will be marketed just like a regular home for sale. We will have open houses, we will advertise, we will have showings. Once that has been completed and we have an offer or offers, we choose the best offer to accept then prepare to present it to the bank. I must stress that a COMPLETE short-sale packet must be sent to your bank or it can cause problems. It will be the ultimate decision of the bank if they will accept the offer or not. Most likely they will respond to what "their" terms will be for any potential buyer. It takes about 45 to 120 days for a short-sale to be completely processed. 

To the buyer, short-sales are not always easy, you are going to have to be patient. If you like that house and you want that home then you must be patient while this process is going on. Unfortunately, an agent is not going to be able to update you daily, but a good agent knows that they must talk to the bank at least twice a week to keep the short-sale moving smoothly.  I typically give all parties an update once or twice a week as I get them.

Are short-sales always a good deal?

Some are and some are not. It also depends on the market itself. We are in a seller's market (May 2017) and this means inventory is low so ALL homes are being considered by many buyers. You will find multiple offers even on distressed sales.  Sometimes being a backup offer on a short-sale can benefit you because nine times out of ten the writer of the original winning offer is no longer interested. 

How does a short-sale affect your credit as a seller?

Short-sales are not as bad as a foreclosure on your credit. If you keep your credit clean after your short-sale, you may be able to buy again after two years. Short-sales are reported on your credit. It will affect your credit score.

I always advise if you are in trouble with your payments, please contact your financial institution as soon as possible and inquire if a short-sale is for you. In the long run it's going to be better for you and your future home buying.

For more information about short-sales or any other real estate topic please reach out to me and I will help assist you!