Issue #209
In This Issue
Welcome / This Week's Special Offer
Welcome To The Latest Issue
Hope all’s well with you. Monday, I actually got a call from a producer on ABC’s Nightline. They’re doing a story on real estate and will be in town next week covering San Diego and may interview me. I’ll let you know if that happens. One thing for sure, my 86-year-old mom would sure be proud…
True Story: Here’s Another Way To Buy A House
Did you see the article in the San Diego Union on Monday about the guy who’s trying to trade a paperclip for a house?!? Very interesting. Check out his blog… http://www.oneredpaperclip.blogspot.com/
Interested In Positive Cashflow Apartments With No
Management Hassles?
Well, you missed the seminar last night, which was another raving success with many people interested in investing. If you have $100,000 to $3,000,000 to invest and want to find out more...Call me at (858)457-KENT or CLICK HERE for info on the Positive Cash-Flow Apartments
FREE MLS Online Search For A San Diego or Riverside Home
To search for a home right now, click here: Free MLS Homesearch
FREE Guide: "How To Buy A Home In San Diego"
Knowledge + Action = Power. So expand your knowledge, take some action, & order this free guide. You'll discover:
- How to find the right home & best loan
- An easy strategy to persuade owners to sell you there home for $1,000s less
- Make a strong "cash offer" even if you're getting a home loan
- 5 questions you MUST ask your lender before you sign anything
- Other homebuying secrets that may surprise you!
Call (800)748-1340 to have this sent to you FREE via mail. Call 24 hours / 7 days a week; free recorded message. It should arrive at your home within 72 hours. (Reminder: Due to cost, these free items are available only to residents, owners, and people planning to purchase real estate in San Diego County.)
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Subscribe them with a quick email to TellAFriend@GaryKent.com with their email address in the subject line.
Remember to email your questions, comments, compliments, corrections, critiques, & rebuttals to Questions@GaryKent.com.
Gary's Real Estate Seminars
(Check back for future seminars)
Homebuying Question
"We're ready for a bigger house, but I don't know how to go about this. I
don't want to sell mine until I've got another one, but I have to sell to get
the money to buy the next one. How do people do this?"
***ANSWER:
I hear this question all the time. I see you with 5 options:
1. Buy non-contingent
2. Buy contingent, then sell
3. Sell contingent, then buy
4. Sell non-contingent with rentback, then buy
5. Sell non-contingent, move out, then buy
OPTION #1: Buy Non-Contingent
Buy a home, then sell yours. You can do this if:
A. you already have down payment money for a new home
B. you can find the money, possibly as a gift from family
C. you borrow against your home for the down payment
(this could be an equity loan or a short-term "bridge loan")
D. you can buy with zero-down financing
OPTION #2: Buy Contingent, Then Sell ***Worst Option***
Do the fun part first. Househunt and find a home, offer contingent on your home
selling, get it accepted, then sell your home. Downside: Sellers hate contingent
offers! So you pay a premium to get a seller interested, then you rush to sell
your home, probably for less money.
OPTION #3: Sell Contingent, Then Buy
"Scout" the housing market. Like what you see? Then list your home contingent on
buying a home. Once you have a buyer, find the home you want and offer
contingent on your home sale closing. Then close both transactions.
OPTION #4: Sell Non-contingent With Rentback, Then Buy
Sell your home with a rentback period, then buy contingent on your closing. The
rentback gives you some time to close on your new home. But you may have to move
out & rent if it takes too long complete a purchase.
OPTION #5: Sell Non-contingent, Move Out, Then Buy
Don't mind a double move? Sell your home non-contingent, then buy. If you're
lucky, once your home is in escrow you'll find a home and close both at the same
time and avoid a double-move.
All these options have risks if not handled 100% correctly. A family I know did
#3, but their agent messed things up. They were forced to sell and move out even
without having a home to move to. They ended up renting for 7 years! Also, the
standard contracts contain dangerous language for Options #2 & #3.
If you'd like to sit down and discuss with a professional your needs and
determine which is your best option and how to make it happen, call me at
(858)457-KENT.
"I’m thinking of selling my home and buying a bigger one. And I’m concerned about asking the right price. Everyone talks about list price, sales price, CMA, appraised value, etc. But what is a home really worth?"
***ANSWER:
Great question.
Tuesday a young man told me his condo had just appraised at $460,000. But the only sale of his model (virtually identical) in his complex this year was at $420,000. And other near-identical ones are currently LISTED at $420,000 and below and haven’t sold. Appraised at $460,000, but valued at $415,000 or less. Properties are certainly NOT always worth what they appraise for.
Let’s try taking a look at Fannie Mae’s (Federal National Mortgage Association) definition of market value per their residential appraisal form…
“DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.”
Eccch. I don’t know about you, but that makes my brain hurt. Here’s a definition I like, and it doesn’t take 5 minutes to read:
“The price a willing buyer and willing seller agree on in an arms-length transaction after full exposure to the market.”
But here’s the Catch-22.
If you want to find out “what a willing buyer and willing seller would agree on in an arms-length transaction after full exposure to the market” before putting your property on the market, you need a skilled appraiser or agent to help you determine the value.
If you’re thinking of selling and you’d like a pretty darn accurate estimate of your home or property’s, call me at (858)457-KENT.
Investing or Financing Question
"Hi Gary. My wife and I want to buy an investment property. We want to conserve our cash, so we plan to borrow against our home. Can you tell us the difference between a home equity line, an equity loan, and a HELOC?"
***ANSWER:
A home equity LINE (aka HELOC, as in Home Equity Line of Credit) is an open line of credit against your home. The balance goes up and down as you borrow and repay the funds. The line can be open with a zero balance.
A home equity LOAN is simply a first or second (or higher) mortgage that starts at a set amount. You take all the money at once. It typically must be repaid monthly, and once it's paid in full the loan is paid off and done.
Home equity loans usually are taken out for a specific purpose: remodel, debt consolidation, investment, etc. Home equity lines may be taken out for similar reasons or as a way of having rainy day money available if needed in the future.
Hot Properties: Call Now On These Hot New
Listings & Not-Yet-On-The-Market Properties
|
THIS WEEK'S FEATURED PROPERTY! | |
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Cozy Clairemont Home Clean, upgraded, well-maintained 3 BR/2 BA
home w/ beautiful backyard
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For information on other beautiful Clairemont Homes Click here. | |
"COMING SOON"
(Click Contact Me to be contacted BEFORE these properties hit the market!)
- Lemon Grove – Remodeled 1700sqft home on over 1/4 acre. Quiet street, 2-car garage, stunning kitch. 480-520K Contact
Me
- North Park – Duplex: 2BR + studio. Ideal to live in one & rent the other. Should be under $500K… Contact
Me
- Pacific Beach – Duplex: 3BR/2.5BA + 2BR/1BA + 2-car garage. Walk to the bay, bike to the beach! In the $900’s. Contact
Me
- University City – Stunning & spacious “west end” home on quiet street w/ lovely views. Details & price to follow. Contact
Me
- USD/BayPark – New 3BR/2BA condo conv, 4 available, owner will remodel & decorate to you specs! 499-549K Contact
Me
NEWLY LISTED (Your Home Here!)
- Scripps Ranch- Handsome newer home
on quiet street! Offers 19' ceilings, travertine, hdwd floors, family room.
700-750K. Contact
Me
- Bonita area – Cute 2BR/2.5BA condo w/ oversize garage, inside laundry, FPL, tennis. Walk to Plaza Bonita: 355-375K
- Carlsbad – Newer 1766sqft, 3BR/2.5BA “Harbor Pointe” home on culdesac near beach. Remod kitchen w/ granite. 695K-705K Contact
Me
- Clairemont – Cute, clean 3BR/2BA home w/ 2-car garage, FPL, dbl-pane
windows, lots of upgrades, nice yard: 475K-525K
Contact
Me
- La Jolla – Cute 2BR/2BA condo end unit. Offers hardwood floors, new carpet, xtra windows, security garage: 430-470K Contact
Me
- La Jolla – Newer 2BR/2BA condo, heart of downtown La Jollawalk to shops, restaurants! Marble, granite. 650-725K Reduced! Contact
Me
- Mira Mesa – Sunny 2BR/2BA top-floor corner/end unit w/ redone kitchen, dbl-MBR floorplan, large patio, quiet location: 315-335K
- Mission Hills –6251 sqft view homesite on culdesac! Ready for you to build your custom home. Great area. Price cut to 229K!
- Mission Hills –7500 sqft view homesite on culdesac! Ready for you to build your custom home. Great neighborhood. 239K! Contact
Me
- Mission Hills –7500 sqft view homesite on culdesac! Ready for you to build your custom home. Great neighborhood. 239K! Contact
Me
- Mission Hills – Build your dream home on this 9500 square foot buildable view lot. Price cut $96,000 to just $249K!
- Mission Hills - Attention Contractors / Developers / Investors! Build up to 11 homes on this 30,753 sqft canyon view lot. 849K!
- SOLD/Oak Park – 3BR/3BA house w/ ocean & fireworks view deck, remodeled kitchen, hardwood floors: 450-490K Contact
Me
- Ocean Beach - Stunning triplex w/ breathtaking ocean vu. Live in 3BR house, rent 2BR & 1BR units for income. $1.395M-1.495M.
- Pacific Beach - Development Opportunity! 3BR home, approved plans to build 2 condos. Resell or rent. Reduced: 775-850K
- Pacific Beach - 5BR/3BA “Harbour Heights” home on culdesac. Family & bonus rooms, a/c, FPL, 3-car garage! 960K to 1.06M
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SOLD/Phoenix, AZ - 30 apartments, large 3BR & 2BR units, well-maintained complex, Mesa area. Do a condo conversion? $2.1M.
- Phoenix, AZ - Cashflow apartments, zero management, 15% under-market!. 1031 exchange OK. $100K to $2M down.
- Vista –Secluded hilltop 4br/3ba, 3000sqft newer home on 1/2 acre! 3-car garage, panoramic views, more! $749,999-$799,999
Call me at (858)457-KENT to find out more or arrange a private showing...
Thank you Darryl P. for referring
a friend to sell her home…
Thank you Cara B. for referring your landlady to sell a home…
Have a great week...
"The Agent You See EVERYWHERE"
All-Time #1 Agent/Team In San Diego County for RE/MAX
22 Years Experience -- 3,000+ Homes Sold
Gary Kent Team --- RE/MAX Associates
(858)457-KENT --- (858)457-5368
GaryK@GaryKent.com -- http://www.garykent.com/
Due to production and shipping expense, free items are available only to residents, owners, and people planning to purchase real estate in San Diego.
