• Welcome / This Week's Special Offer
• Gary's Real Estate Seminars
• Homebuying Question
• Homeselling Question
• Investing or Financing Question
• Hot Properties: New Listings BEFORE They Hit The Market
• Thank You For Your Referrals

Welcome To The Latest Issue
…Associated Press interviewed me Wednesday for an article appearing in BusinessWeek.com, blogs.WSJ.com, biz.Yahoo.com, etc. The article says foreclosures were down in May…but they’re headed up.

Thought San Diego prices were getting pretty cheap? You were right! San Diego home prices are 21% undervalued according to a study by the respected thinktank Global Insight, as reported in the San Diego Union. (More info below in Top 10 list)

…Maybe it’s not a good idea after all for the feds to borrow and spend like crazy. This week mortgage rates jumped up more than a full %, from 4.5% to over 5.5%. The increase is due to the government selling T-bills (i.e. borrowing money) in unprecedented amounts, vacuuming up much of the available cash out there. Basic supply and demand tells you that when the demand for cash increase, the price of it (i.e. interest rate) goes up.

…Follow me on Twitter or become a Facebook fan. I now have 101 Twitter followers and 28 Facebook fans.

…Escrows are failing everywhere as appraisers come in below value and loan underwriters demand crazy repairs. (One required the carpet be cleaned!) With the mortgage meltdown, they’re all running scared, afraid their names will be on loans that go bad, causing them grief--or loss of employment. And a new law to stop inflated appraisals says mortgage brokers can’t pick the appraiser. With no downside to a low appraisal (they get paid either way and won’t lose business) many appraisers are playing it safe, coming in low, and torpedoing home sales.

…You read last week about Realtor Vinny Manguyen who handles foreclosures on Oakland’s meanest streets. When I asked him about local crime, he proudly shared this iPhone photo of him in Kevlar a bullet-proof vest.

FHA & The $8000 Tax Credit
This is not as beneficial as hoped. It looks like FHA will not allow 100% financing using the $8,000 credit. FHA/HUD recently published Mortgagee Letter 2009-15 that says:

• - The credit may be applied to Closing Costs ONLY - a 3.5% down payment is still required



• - IRS may deduct from the tax credit: unpaid student loans, tax liens and garnishments.



• - These are only available in conjunction with Bond Loans (administered by State or Local Agencies).

Top 10 Most Undervalued U.S. Real Estate Markets
According to Global Insight, the average U.S. home is now 12.2% undervalued. Here are the most undervalued U.S. home markets:

Find Out The Value Of Your Home Or Rental Property FREE — Right Over The Phone
Considering selling? Now you can quickly, easily find out today's value of your home or other San Diego County real estate, right over the phone. Call and tell me about your property. I’ll research the market and arrive at an honest, realistic price you can expect to get in today’s market. Need a more accurate figure? Ask me to come by. For your free over-the-phone or in person evaluation, just call me at (858)457-KENT. Please tell a friend…

Join Our Preferred Client Group For The Best Values
I find great real estate deals every week. But too often we cant match a client in time and someone else scoops it up. (My bank-clients wont let me buy their properties, or I'd be my best client!)

So I developed my Private Client Group, a select group of people serious, qualified, and ready to grab a great deal on a home or investment when -- or before -- it hits the market.

If you'd like to be in the Preferred Client Group, you need to:

1. Pre-approve with our approved lender
2. Come in for a short sit-down counseling session
3. Commit to work with us

To join and get the jump on the best real estate values in town, call us at (858)457-KENT or email us at PCG@GaryKent.com.

Check Out Our Foreclosure Hot-List
Looking for a deal? 25+ of my REO (foreclosure) properties have discounts of 10% to a whopping 49% from their previous values. Click on www.Foreclosure-Hotlist.com to check  out my brand-new Foreclosure Hot-List website. We'll update the site regularly, so be sure to bookmark it and return frequently. And forward this link to a friend!

FREE MLS Online Search For A San Diego or Riverside Home
To search for a home right now, click here: Free MLS Homesearch.

This Week’s Free Offer:
FREE Guide: "How To Buy A Home In San Diego, 2009"
Knowledge + Action = Power. So expand your knowledge, take some action, & order this free guide. You'll discover:
- What you need to know about buying an REO or short sale
- Step-by-step, how to find the right home & best loan
- Determining how much home you can afford
- Why you may NOT be pre-approved even if you think you are
- Key tips on buying foreclosures
- If a real estate agent does this, RUN!
- An easy strategy to persuade owners to sell you their home for $1,000s less
- 5 things you MUST ask your lender before you sign anything
- 6 smart house-hunting tips
- 7 questions to ask BEFORE you make your offer
- 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.

Send This Free Newsletter To A Friend
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.

FREE Seminar @ UTC Mall – August 1, 2009:
"How To Buy A Foreclosure In San Diego"
Fantasy vs. Reality: Discover the truth about foreclosures/REOs
-- Saturday, August 1st, 10AM-Noon --
Click for Seminar Flyer / Click to Reserve Your Free Seat

When you attend, you'll discover the truth about:

• NEW: I’ll be just back from the two biggest industry foreclosure conferences w/ the latest insider info!
• NEW: Bailouts, loan “mods”, foreclosure moratoriums...what’s REALLY going on right now w/ REOs?
• How homebuyers can put just 3% down & investors put 10% down on some REOs w/ no PMI or appraisal costs
• Top 10 San Diego neighborhoods with the best REO deals today
• How much banks negotiate off their price
• 5-step plan to getting a great value on a foreclosure in 90 days
• Wise, timely words millionaire Baron Rothschild said in the 1800s
• Traps in the small-print that banks make you sign
• The #1 mistake people make when offering on an REO
• How to get banks to pay EVERY PENNY of your closing costs
• Auction tricks, traps, and pitfalls that I swear will shock you
• Free email access to undervalued & foreclosure properties
• The ugly truth about short salesand it IS ugly
• What to watch out for in an REO
• Much more

"We’re trying to decide if now is a good time to buy a home or if we should wait. What do you recommend?"

Answer:
Disclosure: As an active Realtor helping people buy and sell homes, it’s in my self-interest to suggest you buy. (But I wouldn’t intentionally steer you wrong.)

That being said, I believe that YES, 2009 is a good time to buy now. In fact, it may be the best time in the last 6 years, and going forward.

Here’s why:

Prices are down tremendously in San Diego, 20% to a whopping 60% from the peak depending on the neighborhood. Even down a mind-bending 70% in certain condo complexes. Hard to tell if they’ve bottomed, but even harder to time any market and buy at the exact bottom. I’ve never been so lucky.

Also, interest rates are extremely low now, especially for loans up to $697,500. But they won’t be this low forever. You can bet that all the highly inflationary government spending will push interest rates up once the economy recovers. Many experts predict higher rates by the end of next year.

"Can I just sell my home As Is and not have to make any repairs?"

Answer:
Try this fun game:

Ask your significant other, “Do you promise you won’t get mad if I tell you something?” If they agree, then say, “Those pants make you look really f—a—t.” After the yelling subsides and you’ve slept on the couch a couple of nights, ask why they broke their promise. Their response will be, “Sure I promised, but I didn’t know you were going to say THAT.”

So if you can’t trust your significant other to keep a promise without knowing the details, why would you trust a stranger?

My point:

Even if you get a buyer to agree to take a home “As Is”, it’s almost impossible to legally bind them to it up front. And if they agree in good faith to buy As Is, they’ll usually ask for some repairs, saying, “Yes, but I didn’t know about these problems when I agreed.”

As Is sounds like such a simple and easy solution.

Many agents valiantly promise this to their clients, only to disappoint them later.

If you hire me to sell your home, part of my job is setting realistic expectations. I’ll advise you that making a few repairs is a normal part of selling a home today. When we get a repair request, we look it over and sensibly negotiate it. Then we offer a credit or have the repair made, and close your escrow.

By the way, there’s another downside to marketing your home As Is.

“Hmmm, what’s wrong with the home that they don’t want to fix?” wonder many buyers and their agents. Logical or not, I’ve seen buyers pass on a home just for this reason.

I’d like to tell you the magic bullet is just saying, “Sold As Is.” But it isn’t. If it was, everyone would do it.

"I’m looking at a home that needs lots of work. Is it possible to get a carpet allowance so I have some of the money to take care of the work?"

Answer:
Great question.

It amazes me that every few weeks a supposedly professional real estate agent will send me an offer asking for a “carpet allowance”.

Lenders do not allow credits for “carpet allowances” or any kind of repair or upgrade. Lenders only allow credits for actual closing costs. You can’t call it anything else.

Possible exception: VA allows the seller to pay off some of the buyer’s debts.

THIS WEEK'S FEATURED PROPERTY!
	Lovely Clairemont Home BR/BA: 3/2 Sqft: 1,566 Price: $399,000 - $439,000
– Clairemont – This lovely "Mount Street" home sits on a quiet street close to shopping, dining, school, bus routes, & the 805. It offers family room, living room w/ gas/wood FPL & skylight, newer carpet, newer exterior paint, grassy backyard w/ fruit trees (orange, loquat, lemon), sprinklers & more! View Info

Coming Soon
(Click Contact Me to be contacted BEFORE these properties hit the market!)

– Chula Vista – Foreclosure! Great starter home on generous lot. Walk to schools. Contact Me
3BR/1.5BA, 1042 sqft
Recently appraised @ 370K >>> To be low 200s?
– Chula Vista – Foreclosure! Enjoy southerly views, designer pool/spa, & more from this spacious 2-story home. Contact Me
4BR/2.5BA, 2394 sqft
Last sold @ 665K >>> To be 400s?
– Chula Vista – Foreclosure! Spacious home on large 9300sqft lot, 4BR/2BA, 1600 sqft, plus detached room/granny flat! Contact Me
Last sold @ 507K >>> Now 300s?
– Clairemont – Friendly home on quiet street offers family room, gas/wood FPL, newer carpet and exterior paint, more. Contact Me
3BR/2BA, 1566 sqft
Value range $360,000 to $400,000!
– Clairemont – Foreclosure! Fixer-upper 4BR/2BA house needs lots of help. No garage, large lot. Contact Me
4BR/2BA, 1635 sqft
Last appraised @ 489K+ >>> Now low 300s?
New – Downtown – Foreclosure! "Palermo" studio/1BR loft w/ private patio. Complex has pool/spa, fitness, business ctr. Contact Me
1BR/1BA, 860 sqft
Last sold @ 354K >>> Very low 200s?
New – Eastlake Area – Foreclosure! Spacious newer home w/ panoramic Otay Lake & mtn view, granite, hardwood, 3-car garage. Contact Me
5BR/3BA, 2578 sqft
Last sold @ 725K >>> To be 400s?
– Eastlake Area – Foreclosure! Spacious, alluring 2005-built “Winding Walk” detached home w/ 2-car garage. Contact Me
4BR/3BA, 2375 sqft
Last sold @ $514,500 >>> To be 300K?
– Eastlake Area – Foreclosure! Handsome 5-year-new Otay Ranch detached home w/ 2-car garage on culdesac. Contact Me
3BR/2.5BA, 1718 sqft
Last sold @ $439,500 >>> To be 200s?
– Eastlake Area – Foreclosure! Stunning 3-year new single family home 2 blocks to new Otay Ranch Town Center. Contact Me
4BR/3BA, 2342 sqft
Last sold @ 625K >>> To be 300s?
– Encanto – Foreclosure! Light & bright 1-story w/ FPL, bay window, 2-car garage, large 1/4-acre lot. Built 1980. Contact Me
4BR/2BA, 1438 sqft
Recently appraised @ 325K? >>> To be 200K?
– Encanto – Foreclosure! Remodeled home w/ city views, 2-car garage, more. Contact Me
3BR/2BA, 1247sqft
Last sold @ 358K >>> To be 200s?
– Encanto – Foreclosure! Four units w/ lots of parking. Near trolley, shopping, schools. Contact Me
Last sold @ 510K >>> Now low 300s?
– Lakeside – Foreclosure! Dirt-cheap condo ideal for investor or first-time homeowner. Contact Me
2BR/1BA, 728 sqft
Appraised @ 131K+ >>> To be in the 80s?
– Mission Valley – Foreclosure! Cute end unit condo in “Mission Plaza” near 24-hour Fitness, Qualcomm, trolley. Contact Me
2BR/2BA, 931 sqft
Recently appraised @ 333K >>> To be high 100s?
– Mission Valley – Foreclosure! Affordable 1BR condo in west Mission Valley, 5 minutes to Fashion & Mission Valley malls. Contact Me
1BR/1BA, 700 sqft
Recently appraised @ 175K? >>> To be low 100s?
– National City – Foreclosure! Nice condo w/ garage, tennis, community pool. Near Plaza Bonita center, 805, & 54. Contact Me
2BR/1.5BA, 1080 sqft
Last sold @ 320K >>> To be low/mid 100s?
– Nestor – Foreclosure! Beautiful 4-year-new “Spinnaker Point” attached home with 2-car garage, canyon/valley views. Contact Me
3BR/2.5BA, 1400 sqft
Last sold @ 405K >>> To be 200s?
– Pacific Beach – Foreclosure! Beach house w/ private backyard, California room, 2-car garage. Contact Me
2BR/2BA, 1400 sqft
Last sold @ 700K >>> To be high 500s?
New– Rancho Bernardo – Foreclosure! Sharp house on culdesac w/ red tile roof, 8494 sqft lot, big yard, views, a/c. Contact Me
3BR/2BA, 1727 sqft
Last sold @ $575,000>>> To be low 400s?
New– San Marcos – Foreclosure! Huge home on a full acre zoned for horses & agriculture. Granny flat + 3-car garage. Contact Me
6BR/4BA, 3934 sqft
Recently appraised @ 873K >>> To be mid-500s?
– San Marcos – Foreclosure! 5-year-new townhome w/ 2-car garage in “Rancho Coronado” gated community near CSUSM. Contact Me
3BR/2.5BA, 1458 sqft
Last sold @ $441,500 >>> To be mid 200s?
– San Marcos / San Elijo – Foreclosure! 3-yr-new “Old Creek Ranch” home w/ spacious floorplan, view, great family area! Contact Me
4BR/3.5BA, 3090 sqft
Last sold @ $740,500 >>> To be mid-500s?
– San Marcos – Foreclosure! Affordable "Lake Park Villas" townhome. Near Restaurant Row & multiplex. Contact Me
2BR/1.5BA, 957 sqft
Last sold @ $221,500 >>> To be very low 100s?

NEWLY LISTED (Your Property Here!)

2003-built home on full lot. Offers bright & open kitchen, large bkyd, RV parking.

3 Bed, 1 Bath 902 Sqft Price: $137,800 Last sold @ 307K

Quiet, private, attractive view home on 1.23 acres. Meticulously maintained.

3 Bed, 2.5 Bath 1,448 Sqft Price: $270,000

Quiet, private, attractive view home on 1.23 acres. Meticulously maintained.

3 Bed, 2 Bath 1,322 Sqft Price: $329,900 Last sold @ $450,000

MORE GREAT HOMES & INVESTMENTS (Your Home Here!)

Enjoy desert peace and quiet from this cute house. Ideal home or weekend retreat

3 Bed, 2 Bath 1,380 Sqft Price: $119,900! Last sold @ 269K

Mint, just-remodeled canyon view townhome in quiet “FoxRun”. 2-car garage, high-ceilings, FPL, backyard.

3 Bed, 2.5 Bath 1,562 Sqft Price: $490,000-$530,000

Great starter home or investment on large lot w/ garage. Near 805 & 52 freeways.

3 Bed, 1 Bath 940 Sqft Price: $288,900 Recently appraised @ 465K?

"Palisades" home near Bay Ho. Offers new carpet & paint, nice yard, sunny bonus California room, dbl garage.

3 Bed, 2.5 Bath 1,876 Sqft Price: $490,000 to $540,000

Enjoy panoramic views from this cared-for 1-story home. Upscale neighborhood of high end custom homes. Address: 13625 Mira Montana Dr, 92111

2 Bed, 2.5 Bath 1,983 Sqft Price: $999,000 to $1,299,000

Gorgeous “Hard Rock” condo-hotel suite in the Gaslamp Quarter. “Rock Royalty” service & full hotel amenities.

1 Bed, 1 Bath 459 Sqft Price: $489,000! Last sold @ 589K

Great 4-yr-nu townhome w/ 2-car garage, ocean vu, balcony, in-unit laundry.

3 Bed, 3 Bath 1,336 Sqft Price: $176,900! Last sold @ 395K

Sharp 3-year-new townhome w/ 2-car garage, many extras.

3 Bed, 2.5 Bath 1,586 Sqft Price: $214,900! Last sold @ ???

Attractive home w/ updated vinyl windows, new interior paint, hardwood floors, more.

3 Bed, 2 Bath 1,649 Sqft Price: $234,500 Last sold @ 452K

Nice home w/ garage, quick freeway access, more info to follow.

4 Bed, 2.5 Bath 1,632 Sqft Price: $227,900 Appraised @ 595K+

9-year-new condo near I-5, UCSD, and Sharp Hospital. Quick freeway access. Great complex.

2 Bed, 2 Bath 1,102 Sqft Price: $360,900 Last sold @ $528,500

Great starter condo or investment in “Mission Heights” near Qualcomm & 24 Hr Fitness.

1 Bed, 1 Bath 667 Sqft Price: $105,000 Recently appraised @ 174K

Cute "Mission Heights" starter condo or investment near Qualcomm & 24 Hr Fitness.

1 Bed, 1 Bath 667 Sqft Price: $105,000 Recently appraised @ 174K

Enormous house on 9200 sqft lot. Ideal for very large family.

6 Bed, 3 Bath 2,203 Sqft Price: $450,000 Prev appraised @ 504K+

Remodeled 1987-built home w/ granite counters, FPL, spacious bkyd. Nice neighborhood.

3 Bed, 2 Bath 1,205 Sqft Price: $250,000 Last sold @ 505K

Eclectic "Flamingo House" in Pacifica: bonus room w/ bay view, big private bkyd, pool, spa, 3 FPL, more.

3 Bed, 2.5 Bath 2,290 sqft Price: $850,000 to $900,000!

Mid-century 1-level home w/ back-country views, 10 minutes to I-5, 3 acres, great street.

5 Bed, 4.5 Bath 3,375 Sqft Price: 1.69M-1.89M Last sold @ 269K

Giant .7 acre lot w/ cute house built in 1940. Incredible potential. Needs lots of TLC.

2 Bed, 1 Bath 898 sqft Price: $187,300! Last sold @ $472,500

Spacious manufactured home in Warner Springs Estates.

3 Bed, 2 Bath 2,037 Sqft Price: $115,900 Last sold @ 430K

Due to production and shipping expense, free items are available only to residents, owners, and people planning to purchase real estate in San Diego.

This free e-newsletter tells you how to be more successful with your real estate transactions. You receive it because you subscribed, entered your email address at my site(s), or were referred. By reading it, you agree you: 1) understand this is opinion & not advice; 2) will seek professional tax, legal, and real estate advice; 3) are solely responsible for use of content, 4) hold Gary Kent, Gary Kent Homes & Estates, Kent & Associates Inc., and RE/MAX Associates harmless. Questions may be paraphrased for clarity/brevity. Disregard this email if you have a listing or buyer-broker agreement.

Copyright 2009 Gary Kent, All Rights Reserved.