Chesni’s Blog

I’ve added a few new websites with great searching tools for those interested in searching the MLS on your own. These sites use the all too-familiar Google map user interface, which makes searching fun and easy. Register on the site for added features and benefits such as saving your searches for future review and RSS access through your favorite RSS reader.

The sites are:

www.moveme2southbay.com

www.moveme2redondobeach.com

Bookstores are full of books purporting to help people “buy foreclosed properties at discounted prices”. An equal number of websites promise bargains in hot markets, or promote “lists of properties in foreclosure” for a fee. In reality, there are good buys for those who are willing to work at it, but the process of locating properties and working through the legal and emotional entanglements is not for the faint hearted.

For those hoping to find a true bargain in real estate by purchasing a foreclosed home at auction, there are some important points to keep in mind.

Finding Properties to Purchase

• Statistics have often shown that a very low percentage of recorded NODs/Trustee Sales result in the owner actually losing the home to foreclosure. Consequently, there are plenty of agents and professional foreclosure specialists seeking the same properties. In fact, the auctions are full of “bottom of the barrel” properties - the left overs of savvy investors that picked up the good ones before auction.
• NOD/Notice of Trustee Sale lists are available from information service providers or in adjudicated newspapers where they must be published before a sale can take place. Prepare to spend several hours a week doing research of public records and act fast.
• Ask your professional sphere of influence (such as mortgage brokers, attorneys, insurance agents, tax specialists, and accountants) to keep an eye out for possible foreclosure situations.
• Run ads that may attract the eye of people who must get out from under a home loan, such as “I buy houses.”.
• Search the newspaper. Look for classified ads that say “must sell”, “vacant”, “motivated”, or “lost job”.
• Search online classifieds such as Craig’s List (craigslist.com) or Backpage (backpage.com).

Other Expert Tips

• If you want to negotiate a pre-foreclosure sale, remember that property owners who fall behind in their mortgage payments are frequently unable to properly maintain the home, and phones and electricity may be shut off.
• Properties sold at foreclosure sales and auctions are sold “as is”, and must be repaired, often at considerable cost, before they can be resold on the market.
• Potential buyers of auction properties may not have the opportunity to inspect the property before purchase.
• Foreclosure properties may also be encumbered by tax and other liens, which become the responsibility of the owner after a foreclosure sale. It is likely that these homes cannot be covered by title insurance, so research, research, research is the key to uncovering the secrets of a foreclosed property before purchase.

Bonus Tip:

The safest bet for those new to the process is finding REO properties (properties that have been taken back by the lender). They have been cleared of liens and taxes, and any tenants have already moved on. Most large lenders have departments who deal with this type of property.

Tip #1: Free Counseling

Housing counseling agencies sponsored by the United States Government offer valuable resources to help you discover special borrower programs. Most of these services are free of charge. Contact the US Department of Housing and Urban Development (HUD) at (800) 569-4287 or visit the department’s website at www.hud.gov for more information.

Tip #2: Talk to Your Lender

Many lenders offer assistance, but only for those who stay in the home and do not abandon it. For example, the lender may have a special forbearance program to rearrange payments, or even reduce or suspend them for a period of time. The lender may also refinance the debt or extend the term of the loan to make the payments lower.

Tip #3: Avoid Scams

Unfortunately, ther are those who prey upon people in financial difficulty. Most likely, anything that sound too good to be true probably is. To avoid scams it is important for the borrower to:

• Check with a lawyer or the mortgage company before entering into any transaction involving the property.
• Remember that the loan must be paid even if the deed is signed over to someone else. The lender must formally release the mortgage debt.
• Make sure all promises are made in writing.
• Not sign anything with blanks to be filled in later.
• Read and understand all documents before signing.

Tip #4: Taxes Are Still Due

In addition to the damage it can do to a borrower’s credit rating, foreclosure can also cause major tax consequences. Most people assume that a foreclosure will automatically “cancel” taxes, but this is usually not true. That is why it is important to involve a tax attorney or advisor in all considerations of foreclosure and alternatives to foreclosure.

Tip #5: Consult a Licensed Realtor^®

A licensed Realtor^® (not just any real estate agent) will work with you on your various option to avoid foreclosure. Your Realtor^® can assist in a pre-foreclosure sale or even a short sale of the property, which avoids the foreclosure process.

Enhancing how your home shows to potential buyers cannot only help to sell it more quickly but can often improve the selling price.

Shine From The Street

A well kept, neatly landscaped property can be very inviting to the potential buyer interested in viewing your home. Refuse containers should be kept out of view, and the lawn should be freshly trimmed. Fertilizing a few weeks prior to listing will help your lawn look lush and green. Woodwork should be free of chipped or cracking paint.

Polish Your Entry

The front door should be clean or freshly painted. Brass and Chrome knobs should be polished. Consider placing a planter of fresh flowers on your front porch.

Minor Repairs A Major Plus

Repair all loose doorknobs and cupboard hinges, dripping faucets, stained sinks, loose or missing caulking, sticking doors and windows, and damaged or missing window screens.

Clutter Is Unattractive

Tidiness makes a room look larger and helps the buyer visualize his/her decor in your home. Workout rooms, sewing rooms, laundry rooms, and home offices should be as organized and clutter-free as the main living space in your home.

Lighting Does Wonders

An open, airy feeling generates comfort and welcomes hte potential buyer into your home. Drapes, curtains and mini blinds should be open to allow plenty of light in your home. Turn on all the lights when showing your home at night.

Closet Space Is A Plus!

Neat, well-organized closets appear larger. Larger closets help sell homes

Bathrooms That Sparkle

Remove stains from sinks, toilets, and bathtubs, incuding hard water spots on shower enclosure doors. If drains run slowly, unclog them. Hang fresh towels on the towel rack.
The Clean Kitchen

Make the most important room in the house appear larger by clearing clutter from the countertops. Avoid dirty dishes in the sink. All countertop appliances should be kept of of view. Replace or repair worn-out flooring. Clean the ventilating hood over your stove. A brighter kitchen is always more attractive.

Information provided by Chesni Dixon-Meske

http://www.chesni.com

New Listing Guide for Homeowners

For those looking to sell their home this summer, here are some tips to consider. For further assistance, contact Chesni at Chesni.com or directly at (310) 990-4716.

1. Price Your Home Right

Your agent can research comparable sales in your area and advise you of the appropriate price range for your property.

2. Be Flexible on Financing Terms

Have your agent explain what financing options are available. Flexibility on financing terms may secure a better selling price.

3. Time It Right

Ask a real estate professional to determine whether the market cycle is poised to net you the most money.

4. Make Your Property Accessible to Buyers

Lock boxes are a great way to make your home most accessible to agents for showing. Appointment-only showing are the most restrictive. If our lifestyle is not compatible with frequent showings, your agent will help you determine a solution to suit your needs. Remember, the easier a home is to show, the better the odds are of getting the deal you want.

5. Use the Latest Marketing Technology

Make sure your agent utilizes the latest technology, such as Internet sites that cater to home buyers. In some areas, cable access advertising is popular. Others use 800-number interactive voice response systems. A good agent will know where you can get the best exposure.

6. Stage Your Property Correctly

Put some items in storage, create more light, play music or otherwise improve the ambiance. Your agent can offer helpful advice to create the right first impression.

7. Remember That Selling Property is Not Seasonal

Don’t base selling decisions on the seasons. Property sells year-round.

8. Re-evaluate the Marketing Plan

Re-evaluate our agent’s marketing plan every 10 days. Make needed adjustments based on the current market and buyers.

9. Analyze Why You Aren’t Getting Offers

Eighty percent of all buyer activity comes from signs and MLS listings. So if you aren’t getting any offers and are flexible with showing your home, it may be time to re-evaluate your price. not necessarily your agent.

10. First Impressions Are Golden

Sales have gone south thanks to unkept lawns, cluttered closets, unpainted front doors, hard-to-work locks, blown light bulbs, bad colors, stains, unlit areas and foul smells. Spend time on the little things. Double up on your gardening. Keep things cleaner than usual. Take serious control of your pets during this time period.

11. Make The Right Kind of Repairs

Before making improvements prior to listing, consult a real estate professional. Some upgrades will not yield any real increase in value, while others may increase property value substantially. Ask for low-cost solutions to minor repairs that will yield the best profits.

12. Give the Sales Process Enough Time

Homes may take 3-6 months to sell in any market. Estimate how much time you have before you need to sell and then plan ahead to allow extra time. You don’t want to be forced to accept a disappointing offer.

13. Screen Prospects Adequately

One of the best reasons for hiring a realtor is his or her ability to pre-qualify a prospect financially so that you don’t lose valuable negotiation time. Your agent may discover when a prospect has an ulterior motive for shopping homes, other than purchasing.

14. Believe That You Can Make A Difference

The top agents in the industry report that their sellers are responsible for at least one out of 10 sales. You can network your business and personal friends, hand out flyers and keep your house in move-in condition. Your realtor should be ready to hand you all sorts of assignments to make the team effort successful.

15. Test the Market

Never put your property on the market unless you really want a sale! Get ready for a professional sales push when you list with a great agent. If your plan harbors some indecision, resolve it before you list because success is every great realtor’s objective!

When you’re ready to list, contact Chesni Dixon-Meske, Realtor ^®.

http://www.chesni.com

Buy low, sell high is what they always say in the stock market. The same holds true in real estate as well. The real estate market is cyclical and after such a quick rise in home sales and median price over the past few years, we’re now seeing a buyer’s market out there. I get asked about how the market is doing and if there are any transactions taking place and my answer is a quick “Yes!” This is actually an opportune time for real estate investors to update their portfolios. A few years ago, the flipping strategy was a quick and fast way for investors to make immediate cash flow. Now, the savvy investor is picking up below-market property to hold on to and creating passive income by renting out the property in the short term and anticipating larger returns years later as the property appreciation builds up again.

There are a lot of foreclosure properties out there and the biggest pool of foreclosures is just a two hour drive from the South Bay area. A recent CNN.com article, citing a report from First American Core Logic, lists Bakersfield, CA as the highest risk market in the U.S. for foreclosures and an expected annualized home price appreciation of -16.9%. I’m actually quite familiar with the Bakersfield area and there are some really good areas worthy of a second home and some that are great rental property areas.

If you’re interested in taking a look at what is available in Bakersfield or in Los Angeles, I’m always available through my Chesni.com website. In fact, I have a new form that you can use to provide me some specifics to what you are looking for and I can follow up with specific properties that match what you are looking for. If you would like to be put on my weekly Chesni’s Investment Picks list, let me know and I will add you.

Many people that I talk to ask me about short sales. What are they?…

A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. It can help in many cases to avoid and stop the foreclosure process and prevent serious damage to your credit record. Recently, banks have seen short sales as a benefit to not only the homeowner, but to them as well since banks are not in the business to own property. In most cases, it costs the bank much more to continue the foreclosure process than to get out quick, when a homeowner is interested in selling the home they can no longer afford. A short sale can only be considered during the pre-foreclosure period when you have:

A. Stopped making payments on your mortgage
B. The home is still in your possession and
C. You are experiencing a financial hardship

Thank you for visiting Chesni.com. Periodically I will be blogging to provide general information to potential clients as well as existing clients about various topics such as the real estate market, property investments, areas to watch, real estate market trends, and other related topics. I am positive you will find this blog informative whether you are new to the real estate market or are a seasoned investor. Keep checking back periodically or subscribe to the RSS feed. See you soon.