For Buyers
So, What is the MLS Anyway?
May 15th, 2008 Categories: For Buyers, For Sellers, Real Estate
Once you start looking for a home or getting involved in real estate in any shape or form, you’re going to hear the MLS mentioned over and over. What in the world is this? How does it work?
Basically, the MLS stands for Multiple Listing Service and is a database service that all brokers use for their listed properties. Area brokers belong to their local MLS system and pay an annual fee to be a member. This way they can keep track of homes that are actively on the market, those that are looking for back up offers, in escrow (pending) or have closed. They can also go into the listing history of properties and compare comparable sales in the area for clients making offers or getting ready to list their property.
How are the search features different from regular search engines like yahoo.com or Google? Or brokers’ sites like coldwellbanker.com? Or real estate specific search engines like Realtor.com?
All the real estate search engines will basically get you the same info- it’s just the lag time behind the market that makes the difference here. I’m not sure about the other brokerages but I know that when you look at Coldwell Banker’s site, you’re not just going to see Coldwell Banker represented homes. You’re going to see every home that fits your search criteria. Realtor.com is the same way. It’s a great place to see all of the homes. The issue is that it’s a few days behind the market.
So, to get real market-time information, brokers go to the MLS. You may not think that a few days would matter but it most certainly does for HOT homes. Those can easily be snatched up by the time it hits Realtor.com.
Since the MLS is a closed service, you need to be an agent to place your property on the system. As an agent, I can, however, set up clients on a private MLS website so they can have access to everything that is on the market that fits what they’re looking for. This way they will see everything available in real market-time and be updated as soon as a property comes on the market, comes back on the market or gets a price reduction. I can also set up clients who are selling their property on their own site so they can also keep track of the competition.
So, my suggestion is that if you’re looking to buy, get started on an MLS website ASAP- even if you’re thinking about buying down the road. And if you’re looking to sell, have your agent set you up on a website as well so you can become familiar with current competition.
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What?! You Haven’t Spoken with a Lender Yet?!
April 21st, 2008 Categories: For Buyers, Money & Mortgages
Unless your idea of fun is to waste hours- days- weeks- months of aimlessly looking at home after home without any idea as to the price you can REALLY afford, I really must insist… talk to a lender!
Let’s be honest here… why have you put it off?
Is it all the stories of sleazy lenders out there that preyed on innocent people, getting them involved in loans they had no business being in? Are you worried that they’re going to try to hook you into working with them, with no room for escape? Are you afraid of what they might tell you that’s lurking around on your credit report, ready to burst your dream of home-ownership?
All of these are valid concerns- but just plain wrong! Let me tell you the truth about what will happen when you talk with a lender:
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Taking a Gamble with Low Ball Offers
April 13th, 2008 Categories: For Buyers, Real Estate
Here’s the situation:
You see a house you like. You see there’s value there somehow… either in the location, the space, the condition, the asking price, etc. You think that with all the bad press about the market, maybe there’s room for a “deal.” So, even though your agent has told you what the other side is looking for and what the value of the property is, you decide to offer way below their asking price, to “see what happens.” You have to at least give it a shot, right?
I want you to understand clearly what can happen when you try to get a “deal” and make an offer at far below asking price, what we call “low ball” offers in the real estate industry. There are 3 things that can happen:
1. They can miraculously take your offer.
2. They will give you a counter offer.
3. They will reject your offer outright.
Don’t be surprised if you face the last situation. You see, when you give a low ball offer, you leave the door wide open for someone else. You have not given the other side an offer to get excited about. Why would they be? You did not give them what they want or even close to that. They are more disappointed than anything with your offer (and sometimes, just plain insulted). They now may very well think that you play games, that you are “testing” them. If you were on the other end, would you want to do business with someone like that?
Again, you are NOT entitled to a counter offer. Should they counter you? Yes. I would strongly encourage any client who is selling their property to counter because you just never know. But, that being said, they have every right NOT to counter you.
Your negotiation strategy may be to start really low to allow for lots of room to go up. Their negotiation strategy may be to only work with people who show real effort to buy the property, that means those who come close to their price. Just because you negotiate a certain way, don’t assume everyone else does the same.
You risk a lot when you give a low ball offer. It’s a true gamble. Sometimes you win, sometimes you lose. Be prepared.
Your best bet is if you are serious about a home, make a serious offer.
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Multiple Offers Sweep Santa Monica, Beverly Hills, Westwood, Hollywood Hills…
March 17th, 2008 Categories: Bel Air - Holmby Hills, Beverly Hills - BHPO, Brentwood, Cheviot Hills - Rancho Park, Culver City, For Buyers, For Sellers, Hollywood Hills, Malibu, Marina Del Rey - Venice, Pacific Palisades, Santa Monica, Sherman Oaks - Studio City, West Hollywood, Westwood - Century City
Per our last posting, there are plenty of reports from reputable sources and sensationalistic news articles that can argue the ups and downs of our Los Angeles Westside real estate market all day long.
We could argue for the stability of our unique market and likewise we could tell you it’s all going to hell in a hand basket. You’ve heard it all before.
What we’d rather do is to give you a small sample of what’s actually happening behind closed doors (as the seller reviews with his/her agent, the spread of offers to purchase their home). As they say, “show me the money” and in our market, there seems to be lots of it flying around. Yes, still.
Observed Multiple Offers on Hot Properties in the last 14 days:
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Mixed Signals: Making Sense of Real Estate News for the Westside
March 14th, 2008 Categories: For Buyers, For Sellers, Real Estate, Real Estate News
We are asked by clients every day about what we’re seeing in the market. Are prices really dropping like what we’re seeing in the news? What’s going to happen next year? When should they buy? Should they sell now or wait to get more? And so it goes. Well, no one has a crystal ball but I can tell you what I’m noticing lately…
Everywhere we look, we see stories about the real estate market. This was true before the mortgage crisis in September and will be true next year and the year after. What’s happening is newsworthy, yes, but more than that, it sells papers and the media knows that if they lead with a story about the real estate market, people are going to watch. We are all interested and bad news- not good news- is going to get viewers’ attention. To confuse everyone even more, we see a constant stream of mixed signals by the press (see the relatively positive recent UCLA Anderson School’s report and a recent negative Los Angeles Times’ article as examples).
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Beverly Hills Post Office - Elegant Cape Cod Contemporary
March 7th, 2008 Categories: Beverly Hills - BHPO, For Buyers, For Sellers
Click the mini flier photo for detailed property information.
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SOLD! To the Highest Bidder at a Santa Monica Home Auction
March 3rd, 2008 Categories: Events, For Buyers, For Sellers, Real Estate, Real Estate News, Santa Monica
If you haven’t attended a live home auction recently, you’re like the rest of us because they just don’t take place all that often!
I witnessed my first home auction this Saturday at 710 Kingman Ave in Santa Monica. The property is a beautiful Spanish contemporary on a lovely tree lined street. The home is in great condition, 4 bedrooms with 3.5 baths in just over 3,000 square feet, on a 7,500 square foot lot. There is a beautiful tropical grotto style lagoon pool in the back, with the master balcony overlooking it. Fabulous home in a great neighborhood.
The living room was filled to capacity. It started with the expected dictation of the auction’s rules and regulations followed by a fun and LOUD practice bid for those participating in the process to get warmed up to the real deal. Yes, the Santa Monica Pier was auctioned off.
Opening bids for the home started at $2,000,000. The energy in the room blew the roof off as the auctioneer swung his gavel in the air rambling (in his professional auctioneer way that only an auctioneer can) off the increasing prices while the (five registered bidders’) paddles shot up in succession of one another…until we reached…da da da dummm…MARKET VALUE.
SOLD! with the crack of the gavel promising the home to the winning buyer for $2,450,000.
(Understand, that with an auction home sale, the buyer pays the costs of the sale, so the price sold is the amount the seller nets not what the buyer ends up paying. The buyer actually will pay about 8% on top of the $2.4M he’s agreed to pay for the house itself.)
A home auction is quite like dealing with mulitiple offers on a property that’s for sale, with some minor differences. As one of the buyers, you know what the other buyers are willing to pay when everyone is standing in the same room at the same time with the same goal. For the seller, the process of the auction saves time and the paperwork of having to counter offer all buyer offers in writing, a process that can take days.
Most obviously illustrated for all to see is that on the day and time of the auction when real serious buyers (cashier checks in hand!) turn out for the bidding to bid against each other for said property, there is no doubt about the home’s market value once THE MARKET SPEAKS.
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Getting a Game Plan: Buying a Home Simplified
February 26th, 2008 Categories: For Buyers
You’ve been thinking about buying a home for a long time and have just not known where to start. It can feel overwhelming with so much information out there but here’s a simple plan for getting you into your new house!
1. Write down what kind of home you’re looking for- and be specific. How much space do you need? How many bedrooms? Baths? Do you need any special space like a guest house or media room? Will you do work? Do you need room for kids to play in the yard?
2. Set a budget. Decide how much you can afford to invest each month in your house payment. Realize that there are extra home expenses that come up so give yourself a cushion.
3. Have a lender look at your finances and credit history. Find out what kind of loan you will qualify for. Get pre-qualified or pre-approved before you start looking. Many people find the idea of talking to a lender uncomfortable but it’s very painless and a great place to start. It will give you a roadmap and if there are problem areas of your credit, they will give you suggestions for how to improve it.
4. Talk with a Realtor. You could do this before you talk a lender because they can offer you a recommendation for someone they trust. Working with an agent is going to save you a huge amount of time, effort and money. Find someone you feel comfortable with and who understands what you’re looking for. You want someone who is going to be patient and have your best interest at heart.
5. When house-hunting, write down your likes and dislikes. Don’t be shy- express how you feel to your agent. Honest communication is essential and the agent will be glad to hear what you have to say. All homes start to blend together after a bit so make sure to write down ideas as you go.
6. When you find a home you like, make an offer. Your agent will help you get a good idea of the value by showing you what homes are selling for in the area and how long they are taking to sell.
7. Have fun! All this work will be worth it!
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5 Steps to Buying a Foreclosure Property in Los Angeles
February 3rd, 2008 Categories: For Buyers, For Sellers, Money & Mortgages
It usually goes something like this:
r.e. agent: So what are you looking for specifically?
buyer: Well, I’m open to area, but I want a good deal. Hey, I hear that foreclosure properties are great deals and there are tons coming on the market. Do you have any foreclosure properties?
r.e. agent: Yes, I have access to foreclosure properties. How much do you want to spend? How much were you thinking of putting down?
buyer: I was thinking of going for a 0% down loan, you know, get a great deal! (i.e. steal a property)
BBBBZZZZZTTT! Stop right there.
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