What do "same difference", "airline food", "free gift", and "accurate estimate" all have in common? Answer: They are all "oxymorons" (a figure of speech combining two normally contradictory terms). Now we can add the real estate "short sale" to the oxymoron list!  

The "short sale" in real estate is typically not very short. If you are considering a short sale as a home seller or buyer, you should understand upfront that the conventional short sale will take longer than a normal real estate home sale - sometimes twice or three times as long (or longer!). This is because there are extra steps to get a short sale approved by the Seller's lien holder (typically a bank and there could be more than one). Here is a summary of the minimum steps in a short sale:

1. Seller qualifies for a short sale after seeking expert legal, tax, and financial advice.

2. Listing Agent assists Seller in putting the house up for sale as a short sale.

3. Listing Agent contacts Seller's bank(s) to notify bank(s) of short sale.

4. Listing Agent markets Seller's home.

5. Buyer makes offer on Seller's home.

6. Buyer and Seller negotiate final agreement on sale/purchase of home.

7. Listing Agent submits short sale package to Seller's bank(s).

8. Seller's bank(s) review short sale package internally.

9. Seller's bank(s) orders appraisal or Broker Price Opinion on Seller's home.

10. Seller's bank(s) and Listing Agent/Attorney/Seller negotiate final terms of acceptance.

11. Listing Agent/Seller re‐negotiate with Buyer as necessary.

12. Seller and Buyer reach final agreement on contract terms.

13. Seller's bank(s) approve sale/purchase of home.

14. Home sale/purchase closes

Steps 8 through 13 can take weeks or months to execute. If the Buyer's initial offer is not adequate from the bank's point of view (they are the one actually losing money in the short sale), then the bank will attempt to negotiate with the Seller (who may in turn have to re‐negotiate with the Buyer) to reach an acceptable agreement. If an acceptable agreement cannot be reached, the Seller's home will likely go into foreclosure.  

As a Seller in a short sale, it is critical to provide all required information outlined by your bank and/or Listing Agent. The completeness of the short sale package sent to the bank is key in getting the bank to review the Seller's file in a timely fashion. Importantly, the Buyer in a short sale must be willing to stay the course while the Seller's bank conducts its review process. Patience and an understanding of the complete process will help the parties work together for a successful outcome.

Are you following all the new changes to FHA?
Here it is directly from the source, The Commisioner David Stevens

Unlike an automobile, you can't test drive a home before you purchase it. You have to base your decision on other factors such as layout, condition and much more. And, of course, the seller is obligated to disclose the property's condition that may alert you to issues such as previous mold, defective water heater or leaky roof. Yet, that still doesn't always paint the entire picture. Here are six questions you should consider asking the seller to gain additional insight about the prospective home before you make a final decision.

1. Why is the seller selling the house?  This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.

2. How much did the seller pay for the home?  In some instances, the answer to this question may help you negotiate a better deal. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.

3. What does the seller like most and least about the property?  By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening neighborhood," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.

4. Has the seller had any problems with the home in the past?  It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should check that these items were repaired properly.

5. Are there any nuisances?   Use this question to find out about barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.

6. How are the public schools in the area?  Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer's perception can give you some insight about the quality of the area's schools.

Knowing all you can about a prospective home will help you make a more informed decision as well as offer. Your real estate professional can be a great resource in helping you get your key questions answered and give you advice on how to evaluate your findings.

Dana Point Open House - Sunday 10/04/08 & Sunday 10/05/08,  1:00 - 4:00PM

Please stop by for a visit at this beautiful steal of a deal Dana Point Pool home home at 33022 Daniel Drive, Dana Point, CA, 92629. I will be open from 1:00pm - 4:00pm this Saturday and Sunday and I'd love to see you there! 

Come steal a slice of paradise in cool Dana Point. Finally the home that you have been waiting for at the right price! Rarely available model in highly desirable and much sought after Dana Crest with numerous upgrades. Remodeled and Reconfigured spacious kitchen looking out to Breakfast nook and family room, Living room with French doors out to private patio plus a Spacious rolling front lawn with room for a walled patio. Updated banisters and stairs. Custom Master Bathroom Remodel with Raised Vanities, Double Sinks, Romantic Spa-Tub, Glass Surround Shower, Walk-In Closet and Pocket Doors for privacy. Murphy Bed in 2nd bedroom included. Freshly painted, Newer Roof and roll-up garage door. Located on quiet private street. No HOA and no Mello Roos! 

Gary Macrides

Prudential Ca Realty

(949)370-6827

By Gary Macrides Prudential CA Realty As the real estate market continues to stabilize, sellers may find that their property remains on the market significantly longer than the days of “list today, sold tomorrow.” There is also more competition for buyers. So, it can be frustrating to put your home on the market, expecting a fast sale, only to find that after six months you’re still waiting for an offer. This is especially true if you need to move quickly and leave your unsold home vacant.
Besides creating a marketing challenge, a vacant home can also be a target for vandalism. Here are strategies you can use to hasten a sale and protect your property during the process.

· Instead of producing a spacious appearance, an empty room tends to look smaller than a furnished room. So, leave behind a few select pieces of furniture and keep the window treatments in place. A chair or lamp on a small table will confer a sense of scale and help potential buyers gauge whether their furniture will fit the space.
· If you decide to remove the furniture, have the house cleaned and painted. Furniture, rugs and decorations tend to hide or minimize imperfections. When furniture and artwork have been removed, every blemish and bruise becomes accentuated, faded paint and wallpaper become more noticeable and scratches and nicks stand out.
· Repaint brightly and boldly colored rooms to a neutral tone. What was an eye-popping room when fully-furnished may appear stark and small when empty.
· To thwart unwelcome visits, give the house a lived-in look. Set a couple of lamps on timers, and ask a neighbor or friend check on the house daily to collect mail, park a car in the driveway, and close and open drapes and windows. Continue using a gardening service or hire someone to cut the grass regularly. During the winter months, arrange to have snow shoveled from the walks and driveway.
· If available, consider employing a home manager or house sitter. At little or no cost to homeowners, the house is furnished and decorated for show-to-sell condition. Most companies require home managers to mow the lawn, shovel snow, even pay pool maintenance and utilities. Having someone living on site discourages vandalism, protects against deterioration and weather hazards and may even reduce insurance costs. (Check with your insurance carrier.)
· Leave the utilities connected. Depending on the season, make sure the thermostat in the house is set at a comfortable level. You don't want a potential buyer to run through the home because it is too hot or cold.
· Review your homeowner's insurance policy with your insurance agent to find out what the stipulations and coverage pertain to your vacant home.
· Find a real estate professional with experience selling vacant houses. Often, these sales professionals specialize in relocation. You want to make sure that you are comfortable with your lines of communication. If you will be residing in another town, come up with an agreement on how often your representative will check on the home and what should be done if a problem develops.
Although a vacant house presents certain challenges, it does not need to be difficult to sell.

By Gary Macrides

Prudential CA Realty

Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer's current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.

There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.

However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.

 Utilities: The most obvious of additional housing expenses are utilities-gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.

Taxes: As a property owner, you are responsible for property taxes. The rate will vary from city to city. In our community, the tax rate is (insert %) percent. That means for a home with a market value of $200,000, yearly taxes will run (insert dollar amount). To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.

Association Dues: Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.

Maintenance: You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.

Insurance: Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars.  And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.

Remodeling/Upgrades: Unless the home you purchase is picture perfect, you'll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to "Remodeling Magazine's" 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.

Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.

By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.

By Gary Macrides
Prudential CA Realty

With just the stroke of a few keys, you can find myriad resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options. Prudential Real Estate has made three great resources - Environmental Profile, Property Profile and Value Range Estimate - available on prudential.com/realestate that provide detailed real estate information just by keying in a U.S. property address.

With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.
Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because he or she has inside knowledge on the history, culture and stories that you may not have otherwise received.
The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. He or she knows the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs. For instance, should you require help relocating an aging parent with you, your real estate professional may be able to direct you to local services or organizations for the elderly.
A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.

Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.
And something easy to overlook is our familiarity with the complexity and risks inherent in the process. In the years I have been practicing I have been continually amazed at how quickly a seemingly simple transaction can grow legally complex and risky. When complex questions arise, a sales professional can help you quickly locate an attorney or other licensed professionals whose services you may require, such as home inspectors, engineers, surveyors and lenders.

As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, estimating closing costs, and helping prepare for a smooth and uneventful closing.
If you're about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it's comforting to have a specialist by your side.

By Gary Macrides

Prudential California Realty

 An open house can be a great marketing tool, but it also means exposing your home and family to countless strangers. Don’t assume that every person who visits your home is an earnest, potential home-buyer. It’s important to take security seriously. Here are some common security measures that can pull double-duty, keeping you and your family safe while enhancing your home’s marketability:

• Remove personal items such as family photographs, your children’s artwork, calendars that include daily routines and other items that may reveal the names of your family members or everyday life. Removing or packing away these items will not only enhance your privacy, it will also help keep the potential home buyer focused on your home and not your family. A house that’s been depersonalized shows better because it’s easier for the buyer to visualize living in the house. 
• Identity theft is a growing problem, so be sure to remove or lock up all credit cards, bills, health insurance information and anything else that contains personal information like social security numbers and bank account numbers. Of course, this step removes clutter from your counters, maintaining visual appeal.
• Remove or lock up jewelry, cash and other valuables; firearms and other weapons; and all prescription medication.
• Make sure the house is well-lit and keep all interior and exterior walkways clear of clutter and other debris. · After each showing, take a thorough walk-through of your house and make sure all of the doors and windows are shut and locked, and that no items or valuables are missing.

In addition to safeguarding your property and identity, there are precautions you should take to protect yourself if you are present during an open house. Ideally, your real estate professional will be representing you during the open house, so that potential home buyers feel comfortable snooping around, opening cupboards and speaking freely about the home. However, if you do find that you are in the home alone, or are selling your home on your own, consider a few tips from the pros:

• Never turn your back on a potential buyer. Instead, let the buyer lead you through the house. This allows you to watch the buyer and avoid becoming cornered or trapped.
• Employ the buddy system. If you must show the house yourself, enlist the help of family or friends. This rule is especially important if the home is located in an isolated area.
• Have a visitor register and make sure everyone who tours your home signs it and includes their phone number and address. This will help you keep track of who is viewing your home.
• Know and have a plan for the fastest escape route for each part of your home. The open house process is just one step toward selling your home.

A real estate professional can provide you with a fresh set of eyes and will tour your home and point out safety measures you may have overlooked as well as answer other questions you may have about selling your home.

By Gary Macrides, Prudential California Realty

If you're ready to buy a home and can afford it, now is a great time to buy. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.

Don't let all of the negative media attention about the "mortgage meltdown" keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels - still less than 7% for the typical, 30-year fixed-rate mortgage.

Indeed, the market has changed. It's gone from a frenzied seller's market to calmer buyer's market. In fact, buyers haven't seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.

The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation's metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.

Right now there are many homes from which to choose and in most areas buyers don't have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.

Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.

While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:

Ø      On average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.

Ø      The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they're building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.

Ø      Sixty percent of the average homeowner's wealth is their home's equity. For homeowners who're in their homes for the long-term, home equity typically is their single largest source of wealth.

Because every market is different, it's a good idea for potential homebuyers to contact a local real estate specialist to learn more about what's happening in his or her community and real estate market. The bottom line in real estate doesn't change - if you're ready to buy and can afford to make a long-term homeownership commitment, it's always a good time to buy!