Caroline's Blog

Inventory Report - 12/09

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 01 Dec 2009 22:57:43 -0600

Inventory level remains very low in December 2009. Below is a chart showing the inventory level in Chino, Chino Hills, Diamond Bar, Walnut and Phillips Ranch.

In Chino and Chino Hills, house supply are both less than one month. Despite of the higher tax rate with Mellos Roose and HOA, Chino and Chino Hills continue to attract large number of buyers who desire newer homes at a deep discounted price. Some good deals in Chino are only 50% of it's 2006 value making it one of the hottest cities to invest.

Inventory levels in Diamond Bar, Walnut and Phillips Ranch are all below one and half months supply. I am also seeing a fast price rebound in those cities.

Fall is typically the slowest time for real estate market. Unlike the past, the low inventory level shows a continue strong demand for housing.

Home Tax Credit Extended To Step Up Buyers!

Caroline Tsou Chai (RE/MAX Realty 100) — Mon, 23 Nov 2009 07:41:22 -0600

The existing tax credit for first-time buyers, set to expire at the end of the month, has helped boost home sales. President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010 to the first-time homebuyers and also to the step up buyers.

Here's a quick summary of the extended tax credit:

	First-time buyers	Step Up buyers
Tax Credit Amount	$8000	$6500
Eligibility	Buyers who have not owned a principal residence during the three-year period prior to the purchase.	Existing homeowners who have been residing in their principal residence for 5 consecutive years out of the last 8 and are purchasing a home to be their principal residence.
Effective Date	Homes purchased 11/06/09 - 04/30/10 and close by 06/30/10.
Income Limit	Single or head-of-household taxpayers can claim the full credit if their modified adjusted gross income is less than $125,000. Married couples filing a joint return, the combined income limit is $225,000. Partial credit for single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000.
Type of Home That Qualified	Purchase price of less than $800,000.

One great thing about this tax credit is that it is refundable. So if you are entitled to $8000 tax credit and your tax liability is only $5000, you pay nothing to IRS and will receive a $3000 check from Uncle Sam. Hoo...Hoo...What a great deal!

If you are thinking about selling, this is a great time to make a move! You will need to put your house on the market for sale first and start looking for your next home in order to get all this done by 04/30/09. Hire the best to get the most! Call Caroline today to get it started!

Over Saturated Rental Market

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 10 Nov 2009 14:21:24 -0600

Have you notice a lot of for rent signs on the street lately? Why are we having so many houses for rent this time of the year? Here are the 3 main reasons:

1. Investors move into the rental market:
Since there are a lot of bargain buys of bank owned and short sale properties, investors are moving into the market to secure good deals and rent them out.

2. Quality renters make purchases:
Quality renters with good credit and enough savings for down payment are buying now creating large quantities of available rentals.

3. Holiday seasons:
Traditionally, very few people like to move during the holiday seasons especially from November to January. Rental activities do not normally resume again until March.

Because of this, this time of the year is the best time for bargain conscience renters to secure good deals.

For landlords, be sure to keep your house in the optimal condition at an aggressive price in order to attract quality renters who have so many option to choose from.

Last Chance For Buyer To Qualify For $8000 Tax Credit

Caroline Tsou Chai (RE/MAX Realty 100) — Mon, 21 Sep 2009 00:09:53 -0500

In an effort to stimulate housing demand, President Barack Obama included a tax credit of up to $8,000 for certain first-time home buyers in the $787 billion economic stimulus package he signed in February.

Only buyers of principal residences who make purchases before December 1 and have an adjusted gross income of $75,000 or less (or $150,000 for married couples) are eligible for the full credit.

We are experiencing a boom real estate market starting this March right after the law is in effect. Falling home prices have worked their magic and the tax credit has played a key psychological role in pushing buyers off the sidelines.

The tax credit is one of a number of factors that have worked to bolster the housing market in recent months especially entry level home that is priced below half a million dollar in our area.

The federal tax credit of $8000 to the first time home buyer is about to expire on 11/30/09. Although the credit's deadline isn't until the end of November, buyers may need to make an offer on a house by the middle of October to take advantage of it since it will take about 30 days to close an escrow.

Unless the tax credit is extended by lawmakers, this will be the last chance for the first time home buyer to secure a home at an unbelievable low market price (comparing the price from last year) with a great tax incentive.

Buyer's Protection When Buying A Property

Caroline Tsou Chai (RE/MAX Realty 100) — Wed, 29 Jul 2009 07:13:20 -0500

One of the most common concerns from buyers is the condition of the house. Buyers do not want to end up with a house that has lots of problems.

To avoid that, here are five steps to protect buyer's interest in the purchasing process:

1. Buyer's own visual inspection. Some of the problem can be easily spotted such as broken windows, shifted foundation or mold.

2. Agent's visual inspection reports. Both listing and buying agents will fill out a separate report detailing what they see visually about the property and give buyer a copy.

3. Sellers are required to disclose certain types of information about the homes they are selling. Sellers will provide a report to disclose condition of the house.

4. Professional home inspection detailing the condition of the property. Once the defects are located, buyer can ask the seller to fix those problems.

5. Seller will normally provide a one year home warranty plan to cover any plumbing, electrical, pest control, air condition, water heater, roof leak, and/or Pool/Spa equipment A good agent shall be able to assist you in making that request when filling out the purchase contract.

With all the above steps performed, buyer can rest assured that no serious defects are overlooked and can request for the correction prior close of escrow.

Perfect Time To Upsize To A Larger Home

Caroline Tsou Chai (RE/MAX Realty 100) — Thu, 16 Jul 2009 06:02:04 -0500

Due to the $8000 federal tax credit to first time homeowners who purchase their primary residences before end of the year, the demand on houses selling less than $500,000 is very high causing a short supply on this type of housing. Buyers who already know their area interests are in a stand by mode waiting for new listings to show up on the market.

Inventory level remains very low in Walnut, Diamond Bar, Phillips Ranch and Chino Hills. It is below 2 months supply in Walnut and Diamond Bar and below 1 month supply in Chino Hills and Phillips Ranch.

This posts a great opportunity for sellers who need to sell their properties due to various reasons to put the houses on the market to satisfy the huge demand generated from the $8000 federal tax credit that will be expired by the end of the year.

For million dollar home buyers, it is a totally different story. Inventory level remains high and price is very competitive. For example, this house in The Country, an exclusive guard gated complex in Diamond Bar, with spectacular city lights view and gorgeous swimming pool on 23509 Ridge Line was listed for sale for $1,490,000 in 2008 and is now listed for $999,990. We are seeing as much of 50% price decline on million dollar homes.

For buyers who need to sell thier smaller homes and upsize to a larger ones, it is a great opportunity to maximize the selling price of their smaller homes and capture the bargains of the larger ones.

Crazy Bidding On Babk Owned Properties

Caroline Tsou Chai (RE/MAX Realty 100) — Wed, 08 Jul 2009 19:13:56 -0500

Recently I am seeing bank owned homes received 30-50 offers couple of days after it was listed. Especially the ones that are in good move in condition with lots of upgrades.

I am also seeing overbidding on the bank owned properties at a price that is substantially higher than the regular sales at market price.

The followings is a list of example of bank owned homes recently sold to demonstrate this kind of emotional bidding.

No. 1 - 1955 Silver Hawk Drive, Diamond Bar
List Price: $549,900
Sold 18.6 % over asking price for $652,000 On 05/18/09

No. 2 - 1024 Summitridge Drive, Diamond Bar
List Price: $621,225
Sold 12.3 % over asking price for $698,000 On 06/17/09

No. 3 - 20133 Illuso Ave, Walnut
List Price: $400,000
Sold 12.5 % over asking price for $450,000 On 06/11/09

No. 4 - 3258 Olympic View Drive, chino Hills
List Price: $419,900
Sold 10.7 % over asking price for $465,000 On 06/26/09

We were not seeing this kind of crazy bidding even during the 2003-2007 boom market. Before making an offer, ask your agent to give you a list of comps in the area to help you decide on the offering price. Appraisal website such as www.Zillow.com is also a good place to double check and make sure you are not overbidding.

Buyers shall exercise logic and caution when submitting offer on bank owned properties by utilizing facts and reasons to avoid paying a price that is over the market price.

Market Trend Report Ending June 2009 - Walnut, Diamond Bar, Phillips Ranch & Chino Hills

Caroline Tsou Chai (RE/MAX Realty 100) — Mon, 06 Jul 2009 19:30:18 -0500

Number of houses sold last month in June 2009 went up dramatically and the buying frenzy continues in July.

Is It Time To Buy Real Estate?

Caroline Tsou Chai (RE/MAX Realty 100) — Fri, 26 Jun 2009 19:54:10 -0500

According to Dataquick's newest report for California 2009 May Home Sales: "The median price paid for a home last month was $230,000, up 4.1 percent from $221,000 in April, and down 32.2 percent from $339,000 for May a year ago."

	California Median Home Price
May 2008	$ 339,000
April 2009	$ 221,000
May 2009	$ 230,000

Buyers often ask me whether the market price will continue to drop and want to find out if this is the right time to purchase real estate. Savvy investor knows the best time to make a purchase is when the market hits the bottom and is on the process of rebounding.

So if we are down 32.2% from last year and up 4.1% from last month, this may be the good indicator to assist buyers in making their purchase decision.

Why Hire A Real Estate Agent Who Is An Area Specialist?

Caroline Tsou Chai (RE/MAX Realty 100) — Thu, 25 Jun 2009 12:36:33 -0500

Why is it important to hire a agent who is familiar with the area you are buying or selling instead of an out of the area agent who is a trusted friend? The answer may be very simple.

1. Convenience

Is it easier for a local agent to drive 5 to 10 minute or out of the area one to drive 30 to 60 minute to the house for showing? It is more practical to hire a local agent who is nearby due to the showing convenience.

2. Area Knowledge

On top of that, the local agent who specializes in the area knows the neighborhood by heart. They are familiar with the rating of the schools, the crime rate of the area, and where the parks and shopping malls are. Those local knowledge may require some research if the agent is out the area and could be totally unaware of.

3. Pricing Knowledge

A local agent who monitors the real estate market in the area is familiar with the pricing of each home sold on a daily basis. The agent understands the type of buyer for each type of house from experience and can price the house accurately.

There was one bank owned home in Diamond Bar for sale that is located in a extremely busy main street in June 2009. It is difficult to drive in and out of the house due to the street traffic. The same house was sold frequently every few years. It was normally priced about 10% below the market price in the past due to it's functional obsolescence.

It was sold 8 days after it was listed at regular market price. Buyers normally believe bank owned homes are good deals and especially if the value of the property checked out with appraisal site such as Zillow.com. This kind of situation could be easily prevented if buyer is assisted by a competent local agent.

With a good local agent working for you, it can help prevent selling your house too low or buying too high. Therefore, it is to your best interest to hire an agent who is familiar with the area you are buying or selling.

2008 Base API School Reports

Caroline Tsou Chai (RE/MAX Realty 100) — Sun, 14 Jun 2009 08:46:59 -0500

Buy a house in s good school district is one of the main reasons for family looking for a new home in the summer. The following is a chart of State's 2008 API school reports for Walnut, Diamond Bar, Phillips Ranch and Chino Hills to assist buyers who are factoring the shcools into their buying decision.

	Elementary	Jr. High	High School
	Walnut (West) - Walnut Schools
C. J. Morris	842
Collegewood	893
Walnut	822
Westhoff	926
Vejar	862
Suzanne		918
Walnut			871
	Walnut (East) - Rowland Schools
Oswalt	887
Ybarra	881
Rincon		751
Nogales			674
Rowland			783
	Diamond Bar (South) - Walnut Schools
Castle Rock	890
Evergreen	923
Maple Hill	885
Quail Summit	903
South Pointe		870
Chaparral		902
Diamond Bar			858
	Diamond Bar (North) - Pomona Schools
Diamond Point	866
Golden Springs	908
Pantera	962
Decker	825
Lorbeer		838
Diamond Ranch			807
	Phillips Ranch - Pomona Schools
Ranch Hills	906
Decker	825
Lorbeer		838
Diamond Ranch			807
	Chino Hills (North) - Chino Schools
Country Springs	927
Eagle Canyon	870
Hidden Trails	900
Rolling Ridge	904
Canyon Hills		876
Ayala			795
	Chino Hills (Central) - Chino Schools
Chaparral	795
Los Serranos	805
Oak Ridge	915
Wickman	896
Townsend		837
Ayala			795
	Chino Hills (South) - Chino Schools
Butterfield Ranch	897
Townsend		837
Chino Hills			773

Market Trend Report Ending May 2009 - Walnut, Diamond Bar, Phillips Ranch & Chino Hills

Caroline Tsou Chai (RE/MAX Realty 100) — Sat, 06 Jun 2009 16:25:20 -0500

Housing Price Holds Strong in Walnut

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 26 May 2009 19:43:52 -0500

Below is a chart of percentage housing price changes in Chino Hills, Diamond Bar, Walnut and Phillips Ranch according to the newest data published by MDA DataQuick, a company that tracks housing price.

Unlike most cities in Los Angeles where the 1 year percentage change are still in the negative, Walnut is up by 17.5%.

Why is housing price holding so well in Walnut? Here are the main reasons:

I. Top Ranked Schools

Walnut School District is famed for it's top ranked schools. For parents who wants to send their school age children to great schools, Walnut becomes a top pick.

II. City's Effort To Minimize Over Development

With City of Walnut's effort in opposing over development in the city in the past decades, Walnut remains one of the nicest residential cities to live in with minimal commercial traffic from outside of the city.

With excellent schools and city's effort in keeping it a small town atmosphere, Walnut remains one of the most popular cities for young family to settle down.

Housing Market Recovery?

Caroline Tsou Chai (RE/MAX Realty 100) — Sun, 24 May 2009 17:44:27 -0500

With the new signs of economic recovery, we are seeing large amount of solid buyers/investors returning to the market with 20% to 50% down payment to look for bargains.

The wave of purchase starting in March is causing a huge reduction of available homes for sale and subsequently driving the market price upward rapidly. Inventory is at all time low. Some cities such as Chino Hills and Phillips Ranch are having inventory level below one month supply.

The market frenzy is further indicated by multiple offers on the same home driving purchase price upward to as high as 10% more than the asking price.

Last week in Diamond Bar, a bank owned property on Silver Hawk received 30+ offers within 2 days it was listed for sale. According to the listing agent, bank chose an offer with offer price substantially above the asking price and had all the contingencies removed to guarantee their purchase.

Because of the bidding frenzy, it is common to see buyer submitting offers to multiple homes to ensure their success in purchase a house. If their offers get accepted by multiple homes, they will pick the one they like the most to purchase.

Due of the low inventory level, we are also seeing seller receiving multiple offers on the same house. Since buyers are also making offers on multiple properties at the same time, it is wise for seller to wait for couple of days prior to open escrow to make sure that the buyer is sincere enough to go forward with the purchase.

Market Trend Reports Ending April 2009 for Chino Hills, Diamond Bar, Walnut & Phillips Ranch

Caroline Tsou Chai (RE/MAX Realty 100) — Sun, 24 May 2009 13:16:33 -0500

Selling a House with Pets at Home

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 19 May 2009 13:21:03 -0500

This article is found at: http://homebuying.about.com/od/sellingahouse/qt/sellwithpets.htm

Almost everybody loves pets except the home buyer who is buying your house. Don't ask me why, but that's often how it works out. Home sellers who adore their pets -- and I count myself as a huge pet lover -- have a hard time imagining the negative attitudes others harbor against pets. So, while this might be a bitter pill to swallow, if you want to get top dollar for your house, pay attention to how much you might lose with a dog or cat in residence.

Why Don't Home Buyers Like Your Pet?

- Nervousness. Pets make some people very uncomfortable. Not everybody grew up with a family pet or enjoys outings at the zoo. Fur and four legs does not a human make.

- Fear. Real and irrational. It's not only dogs that instill fear in people. All kinds of silly wives' tales and superstitions involve cats.

- Inexperience. Pets are not always predictable.

- Your pets aren't their pets. They imagine yours bite, jump, vomit, claw, spit-up hairballs or are just plain hyper and bad.

#1 Preferred Pet Solution

You're not going to like this but I'll say it anyway, fully realizing that this very excellent piece of advice is likely to fall on deaf ears. The best thing to do to ensure top price for your home is to relocate your pets while your home is on the market. Putting them in the back yard, in the garage or in another room that you keep locked is insufficient, and it's not fair to them. You need to remove them from the house.

- Let a friend or relative care for Fluffy and Spike.
- Board them at a kennel.
- Send them on vacation.

Overcoming Negatives Associated with Your Pets

If you shrug off all professional advice and absolutely refuse to move your pets out of the house, then at least minimize the objections and nuisance factors, real or otherwise:

- Cat Litter Boxes & Dog Potty Pads
Keep them out of sight and impeccably clean. Nothing turns off buyers faster than opening the door to the laundry room and being greeted by a full or stinky cat box.

- Carpet & Floor Pet Stains
Hire professionals to remove the stains. Buyers will spot them and form unfavorable opinions about the rest of the house. If the stains can't be removed, then remove the floor covering and replace it.

- Pet Odors and Smells
1. Cat urine is the worst. Without question. The. Worst. Bring in a neighbor to do a whiff test.

2. Do not use air fresheners. People with allergies will react.

3. Try enzyme cleaners such as Simple Solution , Nature's Miracle or call a professional ozone company.

Remove Signs of a Pet

You may be required by state law to disclose that pets have lived in your home, but you don't need to advertise that pets live at your house. Removing signs that you have a pet is simply smart practice. Why turn off a buyer at the get-go? It's those first impressions that are so all-fired important.

- Do not put photos online showing your cat asleep on the bed
- Seal up doggie doors
- Put away food and water bowls when not in use
- Vacuum religiously, every day, sometimes twice a day
- Pick up pet toys and put them away
- Pack up cat trees and other signs of cat paraphernalia (you know who you are)
- Remove photos of pets from refrigerator, walls and table tops
- Pack up all cages, carriers and other tell-tale signs

Showing Your House

Put your pets into a carrier and attach a note warning buyers not to disturb them. The last thing you need is somebody sticking their hand inside the carrier and getting bit or scratched. You can't predict how your pet will react when locked up and alone.

I learned the hard way by letting my cat run loose during a showing. I was outside talking to my neighbor while the selling agent showed my home. We heard loud knocking and looked up to see the agent rapping on my upstairs window. I thought he was showing the buyer I had dual panes. It didn't dawn on me that he was panicking and couldn't figure out how to open the window. When the rapping continued, I went inside. Turned out my cat had cornered the agent and the buyer, and was growling at them. Needless to say, that buyer didn't buy my house.

Why Is It So Difficult To Get A Home Loan?

Caroline Tsou Chai (RE/MAX Realty 100) — Fri, 15 May 2009 08:25:55 -0500

This article is found at: http://realtytimes.com/rtpages/20090304_homebuyer.htm
on March 4, 2009

It seems like every day someone is asking about why it is so hard to get a real estate loan. Just two years ago anyone, and I mean anyone, could get a loan to buy a house or condo. Well, the times have changed and rules from the lenders have changed right along with the times.

Think for a second of home loan guidelines being similar to the old pendulum clocks. Just a couple years ago the pendulum was to the left, and it was probably too easy to get qualified. But now the pendulum has swung all the way to the right, and it is very difficult to get qualified. Often, the lending industry swings its requirements from one extreme to the other without stopping at a sensible middle ground. For now we will not explore the cause of this change, only the new requirements. Keep in mind though that these will change over time as well, hopefully to a more moderated middle ground but only time will tell.

For those looking to get qualified in this tough market, please note the criteria below:

Fico Scores
These must be better than average (600+), and when the credit report is run there must be no Bankruptcy (BK), and likely no "collections" of accounts will be allowed.

Down Payments
Buyers must have some money to put down, no longer will the lenders approve 100% financing, most likely the lenders will require 10-20% down (except FHA which allows only 3% (3.5% in 2009)).

Ample Income
All income will need to be verified with pay stubs two year period and IRS and State tax filings for 2-3 years. Then they will calculate your debt-to-income ratios (looking to see that you can really make the payments). Each lender has different ratios they will pass or disqualify with. As a general rule, these days they are wanting to see much smaller debt-to-income ratios. In other words, the banks want to see borrowers with more income and less outstanding debt obligations.

Stated Income
This (with no verification) is no longer available, meaning quite a hardship on the self-employed, but lenders are very risk averse now. The only exception is if buyers have a very hefty down payment like over 30%.

Proof of Funds
A few months worth of recent bank account statements will be required to show that money is really available for closing costs and down payments.

Reserve Funds
Many lenders require that the borrower have reserve cash on hand to cover two to six months worth of payments.

Non-Occupants
If the property is not going to be the home of the borrower (like a rental) then most lenders will increase the interest rate on the loan.

Limited Holdings Restrictions
are also placed on many borrower that this property will not increase their rental holdings to more than 4 units. Lenders are very suspect of investors that might be over leveraging themselves.

Obviously, only very qualified people can meet the above criteria, and that is just what the lenders want in a time of uncertainty and massive losses. For the time being they can’t justify making any more high-risk loans. Hopefully, knowing what is needed in advance to get approved, buyers will understand that it is critical to prepare early and get their ducks in a row before starting the home buying process. For those lucky enough to be qualified in today’s market, a wide range of opportunity awaits them.

April Market Report - Phillips Ranch

Caroline Tsou Chai (RE/MAX Realty 100) — Fri, 01 May 2009 11:33:54 -0500

Below is a chart showing the number of houses sold in Phillips Ranch from 2006 to 2009. In April 2009, 7 properties were sold and 19 properties went into escrow. Of the 7 properties sold, 1 is regular sale at bargain price, 2 short sales and 4 bank owned properties.

17 properties went into escrow in March and only 7 were sold in April showing the level of difficulty to close escrow successfully. Unless the property is an outrageous deal like the bank owned or short sales selling 10% to 40% below market, buyers are not that desperate to get the deal through in today's buyer's market.

Transactions could easily fall apart in escrow due to buyer's inability to secure a loan or buyers' change of mind. Unless the escrow is closed successfully, sellers need to psychologically prepared for the worst scenario to put the house back on the market if buyer back out from the deal.

The sales volume is almost double this April comparing to last April in 2008. We are continue seeing market price rebounding rapidly for about 10% to 15% since January.

Since the interest rate is still below 5% for 30 year fix rate loan, it is great time for buyers to secure good deal at low interest rate.

How Does Home Warranty Work?

Caroline Tsou Chai (RE/MAX Realty 100) — Fri, 17 Apr 2009 10:42:03 -0500

Home warranty is normally purchased by the seller for the buyer covering a year after close of escrow.

It covers most interior problems that is not covered by the homeowner insurance policy including electrical, plumbing, A/C, water heater, pool and spa equipment depending on the type of coverage purchased.

If not sure about the coverage, it is always a good idea to call the home warranty company to find out if that particular defect is covered. Here's how it works:

1. If a home system or appliance breaks or stops working, the home owner calls the home warranty company.

2. The home warranty company calls a provider with which it has a business arrangement.

3. The specific provider calls the home owner to make an appointment.

4. The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.

5. The home owner pays a small trade service fee about $50 to $60.

Home warranty provides a peace of mind especially for the first-time home buyer with no experience maintaining a home. It will help take out the headache of finding the right contractor and get the problem fixed by licensed professionals promptly.

What Shall Seller Expect After Opening Escrow?

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 14 Apr 2009 11:17:13 -0500

After escrow opens, seller shall expecting the followings:

1. Visit by a termite inspector.

2. Visit by a property inspector that is send by the buyer.

3. Visit by an appraiser who will is send by the buyer's loan agent.

4. Receive escrow paper, sign it and send it back to escrow.

5. Respond to buyer's repair request.

6. Make an appointment with the escrow officer to sign and notarize the grand deed.

7. Receive a check from escrow.

March Selling Madness!

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 07 Apr 2009 17:55:19 -0500

After the passing of the new federal tax credit of $8000 for first time buyers, we are seeing a crazy frenzy of buying in Phillips Ranch and neighboring cities. Buyers with large cash down payment of $100,000 to $250,000 saved in their CD accounts are coming out to make purchases now.

Above is a chart showing the number of houses sold in Phillips Ranch from 2006 to 2009. In March 2009, 15 properties were sold and 17 properties went into escrow.

March sales volume is 3 times more than last March in 2008 and is highest since 2006. We are also seeing rapidly market price increase of 10% to 20% since December 2008.

Since the interest rate is still below 5% for 30 year fix rate loan, this may be the last opportunity for buyers to capture excellent deal with low interest rate.

What To Do When Selling Appraisal Comes In Too Low?

Caroline Tsou Chai (RE/MAX Realty 100) — Sat, 28 Mar 2009 22:52:48 -0500

In order for lender to issue a loan to buyer to purchase a property, lender hires an appraiser to evaluate the market value of the subject property to ensure lender's interest. Only comparable market sales (comps) of local properties sold within the last six months are allowed to value your home.

In today's down market, appraisal can come in low due to the fact that our market is foreclosure driven and the bank owned and short sale properties are selling 10% to 40% below market. The value of those short sales and bank owned homes could affect the value of standard sales tremendously.

In order to avoid appraisal problem, home owners need to either bring their price down to the bank owned price level or deal with the appraisal problem after escrow opens.

If the appraisal value comes in too low, there are several possible solutions to the problem:

1. Ask for another appraisal.

2. Protest the appraisal with documentation of your upgraded expenses.

3. Have the buyers make a larger down payment.

4. Lower the selling price to meet the appraised value.

If option 1 and 2 do not work out, combined solution of option 3 and 4 will be the most common practice. Buyer comes in with a larger down payment and seller lower the price by meeting each half way between the sales price and the appraisal value.

Why Is It Better To Stay Away From Un-Approved Short Sales?

Caroline Tsou Chai (RE/MAX Realty 100) — Tue, 24 Mar 2009 11:31:33 -0500

Recently I have lots of buyer's inquiries on buying un-approved short sale. un-approved short sale occurs when the seller owes more money than the house is worth and the selling price of the house is subject to the lender's approval.

For un-approved short sale, the listing price is not real because it depends on the final approval of the bank. It will take about 2 to 6 months to buy a short sale and the chance of buying it successfully is only 50/50 due to lots of uncontrollable factors such as:

1. Buyer finds another house that is a better deal.

2. Seller gives up on the house by not paying the loan.

3. Bank declines on buyer's initial offer and counter back at a higher price.

4. Multiple buyers bidding on the same house over 2 to 6 months short sale process.

For un-approved short sale, the most logical approach is to avoid it. If the house is really appealing to you, the next most logical thing is to submit an offer first and wait until the price is approved by the bank.

Once it is approved, you can start the regular process by looking at the house and compare it with other similar houses for sale at that time to determine whether you want to proceed with the purchase or not.

Due to the level of uncertainty, educated buyers are staying away from un-apporved short sale and focus their search on bank owned properties, approved short sales and standard sales.

Tips On Successful Showing Of Your House!

Caroline Tsou Chai (RE/MAX Realty 100) — Mon, 23 Mar 2009 12:46:30 -0500

A staged home will sell faster. Here are some showing tips to help sellers stage the house for faster selling.

1. Make It Bright
It is important for buyers to see all the lovely features of your house. So, roll up the blinds and turn on all the lights to make the house bright!

2. Make It Clean and Organized
Be sure to arrange the house so it is clean and organized.

3. Make It Private
Leave the house during the showing and put the pets in the garage to allow buyers to enjoy the viewing of your house at their own pace with privacy.

With little effort, we can ensure successful showings of the house and get it sold quickly!

How To sell Your House Successfully?

Caroline Tsou Chai (RE/MAX Realty 100) — Thu, 12 Mar 2009 11:29:03 -0500

In a down market where most houses stay unsold, in order to get the house sold successfully, there are 3 important steps for sellers to prepare themselves and the house ready for sale.

I. Treat The House As A Merchandise
Psychologically, sellers need to get emotionally detached from the property and treat the house as a merchandise by making it available for showing as much as possible.

II: Hire A Good Agent
Seller will also need to hire a good agent who is a neighborhood specialist. A good neighborhood agent shall be able to perform 2 tasks.

1. Price the house correctly
Houses with pool and/or view worth about 5 to 10 % more depending on the neighborhood. Houses sitting on the t-junction or bordering the main artery route may sell up to 10% less. Does you agent has that level of market understanding? Will your agent be able to articulate the correct value by supplying comparable to substantiate the claims?

House will not be sold if it is overpriced. Most houses for sale will sit on the market for 6 months until it is expired. After 6 months of down market, it may be huge financial lost for sellers since home value dropped about 25% to 45% in one year depending on the area.

Therefore, it is very important to pay close examination of the value the agent is advising and make sure it is calculated by adding and subtracting the pool, view, t-juntion, main artery route factors into the calculation to ensure accurate assessment of the true market value.

2. Market the house correctly
Check the agent's marketing efforts with his/her other listings. Does the agent take good picture of the house? Is the photo of the houses showing only part of the house but not the whole house? Are the interior photos very dark and make the house look ghostly and undesirable? Does the agent makes good marketing flyers that are informative and pleasant to look at? Compare the marketing efforts of the agents (photos, flyers...) and see which agent's promotion makes more sense to you as a buyer. House will not be sold with poor marketing promotion. Therefore, it is very important to look at this aspect closely when picking the right agent to market your house.

III: Dress Up The House Like A Model Home
Sellers need to depersonalized the house by dressing it in a desirable decor very similar to what they do in the model homes by performing the followings:

1. Paint the house with stong color such as red, blue, green, yellow, black walls to neutral tones such as white, beige, mocha and chocolate colors. It is the same for the carpet as well.

2. Remove the clusters on any counter surface. Leave only couple of decorated items.

3. Maket the house as bright as possible during showing by roll up all the blinds and turn on all the lights.

4. Use a shopping cart test to see if you can push an imaginary shopping cart through the house, remove those excess furniture to the garage that is blocking the hallways so the house will look spacious.

5. Fix all the defects of the house and modernize the faucets and light fixtures. If budget allows, hardwood floor and granite countertop will also be a plus. Those are small upgrades that can bring sellers higher selling price.

One of the houses I sold in 2009, the seller put in $2000 upgrades and sold the house for $30,000 more than what their previous agent was listing the house for. Painting, woord flooring and countertop upgrades are always very good investment when it comes to selling of your house. They works wonders on increase the value of the property.

Once seller is ready to let go of the house emotionally, hire a good agent to price and market the house correctly, and dress up the house like a model home, the property shall sell itself the moment the buyers step into the house!