Results from the J.D. Power and Associates 2011 Home Buyer/Seller Study, recognize RE/MAX for providing the
highest overall consumer satisfaction for both home buyers and home sellers.

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For the wealth elites who desire safety and security in East San Gabriel Valley, The Country Estates in Diamond Bar offers guard gated entrances, 24 hour security with continuous vehicle patrols by well-trained guards, lighted tennis courts, clubhouse, swimming pool, children’s playground, walking trails, and a 134 acres of untouched wilderness park complete with a natural stream and abundant wildlife.

They are a collection of a little over 1000 homes in The Country with lot size average over an acre sitting atop the rolling hills of Diamond Bar, most with panoramic view of hills, mountains and the city lights.

50 homes were sold in the past 2 years with size ranging from 2,200 sq ft to 10,700 sq ft and price ranging from $620,000 to $5,450,000. Of all the houses sold, 30% of them were sold over $2M. Average price per sq ft sold is $325 and the average time to sell each home is 5 months.

On top of it's safe environment and acreage lots, The Country Estates offers relaxing country setting with city convenience. It is reserved for only the most discerning buyers.

I just closed a transaction for a beautiful 2000 built home in an upscale gated complex in Chino Hills near Soqual Canyon and Butterfield Ranch. It was a bank owned property owned by Wells Fargo. The market price is around $400K to $415K.

Bank initially listed for $369,000 then reduced it to $339,000 after it was on the market for 2 weeks. I submitted an offer for my buyer at $300,000. According to the listing agent, since Wells Fargo wants to close this year's book in December, they accepted my buyer's offer. We ended up close the transaction in 7 days.

Now my client and his family are ready to move into their new home for Christmas! It is a fulfilling feeling knowing that I helped a family purchased a great home at a deep discount. This makes a joyful Christmas for me!

For out of the area buyers, they are often confused about the difference between Chino and Chino Hills.

Here's a quick comparison chart of the 2 cities.

As you can see from the chart, Chino has higher crime risk, less average household income and higher population density.

The following is a comparison chart for the neighboring cities. Phillips Ranch is an un-incoporated area of Pomona and it has no published info. It is bordering Diamond Bar and Chino Hills with very similar statistics.

In a typical home sale, agents for buyers and sellers each take a commission of roughly 2.5% to 3%, for a total cost of 5% to 6%, paid out of the seller's proceeds.

It is nature for sellers to save money by negotiate a lower commission with their agent. But, does sellers really save money that way?

According to MLS data, for all 3-bedroom units sold this year in Montefino, a large townhome complex in Diamond Bar, shows properties that offer 6% commission were sold an average price of 7% higher than the 4% ones. Sellers actually net $17,820 (4.4%) more by paying 6% commission instead of 4%.

A study in 2005 by National Association of Realtors echos the same finding. According to the study, the median 2005 sales price for a home that was sold by an agent was $230,000, about 16 percent more than the $198,200 median price for a For Sale By Owner home which offers little or no sales commission.

If you have 2 job offers with exactly same assignment, one pays $5000 and another pays $6000, which one will you pick? The one that offers higher compensation will be more attractive for most job seekers.

Therefore, houses that pay higher compensation will entice more showings and cooperation from other real estate agents. Since 90% of home sold are by another agent representing the buyer, higher commission becomes an important factor in getting top price for the house. This is why sellers end up netting more if they pay a higher commission.

In contrary of the common logic of save more by paying less, in real estate, sellers do get more by paying more commission.

Sales remains very strong in Phillips Ranch, Chino Hills and Chino while it slows down in Diamond Bar and Walnut for the month of September. Here is the latest price changes for August 2010 according to Dataquick:

Walnut -7.3%
Diamond Bar +9.1%
Phillips Ranch +21.1%
Chino Hills +13.1%
Chino -1.6%

Below are the charts of number of homes sold in the past 3 years in the neighboring cities.

Often times we see a large 2-story home in a single story neighborhood. In an attempt to increase the value of the house, homeowners may make improvements to the house that fall outside of the neighborhood norm.

A home is consider overbuilt when it has been expanded or improved to a level beyond that of most homes in the area. Those homes can be difficult to sell for a reasonable price because typical buyer can not afford it for the area.

Statistically in our area, overbuilt homes can fetch up to 20% more than the neighbored homes. If a house is in a $500,000 neighborhood, buyers will be willing to pay up to $600,000 to purchase it.

Even if the overbuilt home is more desirable than the surrounding properties, buyers may choose to spend their $600,000 in a $600,000 neighborhood instead. Homeowners may have difficulty recover their investment if the house is overbuilt.

I found this blog very funny and true.  Since short sale involves the bank (processor) and the investors (people who owns the loan), there are a lot of events that are not controllable or predictable by the agent.  This article speaks for my short sale experience.

Homeowners who relocate or move up to another home often wonder whether to sell or to rent the old one. Here are 2 questions to ask:

I. Do you making money if you sell your home?

First thing you need to consider is whether you are making profit from the selling of your home or not. If you are making profit, you may need to look into the tax aspect.

If you live in the same house for the past 5 years, each spouse can claim up to $250,000 profit tax free or $500,000 for both of you. For each year the house is rented, you will be losing 20% of the tax exemption.

If the house is rented for 5 years, you will lose all your tax benefit and need to pay about $10K federal income tax for $100K profit. Please consult your tax advisor for your individual financial situation.

II. Do you make money as a landlord?

Landlord is simply a business. Does your rental income pay for all expanses including mortgage payment, property tax, HOA, insurance, vacancies, and maintenance cost?

If not, can you afford to subsidize the lost every month? Whether you want to keep the house for sentimental reason or not, this is a very realistic and practical question to ask. In order to stay in business long term, you need to run a profitable one.

Before making decision on whether to sell or to rent, it is very important to factor all the considerations into the equation to ensure that your decision is for the best of your financial well being.

Sales Remains Strong In Phillips Ranch

Sales remains strong for the month of August in Phillips Ranch. 27 properties for sale, of which 8 of them are short sales, 21 pending, and 16 houses sold. Inventory level is still very low at 1.3 months supply.

Phillilps Ranch is highly sought after by buyers for it's quiet garden like setting, excellent schools and easy access to 57, 71, 210, 10 & 60 Fwys.