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What could possibly go wrong?

Common Real Estate mishaps, mistakes and headaches!

The glib answer is that there are too many things that can go wrong to enumerate them all.  Equally, there is scarcely ever a “worry free” real estate transaction; were that the case, there would be no need for real estate practitioners, escrow holders or attorneys.

     Look at the big picture.  In the standard purchase agreement there are over eight-hundred items for consideration: points of contract and statute law, general and specific advisories, general and specific disclosures and time frames together with financial terms and conditions.  What can go wrong?  Any one or several of these points can become problematic and it is usually the latter: several. 

     The most frequently encountered difficulties (in good markets and in bad, in times of high interest rates or low) arise in connection with the buyer’s loan.  The problems (let’s drop the psychobabble and stop calling them “challenges”) range from a property that will not appraise at the agreed selling price (hence no bank loan) to the buyer being unable to qualify for the loan sought (hence no bank loan).  A relatively new phenomenon, encountered just since the beginning of 2008, is a qualified buyer, an approved loan, signed loan documents and no funds available from the putative lending institution.

     There are of course many other matters that can come unraveled: timing (all time periods are set in the contract and can only be extended by mutual written agreement), the physical condition of the property (all one-to-four-unit dwellings are sold “as-is, as-found” with repairs or credit from seller to buyer for the making of repairs, being subject to post-contract acceptance negotiations between buyer and seller.

   If you are experiencing problems while working with a real estate agent, try diligently to define the problem: is it the “other agent”, your own agent or, is it just possibly you?   Most of the time the “problem issues” will be substantive, susceptible to analysis and correction by negotiation and, generally, the agent will have the necessary tools and experience to find a resolution

.  However, if you become convinced that your agent is part (or all) of the problem, contact his or her managing broker at once. 

    Most managing brokers hold initial discussions with clients in the absence of the agent; this keeps emotion to a minimum.  Contrary to what seems likely, the broker will be far more anxious to have you go away satisfied that to support an erring agent against your legitimate claims.  Agents are human, they have bad days; no one person is obliged to like everyone and there are the occasional “oil and water” agent-client relationships.  The broker, in such instances, will most often recommend another agent in the office and most of the time this solution works out for all concerned.

    Once you are in contract and have opened escrow there is no real opportunity to change brokerages but the managing broker will either take over from your agent or assign another agent as described above.

    The Real Estate Agency Relationship is very tightly defined by California law; individual agents and their supervising brokers have an extremely high standard of care with respect to the information, treatment and professional support that it provided to you.

Real Estate and the Election Year – What does it mean to you?

“In general, interest rates trend downward in a presidential election year.  If that remains true, it may be a reason to buy rather than a reason to wait on the sidelines.  In trying to gage the impact of any election, the importance of the general economy going into the election year probably can be said to have a greater impact on the twelve- to eighteen-month housing outlook than the election itself.  It’s pretty clear early in the election year of 2008 that the housing outlook is fairly bleak and it probably will not be influenced by a new President irrespective of the party to which he or she belongs.    “The only reason to refrain from buying real estate during a Presidential election year would be if there is a perception that macro economic changes will result in consequence of one or the other candidates being elected.  While it is historically true to think that Democrats will have a looser, more expansive view of government spending and Republicans are more tight fisted with the country’s purse strings, the last two Republican eras have, in fact, increased government spending very substantially while the most recent Democrat administration was the first of either party in a generation to produce a budget surplus.  You need to make a judgment about each election since no set rule seems to exist.    “Despite public perception that a President can “do something” about broad-based economic problems, the reality is that the marketplace tends to govern itself in accordance with the law of supply and demand.  In a down market, as at present, a President is most often reduced to the function of “jawboning” to try to persuade segments of the population or the market not fall into despair.    “In general, if you are a prospective buyer, the process and the outcome of a presidential election should be fairly far down the list of issues that are of concern.  Buy when you are able and want to, buy what you can afford, don’t look to get rich quickly (your home should not be an ATM) and be set to hold your property for the long term so as to optimize your prospects for appreciation.     “And however you view the relationship between real estate and presidential election years, be sure to vote when the time comes!”

Welcome to Jenny Naughtons Real Estate Blog!!!

With 20 years sales experience in the home construction industry and working in the education field for 10 years, I understand the concerns and needs of working families and small businesses. With strong administrative skills, attention to detail, and a warm outgoing personality I provide both professional and personal treatment towards my clients.With  my great experience in Covina, West Covina, Diamond Bar, San Dimas, La Verne, and Claremont real estate as well as intimate local area knowledge, I work extensively to help buyers and sellers meet their real estate goals. If you are looking to buy or sell a home or commercial property, or would just like to know some more information, feel free to call or Email me. As a listing agent in Los Angeles county, my extensive marketing plan gives a homeowner and small business owner the opportunity to get the maximum value for his/her property. For buyers, I help negotiate the best possible deal and search until I find the perfect property. Nothing satisfies me more than seeing the smiles that come with a successful sale or the purchase of a lifetime. Thanks again for choosing me as your on-line Covina, West Covina, Diamond Bar, San Dimas, La Verne, and Claremont real estate source. Please visit my website www.JennyNaughton.com for more information and to search all available listings!!!