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jennynaughton — Fri, 01 Aug 2008 22:50:30 +0000

I have a real deal for you.

What could possibly go wrong?

jennynaughton — Thu, 24 Apr 2008 17:33:08 +0000

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.

How do I choose the right community for me? If I have kids? What are the best resouces?

jennynaughton — Sat, 08 Mar 2008 07:59:45 +0000

“Good” communities and “bad” communities are very much in the eye of the beholder. Although some areas may be more prone to crime, none is completely free of it. While there are outstanding teachers and gradations of school districts, neither category is guaranteed to be “best”. “If the issue revolves around children, their ages must be taken into consideration: very young, open up the Megan’s Law (read: “convicted sex offender”) website and learn if there are prospective predators close by. Don’t rely on either a web based iteration of the district schools or on the real estate agent’s assessment of local education; go mano-a-mano with a school administrator in his or her office and ask your questions point blank. “Need soccer or ballet? You’d be surprised what will show up on both the Chamber of Commerce and individual City websites. “Remember that all real estate is local; look at the newspaper’s monthly summary of city-by-city sales for your county and notice that cities with two or three Zip Codes often have one with price increases, another with price declines. There is no way to determine in advance what trends the real estate market will take with your investment, but there is a wealth of history about a community’s past growth from any good real estate practitioner. “In the end, where you live must depend on so many factors that “advice” on how to chose a community must be very general: what can you afford? how far must you commute to work (fuel is part of your housing expense!)? are there facilities and services that the family needs or wants? “Choosing where to buy is very much the responsibility of the buyer. All other who assist, from the real estate agent to that confronted school administrator can only offer small parts to fit into the larger puzzle”

What if I start to fall behind on my mortgage payments? How much will I lose if I have to sell?

jennynaughton — Thu, 06 Mar 2008 08:30:55 +0000

“We’re sorry, but the only answer is that there is no “best” answer. So much depends on individual circumstances that we cannot give a one-size-fits-all suggestion for relief. Here are several of the factors that you must evaluate:

1. Is my house worth less than the combined value of the mortgage debt?

2. Does my immediate neighborhood have one for sale sign for every 50 houses or is it more like eight or ten per 50?

3. Does my lender have any type of “rescue” program for people in my situation?

“If your lender will renegotiate your loan(s) to a payment schedule you can afford, start renegotiations at once! “If you determine that there is no renegotiation to be had from your lender(s) and if your house is worth more than the value of the mortgage encumbrance(s), seriously consider listing your house for sale before further market erosion reduces the value below the mortgage-plus-closing-cost amount. To help you guide yourself through this calculation, recognize that your closing costs are going to be about seven percent of selling price. “If, on the other hand, you home is already worth less than the amount that you owe, you need to get into a “short-payoff” listing and sale as quickly as possible. In a short payoff, the lender agrees to accept less money than is owed. “As to the issue of loss of your home’s value, that too has no single answer. Various surveys suggest that California has suffered about a 10% decline in home value 2007 vs. 2006. But all real estate is local: there are portions of Los Angeles County in which values have actually increased slightly in the past year while other areas have seen a loss of more than 20% from the 2005-06 peak value. You’ll need to have a comparative market analysis done to determine the current value of your home; ask more than one real estate agent to provide a price opinion so that you have a point of reference. “None of this is very comforting, but these are not comforting times in the real estate market. Seek the best advice you can get from trusted advisors (tax, real estate, maybe even legal) and decide a course of action. “And remember, the value of you home is not what it was a year ago, not even three months; if you must sell, get ahead of the market, price below the competition and keep your dwelling as attractive as possible during the listing period.”

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

jennynaughton — Tue, 04 Mar 2008 08:31:51 +0000

“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!!!

jennynaughton — Sat, 01 Mar 2008 06:55:40 +0000

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!!!