Tri-Valley Home Buyers Archives - Page 5 of 6

Should I Offer Less with an All Cash Offer

February 13, 2017 by Dale Corpus Leave a Comment

I get this question all of the time because buyers think that if they have an all cash offer they can naturally offer less for the home. But is this a wise move?

It all comes down to the house you’re buying, the current market conditions, and the seller. Let’s go over some scenarios where it would be appropriate to offer less in a cash situation and other situations where you shouldn’t even consider offering a penny less than full asking price.

Consider the sellers net. This is the amount the seller is going to walk away from. This is also where your buyer’s agent and the listing agent need to come together to negotiate the best price. If the seller is already at their lowest possible price that they can go and walk away either breaking even or with barely any net profit, you probably will not get accepted on a lower-priced offer regardless of whether it’s cash or not. Sellers don’t want to bring money to the table; they want to walk away with a profit.

You also have to consider the market. In the Tri-Valley area, there are micro markets throughout Pleasanton, San Ramon, and Livermore. Within those cities, there are even smaller micro-markets where the real estate industry is doing very well and other areas where homes take longer to sell. It’s going to depend on the house that you are buying, the net profit, and what the market is doing in that particular community or neighborhood.

If the home is in a popular neighborhood where homes sell within a week or two, you probably can’t offer much less than the asking price if any discount at all. You may also need to increase your price in a hot market. You will have plenty of competition and if there are other cash buyers in your area, coming in with a lower price than your closest competition will get your offer thrown out.

Alternatively, if you are buying a home in the neighborhood or community where the properties don’t move as quickly, it will depend on how long the house is on the market and if it has been already reduced. You may have a little bit of negotiating power when it comes to cash in these types of markets. Again, talk to your buyer’s agent about the net profit for the seller and if they can even afford to go any lower.

Terms also matter. When presenting a cash offer the terms will also be either attractive or unattractive. If you’re offering a quick closing, no contingencies, a high earnest money deposit and you’re not lowballing the seller too much, your offer may be considered. Plus, if there are no other offers on the table, regardless of whether it’s cash or a finance offer, you might be more likely to get an accepted offer.

What about a short sale or foreclosure?

If you’re offering cash, this is very attractive to banks, which hold power to accept or decline the offer. Even though you offer less with cash doesn’t mean it will naturally be accepted. Banks will typically respond faster, however, if you’re offering cash. The lender or the bank will need to evaluate their net profit as well to see if they can walk away with as much as possible or as little loss as possible.

It also will come down to the condition of the house. If the seller has chosen to list the house as-is, and it is in great need of repair or upkeep, it seems reasonable to offer a lower price if the market does not support its current asking price. This is where a qualified, knowledgeable and experienced real estate agent comes into play. Only professional real estate broker or agent will be able to tell you if the home is priced appropriately as is or if a low price offer would be an acceptable move.

So, you can see that there are a lot of different factors when it comes to offering a lower than the asking price if you have all-cash. Using a real estate agent to find you the best home and off of the best advice when it comes to negotiations and offer is really the key to getting the price you want on a home you love.

The Most Common Questions Homebuyers Ask

January 26, 2017 by Dale Corpus Leave a Comment

While it is a well-known fact that there are a million and one questions when it comes to buying a home, the truth remains that we might not fully be aware of what those questions truly are. Of course the list of possible questions is longer than any of us care to read, however, we are left wondering what questions are the most common and the most likely to be asked. With the chaos and unavoidable stress that comes with buying a home, unfortunately even the simplest and most common questions can sometimes get missed. Whether you are selling your home and are hoping to get an idea of what questions you should be prepared to answer, or you are searching to purchase a home and want to be sure to hit the nail on the head, here are a few common questions to keep in mind.

What Can I Afford: If this isn’t a loaded question then I don’t know what is. There are multiple factors to look at when you are budgeting for a home. While we would like to believe we can spend our full income on our homes that isn’t necessarily the case. With recurring payments on vehicles, daycare bills, medical bills, household utilities, prior obligations, and more you need to make sure you are deducting your allotted funds from your income to get a true and accurate idea of where your budget truly lies. There are many different home calculators available online that will even factor in your revolving debts for you!

When Can I Make an Offer and How Many Homes Should I see First: Sometimes it is hard to know when you can and/or should make an offer. The best answer to these questions is simple; it’s completely up to you! While it is unlikely that homebuyers tour one home and immediately make an offer it is definitely possible. Whether you tour one home or twenty homes, putting an offer in is something that ultimately you should be comfortable with. After all, it will be your home and nobody else’s.

When Do I/We Get Keys: The closing process can often be a long waiting game. While the closing process varies depending on the state of the home, inspections, banks, etc. the average time to wait for a home to close after your offer has been accepted is generally 30-45 days.

What is Fair: We all like to save our finances when possible which can leave us wondering what a fair offer could be. Generally speaking, taking 5% off the asking price of the home is an offer than typically won’t cause any havoc. By offering anything below that you could be offending the homeowners and find yourself in quite the pickle.

Can I sell my Home while Buying a New One: While the answer to this question is yes, you need to be aware that this process is not an easy one. There are many different factors that make the equation of selling and buying a tricky one. The main thing to understand when selling your home is that the timing might now work in your favor either leaving you homeless for a certain amount of time before your new home closes, or stuck with a home that hasn’t sold and being solely responsible for two mortgages. Ask your realtor for more information!

Is a Home Inspection Needed: While we may not see the need for an inspection it could save your butt in the long run. An inspector will look at any underlying problems that we wouldn’t be able to see with the naked eye. Checking things like the roof, electrical systems, heating and air, plumbing and more you can save yourself a pretty penny by foreseeing any issues that could potentially arise in the future. This also allows you to negotiate sale price with the seller should there be any problems.

I Changed my Mind, Can I Back Out: This is common don’t panic. Sometimes we are so caught up in the moment that we don’t realize we put an offer in on a home that might not be the right fit for us. Luckily you are able to back out at any point during the home buying process. The only downfall to this is the possibility is losing your earnest money. Of course, if there is a valid reason to why you are backing out your earnest money will be refunded.

While the questions could continue on until we’ve written a novel with multiple volumes, these common questions are the ones that many people focus on or want and need answered. If you have any further questions regarding either buying or selling a home discuss them with your realtor.

Buying a Home in 2017? Start Now

December 19, 2016 by Dale Corpus Leave a Comment

If 2017 is the year you are going to be a homeowner or perhaps you’re going to sell your house and purchase a new one, start now before you’re even looking at any homes.

Let’s start with first-time homebuyers; if you’ve never purchased a property before but you’re tired of renting in 2017 is your year to be a homeowner, start now, immediately, by saving up some money and getting your credit in good condition. [Read more…]

5 Ways You Can Protect Your Credit Score

December 15, 2016 by Dale Corpus Leave a Comment

Protecting Your Credit Score

Your credit score; that magical little number that tells lenders how big of a risk you are when they take you on as a borrower. It can literally mean the difference of getting a loan or not. Your credit score can also affect your interest rate and how much you’ll be paying monthly in a mortgage payment or any type of loan. You’ll want to protect your credit score and increase it if possible and here are some ways to do that.
[Read more…]

Buying Strategies for San Ramon Real Estate

December 7, 2016 by Dale Corpus Leave a Comment

Sarn Ramon is a great place to call home and as the Tri-Valley area grows more and more new communities pop up all the time. Finding a home may be easy; finding the right home is the tricky part. I want to make your home-buying experience something to remember – in a good way, of course. I am a dedicated buyer’s agent in the Tri-Valley area helping folks find the right home at the right price on their own terms. [Read more…]

Baby Boomers Buying Houses in the Tri-Valley

November 21, 2016 by Dale Corpus Leave a Comment

Baby Boomers are Buying in California’s Tri-Valley area more and more.

Good idea or scary move?

It all depends on where you are in life, financially and physically. Should you downsize or invest? Move out or move up? These can be a lot of scary questions as baby boomers hit their retirement age. You may have made a lot of money over the past 30 years but with the drop in home prices over the last 8 years you may have lost a lot of it too. So where does that leave real estate investments today?

Many baby boomers have actually been delaying retirement for the basic fact that selling and downsizing just isn’t an option. They may owe more than the home is worth and this keeps them hanging onto it until it bounces back. Well, it has. Maybe not with the vengeance some would like but stronger certainly than we have seen in the past 4 years. The number of existing homes sold is up about 8% nationwide according to the S&P and prices have reached over 12% higher than they were this time last year. So now baby boomers are toying with the idea of selling or renting out and downsizing. Which is the best option and which makes the most sense financially? – How to Choose the Right Lender

Generally speaking, we know it’s better to own than rent but that’s usually if you are going to stay in your home more than 5 years. Is that something baby boomers want to consider at this time? It all comes down to ease of living which has many implications as far as maintenance, finances and responsibility. If age 65 is no longer the retirement age, keeping a home or investing in new real estate may be well within the realm of possibility for baby boomers. Buying a new home is sometimes a strain on the cash flow, not just in the down payment but in monthly taxes, insurance, fees and the mortgage payment. Even if buyers plan on paying cash, they must consider the inevitable costs associated with owning real estate. One smart plan may be to buy a good rental investment, live in it for a while, and then rent it out when you are ready to move on. The equity remains and collects while the retirees are off enjoying the freedom.

[5 Things to Know Before Buying a “For Sale By Owner” House]

So what makes the most sense for you? It really comes down to all the many variables associated with your specific retirement plan. I would love to talk to you about the options that might work when it comes to real estate in San Ramon, Pleasanton, Danville or Dublin. Call me today and let’s talk.

5 Home Nightmares Buyers Don’t Think About Until They Need to Sell

November 3, 2016 by Dale Corpus Leave a Comment

Buying a house with the idea of selling it isn’t usually something most homebuyers think about when browsing properties and looking through listings. However, there are things that you might not think about as being bothersome as a homeowner but could be someone else’s nightmare when it comes time to sell. Here are five resale issues many buyers don’t think about when purchasing property.

#1. Power lines.

Myths, perceptions and superstitions carry enough weight to make a buyer back out. Power lines are one of those issues. You might not have considered power lines being a problem when you moved in but many people feel that living too close to high-voltage power lines could make them sick or even give them cancer. However, there has been no research found that supports this claim. However, perception is an issue and if people don’t like power lines, you may have a heckuva time selling your home if you live close by. You might want to consider this before purchasing a property close to high-voltage power lines.

#2. Close to a business.

This is a tricky one; studies have shown that homes close to a Starbucks or Trader Joe’s actually increase in value but being too close could have the opposite effect. Living close to a grocery store that gets its deliveries all night long could be a nightmare for people trying to sleep. Businesses can be loud and disruptive so take this into consideration when purchasing a home close to just about any type of business.

#3. New subdivisions and developments.

This again might not seem like an issue at all. Many homebuyers love brand-new properties but, they can also be a drawback if the development is still being constructed. Construction noise, construction workers, large trucks and dangerous equipment could be a drawback to many potential buyers. If you’re planning on buying and then selling within a couple of years, you might face a lot of problems, especially if the subdivision is still being developed. Many buyers will simply go to a brand-new home in the development rather than a resale home in the same neighborhood.

#4. Privacy.

It’s important to consider privacy when purchasing a home and how future buyers would perceive it as well. A home that backs to a busy road or highway might be private but you also have to deal with the noise. Some buyers prefer a long, private drive but this can also have it’s issues with safety; a well-lighted neightborhood may seem much safer than a dark and quiet road.

#5. Environmental issues.

This all depends on where you are located, but things to consider would be a home in a forest it area could run the risk of forest fires or downed trees during windstorms; and exposed home with no trees and a west facing backyard that gets blisteringly hot in the summer. These are subtle features for sure, but they can be a big deal once you’ve lived there for a while.

It’s not my job to choose the home for the buyer but I do want them to know that if they purchase a home with an unchangeable adverse situation, it could potentially sell for less than similar homes. Buying with the idea of selling can help you make a wise decision not only now but for your future.

How to Understand the Seller’s Disclosure Report

September 26, 2016 by Dale Corpus Leave a Comment

The seller’s disclosure report or form will be filled out by the homeowner/a seller before listing the property explaining in detail any known issues, remodels, renovations or problems that the house currently has or has had in the past and has been fixed. Anything that the seller knows about a property must be disclosed on this form. Seller’s disclosure forms vary from state to state will have some of the basics that buyers will need to know or understand before purchasing the property.

Here are some of the basics of most sellers disclosure forms or reports have that buyers need to understand.

The age of the roof.

This is more than simply knowing that the roof is 10 years old; it’s knowing what type of roof it is that you know the lifespan of that material. If you are only 10 years into a 40 your roof, you know that the roof will have some life left to it for quite some time. If you are unsure about the life of a particular roof material ask your real estate agent or home inspector. They can give you tips and advice as to how long a particular roof will last.

Plumbing.

Sellers should be able to explain any and all plumbing issues that they know what. You want to know the age and type of the pipes, whether it’s copper, galvanized steel or brass. Some of these can last up to 100 years but polybutylene or lead pipes could mean trouble. Some of these materials may need to be replaced before you move in.

Heat pumps, furnaces and water heaters.

Most gas water heaters usually last about 10 years and electric ones about 15. Most water heaters don’t need to be replaced until the leak or fail. HVAC systems or heat pumps work harder the older they get so a 20-year-old HVAC system will be working about 50% harder and less efficient than a new system. While this may not be something to replace, it is something to be aware of for your future in the home.

Renovations and remodels.

If the seller had conducted any remodels or major renovations they should be able to produce a building permit. If no permit was done on a major remodeling issues that require a permit for your city or state, you could be liable for mistakes in the future. Anything that was done that should have had a building permit needs to be signed off on before you agree to purchase the property. This is for your safety and liability.

Cracks in the wall and foundation.

Cracks can be structural damage but they also could simply be a settling. Newer homes are notorious for getting cracks in the ceiling, walls and corners simply because they have settled now that people have moved into the home or the foundation and ground around the home has settled. While this may not be cause for concern it is something to ask your home inspector about. Read more: Do New Homes Need Inspections?

Animal damage.

Sellers should be able to tell you if there’s been any major animal damage while the home was under their ownership. This could mean past issues, where they have hired an exterminator, major damage, rats, mice, snakes or other issues that may have caused damage to the house under the seller’s ownership. Make sure all of these items have been addressed and taken care of before you take ownership.

Asbestos and lead paint.

Sellers need to answer honestly of they know that the home has asbestos or lead paint. But, most homeowners have not owned the home for the last 40 years total so whether or not the property has lead paint in it or not, the seller is not going to know. The seller may know if there is asbestos but anything that they do know, they have to disclose.

Understanding the seller’s disclosure form doesn’t have to be difficult but if there is anything you don’t understand don’t hesitate to ask your real estate agent or the listing agent. They can identify and explain any detail and unfortunately if the seller simply does not know about an item dues to issues happening before they owned or if it is an investment rental property, there’s not much the buyer can do about it.

This post previously had a disclosure image that was creative commons and has since been pulled into a license photo. The image has been removed.

Do New Homes Need Inspections?

September 6, 2016 by temineth Leave a Comment

Buying a new home is an exciting venture. New home/new you! Despite being very exciting, homebuyers may think they can skip the inspection because if something is brand new it should be perfect. Right? Just as a brand new car may have issues, new homes can too and that inspection can be a real revelation.

Not only should you conduct a final walk-through of your new home, but also have a non-biased home inspection. If you are customizing the house, you want to make sure the builder or developer used the correct materials and finishes you chose. Perhaps the tile is the wrong color, slightly crooked or the carpet should have gone down the hall instead of stopping at the top of the stairs. These little details are obvious to homebuyers that chose the materials but there are things that go far deeper than cosmetics in new homes that a professional home inspector should check out and correct before you sign on the dotted line.

Defects can happen and many new homes come with warranties to guard against such things. Nevertheless, if you do not know about them, you cannot argue for them. If you have never lived in the home, you may not know that you can hear people walking on the second story, or that the pipes knock when using the washing machine, or that the back door rattles when the front door closes. While a home inspector may not be able to catch all these issues, they can inspect places most homeowners will never tread. This includes the crawl space, attic, roof, and under sinks for plumbing issues.

Home inspectors will be able to tell if the installation was proper. Most new homes have builder grade materials and appliances but a new homeowner may not realize some appliances are not adequate for the size of the home. We inspected a 3,000 sq. ft. home and found that the installed furnace only heated 1500 sq. ft. This would have cost the homeowner hundreds if not thousands in heating and cooling costs! Most homeowners would not realize this until they are calling the electric company wondering why their bill is through the roof.

You would be shocked to discover what some of our inspectors have found; missing siding, unattached ductwork, broken roof trusses, raised roof shingles and more! These things should be fixed before homeowners take residence.

Having a building inspection and signing off on a permit is not the same as a home inspection designed specifically for the future homeowner. It pays to have this type of inspection done; every. single. time…. Do not neglect it!

Contact me today to find a home inspector in your area for your new construction home.

10 Tips to Make Your Move Really Easy

August 22, 2016 by Dale Corpus Leave a Comment

Nobody likes to pack up the entire house and move but most of us do it at least once or twice in our life. If you’re looking at moving or relocating to the Tri-Valley area or maybe you’re moving out of the area, you may be researching some of the best tips and tricks to make your move so much easier. Here are 10 easy tips that you may never have thought of before they can make your relocation that much easier.

#1. Box of essentials.

Many people pack the wrong way. You want to make sure that the items you want to get to quickly are at the back of the truck or the easiest to obtain. This could mean your coffee maker, important documents or records. But you also want a box of essentials to go along with you, especially if you are relocating a long distance. These essentials could be blankets and pillows, toiletries, a first aid kit, any medications, phone and tablet chargers, toilet paper and paper towels, paper plates and utensils, pet food and bowls, credit cards, passports, Social Security card and credit cards.

#2. Hook up TV and the Internet as soon as possible.

Many utilities only require a phone call to get things switched over to your new location so you want to make sure that your Internet and TV are some of the first things to be hooked up so that you can start getting your email, have access to the Internet and some entertainment if necessary.

#3. Bring something for the kids.

Kids can find moving to be extremely boring so you want to make sure you have items for kids such as coloring books, crayons, games, tablets or other items that can keep them entertained, especially if you have a long way to go.

#4. Nextdoor.

The online company Nextdoor is a great way to network with your new neighborhood. You can ask questions about the neighborhood, find babysitters and handymen and a little bit about your particular neighborhood before moving in.

#5. Don’t forget to leave important items with your last house.

This could be all the keys that you have, your garage door opener that you may have stuck in your visor and forget that you have it, any other items that the new homeowner will need to operate their new home.

#6. Changing the locks.

You never know who may have a house key to your new house out there so it’s always a good idea to change the locks before you move in.

#7. Call a cleaning service before hand.

If you’re moving a long distance, call a cleaning company and have your real estate agent let that cleaning person in for a thorough cleaning before you even arrive.

#8. Pack the essentials last.

Just like we had an essential box for the trip, make sure that your coffee maker, any documents, taxes, phone numbers and close are easily accessible as soon as you get to your new house.

#9. Ask about movers insurance.

If you are hiring a moving company to move your items, ask about their insurance policy and get at least three quotes from different moving companies and if they do in-home assessments so your estimate is as accurate as possible. You also want to make note that moving expenses can be tax-deductible.

#10. Research schools and kennels ahead of time.

Before moving you want to see what school your children will be in so you are prepared to get them in school right away if you’re moving during the school year. You may also want to make note of doggie daycare is in the area, kennels, doctors, dentists and other places that you may frequent.

These are just some simple items that a lot of people forget to do. If you’re relocating to the Tri-Valley area of California contact my office today for more tips and tricks to moving and finding the right house for your needs and budget.