If you are relocating to Southern California (or many other parts of the country) you are likely dealing with a buyer's market. If you are a bit gun-shy about buying in such a market, here are some good reasons to do so:

1. Inventory - there are LOTS of choices of style, price, location, age, condition, etc. If you can't find what you want perhaps it doesn't exist (maybe an exaggeration). But don't let the numebr of homes overwhelm you and keep you from making a decision. Some poeple look and look and look, thinking they will find the perfect house, and never get anything, or lose the one they really wanted.

2. Incentives - this is especially true for new homes and condos. Builders are offering all sorts of incentives to purchase from their inventory, including upgrades, creativity around closing costs, etc. Don't expect a huge price reduction since this create appraisal (and thus financing) issues as compared to other homes that the builder sold in the recent past)

3. Competition - sellers are competing for buyers, not the other way around.

4. Mortgage  rate - pretty favorable right now, close to what we saw at the beginning of the year. Will they go lower...maybe. But more likely they will go up. And if you are a First Time Buyer there are some great programs available with great rates.

5. Seller Negotiation - Because of the market sellers may be willing to negotiate, depending on the situation. Don't count on it, but we do see closing costs or a portion of them being covered, and other concessions being made. Many sellers are motivated (although depending on THEIR situation this does not guarantee they can or will be very flexible).

6. Prices - it depends on where you are looking, but in some areas prices are very stable and are not moving. While some communities have seen small drops one cannot (and probably should not) assume prices are going to drop. And if they do but rates go up you possibly wash away any gain you get by the price drop. Consider the tax advantages if you are not in a position to profit fr0m this as a renter and what you may be losing out on.

Don't believe everything you read in the media headlines. Get the information you need from a knowledgeable REALTOR who can tell you what is going on in their market, instead of depending on the array of statistics that the media quotes. The information is generally taken out of context and they like to report only the bad news and not the good. Be wary...and question what you read.

Clearly buying right now is NOT right for everyone, but avoiding the market because of what you read may result in your not getting a good deal on the house you really want and can afford. And a knowledgeable REALTOR in your area can help you avoid overpaying too!

One last suggestion - take a look at this article I posted previously on Bubble Sitting. Waiting to buy may NOT be the best financial strategy for you.

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Many of you coming from other areas may not be familiar with Value Range Marketing in terms of pricing homes on the MLS.

Sellers and buyers often have a price range in mind when they are looking to sell or buy. Here in Southern California (and other areas as well) it is becoming more common for sellers to state a range of price when listing their homes, at the urging of their REALTOR, in order to more effectively market the home, say proponents of the method. For example, a home may be listed at $575,000 - $625,000 and the listing will state that the sellers will entertain offers in that range. VRM stands for the numbers on the dial pad of your phone that correspond to these letters, and it is fairly common to see the last three digits of the price range be 876 ($625,876), especially if the MLS will not allow you to put a range in the price data field. Sometimes the range may be very broad, especially for higher-priced homes, while other ranges may be quite narrow. You will often see a spread of about 10 - 12% but there seems to be no agreement on how it is done.

There is no guarantee that an offer in the range WILL be accepted, however, since the contingencies may not be satisfactory to the seller. And the final offer that is acceptable to the sellers may be near the top of the range or closer to the bottom. And buyers can, if they wish, submit an offer lower than the range, which may or may not be acceptable. Proponents of the technique say that, because it opens up a wider range of buyers due to the broader price range, homes priced this way sell faster and for more money. But there are studies that suggest this may not be so.

While more common in this market, this method remains somewhat controversial both with consumers and agents, and many do not understand nor agree with it. But now you know a bit more and will be better prepared when searching for a home. Talk with your REALTOR so you will know how to proceed.

And if you are listing your current home for sale, you may want to discuss this strategy with your agent. If this method is common in your area it may make sense. But if  no one uses it, acceptance and understanding will be more difficult. It may be helpful, or not.

I recently posted a fairly lengthy article on ActiveRain, a real estate network I blog on, about Carlsbad, CA where I currently live. There are a number of pictures and lots of information about the town and things to do and see. Rather than report it here, you can visit by clicking here.

If you are thinking about Southern California, this article wilI give you a good idea of what life is like here (in addtion to what I write about in Fans of Coastal San Diego). I hope you will enjoy it.

We have 3 days for a house hunting trip that is paid for by my company. How can we maximize our time?

Three days is a good amount of time, actually, but you will need to be very focused and do your research thoroughly in advance so you will be fully prepared.

Spend as much time as possible looking at listings on -line, after you make some decisions about what's important to you (and, of course, at this point you must have gotten pre-approved so you know exactly what you can afford). Develop a good list of the properties that interest you and you would consider buying (don't be TOO rigid, as things tend to disappear or you will otherwise rule them out,so if the list is too small you may have nothing to choose from). Consider the areas you like, the distance for commuting to work, schools, access to transportation and amenities like shopping, etc. Price may restrict you to a limited area, but try to be open to a range of properties and neighborhoods, as you can rule them out on your trip if they really don't appeal to you.

Let your REALTOR know in advance the properties you want to see so s/he can arrange a tour of as many as possible. It is not unreasonable to see 10-15 a day (some people see more), but that will depend on the particular market and the number of homes that are in your price range. Your REALTOR may also suggest homes that fit your criteria that for one reason or another did not end up on your list, or may know of new things that will be available. You are there to look at as many homes as you can so you can decide, so expect to spend long days touring. Check to see if anything new has come on the market when you get into town so it can be added to the tour.

Go in with the attitude that you WILL buy a home during your visit, not  "I hope we can find the home we want." The right attitude will help you focus on the goal of making a decision. Keep in mind that no home is perfect, and narrow your list of possibles down as you tour, then go back to see the top contenders so you can decide. Watch out for the "kid in the candy store mentality" - that maybe there will be another home out there that you will like better. With that approach you can keep looking forever and never make a decision.

Lots of folks who are relocating, or thinking about it, have questions - even if they have moved before. From time to time I will post those that are asked most frequently with answers to help YOU with questions you might have. But by all means, if you have a question, please post it and I will post the answer promptly.

We are buying a home on the other side of the country and will only have a few days to look at homes and then buy. Do we have to stay in the area to get through all the paperwork?

No, you don't. You don't even have to see the house live to buy it, although most people are not quite ready to by a home virtually. But once you decide, everthing that you need to sign for the offer can be done remotely with the use of technology if you don't have time to do so before you return home. You will need to leave a deposit check (or that can be mailed, overnighted or funds could be wired). While it is advisable to attend your home inspection personally, it is not required - your agent can go, and you can talk to the inspector on the phone to review the report once you have it in your hands. With overnight mail, faxing, and scanning of documents, everything you need to do can be done from your home, wherever you are (assuming you have computer access and/or fax/overnight mail delivery).

Make sure you are working with a REALTOR who is tech-savvy - an e-PRO is the way to go.

"Make the most of yourself, for that is all there is of you."     - Ralph Waldo Emerson

If you are going to be selling your home in order to relocate, you should consider staging it!

Keep in mind that you are selling your HOUSE (notice I said HOUSE in the title) not your HOME (your home is in your new location) and, as a product it needs to be treated as such. Staging your home will show it to its best advantage and allow buyers to envision themselves living there, as opposed to being distracted by all the personal stuff. Clutter is the worst enemy and the biggest challenge, and since you are moving any way, there is no reason not to go ahead and pack up as much as you can and clear out things that are not necessary.

Statistics gathered by the organization founded by Barb Schwarz, who created the home staging concept years ago, indicate that homes that are staged sell quicker and for more money - this is true nationally and in all markets. Staging is not the condition of the home, nor is it decorating. Think of it like detailing your car that you are trying to sell - the better the car looks, the faster it will sell and the more money you will get for it. As Barb has said, "buyers only know what they see, not the way it's going to be."

Consider having a professional stager to assist you in creating the look that will sell your home, and consider it an investment in your house. It's cheaper than your first price reduction. For more information, check out Barb's site, Staged Homes. Feel free to email me if I can help in any way or answer any questions.

Need to get rid of clutter? Try 1-800-GotJunk. And if you need a place to store the extra boxes and furniture (no, the garage is not the right place as this should be staged as well), call PODS (Portable On Demand Storage).

NOTE: Photos are before and after staging, taken from Barb's site (with her permission to share).

Many people relocate when they have reached a time in their lives that they wish to downsize and simplify their lifestyle. The majority of the people in this category are Baby Boomers. They may want to near children and grandchildren, or live in a warmer climate such as San Diego where they can spend their time golfing year-round. One of the options that some people in this generation choose is a 55+ community - an association of homes of perhaps varying styles and sizes, where the requirement is that one or possibly both members of the household are at least 55 years of age.

These communities offer a particular lifestyle that can appeal to those who no longer wish to have a large home, and prefer to not have to deal with the maintenance issues. The 55-year age requirement can be met in a number of ways depending on the stipulations in the association's by-laws. Often only one member is required to be 55 or older, but sometimes both. There are some large associations where only part of the subdivision is reserved for this age group, whereas others are completely self-contained, gated communities. It is common to find a range of amenities that will appeal to the residents - some have their own golf course (e.g., Ocean Hills in Oceanside), and a clubhouse that offers a variety of activities is fairly common (bridge, dances, community events and dinners). Home styles vary - some communities offer manufactured housing while others are more tract-like, either attached or detached. Commonly they are single story to better accommodate the residents as they age, but some offer both single and two-story arrangements. Because of the number of communities in our area, you will likely find what you are seeking, both in terms of amenities as well as price. San Diego offers a wonderful year-round lifestyle, but is not the least expensive areas for retirement.

In order to preserve the desired lifestyle, these communities may have restrictions on visitors - the number who may visit at a time and how long they may stay. The golf courses are usually private (but guests will usually be allowed to use the course), and the fees may be included as part of the monthly maintenance fees the residents pay to cover exterior and grounds maintenance. The overall convenience of no maintenance, a range of amenties and a group of similarly aged residents can allow for the perfect lifestyle. But it is not right for everyone, so do your due diligence before you make a final decision.

Here are some other things to consider.

1. If you are traveling to your new location by airplane, make sure you CHECK WITH YOUR AIRLINE to determine their requirements. When we moved from Minnesota the airline had a policy that pets could NOT fly in the cargo hold if it was going to be below a certain temperature on the day of the flight (seems to me it was 40 degrees for our airline at the time but this was years ago - in any case it is NEVER that warm in the winter in Minnesota).

NOTE: Airlines will likely require a bill of health from your vet! And if you can't get one (e.g., when we moved to California we had (and still have) a cat who was 20 at the time and there was no way the vet could provide a clean bill of health - this was a major reason for us deciding to drive, plus concern he might not survive the flight. BTW he is still with us 16 months later! Regarding temperature - we were NOT able to fly out of Minnesota with our dogs as planned so at the last minute we had to rent 2 cars and drive overnight to Ohio where we had family (and it was warmer in the winter) so we could fly from there as could the dogs. We also had 2 young girls at the time and lots of household stuff so the 14 hour drive, much of it in the fog, was a real treat!!

2. Also check with the airline about other special requirements (carrier - they all specify different types and sizes of carriers and won't let you fly if you have one that does NOT meet their requirements). Also find out what the airline charges - we spent $60 per dog when we flew back to Boston. Plus we had to buy new carriers that met the airline's size and weight requirements.

4. Be prepared for possible problems and make sure you have a back-up plan, such as contacting friends or family members who can assist with your pet while you transition, e.g., you need to leave them for a period while you leave then come back to get them (we left our dogs with family who later got them into their carriers and to the airport - bless them!);

5. Do some dry runs if you have not traveled with your pet. Obviously you can't fly or take a long trip, but if you are planning to take your pet in your car and have NEVER done so I recommend finding out how they react while in the car - some are frantic and others could care less. I know some people who need to drug their pets for travel so you will need to know about this and talk with your vet. Find out if you should put your pet in a carrier while in the car or not (another story - on the first day of our 7-day car ride to California we had our 2 cats in separate carriers - they yelled for 4 hours. The next day and for the rest of the trip we spread out towels on top of the luggage and let the cats find their way around the car [we had a jeep]. They were pleased to be able to lie where they wanted, be near us, use their litter box, have food and water in the back of the jeep, and EVERYONE was pleased the entire trip...well, mostly. They seemed reassured that they could be near us and we could pat them, although occasionally one would attempt to come up to the front seat).

6. If your trip will be overnight by car, make sure you get some information on where you will be staying and if the hotel accepts pets. Yep, you can lie and sneak them in, but why risk it? We found a huge number of places were pet friendly, although some did charge a small fee.  As an aside, we found that having AAA plan our trip was the best thing we could have done, since we didn't need to worry about the roads we would take and they provided many travel books for free which let us find hotels on the way that were pet friendly in areas where we wanted to be (e.g, on our side trips to the Grand Canyon and to Santa Fe). The other good thing about AAA, if you don't already know, is that your membership gets you great discounts on hotels.

NOTE: I doubt many hotels will give you a problem with the turtle/hamster in a cage routine, but you never know. Snakes may be more of an issue! Cats and dogs seem to meow and bark more when in a hotel which gives away their sneaking in...and most cats feel it necessary to scope out the windows and sit on the sill on the wrong side of the curtain to watch the world go by - sort of gives up the secret.

7. When traveling make sure you have plenty of your pet's food, water bowls, favorite toys, perhaps their favorite towel or bed if they use one, leashes (not OUR cats!), treats, and anything else that you feel will help them feel more at home. This will help in the car, in the hotel, and especially when you get to where you are going. It goes without saying that your pet may act differently when you arrive at your destination, and likely on the trip. Don't be too alarmed, unless they seem to be suffering - not drinking for example. If you are especially concerned you can probably find a vet along the way to take a look to make sure all is OK.

8. At your new home be prepared to have your pet act differently than in their old home - new smells, new surroundings, new noises. It will feel different to you and it will to your pet. I have found that having the pet in a small room for an extended time (hours, perhaps even overnight) such as a bathroom allows them to acclimate a bit at a time instead of being overwhelmed by a whole new house. This is especially true when your furniture arrives (if it is not there when you arrive). Not only do you want to protect your pet from the movers, boxes, and from escaping out the door (movers don't shut doors I have found) but they will likely be freaked out by all the commotion. I know people who have kenneled their pets while they were physically moving in - I generally don't like kennels and haven't done this, but if it works for you...

9. If you have kids you want to make sure you talk with them about the pets and what is going to happen, how you will al travel together, how the pets might feel with the move (nervous, not eating, unfriendly, clingy). They all react differently, but let's face it the kids are transitioning too - more on that in another post - and they will enjoy being part of the family planning for the pet's more to your new home!!

Hope this helps. I know it doesn't cover everything, and as I think of other stuff I will slip it in. Anyone with comments? Other experiences to share? 

 Some other resources are Pets Welcome, Dog Friendly (US and Canadian travel and city guides for all kinds of dogs), and Pet Vacations for more helpful tips and suggestions. Any other great resources you know of?

The cost of living in your new home may be a huge adjustment for you and your family. If you are coming from a fairly expensive area (e.g., Boston, New York City) and moving to the west coast, you will not likely see a huge difference, although housing may still be more expensive depending on where you are moving. But if you are coming from a more moderately priced city, say the South or the Midwest region) and are going to an expensive area, you may be in for a shock.

If you have a choice about where you want to be, then some thorough research can help you find a comparably priced area. But if you absolutely want to be in a certain area for personal reasons, or are being transferred for a job, doing some advance planning and research will at least help prepare you for the cost of living differences.

You will quickly gain a sense of house pricing simply by accessing current MLS listing through your new REALTOR'S site. You can easily compare size, # of bedrooms and baths, and lot size and soon will see what you can get compared to what you are currently paying. If you have been in your home for quite a while, your REALTOR who will help you sell will give you a good idea of the current value, which will help for comparison to the new location.

Some other areas that you will likely find cost of living differences for (sometime more expensive, sometimes less) include the following:

Food, medical insurance, dental insurance, homeowner's insurance, property taxes, HOA and condo fees, gas, utilities, salaries, rents (if you are not buying right away), car registration, driver's licenses, personal property taqxes, state income taxes, sales tax on food and clothing, among others.

Your employer (at either end) can probably provide some information about the differences in cost of living. You can also do some research yourself on-line.  Realtor.com provides a salary calculator that will let you know what you need to make in your new location to be comparable to the old home (this is a ROUGH estimate). InfoPlease also provides a wealth of information, as does the Department of Labor. Best Places provides helpful COL-related information about many other US cities, just one of the links found on the University of Michigan Library site (also worth checking out). Finally, the Suburban Library System site provides a number of links to various sites that provide COL and related information (beware - some of these sites do NOT provide info for free). Consider also checking with the local Chamber of Commerce in your new location.

Didja know?

At its deepest point, an iron ball would take more than an hour to sink to the ocean floor.

If you have NOT sold your current home but need to buy something in your new location before you actually relocate, I would consider the following.

As a REALTOR, I usually recommend that people sell their current home before they buy another. There are situations when the alternative will work, but in a slower market you cannot control how soon your current home will sell, so buying before you sell (unless you can qualify to have two mortgage and can financially swing it) is very risky. What happens if you can't sell it - do you lose the other house? Do you reduce the price drastically? Do you rent?

However, you may find yourself in a situation where you have no choice, since you are relocating a significant distance. The good news is that in many areas (the Southern California market included) because of the slower market, the inventory, and the long marketing times, many sellers are willing to consider accepting an offer that is contingent upon the buyer selling his/her house. So that may help you get the house you want while waiting for your old home to sell (in a sellers' market this typically is not the case, since there are many buyers competing for a few homes and sellers do not need to consider such a contingency).

If this seems likely, I would first have a detailed conversation with your REALTOR helping you to sell your home about the market and what you can expect. And I would be VERY AGGRESSIVE about pricing your home to sell, perhaps lower than any other comparable home, so you can sell quickly. This is NOT the time to try to make a few extra dollars, since you can end up spending more (mortgage, interest, utilities, etc.) if your home doesn't sell for a long time.

Also talk with the REALTOR in your new location to ascertain the market conditions there. Will you even be able to make a contingent offer? Are there lots of homes on the market right now, and what is the marketing time? Discuss the possibilities of needing to make a contingent offer so your REALTOR is prepared and can advise you accordingly.

Make sure both REALTORs have each other's contact information. If you need to make a contngent offer you and your REALTOR will likely need to provide informaton about the home you are selling (the MLS #, price, and perhaps the listing itself, in order to document that it is, in fact, on the market - your REALTOR at home can help with this, and keep your other REALTOR up to date on events, which can make a difference in working through the negotiations).

As you are preparing to make a trip to your new location in order to search for the home you want to buy, in my experience there are some important things to consider (I alluded to some of this in a previous post).

Mentally, you really need to be ready to make an offer on a house and buy, unless you know, going in, that you have time and do not need to buy right away, or because you will be making a second trip to look. Making the decision to buy is often pretty stressful, even when buying in an area you know. But then you generally have plenty of time to look and can make the decision to put in an offer when you are ready. But when you are relocating you often don't have the luxury of time. So prepare yourself you make that offer and know that is the goal you are to accomplish on your trip.

People often ask, how many houses should I see? That's a tough question, and there is no real right or wrong answer - it depends on you and how you buy, but also on the available inventory (there may only be a few homes in your price range, or hundreds). Some people can see 5 or 6 homes and know they have found the right thing and can make the decision. Others need to see more homes before they can decide. One thing to be aware, and cautious of, if the "kid in the candy store" approach. This is especially common in the current market, at least here in California because there are so many homes on the market. Some buyers are taking the approach that they want to see everything before they decide. This can take forever, and you can risk losing a house you really like while you are out looking at everything else. PLus if your house hunting trip has a time limit, you simly will NOT be able to see everything. I know of people who have looked at 50 or more houses in 3 days, trying to decide. Personally I think this is overkill - after a while they will all start to seem alike, and how can you really decide among that many homes? But if this is what you feel you need to do, then you should do it. I would, however, talk about this with the Realtor in advance so everyone is on the same page.

I mentioned using a digital camera to help keep track of homes. You might also want to take your  video camera if your enjoy that. The nice thing about a digital camera is you can easily delete pictures as you go along, eliminating houses as you do. But either will work well and help you keep track of what you have seen.  This an be especially helpful if you return home to ponder the decision, then make you offer from a distance.

If you know you need to make an offer while away, make sure you take a checkbook  to pay for the downpayment with your offer (and verify that you have sufficient funds to cover the check that you write). Take a copy of your pre-approval letter and make sure you put your mortgage officer on alert that you may need to reach him/her while traveling with any questions or to modify the pre-approval letter (check that you have all the ncessary contact information with you).

I recently wrote about considering the FEATURES and BENEFITS when you are trying to decide what kind of property, and what home, to buy. You can read more on this topic on my First Home Buyer Central site.

How do YOU decide what home to buy? We'd love to hear from you.

In a relocation, the role YOU have is a critical one, perhaps more so than when you are moving a short distance to a new home. Unless you are very familiar with the area you are moving to, there is much that you need to learn so that you can make an informed decision about where to live. The more time you can spend researching the area and obtaining information, the more comfortable you will feel about settling in your new location; this will help alleviate the stress also, since much of the tension will be caused by unfamiliarity and unsettled issues.

1. Use your agent's website and access to the MLS to understand the housing as much as possible - type of homes, neighborhoods, size of homes, lot sizes, age, proximity to school and shopping, etc. Keep careful notes on areas that interest you so you can research these more. There is a wealth of information on the Internet.

2. Review the Chamber of Commerce websites for the towns that interest you. These typically have lots of information about the community - services, housing, shopping, parks, schools, events, etc. You will gain a good understanding and feel for the community. The URLs for these sites will vary, so a Google search will likely lead you to the  right URL. If you are moving to my area, you can search Carlsbad, Oceanside, Solana Beach, Del Mar, Vista, San Marcos, Encinitas, Cardiff. There are other nearby communities as well.

3. If schools are important, there are a number of resources on-line. You can link to my website where there is a national search site for school districts around the country. If there are particular school districts that interest you, research these on the Internet by doing a google search for that particular school district and review their site. I also suggest contacting school districts directly and perhaps getting more updated info, as well as the names of some parents to talk with. You should verify what school(s) are in you area so you know in advance, but check again once you have decided on some homes that are of interest - you might find that they are tied to different schools, and if that makes a difference to you knowing this will be important before you make an offer. While your agent may know, it is best for YOU to check this out. You will find that some information on the school district websites may be outdated, and boundaries for schools can change.

4. Crime may also be of concern, and if so you should check on this yourself. A Realtor cannot guide you to or away from an area based on crime statistics. One source is the police department for the town of interest (sometime the chamber website will have this information). You can also research this on the Internet. California also has a database of sexual offenders you can search.

I'll talk some more about due diligence in a later post. Any questions, please feel free to ask me directly if you wish.

I recently talked about the value of homeownership on 10/8 on this blog, and just posted a discussion on some of the myths about taxes and homeownership on my First Time Buyer Central blog. You might want to take a look in case any of those issues are pertinent to your situation. Some myths might surprise you!

As always, it is prudent to consult a tax professional regarding your personal situation to avoid any unpleasant surprises (like an audit, or a huge tax bill you could have avoided). Understanding the tax laws is a challenge for sure, and the documents you can find on the IRS site, while helpful, are tough to wade through. A little money spent with a tax professional may save you a bundle. This is especially true if you are relocating since there are other deductions to be aware of (moving expenses, for example).