Since short sales have become fairly common, and you may decide to put an offer in on such a property, there are some other things to know.

Read my post on Activerain for more details. You may find some of the agent comments useful, too.

Jeff

I was thinking about our first relocation the other morning while I was at the gym - doing ab crunches, which I hate. Guess I needed something to get my mind off of what I was doing.

But what I was thinking about was much harder than a hundred ab crunches.

Our first relo was from Detroit, MI to Boston, MA. We had two children (3 and 2), I was in graduate school and working, and my wife was working for General Motors (at that time everyone in MI either worked for one of the big automakers or a related industry. We were interested in going to Boston and she had an opportunity for a new job there. So the decision was made.

Because of grad school, and her job, my wife went off to Boston to start work and lived in a hotel for 3 months. I stayed in Dearborn Height with the kids, and continued grad school and working. We got to visit a couple of times during this period, meeting midway in New York. This was one of the hardest things I have ever done - and it was especially hard for the girls not having their mother around.  And I know it was so hard for my wife to not be home with her girls. Talking on the phone daily helped, but it's just not the same. I was also starting my job hunt in Boston since I was at a point with grad school when I could live elsewhere and finish my research. Fortunately some of my wife's family a couple of hours away so periodic visits helped.

My wife started house hunting and plans were made to put our first house in MI on the market. Busy times, for sure. Our house didn't sell right away but off to Boston I went with the kids. We moved into a rental apartment for a couple of months while we waited for the Michigan house to sell (tough market back then) and to close on our new home in Boston. Because of the rental most of our furniture and personal stuff remained in storage.

This was a really tough emotional, and physically draining, experience for everyone, but it all worked out...finally (took about 5 months). We moved into our new home outside Boston, I started a new job and continued to work on finishing my degree (which meant a monthly trip from Boston to Detroit...by car [15 hours each way] since money was not abundant in those days), the kids started pre-school down the street, my wife settled more into her job and life moved on.

Going through relocation yourself? I know what it's like. Guess those ab crunches weren't so bad after all.

I GUARANTEE...

You may know this already, but some sellers NEED to be reminded - THERE ARE NO GUARANTEES when selling your home.

No matter what an agent tells you, there is no guarantee you will get the price you list at (in a buyer's market). If they promise you a certain price (unless it is well below asking) it won't happen. Run away from this "guarantee." You're wasting your time. Sure, it is commonly said that "there's a buyer for every house," but that assumes "if you price it low enough someone will buy it." An ethical, professional agent will NEVER tell you they guarantee a certain price or can promise a certain dollar amount (unless they are planning to buy it for themselves...and that can present other issues, particularly if they tell you the price, rather than you making the decision).

Likewise, if you are working with a home staging professional (which is often a good idea, especially in this competitive market), no matter how good your home looks once it has been "staged" there is no guarantee. Yes, studies show that staged homes generally sell faster and for a higher avergae price on average. But an hnest, ethical stager KNOWS there are no guarantees and will tell you so. Don't be mislead.

Some products and services offer a guarantee. Selling your home at a certain price is not one of them.

The headlines have blasted us with negative information about the housing market in San Diego throughout 2006

Be careful when reading the headlines, and don't draw your conclusions from them. Rather, read the entire article, as you will often find the news to be more positive than the headlines would lead you to believe. After all, negative news tends to sell papers.

If you want the lowdown on the housing market, read my post on the year-end housing market stats for San Diego. The news is pretty positive (although house prices are still high), and encouraging for the year ahead.

Jeff

I wrote another post in my neighborhood series on Aviara, in Carlsbad, that may appeal to you if you are searching for a home in the area.

Aviara has a very different look and feel than other areas of Carlsbad, such as La Costa (my previous post). Anchored by the Four Seasons Aviara Resort, it offers a resort-like feel and is almost exclusively residential.

Visit my post on ActiveRain for more details and some great photos and a virtual tour of Carlsbad.

I am starting to create a series on some of the neighborhoods in the area where I live and work. These will include information about the housing, things to do, some area photos, and other bits if information. I will also include a short virtual tour.

I hope you will enjoy these posts on the wonderful neighborhoods here along the coast.

Here a link to my first neighborhood post on La Costa - the area of Carlsbad (in the south) where I live. If I can provide more information, just let me know.

Enjoy!

Just another quick note about short sales.

Since the sellers still own the house, they will need to agree to any offer that the buyer makes. They may or may not be more willing to sell at a less than market price because of their hardship situation.

However, keep in mind that the sellers' lender will need to APPROVE the offer as well. They likely will send out an appraiser in order to assess the market value.

So, even if the sellers are willing to go with your offer, the bank may not allow it.

Be sure to investigate the comparables that have sold recently. You will have a better idea of the market when making your best offer so you can improve the likelihood that both the sellers and the bank will approve. Your agent will be the best source of information.

I can't speak for other states, since they may have different requirements, but when making an offer on a short sale here in CA there are some things to know about the paperwork. Not a lot of new docs, but important stuff!

There are a good number of homes here for sale that are, or very likely will be, short sales - the amount the sellers can SELL FOR (market value) is less than what they owe. There are a number of reasons why this happens - that's a subject for another post. So you will likely come across some of these homes in your searching...but don't be mislead into thinking these are not worth your consideration, as some are really great properties.

Your agent will help you fill out the standard paperwork (the 10- page RPA or Residential Offer to Purchase, which includes the 2-page Buyer's Inspection Advisory), agency disclosures, and Wood Destroying Pest Inspection addendum. You really should have your PRE-APPROVAL (IMO is it always important to submit with an offer) too, and your depoist check. (NOTE  - I have a list on my website of the standard documents that are part of a buyer transaction - my Buyer Forms Checklist)

Two important additions:

• The PAA - the Purchase Agreement Addendum with box #5 checked (for short sale)
• Not required but advisable - a short letter requesting confirmation that the sellers have submitted the paperwork, hardship letter, etc. that their lender requires as part of the short sale, and if not, when they expect to do this (set a due date in the PAA). This can hold up the process if not done in a timely manner. The bank will have a checklist of things they require and you want to know what those are.

Your agent can provide more information about things you should know. But please ask if there are any questions and I will post the response.

Have a great weekend!

Jeff

I'm working with several people who plan to relocate tot his area, and also have a couple of friends who just went through significant relocation. So it made me think - are YOU feeling good about the move? Perhaps not.

I wrote about the psychological and emotional impact before , and having been through it (and yes, experiencing some pretty dramatic emotional stuff while doing so) I wanted to talk more about this. Most of the time we hear about all stuff you have to do:

• sell your your current home
• find an agent in your new locale
• search for a new home
• arrange for movers
• pack and get rid of stuff you don't want or need
• move

and all the while keeping your house clean, managing the kids and your personal and work life, and so on. How can you possibly do all this and keep your sanity? Well, it's ain't easy. But often we don't talk about the emotional end of this process.

Know this - you are going to feel more anxious, maybe occasional depression, excitement, general tension, and more. You will feel overwhelmed, possibly. It can affect your sleep, your eating habits, how you feel physically. It's normal...after all you are making a MAJOR change in your life and that of your family, and it's stressful. And if the move is NOT something you are choosing (say, a job transfer) then those feelings may be more negative. Feeling angry? Resentful? It's to be expected.

Give yourself permission for these feelings. Recognize why you are feeling as you do, even if there isn't a specific incident that is causing you to feel this way (generalized anxiety they call it). Take the time to relax when you can - by yourself and/or with your partner, spouse and kids. Go to dinner. Have a fun day at the zoo. Visit the spa. Whatever you can do to find some special time to enjoy your life and forget about all you have to do. And keep your focus on what is really important in your life - friends, family and your own personal well-being.

Covenants, Conditions and Restrictions, more commonly known as CC & Rs, will undoubtedly cross your radar screen as part of your purchase here in California. Other states may have these too, or may use other names. They are not unlike the condo documents one finds in that type of housing.

Just a few words, since some people have asked what these are and wondered whether they should worry about them.

• A COVENANT is a "promise to not do certain things." For example a property may only be used for certain things. Failure to observe a covenant can result in monetary damages or an injunction (where the court can force you to do something or to not do something)
• A CONDITION is similar, typically a limitation on the property, however the penalty can be return of th eproperty to the grantor if the owner doe not comply.

During the contingency period, once an offer has been made and accepted, you will receive a copy of the CC & Rs for the property you are purchasing, and must review and approve these prior to the end of the contingency period. This is the time to get any clarification, but they are not negotiable. Unlike other resrtictions like zoning laws (which affect the general public), CC & Rs are specific to a particular property or development.

CC & Rs are recorded documents and owners in the subdivision have a right to enforce these. You want to make sure there is nothing in the documetns that you simply cannot live with, should you move in.

WHAT ARE MELLO ROOS and CAN I DEDUCT THEM ON MY TAXES?

During your search for a new home you will like come across the term MELLO ROOS, noted in the MLS listing, and wonder what this is. Essentially they are fees (in some subdivision) to pay for improvements such as sidewalks, sewers, services, and related items; they do have a lifetime and will expire, but it could be 20 years or more. They are different than HOA fees.

I wanted to keep this post short, but you can read more about Mello Roos here.

A buyer asked me recently if Mello Roos are tax deductible. Tough question - IT DEPENDS. Here is some information that will help with this question.

But the best advice is to check with your Accountant - you don't want a problem with the IRS. And this will likely also be considered by your lender, along with insurance and property taxes when determing what you quality for.

Are you in relocation mode and finding that you haven't sold your OLD home but need to buy something new? Should you buy before you sell?

This is a tough question, and many people find themselves in this situation. On the one hand you want to have a place you can call home in the new town, and get yourself and your family settled (unless you are on your own). It's hard living with the uncertainty, and of course you want a place you live with your family, the pets and your stuff.

Give this VERY CAREFUL THOUGHT.  You, like many folks, may be in a market where it is taking time for things to sell, yet you want to move along. If there is a way to balance this, without incurring too much financial burden by owning 2 houses, I would urge you to do so. Buying another home when you have another home to sell is very risky and can cost you thousands. Be very sure that you can handle two mortgages AND for an extended period of time - you just don't know when your home will sell.

Are there other options?

• You go on ahead and leave the family behind so you can start work - maybe live in a short term furnished rental
• Can you negotiate the start time for your new job? Work from afar? Do a long-distance commute?
• Move the family into a rental in the new location; keep your stuff in storage except for essentials until you sell, THEN find your new home and move
• Before you buy the second home do a very thorough analysis of your costs on keeping your current home (mortgage, insurance, utilities, maintenance, taxes) for a period of time, then factor in the cost of a new home (probably DOUBLING what you are already paying).
• If there is a relocation company involved can or will they BUY your old home? If the answer if YES make sure you understand the terms and conditions, costs, price they will pay, and the financial and tax impact on YOU.
• Does it make financial sense to rent your old home for  period of time and then try to sell later (this can have tax implications because of the income; you will have long distance maintenance and property management issues; the condition of the home may be impacted by tenants; the market may shift, etc.).

These are some important issues to consider before you make a decision, and there may be others, such as the impact on your personal life. Don't make a hasty decision you might later regret.

I expect that, like for me, taxes are not your favorite subject.

I got this article a short time ago about 10 new tax laws you should know and wanted to share it. Here is the list, but see the article for more details. And consult your tax professional to find out if and how they impact YOU.

• Telephone tax credit
• Multiple direct deposit option
• Energy-saving home improvements
• Alternative fuel auto credit
• Tougher donation rules
• Older philanthropist rules
• Kiddie tax tightened
• Foreign income adjustments
• Rolling over retirement money
• Old deductions are new again

Take a look. It might save YOU some $$$.

It seems like everyone around the country is having wintry weather - ice storms in the MidWest and New England, nasty storms in the Northwest, heavy snows in Denver, etc. Even San Diego has had quite a bit of cold weather - down into the upper 30s at night and snow in the nearby mountains (which you can see from the freeway)

While it is still pretty green here, and there are some flowers out (we have lots of Bird of Paradise in our yard), this kind of weather makes me yearn for warmer spring days, especailly since I am not a big fan of cold weather. All of this reminds me of a great place to visit if you are a flower fan.

The Flower Fields here in Carlsbad are spectacular (and open in just about 2 months). It is worth a vist. There are acres of ranunculas (my porr attempt at photography does not do this place justice but you get the idea), as well as a beautiful rose garden, and more.

The Flower Fields are only open until May so make plans to visit if you are around. They are located just off the 5 at the Palomar Airport Road exit, about .1 miles east.

Here is some information on the hoops you will need to jump through when buying a home, and some glitches that can occur.

Be prepared - you never know when something can go wrong (Murphy's Law), but if you are educated about the process and working with a strong, knowledgeable agent, you will at least be ready to cope with any problems.

Rather than reprint it, here's the link to my post, Buyers - You Have Hoops to Jump Through -Be Prepared, that is posted on my ActiveRain blog, What's Up Doc?.

I hope you enjoy it. Let me know if you have any questions.

Jeff