An informational source for people who are relocating, with a particular focus on moving to the Carlsbad area of North County San Diego (and nearby coastal communities), with advice, guidance and true stories to help you on your way and make it a great journey, from a REALTOR� with plenty of personal (4 major moves, most recently from Boston to Carlsbad, California) and professional relocation experience. Are you running into problems selling your home? Need to find a new one quickly? Never moved before and haven't a clue? You'll find some great tips on how to solve your relocation issues here. Or ask me a question any time and I'll share some solutions or tell you where to get more information.
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Buying a Home AS IS and Dealing with Termites in a Short sale, Foreclosure or REO
Many buyers find themselves in the situation of looking at distress properties – short sales, foreclosures, and bank-owned properties. It may be because you specifically want to purchase this type of property, or that may be all that is available in your price range.
Some things you need to know as a prospective buyer if you get through the offer process and the short sale, foreclosure or REO is approved by the bank:
BUYING THE HOME AS IS:
Generally these are homes you must purchase “as is.” Be aware that you will be the one taking the responsibility for making repairs, not the lender. So find out what defects there are upfront by having a thorough inspection. In some case some repairs may be negotiated but don’t expect it. If the costs are high for these, factor this into your thinking about whether this is the right property for you or not.
Depending on the issues, you may want to have one or more tradespeople in to evaluate the defects (say plumbing and electrical) so you have an idea of how much the repairs might be. This additional information MAY be helpful if you are attempting to negotiate repairs (a good idea even in the case of a typical sale where you are dealing directly with the homeowner).
TERMITE ISSUES:
Here in California it is common for properties to have termite issues (this may not apply to those of you in other parts of the country).
In the typical sale the seller will complete a termite inspection and take care of infestation and termite damage as part of the negotiations (There are exceptions). A termite clearance MUST be provided before your lender will allow closing to occur. In the case of these distress sales you will often find that the seller, because of financial hardship, will not be responsible for termite repairs, but may pay to have the inspection done (they are pretty inexpensive). In the case of REOs, however, banks often will not do the inspection either. The Catch 22 is that your lender might require a termite inspection as well as a termite clearance.
If the bank is not willing to pay for this then you will need to do so. It is a good idea to have your own termite inspection if the seller will not so you are aware of any issues and can take care of them accordingly.
Be aware that with short sales and REOs, you may have to take care of the termite problems yourself in order to obtain the clearance and meet your lender’s requirements.
It is smart to work with an agent who has some experience with short sales and similar transactions so you get the guidance you need to make the right decisions.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by
phone or text at (760) 840-1360 or email me at JDowler@remax.net.
Folks who are buying Carlsbad real estate, or anywhere for that matter, owe it to themselves to do a thorough investigation of the property they wish to buy.
This is not new news, or shouldn’t be.
Most REALTORS strongly encourage buyers to hire a home inspector to investigate the home they are trying to buy and part of the due diligence process. To not do so is foolhardy, in my opinion. We even have a disclosure here that advises buyers that to not conduct such an investigation is going against the recommendations of the agent. But sometimes folks don’t listen.
With the market we are in, this becomes even more critical, given the number of short sales foreclosures, and bank-owned properties (REOs). Since these homes, and sometimes others, are sold AS IS, a prudent real estate buyer will want to know what they are getting themselves into before signing on the dotted line.
My experiences with home inspectors have been pretty good, although I know there are some who are not so competent. And let’s face it they are normally not trades people so their inspections may be less thorough than, say, a licensed plumber. Nor should they be expected to be as knowledgeable. Plus there are always those darned disclosures and disclaimers.If they recommend further evaluation, it is probably wise to listen.
The point of all this is to ask whether you, Mr. and/or Ms. Carlsbad Buyer, are really doing as thorough an inspection as you should. Or are there cases where more is needed?
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by
phone or text at (760) 840-1360 or email me at JDowler@remax.net.
Carlsbadbuyers, whether you seeking your first home or are someone who is more experienced, there will be situations that arise when you had better call in the professionals.
Buyers should always have a home inspection completed on a prospective purchase, even if it is new construction. This is a vital piece of your buyer due diligence. You want to know what you are buying, in terms of needed repairs, deferred maintenance, and material defects, plus it’s a good way to gain an education about the home you are buying and its systems.
Having a home inspection is especially important in the case of short sales and foreclosures where the homes are typically being sold “as is.” Read more about buying a short sale.
But there are other times when buyers should call in the professionals.
The home inspector may uncover substantial issues, such as electrical defects or safety hazards, leaks in plumbing fixtures, heating or AC units that do not function as they should, and occasionally more serious issues such as cracks in the slab.
The home inspector is just that. S/he is not a licensed trades person, generally, so their knowledge about how defects should be repaired, the causes of those defects, and the repair costs is limited. And legally they may not be able to give you that sort of advice.
As a buyer, how do you address these problems?
Calling in the professionals (a licensed plumber, electrician, HVAC vendor, roofing contractor) will enable you to gain a better idea of the nature of the problems, how they can be addressed, and the potential costs (some will do estimates for free, others will charge a fee to be subtracted if you engage their services). Given the hourly rates that the trades charge, knowing these potential costs can make a difference in your decision to buy, since these repairs, if significant, could end up costing thousands of dollars and you must take them on yourself after the purchase.
You always have the option to negotiate having some repairs taken care of by the sellers, or making a price adjustment. However, the seller may not be willing to do this, or may take care of only some of the issues that concern you. Having documentation from a licensed trades person may help determine how much you can negotiate, and can better support a price reduction or a credit at closing.
In some cases, a significant enough issue, or series of problems, may prompt you to decide the home is more than you are willing or able to take on.
And bear in mind that lenders may not provide loans on homes that have substantial issues such as cracked or unstable foundations.
One further point on calling in the professionals. In California it is customary for the seller to have a termite inspection done and to take care of any issues, although this is subject to negotiations (but not mandated by law). If this is not done for some reason, you should definitely call in a professional to make sure there are no wood-boring pest problems. If there is infestation and/or damage these issues will need to be addressed appropriately (BTW most lenders will require that a home receive a clearance from a licensed inspection company that infestation has been addressed). Read about termite tenting here.
If you are relocating to the Carlsbad, California area, or elsewhere in Southern California, you may see an occasional "circus tent" over a house in the neighborhood as you are driving around. As a buyer of Carlsbad real estate, you should know about this and what it means.
Termites are a common problem here and inspections for termite infestation and dealing with getting rid of these critters is a part of most real estate transactions involving residential property. How this is handled by the buyer and seller is subject to negotiation, but there are some common practices.
If I can provide more information about this community or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360
or email me at JDowler@remax.net.
I have talked a lot about
the home buying process, and in particular about due
diligence.
The reason is that
"buyers beware" is really something to keep in
mind when making your most important and most expensive purchase.
Just as with buying a car, a computer, or other products, you want
to make sure that you are buying what is being represented, and not
something else. The problem is that a home is a much more
complicated acquisition, and consumers vary so much in terms of
what they want and are willing to accept.
Doing your due
diligence - checking on all the issues that matter to you,
verifying information and reviewing disclosures - is critical and
something you MUST NOT take lightly. Certainly this can
also involve having your BUYER AGENT check on things for you with
the listing agent/seller. But don't skimp on this. You might find
that what you thought you are getting is not that at all. And after
you have completed the transaction it is too
late.
Here's an example. I am
working with a buyer that has, as a "must have," the need for A/C.
We saw one unit that fit all the criteria, but according to the MLS
did not have A/C. Too bad. But on our second visit to the home we
looked closely at the thermostat and saw a setting for cool, and
tried out the switch. Terrific. But I also have a call in to
verify with the agent/seller that the unit DOES, in fact, have A/C.
Otherwise it might kill the deal.
There are lots of
things that might be important to you, as well as issues disclosed
by the seller that may impact your decision to buy or
not.
DO YOUR DUE DILIGENCE! Don't
make a bad purchase because you were lazy, made assumptions, didn't
take the time, or forgot to check. It'll bite you in the
end.
And don't assume that
what the MLS says is necessarily accurate - you need to
verify the information.
Whether or not you have a concern about
mold in your CARLSBAD home, this is important information for all homeowners adn those of you tinking
about buying or selling.
In my last post, I wrote in detail about the
ins and outs of performing a
mold inspection (Part 2). Within that post, I briefly mentioned sampling as a
means to identify conditions that may further warrant evaluation and ultimately the determination of whether or
not to perform mold remediation. (Part 1 - What is Mold)
Upon completion of the visual survey / inspection, a
mold inspector will sit down with his/her client and discuss the findings of the visual inspection. Suspect areas that
have been documented are then recommended for sampling. The purpose of collecting samples is to determine whether a
suspected stain, blemish, discoloration or other water damaged area is identified, by laboratory analysis, as mold
growth.
There are two primary methods of
sampling used by an inspector; surface and air sampling. Samples are recommended based on observations made
during the visual inspection. When the inspector observes visible mold, he/she will recommend surface sampling, interior
air sampling and exterior air sampling for that area. For structures less than 5000 square feet, only one air sample is
required outside regardless of the number of indoor samples recommended. When no visible mold is observed but suspect
conditions are present, the inspector will recommend only air sampling.
Surface
Sampling:
Surface samples are collected using either clear
adhesive tape or wetted swabs. Surface samples collected via adhesive tape are simple to collect and they do not require
any expensive equipment. This type of sample can provide qualitative and quantitative analyses (how much and what type) of
the mold present on the surface. The disadvantage of using adhesive tape is the small surface area used for collection and
the inability to be cultured in a laboratory. Using wetted swabs is similar to collection via adhesive tape. There are
however some distinct differences. In addition to providing qualitative and quantitative results, swabs can sample a much
larger area and can also be analyzed by both direct microscopy and cultured for viable sample analysis. The disadvantage
of using a wetted swab is the potential for damage to the mold structure while sampling making the identification of the
mold more difficult. And both types of sampling do not identify mold present in the ambient air.
Air
Sampling:
Air samples are collected using a vacuum pump drawing in
air at 15-20 liters per minute. Air cassettes, known as cassette slide impactors, are used with the vacuum pump to capture
mold spores in the ambient air. This method of collection is commonly referred as inertial impaction. The advantages of
this method of sampling are expedited qualitative and qualitative analysis (how much and what type) of mold present and no
special handling or packaging for cassettes. The disadvantage of air sampling is that mold collected on the slide within
the cassette cannot be cultured. And air cassettes can also be sensitive to particulate overloading.
As you can see, each method of sampling has it
advantages and disadvantages. While a visual inspection will point out suspect conditions, sampling can be an
extremely beneficial addition to determining the existence of mold, whether visible or hidden.
Things to Know about Fires and Earthquakes in California
For those of you who are planning to buy a home in the Southern California area (including those you live locally already), there are some things to know about FIRES and EARTHQUAKES.
As you probably know, YES, we have them. Certain areas are more prone, especially to forest fires, and buyers should do their due diligence and investigation beforehand.
If you are planning to move here to California, or are currently here, there are some disclosures you need to know about as a buyer (these vary from state to state - we had nothing this detailed in Massachusetts).
Rather than reprint the article here that I recently wrote, follow this link to read more about what sorts of disclosures you can expect during the due diligence period.
This is a question that I get quite frequently from REALTORS and buyers alike
who have not been through the mold inspection process.
In the simplest terms, a mold inspection begins with a visual survey of the
interior and exterior of readily accessible structures located on the property being inspected. During this
survey, the mold inspector is visually identifying preventative maintenance issues, which if left unattended, can result
in conditions conducive to mold growth, and suspect areas/conditions where mold colonization, whether active or dormant,
may also be present. Suspect areas can include walls, ceilings or other surfaces within the structure that are discolored,
stained, blemished or otherwise damaged from present or past water intrusion. Areas of suspected mold-like growth, whether
active or dormant, are of course also noted.
Upon completion of the visual survey/inspection, the mold inspector will sit
down with his/her client and discuss the findings of the visual survey. Suspect areas that have been noted are
further explained and recommended for sampling. The purpose of collecting samples is to determine whether a suspected
stain, blemish, discoloration or other water damaged area is identified, by laboratory analysis, as mold growth.
Mold growth should not be present in a normal fungal ecology. Sampling can also identify
conditions that may warrant further evaluation and include invasive testing or referral to a remediation / abatement /
clean-up company. In my next post I will address in more detail the different types of sampling methods.
With an explanation of the mold inspection process in hand, let's examine in more
detail some of the specific areas a mold inspector will examine while performing an inspection.
Grounds:
The grounds of a structure can include the evaluation of proper grading, drainage
which includes gutters, the location of downspouts, exterior wall coverings, porches, decks and windows. All of these
systems when properly working together allow for the displacement of water away from the structure and prevent water
intrusion.
Plumbing:
When inspecting the interior of a structure, great attention is paid to under-sink
areas and adjacent plumbing systems. Under sinks in both bathrooms and kitchens are the most common areas observed for
water staining, leaks, discoloration and mold-like growth.
HVAC:
Heating, Ventilation and Air Conditioning systems can often be a source of mold
concern. Air ducts are inspected to insure they are not disconnected causing venting into areas like attics and
crawlspaces. Additionally, closed off supply registers can create excessive condensation and an environment conducive to
mold growth.
Remember: Moisture
control is the key to preventing mold growth. Mold only needs a food source, moisture and a surface to grow
on!
This is a strong recommendation for both buyers and sellers, whether you are a first time buyer, first time seller, or experienced in both buying and selling. And if you are relocating to a new state this is even more important since things are likely done differently there than what you may be used to.
READ your contracts.
Let me say that again. READ your contracts.
I have seen several recent situations where buyers and sellers got into hot water because they made assumptions about their transactions, only to later find out those assumptions were wrong. Once things are signed, or the deal is completed, it is too late to find out that something important was missed, or forgotten, or you agreed to something that you wish you hadn't.
Unless you are obsessive, you probably don't like taking time to do this (I am the same way). Contract language is not fun to read, and is often hard to understand. It is certainly boring. But important details an easily be missed.
Check dates
Make sure things are spelled correctly
Review ALL financial stuff to ensure it is correct
Is the address right?
Are all the blanks filled in that need to be?
Is your SS# correct (in the closing docs usually)
Make sure you read terms and conditions, AND understand the implications of them, and what happens if certain procedures are not followed.
Make sure you ask about things you are unclear about before proceeding. It might save you some major aggravation later.
I know that many buyers are concerned about mold. We have certainly heard lots about it in the media, and health concerns about mold have increased dramatically in recent years. So buyers are worried that the home they want to buy might have mold. And if so, what can be done about it? Or should they not buy the home at all?
Sellers are also concerned - worried that THEY have a problem to fix before they can sell. Or perhaps they were not aware there WAS a mold issue, and now they know due to the buyer's inspection.
What to do.
Well, mold is coming your way...watch out for my guest blogger, Andy Konopacki. Andy is President of VM3 Environmental, a mold inspection and remediation firm based in Carlsbad and serving all of Southern California, and over the next few months or so will be providing buyers and sellers with some great information on MOLD.
What is mold?
How to find out if mold is in your home
What does a mold inspection tell you
How can you get rid of mold
What to look for in your mold inspection and in your mold inspection company
The more you know as a buyer or seller, the more readily you can make an informed decision on how to proceed.
Stay tuned for this informative and timely series.
It is not unusual for buyers or sellers to uncover the fact that they have credit problems when attempting to secure a mortgage. Or perhaps in the pre-approval process you learn that there are some issues that need to be fixed before you can qualify for a loan.
Beware of credit fixing solutions! There are companies out there that offer to help you fix your credit, for a fee. But these solutions may actually cause more problems than they fix.
You are smart to address the credit problems you have, but this may NOT be in your best interest.
BUYERS: would you like to have some statistics on the market in your area?
SELLERS: do you want to know what market conditions are like BEFORE you list? Or to find out WHY your home is not selling and how to fix that problem?
If you are in the San Diego County area and want this information, just let me know and I will get it for you
If you are out of the area, let me know where you are and I can find someone to help you obtain this information (or as the agent you are working with)
You don't have to be a statistics fanatic to want to this information. WHY?
Because an informed consumer can make the best decision regarding a purchase or the listing price on their home
If you don't know what is going on in the market, how will you know that the home you wish to buy is priced correctly, or what you should reasonably offer?
If you are selling, how can you possibly decide on the price to list your home at TO SELL QUICKLY and FOR TOP DOLLAR if you have no clue about the market and what comparable homes are selling for
Here is just a sampling of some things you might want to know. And the information can be in the form of a table, a graph, or simply a written summary of the market.
The graph is for the inventory in Carlsbad over the last 6 months.
Here is a table of summary statistics for Carlsbad for February:
AS OF FEB. 28, 2007
ATTACHED HOMES
DETACHED HOMES
Active
221
413
Sold in February 07 / February 06
23 / 30
45 / 77
Sold in Last 6 Months
200
393
Sold/Pending In Last 6 months
280
430
Absorption Rate (Solds)
199 days
189 days
Absorption Rate (Solds Plus Pendings)
142days
173 days
Average Days on Market
77
78
Median Price Change From 1 Year Ago
-3%
-4%
Median Price
$441,000
$728,750
Average Price
$455,062
$774,576
% Chng in MDN from prior month
3%
0%
New on Market in February
79
120
The statistics do NOT have to be elaborate, but you should have the information that wll allow you to answer the questions that you have, and to make an informed decision. Here are some other things to know about:
# of homes active on the market (in your price range)
# of homes sold in last 6 months
Sale price/List price ratios of homes that are active and that have sold
Days on market (DOM)
Price per SF of living space of sold comparable homes
Price range of sold homes that are comparable
You get the idea. You agent will know what kind of information may be helpful, and you will possibly have some other ideas as well.
DON'T make the decision to buy or sell solely on statistics, but they are an important part of becoming an educated consumer.
I want to chat a bit about transparency on the Internet, especially with regard to real estate and us agents. That’s the topic for this post and the next one or two.
The emphasis NOW is on sharing as much information as possible, about the real estate business and what we do, but more importantly about ourselves – who we are and how we work. As agents, we are now transparent to consumers, and that’s a good thing.
For many years, agents were the guardians of real estate information – you couldn’t get the details of what houses were for sale, their prices, what HAD sold, or other information without talking with an agent. We had you trapped, so to speak. Any of you who have been around for a while, and perhaps bought in the past, may remember the big fat MLS books that contained all the listings in the area – but no lookie without an agent. Nothing existed on the Internet so you had no choice but to contact a real estate office.
Well, the Internet has changed all that, thank goodness. Consumers now have the ability to get most of the information they need about buying and selling before they even talk to an agent. They can pick the houses they like, get estimated values on a home they are selling (a caveat here –be cautious, as those estimates are often off quite a bit), and learn all kinds of things about agents before they even decide who they want to work with. Consumers are now in the driver’s seat and in control, exactly where they should be. Many agents don’t like that – but I think it’s great. Over 70% of buyers and sellers do their research on the ‘net before they even talk with a professional. This is good for them, and good for us, in my opinion.
I know some of you are doing your research as you think about buying or selling, and I would encourage you to do as much as you can, with all the resources that are at your disposal. I will share some thoughts on the research process and give you some tips in my next post.
Are you considering a relocation but are not sure where you want to move?
How about making the decision based on the best opportunity for jobs?
Forbes published a list of the best cities for jobs in 2007 (link is to a table) and an interesting article. I would not personally recommend a decision based only on that factor, but if some of these cities are on your possibles list, this is good information to have.
Then, while you're at it, why not check out Neighboroo.com to obtain detailed information on the cost of living, housing, schools, crime and more in the city or cities that appeal to you.
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My experiences with home inspectors have been pretty good, although I know there are some who are not so competent. And let’s face it they are normally not trades people so their inspections may be less thorough than, say, a licensed plumber. Nor should they be expected to be as knowledgeable. Plus there are always those darned disclosures and disclaimers.If they recommend further evaluation, it is probably wise to listen.
Carlsbad
Calling in the professionals (a licensed plumber, electrician, HVAC vendor, roofing contractor) will enable you to gain a better idea of the nature of the problems, how they can be addressed, and the potential costs (some will do estimates for free, others will charge a fee to be subtracted if you engage their services). Given the hourly rates that the trades charge, knowing these potential costs can make a difference in your decision to buy, since these repairs, if significant, could end up costing thousands of dollars and you must take them on yourself after the purchase.
This is a strong recommendation for both buyers and sellers, whether you are a first time buyer, first time seller, or experienced in both buying and selling. And if you are relocating to a new state this is even more important since things are likely done differently there than what you may be used to.
Are you considering a relocation but are not sure where you want to move?