Seven Money-Saving Tips for Moving
June 25th, 2009 Categories: Moving Tips & Advice, Relocation Information
You are planning a move. Maybe it’s voluntary; maybe not. Nevertheless, you are planning to move and you need to sell your present home. You want a fair profit. Your goal is to get as much money out of the sale of your home as you can, to recoup some of the time and investment you’ve put into it over the years. But you also realize you don’t have a lot of time. You need a relatively quick sale.
That’s the dilemma. 
How do you decide how much to ask for your house in order to secure a fair profit and generate a quick sale at the same time - with the least amount of headache and hassle?
Take heart. It’s possible.
Regardless of the market - be it hot or cold; regardless of the season - be it summer or winter; and regardless of the fact the house down the street has been sitting on the market forever without any takers - you can accomplish the goal of selling your home fast and at a fair price if you follow a few simple principles.
1. Think of the building you are preparing to sell as a house - not your home. You must detach yourself emotionally from the sale of your property and view it as just another commodity for sale on the open market. It is no more and no less a residential property for sale to a buyer who is ready, willing, and able to purchase it.
2. Realize what you think your house is worth has absolutely no merit. Being a commodity on the open market, a house is only worth what other people are willing to pay for that particular style of house, in that particular area, and at this particular time.
3. Determine prices of comparable houses. A lender always hires a professional appraiser to evaluate the value of a house before underwriting a loan. The most important factor an appraiser uses in determining the value of a house is the reliable data gathered from comparing the selling price of similar properties in style, size, location, and relative time frame - usually 30 to 60 days.
4. Hire an appraiser to give you a documented opinion as to your house’s value. Realize, however, the appraisal you receive is only the appraiser’s professional opinion based on reliable market data - but it is only an opinion. Only a buyer willing to put money in your pocket can tell you what your house is actually worth. And be aware that appraisals are often too high - appraisers are more likely to overstate the value of a house rather than understate it.
5. Ask a broker for help. Another way to help determine what your house is fairly worth is to ask a real estate agent. Many agents offer a free “comparative market analysis” in the hope you will list your house with them. Get the broker’s opinions in writing and obtain at least three appraisals from different brokers. This will protect you from a common but tragic practice of telling you what you want to hear. In the trade it is called “buying the listing” and it happens with appalling frequency.
6. Learn the asking prices of similar houses for sale. While actual sales prices of recently sold houses are the best source of information, knowing the asking prices of houses still on the market will give an idea of the top range of market values in your area.
7. Gain an overall view of the local housing market. Is the market hot or cold? Is it a buyer’s market or seller’s market? It is also helpful to know the total inventory of houses currently on the market in relation to the number of houses currently pending sale. For instance if 356 houses are for sale and 42 houses are pending sale, the ratio is 1:8. This means there is one buyer per eight houses for sale. Called a “Total Market Analysis,” this data can be the most powerful information you can gather to best position your house for a fast, profitable sale.
(Bonus) Price your own home. Given all the above data you should now be in a position to determine an asking price for your house which will ensure a fair profit and a fast sale. The trick is to price your home a little below current asking prices and a little higher than actual selling prices. The actual price you choose would best be determined by a total market analysis and would ensure a lot of buyer activity as well as providing you a fair, over market profit. It’s like having your cake and eating it too! 
With the right information, you can price your house to sell for the most money, in the shortest amount of time, and with the least amount of hassle. Simply follow the seven basic principles and you are well on your way to a fast, profitable sale.
If you would like in depth information on how to best price your home for a quick, profitable sale as well as receive a free, complimentary “Total Market Analysis” - contact the HotOnRealEstate Team at 877-571-2289 or, if you prefer to receive more information by mail, just drop us an email at suejohnson@windermere.com 24 hours, day or night!
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What If Your Chimney Fell On Your Neighbor? Cover Yourself With An Umbrella!
June 8th, 2009 Categories: Escondido, Insurance Services, Moving Tips & Advice, Rancho Bernardo
What if your chimney fell on your neighbor, injuring him and ruining his expensive sports car, and you wind up facing a $500,000 judgment? If your homeowner’s policy pays a maximum $300,000 for liability, you would be in a tight spot. Where will the rest come from - future earnings, selling your home, forfeiting an inheritance? 
One way to help protect your assets from settlements that exceed the coverage limits of your homeowner’s and auto policies is to purchase personal umbrella liability insurance.
An umbrella policy gets its name because it provides an extra layer of protection in the event you exceed the maximum limits of your other liability insurance. Umbrella policies are usually sold in increments of $1 million, and they typically require deductibles equal to the coverage limits on your homeowner’s and auto policies.
Not Just for the Rich
Juries typically don’t take into account a defendant’s ability to pay when deciding the amount of an award, so exposure to risk can affect people at all income levels. Just having a swimming pool or a teenager could expose you to additional risk. If you don’t have enough liability coverage to resolve a claim or a lawsuit, the plaintiff could go after your house or other assets.
Not Just for Home or Auto
Many umbrella policies include coverage for things excluded on standard auto, renter’s, and homeowner’s policies such as libel, slander, invasion of privacy, defamation of character, or other personal injuries. Some umbrella policies also provide coverage if you face personal liability arising from your service as a board member of a civic, charitable, or religious organization.
When you review your insurance coverage, consider the added protection an umbrella liability policy can offer. A policy can be designed to fit your particular situation and potentially grow with you and your family.
If you would like additional information on umbrella coverage and to get a free no obligation quote, please call me at 760-466-1588. I’m available to discuss your situation and help you get the coverage right. You can also email me at jdobson@jblpremier.com.
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UCLA Anderson Forecast’s Outlook for San Diego County: Recession for Most of 2009 with a Recovery in Housing Market
May 20th, 2009 Categories: Brookside Escondido, Market Trends, Real Estate News, San Diego
The forecast for San Diego County came out from UCLA Anderson and it presents some interesting news for San Diego and the local economy and real estate markets. I’ve reprinted the press release below, dated May 15, 2009. 
The UCLA Anderson Forecast today released its annual economic forecast for San Diego County. The Forecast states the official end month for the national recession is likely to be early in the second half of 2009, and the worst of the problems for San Diego will then be over. The unemployment rate for the nation and San Diego is likely to continue to elevate until growth becomes strong enough to absorb new entrants into the labor market.
“As the U.S. and California economies continue to contract, San Diego’s unemployment rate will grow to 10.3% in 2009. The deterioration in the local economy is led by growing layoffs in non-residential construction, manufacturing and retail jobs,” said Jerry Nickelsburg, senior economist, UCLA Anderson Forecast. “But there is light at the end of the tunnel. A forecast turnaround in the U.S. and California economies later this year should begin the recovery process in San Diego by the end of the year.”
Because 2009 will be a rough year for California, which has larger intrinsic problems than the nation, the San Diego County economy will remain weak. The commercial real estate markets have softened along with the labor markets, and more problems with refinancing this year could weaken the office market even further.
Residential real estate is poised to recover in 2009. Sales of homes have soared in the county and values appear to have stabilized. Both new inventory of homes and foreclosure inventory are currently on the decline.
“As long as homeowner distress does not rebound and recent federal government programs designed to avert foreclosure have some success, a more conventional recovery in the residential sector should be underway this year,” said Mark Schniepp, author of the San Diego forecast report. “By mid to late 2010, the recovery of the broader San Diego County economy should be more convincing and 2011 will be a year of above average economic growth including job and income creation.”
If you would like more information about a specific neighborhood in San Diego we’re here to help. Let us know your questions and we’ll find you the answer.
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March Existing-Home Sales Slip but First-Time Buyers Rise
May 3rd, 2009 Categories: Market Trends, Real Estate News
A latest report from the National Association of Realtors reveals some interesting new facts. Not unexpectedly, home prices continue the downward trend but sales for the month of March were up again. Please read the full report below.
Existing-home sales eased in March but first-time buyers are responding to low mortgage interest rates and tax credits, according to the National Association of Realtors .
Lawrence Yun, NAR chief economist, said the market appears to be stabilizing with modest monthly ups and downs, and that first-time buyers are driving the market. “The share of lower priced home sales has trended up, indicating a return of many first-time buyers, which we also see in a parallel member survey,” he said. “Sales in the upper price ranges remain stalled because of higher interest rates on jumbo loans.”
Although prices rose from February to March, the national median existing-home price for all housing types was $175,200, down 12.4 percent from March 2008. The price increase from February to March was 4.2 percent, which is much higher than the typical 1.8 percent seasonal increase between those two months. Distressed properties, which accounted for just over half of all transactions in March, typically are selling for 20 percent less than traditional homes.
An NAR practitioner survey in March showed first-time buyers accounted for 53 percent of transactions, based largely on contracts offered before the $8,000 first-time home buyer tax credit became available. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit,” Yun said. “By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers are crucial at this stage of a housing recovery. “The housing market always heals from the bottom up, and with large numbers of first-time buyers entering the market it will become a little easier for sellers to trade up or down, according to their needs,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 5.00 percent in March from 5.13 percent in February; the rate was 5.97 percent in March 2008; data collection began in 1971.
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