What Should You Know about Earnest Money?

Buying a San Fernando Valley home? Get a full home search,   
Selling your San Fernando Valley home?  Free Home Price Evaluation

Today we are talking about the top things buyers need to know about earnest money deposits. This is the money that is paid by buyers after mutual acceptance to prove they are serious about your offer. 

Typically in California, the earnest money deposit is 3% of the purchase price, but varies based on the purchase price as well as the financing. For example, with FHA or VA financing, the earnest money will be less than 3.5%.

Per the contract, the buyer has three days to get the earnest money to escrow. Most of our clients like to wire the money, but if you look at the purchase agreement, you will see you can send a personal check as well. 

The only time the buyer can get their earnest money back is during the contingency period. If it’s not an all-cash offer, the buyer has the opportunity to get their earnest money back with no penalty if there is a major issue with the home. 

Now, if the buyer cancels a few days before escrow just because they found another home they like better, the seller would be able to go after the buyer for their good faith deposit. Once the buyer removes their contingencies, that’s when the deposit becomes at risk. 

If you have any questions about earnest money deposits and how they work in your neighborhood, shoot us a quick email or give us a call. 

3 Important Questions When Hiring a Home Inspector

Buying a San Fernando Valley  home? Get a full home search,   
Selling your San Fernando Valley home?  Free Home Price Evaluation

Today we'll be speaking about some very important questions that you need to be asking your home inspector when you have them come out and inspect your property, or your potential property. 

To help us with this, we have my preferred vendor: Keith Morgan of Property Inspection Consultants.

1. Look at their credentials. There is no such thing as a licensed home inspector in the state of California, so you want to look for the California Real Estate Inspection Association. This places credentials on inspectors after a rigorous exam. This is the same exam that home inspectors nationwide must take, and only 50% of people pass it.
2. Review their experience. Everybody has to start out somewhere, but you're better off picking a more experienced inspector. They will be more familiar with structures, as well as different builders in the area.
3. Pick an inspector that communicates well. Written reports are required in California, so you need to have someone who can communicate well in writing and in person. There are many things that you'll have to discuss with the inspector in order to determine if the house is desirable or not, so pick someone that you're comfortable with and able to communicate with.

If you need any more information about this subject, or if you require any other sort of real estate assistance in Porter Ranch, please don't hesitate to contact me!

3 Things to Consider When Selling a Home with Contingencies

Buying a San Fernando Valley  home? Get a full home search,   
Selling your San Fernando Valley home?  Free Home Price Evaluation

A lot of buyers are out in Porter Ranch right now, and they're looking to purchase a home with contingencies. Today we are talking about the three most important things to remember when dealing with contingent offers. They are becoming more and more common here in California, so we want you to keep these three things in mind: 

1. Be flexible to the buyer's/seller's needs
Buying or selling a home is all about compromise, and being able to be flexible to each other's needs ensures a smooth and successful transaction.

2. You have to be committed to the process
You need to treat your home as a business decision, and be committed to selling for the long haul. Buyers don't want to buy from somebody who is not committed to selling, because they don't want the transaction to be slowed down by the owner.

3. Make sure you are prepared
You should have a good idea of what you want before the home comes on the market. This way when it does, you'll recognize it, and be ready to make an offer. 

If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!

What Types of Improvements Add Value to Your Porter Ranch Home?

Buying a San Fernando Valley  home? Get a full home search,   
Selling your San Fernando Valley home?  Free Home Price Evaluation

Now is a great time to sell a home in Porter Ranch. Before you put your home on the market, it's important to have it looking nice and in the best condition possible. Some people believe that making expensive repairs and remodels will net them a lot more money when they go to sell their home. However, this is not the case, and making a lot of inexpensive repairs can actually save you more money.

We're in a seller's market, so even small improvements like improving the carpet, repainting, cleaning, decluttering, and doing some landscaping work can net you a few extra dollars when you go to sell. We have a shortage of inventory right now, so buyers are looking for homes that are in good condition and priced well. There is no need to do a massive remodel, because most of the time that will not net you a lot of extra money when you sell. 

If you're unsure of what to do to your home before you sell it, please don't hesitate to contact us. We don't want you to do a large remodel and then not see any return on the investment. Sometimes what you like in a renovation is not the same as what the buyer likes.

So, if you have any questions about what repairs you might want to make before you sell, please don't hesitate to reach out to me. I'm always here to help!

What's the Key to a Successful Home Sale?

Buying a San Fernando Valley  home? Get a full home search,   Selling your San Fernando Valley home?  Free Home Price Evaluation

The busy spring real estate market is in full swing here in the Porter Ranch area. Since many people are getting ready to sell their homes, we thought now would be a great time to discuss what to avoid when listing your home.

When a home fails to sell, 99.9% of the time it's because it is overpriced from the beginning. Many people list their home well above its market value, thinking that doing so will leave plenty of room for negotiation. The problem with overpricing is it often scares buyers away, so a negotiation never even takes place.

It's crucial to remember that the first two weeks and the first 30 days are the most crucial times for being on the market. Most likely, during this time, the people who are looking in your price range will have had time to take a look at your home; if it's overpriced, you're going to attract the wrong buyers! Once your home sits on the market for an extended period of time, buyers start to wonder whether something is wrong with the property.

If you have questions about how you can sell quickly and for top dollar, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We are always available to help!

Determining How Long Your Home will be on the Market

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

 
How Long does it Take to Sell?

Clients have been asking me about this lately, so I wanted to touch on this subject. The good news for all my clients in Porter Ranch is that we're still in quite a seller's market. Although we're entering the spring buying & selling season, you will still be in good shape to sell.

The answer to this question is not so clear-cut because the sale of your home depends on a lot of different things. Usually it comes down to the pricing and conditioning of the house, but by and large we are seeing anywhere from 20-40 days on market here in San Fernando Valley.

A lot of people may also wonder why they are not seeing offers on their homes. Luckily, the National Association of Realtors has a good statistic for us that says if you have gotten 10 showings but 0 offers, then your home is likely to be overpriced. The NAR also says that if you go 2 weeks without a showing, you would also be overpriced. 

Being on the market for 3-5 weeks is the norm right now, but if you're priced right and your home is in good condition, then you can expect that number to decrease further. Price and condition are the 2 main factors right now, so make sure your home is priced accurately and attractively, and that your home is in great condition. Also be sure to keep track of how long you have been on the market as well as how many showing you have been going through. 

Thanks again for tuning in, and if you have any questions about this topic please feel free to contact me. If you have any other inquiries regarding real estate in Porter Ranch or San Fernando Valley, please do not hesitate to contact me either.