Category: Uncategorized
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Finding a Deal on a Home Not Listed
Choosing an agent to hire means everything. Its important not to use the first one you stumble across on the internet because it was their listing and you think you’ll get a better deal by using them. What’s more important is to do some research on LOCAL agents that are knowledgable of the area, work full time and have access to great deals that aren’t even listed. I’d like to share with you a couple of scenarios where I’ve been able to score some great deals for my clients for deals that weren’t ever on the market!Most recently, Feb 2017 my clients purchased the Ron Howard’s Family Estate in Boulder Bay. This particular set of clients were looking for nearly 3 years (mostly online). Once they aggressively started looking in November of 2016 I started to learn exactly what they were looking for. I knew someone that had interviewed for a listing that sounded like it would be right up their alley. While this agent wasn’t going to get the listing due to a strong relationship that had been developed by another agent he let me know about the listing and how much they’d be asking for it when they hit the market.Meanwhile, the sellers agreed to have my clients take a look at the home without advertising it and listing it on the MLS and my clients fell in LOVE. What a great house! 4 bedrooms, 2 bathrooms, Pottery Barn style oversized A Frame on nearly 1/3 acre with lake views and a 2 car garage! It sits right across the street from the lake and is such a beautiful setting. Unfortunately some other clients fell in love and wrote an offer too. By providing a strong offer, a letter from my clients and their family and proof of funds we got it and closed within 2 weeks! In a market like we were experiencing in Feb 2017 if this home had been listed in the MLS it would have easily drawn multiple offers. What a deal for my clients and their family!Add to that another one I just opened escrow on March 1, 2017. A cute studio was listed about 4 months ago and didn’t sell due to bad photography. I just opened escrow on it with my client for $125k in Big Bear Lake! Right now there are 2 homes in the ENTIRE valley that are listed under $125k so I’m pretty happy we were able to find her such a good deal. This same client bought another home from me that was an off market listing back in the summer of 2016. That was the most incredible story on how we found that one!The moral of the stories listed above are just to find an agent that has relationships with potential sellers. In a market like we have right now its important to find off market listings because of our low inventory. Low inventory causes multiple offers and drives the prices upwards which is not what I want for my buyers.If you have a certain criteria of what you are looking for and are ready to go give me a call at 909-744-2190 or email me at rachael@mountainunique.com. Looking forward to working with you! -
Use Your Agent’s Recommended Mortgage Lender
New real estate agents hand out a list of recommended mortgage lenders. An agent can’t survive in the real estate business without a good mortgage lender or two, or three or more to refer. When it comes to selecting a mortgage lender to work with, buyers often don’t know which they should do first:- -select their own mortgage lender
- -or hire a real estate agent.
On one hand, if they hire a real estate agent to start showing them homes without getting preapproved by a mortgage lender, they might not know whether they are qualified or what they are qualified for.If they should be so lucky as to stumble across the perfect home their first day out touring with me, they won’t be able to make a valid offer on that home without a preapproval letter.Still, being a REALTOR/BROKER, my advice is to first hire a real estate agent (ME) before selecting a mortgage lender. Your real estate agent will be with you from start to finish and involved in all areas of the home buying experience. The mortgage lender handles only the financing. In case you are wondering what’s in it for the REALTOR, being suspicious of ulterior motives is not unusual — the answer is there is zero financial incentive to the REALTOR from the mortgage lender for the recommendation.Can a REALTOR Receive a Kickback for Recommending a Mortgage Lender?
It is against RESPA to receive a kickback for a referral to a mortgage lender.A mortgage lender cannot reward a real estate agent for sending business to that mortgage lender. Section 8 of the RESPA prohibits anyone from receiving compensation or some sort of payment in exchange for a referral on a federal mortgage loan. Since almost all conventional loans are sold to government-sponsored entities such as Fannie Mae or Freddie Mac and the remainder are either federal FHA loans or VA, RESPA applies to just about every mortgage loan.
Should Borrowers Choose a Mortgage Lender Based on Rates and Fees?
The most important items to consider when choosing a mortgage lender recommended by an agent is not the interest rate, and it’s not the loan fees, not a misprint. Throw everything about what you think you know about mortgage lenders out the window and shopping for a loan because it is not all about the fees charged. Popular banking websites know consumers believe otherwise, though, which is why they treat you like you’re a 5-year-old by dangling sparkly interest rates and APR rates in your face.Bottom line is most lenders charge nearly the same rate. They have access to pretty much the same bags of money. All national institutional lenders compete against other institutional lenders, and their rates are competitive. They are also limited in the types of loans and terms they can offer, often quoting only in-house rates.Whereas a mortgage broker, for example, might have access to larger pools of money from a wider variety of sources.Until your loan rate is locked, that interest rate can also vary because rates change more than once daily. A rate promised in the morning could be higher by the afternoon. Don’t get lured by 1/8 percentage points that swing up or down.A mortgage lender might also advertise special deals such as free appraisals but the cost of that appraisal might be buried elsewhere. Or, a mortgage lender might offer you a so-called free home security system, the cost of which is absorbed into the monthly fee you are required to pay to the home security company. When your mother told you there is no free lunch, believe her, there is no free lunch. Don’t get suckered by slick websites and fast-talking sales pitches. Saving yourself $300 on a $300,000 loan, for example, is minuscule, it is .001 and pretty much worthless if the loan doesn’t fund due to ineptness.The most important things a mortgage lender can do for you is process your loan quickly, efficiently, without errors, and close on time.Why a Home Buyer Should Consider a Realtor Recommended Mortgage Lender
Your real estate agent (ME) wants your transaction to close smoothly, with no hiccups or surprises, and one of the biggest factors of buying a home is the financing end of the arrangement. It’s a place where many things can go wrong, from a mortgage lender being careless when scrutinizing the loan application, to misplacing documents, not asking for the right documents, overlooking potential trouble spots and red flags, to forgetting to order an appraisal and ultimately not being able to close the file on time.The lender depends on a team of individuals to process a loan, including the final say in the matter, the underwriter. If your mortgage lender is not detail oriented, inexperienced or otherwise not exceptionally organized, a home buyer can needlessly suffer through the closing.Real estate agents who routinely close a lot of business have experience working with a variety of mortgage lenders, and they know which lenders under promise and over deliver. They know which lenders outshine all the rest. You can rely on your agent’s intimate knowledge by choosing to use the mortgage lender your agent recommends. These types of mortgage lenders also realize that if they fail to perform to an agent’s expectations, that agent will stop referring business. A referral from a real estate agent to a mortgage lender is earned business; it can’t be bought. Your agent has a relationship with that mortgage lender, and it’s partly that relationship that will ensure a stress-free transaction. You owe it to yourself to at least talk to the agent’s recommended mortgage lender.Think about your relationship with an unknown banking department where you are nothing more than a small number to that person who clocks out every day at 5 PM. Instead, wouldn’t you prefer to be the lifeline of business to the mortgage lender who burns the midnight oil to ensure your file closes on time? Think about this as you picture yourself sitting on top of your boxes and waiting for the movers. You can’t afford a snafu. Most home buyers want their new home purchase to be handled thoughtfully and to close within the contract period. Odds are if you use your agent’s mortgage lender, that scenario is more likely to happen.Closing thoughts: Many mortgage loans are sold after closing. Don’t assume that if you choose a bank where you maintain accounts because you feel a misplaced loyalty that your loan will remain at that bank. -
Rental Recommendations
Many of my clients are looking for income property in Big Bear. Sometimes its best to put the cart before the horse and think about who you’ll be renting it out with first. Many times by creating this relationship up front they can help guide, with me, on which properties are going to be the best for income generating. Below are my 3 favorite companies that have been doing great things with my clients investment properties.
Destination Big Bear http://www.destinationbigbear.com/ 909-752-0234
The guys to talk to here are Evan and Nick. Great people and their main focus is getting QUALITY homes on their program. They want homes that the owners are going to be active and responsive to allowing repairs anytime there is a complaint. I love companies like this that are proactive because they do not want uphappy renters! The upside to them are that they are really selective to what they take. The downside to them are that they are really selective to what they take.
Big Bear Vacations http://www.bigbearvacations.com/ 909-866-8200
On the other side of the spectrum is Big Bear Vacations. The gal to talk to here is Christina Lindsey. She newly stepped into the position of New Homes Coordinator and people are loving her. Big Bear Vacations is a company I used to manage at and what brought me out to Big Bear. I know you will be pleased with their performance. The plus to Big Bear Vacations is that they have a million dollar marketing budget and make outbound calls to follow up with clients interested in staying. The downside is that they charge booking fees to guests and owners to book a stay and also as an owner you get a cleaning fee to stay in your home.
Vacasa https://www.vacasa.com/ 909-253-6708
Another great company. Smaller but knows what they are doing. They’ve been growing ever since they expanded into Big Bear. Many of my clients have been really happy with their model. They have great photography and do a nice 3D tour of the homes also. Lastly they offer a program where they will offer you a monthly amount to just take over your home and be able to rent it as they want. A couple owners I know have done this and like it because it guarantees the monthly mortgage. The plus side to them is they’re still small and do really well for their clients. The downside for me is that I don’t really know the company as well as the others so I don’t really have a downside.
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Home Evaluation in 5 Feet of Snow
Just got a call from an expired listing in regards to his cabins on the Blvd. I had to run from my office in the Village of Big Bear Lake to get to the property since the berm is 6+ feet high and there was no where to park!
Nice place with 65 feet of frontage on Big Bear Blvd zoned C-3 Commercial/Visitor Use. Can stay as it is existing with the 3 cabins on it or build a Hotel/Motel/Bed and Breakfast. Endless Opportunities!
Call for more info 909-744-2190
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Condo on the Slopes of Big Bear!
Take a look at this fabulous condo right on the slopes of Big Bear Mountain in Big Bear Lake California.
Owner is motivated to sell, not listed in the MLS.
http://www.tourfactory.com/
1690454 Asking price $299,000
Location, location, location! ski in ski out! fronts bear mountain resort. walk to bear mountain golf course. just down the street from the forest entry! this awesome unit is at the base of bear mountain. walk out the door and get on the lift. upgraded flooring, nicely furnished, turn-key. great income potential, hot tub, tennis court what else do you need. move in ready.
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Winter Storm MLK Weekend 2017!
Mother Nature provided what is a perfect winter holiday weekend in Big Bear. With a couple of feet of new snow during a 36-hour period and the possibility of a few lingering snow showers, skiers, snowboarders and anyone who wants to experience the winter wonderland its at their fingertips.Big Bear Mountain Resorts reported another 6 inches of fresh powder overnight, adding to the 2 feet received Jan 13. The season is shaping up to be a fabulous winter, with more snow on the way later in the week.Chains were required on all roads leading into the mountains including Highway 18 and 38. Fog is reported on Highway 38 between Onyx Summit and Lake William. R-2 restrictions are in place meaning all vehicles must have chains except those with four-wheel or all-wheel-drive and snow tires on all four wheels.Jan. 13 began with a power outage across Big Bear Valley. Residents and visitors made the best of the dark, and enjoyed the snow until the power was restored around noon. Snow continued to fall throughout the day setting up the ideal holiday weekend conditions.A new storm system is in the extended forecast with snow beginning on Thursday, Jan 19.As always if you’re thinking of buying or selling a Big Bear Cabin or know someone who is, give me a call, 909-744-2190 or email at rachael@bigbearsold.com.Hope you had a great MLK Weekend! Don’t miss the upcoming forecast below- MORE SNOW ON THE WAY!Rachael SmithRe/Max Big Bear
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10 THINGS TO REALIZE WHEN SELLING A HOME
I know you hate to imagine swallowing 10 tough pills when you’re thinking about selling a home, yet it happens. There can be some tough pills you have to deal with once that sign goes in the front yard and the sale doesn’t go as planned and you weren’t prepared for the outcome.
Handling the tough pills is the discussion here. The tough pills and how best to resolve them. You’ll be glad to learn now instead of learning the hard way, while you’re in the midst of selling your home. Swallow hard and let’s jump in.
Don’t Expect Dollar For Dollar Return From Your Lovely UpgradesBuyers will only pay what the local Real Estate market will bear and not what you spent. Unfortunately when you over improve, you risk losing the money you invested. Therefore, choose wisely.
A minor Kitchen remodel will recoup roughly 80% of your costs, which varies according to the area in which you live. An upgraded Kitchen however, can certainly have added appeal to bring in more interested Buyers. Simply know you cannot add the cost of the remodel to your home’s selling price.
Don’t let this discourage you however, as there are a few home feature replacements that will recoup over 100% of the cost. Now that’s good to hear. This good news will offset the fact that most will not come in at 100% coverage.
To brighten your mood, if you replace your front door with a new steel replacement door you can look at recouping your cost nicely at about 110% of the cost. You liked that good news, I’m sure! It’s short lived, as I must continue with the 9 other tough pills to swallow when selling a home. Let’s keep going.
Just Because Your Neighbors Home Sold For Such And Such Doesn’t Mean Your Home Will Sell For The Same Amount Of MoneyIf I could tell you the number of times I’ve heard homeowners spout out that their neighbors home sold for $350,000 so their home should too, as they just love the home that they’ve lived in for the past 15 years. Little do they know that their neighbors home just had a complete Kitchen renovation. Do they think a Buyer will pay the same price for the home they’re trying to sell that has an outdated Kitchen with laminate countertops and cabinets? I bet you know the answer to that. Emotional attachment routinely gets in the way of making an educated decision regarding the home you want to sell. You simply need to trust the advice of a Real Estate professional who sells homes for a living, like I do.
Get Rid Of Your Realtor FriendsWhat, get rid of your friends you ask?! One of your friends that you chum around with, has their Real Estate license and occasionally dabs in selling homes. She sold her mom’s home when her mom had died this past year and she’s helping her cousin who is relocating to Boca Raton Florida to escape the winter cold from Michigan. Other than that, you can’t remember her last Real Estate transaction. She really doesn’t have the time while fulfilling a full time job as administrative assistant to a busy law firm. But heck, you think, “…she’s my friend, how can she do me wrong?…” After all, the two of you have so much in common.
There are so many ways that she can do you wrong. In fact, these wrong ways will stop you from selling your home. Can you afford to take the risk? I understand it’s not always easy to say “no”, especially to a friend, but in this case, you must. Hire a skilled Real Estate Agent and sell your home fast and for the most money.
You Have To Keep You Home Show Ready When Selling
Did you know that over 81% of home Buyers express that it’s easier for them to envision living in a home when it’s staged and show ready? Not a made up percentage either as the National Association of REALTORSⓇreported.
Plan your showing schedule so when a prospective home Buyer visits, it will be a breeze for them to see themselves living in your home. If you always keep a tidy, neat home than just a quick notice that a Buyer is on their way should be enough. However, if you need a little more time to spruce up, then an hour’s notice to a home showing or up to 24 hours might be a requirement you’ll need. If you work all day, make sure your home is pristine before you leave for the day even if no showings have been scheduled.
What a pain in the you know what, you think! Would you rather be inconvenienced for a few weeks before you get an offer on your home, or do you want it drawn out for months on end? It gets drawn out when Buyers visit your home and see a mess, while the previously staged home now seems non-existent. Know that there aren’t any shortcuts or tricks to avoid this either. (Note that I said receiving an offer within a few weeks. This brings up a whole other topic not covered in this Real Estate article, that discusses the importance of pricing a home for sale so you get offers and your home doesn’t languish on the market for weeks on end.)
Not Everybody Will Love Your Home In Its Current Condition And/Or Style
Understanding this from the beginning will result in less heartaches. More than likely you love your home. You love how you decorated your home. You love that red dining room wall. You love having the children’s bedrooms right next to your bedroom. Yet, diversity makes the world go round and some prospective Buyers may like certain things about your home, while not other things about your home. They may plan a remodel. Understanding Buyer differences and that certain things about your home will appeal to certain Buyers, while not all things will appeal to them. Not all Buyers will like where your home is located, how your home is decorated or what amenities your neighborhood offers them or lack of amenities. What does matter is that just one Buyer thinks the price of your home is fair, likes where your home is located and can envision themselves living in your home, even if they want to get rid of the red dining room wall and do a bit of remodeling. That’s okay. It doesn’t matter. You just need that one Buyer. Of course, if your home is priced right and presented well there will likely be more than one interested Buyer, particularly in the current Real Estate market that showcases a Seller’s market in most southeast Florida cities. So remember, if they send you an offer to buy your home, you’re halfway there.
Eliminating Your Garage To Add On An Extra Room In Your Home Will Cost You Many Prospective BuyersYou thought you would convert your garage to have the use of a home office. Your argument is that many Buyers want a home office, don’t they? Sure they do, but not at the expense of losing a garage. Do you now understand the tradeoff here? If that garage was really a must, then swallow hard and accept the fact that the perfect Buyer may be harder to come by for you when selling your home.
Your Home’s Selling Price Is Not A Simple Square Foot Calculation
What? No way. Really, you ask? Who knew?! Unfortunately, you’re not alone, as many, including Real Estate Agents, wrongfully calculate a home simply by its square footage. A home’s value is so much more than it’s square footage. It’s about the updates or no updates, it’s about the good/bad location, it’s about the functionality, it’s about the condition, it’s just so much more that must be factored into your home’s selling price.
Now, that you’re feeling that lump in your throat as you really had no idea, by all means, make sure your Real Estate Agent doesn’t try a simple square foot calculation, as that’s just one of many things to avoid in a Real Estate Agent.
Not Requiring A Solid Pre-Approval From Prospective Buyers You Risk Not Selling Your Home
“Oh, but I do on all Buyer’s offers. See, this letter says they’re pre qualified to buy our home”. Too funny! How many times have I heard Buyers say they’re pre qualified to buy a home. I’ll respond to them by saying, “… oh, okay, so you provided your Mortgage Lender with your bank/asset statements, pay stubs, tax returns and your credit report?…”. “Well no,” they’ll reply. “We just had a phone conversation and I told them how much money I made and that I have good credit and they advised me that based upon that, I’d be qualified to buy a home with a sales price of $350,000”. I shiver in thought. Here we go again. Unfortunately, such a conversation is worthless, utterly without value. Meaningless. All of the financials mentioned above need to be reviewed by the Mortgage Lender in order to get a meaningful Pre-Approval letter.
The Pre-Approval letter will provide home Sellers with the best knowledge of knowing the Buyer’s ability to secure a mortgage. Without it, you could go through all the steps of selling a home only to find out a week before closing that the Buyer’s Lender cannot approve them for a loan. Could you imagine finding that out, after all you’ve gone through in getting to that point in the Real Estate transaction? That would be really hard to take, hard to swallow, wouldn’t it? So will you require a strong Pre-Approval letter now? I thought you’d say yes.
There May Be A Gap Between The Time You Sell Your Home And Buy Your HomePerfect timing of selling your home and then buying your home can certainly happen, yet not always 100% of the time. In the event, there’s a snag and you can’t move into the new home, it’s best to anticipate such an event and don’t be thrown into a tailspin when it happens. You may have to put your sold home belongings briefly into storage while you shelter up in a short term rental or bunk with family and friends until you can move into your new home. Knowing it can happen is best so you don’t worry yourself crazy over it, just anticipate.
