Things are really heating up in the real estate market in San Diego. Encountering multiple offer situations is not uncommon these days, especially with properties that are priced well and are in good condition. So, is it a seller’s market?

To answer the question we need to divide the market into attached and detached homes.

Attached homes: In the attached market many areas of San Diego are officially in the seller’s market territory. What does this mean? It means that sellers are receiving multiple offers, prices are going up, and sellers are able to often drive prices higher and pick their choice of offers. This means that buyers do not have as many opportunities to submit lowball offers, even when they would realistically pay more but want to “feel the waters.”

Of course, long gone are the days of severely inflated prices, but I will take a thorough look at comparable sold properties, and advise my clients to stay as close as they can to those numbers (assuming the properties are similar to the one on which they are placing an offer). Slight increases from the comps are definitely justified, as the market is trending upwards in many developments.

Overbidding is often something a buyer may want to do to secure getting their offer accepted, and as a listing agent I have received multiple offers sufficiently over the asking price. However, as much as I would like my sellers to get the highest price possible for their home, when I doubted that the offered price would survive an appraisal I counseled my sellers to choose not the highest offer, but the one most likely to close (cash offers first, and then loans with very qualified buyers and nice downpayments). So, it is not just about the numbers, but buyers DO have to be aware that if they truly want a certain property they need to present their highest and best offer in today’s attached home market.

Detached homes: Detached homes are still in the buyer’s market category here in San Diego in most areas, but in reality it depends on the area, inventory and price range. In most north county coastal cities, such as Carlsbad, Encinitas and Solana Beach, we have seen prices stabilizing and little change in trending. As more inventory comes onto the market as we head into summer it just may create a trend toward higher prices, but we will have to see how strong demand is at that time.

Personally, I have seen that listings are going very quickly in the detached market. Three recent listings of mine all received offers within days of listing, including multiple offers. So my advice is that it really matters in which area the property is located, and that buyers still want to write offers as strong as possible, unless they know there are no other offers and they feel they have time for negotiations. It is important you work with a skilled buyer’s agent who knows the local market and can negotiate well on your behalf.

The bottom line is that if you are a buyer looking for a detached home, it is still a great time to negotiate. Have your agent do her research on the comparables, and come in with a strong offer…but there is no need to offer an amount sufficiently above comparable solds. If your agent knows there are other offers on the property of course you need to discuss how to present your offer in the best light to give it the highest chance of acceptance.

Happy house hunting, and please let me know if you have any market questions you would like to see answered here.

Photos courtesy of Dreamstime.

So many sellers ask me when they can repurchase after a short sale, foreclosure or bankruptcy. Following is a great synopsis of when a seller can repurchase after a distressed sale or bankruptcy, based on the type of loan/bankruptcy:

FHA Loan:

Chapter 7:              2 yrs.

Chapter 13:            2 yrs.

Foreclosure:          3 yrs.

Short Sale:             3 yrs, * unless borrower was not late prior to short sale (on ANY obligation) and was not trying to take advantage of the market.

VA Loan:

Chapter 7:                2 yrs.

Chapter 13:              2 yrs.

Foreclosure:            3 yrs.

Short Sale:               3 yrs.

VA High Balance:

Chapter 7:               7 yrs.

Chapter 13:             7 yrs.

Foreclosure:            7 yrs.

Short Sale:              7 yrs.

Conventional Loan:

Chapter 7:              4 yrs.*

Chapter 13:            2 yrs. from discharge date or 4 yrs. from dismissal date*

Foreclosure:           7 yrs.*

Deed in Lieu:

• 2 yrs. if subject loan is 80% ltv or less

• 4 yrs. if subject loan is 90% ltv or less

• 7 yrs. if subject loan is over 90%ltv

Short Sale:

• 2 yrs. if subject loan is 80% ltv or less

• 4 yrs. if subject loan is 90% ltv or less

• 7 yrs. if subject loan is over 90% ltv

BK Chapter 7:     4 year waiting period is required measured from the discharge date or dismissal date of the BK.  A 2 yr. waiting period is permitted if extenuating circumstances can be documented.

BK Chapter 13:   4 year waiting period is required for a Chapter 13 dismissal.  A 2yr. waiting period will be permitted with extenuating circumstances (* See below)

Multiple BK filings:  for a borrower with more than one BK filing in the last 7 years, a 5 yr. waiting period is required.

Foreclosure:       7 year waiting period is required, and is measured from the completion date of the foreclosure sale date.

A 3 yr. waiting period is permitted if extenuating circumstances can be documented and the loan-to-value rules are applied, MUST to be a purchase of a principle residence or a limited cash out refinance on an owner occupied, second home or non-owner.

*What are extenuating circumstances?  They are non-recurring events that are beyond the borrower’s control that result in a sudden, significant and prolonged reduction in income or a catastrophic increase in financial obligations.

This analysis was provided courtesy of Daniel Dobbs with American Commerce Mortgage. He can be reached at 949-250-3981 or dandobbs6@gmail.com.

Unethical people stink. We can find them in every profession, including real estate. I certainly have seen my share of such types and I know many other agents who have stories of their own. The frustrating fact is that many agents do not report ethical violations, and these people continue to work in such a manner. What can we do about it? It’s simple: REPORT THEM.

For those who are unaware, real estate agents and brokers, like many other professionals, are bound by a strict code of ethics. If you have never read the code you should – it is built on the idea that we are dealing with legal situations and that we represent others in these situations. It promotes professionalism and respect for our colleagues, and asks us to strive to do right by our clients, colleagues, our profession, and by society. It is something we should each read at least once a year.

There are a few ways you can report violators:

1.  Report to your local association. This is the quickest way to deal with an ethics violator. Associations may differ in their processes, but my local association has a simple way of doing so. First, a complaint form is filled out. It is submitted along with a written statement and any documentation that the complainant might possess. The complaint is reviewed by a committee, and then is scheduled for a hearing if found to warrant such (the complaints are deemed to be factual). The respondant is notified, has 15 days to respond,  and then both parties attend the hearing.

Many agents do not bother reporting violators because they do not want to face the respondant, or because they do not want to go through the time the process requires. But it is worth it to do so, because these unethical people will just continue to do what they are doing, and you could prevent innocent people from being hurt or damaged due to such actions.

Punishment: The local associations do not have the authority to take a respondant’s license away, but if they feel there are issues of public trust involved they can report the issue to the Department of Real Estate (DRE), which does have authority to revoke licenses.

The local boards can place a letter of warning in the respondant’s file, levy fines, require them to take ethics classes, and suspend membership from the association. If the agent’s association membership is suspended it will be published in the national database, where everyone can see it.

2.  Report to the DRE. The DRE’s role is to investigate potential violations of real estate law, such as financially related scenarios (e.g. where an agent/broker took monetary kickbacks), or loan fraud. Punishment is stricter, as the member could lose his/her license.

Check your agent’s status! You can check whether there have been any issues with your real estate agent/broker by clicking here. For agents and brokers, click on “Real Estate Brokers and Salespersons,” and them enter the required information.

If you are a buyer or seller and feel your agent may have committed an ethical violation, contact his/her broker. You may also want to contact their association and see what options you have in reporting them.

As professionals we need to report violations by other agents. If you are in a transaction and there is something fishy going on, you need to save all copies of communications with the other person, and any other evidence. Do not worry about getting involved in an investigation – we as a profession are only as strong as we choose to be. If we do not report those who don’t follow laws and rules, we are only hurting our profession and ourselves.

If you love real estate technology – whether you are in the industry, or whether you are a buyer or seller -  click here to read my latest blog post on MoneyPress. I discuss some of the newer apps, websites, tools and technology that make our lives a little bit easier. In our fast-paced world, it is nice to keep up with the latest tools and gadgets.

Real estate agents or any professionals, take heed: Do you edit everything you send out? Do you read EVERY document the other side sends over involved with a sale? Do you read the contract (even better yet, have you EVER really read the contract in it’s entirety)?

In the real estate profession, as well as many others, there are those who are detail oriented, those who are completely sloppy, and just about all kinds of people somewhere in between. But it will never cease to amaze me when agents do not check their work product before sending it out. There is absolutely no excuse, as you are dealing with contracts that have legal ramifications.

If you represent somebody in a legal transaction, you better make sure you do the following – not only is the risk of a lawsuit great, but your entire reputation is on the line. As an agent, you are required to represent your clients to the best of your ability. If you cannot do so, you may need to seek another profession.

Representation Basics:

1.  Read. This is so basic a requirement, yet it never ceases to amaze me how many agents do not read contracts, both before and after they have written them. First of all, if you have never read the required forms, you should! Once you have filled it in on behalf of a client, make sure you go over it with a fine tooth comb and fill in items you may have missed, change those that need changing, etc. If you forget to check or uncheck a box, it could cost your clients money, heartache, loss of a sale or subject them to a lawsuit. They are trusting you!

2.  Explain. It is important to go over the contract with your clients before and after it is written. Explain to them what the terms mean, and make sure that you have conveyed their wishes properly.

3.  Proof/edit. This instruction applies not just to a contract or other document you have written, but to everything you do. I am often dumbfounded by some of the marketing pieces I receive in the mail from real estate agents – typos, improper grammar, unfocused photos, blurry words…I would never send anything out like that! Even some big agents in my area do, and it usually makes me both laugh and feel angry…after all, it doesn’t raise the bar too high for the rest of us, does it?

4.  Put all communications in writing. As a lawyer I know how important this is – even if your client is your family member. If you have a conversation with a client, make sure to send a message referencing what you discussed, and keep all communications in an email folder. If anything happens down the road, like a lawsuit, this is the only way you will be able to prove what was discussed.

5.  Admit when you don’t know the answer, and get help or advice! It is ok to not know the answers sometimes – we all face this issue, and we are only human. Admit that you do not know and then find someone who does. This applies to tricky situations too, where you have to make a call. Getting the feedback of another whom you trust (like your broker, or if you are the broker, another trusted broker or attorney) could be a major difference in the outcome. The California Association of Realtors (C.A.R.) has a free legal hotline for members, as most associations do – take advantage of it.

6.  Do your homework first. No matter what you do you need to investigate before submitting any offers, taking any listings, or venturing into a short sale or lender owned property. Contact your title representative and find out if title is clean and find out about liens on the property. Contact the listing agent and make sure s/he knows what they are doing if it is a distressed property. Pull up the assessor record. Don’t ever jump into something blindly without knowledge of what you may be getting into – it simply isn’t fair to your clients.

7.  Always act professionally. This applies not only to your interactions with your clients, but also to fellow real estate agents and brokers. There are too many people in many industries who do not treat others in a professional manner. Eventually you will sink yourself with a bad rap if you can’t be a true professional. Real estate agents all know whom they don’t want to work with in their area…you don’t want to be that person.

As in any profession, there are always bad seeds who will tarnish things for the group as a whole, but if we all make sure that we do right by our clients, colleagues and by ourselves, we will not only make others happy, but we will also feel happier and have a productive career.

[ey•juhnt]  noun  1. a person or business authorized to act on another’s behalf  (via Dictionary.com).

Those who have worked with a good real estate agent understand the value such an agent adds to the purchase or sale of a home. Sure, you can sell your home by yourself, and you can search for homes on your own as well, but the skills of a seasoned agent can help you through tricky situations, where a decision can make or break a sale. Let’s look at some of the things a good agent can offer a buyer or seller.

Experience. An agent’s experience with multiple issues can be helpful to a buyer or seller. These issues can include how to negotiate with a particular agent, trends in a certain neighborhood, advice in tough situations, staging and showing advice in a sale, and numerous other issues that an agent may have encountered during her career. All this experience is a benefit to a buyer or seller.

Advice. This goes hand in hand with experience. Agents know their hyper local market well. They understand trends in different areas and neighborhoods, and can compare and contrast a property  to recent comparable properties. This is helpful in deciding at what price to write or counter an offer – such knowledge can be critical in multiple offer situations, where there is a big price discrepancy, or other issues regarding the home  that could alter the value. A good agent’s advice could mean the difference between a sale and a cancelled contract.

Legal issue avoidance. Many people seem to forget that selling or buying a home involves legal paperwork, and can lead to lawsuits if the paperwork is not filled out properly, or if things are not handled correctly. A good agent will not only make sure that you are doing everything correctly to avoid litigation down the road, but will be able to offer advice and discuss options so that this type of situation does not become reality. Think of it as someone looking out for your best interests.

Getting you in the door first (literally). If you are a buyer and work with an agent who is really in touch with the local market, you have a big advantage. In the last year I have helped several clients purchase homes before they came on the MLS, all because I either knew about an upcoming listing or because I did research and found distressed sellers who were about to sell their homes. These sales worked out great for my clients, because they made offers before the properties hit the MLS, with no competition from other buyers. It is another plus of working with an agent who is on top of things.

All in all, it is important to have a trusting relationship with your real estate agent. You should be able to discuss things with your agent and be aware of the ramifications of your decisions throughout the sales process, whether you are buying or selling real estate. Listen to your agent’s advice before making a decision – agents work for you, and with your best interests in mind.

I had a wonderful holiday weekend wth my family, and it got me thinking about the lessons the holidays- Passover and Easter – can teach us. Both honor freedom, rebirth, involve family gatherings and being thankful. These are great opportunities for us to teach our children about what is truly important in life, and provide reminders for us as well. Let’s take a look at some of the important lessons we can learn:

1. Be kind. Holidays always involve kindness, as we all gather together and share a meal. I always tell my children that kindness is the best quality one can possess. Carrying over that wonderful feeling you have during the holidays to every day make you feel good and invites more positive energy into your life.

2. Spend time with family. My favorite part of any holiday is to spend time with my family. This is what it’s all about, what’s really important in life. If we don’t have connections, we lose our sense of self. There is nothing in life more important.

3. Appreciate. On holidays, as with any time we spend with loved ones and take time to relax, we tend to be reminded of how lucky we are, of how much we have to be thankful for. It’s easy to forget to feel appreciative once we get back into our normal routines. But setting aside a time every day to feel appreciation is a great idea, and will also keep you happier.

4. Be strong. Don’t forget the happy feelings you have over the holidays, and take time each day to be with those you love and enjoy a bit of relaxation.

Easter is just days away, and there are lots of fun things to do in North San Diego for the entire family! Here are a few of the highlights:

Carlsbad EGGstravaganza: On Saturday, April 7, this annual celebration will be held at Poinsettia Park from 10:00-1:00. There will be a fun zone with lots of games, food, music and activities, a summer day camp expo, and of course, an egg hunt. It’s great fun for the whole family. For more information click the city website, or call 760-434-2843. Tickets and Fun Zone wristbands are available at Calavera Hills, Harding and Stagecoach Community Centers.

GIA Egg-stravaganza: The Gemological Institute of America in Carlsbad is hosting an Egg-stravaganza of a different, shiny sort. Stop by on Thursday, April 5th all day to see their rare collection of eggs, made from minerals and gems, a collection that has never been on display and has been in collection for 40 years. The exhibit runs through the end of the year. For more information and for directions click  here.

San Diego Botanic Garden Spring Party. Come on over on Saturday, April 7 from 10:00-11:30, or 11:30-1:00 and enjoy the Spring garden party at our amazing Botanic Garden. There is a limit of 50 children per party, and tickets are $12-15 per child, so make sure to check the website to see if there is still room for your child.

Birch Aquarium Eggs-travaganza: Stop by the beautiful Birch Aquarium in La Jolla April 4-7 from 11:00-3:00 to see ocean creatures at this special time of year when they are hatched/born. There are lots of hands-on activities for participants. Visit the website  for more information.

Encinitas Easter Egg Hunt: Come join in the fun in this other favorite egg hunt, which takes place Saturday, April 5th from 10:00-1:00 at Ecke Sports Park. For more information and directions call 760-633-2740.

More Egg Hunts Across North County on Saturday, April 7:

Del Mar

Oceanside

San Marcos & San Elijo Hills

Cardiff by the Sea: Call 760-633-2740 for information

Solana Beach Call 858-720-2453

Carmel Valley: Call 858-552-1616

One of the biggest frustrations in my work is dealing with short sale lenders. With all the recent claims that these lenders are going to embrace short sales and make them quicker, the reality is that is not happening. Why is this so? Your guess is as good as mine, but let’s look at some simple ways the banks could improve on short sale response times, saving everyone aggravation and getting more homes sold, which of course helps the real estate market.

Time frames/mandatory check in times with agents on files. We need to make the short sale process more streamlined. There should be time frames established for each task, including response times. The negotiator for the bank should have daily updates for the agents on status, and be made to comply with the time frames. In a dream world every lender would have to follow the same protocol, which would make short sales easier to understand and close.

Assign one negotiator/closer to each file. One negotiator should be assigned by the bank to the file from the start, regardless of whether the bank uses an electronic system like Equator. The negotiator can then at least be familiar with the file to some extent, from reading his/her notes. Once a task is completed and the file needs to move up the chain of command for signatures, the assigned negotiator should be in contact with the higher-up, and remain actively involved with the file – that way we know the status and do not have to track down who actually has the file. Again, deadlines must be adhered to. I am tired of it taking 3-4 weeks to get a signature – if everything has been approved why does it take so long to sign off? This is ridiculous.

Make electronic systems more flexible. Some systems, like Equator, are great for keeping track of documents and progress. But these systems need to be maintained. When your file is full, oftentimes you are unable to leave further messages for the negotiator, and of course this is the only way you are supposed to contact them. These systems need to be maintained daily, and if they get to a full status they need to be archived so more messages can be input to the file.

Strict time frames for investor-lender communication. One of the most difficult aspects of short sale approval is that while the lender may actually be quick to respond, the investor (the one who actually holds the note, as opposed to the bank/servicer) often takes a long time to approve (and this is required for escrow to be opened). This problem has caused many short sales to fall apart after months of waiting and negotiating, even after the servicing bank says the sale looks good. Investor banks need to establish communication guidelines with the servicers, and stick to them.

Sadly, until these lenders decide to actively do something to  make these sales more streamlined, there is nothing we agents can do. I would love for the bank executives in charge of the loss mitigation programs to have a big press conference, where real estate agents could attend and ask questions…there are so many I can think of. But it would be fascinating to hear the answers. The unfortunate thing is, I don’t believe they even understand why they can’t get these sales closed faster, and they probably have no idea what goes on in reality. Well, at least we can always hope.