Homesmart/Evergreen Realty - Riley White

05/13/2024

It’s been a long time since I wrote about real estate. Covid, inflation, etc., the number of question I get from friends and clients decreased during this time, it wasn’t necessary to. Now it’s a little different. As of July, commissions paid from sellers agent to buyers agent cannot be listed in the MLS. Ok, not a big deal because if you have ( AS YOU SHOULD!) your clients best interest at heart, you did not point out homes for sale based on your commision. In California, that split commission from the sellers agent was fine. In Missouri, where the average price of a home is around $240,000, it might mean something but in this market that won’t buy you a 260 sq ft studio. Most agents glance at it but it they are ethical, your split doesn’t not matter when you show homes to buyers. You represent their interests, not yours.

The second change is buyers must pay their agents to represent them. What has been the norm for 70 years is sellers agent split their commision with the buyers agent for bring them a buyer who has been vetted by the buyers agent to be able to purchase the sellers home, who is willing and able to at least meet the asking price which, through their agent, they can negotiate with seller. Now the buyer must sign a contract with their agent to pay them for their services. Fun, right? Well no. What will be the norm moving forward is the buyer will ask the seller to pay their agents commision or negotiate another for of concession so that they do not have to bear the burden of coming up with their agents commision for representing them at a time when they need every penny. The seller can say no, not going to do that, a power they already have had, and he will only pay his agent. That leaves the buyer on the hook because no one, be they a doctor, a lawyer, an account, or your mechanic working on your car, works for free. Are you about to negotiate with agent concerning commision? Sure, and you should, but every agent has their line in the sand about how low they will go. Agents pay hefty fees for data, insurance, and a whole bunch of things buyers never see. I once had to come up with $2500 for termite work the seller could not afford and the VA said the buyer is not allowed to pay. They were nice people looking for their first home so I paid the work for them and the seller to close the purchase. Did not make a lot of commission in the end but had a lot of satisfaction when I handed them the keys to their new home. The bottom line is if you negotiate a commission of 2% then that is what you owe you agent. That can be mitigated by the seller paying all or part, it can be in the form seller paying closing costs, whatever. But you still the 2% for agents work, even if part of it comes from the seller.

It will mean more paperwork ( which is already a lot ) and solid negotiation but in the end it will work out. If you think you can do this on your own, good luck and have a good attorney on your speed dial. This is California where attorneys get rich off people who think they can go it alone in the biggest investment in most peoples lives.

Just remember, real estate is still the one sure way to build wealth but that’s for another posting.

08/12/2021

It has been a while since I’ve written about real estate. To be honest, it’s been a pretty, well, crappy 16 months.

If you did not buy property two years ago, before all this happened, then you missed out. Even a small condo has appreciated 25-30% the two years, meaning if you bought a small place for $400K, it’s now worth $520K and you could sell it in a week and use that increase as a good down payment on a larger place. That’s how real estate works, if you have the patience.
If you say there is nothing to buy and prices are too high, you’re right. The inventory is about 1/3 of what it normally is and for the last few months it’s been a sellers market with offers 40-75K over asking and buyers facing multiple offers. It’s sucks for buyers lately, including those buyers who sold their homes for truly great offers but now need to find a place to live. Or move out of state, which sounds fine but has its own set of problems.

So what are you to do? Well, understand real estate is always in change and change is starting to take place. Multiple offers way over asking are decreasing and as you look at the MLS there are little arrows that indicate whether the price has increased or decreased and for the first time in a while those down arrows are starting to appear. Sellers who priced their homes at wildly high prices are being forced by the market to drop their listing price.

There are properties now that are reasonably priced. If you are a first time buyer tired of the annual rent increases, start small, build equity, be patient and sell to buy a bigger place as you need to. The key word is patience.
If you have a home now but are thinking it’s time to get something bigger because you need the extra room, then plan ahead and have a strategy to get what you need and want. Again, patience is needed. If you need instant gratification, well them, you are in for problems.

Right now there is a subset in real estate that is affecting the market. Investors, ranging from small to large corporations, are buying properties for rentals and the
pressure on the market is being felt by buyers. The investors will offer above asking and in cash. Hard to resist that if you are a seller. But as ever, that will change too.

Ok, here are the my suggestions based on 32 years in the business.
1) Before you start, make sure you are willing to commit to the process, whether you’re buying or selling. If you are buying, find out how much you can buy without living on Top Raman for years. Talk to Realtor. I don’t say that because I am one but because in the long run you will need expertise to guide you through the labyrinth of California real estate.
Talk to your lender, find out what programs are available. Interest rates are still low but inflation is kicking in for the first time in decades so you really need to have a game plan to put in an offer that you can live with and will be accepted by the seller.
2) Always try to think a few steps ahead. Where do you want to live, how long do you want to live in your home before you need to change. Planning a family, planning on retirement, going bigger or downsizing, control your future the most you can.
3) Have patience ( yeah, I’ve said that a few times but it’s for a reason). Don’t expect to get something for nothing, life’s not like that normally. But to be honest, holidays in your own home is great. If patience brings that to you then BE PATIENT. It’s worth it in the end.

There is lot of moving parts in real estate right now, probably more then any other time. Life is more complex, decisions harder, the future, as always, not too
clear. If you have questions, advice, or help trying to find out how you fit into buying or selling your home, let me know. I, too, am a patient guy who
likes to help.

12/04/2019

If you are thinking of selling your home in the rapidly approaching new year, then it’s time you take a look at your home. It’s December 4th and now is the time to begin.

If you have made the decision to move, for whatever reason, there are a few things you need to know. Right now the inventory is low, even for this time of year, and next year is an unknown. If the inventory remains low then you are in a good position to sell your place to a eager buyers market. There are more buyers then listings but these are discrimination shoppers. They will not jump on a property that is over priced or in need of repair, it’s just not that kind of market, even if the supply is low and demand high. Don’t expect multiple offers at or above asking price unless your home is move in ready.

Look at your home with a buyers eye. Interest rates are low but creeping up and a buyer will be reluctant to save money one way if he has to spend it another way, like making improvements. So, look at your place as they would.
High utility areas, like bathrooms, kitchens, and flooring are important. Is your bathroom looking a little dated? Is your kitchen original? Is your carpet thin, looking a little sad, or are tiles cracked from when you dropped that pot, have your pets left their mark on the wood flooring? Would you buy your own house as it stands now?
Paint, new fixtures, landscaping all can be done in a reasonable amount of time but the baths, kitchen, flooring are a bigger job and may take a lot longer to complete. If you want to start the “selling season” ( February to June and the second half from July to September) then you had better start getting ready now.

The question you need to ask is you home ready. Do you need to make improvements our is what you have good enough. If you know a Realtor or an appraiser, ask them to take a look and give you an opinion. They are the pros and it may be worth the price of an appraisal to see how you stand against the rest of the market. A Realtor won’t charge you for an opinion and guessing on your part is not going to make it. Too high and it sits on the market for months, too low and you leave money on the table. It may be that your homes only need a little paint or a few new fixtures and you’re ready to go. If not, a pro can help. It’s probably your major investment, so treat it as such. Think about having a home inspection so you are aware of any problems. A little money up front can save you a lot later and make for a easy and smooth closing.

When you are ready to sell, you will be ready. Selling or buying a home can be stressing enough, planning eases that stress.

07/16/2019

Sometimes it hard to think about something, let alone write about it but there are things that you need to think about. Death. Got your attention?

Those of you who are smart enough and lucky enough to own your home should face the fact that A) your home is most likely your largest investment and B) despite your best intentions, you will die one day. What becomes of your home? well, you can do nothing and if your married it goes to your spouse. If your not married and you die without a will, then you are intestate and the state decides who it goes to (usually a family member of some sort).
With a will, it goes to whom you designate. You name an executor to execute your will and it goes out how you want. Now, this is NOT a time to get back at your sister or brother because they broke your favorite toy when you were 5, this is you last will and testament and is how you will be remembered.
If you establish a trust of you property, it will allow you to avoid a long probate ( 6 months to 2 years!). Married couples put the trust in their names so that if one spouse dies, the other spouse still controls the trust. When both spouses die, then a successor to the trust (so named by the two spouse to administer the trust when they both die) acts to preserve the assets of the trust, such as investments and property, and liquidates them to disperse the funds as stated in the will. In most cases the executor of the will and the successor to the trust are the same, although that is not always the case. Why do I bring all this depressing stuff up? Well, have been the realtor in a number of trust sales of homes and have seen what can happen.

When you pick a executor and a successor to an estate, PLEASE do it with a lot of thought. I have seen sales become screaming matches that leave family members forever lost to each other. On the plus side ( and more frequently ) I've seen family cooperate, get the job done, and come out stronger then ever.The whole difference is who you choose to for the job.

You need to think long and hard about this because its important the person chosen is the best. Do not pick someone solely because they are the oldest or you like the best, or because then look like you! The person you chose should be the smartest, the one with the most integrity, and, hopefully, with some business savvy. That may be the oldest or the youngest, or somewhere in between but remember you are disbursing the assets you have acquired throughout your life, be it property, investments, or Aunt Marys jewels. Now is not the time to act like a avenging angel, now is the time to do what the people who choose, you wanted done. So be careful who you chose. and UPDATE the will and trust every so often to adjust to what is happening in the present. The person who looked to be a great executor 10 years ago may no be that great now.

If you are in you twenties, you think you are immortal. Your not. If you are in your thirties you may think you have time. Maybe, maybe not. If you're in your forties things become a little more focused and you know that you want to take care of the ones you care about if you die. From the fifties on, you know time will be getting shorter and you want to be ready. Your home is a major asset and you need to keep it as a asset for your loved ones and see that they are taken care of.

I suggest you find a good trust attorney to advise you, it is important.

05/17/2019

04/24/2019

I've often told my clients who want to buy to check with a lender before you start so you know what you can qualify for. It saves time and frustration and can open possibilities that you may not have thought of. As I talked to a young couple yesterday, I could see that look on their face of being overwhelmed by the process. They went to an open house Sunday which started them thinking about getting a place for themselves. Their rent just went from $2000 to $2100 for their 1 bedroom, 1 bath apartment of about 750 sq ft. When I asked what their price range was, they looked at each other, both hoping the other knew the answer. Neither did.

Here are some realities of a normal offer. Unless you have a ton of cash, the first thing you need to do (even before looking at properties or even before talking to a Realtor) is talk to a lender. That could be your bank, your credit union, an independent lender, or your rich uncle ( in short supply ). This cost you a few points on your credit score but you NEED to know what you qualify for because without that you are spinning your wheels. How much can you put down? If not a lot, you may want to ask about first time buyers down payment assistance programs.

Ok, you know how much house or condo you can buy and what your interest rate will be ( starting to go up by the way ). Now you talk to a Realtor because you will look on line and see properties you like but without a Realtor to act on you behalf, you could pay a lot more then you need to. You could go to the guy who listed on line and ask him to help you but he is representing the seller and who do you think his first loyalty rests with? The job of a Realtor is to protect your interests and to help however they can. Their loyalty and responsibility is to you. Now you look for your home, backed by your lender and your Realtor. They will insure you are aware of all the aspects of buying property, insure you are prequalified ( Sellers agent will not bother looking at a offer unless you have a prequalification ), money for a good faith deposit ( to show you are serious about buying, your Realtor will guide you), proof of funds for the down payment and any number of requests the Seller agent might have ( remember, they are looking out for their clients interests too).

You have found a place you now know you are qualified for, you have a Realtor to help and guide you. Now the "fun" begins. Trust you Realtor and trust your lender because they succeed only if you succeed. If you have questions about anything concerning buying or selling a home, let me help. That's what I'm here for. Below are two lenders I have I trust and they are GOOD.

Sylvia Barrios Ghani Justin Casares
Movement Mortgage New American Funding
(949) 449-5665 (949) 230-1880

,Riley White
Homesmart/Evergreen Realty
(949) 887-1456
[email protected]

03/06/2019

Last week I briefly wrote about selling your home. I say brief because I could have gone on and on about selling but you got the short version. Today it's about buying, another long subject.

I just started writing about all the reasons you should not be renting but you already know them, even if you won't admit to yourselves. Bottom line, renting does not move you to financial security that your own property does. Yeah, I know all the reasons you give but for every reason you have, there is a better reason why you should. what other investment lets you leverage a smaller amount of money and expect a better return, in terms of yearly appreciation ( which can run between 2 and 8%, sometimes more. Talk to a financial advisor about your potential investment.

Ok, that's out of the way. When you decide to buy, what happens. First thing is talk to a loan officer, whether at a bank or a mortgage rep, to see how much of a home you can buy, based on a number of things. Don't think you need 20% down to buy (although that reduces the monthly mortgage payment) because 32% of purchases now are made with 5% or less down. As a matter of fact, only 28% are bought buy 20% or more down or bought outright. Talk to you loan officer and learn the programs. And shop for a loan person you feel comfortable with and have confidence in. They are going to look at mostly your whole life, so use someone you like.
Get pre-qualified before you start looking so you don't waste time looking at properties you can't afford. And don't look at a property and get excited about buying only to be told you need to pre-qualled. By the time you do get the ok, that property could already have been sold.

Now there are a few things to think about. Just because you can't buy a larger home now, start where you can. If all you can qualify for is a condo, GET THE CONDO! Its better then paying rent and you can live in it until you have sufficient equality to buy bigger. Remember that part about appreciation? That is where you get the larger down for a larger property. If you have to start small, do it. Your folks did it and your grandparents too.

Owning your own home is a great way to start your way to financial security. The other intangibles are its your mortgage you are paying and not a landlords. It's yours to do with as you please, to decorate as you please. Paint the walls red if you want, it's your home!

This weekend I will go into the nuts and bolts of buying, what to look for, what pitfall to avoid, etc.

As always, if you have any questions, give me a call at (949) 887-1456. There are no dumb or little questions, just questions. I'm here to help.

02/28/2019

There are a lot of reasons why people sell there homes. When you're young, it normally because you want more space, because of kids or just to have another bedroom or bath. When you are older the reasons increase. Your kids have moved out and you don't need extra bedrooms and the upkeep and maintenance had gotten to be more then it's worth. You may love two stories when you are younger but stairs are not your friends as time goes on.
Sometimes it's for financial reasons. You want to sell because your house was always you prime retirement fund and if you bought 20 years ago, that was a great investment. Maybe you just want to move somewhere else and are willing to swallow what you have now for a quieter place and slower pace. Or maybe you have to because you can no longer afford what you have. That happens more then you think.

Whatever the reasons are here, if you have decided to list, here are a few hints.look at your property with eyes of a buyer, meaning you may love the magenta walls and the relaxed unkept garden but others won't. You want to get the best price you can, so think like a buyer.
Have a termite inspection done before listing and get any work done that is necessary. As you will find out, it better when you have control of the process rather then the buyer. Factor any repairs needed into the listing price.
Get a home inspection done. After years in a place, you may not notice the flaws but be sure the buyers inspector will. Again, you have control. And, again any repairs will be reflected in a list price. Some of the worst contention between seller and buyer are the inspections. Do before hand and even if you do not make repairs, you can negotiate from a stronger position and you can hand the reports to the buyer. All of this saves time and money. There would be no delays, you control the process, you now know it can affect the price, and there will be no last minute surprises.
On higher end homes, 800 and above, I also recommend a independent appraisal. This can help you and your Realtor set the highest price the market allows. If, like me, your Realtor has been an appraiser, so much the better.

Now the meat of the issue. Right now, it's a buyer market. If you want your property to sell and not just list for 6 months, listen to the pros. In a buyer market, pricing is everything. Listen to suggestions they make. It doesn't mean you have to take them but if you want the best price in a timely manner, take their advice.

If you have any questions, let me know.
(949) 887-1456

02/11/2019

U.S. Coast Guard crews, Orange County Sheriff's deputies and lifeguards found a 20-year-old man who went missing Sunday after he was riding a Yamaha jet ski in the waters off of Long Beach, according to...

01/29/2019

At today's office meeting we were told we were all sales people. I kept my mouth shut but I'm not a salesman. I don't sell homes, I don't sell a home to a buyer. What I am is a Realtor. That means I'm you advisor, counselor, confidant, and sometimes the guy that says no. I will tell you the truth, weather you want to hear or not, I will inform you of the market, shepherd you through the confusion of a real estate transaction, and, most importantly, look after your interests.

I'm a news ju**ie and have been since October 1962, when I was a 13 year old kid who wondered if there would be a world when I woke up the next day. The Cuban Missile Crisis turned me into a a guy who wanted to know about my world and I still am. I read Barron's, Bloomberg, The Wall Street Journal, CNBC, and anything I can get me hands on ( ask Erin, it drives her nuts ) to find out what is what. The only reason I bring this up is, I stay current with trends, with markets, with politics, and economics. If I am gong to help you buying or selling your home, I better know what's going on past just the myriad of forms you need to sign and how to navigate a real estate transaction. I need to be able to answer your questions with whatever information I can get on any subject.

One of the people I'm working with looking for a condo asked if I thought the values would be going down because a friend heard they were. I need to know the probable answer ( if I knew all the answers for sure I would be on a island in the South Pacific ), no values will be increasing at a slower rate then the last couple of years, but, yes, they will probably go up 2-3% this year. I mean, this isn't Mobile, Alabama or Washington, Indiana. This is California and values Increase during normal years.

My point is I use my knowledge to help buyers to get the home they were looking for and I help sellers get the most they can when selling their homes. In both cases I give my clients the best advise I can based on what I know. The 10,000 + appraisals I did give me unique insights that help my sellers and my constant need to know what's going on lets me help my buyers make a good decision.

Salesman? Not really. Advisor, yes. Guide, true that.