First Things First: Get Pre-Approved!

Attention all buyers! Let us not forget the first rule of buying a new home: you must get pre-approved for a home loan before you begin your home search.  So many home buyers overlook this important first step towards home ownership simply for the fact that they are wrapped up in the thrill of the hunt and the fun of finding their dream home, with no thought given to the practical matters required to make it happen. Let's face it: we all want to walk through the threshold of our perfect home and feel that endorphin rush of warm-fuzzies as we breathe a sigh of relief and utter the words, "I'm home," ...just then Prince Charming rides up on his white horse with the seven dwarfs in tow. In other words, it's just a fairy tale until you figure out how you're going to pay the mortgage. I'd hate to see you heartbroken over the realization that the milion dollar home of your dreams will remain a dream since you can only afford a modest, $600k 'reality' home. If you are a serious buyer, then you must figure out your finances before you set yourself up for disappointment because of unrealistic expectations.

If I don't know what you are qualified for, I will have no idea what homes I can show you. Your pre-approval letter contains the following very important information:

(courtesy of Cynthia Larsen- Sonoma County- Safe Haven Realty)

• The maximum purchase amount - It makes no sense whatsoever to show you homes that are above the maximum purchase amount you qualify for, unless the home is overpriced. That I can determine by looking at comparable properties that have recently sold nearby.
• Whether you have chosen a direct lender or a mortgage broker - If you are using a mortgage broker, I cannot show you HUD-owned homes. HUD requires a pre-approval letter on a direct lender's letterhead.
• The type of loan (Conventional, FHA, VA) - If you are qualified for anything other than a conventional loan, buying a condo or a "flipped" home can be very difficult and time consuming.
• Loan and/or Funding Conditions - We need to talk about your ability to provide documentation the lender requires on a timely basis.

I understand that you might not want to get pre-approved until you find the right house. Or maybe you won't want to buy a house at all if you find out that $xxx,xxx can only get you a home in need of TLC in a less than desirable neighborhood.

We won't know that until you get pre-approved. In Real Estate, the pre-approval letter must come first. Let's call it the chicken. After that, we can go out together and look for that perfect egg.

Please contact me directly at 323-461-6570 if you would like more information about the real estate market in Urban L.A., or any information contained in this blog. For a free list of homes for sale, please visit UrbanPulseProperties.com.

Los Angeles Bank Owned Pool Property

It's 101 degrees today in Los Angeles. Hello, Indian Summer! The real estate market remains tenuous, but triple digit weather has everyone looking for the bargain of the century: bank owned property with a pool and a view! I worked with several investors last year who wouldn't look at anything but bank-owned pool homes because they saw the intrinsic value in owning a home that had the added benefit of a pool- a 'must' for days like this in Los Angeles. As an REO broker, I've found that regardless of condition, people love, love, love a Los Angeles bargain property with a pool and will jump all over the chance to own one. if you manage get your offer accepted and snag a bank owned property with a pool and a view, I cannot stress enough the importance of having the pool thoroughly inspected. Remember: most banks these days sell property 'as is' and they're not likely to pay for costly repairs. You need to know exactly what you're getting into, especially with bank owned homes with pools in Los Angeles, since these properties have often been neglected for months and there are likely to be issues with the structure and mechanical components of the pool. Once you know what's required to get the home in good, working order you can evaluate whether your bargain Los Angeles bank owned property with a pool is really such a bargain after all. Happy house hunting and thanks to Lisa Delzompo for her great post on Murrieta bank-owned pool homes.

Please contact me directly at 323-461-6570 if you would like more information about the real estate market in Urban L.A., or any information contained in this blog. For a free list of homes for sale, please visit UrbanPulseProperties.com.

Via Lisa Delzompo (PRW Lending (loans) and Sand to Sea Properties, Inc. (homes)):
Video of Murrieta Bank-Owned Pool Home

Amenities of this neighborhood and this home:

• Quiet, tree-lined streets with sidewalks,
• Large, open floor plan, over 3600 sq ft,
• Granite counters in kitchen,
• Wooden and wrought-iron staircase,
• Bedroom and office downstairs,
• Pool has jacuzzi and waterfall,
• Views unobstructed of the Santa Rosa Plateau to the west,
• On a cul-de-sac,
• Half mile to Thompson Middle School,
• 3/4 mile to Murrieta Valley High School,

Keep in mind, we do not have this listing.  I would love to have it, since it is so close to where I live and work, but for now I will be waiting for it to come on the market, for it to have signs in the yard and for it to be open for offers from my clients who want a Murrieta bank-owned pool home with views on a cul-de-sac and are ready for a fixer-upper as far as the back yard goes.  I have not recently seen the inside, but it was highly upgraded before going through the foreclosure process.
Here is video of a well-maintained pool in the same neighborhood (also not currently listed, but audio has some more information on the Murrieta pool homes in the Vineyard, and it's a lovely pool:

What Do People Want in a Home Today?

Ask, and you shall receive. Maybe the answers you're seeking aren't exactly what you expected, but thoughtful response to questions that may seem obvious help us to develop a fresh perspective, refine the operating principles of our lives and businesses, and lead us in new directions to meet our goals. Certainly, we have all been challenged with the task of asking ourselves the tough questions in the last few years of hardship. Those tough questions are different for everyone, but if you are really interested in growth and progress, it's time to have a 'coming to Jesus' with yourself about what's no longer working, where you want to go, and how you plan to get there.
The real estate industry is no exception and it, like the rest of us, is starting to ask the tough questions. I recently happened upon this survey, from a local real estate market research firm in Orange County, CA. In response to changing times, this company is conducting market research on home preferences and offering a chance to win a $500 Apple Gift Card for anyone who completes the survey. The study aims to answer the following about what people want in a home today:

• Has the willingness to commute changed?
• What does Gen Y say about renting versus owning?
• Where will the Boomers retire? When? And to what lifestyle?
• What are the differences in the ideal home design by generation?
• What do consumers want in community, and how much will they pay for it?
• Who wants to downsize, and will the McMansion make a comeback?
• Can urban living prosper outside of the core of downtown areas?
• Do consumers really want green technology in their homes, or is green in their pockets more important? Do they expect both?
• How should the cultural trend toward customization impact home builder business strategy? When should builders include features or option them?

I am so inspired by the list of great questions from this survey, that I am going to conduct my own survey in my market area to find out what people want in a home today in Los Angeles. The more we know, the better the service we can provide to one another and ourselves.

Please contact me directly at 323-461-6570 if you would like more information about the real estate market in Urban L.A., or any information contained in this blog. For a free list of homes for sale, please visit UrbanPulseProperties.com.

Beverly Hills homes are selling like hotcakes (relatively speaking)! Sales of Beverly Hills homes increased, by one-hundred and eighty-six percent (186%), in August, 2010, and in comparison to the same month last year. Beverly Hills home sales have been on the rise since hitting a low point for the year in the first quarter. Despite a steady increase in sales over the last several months, only twenty (20) Beverly Hills homes were sold in August of 2010, while the Combined L.A./Westside MLS reflects the sale of only seven (7) Beverly Hills homes for August 2009.

Beverly Hills Homes Sold for August 2010:

Supply continues to drastically outpace demand, although there was a 19% decrease in Beverly Hills homes for sale in August 2010, as compared with the same month last year. There were one-hundred and fifty-eight (158) Beverly Hills homes listed for sale in August of 2010.

Sales prices for Beverly Hills homes barely increased by one percent (1%) in August of 2010 and compared to the same period last year. Lack of movement in price indicates the top of the threshold of tolerance for pricing of homes in this area, though a one percent increase for this price point translates to a substantial dollar amount. The median ‘sold’ price for Beverly Hills homes in August, 2010 was two-million nine-hundred and fifty-thousand dollars ($2,950,000) as compared to an average sold price of two-million nine-hundred and twenty-thousand dollars ($2,920,000) just a year ago. 

Median Sold Price of Downtown L.A.  Condos for July 2010:

The average 'days on market' for Beverly Hills homes in August 2010 has increased by 20%, or about 11 additional days on the market from this time last year. This may be an indicator that the market in this area has very little tolerance for even nominal price increases. Even though sales of homes in Beverly Hills have increased substantially since this time last year, buyers are really taking their time before deciding to move forward with home purchases in Beverly Hills.  

Perhaps by wishful thinking on the part of home sellers, listing prices of Beverly Hills homes have increased by twenty-two percent (22%) from July 2009 to July 2010. However, the actual sales prices of Beverly Hills has risen by only one percent (1%), which indicates that those in the market for a home are 'just not buying it,' at least in Beverly Hills. With sales showing a healthy increase since last year, it's a safe bet to assume that sellers are giving in, opting to sell their homes for true market value instead of their pie-in-the-sky listing prices. 

Please contact me if you would like more information about the real estate market in Urban L.A., or the Beverly Hills home market. 

For a free list of homes for sale, please visit UrbanPulseProperties.com.

Finding the Best Schools in Los Angeles

Finding the best school for your child is one of the most important decisions a parent can make in Los Angeles. Budget cuts, failing curriculum, crowded classrooms, and unmotivated and underpaid teachers are a reality in California's present day school system.  Even so, many parents do not have the option of providing their kids with private school education so they must make every effort to make the best out of California's less-than-ideal school system. With the end of Summer upon us, parents are well in to the throes of considering these complicated questions when it comes to their childrens' education.

Here are some of the questions you should consider when evaluating the best schools in Los Angeles for your child (courtesy of Wayne Davis, Realtor):

          Do Your Research: Scholastic Considerations

What is the curriculum?

What are the SAT scores?

What grade does computer education start at?

What is the total student population?

What is the average class size?

What is the student-teacher ration for your child’s grade level? 

          Make Contact: Connect with Key People and Organizations

If the district has a magnet program that you are interested in, ask the Magnet Director how long the waiting list is and whether your child will get in.
Contact the Director of Computer Education to find out the student-computer ratio and if the district’s teachers have participated in a computer training program.
Contact the Parent Teacher Organization and find out how active it is. Studies have shown that children’s academic success increases when parents are actively involved in their education.

At the School: Will Your Child be Happy There?
Make an appointment with the Principal for you and your children to visit the school when school is in session so you can observe a normal school day. This is your chance to learn the personality of the school.

Check classrooms for interested and smiling faces.

Look at the projects and student artwork on the walls.

Do the students dress like your kids and do they look friendly?

Find out the style of dress for the first day of school so you can help your kids fit in.

There are many concrete factors to consider in finding the best choice for a school in Los Angeles. After you’ve done your research, visited the school and checked in in with your kids, the best indicator you have is your intuition and good common sense.

By the way, I sell real estate throughout Urban L.A., so please feel free to visit me at UrbanPulseProperties.com for a complimentary list of homes for sale.

West Hollywood Cash Buyers Beware! Do Your Due Diligence!

Buyer beware! I cannot emphasize this point enough to all potential cash home buyers in West Hollywood and beyond: Do your homework! Due diligence is a critical part of the home buying process, but it is astounding how many home buyers will skimp on their home inspection when paying cash for a real estate investment. It's vital to find all the costly flaws before you buy, whether the purchase be with cash or a home loan.
Many homes on the market today are distressed properties -- foreclosures and short sales -- and that only increases the importance of good inspections since many of these homes have years of deferred maintenance, some of which is not immediately apparent by visual inspection.
A home inspection can find problems with the foundation, electrical, plumbing, roof, attic insulation, and heating and air conditioning. In California, separate licensed inspectors offer mold, termite, geological, and other specialized inspections.
if you're considering a cash home purchase in West Hollywood, be sure to align yourself with an experienced real estate agent who can give you expert advise on the type of inspections you should consider if you are paying cash or financing a home purchase in West Hollywood or the greater Los Angeles area. If you still think inspections are a waste of money, read Lenn Harley's recent blog post on the hazards of wishful thinking when it comes to a cash home purchase...

 Via Lenn Harley, Real Estate Broker, Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate):

CASH HOME BUYERS BEWARE!  DO YOUR HOME WORK AND PROTECT YOUR INVESTMENT!
A telephone call from a lovely gentleman a few minutes ago serves as a reminder that, just because you're paying cash for a real estate purchase doesn't mean that you should neglect DUE DILIGENCE.
The gentleman has recently received a NOTICE from the County of Prince William in northern Virginia about a roof"that was installed by the previous owner over a patio in the back yard of the town home.  He was been noticed that the "roof" over the patio may have been installed with the benefit of a building permit and he should contact them and provide the county permit office with a plat of the property.
This is a town home property which means, to me, that there is a Home Owners Association.
The gentleman cannot locate the agent who represented him in the purchase but a few questions revealed:
1.  He did not have a survey made of the property prior to closing on the CASH PURCHASE.
2.  He did not read the HOA documents prior to closing on the property.
3.  He did not receive a plat of the property prior to closing (probably included in the HOA docs along with requirements for additions).
I FOUND YOU ON GOOGLE.  I receive calls of this nature regularly because when folks search Google for anything real estate related in my market area, they may run into one of my web sites or blogs.  Don't you love it???  I do.  I don't know what keyword phrase he used in Google but my web site was returned in the SERP.
My advice to the gentleman was to

• Review his HOA docs rules regarding modification, additions, etc.
• Contact the HOA and request a plat to present to the county. 
• I directed him to a web site where he can pull a the public records for his property.

I couldn't resist lecturing him about not performing due diligence before buying a piece of real estate.  Who knows, next time he's ready to buy, he just might remember who gave him some guidance in his moment of need.  He was very grateful and for some reason, I suspect that I will hear from him in the future.  Or, he will recommend me to another consumer of real estate services.
WHAT COULD HAPPEN?  Several things come to mind including but not limited to:

• The county can inspect and issue a building permit for the structure.
• The county can inspect and order the structure removed (torn down), which in itself may require a permit. 

NOTE TO CONSUMERS:  Work with an experienced real estate buyers agent who will help guide you to the matters to investigate BEFORE you buy. 

Be A Class Act

'Class is an aura of confidence that is being sure without being cocky. Class has nothing to do with money. Class never runs scared. It is self-discipline and self-knowledge. it's sure footedness that comes with having proved you can meet life.'

I have been re-reading The Success Principles: How to Get from Where You Are to Where You Want to Be, by Jack Canfield. He's the guy that also wrote The Chicken Soup for the Soul Series and I have to say that the book provides a lot of valuable information for uncovering the path towards your best self. One of the last chapters talks about conducting ourselves with class. I must admit that I sometimes wonder if most of us (myself included) haven't forgotten the meaning of the word and what it means to walk through life accordingly. Having class is about:

Living by your own highest standards- you must have personal standards that are more demanding and exacting than that of conventional society. These standards are chosen, established and applied.

Maintaining dignity and grace under pressure- you must remain unwavering, calm, and certain in the face of chaos. Your steadiness gives courage and security to others.

Focusing and improving the behavior of others- lead by example and others will rise to meet your standard out of respect and admiration and the knowledge that they too can be better than they've given themselves credit for.

Operating from a larger, inclusive perspective- the ability to have compassion and deep understanding is linked to our own feelings of humanity. Remember that you are inextricably linked to others.

Increasing the quality of every experience- create more than you consume. Enrich the lives of others by finding ways to introduce greater beauty, significance, uniqueness, and stimulation into every experience.

Counteracting meanness, pettiness, and vulgarity- instead, act with generosity of spirit, gratitude, respect, courtesy, and appreciation. Act unexpectedly, in a manner that elevates and acknowledges others.

Taking responsibility for actions and results- be accountable. Tell the truth about your failures, transform your defeats into progress.

Strengthening the integrity of all situations- challenge yourself. Find ways to grow, develop, and add value to the world.

Expanding the meaning of being human- Approach everyone you meet with new eyes. Give yourself and others the opportunity and freedom to express their uniqueness in the world.

Increasing the confidence and capabilities of others- be an 'energy creator,' not an 'energy drainer.' Build your own confidence by defining and consciously choosing your governing ideals. Your strength of conviction will provide a solid foundation for others to discover greater creativity, cooperation, progress, and growth.

I don't know about you, but in the face of adversity, I've found the need to revisit these principles. It's easy to be classy when life isn't throwing you curveballs (and how often does that happen?)  I hope you found it a needed reminder also...

By the way, I sell real estate throughout Urban L.A., so please feel welcomed to visit me at UrbanPulseProperties.com for a complimentary list of homes for sale.