FAQ

MLS is real estate shorthand for Multiple Listing Service(s). The short answer is Yes, of course, yes, and yes again.

If you have an Agent or Broker who suggests to you that he/she has a client perfect for your property (Commercial or Residential) and therefore there is no need to list on the MLS; or thinks a “pocket listing” is a great idea – “we can shop it to only special high-end buyers”…. Run, Run Away as fast as you can.

The idea that exposing your amazing home, its beautiful photos, spectacular video, and possibly the pristine staging done – to as many people all over the WORLD as humanly possible is just arrogant and not in your best interest.

Side Note: If you are worried about people tromping through your luxury home; this, not a problem – we can do many things to pre-qualify a buyer BEFORE they get to your front porch.

Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your realtor’s advice) so that escrow and settlement with go as smooth as possible.

You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.

During this period of purchasing your home, you are going to need an escrow or settlement company to act as an independent third party so that you know when and who to give your money to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period. This deposit check may also be held by an attorney or in the broker’s trust account. Make sure that there are sufficient funds in your account to cover this check.

The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

The period that you are “in escrow” is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:

Secure the homeowner’s insurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.

Contact local utility companies to schedule to have service turned on when you close escrow.

Schedule the final walk-through inspection. At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a “permanently attached” chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You’ve made it! Once the sale has closed, you’re the proud owner of a new home. Congratulations!

How old is your house? Are you a handyman always fixing things in your own way? Did you just complete a huge remodel with contractors, permits, and blueprints? Do you love your home “just the way it is”? Raised your five kids there, and love all the little dings nicks that make it your home?

Those are all questions you want to ask – and then there is the final hard question you have to ask yourself: “What is wrong with my house that will make someone pay me less.” If you are not willing to ask that question, then you will be even more shocked when others begin to tear your house apart piece by piece – and tell you why it’s worthless.

In just about every situation we tell our Sellers (and eventually any Buyer) get a HOME INSPECTION FIRST! Inspect the Roof, the home’s bones, the chimney, attic, HVAC, electrical panel, crawl under the house, call the Termite Guy and get a Phase I and Phase II report (an estimate). Go as far as to call a roofer and HVAC guy individually to inspect the house and deliver you a report.

WHY Spend that money now? It could be a $1,000 or more….

First, because the Buyer is going to do it and use it against you to negotiate the price down.

Second, if there is a lot of work to be done you can get a contractor to do the repairs for you and be able to show any buyer that these problems have been fixed.

Third, “I don’t have the money to do the repairs”… then maybe we need to re-evaluate the price, and be prepared to offer the seller a “discount” on the sales price for the work (that you already have a good idea as to the cost of).

Fourth, take away the Buyer’s negotiation power by offering a “fixed” or “remodeled” house and you can hold firmer in your selling price.

If you did a remodel a few years ago – SAVE the plans, the permit sign-off card and all photos of the job. This way you can show any buyer that you did the work above board, safely and legally. This will help ensure that you get top dollar for your home.

We basically take on all of the functions of the landlord for your property.

We will inspect the property, meet with the owner or owner’s representative, take photos and make a summary sheet for later review.

We will suggest possible repairs to the property, oversee those repairs and approve the invoices. We can recommend contractors we have used either on our properties or on our personal homes. We do not make-up any contractors invoice. Construction oversight may or may not have an initially negotiated fee, depending on the size of the contract.

We will assist in determining rental value. Offer the property for lease.

Review the applications, screen the applicants, including, but not limited to, a credit report, residency verification, and employment verification. We will be looking for someone who not simply can afford the rent, but has a good payment history, who likes and appreciates the property, will treat the property with respect and not bother the neighbors. Once located, and with your permission, we will execute the lease contracts. We then oversee the property on your behalf.

We charge a monthly fee, or percentage of the Gross Collected Rent for our services.

We will keep you in the loop regarding any major issues, and get your approval for maintenance done over an agreed-upon dollar amount, but you don’t have to deal with the tenants directly.

We will serve the proper notice, keep you in the loop, and if eviction is warranted (our final option) we will turn everything over to our legal counsel to spearhead the process. In most cases, tenants move quietly before the legal business gets too far along, or they negotiate a settlement agreement. All legal fees are unchanged, and you pay no extra fee for our assistance in the process.

Our fee varies with the type of property and, because we charge a percentage of the rent, it varies with the rent amount. The range is between 5% and 11%. For most single family homes it is 6-10%. We charge a one-time fee to fill a vacancy, equal to one month’s rent in the first erm. There are no hidden fees. You pay nothing in advance. We are paid through the money we collect from the tenant. *Marketing costs will be discussed ahead of time and agreed to before the money is spent.

Call 818-781-0255, or send an email to [email protected] and we will answer your questions or set an initial appointment.

CMA is real estate shorthand for “Comparative Market Analysis”. A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.

Real Estate deals fall apart all the time. Emotions, funds (or lack of), agents, buyers, sellers, inspectors, escrow officers, transaction coordinators, and a long list of other reasons can cause a deal to fall apart. Much of the time with negotiation, most of these have a workable solution. Unfortunately, this is not always the case.

But don’t panic. Remember this process is emotionally draining (generally) for both the Buyer & Seller. Do you think your wedding was stressful? Hoe buying has that beat by a mile. This is your home, your “baby” the place you got married in, raised a family in, and likely sent your kids off to school from. Even if you are selling because you are divorcing – and you can’t stand your partner in the process; it does not change the past. This is an emotional, potentially heartbreaking, event.

What about investment? This is your nest egg. The money you have saved for years and the supposed investment income is going t pay for your comfort in retirement. And that perfect tenant; who swore they’d never move – is doing just that. And Escrow is set to close in 30 days…. What do you do?

By letting your Agent/Broker negotiate calmly on your behalf and look at all possibilities, perhaps what could have been a “deal breaker” can be turned into a win-win situation for both the buying and selling parties.

1. Custom Tailored Responsive Web Site
   • Custom Built to work on Desktops, iPads and iPhones.
   • HD photos, motion capture, descriptions, amenities, videos, drones and property tours
   • A Custom branded and unique URL
2. National Marketing campaigns.
   • CRMLS
   • Costar®
   • LoopNet®
   • Realtor.com
   • Instagram®
   • YouTube®
   • Zillow
   • Trullia
   • And many other websites and platforms.
3. High-end Photo and Video Shoots
   • High-end brochures and enticing welcome packages
   • HD drones and cameras
   • Latest video editing trends
4. E-Mail Property Push Campaign
   • Photos and Video sent to 20,000+ active local agents
   • Custom designed layout suited to your property
   • Target market specific so no wasted opportunity
5. Mailer
   • As needed Flyers, Mailers, and oversized showcase cards
   • Direct mail to specific and targeted demographics

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won’t qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line. Fixed Rate Mortgages Consider a fixed rate mortgage if either of the following describes you:

1. You plan on living in your new home for many years, and/or
2. You are not a risk-taker and prefer the stability of knowing how much your payment will be each month. Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages: 15-Year Fixed-Rate:

• Pay off the loan in half the time of a 30-year loan.
• Equity builds up more quickly than in a 30-year loan.
• Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:

• Pay off the loan in 2/3 the time of a 30-year loan.
• The overall interest paid is considerably less than for a 30-year loan.

30-Year Fixed-Rate:

• The most common choice, especially for first-time homebuyers, as it’s the easiest of the fixed-rate loans to qualifying for.
• Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of “padding” between the amount you can afford to spend and the monthly payment for your desired property.
• More desirable if you plan on staying in the same home for years since equity builds more slowly than for shorter-term loans.
• For income tax purposes, this term provides the maximum interest deduction.

Adjustable-Rate Mortgages (ARMs) If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate. Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term. Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up. Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means. Fortunately, the amount an ARM can increase is limited. There are “caps” on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Convertible ARMs If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed. Government Loans Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.

• VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home.
• FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase “FHA approved” when looking at ads for homes.

Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates as well. A lower interest rate means a lower monthly mortgage payment, which can save you money in the long run. Also, it is easier to qualify for a lower payment than a higher one. You basically have two routes to finding the best rate. The first is to do all the research on your own. The second is to use a mortgage broker. Do-It-Yourself With the advent of the Internet, much of this information is readily available online. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through online resources to find the information you need. Rates change quickly. That great rate you find today might not be there tomorrow. Once you find the rate you are looking for, submit a loan application and lock in that rate. Don’t forget to ask the lender for a statement detailing all fees associated with the loan. Factors such as “points” (loan fee), interest rate and “garbage fees” (extra fees which some lenders charge) these can vary greatly from one lender to another, and are generally negotiable. Example: Do you really need to pay $75 document delivery fee when all documents are sent to you electronically?

If you do not have the time or experience to “do it yourself,” look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates who have refinanced or purchased recently if they have a broker they can recommend. You’ll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind. Always understand that this is a difficult choice. Pick one that your friend has actually used, one that several friends have used (successfully) and one that will give you real timelines and will collect all necessary documents upfront to speed up the process. Many can be quite flighty and only looking for a quick buck. Remember: The nicer his/her office the more you are going to have to pay him/her.