Live in Lakeforest

Highly Upgraded Dual Masters – Own for same as Rent with only 5% down.

OUTBACK STEAKHOUSE LIGHT LUNCH 12:00pm SHARP on Saturday, January 21st.  What would be better than owning a home where you drive past beautiful lakes, forests & mountain views before pulling into your garage each day? It would be locking in all of this AND an ‘Off Peachwood’ address for about $200k!  This stunning & highly upgraded 2-bedroom, 2-bathroom, end unit has dual master suites, & a direct-access garage. Upgrades include Gourmet, granite/stainless kitchen, 2-tone decorator paint, scraped ceilings, gleaming wood laminate floors, new appliances/ window coverings/ lighting & bathroom fixtures. This model occupies half of the upstairs of this building and feels like your own Park Avenue loft! All living space is on second level. No living space below except garage. Complex just rehabbed months ago and looks like a million bucks! You’ll love the lifestyle here. Morning swims at the pool just across the street or relaxing away the day’s cares in the sparkling spa. Just a short stroll to parks, creeks, trails and shopping and minutes to Irvine Spectrum. If you can not live in an upper unit, and need a back yard in the $200K’s, call me.  I have 2 pocket listings that are standard sales.

With about $15K to $16K total cost to close (5% down plus closing costs), you can own this home for a ‘feels-like’ payment in the $1400-1500′s per month if you are currently renting now.  You have to see it to believe it. 

Open House Saturday, January 21st from 12-4pm – 25185 Oak Canyon, Lake Forest, CA 92630.  Lunch at noon “while supplies last”!

To see 24 more photos, click here: http://www.realtor.com/realestateandhomes-detail/25185-Oak-Canyon-Ln_Lake-Forest_CA_92630_M17122-19637

Like what you see?  Call lender/partner, Tom Testerman at 949 422-4497 for your loan approval.  He will be at the open house, but the line might be kind of long.

SCAMS: Fake Short Pay Letters Plague The Real Estate Industry

The December 2009 issue of Fraud Insights warned Realtors about the latest type of advanced fee scam targeting settlement agents (title companies). Since then they published three articles describing the characteristics of these scams: a buyer purchases a property sight-unseen off the Internet, and remits a check representing the earnest money deposit and down payment. The checks are usually drawn off an international bank, although a few have come in from a U.S. bank or credit union. Shortly after we receive the check the buyer requests the amount over and above the required earnest money deposit be sent back to them because, “an urgent business transaction just came up.” These checks are always counterfeit.

Recently one of our offices forwarded the funniest response yet. The buyer sent a check in the amount of $885,000. The bank immediately identified the check as counterfeit and the settlement agent notified the real estate agents. In the meantime, the buyer sent a request to the settlement agent to send him back $400,000 because, “an urgent business transaction just came up,” but promised to send replacement funds in time for closing. The settlement agent forwarded the request to the buyer’s real estate agent who responded with this e-mail:

Since the first article we published on this topic, the Company’s National Escrow Administrators have been notified by settlement agents nationwide on nearly a weekly basis of transactions just like this. Times are tough, sellers and real estate agents want to believe they have an all-cash buyer. When they discover the transaction is bogus they admit all the signs were there from the beginning.

Dear Ivo,

I am so sorry to inform you the bank teller who took the deposit of your cashier’s check, literally took the check, cashed it and then fled the country with the entire $885,000.

But I have good news on how I can make it up to you. I was just informed by e-mail a king from the Congo needs to get several million dollars out of his country and has chosen me to help him. He will be sending me a cashier’s check for $10 million dollars and he will let me keep half as long as I send him back $5 million dollars. As soon as the funds are in my account, I will send you back $400,000 and deposit the $485,000 lost into your escrow account.

If that doesn’t work out, I have also won the Nigerian lottery worth $2.5 million and will be able to reimburse you from those winnings.

Obtaining a Home Loan When Income is Freelance

After the financial market downturn in 2008, getting approved for a mortgage loan became even more difficult. Combine that with the fledgling economy, which left many people turning to freelance work, and the challenges involved in qualifying for a home mortgage increase exponentially. However, with a little extra work, home buyers using freelance work as proof of income still can qualify for a new loan.

• Borrowers who earn most of their income on 1099s should be prepared for extra preparation, paperwork, and discussion of their financial standing when applying for a mortgage.
• It’s important that independent contractors show that their income is stable and increasing. For some, that may mean declaring all their income on their tax returns, and not, say, carrying anything over to the next year, even if it means paying more taxes.
• Consistency in income is key, so those applying for a mortgage this fall or winter should be prepared to provide proof for year-to-date income.
• To increase the chances of getting a mortgage approval, borrowers should pay off other debts, including balances on credit cards.
• Pinpointing the source of the down payment also is helpful. If the down payment will be a gift from a relative, borrowers are advised to submit an account statement showing the funds are available and awaiting the home purchase. Same goes for borrowing from a 401(k).
• Freelancers also should be prepared for a more in-depth analysis of their ability to repay the debt. Submitting tax returns from the last three years and explaining any significant differences in income is advised.

Planning on buying a home next year?  Ask your accountant about creating a C-corp for your business.  Your freelance income can go into it and you can pay yourself a salary each month.  You wil pay a bit more in taxes, but that is far better than NOT  being able to purchase a home at the bottom of the market with great interest rates and being stuck with the government taking a huge chunk of your paycheck each month.

Read the full story:

http://www.nytimes.com/2011/08/28/realestate/loans-for-freelancersmortgages.html?ref=realestate

HOW TO GET YOUR HOME SOLD (for more money)

 There is a lot of good advice in the following article written by Chobee Hoy.  Alternatively, if I’ve ever represented you on the sale of your home, you will note that a few of the paragraphs do not ring true.  I highlighted them in green.  Read on: 

While certain tips like properly staging your space will help get your home sold no matter what the economic climate, picking a talented real estate agent is one of the most crucial assets in getting your home sold fast and for the right price.

During the summer this is especially important to consider because buyers and sellers are less available due to vacations and kids being home on summer break. If you don’t have a dedicated agent you might not receive the customer service needed to get your sale closed.

Many agents are thriving in today’s market, so an easy way to find someone well qualified is to do some research – who is winning awards in your area and what are they doing to differentiate themselves from the competition? If you know someone that has recent bought or sold a home ask them for advice, or even a referral.

Before hiring your agent ask: What was your most challenging sale, what made it so difficult, and how did you ultimately get the home sold? This will tell you if the agent has experience and if they have the tools necessary to get your home sold.

Also, get realistic comps and price your home accordingly. If your home and a similar home across the street are on the market do something to differentiate yours from theirs whether it be lowering the price or putting some extra time, and perhaps a little money, into staging it properly.

Don’t take offense if you get an offer that is low, make a counter-offer. Let go of the emotion you’ve invested in your home. Be detached, using a business-like manner in your negotiations. You’ll definitely have an advantage over those who get caught up emotionally in the situation.

Winning awards – A decade ago, when I was a newer agent, I thought that winning a top First Team award for selling an extraordinary amount of homes would demonstrate that I was experienced and successful and the agent that sellers would want to hire.   That was true – in a way.  Sellers did and still do feel that the agent with the most signs around town MUST be the best.  Growing older and a bit wiser has caused me to think differently.  I found that the fewer clients that I dedicate my practice to each year – the more money their homes sell for.  If I cut my practice in half, I would have more time to answer my seller’s questions,  manage any repairs that needed to raise the value of their home, stage the home and ultimately market it to bring hundreds of visitors to its one and only open house.  (If you click on the youtube “Jenean Hill 3″ video you will see what I mean).  

You will NOT see my For Sale or Open Houses signs all over town week after week.  When my fully-marketed homes hit the market there is generally a line out the door waiting to get inside, and an accepted offer by the following Tuesday or Wednesday.  You will never see another Open House sign for that home except when the new buyers of that home hire me 5-10 years later to  market their home in the same fashion I did when they purchased it.  Does my company (or any other company, for that matter) offer awards to the agent that sells a reasonable amount of homes, for up to 10% OVER comps?  Of course NOT.  Awards go to the agent who sells more homes – not sells homes for MORE.   So when comparing agents, you will want to reconsider going with the agent with the most name recognition, and instead ask any agent you interview to bring their MLS Statistics report for the last 3 years.  Are their homes on the market for 8 only days or do they price them to sit on the market so their signs can have a permanent place all over town and give them even more name recognition?  Do they sell for more than asking price or do they eventually talk the seller (whose listing they took at an extra high price to appease them) into accepting a lower offer?

Now you can see that the sign of an incredible agent is one that does NOT have signs on every corner, but one that limits their practice to helping one or two clients at a time in order for them to win the the true award – more money in their pocket with less inconvenience.

One more thing, when I market your home in my tried and true fashion, you won’t need to worry about countering a low ball offer.  It will be blown out of the park by all of the offers of the buyers’ agents who asked me how much OVER asking price they would need to write their offer to win the keys to your home!

Not only is he local, he is the BEST!

My past clients often rely on me to provide great service providers for around their home year after year.  Once again, I have someone to highly recommend.  The name is Greg Olsen (pictured to the left).  No, he is not a painter or a contractor.  He is a Doctor of Chiropractic and Wellness expert.  I have been treating with him since last fall/winter.  He was recommended to me by a chiropractor who was unable to give me any relief for my symptoms stemming from an assault last year.  His practice is near Lake Forest and Lambert behind the Round Table Pizza.  Boy, I wish I knew about him years ago.  He is an extremely skilled doctor who treats you like family.  His visits are not like visiting a typical chiropractor where you go in and get ‘cracked’.  He treats the whole body and spends as much time with you as it takes so you walk away renewed  and with a smile on your face.  He is honest and has a gentle fashion that you will appreciate. 

Because over 90% of my business is by referal, I get extra excited about giving back referrals to deserving service providers I encounter.   If you call him and give him my name, he will give you a coupon to use toward your first visit.  I would love to hear from you after you meet him so we can sing his praises together.

You can learn more about him by clicking here.

To Cosign or not to Cosign

Cosigning on the dotted line
Low interest rates combined with bottom of the market housing prices in many areas has put pressure on young people to buy low cost real estate before they are able to save up an adequate down payment or qualify for a loan on their own.  Not wanting to miss out on this ”perfect storm” some home buyers are turning to family members or close friends with good credit to co-sign a home loan.

• While becoming a cosigner may seem like a good solution, money manager and lenders caution against those who are asked to be the cosigner.
• A cosigner, even if not living in the house, is really a coborrower, meaning he or she still is responsible for payments if the occupant is unable to meet his or her obligations.  In other words, if the principal party defaults on the loan, the cosigner is on the hook.
• One financial planner suggests potential cosigners take a less risky alternative, such as providing a cash gift for the down payment.  Under current tax laws, a person can give as much as $13,000 to a person, free of gift taxes, or $26,000 per person, if a married couple filing jointly is giving the money.
• Those considering cosigning a mortgage must conduct due diligence.  First, the cosigner must understand why the family member or friend is asking for help.  Potential cosigners shouldn’t be afraid to look into the requestor’s personal finances to help determine whether he or she will be able to repay the loan.  Perusing credit reports also will show the track record he or she has for paying off debts.
• A discussion about worst-case scenarios also should take place before signing on the dotted line.  Working out a written contract containing an agreement about what would happen in the event of a default, also is recommended.
• Cosigners also should keep in mind that the mortgage will show up on their credit report, and could affect their own ability to borrow money or buy a second home.  If the principal borrower makes a late payment, that also will show up on the cosigner’s report.

Read the full story

Hippocratic Oath for REALTORS®?

Real estate agents who become REALTORS® must abide by the REALTOR® Code of Ethics – kind of like a physician’s Hippocratic Oath.  Although I observe the majority of REALTORS® practicing ethically and trying their hardest to provide the best value to their clients, it is obvious that one REALTOR’S® ‘best’ cannot necessarily be compared to every other REALTOR’S® ‘best’.  The same goes in the medical field.  Ill-feeling patients suffering with flu-like symptoms often visit their MD in hope for a quick fix for their ‘bug’.  Upon the doctor recommending that they get bed rest and drink lots of fluids for their virus, the patient often insists that the doctor give them a prescription for an antibiotic.  Often times, the doctor whips out his pad and writes it up knowing that it will not cure the patient, but instead will make them feel like they received value out of the doctor’s visit.  This is called ‘patient appeasement’.  Unfortunately, appeasing the patient today can be harmful to the patient’s health in the future.

The same happens in Real Estate.  Listing agents often practice ‘seller appeasement’.  They know that sellers will list with the agent who tells them two things: 1) That their home is worth more than the other agents said it is worth; and 2) That their commission is less than the other agents.  After all, once the contract is signed, the agent can always go back and get a price reduction in order to sell the home.  It is a win/win situation…right?  The seller gets what they want and the agent ensures that the time they took to meet with them is rewarded with a listing contract each and every time.

Let’s go back to the medical scenario now.  If the doctor was highly skilled and highly ethical, and his patients asked for medication that could ultimately hurt their body instead of help it, he would never compromise and consider giving into his patient just to be popular or go with the status quo.  As a result, some of his patients would look for another doctor who would give them exactly what they asked for.  This doctor might have a smaller practice, but it would be filled with happy and healthy patients who spread world all over town about how good their doctor is.

Doing the right thing is often hard and it doesn’t necessarily pay all the bills…but the good feeling that comes from doing the right thing us immeasurable.  Here is how this relates to the way I do business:  Over the years I have practiced many buyer and seller systems, gone to seminars, received special designations, served as a six-year Director of the Orange County Association of REALTORS® and honed my skills to accomplish the following two goals:  1) To help buyers get their offers accepted AND pay the smallest price possible for homes; 2) To help sellers sell their homes in the shortest amount of time, with the least inconvenience and for an unbelievable price – at the end of the day, putting considerably more money in their pocket than if they went with a real estate agent who compromises both their commission and their seller’s home price.  As the result of my experience, I have developed a Seller System that is unparalleled in the industry. It is completely different from the way other agents sell homes, yielding my sellers significantly more money than if they chose a traditional agent. The results are proven and the years of data and seller testimonials back it up seamlessly. 

It takes a lot of courage to present this non-traditional method to my sellers, when they are simply looking for an ‘antibiotic’.  My interpretation of the REALTOR® Code of Ethics dictates that I MUST promote this system.  It would be wrong for me to appease sellers by telling them what they want to hear in order for me to secure the listing, when I am confident that if I risk getting the listing by telling them my uncommon Seller System, they are guaranteed a higher profit.  That is my ‘Hippocratic Oath’.  Unfortunately at times, I may fail to communicate my System’s value, or my sellers cannot quite see the vision.  That is understandable.  The seller is the ultimate decision maker.  My responsibility is simply to demonstrate how my ‘best’ brings sellers more money than a traditional agent’s ‘best’ and then go with the method they select is ‘best’ for them. 

1,557 sq. ft. home for $325,000? Last Minute Grand Opening Open House in Lake Forest. This place is to die for…and a steal!

GRAND OPENING SATURDAY FROM 12-4.  LUNCH AT NOON.

Just a few days ago I got a verbal bank approval on this fantastic short sale townhome in Lake Forest. At $325,000, it is 10′s of 1,000′s below market.  This morning when I woke up and looked at the beautiful interior photos, I decided to try to pull off a GRAND OPENING OPEN HOUSE on Saturday, May 28th with one day notice.   I designed and dropped over 300 flyers around the community by 3pm (with the help of Gary and friend, Catherine) and just completed the 4-color property brochure and pricing scenario chart.  My lender, Jeff will be there with me at noon to welcome neighbors, friend and buyers with a light lunch.  I hope you can make it as this will be the one and only day to get in the home.  There will certainly be offers at the end of the h0liday weekend.  Here is the scoop on the home:

You will love the setting of this large 3-bedroom, 2-1/2 bath, 1,557 SF, 2-car direct access garage townhome.  Feels like SFR! Gourmet kitchen has stainless appliances and nook.  Formal dining area off living room. Kitchen and Living room open to expansive backyard with patio, sparkling fountain and terraced landscaping. One of the biggest yards in the community! Just steps to Montbury and Pittsford Parks and the desirable Lake Forest Elementary School.   Upgrades include neutral patterned Berber carpeting, Cherrywood floors, Decorator paint & more. Romantic living room fireplace. 2 large masters with walk-in closets. Third bedroom/loft currently used as child’s bedroom makes perfect home office.

Your family & pets will love the park-like setting of this community adjacent to the beautiful residences of Montbury.   Community offers pools, spas and tennis.  Short stroll to shopping, Starbucks and local eateries. It just doesn’t get any better!

22014 Summit Hill Drive, Lake Forest – Up from Trabuco and El Toro off of Aliso Hills.

South Orange County Home Sales Recovery Chart by City

If you have been wondering how your community’s median prices may or may not have increased in South Orange County City in the 12 months, take a look at this chart from the L.A. Times!   You will note that Lake Forest’s Condos are turning around faster than other communities with almost a 32% increase.  If you have been following my blog or receiving my newsletters, you saw the TrendGraphic’s chart of the top real estate agents in Lake Forest.  I tied in the #1 position for total transactions – Homeowner Seller and buyers combined.  Whether I am selling your home in Lake Forest, or any other Orange County community, my goal is to treat your listing as if it were my own home and give you the pleasure of knowing that your home sold at a price that you didn’t dream was possible – and the neighbor bragging rights that go with it!  I took 3 listings in the last month and received offers in 2 days on all of them.  While they are in escrow, I have room in my practice for one more home seller (and one more home buyer).  Take a moment to watch my video on the right hand side banner of my blog and let me know if you would like me to do this to your savings account!

News Flash – There Is No Inventory

If you are a follower of the blog I’m sure that you have a better sense of where the market actually is and that historically this may be the best possible time to buy – in our lifetime anyway.  We’ve also discussed that a real estate transaction is a personal one and that over the long haul real estate is still  considered a great investment.  Let’s look at the other side of the transaction today – how do you position your home to SELL fast but at the highest price?  What happens when you over price your home?  Dean Hartman and the KCM crew posted the perfect piece on this today…

I was in a conversation with one of the most productive agents in our area recently and he told me that there were “no homes for him to sell”. I thought he had a brain cramp. Look at all the ‘For Sale’ signs, all the homes on MLS, all the short sales and foreclosures plus all the shadow inventory on its way.  Had this respected agent lost his mind?

As he saw the puzzled expression on my face (which was his intent), he began to explain that every home that is priced correctly is being gobbled up by buyers right away. The only homes that remain on the market for more than 30 days are the ones where the price doesn’t COMPEL a buyer (even multiple buyers) to make an offer.

I pondered his assertion for a while and his premise began to make more and more sense because I am witnessing:

http://ftemerson.wordpress.com/2011/04/14/newsflash-there-is-no-inventory/