San Diego Real Estate Blog Gary Kent Team

“Hi Gary. I know you always say to talk with a banker before looking for homes, but my parents will co-sign for me and loan me money for a down payment. Do I still need to?”

***ANSWER:
Yes!

I had a client in your exact situation and it turned out that having their parents co-sign actually HURT their chances of getting a loan. (I ended up having to loan them $16,000 so they could make the purchase.) So don’t assume that they’ll help you.

Some things to know about having a co-signor:

The co-signor’s debts are also taken into consideration (that’s what happened above)
Most programs still have a limit on the occupying borrowers’ debt ratio, no matter how much the co-signor makes
Some programs require that when using gift funds, a percentage of the down payment must be your own money
When someone helps you with the down payment, they’ll be required to sign a statement that it’s a GIFT and not a loan
To be sure you’re in the right price range and are comfortable with your payments, the best advice I can give you is to talk with my preferred lender asap before you start looking at homes.

You can call me at (858)457-KENT and I’ll be happy to put you in touch with him.

Automated Notification of Distressed Real Estate in San Diego

“When I sell my home, I want to sell As Is and not have the buyer ask for a bunch of repairs. Can you write a 100% binding contract up front for the buyer to take a home As Is? ”

***ANSWER:
Probably. But you wouldn’t want to.

Here’s why…

You’d have to write such an onerous and unusual contract addendum that no one would sign it unless they were getting a steal on your home. So what would you gain?

The reality is that standard real estate contracts give the buyer the right to inspect the home and ask for repairs…and give the seller the right to say no.

If I represent you selling a home, I’ll tell you up front to expect to fix a few things or credit a few bucks for repairs. But at the same time, we negotiate hard to keep that list as small as possible.

In all my advice to you, I’d rather tell you the truth now, than sugarcoat things and disappoint you later.

Easy, Low-Cost, Profitable San Diego Real Estate Fix-Ups

“How many homes does someone usually see before they buy one?”

***ANSWER:
In my experience, once someone starts seriously looking, they actually walk through about ten homes (not counting open houses) before they buy one.

If you’ve seen more than ten homes, re-examine your criteria to make sure you’re being realistic.

Many people get in a holding pattern, looking at home after home, trying in vain to find a perfect home that doesn’t exist, or at least doesn’t exist in their price range.

So if you can’t find what you want, look again at…

Price range
Location
Property type (house vs. condo)
# Bedrooms & Baths
Size
Condition
Amenities

…and adjust if necessary.

Daily San Diego Real Estate Market Watch

“I’m a new investor and want to know if I should fully furnish apartments. Or should I just supply a stove and refrigerator?”

***ANSWER:
Go for just the stove and frig. I don’t like furnished apartments because the tenants are more transient and there’s more cost and hassle dealing with broken and worn furniture.

Discover Your San Diego Home Value Online FREE…

“My wife and I have 2 kids in elementary school and we’re thinking of selling and moving to Poway for the schools. I keep up on the market and I’m pretty sure my home is worth about 700K. But an agent told me someone is building 2 new homes similar to mine a block away and they’re asking in the 900s. She said they make mine worth about 800K. What do you think? ”

***ANSWER:
I think that agent should lose her license!! Here’s why:

What someone asks for a home has zero bearing on your home’s value.

ZERO.

They could be asking the right price, or be tens of thousands off. I know of one home that was on the market awhile ago, listed at $4M. The only problem is that it was worth around 700K!

Price is one of the two keys to selling a home. And any agent who advises you to price your home based on an UNSOLD home is guilty of malpractice.

Does Your San Diego Real Estate Agent Care?