“We’re planning to sell our home. We’ve done a beautiful remodel inside our home, but our front porch is shabby. From reading your newsletter we know how important a good first impression is. Can you give us ideas to improve it that won’t cost too much?”

Answer:
Of course, I haven’t seen your home, but here are potentially profitable ideas that may help you:

1. Paint, varnish, or replace the front door if needed.
2. Replace or remove any bent or torn screen doors.
3. Paint or remove any rusted security doors.
4. Be sure your doorbell works. If the first “moving part” that potential buyers see is broken, what impression does that give them about the rest of the home?
5. Buy a new polished brass or other attractive mailbox, porch light, doorbell, and address numbers. Home Depot sells them for under $250 total.
6. Get a “Welcome Friends” doormat.
7. Put pots of colorful flowers on and in front of your porch, as well as on the walkway leading to your porch.

Total cost is a bargain compared to the extra hundreds or thousands of dollars you’ll get for your San Diego home, as well as a quicker sale.

“Hi Gary. I’m thinking of buying a home and I’m trying to decide where. Don’t you think that all neighborhoods in San Diego tend to appreciate at the same rate over the long run?”

Answer:
I agree that most San Diego neighborhoods should appreciate at about the same rate… unless there’s what I’ll call a “unique event.”

Events such as Petco Park upgrading that corner of downtown or the 52 extension improving access to Santee increased values in those areas. Smaller events such as new schools, new shopping centers, etc., also have some impact.

Possible future events could be a new or relocated airport, a new Chargers stadium, military base closings or expansions, etc.

It can pay to read the news and keep track of local proposals, controversies, and other goings on.

“Do you know anything about credit scores? My credit score is 872 but I heard the highest possible score is 850…”

Answer:
Congrats for having such a high score. But you’re right in that the maximum score for home loans is 850.

There are 3 types of FICO scores with their own ranges of possible scores:

350-850: “FICO 8”, used by the mortgage industry
250-900: “Auto”, used by the auto industry
250-900: “Bank card”, used by the bank card industry

So your 872 score was in the context of buying a car or getting a bank card.

Note: “FICO 8” is an update to reflect today’s credit world in light of all the mortgage defaults over the past few years. The 350-850 scoring is the same.

“Hey Gary. We want to sell our parents’ old La Jolla home in the Muirlands area. The thing is it’s leased through the end of July. If we sell, what happens with the lease? Do you think a buyer will just take it over?”

Answer:
Leases “run with the property,” not the owner. That means if you sell, the lease is binding on the new owner.

Since you’re not selling an investment property, you’ll severely limit your pool of potential buyers if you try to sell a leased home. And that will get you a slower sale at a lower price. Not what you want.

My advice…

Ask the tenant if they’ll mutually agree to end the lease early. If they don’t jump at the chance, offer them that universal incentive:

MONEY.

How much? There’s no formula, but perhaps 1/2 to 1 month’s rent. It all depends on how soon you want or need to sell.

If the tenant agrees to end the lease early, should they stay while the home is for sale? It depends. Here are 2 scenarios:

1. The tenant is tidy and cooperative with showings, including a lockbox…

…Since we don’t know how long it will take to sell the home, make the agreement flexible. Have the tenant stay until you give them a 30-day notice.

2. The tenant is a rude, filthy, uncooperative slob…

…Give them their notice now, provided you can afford to make the payment without getting rent.

Now pay close attention to this next step:

Put your agreement IN WRITING and have the tenant SIGN IT. This lessens the likelihood of you facing an ugly situation where you sign an offer with a buyer, committing to deliver the house vacant, but then the tenant suffers a bout of amnesia and refuses to move. That could land you some new friends…attorneys.

Next, when you get an offer, negotiate an escrow period that allows enough time for the buyer to do their inspections and for you to then give the tenant the 30-day notice.

If the inspections are OK, give the notice, have the tenant move, pay him or her what you promised, close the escrow, and live happily ever after.

“Hi Gary. It’s been about 10 years since my wife and I bought our home. We recently met with an agent to talk about finding a bigger home. When we were done, he asked us to sign a Buyer-Broker Agreement. I’ve never heard of this. What do you advise?”

Answer:
A “Buyer-Broker Agreement” outlines how you and your agent will work together as you look for a home. It commits you to work exclusively with that agent, usually for 3 to 6 months.

Agents prefer these agreements because all too often they devote blood, sweat, and tears serving a client, only to have them buy a home through another agent at the last minute. Buyer-Broker Agreements are growing more common and many better agents won’t work with you without one.

The benefits to you are:
- The agent should work harder for you, knowing you’re a loyal client and his time and effort won’t be wasted.
- Agents call committed clients when the best homes and values come up.

The drawback is:
- You may commit to an agent who doesn’t work out.

Should YOU sign a Buyer-Broker Agreement?

It in effect turns you from a “customer” (someone who is sold to) into a “client” (someone a professional represents). If you feel you’ve found a skilled, hard-working agent who’ll devote time to you, I think you’ll benefit.

Our policy:

We give our clients the option of signing what we call our “Buyer Representation Agreement.” For clients who do and also use our preferred lender, they get three added benefits:

- a FREE home inspection (apx $300 value)
- a FREE appraisal (apx $350 value)
- access to many homes NOT on the market.

If you’re interested, call me at 858-457-KENT and we’ll discuss helping you find a San Diego home or rental property.