Art's Real Estate Blog

When buying vacant lots/land it is important that you do your homework. Water, septic, zoning, usability, is it land locked are typical questions asked by buyers. But, if you are buying vacant land in Alpine or San Diego County you need to be knowledgeable on how GP 2020 and the Forrest Conservation Initiative (FCI) affect the use of your prospective property. It is very rare that I find buyers aware of these two programs that effect or might affect their purchase. If you are interested to know more about these programs email me at Art@JBres.com with “GP 2020 and FCI” in the subject line and I will reply with information concerning them. Educate yourself before you buy, it is possible to purchase land that can have little to no use.

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County Real Estate

The real estate market has experienced noticeable changes within the past year. As you might expect, these changes have altered some of the standard methods for conducting a real estate sale. More specifically, some of our members encounter the sale of a property that is contingent upon court approval or labeled a short sale. San Diego County Realtors are defining these and other terms as:

Court Approval: The sale of a property may require court approval if it is an estate, probate or bankruptcy sale. In simple terms, “court approval” means there is a court overseeing the sale and the court determines which offer to purchase is accepted and is ultimately successful. Note the court sets a minimum bid for any purchases submitted.

Lender Approval: The sale of a property may require lender approval if the seller owes more on their home than the loan mortgage balance. This is called a “short sale”. The lender is protecting their interest in the property.

Short Sale: The sale of a property for which the sales price is less than the loan balance. Many lenders will agree to accept the proceeds of a short sale and forgive the remaining mortgage balance if the owner can no longer make the payments. By accepting a short sale, the lender may avoid a lengthy and costly foreclosure.

Foreclosure Sale: The forced sale of a property at public auction to satisfy the debt incurred from substantially delinquent payments.

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County Real Estate

An escrow holder is an IMPARTIAL AGENT for both the seller and the buyer. The escrow holder works closely with the Realtors, the new lender, the existing lender, the homeowners associations, the fire insurance agent, and any other parties involved in the escrow in order to bring about a “happy ending” to the “story” written by you when you prepared the offer to purchase.

When selecting an escrow company in today’s market careful analysis is required. Important questions must be answered. How sound is the company? What is the technical competence of the people behind the company? Can I trust the company to be honest and in control of each escrow?

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County Real Estate

The one question that I am asked by all my clients is about the variable or value range market (VRM) for homes. This property pricing strategy was started in Australia and has been successfully used in the San Diego real estate market since 1996.

The VRM opens the sellers home to buyers that might have not viewed their home otherwise. It also tells the buyer what range the seller is willing to entertain depending on escrow time, contingencies, and other demands.

The question normally goes something like this, "The Variable Range Market? I don’t understand why would I make an offer above the lower price?" If you (the Buyer) need to sell a home, before closing on the home you are making an offer on, and/or you want certain work done, the seller is going to want the higher price. If on the other hand, you can close in 30 days or less and you have a cash offer, the seller may be willing to take less on the sale of their home.

I also remind my clients that when fixed pricing was the norm, the agent would usually make a note that all reasonable offers would be accepted. The first offer from most buyers was the asking price minus approximately 10%. Now the seller is letting you know up front their negotiating range.

Unfortunately not all sellers and agents fully understand the logic of using the VRM and use the lower pricing only as a tool to attract buyers that would not normally view their homes. They are unwilling to sell their homes at the lower range no matter what the terms. I have even seen counter offers requesting the higher price and asking the buyer to pay all fees.

The VRMs were useful during the hot seller’s market and are currently useful in San Diego's softening market. It is a valuable strategy in all markets, once buyers and sellers understand the concept.

Is there still room for Fixed Pricing when selling your home? The answer is Yes. Both Fixed and VRM should be discussed when pricing your home for sell.

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County