Selling YOUR Long Beach Homes-Did you read your Contract?

Selling YOUR Long Beach Homes

Did YOU Read YOUR Contract?

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If you want to sell your Long Beach Homes, you have to make them easily available to be shown. If Realtors® encounter a difficult time showing your homes, they will pass on them. The Long Beach Real Estate Market is flooded with inventory right now; they will just move on to show the next available homes for sale.

Recently a new buyer called to see a few foreclosure and short sale homes, along with several other homes in the Wrigley neighborhood of Long Beach. One of the homes was not in the SoCalMLS, which was very odd.

A Google search of the address led to one of the generic online sites. The home had been on the market for 150 days, about 5 months with no local MLS presence. A link on the site led to an – out of area agent’ who informed me that he had put the home on the MLS in his own area and didn’t seem to care very much. No Long Beach Realtor® is going to find this Long Beach listing on the local SoCalMLS!

He also promised to email the MLS from his area, he didn’t. The MLS listing was acquired through other resources; it did not include the contact information for the sellers, yet indicated call first-go direct, which meant yet another call to the listing agent to get the sellers phone number. It’s really not supposed to be this cumbersome.

The buyer had called the listing agent from the sign several days before and was told he must come to the listing agent’s office and start his loan application with them before seeing the property. The agent went on to inform the buyer that he would be expected to use their services if he decided to purchase the home. This is not an exclusive listing agreement; the buyer can use any agent he wants and get his loan anywhere he likes. The buyer unimpressed by the demands, passed on the agent/lender services choosing other representation, and rightfully so. These are not normal business practices.

The real kick in the pants here is that the agent did not violate the listing contract. ‘Hiding’ a listing in another MLS system with the hope of finding a buyer through either the for sale sign or an ad themselves – in order to earn the commission on both sides, is sleazy. With so few qualified buyers on the market this method of doing business is unconscionable. Sellers are owed every possible opportunity to sell their property. There is no guarantee that the listing agent will be able to find a buyer; taking away any opportunity to sell a home is unthinkable.

The real problem here is the ambiguous language in the listing contract. The standard California Association of Realtors® (CAR) listing agreement states in paragraph 4.F.6. “Listing will be provided to the MLS of Broker’s selection unless a form instructing Broker to withhold the listing from the MLS is attached to this listing Agreement”.

Did the agent act in the best interest of his client – the seller? Absolutely not! He also didn’t break any actual rules or contractual obligations. Sellers listing with out of area agents should know that these agents, usually do not possess membership to the local board of Realtors® and MLS. They can, however, submit your listing to multiple boards (other MLS’s) for a very minimal fee, usually around $25, not exactly going to break the bank. This is what most reputable agents do. That this agent did not place this listing on the local MLS for this short sale listing is unthinkable. The potential damage to this seller is immeasurable.

As a Realtor® I could argue that this is a great case for a statewide MLS, which not only makes sense but would avoid problems such as this. We Realtors are licensed statewide; we should have full access to all property information, statewide. We should not be limited by the geographic scope of the particular Board we must belong to.

If your Long Beach Home is not listed in the SoCalMLS it is unlikely that Long Beach Realtors will even know that it is for sale. If they don’t know it is for sale, how areyou going to get showings? If you don’t get showings, how are you going to get sold?

With so few qualified buyers looking most homes are receiving little or no showings at all. Each and every showing is critical to the sale of your home. Be smart sellers; make your Long Beach Homes easily available to be shown. Real Estate is local, hire a Long Beach Realtor®, they have the tools you need to sell your homes, know the Long Beach Communities and how to market your Long Beach Homes.

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Posted on December 17, 2007 by Laurie Manny

Who is Negotiating YOUR Long Beach Home Purchase or Sale

Do you know who is negotiating the purchase or sale of your Long Beach Homes?  The real power in your Long Beach Realtors ability to negotiate a contract on your behalf lies in their command of the contracts they are wielding.  The standard form contracts that we use were written by attorneys for the California Association of Realtors (CAR).  Each and every paragraph of these contracts was developed to protect the consumer; the buyer and the seller in all Long Beach Real Estate transactions. 

Knowing how to bend the contract toward a buyer or a sellers best interest is an art, in my opinion.  Contracts have little boxes and small seemingly insignificant paragraphs in them which are often glossed over as meaningless.  There is nothing meaningless in any of the CAR contracts. 

Without going into great detail (not going to give away my secrets here, sorry) as a listing agent, representing a seller, there are a few specific items I look for on a contract when I first receive it.  These items, if addressed, tell me if the buyers agent is looking out for their clients best interests.  If they have marked these areas off they have already earned my respect because I firmly believe that all Long Beach Realtors should have their clients best interest in mind at all times.  If these items are not indicated I already know I am dealing with a rookie, or just a lazy real estate agent looking for a check who didnt take the time to learn their trade. I will take advantage of the shortcomings of that buyers agent in my clients best interests.  That Long Beach Buyer should be so lucky! 

When representing a buyer I complete all of the areas of the contract that relate to protecting my buyer and await a counter offer from the seller and listing agent.  Once the counter offer is received these areas are checked first.  If the listing agent has countered back on those items, with the intent of protecting their seller, they have earned my respect.  If these areas are not countered back once again I know, I am dealing with a rookie or a real estate agent without a command of the contracts.  I will take advantage of the shortcomings of that listing agent in my clients best interests.  That Long Beach Seller should be so lucky! 

OK, I will give you a little sumptin sumptin here.  Lets say you are a buyer, writing an offer on a Downtown Long Beach Condo priced at $350,000; you offer $335,000 and ask for some closing costs, the appliances, the plazma TV and a home warranty.  Your lender has qualified you up to $400,000 and you have a pre-approval letter to prove it.  That is a good thing because you will have to present that letter along with your offer to purchase, and you do just that.  So here it is, you just told the listing agent and the seller that although you are offering $335k, you are qualified up to $400k.  Why on earth would you do that?  Why on earth would your real estate agent let you do that? 

Caveat emptor

Let the Buyer Beware

It would have been very easy to call the buyers lender and have a new pre-approval letter faxed over for $330,000 to present with the offer.  This would have told the seller that the buyer was making the best offer they could and that the closing costs were necessary to consummate the transaction.  It also would have made a counter offer on price less likely.  Why did your agent go ahead and send the letter stating that you were qualified up to $400,000?  Do you think it was in your best interest to have done that? 

As a listing agent, I receive pre-qualification and pre-approval letters showing buyers qualified well above listing price most of the time.  As a buyers agent, a new pre-approval letter and a whole lot more is sent with the letter proving that my buyer has the loan and can close it. 

Never let the opposing side in a negotiation know what you are capable of,

it will change the response you get and will cost you money. 

As an experienced Long Beach Real Estate professional I have both written and received many offers to purchase homes in Long Beach.  Not only do I know my contracts, I know them well enough to negotiate the very best deal for you whether you are a Buyer or a Seller and I want to earn your business.  Are you thinking about buying or selling a Long Beach Home or Condo?  Would you like to be properly represented by an experienced professional?  If so, contact me regarding your next Long Beach sale or purchase.

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Posted on December 3, 2007 by Laurie Manny

Small Living Space Solutions for Long Beach Homes

Small Living Space Solutions for Long Beach Homes

Buyers relocating to Long Beach California from various parts of the country are often dismayed at the idea of leaving their 4000 + square foot homes on acres of property for smaller homes on smaller lots here in Long Beach.  Having built up a lifetime of collections and belongings they look at our smaller spaces and often just cant wrap themselves around how to fit into these spaces.  While additional storage space is not always the answer it often helps. 

Beach living often means less living space.  We have smaller lots but better air, less square footage but a better quality of life. 

• So what the heck do we do with all of our stuff? 
• We look for wasted space in our Long Beach Homes and find ways to use it effectively. 

Closets have a lot of wasted space. Organizing closets and utilizing every square inch of space has become a necessity.  Organizational systems line the walls of our garages, our attics fill up and still we search for that elusive additional storage space. 

Staircases take up a lot of space, so why not use them for storage as well.  Unicraft Joinery designers have come up with an absolutely brilliant idea for unique storage in otherwise wasted space.  Imagine each step is a box with a hidden drawer in it still allowing for additional storage or home office space beneath the staircase.  

Long Beach has a lot of smaller living spaces.

Feel free to submit your unique use of smaller space ideas.

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Posted on November 28, 2007 by Laurie Manny

Long Beach Homes & Condos-7 Steps to Pre-Home Purchase Preparedness

Long Beach Real Estate & Home Loans

Long Beach Homes & Condos

7 Steps to Pre-Home Purchase Preparedness

1 – Choose a Lender

No it is not smart to just gift your business to a friend or family member, lender or Realtor. It is time to shop for the right lender for the job. My suggestion is to shop for a direct lender/loan originator. Removing the middle man from the transaction reduces your home loan costs. Direct lenders generally have a larger array of product available to them to shop from on your behalf and have built trust relationships with the wholesale lenders which you will benefit from greatly. Discuss your long range plan with your lender, have them explain the benefits of the loan programs available and decide which suit you best. Lenders have been closing up shop and discontinuing loan programs often recently; inquire if your lender plans on double app-ing your loan for your safety, a good one will.

2 – Checking Credit Scores Prior to Starting the Purchase

Your lender can pull your credit report for you. Many credit reports contain errors which can be costly to you. Finding and correcting these errors, prior to searching for your new home will reduce your stress levels.  This will grant you the time to repair the problems which would otherwise result in higher interest payments due to the higher risk you would appear to pose. You may find that you have been the victim of identity theft and decide to put your purchase on hold temporarily until you can clean it up.

3 – Be  Pre-approved Prior to Searching

What a shame it would be to find your Long Beach dream home only to discover that your credit is tarnished and will require several months of repair, or that you qualify for less than you need to purchase it. How are you going to submit an offer without a pre-approval in todays market? What Long Beach seller would consider that offer? How do you even know what loan amount you will qualify for? Why spin your wheels? Be smart, get pre-approved prior to searching.

4 – Have A Solid Financial Plan

Smart buyers start their search knowing how long they plan on owning the property. Armed with this information it is time to shop for a home loan that fits your plan. If you use this approach you will find more opportunities for lower cost home loans will present themselves. For instance, if you plan on owning your Long Beach home or condo for about 5 years (a smart plan in todays market) a really good lender may suggest a less expensive interest only ARM (adjustable rate mortgage) for 7 years, payments fixed for a term long enough to sustain your plan. With so many advising to purchase fixed loans these days, it is smart to educate yourself as to other viable options. Why pay a higher interest rate for a shorter term investment if you dont have to?

5 – *Insist on a Lock-In Letter

Demanding a Lock in letter assures the BUYER that there will be no surprises when signing Loan Documents, the interest rate promised to them will be the same they sign for at the end of the escrow.

6 – *Demand a Loan Commitment

Assures the BUYER the home loan they were promised will be the home loan they will receive; the terms will be as promised.

*LONG BEACH BUYERS BEWARE: If your lender hesitates in providing a Lock In Letter and a Loan Commitment, this usually means they have not secured the home loan as promised, and are likely still shopping the loan with the hope of finding one close to what was promised you.  There is no guarantee the lender will be successful in this endeavor.  A reputable lender should be able to provide you with both within 2 to 3 days of your request at no additional cost.  If your lender dances, find a new lender immediately.

7 – Waiting to Sell Your Home

With so many properties on the market and so few buyers, there is no guarantee that YOUR home will sell, or will sell in a timely enough fashion to meet the terms of any contract you write. This is true on todays market even if you price your home below market and it is in impeccable condition. It is true that you can acquire a bridge loan or use your equity line of credit to purchase, but what if your home does not sell?  Could you handle the payments?  Could you rent it and cover the elevated expenses?  Todays buyers are taking their time and are not settling for anything less than exactly what they want. Few sellers will risk removing their Long Beach Homes from the market to wait for your contingent sale, even in todays market. If you need to move, put your home on the market, price it right and sell it. Then shop.

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Posted on October 1, 2007 by Laurie Manny

The Little Things Matter

A client of mine owns a successful cabinet shop in southeast Idaho. Hes decided, in his 50s, to get significantly more aggressive in his pursuit of his retirement goals.

Hes putting a 7,000 square foot addition onto his companys plant. Just this one small addition will accomplish the following.

• Allow delivery trucks to back into the building & out of the winter weather
• Lower supply costs — now has much more storage he can buy farther ahead
• Lower storage costs — storage now will be on site without additional expense
• Added manufacturing space — more product produced in the same time
• Significantly reduce time from contract to delivery for out of state customers
• Increase gross revenues from 50% to over 100% in the next 12 months
• Increase profit margin without increasing product prices

The addition is much simpler and cheaper to build, as its a steel building, and will be complete by the end of this year, even though it wont start for another couple weeks. As I observed in my conversation with him,

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Posted on September 26, 2007 by Laurie Manny