ADVANTAGES OF BUYING A NEW SAN DIEGO HOME

In this tough economic atmosphere, the prospects of getting a great deal may lure your San Diego clients toward buying a short sale or REO.  But while up-front costs may seem lower on an REO or short-sale, Carlsbad and Oceanside buyers often end up paying in other ways.  Below the photo are five advantages of buying a new Carlsbad home, Oceanside home, or other San Diego North County home:

Elise Nicole

1. NO REPAIRS. With a short sale or REO, the previous owner may have stopped maintaining their Oceanside or Carlsbad property. That means your client could end up with expensive repair bills. But new Carlsbad home purchases often include builder warranties for workmanship, materials, and structural problems to help protect your client against large out-of-pocket repair expenses.

2. NO SURPRISES. With a new Carlsbad or Oceanside home, what you see is what you get. With an REO or short sale, what you might not see is what you get. New San Diego North County home purchases often come with many disclosures from the seller, though in reality, very little may actually need to be disclosed. For REO transactions, not only is the bank exempt from some of the disclosure requirements for sellers under California law, but the previous homeowner may be long gone.

3. GUARANTEED QUALITY. New San Diego North County homes are usually built with modern conveniences and energy-efficient technology. They may also come with warranties for craftsmanship, appliances and more, to give the buyer peace of mind. Short sale and REO properties may not come with warranties or upgrades and may not be available for inspection prior to purchase, so your client could be in for some expensive surprises after purchase.

4. FRIENDLIER FINANCING San Diego homebuilders often have relationships with lenders that help North County buyers obtain financing for new Carlsbad homes or Oceanside homes with relative ease. For short sales and REOs, the property may have a lower price tag, but some buyers may run into difficulty getting financing.

5. SHORTER PURCHASE PROCESS. North County homebuilders usually have homes available for immediate occupancy or on a move-in schedule that’s convenient for your clients. Negotiating a short sale can take several months — and there’s no guarantee your client’s offer will be approved.  Tips courtesy of CAR.

Your North County Realtor, Gary Harmon, can help find the right San Diego, new home for you.  Contact Gary Harmon, for a personal tour of new San Diego North County homes today.

Short Sale – Escondido Real Estate

What is the difference in a short sale of an Escondido home and a foreclosure? What is an REO and a bank owned property? Escondido home buyers often lump all of these distressed sales together, but they are very different and must be approached in different ways.

Foreclosure, REO, or Bank Owned Property

Let’s start by addressing the foreclosure which is easier to define. A foreclosure is a process where the bank takes back ownership of the Escondido real estate. The bank files a notice of foreclosue against the Escondido home. After 120 days the bank can then take ownership of the property. The homeowner is out of the loop so to speak. Properties that have been taken back by this process are often referred to as bank on properties or reo’s which stands for “real estate owned.” From a buyers point of view, foreclosures, reo’s, bank owned homes are very attractive. Buyers can make offers and the bank can make an immediate decision. For Esconido home buyers needing to move into a home right away this type of purchase beats the short sale.

Short Sale

A short sale is a sale where the proceeds from the sale of the property will not be enough money to pay off all of the leins against the Escondido property. A short sale requires approval from the lein holders. Many times this takes much more time than the Escondido buyer is willing to wait. Short sales have advantages and disadvantages from both the buyer and seller angle. This blog will take a look at all the various angles of the Escondido short sale in future blogs on this subject. For immediate information, call Gary Harmon, your Escondido Realtor. For immediate reading see Gary’s main website.  Get a summary of  “Short Sale Basics.”  Find out  “How to Qualify for a Short Sale.”  Find, “What are the Advantages of a Short Sale.”  And see “Short Sale Supporting Documentation” a lender may need.

Buyer's Choice Act and Escondido Real Estate

AB 957 and How it Effects Escondido Real Estate

New legislation was signed into California law in December of 2009 effecting us here in San Diego North County.   There are several points that Escondido home  buyers and Escondido home sellers should be aware of:
  1. A seller of REO residential Escondido real estate with four or fewer units “shall not require directly or indirectly as a condition of selling the Escondido property that title insurance covering the Escondido property or escrow service provided in connection with the sale of the property be purchased by the buyer from a particular title insurer or escrow agent.”  What  this means in plain language is that the bank, selling bank owned property, cannot require you the Escondido buyer to user their title insurance company or their escrow company.  This is only true if you the buyer are paying for these services.  Gary’s winning team member, Pickford Escrow  and The Escrow Firm have closed over 9,000 REO (bank real estate owned) transactions in the last 18 months.
  2. The bill provides that “sale” is intended by the Legislature to “include the receipt of an offer to purchase that  residential  Escondido property.” – means it is intended to prohibit sellers from conditioning the receipt of an offer to buy an Escondido REO property on the buyer’s agreement to use a specific title insurer or escrow agent.  That means the bank has to look at your offer reguardless of which title or escrow company you choose.  California Title Company, one of Gary’s winning team members is also experienced in bank REO’s sales.
  3. AB 957 does NOT prohibit an Escondido buyer “from agreeing to accept the services of a title insurer or escrow agent recommended by the seller” PROVIDED THAT “written notice of the right to make an independent selection of those services is first provided by the seller to the buyer.”  That means it is  ok to use who the bank recommends provided they disclose that it is your choice.
  4. AB 957 only applies to title insurance or escrow services “purchased by” or paid for by the Escondido buyer.  That means if the bank is paying for both sides, they get to pick.
  5. A seller who violates AB 957 “Shall be liable to a buyer in an amount equal to three times all charges made for the title insurance or escrow service.” A violation of AB 957 is also deemed to be a violation of the seller’s license law which can subject the seller to discipline by its licensing entity.
Gary Harmon, your Escondido Realtor, Pickford Escrow,  and California Title Company are excited about working with you on transacations that we could not work on before this law was passed. We look forward to closing your next REO deal!  Contact Gary Harmon to get more information on bank foreclosure sales.  You can also do a free foreclosures search by using Foreclosue Radar  provide by Gary Harmon.