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Archive for the 'Real Estate FAQ' Category
January 15th, 2012
Should you make a back up offer?
This is always a good question that is asked by buyers. The answer isn’t always a simple one.
I guess the biggest differentiator is if it is a short sale or not.
If it is not a short sale, if you make a back up offer, and the seller has options, they can use the two offers against each other to drive up the price. It also puts the first buyer in a position where they may accept the house under less than ideal circumstances solely because there is a back up offer that might take it if they don’t. It gives the existing offer less bargaining power, giving the seller advantages over both of you!
If it IS a short sale, it may be completely different! Because short sales typically take a very long time to get bank approval, it is very common that after making an offer, the original buyer may have found another property, and have moved on. So the bank will often quickly move on to the back up offer.
Each situation is different, but when you find a home that you might like, talk to your Carlsbad real estate agent to discuss your negotiation strategy. They will determine what might be best for your situation, especially based on how much you may want THAT house!
January 14th, 2012
Can I back out of my purchase contract?
Carlsbad, CA – We often hear this question from a client. As La Costa homes are coming on the market daily, clients start down the road to a purchase, only to find another home they like better, or that they are concerned about the payment – or any other reason.
The simple answer is probably – as long as you aren’t too far into the purchase transaction. If your Carlsbad real estate agent is savvy, they have normally written a number of contingencies into your purchase contract – allowing you to get the home appraised, get loan approval, get an inspection, etc. The period of time for you to get all these answers, and “remove your contingencies” is typically 14 to 17 days.
At the end of that time period, you either have to sign off on the contingency removal, or get the seller to agree to an extension of a contingency.
HOWEVER – Buyer BEWARE!!! If you are purchasing a San Diego foreclosure or San Diego REO property, then you have likely signed a very “non-standard” California purchase agreement. Most REO homes have very specific terms that will often leave you without your earnest deposit if you pull out of the purchase.
This is one of the largest reasons most buyers should have a buyer’s agent working on their behalf! You want a representative that has a fiduciary responsibility to look out for YOUR best interest – even if it costs the agent a sale! If you are working with the agent that is representing the bank, they have been hired specifically by the bank to get this home sold – and unfortunately, it is YOUR interests that suffer!
As always, if you are in a current situation, and need legal advice, we strongly encourage you to contact a real estate attorney. If you have general questions, or are looking for a La Costa or Carlsbad home for sale and would like someone to ensure that YOUR best interest is protected, contact The Mewborn Team. We promise to always deal with our clients with fairness, honesty, and integrity, giving you as much information as possible to make your best decisions!
January 5th, 2012
What IS Debt to Income Ratio?
As a San Diego home buyer, you will make your life much easier if you get pre-approved BEFORE you ever go looking seriously at the first home! I know that sounds counter intuitive – but there’s nothing like finding your dream home, getting your hopes up, only to find that the home is outside of your reach.
By being pre-approved, you know what you qualify for, as well as what the bank will actually lend you -so there aren’t big, disappointing surprises at the “end” of your transaction!
As a lender is looking at whether or not they will lend you money, one of the first, and biggest things they will do, is to look at your debt to income ratio. What is that? How is it calculated?
To make it simple – your debt to income is the percentage of your income that is spent on loans (car loans, home loans, credit card debt, etc). Your other expenses – utilities, insurance, etc are not included in this calculation.
In order to get a loan in today’s environment, your debt to income (DTI) often has to be below 40-45% of your gross income. So in order to get a better idea of what you can afford, add up all your monthly loan payments and divide it into your total monthly income. This simple calculation will give you your current debt to income ratio. It will also tell you how much more monthly debt you can take on to remain below that 40-45% of your gross income.
If you have any questions about calculating what you may be pre-approved for, please contact The Mewborn Team. We would be happy to work with you and a lender to get you pre-approved for a loan for your future home!
December 2nd, 2011
How does my neighbor’s foreclosure affect me?
As we finish out another year, we are starting to see how the year has shaped up in real
estate sales in San Diego county. 
As of the end of October, the median San Diego home price was down to about $357,000 from $364,000 in September. Overall, San Diego home prices are down about 7.1% since last October.
As most home owners are seeing in their neighborhoods, the largest single influence in our prices right now are due to distressed sales. Any time a home goes into a short sale or foreclosure, those homes tend to sell at a lower price, ultimately bringing all of our home values down.
Foreclosures in particular tend to drastically lower prices – with many foreclosures selling for a full 10-20% less than its non-foreclosed upon neighbor.
As less distressed properties hit the market, we will start to return to more normal sale prices – and that is when home values will start to rebound. If you, or someone you know, owns a home that you are not able to continue making payments on, please contact us to discuss a short sale. A short sale will look more favorably on your credit report, as well as your neighbors’ home values.
September 9th, 2009
Three Important Tips For Buying Carlsbad Real Estate In Today’s Market
1. Clean Up Your Credit Before You Start Looking
Carlsbad home loans and interest rates are all dependent on your credit score. The higher your score, the more programs that are available to you. In today’s market, a score of over 700 is advisable for the best home loans
2. Don’t buy Carlsbad real estate unless you can afford to stay put.
Although property values have been on the upswing in La Costa and Carlsbad, there are still concerns about a coming wave of foreclosures. We may have seen Carlsbad property values at their bottom, but that is still unknown. Don’t buy Carlsbad real estate hoping to flip it quickly at a profit. Now isn’t the time to take that kind of risk! Read the rest of this entry »
August 31st, 2009
Have You Reduced Your Carlsbad Property Taxes?
Your Carlsbad property values have probably fallen over 20% in the past two years. You know it. We know it. The San Diego County Assessor knows it. But they don’t reduce your Carlsbad property tax bill without you contacting them to reduce it! Even though you may have missed the May 2009 deadline for property tax reduction, the San Diego County Assessor is giving you another opportunity to reduce your property taxes – through a property tax appeal.
What To Do Next:
1. Fill out the San Diego County Assessor’s form.
2. Provide all the necessary documentation – current Carlsbad property tax bill, opinion of new value, and your Carlsbad neighborhood comparables (back up of opinion of value). Please contact us at (858) 205-2000 for your comparable values. Please be prepared to provide your name, address, email address, home square footage, and number of bedrooms and baths.
3. Mail to the San Diego County Assessor.
Upon completion, mail your forms to:
Clerk of the Board of Supervisors
Assessment Appeals Services
1600 Pacific Coast Highway Room 402
San Diego, CA 92101
Please contact The Mewborn Team for more information.
August 25th, 2009
Time Running Out For First Time Buyer Credit!!!!
Carlsbad, CA – If you are a Carlsbad, La Costa, Oceanside, or San Marcos buyer who was hoping to take advantage of the first time home buyer’s tax credit – YOU BETTER HURRY! We are finding a number of things in the current market place:
1. The tax credit expires on December 1st, 2009. That means all real estate purchases have to be CLOSED before then. You can not still be in escrow. Read the rest of this entry »
Mike & Amy Mewborn Real Estate Specialists
Mike: 858.205.2000
Amy:760.213.6653
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