real estate

There are few things as rewarding as helping newlyweds and first-time buyers negotiate and close on a killer house at a great price. I just had the honor of helping guide a young couple through what ended up being a very challenging transaction. There were so many opportunities this transaction could have fallen out of escrow, but the right people fought hard to make this deal happen for this ecstatic couple.

But this is only the beginning of the reward. The real reward will come as I see them complete work on the house, put their finishing touches on it, make it a home, and, of course, grow a family there. On days like this, I LOVE MY JOB.

And now, from the “Why didn’t somebody think of this sooner?” department:

With electronics everywhere these days, plugs can be at a premium. Who hasn’t had the experience of searching for a wall outlet, only to find it occupied by a gigantic power cord blocking access to the other socket ?

Thanks to designer Kim Gerard, we now have the ingenious 360 Electrical Rotating Duplex Outlet. Each socket rotates a full 360 degrees, allowing endless configurations, and most importantly, the ability to fit two bulky power cords in the same outlet.

Terrific, simple design solution - a little change with big results.

[via Remodelista]

Speaking of short sale success, I just got notified that a short-sale that was being negotiated on behalf of my clients has been approved. This was one of those deals that had all of the right signs, but, because it was a short sale, nobody was holding their breath!  It is a deal for some dream clients that have been very patient throughout the ordeal (which, I believe, began in February!).  There were a number of other offers on the table, but the listing agent went ahead with ours (obviously, the strongest).  We asked the right questions, the buyers and their lender did the right things, and, just as importantly, the listing agent’s negotiator did a bang up job making this happen.

My clients were well informed that this deal was a long shot (and certainly not a done deal yet!), so they continued to look at other properties and remained patient.  In the meantime, nothing seamed to meet their specific needs and their growing family quite like this house, so I am just thrilled for them.  We still have a long road ahead of us to make this thing close as smoothly as possible. But getting this approval (it happens with only 1 in 62 short sales on the market) was a major victory!

CNN notes that the market has changed and that there are 5 new rules that all prospective home-buyers should know:

(Money Magazine) — There’s no telling how long the housing crisis will drag on. Here’s what you need to know before you start shopping in a rocky market.

Face it: The house you buy today will more than likely be worth less next year. That could get you thinking about trying to time the bottom. Resist. It’s harder to do than you think, and this is the best buyers have had it in two decades, with inventories up and mortgage rates low.

Pace yourself, find the perfect place and drive a hard bargain: Ignore the seller’s asking price and bid 10% below what comparable homes are selling for. If the seller balks, move on. Remember that if you’re trading up, your home could sit. So sell before you buy.

Homes are plentiful and will remain so, but financing will be getting more expensive. True, the Federal Reserve has slashed interest rates, but fixed mortgages don’t directly follow the Fed. They reflect the bond market’s expectations about inflation, which remains a concern. The 30-year, now at 6.1%, will likely reach mid-6% by December and 7% in 2009, says Celia Chen of Moody’s Economy.com.

That means there could be a penalty for waiting to buy even if prices fall more. Today a $250,000 loan would set you back $1,500 a month. At 7%, a $1,500 payment gets you only a $225,000 mortgage. As for variable-rate loans, the spread between conforming ARMs and fixed loans is too narrow to do you much good.

Mortgages in amounts greater than $417,000 - the limit for buying by federally sponsored mortgage agencies - usually run a fifth of a percentage point above conventional products. But investors are shunning jumbos, which now average 7.2% and are unlikely to drop much this year, according to HSH Associates.

Certain jumbo borrowers could get relief, however. A new law allows Freddie Mac and Fannie Mae to buy loans as large as $729,750 in 71 high-priced areas. So far “jumbo conforming” loans average 6.6%. The program has gotten off to a slow start; you’ll need to shop around. And unless Congress acts, this bargain will disappear at year-end.

By now you’ve heard from somebody who knows somebody who got a great deal on a foreclosed property. But when you buy a house, you’re also buying into a neighborhood. And foreclosures tend to be bunched in areas where residents and speculators alike took out exotic mortgages to get into homes they subsequently found they couldn’t afford. That’s not a recipe for stability. Prices and quality of life could both decline further.

Similarly, avoid developments that popped up in the past few years. They too likely have a lot of owners with risky loans and little equity, says Mike Larson of Weiss Research. Instead, go for areas with highly rated schools. They generally fare better during downturns, and that pattern is holding today, according to a recent study by real estate site Trulia.com.

The real estate game has a built-in conflict of interest, since the listing agent and your agent both get paid by the seller. And these days more sellers are offering extra cash to buyer’s agents.

So make sure you’re not being steered to a house that’s better for your agent than for you. Agree up front on his commission (typically 3%) and that any extra payments will go to you, says Jon Boyd, past president of a buyer’s agent trade group.