Value Range Pricing
Monday, 05 December 2005
Value Range Pricing: “I don’t agree with this whole value range pricing idea. It just doesn’t make any sense. No one’s ever going to pay any more than the bottom. I’d never sell my San Diego home with it.” ***ANSWER: I’m with you. And while we’re at it, I don’t agree with this whole electricity
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Open House Tips
Tuesday, 29 November 2005
“When I was a kid in the 60’s, my dad was in the navy and we moved a lot. When we sold a home, my mom baked bread when people were coming to look. The whole house smelled great and my folks said it helped with the sale. Now I’ll be selling soon, but I
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What does Mortgage Insurance pay for?
Friday, 25 November 2005
What does Mortgage Insurance pay for? Mortgage insurance is generally required for home loans with a “loan-to-value” ratio of over 80%. The insurance protects the lender (NOT you) should you lose your home to foreclosure. Now, to avoid paying high mortgage insurance premiums, “80-20” loans are becoming very common. A lender makes a 80% loan-to-value
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Cracked Slabs
Monday, 21 November 2005
What about cracked slabs? “I saw a home I loved in West Clairemont, but there was a crack in the slab. Should I avoid buying a home with a cracked slab?” ***ANSWER: Some cracks are very serious and cost thousands, tens of thousands, or even hundreds of thousands to fix correctly. Other cracks are more
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Mortgage Payments Question
Thursday, 17 November 2005
We’re beginners in the San Diego home buying game. Can you give us some tips on deciding how much to spend on our monthly mortgage payment?” ***ANSWER: I want you to come up with 2 monthly payment figures. They should include loan payment, taxes, insurance, and possible HOA fees, Mello-Roos fees, or mortgage insurance. Be
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1031 Tax Deferred Exchange
Wednesday, 16 November 2005
“Hi Gary. I have 24 apartments in City Heights. They’ve been a headache lately and I’d like to get out of them into something else. Is it true that you have to buy up to do a 1031 exchange?” ***ANSWER: Almost. While you do have to buy up to do a full deferral, just buying
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Cap Rate VS. Gross Rent Multiplier
Sunday, 13 November 2005
Cap Rate vs. Gross Rent Multiplier “What’s the difference between a cap rate and the gross rent multiplier?” ***ANSWER: Cap rate is the opposite of a price/earnings ratio, used with stocks. Here are some random cap rates and GRMs in San Diego: CapGRM Area 415 Pacific Beach 513 North Park 5.312 El Cajon As you
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Home Pricing Advice
Saturday, 12 November 2005
Home Pricing Advice “Hi Gary. We’ll be selling our condo in La Jolla next month. We know the comps say it’s around 700K, but we’d like to shoot for 725-750K. We’re willing to hold out even if it takes several months to sell. How long should we expect it to be on the market?” ***ANSWER:
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Discount Brokers
Friday, 11 November 2005
Discount Brokers “What’s this I see around San Diego about 1% and 2.5% real estate fees to sell a home. I know they’re discount brokers and don’t do very much, but how can they charge so little and stay in business?” ***ANSWER: Many of them don’t. There’s a real revolving door of these reduced service
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How much are Real Estate Taxes in San Diego?
Wednesday, 02 November 2005
California’s Proposition 13 limits your property taxes to 1% of the assessed value + voter approved local bonds, all totaling just under 1.2%. This makes your monthly property taxes easy to calculate: approximately 1/10 of 1% per month. For example, a home purchased for $600,000 has approximate taxes of $600/month. Note #1: The assessment can
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