An Unethical Agent-Abusing Tactic

“My wife and I are looking for a North Park home. Her brother is a contractor and also has a real estate license. He told us to do all the legwork and have agents show us homes, then he’d write the offer for us. So we’ve been calling agents to see homes, but we just
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Investor Offers on Fannie Mae’s Foreclosures

“Hey Gary do you have offers from investors? Can I write an offer now, though I know it is only day 12 out of 15?” Answer: Let me explain the context: this is an agent asking if she can write an offer for an investor on a Fannie Mae-owned property that has been listed for
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Does Anyone Read the Whole Contract?

“When my wife and I bought our home this year, the contract was about 15 pages long, full of small print. We had about 10 minutes to skim it before we signed. Does anyone ever read the whole contract?” Answer: Almost nobody. Of the 3,000+ clients I’ve served over 21 years, I could count on
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Understanding Buyer Cancellation Penalties

“On what date can the buyer no longer back out without penalty?” Answer: It depends on the contract. It’s often the 17th day after acceptance, but your case could be different. Let me address a related issue… Many agents tell their clients, “if the buyer cancels, you get the deposit.” This is not necessarily correct.
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The Downsides of Low Offers

“Want to get your opinion. We want to buy a home. What’s the downside to making a low offer to see what the seller will take?” Answer: Great question. But what do you call a “low offer”? I’d call an offer within 5% of the market value an “okay offer.” The only downside is you
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Buying a Duplex as a First Home

“What do you think of buying a duplex as a first home?” Answer: Way back in 1986, the first home my wife and I bought was a Clairemont duplex. We stretched to buy it for $122,000, but we did get $425 per month for the other 2-bedroom unit. It worked out great. So you can
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Deal with the Agent, Not the Seller

“There’s a house for sale I’m interested in buying. Is it illegal or unethical for me to approach the seller and find out what price they’ll take?” Answer: It’s not illegal. And it’s not literally unethical because you don’t have a formal code of ethics to adhere to like Realtors do. Better words to use
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Lowest Down Payment to Buy a Rental Property

“What’s the lowest down payment you can make to buy a rental property?” Answer: Theoretically, you could buy a property that the owner finances and put zero down. But the odds of that happening are not much higher than that down payment. Fannie Mae sells some of their foreclosures for just 10% down to investors
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The “Price Per Square Foot” Myth

“Hi Gary. We’ve found a beautiful La Jolla home on a canyon, but it’s way overpriced. The sellers won’t go below $397 per square foot, but homes in the area are selling for around $350 per square foot…” Answer: Stop. You’re falling for a fallacy that traps many homebuyers, homesellers, and a whole lot of
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Suing Over Problems with Your New Home

“We bought some San Diego real estate 2 months ago and have found plumbing problems that no one disclosed to us. The sewer line has deteriorated. We need to tear up the lawn and have the line replaced. And we noticed a warm spot on the floor and found out a pipe in the slab
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