Offering on the San Diego Home You’re After

“My wife and I found a Pacific Beach home we want to buy. The list price is $525,000. What do you think a good offer would be?” Answer: Probably $515,000. Or $535,000. Or perhaps $400,000. Your question is impossible to answer until you tell me: 1. What is the home worth? (You should have a
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Should You Go to Where You Bank for a Mortgage?

“Do you recommend I go to where I bank to get a mortgage? Will they give me some kind of preferential treatment?” Answer: The answer would have been “yes” 50 years ago. However, today it’s very rare for a bank to give any significant benefit to one of their customers who gets a mortgage. Call
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Is APR the Best Way to Shop for a Loan?

“Is APR the best way to shop for a loan?” Answer: From my preferred lender, Robert Geiler of Rancho Financial: “The APR was developed to show borrowers the true cost of getting a loan as an interest-rate rather than a dollar amount. It was supposed to make it easier for to compare rates because, theoretically,
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Are Owners Carrying Back Notes?

“Are many owners carrying back notes nowadays? I almost never see it offered. With savings interest rates in the 1% range, you’d think it would be very common.” Answer: Good question. I agree with you that many owners would benefit by “being the bank” and letting the buyer make payments on a first or second
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How Big Your Down Payment Should Be

“Is it wise to put down a large down payment or put down the smallest amount possible? We have a lot of cash from the home we sold in Boston and can put down almost 50%. Or should we go 10% down and borrow the rest?” Answer: Simple question, not as simple to answer. Regarding
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How Banks Approve a Short Sale

“What do banks look at when they decide if they’ll approve a short sale?” Answer: Banks look at: 1. The owner’s “hardship” or reason for having to sell. 2. Whether they think the owner can keep making mortgage payments, based on their income relative to expenses, including the mortgage. 3. The owner’s cash, stocks, bonds,
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Learning More About Home Refinancing

“Dear Mr. Kent, do you have some kind of reading material about home refinancing? We would appreciate it if you can send us some materials on this matter because we are seriously thinking of refinancing our San Diego home before our adjustable loan gets mature.” Answer: Thanks for your email. Since I don’t handle mortgages
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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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