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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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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Agents Who Promise Exaggerated Prices

“Gary, we talked to you in July, but listed our Pacific Beach home on XXXXX Street with another agent because she promised us a higher price. It’s not selling and we realize our agent lied to us about the price just to get our listing. I’m surprised she’s so unethical, working at such a reputable
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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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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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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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Should You Sell & Buy Something Smaller?

“We love our house and our neighborhood. But our son just moved out and it’s getting too big. So we’d like to move and get a smaller house…” Answer: A client of mine recently reminded me that she’d asked me this same question several years ago. Here’s what I told her then: It costs a
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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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