Ask Gena

Burning Real Estate Questions, Answered

May 12th, 2008 categories: Ask Gena, Real Estate Tips, Realtor

Ask Real Estate Question Hope all you Mother’s had a wonderful Mother’s Day yesterday and did something special.

I know I did, I spent it with some long term clients who are friends and had a wonderful BBQ and shared some wine and conversation…then it was off to look at homes. Next, we will write an offer on a house they chose on Mother’s Day in Elk Grove, CA.

Now, let’s get to those burning real estate questions that have been coming in.

Today, our 1^st question is from a home buyer who has a VA loan approval.

Hi Gena,

We are pre approved for a Veteran’s Home Loan and want to buy a house. We have been looking at some bank owned homes but want to know if what our realtor told us is true or not. She said, that we have to be careful when looking at bank owned homes because they might not approve them for a loan. Is that right?

Sincerely,

Excited Home Buyer

Dear Excited Home Buyer,

First let me say, congratulations on getting your loan approval. So many home buyers forget that vital step and have no idea that it is essential at the very beginning. So, give yourself a pat on the back.

Your Realtor is correct. If the property has any health and safety issues as well as hazards then VA won’t approve the loan. Most bank owned properties are sold as-is which makes it difficult for you to make an offer. However, there are some out there that are very clean and in my opinion would meet the VA standards but you have to sift through them to find one that would be suitable.

Good luck to you and hope you find a clean one.

Gena

Dear Gena,

As a home seller I want to know if I should be present during the home inspection of my house or if my agent should be present. I don’t feel comfortable having strange people in my house. What is your opinion?

Reluctant Home Seller

Dear Reluctant Home Seller,

If you put your house up for sale and you accepted an offer from a home buyer, it is your duty according to the contract to make the house available to the home buyers, the home inspector and the home buyer’s agent.

It sounds as though you may be going through some separation anxiety about leaving your house. Try packing a few items and thinking about the home that you will be moving to. You need to focus on leaving and beginning a whole new life in a different house. It’s time to let go of this one.

Making sure that the home buyers feel comfortable in the house is essential. As a listing agent, I always instruct my home sellers to leave the house when buyers are looking and certainly for a home inspection. This is not the time to be in the house. The home buyers agent will make sure that everything is left as it was before you left. Don’t worry.

Now pack and get moving…

Gena

Dear Gena,

I would love to buy a house now with prices so low but I don’t want to sell my house for nothing. The bank owned homes are bringing the value down of my house. What do you suggest I do?

Scared to Sell

Hi Scared to Sell,

My suggestion is don’t sell. Simply rent out your house and buy another house. Make sure that you check the renters credit and call for references before signing a rental agreement and get the 1^st and last month’s rent as a deposit.

Then when the real estate market returns, think about selling your rental or maybe by that time you will like being a landlord and be ready to buy another house to rent out.

Hope that helps.

Gena

Those are our real estate questions for this week. If you have a burning real estate question that you would like to ask the Real Estate Broker, Gena Riede simply email your question and it may be featured. All identifying information is removed so that no one will know who you are so feel free to ask your question.

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March 12th, 2008 categories: Ask Gena, Home Buyer

Ask Real Estate Question Todays Real Estate Question is asked by a First Time Home Buyer living in Virginia not Sacramento.

I am posting the home buyer comment here in Ask Gena your Real Estate question since there might be other home buyers here in California that may have the same real estate question.

My answers will be accordance with CA Real Estate.

I will answer the home buyers question in red. So, lets get straight to the question.

First Time Home Buyer Real Estate Question:

In a short sale will the property be in the condition of say a foreclosed or as is where is sale? Every foreclosure house for sale (referred to as a REO or Bank Owned), is different. Some are as is and some homes the bank is willing to fork over the cost of a few repairs. However, when you are dealing with a home for sale that is a short sale, the home buyer is already in trouble and typically cannot afford any additional costs for repair. Thats why the seller is in short sale.

For example, from watching shows like flip this house, some flippers purchase homes sight unseen from banks and when they get there they find either huge messes or a stripped home (copper wiring etc missing). That is NOT the way to buy a house or an investment property. My suggestion is to not believe everything you see on flip this house. That is one of the many reasons we have the problems in todays real estate foreclosures.

Not to say this is a big problem but I will be purchasing my first home here in the very near future and dont want to end up with a $500k Hunk-o-Junk. Congratulations, you are making wise decision as long as you get pre-approved, ask for a good faith estimate from the Lender and get an experienced Realtor to help you. In fact, Lenn is the best in VA that I know. Just give me a call or email and Ill hook you up so that you dont make any mistakes and end up with a hunk-o-Junk.

Does one run the risk of this type of problem on a short sale? Not if you pay for a home inspection. You should know what you are getting within the disclosure period. This is the time line according to the agreed upon purchase contract where all disclosures are obtained and as the home buyer you perform any inspections that you decide necessary. However, if you are purchasing a Foreclosure, the seller is the BANK and the bank is not obligated to disclose anything. Remember, the bank never lived at the house. Only homeowners, that are sellers are obligated in CA under the law to disclose IF they lived on the property.

Also, are they allowed to have their own inspector (paid for by the prospective buyer) to come by and check the home out before signing papers? In CA the home inspection is performed within the agreed upon disclosure period, typically within the first 17 days and is usually paid for by the home buyer. The seller has 7 days to provide all of the disclosures. No one should ever sign any papers before thoroughly and completely satisfying all details of the home for sale under contract.

If there is some measure of accountability there, then Ill include short sale homes in my search (currently I am looking for new construction within the past 8 years). You should frankly ask the experienced Realtor that you have about new construction and short sales. Realtors in the areas know if banks are even accepting short sales and if builders are going out of business in a new area being built leaving the home buyer high and dry with half finished neighborhoods and possible liens if going bankrupt. As you can see, it is essential that you have someone working with you that has the experience, the expertise and knowledge so that you are not caught unaware.

Also, if asked, are realtors obligated to disclose deaths (and the nature of the death if asked) in a home? The Seller in CA fills out what is called the Supplemental Statutory and Contractual Disclosure. The Seller is obligated to disclose if there has been a death upon the property within the last 3 years and if so, asked to explain. Frankly, I always instruct my home sellers to disclose even if a death occurred more than 3 years previous. The more a house seller discloses the better for everyone. However, I dont know VA law so that is something that your experienced Realtor can answer. Again, this does NOT apply if you are dealing with a foreclosure.

I dont care how a person passed, I prefer not to live in a home someone died in.

As a side-note, as the years go by, home buyers will find that more people will be dying in their homes. Hospitals are sending folks home to die so it is not unusual and wont be unusual in the years ahead.

I am sure it varies by state and as I live in VA I expect you may not have an exact answer but a ball-park answer is sufficient. Thanks!

Yes, laws are local and VA will have its own laws that govern Real Estate. I believe that in VA if Im not mistaken, atttorneys get involved with all real estate transactions.

Good luck and give me a jingle if you want the best Realtor in VA. Hope my answers helped you as well as other home buyers and First home buyers in CA and other States, as well.

If you have a Real Estate question, check out and read what other home buyers and home sellers have asked.

Feel free to ask your Real Estate question by email.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Other Ask Real Estate Questions:

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January 20th, 2008 categories: Ask Gena, Real Estate Tips, Realtor

Ask Gena Button Its Ask Gena, the Realtor a question time!

As always, names are never given nor specific addresses or areas.

You can rest assured that this is a place where your question can be posed with anonymity.

Now, lets get to our home owner question for this week.

Dear Gena,

After the recent weather that we had tree limbs fell on my roof and part of the fence is on the ground. I have had several people come and to look at the damage and give me bids. I have a couple of questions. How many bids should I get and is it really important to have a licensed person do the job?

Dear Unfortunate Homeowner,

Technically, you should get 3 bids and that way you will have a good idea as to how much it will cost plus the people giving bids should definitely be licensed. Remember, that when you hire someone to fix anything they can tell you they know how but if they have a license, then there is a better chance that they REALLY know how to fix what you need done.

More importantly, they need to be insured. What happens if they get hurt on the job at your house? Hiring a licensed contractor is in your best interest and will save you money in the long run.

Remember, that you should NEVER give more than 10% as a down payment. There should be a schedule of payments and no payments made until each portion of the work is completed.

Some of the things you need to be very careful about are liens. Liens can be placed on your home by people that were not paid by the contractor and by the supplier of the materials if they were not paid for. The contractor should be giving you, Notice to Owner. Remember that all changes or additions to your contract must be in writing. The contractor is required to let you know if they are insured and provide you with that information.

Things to Know When Hiring a Contractor:

Check out the License with the State License Board
Get 3 Bids
Building Permits
Read and understand the contract
Do you have a 3 day right to cancel
Contract should give start date and end date
Contract should give detailed description of work and materials used
If asked for down payment it should never be more than 10% or $1000 whichever is less
There should be a schedule of payments upon work completed
Notice to Owner should be given informing you about liens
All changes or additions should be in writing