Pasadena CA Real Estate

As a real estate agent working in and around Pasadena California, I am constantly getting phone calls from buyers looking for great deals. 

If you are looking for a real estate deal, you came to the right place.  I will be posting my "Dusty Deals" by area on a monthly basis right here for your review.

What is a "Dusty Deal" list?  It is a list of real estate for sale including homes, condos and townhomes that have been on the market for over 100 days.  Are all of these great deals?  Not necessarily.  BUT, the seller has been actively marketing their homes for a very long time and is probably ready to deal.

Why are these homes on the market still?  The most likely reason is that they were over priced to begin with.  The first few weeks of marketing a home for sale are the most critical weeks for any seller.  If the property is overpriced, or not marketed correctly, it gets stale.  Local real estate agents ignore these homes and avoid showing them to their buyers.  Potential home buyers look these homes up on the internet, but wonder what is wrong with these homes since they didn't sell.

My take on this is, if you are looking for a deal, these homes are the best place to start.  Why?  Home sellers are tired of showing their homes and most are ready to NEGOTIATE their price and SELL!

So here's a list of homes for sale in Alhambra that have been on the market for over 100 days:

As you're going through the list, please look at the last column titled DOM (Days on the Market).  This will tell you how many days these homes have been on the market.

If you are interested in getting more information about any of these home listings, please call me at      626-204-3340      or email me at Irina@Irina4RealEstate.com.

As a real estate agent working in and around Pasadena California, I am constantly getting phone calls from buyers looking for great deals. 

If you are looking for a real estate deal, you came to the right place.  I will be posting my "Dusty Deals" by area on a monthly basis right here for your review.

What is a "Dusty Deal" list?  It is a list of real estate for sale including homes, condos and townhomes that have been on the market for over 100 days.  Are all of these great deals?  Not necessarily.  BUT, the seller has been actively marketing their homes for a very long time and is probably ready to deal.

Why are these homes on the market still?  The most likely reason is that they were over priced to begin with.  The first few weeks of marketing a home for sale are the most critical weeks for any seller.  If the property is overpriced, or not marketed correctly, it gets stale.  Local real estate agents ignore these homes and avoid showing them to their buyers.  Potential home buyers look these homes up on the internet, but wonder what is wrong with these homes since they didn't sell.

My take on this is, if you are looking for a deal, these homes are the best place to start.  Why?  Home sellers are tired of showing their homes and most are ready to NEGOTIATE their price and SELL!

READ MORE:  Dusty Deals List for July 08 - Pasadena, Alhambra, South Pasadena, Monterey Hills, Altadena, Sierra Madre, Arcadia and San Marino

So here's a list of condos and townhomes for sale in Monterey Hills that have been on the market for over 100 days:

As you're going through the list, please look at the last column titled DOM (Days on the Market).  This will tell you how many days these homes have been on the market.

If you are interested in getting more information about any of these home listings, please call me at     626-204-3340     or email me at Irina@Irina4RealEstate.com.

List compiled from ITEC MLS (Pasadena Foothill Association)

Okay, I've been struggling with something for a few weeks now and decided that I can't do it alone.   So... that's the reason for this post.  I need YOUR help!

I have been trying to come up with a catchy term for "stale" home listings. 

What is a stale listing?  A home listing that has been sitting on the market, in our Pasadena MLS for over 3 months with no takers.

Pasadena home buyers are not interested in these home listings because they're either over priced, not marketed properly by the real estate agent or are just plain overlooked by the Pasadena real estate community for a variety of reasons.

As new homes come up on the Pasadena Real Estate Market, the first few weeks are critical to the successful sale of that home at the best price. 

This is the time when most Pasadena Realtors will preview the homes on the Pasadena weekly broker tours.  Open Houses will drive a lot of new home buyer traffic during the first weekend or two of the home being placed on the market and on-line marketing is at its strongest with search engines picking up the new home listing.

As time goes by, these in most instances, overpriced homes, sit on the market and lose value day by long day.  This offers an amazing opportunity for my Pasadena home buyers to pick up these homes at a great price.

So... getting to the point here... what I would like to do is provide a monthly list of these "stale" homes to my readers and clients.  And to do that, I need a catchy name for this list of homes.  For example, a real estate agent in San Franciso, Alexander Clark, has come up with a great, catchy name for his list of homes that he calls his StaleFish List.

My creative juices are just not flowing and I'm getting some major writer's block here, so I am hoping you can help me come up with a name that would be perfect for our Pasadena Real Estate Market's stale homes.

If you have a suggestion, please comment below.  If I end up using the name you suggest, I will thank you by giving you a $100 gift certificate to your favorite restaurant.

So come one... what are you waiting for?  Please help a desperate realtor.  :-)

Is it the right time for you to buy your Pasadena home?  I honestly don't know.  It depends on a lot of factors that are specific to you.

Until I sit down with a client for a full blown real estate consulation, it's impossible to tell.  But, I do know one fact and that is that "you can't time the market!"

Many people have tried with varied results.  There are too many variables involved to play this real estate game successfully and just looking at one factor like prices. 

Today, I wanted to focus on just three reasons why buying a Pasadena home today would make sense even though the house that you buy today might be worth less a year from now.

1.  Mortgage Rates are Low Today - But may not be next year.  According to economists and industry executives, interest rates are expected to rise from the current 6.00% to around 6.50% by December and to around 7.00% in mid 2009.

Here's an example of what the bottom line can look like if you buy today versus waiting for a 5% drop in value next year:

You could realize a savings of $156 per month if you buy today vs. waiting for a 5% drop in value.

2.  Rates on Jumbo Mortgages - The best rates available for your Pasadena home are for conforming loans.  Conforming loans are considered loans at $417,000 or less.  Loan amounts higher than this are considered jumbo loans.  Jumbo loans are typically 1.00% higher than conforming loans.

Congress has passed legislation to temporarily increase the conforming limit in Pasadena to $729,750.  This means that loans at $417,000 to $729,750 currently have a similar rate as those at $417,000 or less.

However, once January 2009 rolls around, those rates are expected climb drastically.  As well, the guidelines for these types of loans are expected to tighten up, making loan approval more difficult.

3.  Inventory, Inventory, Inventory - Currently, there is a large amount of homes for sale in Pasadena California.  This means today, you can pick and choose the home that is right for you.  Additionally, sellers are now willing to pay for the buyer's closing costs including points to buy down interest rates.  This alone can add up to many thousands of dollars in savings.  Once the market turns, expecte these sellre incentives to go away.

If you are ready to start your Pasadena home search, please call me at 626-627-7107 or email me at Irina@Irina4Reallestate.com

Here we go again... another media proclamation - The Housing Crisis is OVER!

Read all about it HERE

A quick excerpt from the article:

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. - CYRIL MOULLE-BERTEAUX

I said it before and I will say it again - REAL ESTATE ACTIVITY is LOCAL!!!!  

So my questions are?

1. Do we have a housing crisis now?  If so, from whose perspective buyer's or seller's?
2. And, do you believe that Cyril Moulle-Bereaux's opinion about the market bottoming out applicable to Pasadena real estate?

I'd love to hear your thoughts.

You are ready to buy your Pasadena home and you sit down to write a purchase offer with your agent.  Prior to coming to the office, your Pasadena Real Estate Agent will ask you to bring your check book. 

Hmmm...  Why?  The offer has not even been accepted yet, so what is up with the check book?

The reason is simple:  Your Pasadena home seller will expect to see an earnest money deposit along with your home purchase offer to prove that you are a serious home buyer.

What you need to know about the earnest money deposit:

• It is usually 3% of home purchase offer price in Pasadena, California.  All California purchase contracts have a Liquidated Damages clause which states that if the buyer defaults on the contract, the home seller can keep up to 3% of purchase price.  Hence, the sellers real estate agent will look for a 3% deposit from a serious home buyer. 
• Liquidated Damages clause needs to be initialed by both home buyer and home seller to take effect and it is customary in Pasadena real estate market to have that clause be part of the home purchase contract.  Ill write a separate post regarding why you, a home buyer, should initial that clause.
• Earnest Money deposits are usually tied to the contracts contingency periods.  Contingency periods simply refer to time frames for performing specific tasks like getting a home purchase loan. 
• Once your purchase offer is accepted by the seller, your earnest money deposit needs to be deposited into escrow within 3 calendar days.  This is a standard and expected time frame but can be changed within the contract.
• The earnest money deposit is applied towards the down payment of your home and any incurred expenses.

What do you need to do as a buyer NOT to lose your deposit?

• Work with a reputable and experienced Pasadena Real Estate Agent that understands California Purchase Real Estate Contracts inside and out.
• Get a list of dates for contingency removal deadlines specifically
  • Verification of Funds
  • Loan Approval
  • Appraisal
  • Physical Inspection
  • Home Owner Association review and approval of docs like rules & regulations, CC&Rs, budget and minutes for condos and townhomes
• Ensure that you have received and reviewed fully home seller's Transfer Disclosure Statement (TDS) and Seller's Property Questionnaire and all additional home seller disclosures.
• Due your due diligence within your Physical Inspection contingency period.  Drive around the area.  Talk with neighbors.  Go to the city hall to pull permits and ask questions about possible additions or changes to the house that you are considering making.  Get a sewer line inspection.  Get a roof inspection or a mold inspection if it is recommended by your home inspector or if you have concerns about these issues.  Investigate, investigate, investigate!

Understand that once you release your contractual contingencies, you are legally binding yourself to purchasing that home.  Should you change your mind later, your earnest money deposit will be in jeopardy.

As most of my loyal readers know, I love Monterey Hills.  I used to live in Monterey Hills.  My parents still live in Monterey Hills.  And, what most of you do not know is that I started my real estate career, sort of, in Monterey Hills.  I used to show the Monterey Hills condo models when Huntington Terrace and Hudson Terrace was first built back in the early 80s.  I was, yes, a hostess.  :-)

So when you are ready to buy your first condo in Monterey Hills what should you look for?

1. Amenities:  each Monterey Hills condo complex has different amenities and its own history.  Almost all have pools and spa, but some Monterey Hills condo complexes have a recreation room, steam room, sauna, gym and paddle tennis courts.
2. Floor plan:  In my experience, Monterey Hills has mostly 2 bedroom condos.  Of course, there are 1 bedrooms and 2 plus den (which by the way some sellers try to convert and claim as 3 bedrooms - make sure to check the tax records) Mostly 2 bedroom floor plans come in two types:  bedrooms on either side of the living room or together, on one side.  Whats important to you?  Do you have a small baby that youd want in a bedroom next to you?  Or would you like more privacy and have the 2nd bedroom a bit away from you?
3. Floor Location of the condo:  what is your preference?  Do you like to be on the 1st, 2nd or 3rd floor?  Pricing wise, 3rd floor condos are a bit more expensive since you do not have anyone living above you.  2nd floor condos are least expensive since you have someone living above and below you.  1st floor condos can be as expensive as 3rd floor is they have large patios.  Some of the Monterey Hills complexes have 1st floor condos with huge patios.
4. Location of the condo within the complex:  corner units are a bit more in demand.  They usually have only one side neighbor, extra windows and better views.
5. Architecture:  some of the older Monterey Hills complexes have more traditional floor plans - clean lines and angles, four wall rooms, etc.  The newer ones have more angles in the rooms - a bit more challenging to decorate, but very lovely nonetheless.
6. Rules and Regulations:  What are the quiet hours?  Are pets allowed?  Can you barbecue on your patio?  Whats important to you?  Review the Rules and Regulations carefully before buying your Monterey Hills condo.
7. History of the complex:  some of the Monterey Hills condo complexes have been modified and rebuilt over the years.  Some have better reputations and are just more in demand.
8. HOA Dues:  HOA stands for Home Owners Association Dues.  Each complex has their own dues.  Most are based on the amenities and services provided like Post Security.  For the most part, HOA dues are based on square footage of your unit.
9. Management of the complex:  as you walk around each Monterey Hills complex, you will have a pretty good feel about how this condo complex is managed.  Does it look like it has some deferred maintenance?  Is the landscaping taken care of?  Is pool patio furniture clean and in good shape? Is the gym equipment up to date and the gym looks clean over all?
10. Financial Health of the complex:  Always ask to see the financial statements of the complex.  Do they have a lot of money in reserves?  Is the Association anticipating any special assessments?  What are the HOA dues being spent on?  Is there a trend of specific repairs that might affect your HOA dues in the future.

READ ALSO:  Monterey Hills Neighborhood Overview

Make sure to hire a real estate agent that is familiar with the history of Monterey Hills and can guide you through the process of buying in the Monterey Hills.

If I can be of any assistance with your Monterey Hills Real Estate needs, please do not hesitate to email me at Irina@Irina4RealEstate.com or call me at  (626)627-7107 .  Thank you!

I am not chicken little, but lets face it, the Pasadena real estate market has been pretty chaotic over the last several months.

We have a lot of different parties to thank for this activity, but mainly, I would say that for the most part, the lenders have given us this lovely gift.

After pushing ridiculously, whats the word that was used - oh yeah - ˜creative financing products on unsuspecting Pasadena home buyers, Pasadena home sellers AND buyers are now feeling the effects.

So where is the Pasadena Real Estate Market overall now?

Looking at Altos Research statistics, there are currently 474 single family homes on the market in Pasadena California.  AThese homes have been on the market for an average of 117 days.  Half of these listings have entered the Pasadena real estate market in the last 77 days.

As you can see, the inventory of Pasadena single family homes is increasing drammatically and the median price is on the down swing.  Price per square foot has moved from over $500 per square foot to $441 per square foot.

So here we are, going from the lenders giving anyone who is breathing a loan, to going to the other extreme and tightening the requirement to the nth degree.

Mortgage lenders now require:

• A down payment to purchase a home - preferrably a minimum 10% down, most lenders want to see 20% down.
• Minimum credit score of 680.
• Debt ratios of 28/36% - a DEBT RATIO is the allowable percentage of debt in relationship to a borrowers monthly income, used to determine if the borrower is qualified for mortgage loans.

So, if you are thinking of selling your Pasadena home, you need to be creative in making it easier for the buyers to qualify for a mortgage.  This, of course, in addition to correct pricing and marketing strategy for the sale of your home.

What can Pasadena sellers do to help buyers qualify for a loan?

• Most banks and mortgage lenders allow sellers to pay up to 6% of buyers closing costs.
• Instead of price reductions, consider helping the buyer with offering cash towards loan buy downs - stay tuned for a series of posts on the different types of buy downs available.  A mortgage buy down is simply a subsidy paid to the bank to reduce buyers interest rate.  This, in turn, lowers the buyers monthly payment and makes the home more affordable to the buyer.  It also makes it easier for the buyer to qualify for the loan.
• Consider a combination of cash towards closing costs and buying down the buyers interest rate.
• Make sure that your Pasadena home buyers have a back up lender or work with a local, trusted professional that is recommended by your Pasadena real estate agent.

 READ MORE:  What are Buy Down Programs

If I can be of any assistance with your Pasadena Real Estate needs, please do not hesitate to email me at Irina@Irina4RealEstate.com or call me at  (626)627-7107 .  Thank you!

How much will I pay in property taxes when I buy my home in Pasadena?  How are property taxes calculated on an existing Pasadena home?

I've been getting a lot of property tax questions lately and decided to write a quick post about how consumers are affected when they buy a home in Pasadena or surrounding cities.

In 1978, California voters passed Proposition 13.  As a result, the Los Angeles County Assessor can not exceed more than 1% of a property's maximum assessed value plus any additional bonds and other city specific taxes.

What this means to the Pasadena home buyer is that when you purchase your Pasadena home, the assessor will base your home's property tax bill on approximately 1.2% of the price that you paid for it.  1% for Los Angeles County and a little less than .2% for city bonds, taxes, ets.

For example, if you paid $500,000 for your Pasadena home expect your annual property tax bill to be around $6,000 or $500 per month.

Ongoing, the Assessor will raise your property tax bill due to annual inflation which can not exceed 2%.  Going back to our previous example:

Year 1 - Pasadena Property Tax Bill = $6,000 appx. annually

Year 2 - Pasadena Property Tax Bill = $6,120 appx. adjusted for inflation

Year 3 - Pasadena Property Tax Bill = $6,242 appx. adjusted for inflation

And so on...

READ MORE:  Proposition 8 and how it helps Pasadena owners save property taxes

There are some exemptions that are available to Pasadena homeowners that you should be aware of:

1. The most common is the Homeowners' Exemption:  if your Pasadena home is your principal place of residence (Assessor always looks at January 1st, i.e. if you are living in your home as a principal residence on Jan. 1) you may apply for an exemption of $7,000 from your assessed value.  The assessor made it pretty easy for home owners and will automatically send an exemption application.  Please beware of companies out there that will send you an official looking document asking you to pay for them to file the exemption form on your behalf.  They are out to take advantage of you.   This exemption will save you, the homeowner, approximately $70 per year on taxes.  Once you file this exemption, you do not need to refile it. 
2. Veterans' Exemption:  If you are a veteran or a surviving spouse of an eligible veteran, you may apply for a $4,000 exemption applied to the assessed value.  You do not need to reside on the property for this exemption.  There are asset requirements that apply.  Please call Assessor's office for more information on their guidelines at 213.974.3399.  This exemption must be filed each year.
3. Disabled Veteran's Exemption:  If you are a disabled veteran who is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service, you may be eligible for an exemption of up to $150,000 of the assessed value of your home.

Please feel free to email me with additional questions regarding property taxes or use the comment section to ask them.  Hope you find this information useful. 

If I can be of any assistance with your Pasadena Real Estate needs, please do not hesitate to email me at Irina@Irina4RealEstate.com or call me at (626)627-7107.  Thank you!

Pasadena, CA - there's a lot of talk about "short sales" and foreclosures lately.  It's in the news.  Books are being published about short sales.  There are even radio commercials talking about short sales.

I think most people have a pretty good idea what a foreclosure is, but there's still quite a bit of confusion on what a short sale is.

A short sale simply means that a bank is willing to accept less money than what the owner owes on the property because the house can not sell at a price high enough to cover the mortgage fully. 

Here is a quick example:

Home was purchased for $500,000

1st and 2nd Trust Deed (mortgage) is $495,000

House is now worth $450,000

Bank agrees to accept $450,000 less expenses in leu of the full amount owed $495,000

Why would a bank agree to accept less than what is owed? 

To avoid the costs and a lengthy process of foreclosure and further loss of home value.

Why would a Pasadena seller consider putting their Pasadena home on the market as a short sale?

In essence, you sell the house for whatever you can get and the lender agrees not to go after you for the deficit that is owed on the property.  Even though your credit might be affected, it will not be to the same extent as a foreclosure. 

Also the Mortgage Forgiveness Debt Relief Act of 2007 amends the IRS code to exclude from gross income amounts attributable to a discharge of the debt incurred to acquire a principal residence.

A short sale doesn't mean that it's a fast sale. 

It's actually more of a long sale meaning it takes on average 3 to 5 months (depending on the bank) to close escrow on a short sale.

Why shoud Pasadena buyers consider short sales if it takes such a long time?

Simply said -  to get a better deal. 

There are not too many short sales homes available at this time in Pasadena.  The Pasadena homes that are there are certainly worth exploring.

If I can be of any assistance with your Pasadena Real Estate needs, please do not hesitate to email me at Irina@Irina4RealEstate.com or call me at (626)627-7107.  Thank you!

Heres one of the best and comprehensive links to the local Pasadena CA websites and resources.

Please click on the topic that interests you and you will be rerouted to the appropriate site.  Please call me at 626.204.3340 or email me at Irina@Irina4RealEstate.com should you need additional information or you would like me to add additional links/resources. 

Hope this post will provide you with the information you need whether you are relocating to Pasadena, CA or have enjoyed living here for awhile. 

City of Pasadena Website

City of Pasadena Departments

City of Pasadena Government Offices

City Services

Pasadena Heritage

Pasadena History

Bungallow Heaven

Pasadena Rose Bowl

Pasadena Playhouse

Pasadena Public Library

Pasadena Kids Klub

Pasadena Tournament of Roses

Local Restaurants

Local Public Schools

Pasadena City College

California School of Culinary Arts

California Institute of Technology

Pasadena Property Search

Do you have a rental property in Pasadena, CA where the tenant moved out and youre getting to ready to lease it again? 

Are you in the process of selling your home or condo? 

Maybe, you are a Pasadena home buyer or renter getting ready to move into your new Pasadena home.

If so, did you know that prior to moving in, you have to comply with the city ordinance requiring an occupancy inspection? 

Standarly, its common practice in Pasadena, California,  the seller or the landlord will file an application with the city to order an inspection and will pay the necessary fees. 

Heres what the City of Pasadena says:

Occupancy Inspection Program

The Occupancy Inspection Program is designed to ensure the quality and maintenance of the Citys single family homes, duplexes, and condominiums. This is achieved by conducting inspections of these dwelling units at the time of sale or change of occupancy. If, at the time of inspection, a dwelling unit is found to be in violation of the Housing Code, the property owner is notified of the violations and given a reasonable time to correct them. Upon correction of the violations, a Certificate of Occupancy is issued and remains valid until the dwelling unit is again sold or rented.

Typical items checked during an Occupancy Inspection include the electrical, plumbing, and heating systems, structural hazards, and other health and safety items. In addition, Zoning concerns such as illegal building additions and the conversion of garages, attics, and basements to dwelling spaces are also checked.

The Occupancy Inspection Program is administered by the Code Compliance Section of the Planning and Development Department, located in the Pasadena Permit Center at 175 N. Garfield Ave.

Application and fee schedule are available at:

Permit Center
Hale Building, 175 N. Garfield Avenue
1st Floor, Window #1

For further information, please call  (626) 744-4633 

Are you 55 or older and live and own real estate in Pasadena, CA or Los Angeles County*?

If so, you can save thousands of dollars each year in your home property taxes. 

How?  Proposition 60/90!

What is it?  How does it work?

This proposition was passed to provide tax relief to senior citizens who sell their existing home and purchase a replacement residence worth the same or less than the original.

In essence, if you are ready to sell your home and would like to down size into something smaller, maybe a condo or just a less expensive house, this proposition will carry over your current assessed real estate tax value.

For example,

     Your existing home is worth $750,000. 

     You bought it for $200,000.

     You are probably paying somewhere around $2,500 a year in Real Estate Taxes.

NOW, you are ready to downsize and are looking to buy a home for about $600,000.  Normally, your real estate taxes will be calculated based on the purchase price of $600,000.  Real Estate property taxes run about 1.2% of the sales price in Los Angeles county.  This would mean that your taxes would now be about $7,200.  OUCH!!!

This proposition allows you to carry over your existing tax base of $2,500.  Saving you almost $5,000 each year!

There are certain criteria that you must meet:

• The seller of the original residence, or spouse who resides with the seller, must be at least 55 years of age at the time of the sale AND¦
• The replacement home must be of EQUAL or LESS value than the home sol, AND
• The replacement home must be either in the same county or another participating county.

That is all!!!

*The following counties participate in this program:  Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura.

This is as simple as filling out a form.  BUT, it has to be done within a certain window of time. 

Please do not hesitate to contact me for futher information on this proposition or with any real estate related question.

Please take advantage of this wonderful opportunity! Do NOT throw your money away!

I hear that question all the time.

Do you truly care about whats going on in Phoenix, if you live in Pasadena, CA?  Do you care about how the market is doing in Pasadena, if you live in San Marino, CA?

As a real estate broker, the answer is yes¦ I care.  As a seller or buyer, I couldnt care less.

I just sold my house.  It is located in San Gabriel, but has San Marino schools.  The first thing I did when I was thinking of selling my house, is to learn what was going on on my street.  How many homes were on the market now?  Who will be my competition?

I wanted to know which 7 to 10 homes will I be competing against.  I got into the car and visited all the homes.  I knew how much they were priced at, how long theyve been on the market and what kind of upgrades they had.

Now I knew my market and could price my home correctly to sell.

The market in my mind was the 1/4 mile radius around my home, preferably homes with San Marino schools. 

This local market research, along with getting prepared by following a few simple steps like:

• Getting a Physical Inspection - which allowed me to anticipate issues up front and address them prior to listing my home.
• Curbside appeal - the exterior was painted and a landscape artist was invited to stage the front and side of the home.
• Staging - my stager extraordinaire, Nickie Rothwell of Staged2Sell, used both my existing furniture and brought in additional furniture and accessories to make the home stand out.
• Marketing - well¦ thats my forte - heres a quick sample of the personal home website, Realtor.com Featured Homes, numerous blogging platforms, emails to top agents in the neighborhood and targeted buyer mailings, amongst other things.

¦ helped me sell my San Gabriel home in less than a week. 

So¦ How is YOUR local market doing?

You found the right home in Pasadena and are so excited!!!  All you have to do is just get through the inspections period.

There are three main contngencies that stand between you and your Pasadena home.  A contingency is a condition that needs to be met prior to going forward with the escrow.  They are:

1.  You need to get approved for a loan.

2.  The property needs to appraise at its selling price.

3.  You need to perform your due diligence and get a physical inspection.  This includes going to the city to review permits and to ask any questions that might be of a concern to you.  Getting a physical inspector to go out to do a general inspection of the property.  Checking the local area, looking at the schools, etc.

If I may make a suggestion, as youre checking the neighborhood out, hiring an inspector for your general overview of the home, include a sewer inspection as one of your items to order and review.

The reason for this suggestion is simple, a physical inspector can give you a pretty good feel for the house, the Air Conditioning system, structure and can point you towards getting additional inspections if something is amiss.  What they can not do is get into the pipes and make sure that they look okay.

A sewer inspection runs about $225 in the Pasadena area.  A plumber comes out with a special camera and runs it through the piping all the way to the sewer lines.  You can see exactly what they do on a screen and will get a DVD with their findings.  Its not much to spend considering that any issues uncovered could potentially cause you thousands of dollars.

I learned this the hard way, one of my sellers found out that their guest house was connected to a septic tank instead of city sewer lines through this inspection.  My sellers did NOT know this.  The city signed off on all plumbing for the guest house with no notation about the septic tank.  The city did not know about the septic tank also.  The buyer probably would not have known about this as well unless something went wrong down the road.

Its a small price to pay for peace of mind.

If you would like some references to sewer line inspection companies, please email me at Irina@Irina4RealEstate.com or give me a call at 626.204.3340.

Good luck with the purchase of your home!

I was reading Jana Coles post Technology, Yes, but always Verify and it occurred to me how many Pasadena agents still continue to fax over offers when representing their buyers.

When I started my career in real estate, I was taught to always present my buyers offer in person to the Listing Agent.  Unfortunately, over the last several years, with the market in Pasadena, CA going through the roof, many Listing Agents would not allow presentation of the offer in person.  Especially, with multiple offers, where we sometimes get 15 to 20 offers at a time, it would make going through the presentations very time consuming.

Since I represent many sellers in Pasadena and surrounding cities, I have always been amazed by the lack of care that Buyers Agents show to their clients. 

Half the time, an offer would arrive without even a phone call from the agent. 

The other half, the agent would call me, ask most, if not all of the right questions, and then knowing that it is a mutliple offer situation, still submit a very badly and sloppily written offer. 

In any case, this post is not about how to write an offer.  Its about how to SUBMIT an offer.

Now, to me, this is common sensical.  When I represent buyers, I have to ensure that I not only sell my buyers to the seller, but I sell myself to the other agent. 

At a minimum, this is what I would do:

Prior to writing the Offer:

• Call the Listing Agent to introduce myself and ask about the property:  Is the home still available?  Did any offers come in?  When will the offers be reviewed?  What is the seller looking for in terms of escrow length?  Where is the seller going to?  Do they have a new home lined up?  Are there certain providers that the seller and the agent are more comfortable working with or already have a relationship with?  I always ask for any additional information that the Listing Agent thinks I should have.
• Get together with my buyer to strategize on the best way to structure the offer.  Agents, please listen carefully, the offer is NOT ONLY ABOUT THE PRICE!  Terms are very, very important!  How long should the contingency period be?  Escrow period?  Do we need a loan or appraisal contingency?  How do we come up with the price?  How much does my buyer want the property?  THERE ARE SO MANY DIFFERENT WAYS TO MAKE MY BUYERS OFFER STAND OUT FROM THE REST OF THE PACK!

Okay the offer is written, now what?

1. I always recommend for the buyer to write an introduction letter to the seller.  In this letter, the buyer has an opportunity to talk about themselves and why they like and want to live in the house.  REMEMBER, A LOT OF SELLERS ARE ATTACHED TO THEIR HOME.  They have many, many memories there.  They want to have someone buy the home who will continue to love it as they did.  And, if you get a seller that doesnt really care about who the buyer is, the letter will not hurt our position.
2. I write a cover letter to the agent summarizing all the critical terms of the contract:  price, down payment, earnest money deposit, escrow term, contingency periods, p