Most post home buyer studies indicate consumers are generally happy with their real estate agent and would use them again, if, if, if only they could remember their name. Quick, what was the name of your agent?

Buying or selling real estate, or need help? Call Pasadena Deena @ 626-432-4615

Recall and name recognition are two key components to the success of the real estate agent. Referrals which are critical in our industry are highly dependent upon your clients, your sphere of influence and even a casual acquaintance remembering your name.

Pasadena, South Pasadena, & Altadena

If you are in the banking business, wouldn’t it be great to have the name “Cash”? And how about your friend “Joe” that works at Starbucks. Don’t forget Dr. Molar, the dentist. And if real estate is your profession and you sell homes in Altadena, Pasadena & South Pasadena, what better name to have than Deena!

Deena Willis is a real estate broker with RE/MAX Property Concierge in South Pasadena. She makes her home in Pasadena and her latest home sale was just last week in Altadena.

Need to buy or sell in The Dena? Who you gonna call? Pasadena Deena.

Not only does she have one of the best names in the business, she has an excellent ability to connect with her clients and find them that special home. Home sellers quickly appreciate her comprehension of how to market and sell their home on the internet. When 85% of home buyers begin their search online, shouldn’t your agent know how to find them? She does.

Make your next real estate transaction enjoyable and memorable, exciting and fun. Call Pasadena Deena today at 626-432-4615.

Like everything else, buying a Short Sale has its pros and cons.

Don't Overlook Short Sales

Banks typically may limit the amount of the termite work that needs to be completed and many times they will refuse to pay for a home warranty. You may also find that since it has been listed as a Short Sale, many buyers will avoid it for various reasons.

These include:

1. uncertainty – no one knows if the bank will accept the offer
2. time – approval from the bank can take a few months. Shorter response times are more common, but it can depend on other factors. Have the sellers submitted all of their financial information beforehand or does the bank require it with the purchase offer?
3. lenders – how many lenders have to approve the sale? If more than one, is it the same lender or different banks?
4. the agents involved – are they familiar with the procedure and have they communicated to and educated their client on the proess? Patience is a virtue.
5. your mortgage – since a buyers contingency period begins after written acceptance from the bank, you may not be able to lock in your loan rate for several weeks.

There may also be a misconception that Short Sales are only available “For Sale” in the lower priced homes. As you can see from the homes displayed below, they are available in all price ranges.

To see more Short Sales currently For Sale, click the following links:
Pasadena Short Sales
South Pasadena Short Sales
Altadena Short Sales

Pasadena Short Sales Currently For Sale

Search all Homes for Sale in Pasadena, South Pasadena, Altadena and all surrounding areas

Looking for a single family home with 3 beds and 2 baths with 1600 square feet in the Pasadena zip code of 91104?

Want to keep it between $600,000 and $700,000 square feet? Very easy to set up.
How about a condo in South Pasadena between $450,000 and $500,000? Want to try and buy below market and think you may be interested in a bank owned home in Altadena? Its all here for you.

The search results below are from a search I created for pre-foreclosures and bank owned homes in the Pasadena zip codes of 91104 and 91107. Here is how you can customize and create your very own search:

1. In the upper right hand sidebar of www.up2daterealestate.com you see “Home Search”, click it. It is just below the logo on this page.
2. The search screen pops up with menu options on the left.
3. Enter a city or zip code.
4. Click in the box below and enter a price or move the sliders.
5. The next options will limit the properties you will see. Unless you are very specific, don’t be too precise with your parameters.
6. Property Types – enter single family, condo, etc.
7. Foreclosures – tab will show you bank owned or pre-foreclosures and short sale properties.
8. Click “SEARCH”
9. Properties that meet the guidelines and criteria you have selected will now populate on the screen with an easy to read map interface.
10. To see complete listing information and more pictures, click the picture of each listing.

Set up your account and elect either email or RSS updates and have your home search come to you. When you find something you like, give us a call. We would appreciate the opportunity to help you find your next home.

You can also bookmark this page. This search will remain intact.

Make sure you read and understand your real estate contract

First of all, as a buyer you typically have a 17 day contingency period (which is negotiable). You may have satisfied all of your lender requests and provided all of the documentation that your lender needs to process and approve your loan. The appraisal may have been completed and everything seems in order. However there is a potential red flag out there which you need to be aware of.

Beware the Red Flag

Before you sign off on your contingencies and potentially put your deposit at risk, ask your lender if they have received the homeowner certification. If not, you may want to discuss your options with your agent. Due to the economic situation we are in, some associations are finding that they have an unusually high number of delinquent dues. Why is this important? If you sign off on your contingencies and then find out a week before closing that your lender has just received a statement showing an unacceptable level of uncollected HOA fees, your loan may be in jeopardy. There are Fannie Mae underwriting guidelines that lenders adhere to which state the number of allowable units past due.

You definitely don’t want to assume your loan is on tract only to be derailed at the last minute.

Housing programs available through the City include rental and home ownership. For the purposes of this article we will look at programs available to those wishing to become homeowners. For those people who do meet the requirements, a few caveats also come along. These may or may not change depending upon the program you are applying for:

1. Eligibility – restrictions are imposed on who can and cannot qualify.
2. Owner Occupied – if you are going to be a recipient of the program, you must also live in the unit. Forget the “would be” landlords aspiring to let the property and collect a rental check.
3. Income Limits – due to the generosity and intent of the program, income limits have been placed on the applicants wishing to apply for the aid. These income limits are determined for low to medium income households as determined by a formula using the median income for LA County as determined by the U.S. Department of Housing and Development. Income limits vary by the number of people in a household.
4. Restrictions on Selling – the City may receive a “first right of refusal” to purchase the property or may share in the increased equity, once you decide its time to move on.
5. Increasing Income – rising income may impair your ability for ongoing participation in the program

As with anything, a critical implied component is timing. Timing is important since federal, state and local money is the source of funds. These programs will usually have a predetermined annual budget. In other words, you need to know when the money becomes available and take the necessary steps towards application. Once the money is gone, you will more than likely be waiting until next year.

Down Payment Assistance

Known as the Homeownership Opportunity Program, this option is available as long as the purchase price does not exceed $425,000 and offers down payment assistance in the form of a second trust deed up to $200,000 with a 45 year term. To sweeten the deal, interest and principal for the first 5 years are waived. Plus, the interest on the second trust deed may be as low as 1.5%. A purchaser has to make a minimum of a 3% down payment which can also be a gift and must be a first-time homebuyer. The critical factor is your ability to meet the qualification terms of the first loan. Also participants have to attend a special homebuyer education class.

Pasadena Inclusionary Housing

As you drive through town slowing down at the construction zones, you probably did not realize that some of those units being constructed are reserved for Low to Moderate Income Households as Affordable Housing. Before the City of Pasadena agrees to green light new development, the Developer has agreed to set aside 15% of the available units for this special program. Priority is given to eligible households that live and work in the City of Pasadena. I should also preface this paragraph by saying that other options are available to Developers if they choose not to set aside the required ratio of mandated units. They may offer a payment In-Lieu fee, may build other affordable housing off site, or may convey other land to the City. Each development project is different and may hinge on whether the developer was granted a density bonus as to the choice of action they pursue. Unlike the HOP (above), being a first time buyer is not a prerequisite for the program.

To find out what other programs are available as well as which projects may be participating, I would suggest checking with the City of Pasadena or working with a local Pasadena Real Estate Agent who can help you navigate the process.

Let’s take a closer look at the city of Pasadena.  There is a large inventory of homes available on the market today.  In Pasadena, experts estimate about 10 months worth.  The average selling cycle to sell a home often exceeds 100 days with selling prices  well below asking price sometimes up to or greater than 10%.  In addition, the number of home foreclosures & short sales is greater than in past years.  In all, it seems as though, today’s real estate market is prime to purchase a solid investment residential property in a desirable neighborhood at a reasonable price.

OK, let’s go on this hypothetical journey, you purchase an investment home.  Am I going to get a decent rental income?  Who am I going to rent it to?  Is there a demand for homes to rent?   All of these questions have different variables (i.e. size, location, available amenities in the home) that prohibit an absolute answer to them.  However, according to the MLS, the median monthly rental price in Pasadena for the past year (3/07-3/08), is $ 2200.  With the availability of numerous websites for potential renters, advertising a home to rent is easy, inexpensive and accessible to more people.  With the increase in foreclosures, there is and will be a rise in the number of people/families needing to rent.  Plus, these people will be renting long-term in order to save for a down payment towards a future home. 

So, did we hit the real estate trifecta?  No one knows for sure.  Take a closer look.  Do some research on the internet, meet with your local real estate agent and financial counselor to examine the numbers.  Who knows…in five years, you may be the one boasting of the great real estate investment.

There are several factors that can assure your success that if followed will help you begin to amass your real estate fortune:

1. Be Committed – realize that there are properties available below market value but they may be difficult to uncover. If a property is widely publicized, chances are everyone would know about it and it would not be a deal. Finding a seller that is highly motivated may take some time. Realize too, the chances of falling into a “deal” are highly unlikely. Doing this successfully will become a continuous pursuit.
2. Define What You Want – are you looking for investment property or a place to live? Are you looking to rent it or resell it? Your decision will affect the financing you obtain.
3. Reduce Your Expectations – accepting the fact that you are probably not going to find your dream home is important. Many times, distressed properties become distressed since owners have mentally removed themselves from the house and have no desire to continue to maintain it. They realize their time is short lived and the property may slip into a state of disrepair. Also, the number of properties to be snapped up at below market is generally less than what you will find if paying market price.
4. Secure Financing – money talks. It shows that you are serious and mean business. So many times I have seen sellers that will not accept or entertain offers below a certain set price. However, I have seen these same people go through a complete turnabout once someone presents then an offer in writing. Their entire mindset changes.
5. Explore Short Sales & Foreclosures – these are an excellent source of real estate priced below market. Many of these are published either through the public record or the Multiple Listing Service which is easily accessed on our web site. There are also many real estate related web sites that offer this information. The first offer will sometimes be accepted, contingent upon the approval of the bank. A bank may come back and ask for more money to reduce their loss. It will be up to you as your negotiating ability may be put to the test.
6. Stay Firm on Your Price – let your sellers or bank know that you just cannot go any higher on price. Having an understanding of the market with respect to how many houses are in the foreclosure stage, and how long are they taking to sell? Counterpoints like this will be a big benefit to you. Facts will outweigh opinions any day. Also realize that the bank or the home seller needs you more than you need them. Power is a wonderful thing when it is on your side.
7. Know all of the Costs – make sure you understand what the fix up costs will be. How much is PITI? (principal, interest, taxes , insurance) A property may look under priced until you do some analysis and realize that once you pay for the repairs, the rent may not cover the payment. Do not expect the seller to make any repairs. Factor all of this in to your offering price. How much are the rents in the area? You may make some mistakes once; chances are you will not make them twice.
8. Neighborhood is Key – you need to focus your search in areas that have a high concentration of foreclosures. The chances of finding a $400,000 fixer in Madison Heights are slim. So don’t bother to look, it’s just a waste of time. Focus your search where values are soft, where properties are staying on the market for months.
9. Develop a Brain Trust – get some people on your side who do all of these things on an everyday basis. Create relationships with a lender, a real estate agent, a contractor. Let them know you are serious and they can make money with you.
10. Know When to Walk – as with any negotiation there may come a time when this particular property looks less and less appealing. Don’t be afraid to ask for concessions. If the task becomes to overwhelming there are plenty of other properties out there. Just see item #1 above.

Real estate like any other investment can be very rewarding if you are willing to commit yourself and take the necessary steps to properly evaluate a property. Many people make money in a down market. Just make sure you understand the margin for error is much smaller.