Flea Markets, Dating and Househunting, too

I wrote in an earlier post about the similarities of midlife dating and finding the right home ( May 21, An Interesting Comparison.)
Now one of my favorite bloggers, Dating Goddess, has written a comparison of dating over 40 to garage sale shopping. She says that while some midlife daters are “brand new” — never married — most have been “used.” Some have been “gently used” meaning their last relationship(s) ended with a positive feeling, not having been mistreated. A house that is newly built may have some great features, but may also hide construction flaws. Sometimes, "gently used" is preferable.

Sometimes we find a gem at a garage sale that is slightly scratched or in need of minor repair. These are overlooked by others because they don’t want to take the time and care to polish the item to its former luster. She says that many midlife men are like this. They’ve had their hearts broken or were treated badly by a woman — or women — but with gentle care, you can repair those minor cracks or gently sand away those scars. They just need a little TLC to shine again. A house in need of cosmetic repair can be just right for you, too.

And then there are the faded treasures that need a lot of refurbishing to make the piece/man/ house sparkle once again. Some shoppers pass on these, knowing they don’t want to put in that kind of time and work with no guarantee that the end product will be as magnificent as they hope. Others love the challenge and jump at the opportunity to apply their skills to help make this prize glisten. This is the fixer-upper house that can be the true "find" for an ambitious buyer.

So, What finally happened?

Well, the dust has settled, and the Sold sign is up on my listing on South Mary in Sunnyvale. From the 24 offers, we chose to counter the top two.
Of the offers presented, there were 6 that came in at over a million dollars...list price was $885,000.
The successful bidder came back with a counter-counter offer at more than $200,000 over the list price, and including the free one month rent back that the seller wanted. SOLD! She is so happy to be moving closer to her children and grandchildren in Maryland.
This weekend, I'll send a mailing out to my "farm" area, just in case the homeowners aren't aware of just how hot their market is.

Presenting Multiple Offers

What started as "possibly a dozen offers" ended up as 24! I had offered the agents a chance to present their offers and talk a little about their clients in person, although I had a summary sheet waiting when they arrived, so things could move along a little more quickly.
My seller elected to be there, and the buyers' agents were able meet with us both.
I was surprised that six agents still elected to fax in their offers rather than take advantage of this opportunity. There were also several agents who hadn't bothered to read the MLS comments, and neglected to include the rent-back that the seller needed. We had completed all the inspections and made them and the disclosures available online, yet there were some who hadn't downloaded this important information.
Still, there were many very professional and personable Realtors, who presented themselves and their clients in a positive light, and wrote outstanding contracts. They also were aware of the "wow factor" of a letter from the buyers and photos of their families.

Schools Make All the Difference

My phone has been ringing off the hook today with calls from agents who have either written, or are about to write offers on my listing in Sunnyvale, which happens to be in the Cupertino School District. No matter what newspaper articles and television reporters might say to the contrary, this is still a hot market...but only if your house happens to be in the "right" location.
Surprisingly, in this instance, the house is on a wide street, South Mary Avenue. This hasn't deterred the buyers, who came through my weekend open houses in droves.
Tomorrow afternoon, we will look at a dozen or more offers on this well maintained home, and I think that the seller will be delighted with the outcome.

Is a Reverse Mortgage for You?

I've been hearing a lot more about reverse mortgages lately. This is probably because lenders are facing a tighter market and more restrictions on sub prime mortgages. A growing number of loan companies are targeting older homeowners, many of whom have a great deal of cash tied up in home equity. Even major nationwide lenders like Countrywide Financial have jumped on the bandwagon.
In a so-called "reverse" mortgage, the bank pays the older borrower a portion of the home equity in a lump sum or regular payments. The debt is paid off when the home eventually is sold, the borrower moves out, or when he dies. The number of these loans has almost doubled in the last year... over 85,000 were generated in 2006.
Most of these loans are federally insured, and fixed rate, but don't be fooled.
Because of the complexities of the loans, and the loan fees, which are usually extremely high, these loans should be seen as a last resort for seniors who need cash and want to stay in their homes.
John Rother of the AARP advises that you will often be better off selling if your only objective is getting money from the house, because of the high costs of these loans. Financial advisers also suggest selling the home and investing the proceeds, because you are often able to draw only around 50% of the home's equity after interest costs and a protective cushion for the lender.

New Loans for Veterans

I ran into Nancy Soule, a loan officer with GMAC Mortgage, at this week's Realtor Tour Meeting, and she was excited about a new opportunity for veterans. The unique feature of these below market loans is that the borrower need not be a first time home buyer.
The purchase must be a primary California residence, and the veteran may have served many years ago...Think how well this could work for a senior who wants to "move down" and take advantage of the Prop 60 and 90 Tax Base Relief Laws!
The terms are great: zero down payment, assumable financing, and a loan period of up to 40 years.
Important...This program expires in April of 2008!
For more information, contact Nancy at nancy@souleteam.com.

Online House Hunts

Our speaker at the Tour Meeting yesterday...Amos White from Baynet... brought up some interesting statistics. 87% of home buyers, nationwide, and 97% in the Bay Area start their search online. This doesn't mean that a good Realtor is obsolete. Most consumers see the Internet as an information source, not as a substitute for an agent.
Buyers say that the Internet provides a greater sense of control, particularly as real estate Websites become more consumer friendly. Agencies are putting more and more of their marketing budgets into Web advertising.
Why the Internet?
It's Fast. No need to wait for tomorrow's newspaper to check the new inventory or the open houses.
It's Convenient. You can log on to your computer at any time, and see listing information, still photos, and virtual tours.
It's Continually Updated. MLS information is regularly updated...daily, even hourly... unlike print advertising.