Does the Buyer or Seller Pay the Buyer's Agent?

Does the Buyer or Seller Pay the Buyer's Agent? What is the 'norm' in Santa Cruz and Monterey Counties for Buyer's Agent?

Answer:  In a traditional real estate transaction, the Seller has chosen to work with a Seller’s Agent. The Seller’s Agent normally markets the home in several different ways. One way the property is marketed is through the Multiple Listing Service.  In the Multiple Listing Service (MLS), the Seller’s Agent agrees to pay a Buyer’s Agent a determined amount.  In short, the Seller pays the Seller’s Agent and the Seller’s Agent pays the Buyer’s Agent.  (a.k.a. Buyers work with Buyer’s Agents for FREE!) If I represent you in a transaction with an Unrepresented Seller (For Sale By Owner), my commission will be negotiated prior to any contract. In the past, I have found that For Sale By Owner’s do not have a problem paying a commission to a Buyer’s Agent. This is a card I received from a For Sale By Owner who paid my commission.

Dear Terri - Josh and I want to thank you regarding your help with our recent house sale to Michael and Mary. We certainly appreciate your willingness to work with “by owner” sellers. We felt that the transaction went very smoothly and we are delighted to have Michael and Mary in the house. Thanks again for your help, Terri! Hope this finds you well. Sincerely, Kathy and Josh

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Is a Foreclosure a Good Deal? Foreclosure 101 in Santa Cruz County

Is a Foreclosure a Good Deal? Foreclosure 101 in Santa Cruz County

Have you ever wanted to buy a foreclosure because you thought it would be a great deal?

Foreclosure is a process in which the owner of the home was not able to make the monthly mortgage.  After several missed payments, the bank who holds the 

mortgage attempts to redeem the mortgage amount through a sale at the courthouse steps. (NOTE: This is a Reader’s Digest version of the process.)

At the courthouse steps, if no buyer comes forward to pay the minimum amount, the bank becomes the proud new owner of a home (a.k.a. REO – Real Estate Owned).  BUT… banks do not want to be the proud new owners of homes.  They would rather have their money available to lend to others.

THUS, the bank chooses a real estate agent to represent the bank.  The real estate agent markets the home in the local MLS (Multiple Listing System) just like any other property.  And that is why you may be getting automatic notifications from your real estate agent on Foreclosed properties.  (NOTE: If you are not currently getting notified of Foreclosed properties, contact me and I will set you up.)

IS IT A DEAL or is it not a deal?  And how does that affect you as the buyer?

Most buyers think that they will “save lots of money” by buying a REO Foreclosure.  Sometimes that works and sometimes that does not.  Most of the time, a REO Foreclosure is priced at the market price or slightly below market value.  The bank is trying to get the property sold, and yet because of the actual cost in foreclosing on a property, and the mortgage balance that was owed by the seller, the bank normally is not willing to “give” the property away at a hugely discounted sales price.

From time to time, there are “deals” to be had and a wise buyer will be ready when the opportunity presents itself. 

These are a few things to consider before making an offer on a REO Foreclosure.

#1 Make sure you are a good buyer for a foreclosed property. Most purchases of foreclosed properties go beyond that of a ‘normal’ time period for a purchase meaning, instead of a 30 day escrow time, it may be 60 days or more because you are dealing with a bank.  If time is of the essence, you might not want to consider a foreclosure.  (NOTE: There are times that a REO Foreclosure actually has a normal escrow time. Make sure and discuss this with your agent.)

#2 Most banks are exempt from disclosures about the property, primarily, because they never lived in the property and really do not know much.  You will need to work closely with your agent and do some investigation on your own.  Things to investigate would be the property history, similar homes that have sold in the area, talk to the neighbors, etc.

#3 Typically, REO banks do not like paying for repairs.  They prefer you purchase the home in an “As-Is” condition. That is one less thing they have to be concerned with. You still may have an inspection, and still may ask for the bank to do some repairs. However, not asking the bank for repairs may give you a bit more leverage in negotiating the price.

So, are you still a good candidate to purchase a REO Foreclosure? 

If so, then be the best buyer you can be. Get pre-approved from a reputable lender. Be ready to act. And reap the rewards.

Click for a list of Watsonville Foreclosures, Aptos Foreclosures, Santa Cruz Foreclosures or search www.GreatMontereyBayHomes.info.

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Buying a Beachfront Home in Santa Cruz and Monterey Counties

Buying a Beachfront Home in Santa Cruz & Monterey Counties

Beachfront living is an exciting and relaxing lifestyle.For many homeowners, a beachfront home represents one of the highest level of luxury.  If you have dreamed of owning a beachfront home to use as a vacation home or a full-time residence, now is the time to buy.

Beachfront Communities

La Selva Beach, Rio Del Mar, Seascape, Seacliff, Pajaro Dunes and the surrounding areas are small, friendly communities that offer amenities for everyone. A quick jog down on the sand, basking in the sun, surfing, nightlife in Santa Cruz and Capitola makes this area perfect for singles, families, retirees, vacation home owners and investors looking to buy real estate.  The area also offers great shopping, fine dining and many cultural events. 

Are you looking for that million-dollar view or the ease of beach access? Regardless, Monterey Bay communities are the right choice.  Choose from beach houses, to single family residences, to condos. The year-round Mediterranean is idyllic for full-time and part-time residents.

Contact me when you are ready to find your perfect Beachfront Home.

Under $1,000,000

Luxury Homes $1,000,000+

Visit My Blog Santa Cruz and Monterey Counties Real Estate 

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Santa Cruz & Monterey Counties Housing Stats - Hot Off the Press

Santa Cruz and Monterey Counties Housing Stats are here, hot off the press.  (Includes Santa Cruz, Aptos, Watsonville, La Selva Beach)

As normal, the local housing market appears to be going through the seasonal slow down.  The median prices are still better than 2012 for both the single family residence and condos/townhomes. However, the market statistics seem to relay that the single family market is softening.  

Compared to 2012, Monterey County is showing 17% less inventory.  Santa Cruz is down 7%. Days on market are less than 2012 as well.  

Due to the government shut down, buyers are choosing lenders with the capacity to approve and fund loans without government approval.  If you need a lender that is able to fund without government approval, contact me for a list of highly recommended local lenders.

What does that mean to you as a Seller?  We need you now! Inventory is low. If you were not able to sell in the past few years due to owing more money than the market priced your home, call me and get a Highest Price Analysis.  Many sellers find that the market has increased enough that they now have the equity to sell and make money.

What does that mean to you as a Buyer?  The prices are stabilizing and the interest rates are still low.  There are not many homes to choose between, but the multiple offer buying frenzy has slowed down dramatically so you can buy with a calmness that was not there before.  Call and get my free eBook on "Tips for the Smart Homebuyer."

For additional statistics, contact me. 

Search for homes in Santa Cruz and Monterey Counties here