San Diego Cal Homes

http://www.sandiegojewishrealtor.com/

Monday, February 14, 2011

Real Estate – Fantasyland ? Reality ? Where is the answer?

Buyers and sellers call us all of the time. They want, or expect, that we can lead them to the secret hiding place for all of the best housing deals. Sellers for example, call and expect that we have the magic wand to sell their houses for prices well above market. Buyers, on the other hand, call us and want to know if we have a special inventory of low-priced, high value homes that we are reserving just for them. How interesting! It is amusing and yet challenging all at the same time. Let’s face it - the real estate market is just plain
whacky!

When sellers call us, we realize that they do not understand that, because of the multiple methods we employ, then attempting to estimate the best market value to sell their home, takes several hours of research and calculations. Usually, the seller calls with great anticipation in their voice, then nervously begins to articulate every cent they spent to upgrade or maintain their home – and then, afterwards, casually asks us … so what do you think is the best price I can get for my house? Most sellers have no clue as to what factors drive market pricing – and that’s ok, because we do, and we can help them.

Homeowners are driven by the emotional attachment associated with the purchase price they paid, as well as the loving care and attention given to their home - and not logic. Logic is rarely an element in home sales transactions. Here is what we encounter often. Many people who purchased their current homes in say 2005 to 2006, just at the point when the market peaked, have an expectation that they should be able to sell their homes for at the least the same price they paid. Well… we empathize with this – we really, really do. However, like it or not, the market has declined by 30% over the last few years, and therefore the likelihood of selling your home for that inflated price is… well… zero. This tells us that some sellers are either disillusioned that they can find the one uninformed buyer who is willing to overpay for their home, or maybe they are simply in denial that they will have to forfeit equity in exchange for moving onward with their goals and desires. Another group of sellers, are those who purchased their homes prior to the peak, and are willing to defer their selling decision for a year or so, with the expectation of a full market recovery, and then, scoop up those unrealized gains that they now wished they cashed out, at that peak period.

Some buyers are equally out of touch. It is not uncommon for buyers to search in the more prestigious neighborhoods, hunting for houses having the best features and benefits, expecting to snatch them up at ridiculous bargain prices. I mean come-on … we appreciate a good value as much as anyone, but buyers today are looking for turn-key, move in condition, ocean-view properties and at prices well under market value. Sure… there are fantastic values in the market today… but bargains … well, just think about the phrase “bargain basement”, and what images come to your mind. Yeah right! Generally, you get what you pay for, and we just hope that you try not to forget that!

The Real Estate market, conceptually is the same as the stock market. Buyers and sellers come together and exchange value for value via a broker. Some win and some lose. Here is something to consider. You see … many segments of the economy today are characterized as a buyer’s market, and Real Estate is no exception. Worse yet, is that consumers are concerned about the uncertain future of the economy, overall fiscal growth, jobs availability and security, and as such… consumer confidence is negatively impacted. Buyers today do not want to be caught purchasing a home with a looming threat of further declining home prices. So, to some degree, we have a hedge market, except that buyers are hedging on the downward side. Buyers are very well informed these days – so as a seller, we would not place much faith in finding the single moron willing to overpay. Buyers know that the market values have declined by 30%, and to hedge against any further near-term market declines, they are considering offers at 40% to 50% below recent peak-time prices. This represents a throwback to year 2002 price levels.

It is easier to understand at this point why many Real Estate experts are predicting a slow recovery. The gap representing the difference between the seller’s perception of value and that of the buyer, is not narrowing. Pardon us if it seems as though we have personified buyers and sellers as if they are specific personality types – not our intention. Remember, in most cases, you may be a seller in one transaction, and immediately thereafter, a buyer in the next transaction, so your position will easily waiver from selling at the highest, to buying at the lowest.

So … here is the point. If you are a seller, get in touch with the key issues that are driving your motivation to sell, and then evaluate the benefits to you and your family, to moving forward with your life’s goals and dreams. If you are a buyer, experience the gratification that you can achieve your goals and dreams for yourself and family, and stop waiting for the deal of a lifetime. Ironically, as consumers in the greatest nation in the world, our decisions are often paralyzed by having an over abundance of selections.

Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037

Main Office: (858) 357-9814

Sattelite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578

Home Office # 2: (858) 412-6082

Mobile: (858) 449-8250

http://www.sandiegojewishrealtor.com/

Thursday, January 20, 2011

Upgrading in a “Down (Real Estate) Market”

No! This is not a contradiction in terms.
On average I make between 400 to 500 phone calls each week in my attempts to prospect and to talk to people about buying or selling a home. One of the questions I try to ask… that is before the caller disconnects from the conversation, is, would you consider to upgrade to a larger and better home. The answer is almost always something like, “are you crazy, why would I consider to sell my house and to buy another house in this crappy market? Well… I understand the sensitivity for those people who have either lost absolute dollars, meaning, perhaps those people who bought at the peak of the market in 2004 / 2005, or even those people who have lost what they consider as unrealized gains.
But, all bitterness aside, think about it. If you were contemplating an upgrade a few years ago, now may be the time for you to benefit. First, loan rates are at a remarkable low. Second, let’s just say that your home was valued at $850,000 in 2005, and is now worth, oh, let’s say about $625,000. At the same time, let’s suppose that you were interested to upgrade into a home valued at $1,250,000 also in 2005. Well, the value of the upgraded home might be valued closer to $900,000 now. This example is typical of the San Diego Real Estate market. So, while your current home lost $225,000, your next dream home lost $350,000, or a benefit of $125,000, meaning more house for less money. Third, and since everyone hates the thought of paying their hard-earned money to taxes, think about the lesser property taxes to pay on that upgraded home that now costs less to purchase than several years ago. And fourth, with all things being relatively equal, and without regard to any re-financing on your current home or other special circumstances, then your monthly principal and interest payment may not be much more on the new home, than you are paying on your existing home. Check with your lender or financial advisor first. And finally, fifth, when the market does rebound, which everyone hopes and expects it will, you will then be in position, ahead of the curve, to gain substantial increase in equity.
Why complain about the market when it is not within your control. Rather, consider how you can make a move and use the market changes to your advantage. Now … if you do not make a move in this market, my question becomes … when will you know the right time? What signs will you look for to help you make a decision at the optimum time? Or … will the market catch you by surprise and rise above the point when you cannot afford to make a move? So … while you bark at every REALTOR® who calls upon you now, listen to what we say … we are looking out for your interest as well as our own.
We are here to help you, but first you have to be open to ideas, willing to consider possibilities, and motivated to pursue your dreams.

Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037

Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578

Mobile: (858) 449-8250

Thursday, January 13, 2011

Why Do We Avoid Listening to Our Inner Voice

There is a quote that I heard many years ago when I was a CFO for a major company. It was at a time when this particular company was launching a new product into the marketplace. The opportunity existed to “do things right” by spending a few more months and a few hundred thousand dollars more to adequately test the product, and to make a few extraordinary modifications and enhancements. Against advice to the contrary, an aggressive and ambitious CEO made the decision to beat their competitors to the marketplace with this new “secret weapon”, and thereby dominate with market share, earn substantial price margins, and as a result, boost profits. Well … in the end, the product failed in the marketplace with serious quality issues. And rather than creating value and goodwill, the company spent multiple times earnings to recall and dispose of the failed products. The company subsequently made the modifications and improvements that it previously deferred. Sadly, rather than beating its competition, they destroyed their good reputation that had previously taken over 50 years to build. Oh yeah … the quote is … “We never have the time to do it the right way, the first time, but we always have time to do it the right way, the second time around” – think about that for a minute!.
So how does this short story relate to selling homes? Well… most home sellers, although knowing that the right thing to do to get their homes sold, is to list with an active and aggressive Real Estate agent like myself, will, none-the-less, attempt to sell as a FSBO (For Sale By Owner). Or they will list their home with an agent promising to blast-market their home all over the digital and print world of advertising. I mean … how cool is it to have fantasyland pictures and descriptions of your home plastered all over glossy magazines, classified advertisements, personal websites, and social media sites – kinda makes you feel like you are finally in the “spotlight” – doesn’t it. You can send out all kinds of text messages and Facebook messages to showcase your home to all of your friends and family, just like a proud parent.
Well … in a manner of speaking you are in the “spotlight”, albeit a far-less-than desirable venue. Just imagine… there are a lot of people scanning the Internet looking for your advertisements… and as a result… you are potentially exposing yourself and your family to strangers of questionable ethics and principles, and, to strangers who now have access to more information than you intended to publicize. I mean, why not just include in your advertisement, the secret location of your hidden front door key, or the hours that your home is vacant, and therefore open your life to home invaders.
Regardless of those dreadful images, consider that passive selling techniques such as those mentioned… like magazines, and websites do not generally produce immediate or satisfactory results. These methods transfer control into the hands of others, to use as leverage in negotiations against you. Why? Because most people regard For Sale By Owners as being desperate or cheap. You are unknowingly, sending out a message to the world that you are possibly in financial need, that your skills at negotiating are weak, that you prefer to conduct your business deals in secrecy, and that you do not have the confidence and strength in your home’s worth, or your credibility. And, because you want to save on the sales commissions, you are contrarily sending out a message that you are willing to bargain . And for this reason, independent buyers, and especially bargain hunters and so called “bottom feeders” will expect you to forfeit at least the 3% that would have otherwise gone to the Buyer’s Broker in a traditional sale. And … before the deal is finished, you will likely have diluted your equity by 12% to 15%. Further they may assume (and they are probably correct) that you over-priced your home on the market. On the other hand, there is a high probability that by listing with an agent who resorts to some of the same methods as a FSBO, will likely cause your home to remain unsold for many months. This will either cause you to lose on the opportunity to purchase your next home, or worse, you may be caught with 2 mortgages for a significant period of time. If you choose to move onward to your next home, without first selling your previous, then that home, now vacant (no furnishings), will not show its true value in the eyes of the buyer, and you can expect to add 6 more months to your selling time, and expect a reduction of at least 10% in your listing price. Houses are indeed selling in this down market, however, with there being a 7 to 8 month inventory supply ( no discussion here about the pending release of foreclosures into inventory), competition is strong. If your motivation to sell your home and move onward with your plans is high, then you need to seek out a powerful Real Estate agent, like myself, who will work aggressively to get your home sold.
There is another quote that I like, and I believe there is truth in it, and it goes like this … “generally, you get what you pay for”. It is a very simple thought, yet sometimes our minds do not allow us to believe it.
How many times in your past life can you think when you should have paid a little more for something that you absolutely knew was of greater quality, yet you opted for the inferior product or service, only to be remorseful later. How many times in your past life had you proceeded to do something in a manner that was not up to your capabilities or standards, yet you chose the low road, so that only at a later time and after greater stress and expense, said to yourself “damn-it, I am going to do it right this time”.
When it comes to buying that next home, or selling your current house … make that commitment from the very beginning that you will hire an active, aggressive, and competent Real Estate agent to get the job done – do it right the first time, and you will likely be happier, more productive, and have more money. Have the peace and comfort that you listened to, and acted on your inner voice!

Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty

Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578

Mobile: (858) 449-8250

1299 Prospect St.
La Jolla, CA. 92037

Friday, January 7, 2011

I Would Like to Apply for the Job of Being Your Real Estate Agent

That’s right! I would like to apply for the job opening to be your Real Estate agent.
Do you have any idea how most people go about selecting a licensed Real Estate agent to assist them to either sell their home, a home which is likely their most valued possession, or to help them to find a new home, an asset which is likely their single most significant investment? Sadly, most people choose a Real Estate agent without considering the candidate’s qualifications, and the result is often a poor selection. As I have written in previous blogs, there are approximately 472,000 licensed Real Estate agents in the State of California. Having a population of nearly 37,000,000, then by mathematical supposition, 1 in 78 residents of California has a Real Estate license. That is pathetic - it is almost as easy to get a Real Estate license as it is to get a driver's license - but can they all, really be qualified to sell Real Estate? Think about that comment for a minute.
Here is what happens. There is a high likelihood that everyone knows a licensed Real Estate agent, and because of that, rarely will anyone actually take the time and initiative to interview agents - they simply call an agent who happens to be a friend, family member, affiliate of a religious group, or neighbor, etc.
Here is what is interesting! Before choosing Real Estate as my second career, I was a senior-level finance executive in the world of international manufacturing. Throughout my 25 years, I witnessed hundreds of people being hired by managers who used all of the wrong criteria, such as friends or family, people who attended the same college, people with like-minded sports interests, people with similar personality types, or just people who would not represent a future threat to that hiring manager’s career. The sad reality is that, while we have a near 10% nationwide unemployment rate, it is highly likely that qualified people are the victims of corporate reductions, while at the same time hundreds of thousands of unqualified misfits are still roaming the corridors in our American corporations.
So, why do I raise the issue of jobs in the corporate environment when I am requesting to interview with you for the job of being your Real Estate agent? Well … If you have ever attempted to search for a job within the most recent 10 years, you may have noticed that most employers are more focused on how well a candidate will market themselves, rather than assessing the substance of the candidate's skills and talents and how well the candidate will actually perform. This is because most of American businesses do not understand effective hiring and interviewing. And guess what? Pay attention to this statement - homeowners and home seekers are no different – they do not understand how and what to focus, in order to hire the right Real Estate agent.
Let me help you to select the right Real Estate agent. Listen to what I am offering to you. First and foremost, place yourself into the mindset that you are the hiring manager - after all, you are indeed hiring a professional to provide you with a service for which they will be compensated. Second, make the conscious, yet difficult decision that you will not hire any friends, family, or close associates – let them know, if necessary, that you value their relationship above the risk of jeopardy. And further to this point, do not accept any agent referrals from friends and family. Top Producing agents in any Real Estate Brokerage firm, while widely sought out, may not be, and probably will not be, a good choice for you. Now why would I suggest that you not seek out those regarded as, “the best”. Any Real Estate agent / broker achieves their success by applying the “numbers game”. Let’s face it – the more listing contracts with sellers, and the more buyer-broker agreements with buyers, the more probability that they will close transactions, and therefore generate commission revenue. The underlying problem for YOU, when playing in this “numbers game” is that, not every seller or every buyer, is a winner. Often times, the secret to getting as many listing contracts as possible, is to avoid be truthful with the seller about the market value of their home, and the result is a home that remains unsold for 6 months or longer. Can you afford that? Often times the secret to finding buyers is to give false promises of finding their dream home, without any attempt to assess your needs or to ascertain what you really want. Don’t let an agent play with your mind or your emotions.
Third, make a simple list of the “must-haves” - and this is not only critical, but probably unexpected from what you were thinking up to this point. You need to look for; (1) Agents who use active selling techniques, not passive marketing techniques. (2) Agents who invest in themselves to improve selling skills that will bring value to you. (3) Agents who have business experience and the diversity to know and understand negotiating skills, contract preparation, and can bring parties together for a “win-win”, and (4) Agents who take the time to learn and understand your needs and expectations. One caution here – avoid interviewing more than 3 agents.
My business partner and myself invest thousands of dollars monthly to improve our skills and techniques. As former business executives we know and appreciate the power of investing, and the resulting dividends that yield to our clients. We absolutely know the value to providing excellence in service to our select clients, and from that, the benefits that accrue to all parties associated with us. Truth, honesty, and integrity have always been, and will always be, the foundation and strength by which we operate our business.
Of those 472,000 Real Estate agents licensed to operate in the State of California, only a small percentage actually have the commitment and drive to aggressively pursue self improvement and skills upgrades to service their clients’ better interests. We are among those minority Real Estate agents who have such devotion and confidence.
Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty

Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578

Mobile: (858) 449-8250

1299 Prospect St.
La Jolla, CA. 92037

Thursday, January 6, 2011

To Sell or Convert Your Home as a Rental Property

What an interesting question to consider. I speak with hundreds of potential sellers every week as a part of my prospecting ventures. Too many people who are pondering to purchase an upgrade home, are giving more decision-weight to renting out their current home, and this decision is mostly because of the emotional attachment of having to forfeit thousands of dollars of their equity due to the decline in the local Real Estate market. And hey, before I go forward, let me say that I am most empathetic to this dilemna.
While I am a Certified Public Accountant, there is a strong desire for me to want to offer financial advice. However, I always make it clear that my services are offered in the capacity of a Real Estate transaction, and the client should seek out the council of a trusted financial advisor. And furthermore, since every person or family’s financial and tax situation is different from the next person, blanket advice does not always apply equally.
First though, the glamour and excitement of becoming a “Real Estate investor” seems appealing to many. However, to be successful, it has to be operated as a business, and not so much with the casual approach of a hobby. Becoming a landlord imposes additional burdens and responsibilities that sometimes go beyond the part-time intended involvement. Second, many home owners today seem to be of majority opinion that waiting for the market to rebound will enable them to recovery their equity losses, and yet, most also agree that the market will not regain for several more years.
So … back to the question, to sell or convert your home as a rental property. Oh, but wait – what about a few general considerations. According to one source that I found to be reliable, the home values in San Diego county have declined an average aggregate of 31% over the last five years since 2005. Everyone you speak to these days has their own speculations about when and by how much the Real Estate market will recover. Let’s face it, and at the same time consider your views on the following statement. The recovery of Real Estate is also directly linked to the availability of, and interest rates of money, jobs recovery, supply and demand of housing, and consumer confidence. But, nonetheless, is the Real Estate market likely to rise by 45% from this point? – that is about what will be required to return to the valuation point prior to the stated 31% loss. Most buyers who I speak to, tell me that they are still waiting to see the bottom in the market before they make their purchasing decision. So, now what do we have? We have a serious gap between the minds and thoughts of the seller and the buyer (otherwise known as the marketplace). Mr. and Ms. Seller - panic buying of yesteryear may not return for many more years to come. The Real Estate market is more likely to “normalize” and become more consistent and predictable before it will “go vertical”.
The next point is one that requires great personal integrity – and that is, we have to be honest with ourselves. Sit down with a pen, paper, and calculator. List down all of the expenses associated with the liability of your home, such as monthly mortgage payment on the loan(s), property taxes and insurances, and any HOA or other maintenance fees. Then, after some due diligent research of rental rates in your community, compare the rental income expected (cash in) against the expenses to carry the investment of the home (cash out), and determine any shortfall or excess. If your situation is like the majority of people, you will notice that the monthly dollars cash out exceeds the monthly dollars cash in, or in other words, you are losing more, and more, and more money. If the Real Estate market remains flat for example, and you are losing say $1,000 per month because of your net cash outlay – what does that tell you about your decision to convert your home into rental property (let’s avoid any discussion of depreciation and future cost basis adjustment for tax purposes). Oh yeah, and by-the-way, you may want to consider that in reality, your home may remain vacant for several weeks or even months while you search for a tenant, and then thereafter while you perform repairs during the turn-over period in between lease agreements.
So often what we encounter is the battle between logic, and emotion. The logic and facts generally bear witness in support of selling the house and walking away, and yet the emotional side causes us to clutch on to the shadow of a hope that some miracle or wonder will appear from nowhere and provide us with relief.
Take the time to think it over. When you decide to sell your house, and your motivation to do so is high, contact me, and I will discuss my action plan to list your home and help you to move onward.

Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578

Mobile: (858) 449-8250

1299 Prospect St.
La Jolla, CA. 92037

Wednesday, January 5, 2011

Traditional Home Selling Techniques Cost You Time and Money

Consider the following question. It is now the time, that you have to, or you want to sell or buy a home. How will you go about selecting the right Real Estate agent to help you accomplish your goals?
Your challenge is to find a qualified Real Estate agent who has integrity, credibility, and who understands which selling techniques work most effectively in today’s Real Estate market. So many Real Estate agents who are in practice today, come from diverse backgrounds that do not prepare them for Real Estate, and / or there are the veteran agents whose traditional techniques simply do not work well. Traditional selling techniques typically involve passive approaches such as placing advertisements into local newspapers, placing photos and a description of your house on the Multiple Listing Service, and nowadays by placing a blurb on social media sites and inadequate websites. Is this what you really want to sell your home quickly and at the best price in the market? I don’t think so!
My suggestion to you, before signing a listing contract with those top named Real Estate agents, is to do your homework. Set aside their name recognition, and then research their current listings portfolio. While many of the top named agents can display an impressive number of listings, take a look to see the aging status of those listings – you may be surprised to learn that many are older than 120 days on the market. How long can you afford to have your house sit exposed to the market without offers? In addition, when you review the pre-listing packages of these top named agents in your interview process, ask yourself, just how many of their 16 or 20 advertising and marketing ideas are action-oriented and aggressive to “sell” your house, versus those ideas that are passive, and lend themselves more to just “waiting” for buyers to throw themselves at your negotiating table. Before you read any further, think about whose hands do you want to place your home, and, your valued investment?
My business partner and myself have made the conscious decision to invest the time, energy, and money to first build a solid foundation to our business so that we are positioned to offer our services in a bold, aggressive, and results-oriented style, thus bringing value to, and by benefiting our clients. I am a Certified Public Accountant who has 30 years of practical business experience formerly working in executive capacities at Fortune 500 companies. I bring to our clients, a strong reputation of trust, credibility and integrity, coupled with the experience of making deals and protecting equity. My first Real Estate license is from the State of Maryland in 1988. My business partner, Natasha, is a former resident and business owner from Russia, and as well, a former teacher of mathematics and physics in the United States. We both bring our strong character traits from our former professional development into our Real Estate business so that we can offer a level of service several notches above the rest. In addition, we continuously spend thousands of dollars monthly on professional coaching and training, to supplement our capabilities with more powerful selling techniques that will convert into a return on investment for our clients.
Yes, of course, everyone likes to brag that they have the best doctor, lawyer, accountant or REALTOR®. But the question is … is yours really the best for you

Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty

(858) 750-2578

(858) 449-8250
1299 Prospect St.
La Jolla, CA. 92037