5 New Questions to Ask Your Long Beach Real Estate Agent

Since you are here at the blog we hope you like digging in deeper to find some of the information we have put together so you can learn more about the Long Beach real estate market.

Often as we meet with buyers and sellers in this market I find that people aren't sure what questions to ask. I think it is because sometimes people feel that we are only driven by commission. Believe it or not, real estate agents are your fiduciaries in the process of buying or selling. That obligation is one that is of paramount importance.

Just as you would ask you CPA questions at tax time, or your lawyer questions concerning a lawsuit, we are here to answer the questions you have because we want you to be comfortable with the entire process. Here are some questions that you might want to consider when you are speaking with your Long Beach real estate agent:

1. What is the average price homes/condos are selling for compared with the list price?
2. What is the average days on market?
3. What is your opinion of the market?
4. How can I protect myself from downward movement in the market?
5. What programs are now available to first time buyers?

As you can see these questions range from providing you with data to mere opinion. Your stock broker often gives you their opinion on the market so I would say it is OK to ask your real estate agent as well. Look for answers that show preparedness with both facts and opinion. I like to give my clients enough information so that they can draw their own conclusion.

If you are confident with their answers then you can have a great working relationship. If you aren't happy with the answers, then ask them to provide you with additional resources like MLS Data or hopefully they have been keeping their blog up to date :). As a consumer you need to feel confident in the process so it can be a rewarding experience.

If anyone has had some strange answers, we hope you share them here in the comments section!

5 Questions to Ask your Long Beach Real Estate Agent

As this market has been classified as a buyers market it is important to choose the right Long Beach Realtor to represent you in your purchase. As a buyer in this market you need to look for the agent who is the right fit and has the specialize that you need to achieve your goals. As I interview over 100 buyers each and every year I find that many don't have questions for me because they are new to the process so I thought it would be helpful if I put out a few questions that you could ask any agent in Long Beach to see if they are the right fit for your purchase.

1. Do you specialize in buyers or sellers? - You will find that most agents actually don't specialize. Just as Doctors choose a specialization you may want to consider an agent who has focused on buyers for this market.
2. How many individuals/families do you help each year? - The average is actually just 6 people a year. Asking this question can help you see their level of performance.
3. Do you help more people purchase condos or homes? - If you are looking for a condo you may want someone who is familiar with the different Long Beach Condos because of potential HOA issues and more.
4. How do you negotiate offers? - Here you will get a variety of answers, but check to see if they ask for closing costs, discounts on price, combination of both and more. This market provides many different opportunities to negotiate so check to see what they will do.
5. How many clients are you helping currently? - Determining their work load will help you to see how much time you will get. They should tell you their process (when they will call, send listings, updates, etc) for helping you to find a property so this is a good one to check on.

Just asking these 5 questions will help you to learn more about the person you are considering having you help you with your purchase. Research the agent online and check testimonials of their past clients so you can see what it is like to work with them.

Do I need a buyer's agent for new construction?

Ahh, new construction! The smell of new paint, gleamig counter tops, and knowing you are the first to live there. What a feeling! And since everything is new, and you are going directly to the builder, you don't need a real estate agent, right? Maybe but could a Long Beach real estate agent actually help you with the builder? Let's see.

Here are some of the common ideas that I have heard of why you would not use a buyer's agent because you are purchasing from the builder:

1. Since I am dealing with the builder directly they can just reduce the price because I don't have an agent
2. I don't have to worry about anything because it's all new so what would the real estate agent do anyway
3. Isn't the sales rep at the builder going to watch out for me anyway?

I definitely feel all of those are valid as I have personally spoken to buyers who have said them. Let's take each one so you can see if you really do need a buyer's agent to help you.

1. The builders now have factored in the buyer agent commission into their pricing and if they don't have to pay a buyer's agent then they get to keep a little extra money for themselves, but they don't reduce the price. Large builders like Lennar and Olson Company have great standards in place and recognize that the real estate agents bring great buyers and they don't like to "step on their toes" by telling people "if you just didn't have an agent we could save you 3%" because then agents wouldn't want to bring buyers by. Smaller builders (like those who do condo conversions) might reduce the price if you don't have an agent so you could save there, but be warry :)
2. Even those it's all new you might want an extra pair of eyes to look at the property you are purchasing so you can get flaws corrected. A buyer's agent can also help you determine which floor plan is best and might have the best re-sale based off of location in the building. It may not always be the most expensive unit that is the best as usually if you walk through some units you can find some great values by checking out some of the different floor plans. A buyer's agent can give you the experience of walking through thousands of properties to help you choose the one that is the best fit for you and long term value.
3. There are some wonderful builder sales representatives out there who do a great job helping buyers at their developments. They are though contracted by the builder so their primary duty belongs to the builder, not to the prospective buyer. In fact their contracts often state that the buyer does not have a representative so the buyer is reponsible for their own due diligence.

So you don't really have to have a buyer's agent, but they can help you over come some hurdles. I just recently helped a buyer purchase in a new development here in Long Beach and I corrected 3 mistakes on the builder contract prior to him signing.

Whatever you decide make sure you get the help you need as purchasing a new property isn't free of challenges, but rest assured you will be the first one who gets to live there!

Stalemate in Long Beach Real Estate?

With 358 sales year to date for the first quarter of Long Beach you may wonder what is going on here in the 5th Largest city in California. The reality is that properties are still moving (although volume is obviously less) but why is the volume different? There seems to be a sort of stalemate out there occuring and it seems that often it doesn't really have to happen!

After speaking with many real estate agents throughout the city and speaking with many different buyers I thought it would be helpful if I provided some of the feedback from all sides involved (buyers, sellers, and agents).

Buyers are saying:

• The prices will continue to come down


• I will wait until they do another price reduction


• There are foreclosures selling at 50 cents on the dollar

Reality

• Maybe prices will come down, maybe they won't, it all depends on the level of motivation of the seller. Inventory levels aren't as high as the early 1990's so I wouldn't hold your breath


• Why not write the price you want for the Long Beach home or condo you have your eye on? If you wait for a price reduction someone else might get it :)


• Really? Look at the stats. Foreclosures are generally listed at about 10% below retail and if the area is super popular they often get multiple offers. Also, they acount for less than 5% of total inventory.

Sellers are saying:

• I won't lower my price
• Do more marketing to bring the buyers to my property
• Let's wait and see

Reality

• If you don't price your home or condo at the last sale (or below) you probably won't see activity. "Testing the waters" these days to see if you can get your price is a waste of time. If you want to sell price it in the top 1% of your area.
• The fanciest flyers, websites, or blog, can't sell an overpriced home. I mean, would you pay $250,000 for a Toyota Camry? Of course not, so just because you put granite on your counter tops doesn't mean cool pictures of it will make the buyers will over pay for your home.
• If you want to "wait and see" if the market gets better you might be in for the long haul. The market is now a much more "normal" market so you better be prepared to price your home well and make sure it is in excellent condition IF you actually want to sell.

Long Beach Agents are saying:

• There aren't any qualified buyers out there
• "No one" is buying
• My seller is unreasonable

Reality

• Ok, so the loan programs have changed. There are still great loan programs where buyers can get closing costs and purchase a property for as little as 1% out of their own pocket, they are out there, you just have to find them.
• People are buying! Everyday people relocate or decide it's their time for their first purchase. Help them with information and confidence.
• Really? Maybe your seller doesn't have the information they need to make an informed decision. Give them the stats so they can see if they want to sell it's possible, they just can't get 9 offers if their home is overpriced.

So, long and short, if you want a property and it seems overpriced, write the price you want a see what happens! Be prepared for rejection or going through many counters offers, that's ok, it's part of the game. There are some great choices of real estate throughout Long Beach if you take the time to look. Have fun and happy hunting!

5 Tips to Ensure a Successful Foreclosure Purchase

The news media is constantly reminding all of us that "foreclosures are up". Well it shouldn't be a surprise that foreclosures are up considering we had the hottest real estate market in the past 30 years with historically low foreclosures during that time period. Currently Long Beach foreclosures are less than 5% of the total real estate market. So although they are a small amount of the market, it is important to be aware (and prepared) of what you need to purchase a foreclosure property.

Here are 5 items you need to know to be prepared for the purchase of a foreclosure:

1. Offer Preparation - Each bank is different and may require different information, however it would be a safe bet to have the following: copy of a check, proof of funds to close, pre-approval letter, copy of FICO scores. Know that if you do not have this ready they listing agent will probably not even submit your offer to the bank because the bank only wants to look at complete offers.
2. Contracts - Understand your contract! Most banks will have you sign an "Addendum" to the traditional real estate purchase contract. This Addendum usually overrides aspects of the real estate purchase contract and can shorten important items like inspection periods.
3. Discounts - The banks aren't in the business of giving away their assets. So, even though you are just positive it is a "buyers market" the bank is unlikely to take 50 cents on the dollar. Have your real estate broker show you the active inventory and the closed sales so you can see how well it is priced.
4. Don't be late! - The banks want to sell their property and they don't care that you couldn't get your paystubs over to your lender in time :). The banks will usually charge $100+/day for every day you run late on your escrow so make sure you are prepared with all items dealing with your loan.
5. The leaky faucet isn't getting fixed - You are getting a deal so know that those annoying items that came up on your inspection report aren't getting fixed. The bank complies with items like water heater strapping and smoke detectors (usually), but don't think they are changing the carpet for you.

Keeping these items in mind will help you to have a successful process. Foreclosures are out there, you just have to hunt, use the Free Long Beach MLS and pour through the inventory to see what is there, or contact your local Long Beach real estate agent so they can set you up a customized search.

New Construction in Long Beach Offers Surprises

Looking through the Long Beach MLS is a great way to get a good understanding of what is available. Often though there are properties that are not listed in the MLS that your local Long Beach real estate agent can help you to discover.

One of the best surprises of late has been the willingness of builders to work with customers. Often new builder inventory is not listed in the MLS. Understanding which builders do have inventory available and what incentives they are offering is key to helping you make your decision on which Long Beach property is right for you. As we have been around the city quite a bit this week (and in particular tracking some of the new developments) I thought it would be helpful to mention some of what is being offered out there:

• Temple Lofts - The Temple Lofts, located at 835 Locust Ave, are down to their final 9 units. With just 9 left they have been giving buyers $50,000 to use anyway they would like. This can entail reduction in price, closing cost credit, or even paying your HOA in advance. We have helped a number of clients move in here recently and they have just loved the building.
  
• Pacifica - This building, built by Lennar once had just a small sales office to sell out of. Looking at the 3D renderings of models was tough, but now they have the real deal available! They have staged units to look at and they are paying 2 years HOA (along with they have had a great price reduction from their initial offerings).
  
• AQUA - List prices can be tricky :). Although the builder is down to their remaining 34 units the prices seem a bit on wishful side. Don't let that stop you though. Going with your real estate agent has it's advantages. The sales staff is more than willing to work out a deal - everythign from a price reduction to upgrades. Ask to see what you can get!

Understanding the inventory from the traditional resales to the new construction in Long Beach will help you to find the right home. Financing options are many and the builders may even help lower your interest rate with a buy down. Have fun shopping using the Long Beach MLS and your Long Beach Realtor