The Scoop On Open Houses

One of the most discouraging things I hear from potential buyers is how disappointed they are with the homes that are available. I ask them, “How are you seeing the homes you are interested in?” The answer is most often open houses. Open houses can be a great place to connect with a realtor and to get a sense of what kind of house your money will buy, but it’s not a substitute for a realtor’s expertise and access to the MLS.

In the most recent buyer survey conducted by the National Association of Realtors, only 3 percent of buyers reported finding their new home from an open house. So why do realtors continue to have open houses if it’s not leading to the house being sold? They host open houses to sell themselves. It’s not just for the buyer’s benefit—the second most likely person to visit an open house is a neighbor who is curious what homes like their own are selling for and it’s a chance for the realtor to make an important connection.

Plenty of people plan their weekends around open houses, but why not let a realtor do the work? For starters, there is no rule that a home for sale has to have an open house. If you’re waiting for an open house to see the inside, keep in mind that a well-priced home may sell before an open house can be scheduled. If an open house is scheduled after a few weeks on the market, you can bet it’s because the house isn’t selling—not surprising then that so many people who limit themselves to just open houses find nothing but over-priced listings staffed with over-eager agents.

The alternative? Give a realtor a chance. Buyers’ agents are paid by the seller’s agent, so the help is free. If you are serious about buying a home, the sooner you start working with a professional, the sooner you’ll have your weekends free.

Should You Consider Purchasing a Foreclosure?

You may have heard a plethora of conflicting information about foreclosures. As is the case with any real estate transaction, each foreclosure will be its own unique situation. To get you started, here are some basics about foreclosure properties.

From the buyer’s perspective, there is little difference between purchasing a home through a standard sale versus a foreclosure. Buying a foreclosed home is not a guaranteed deal like it may have been a few years ago, but if the property appeals to you, there’s little reason to avoid a purchase just because it’s a foreclosure. 

A foreclosure, also called an REO, is a property that has been repossessed by the bank and is being resold after the homeowner fails to repay the mortgage. Because the asset manager has never lived at the property, the bank is exempt from providing the information normally provided by the homeowner. However, a buyer still has the right to a home inspection, and no seller questionnaire will exclude the need for a thorough and professional investigation.

Perhaps the biggest difference between a standard sale and a foreclosure is what the home inspector will find during the course of their investigation. In a standard sale, the homeowner has a vested interest in the property selling quickly and for the most amount of money possible. These houses are usually clean and don’t need major repairs. In the case of foreclosures, there are a whole host of possible scenarios that can affect a property from the time the homeowner stops making payments to when the house is put up for sale. Some people feel they are being forced out of their homes and will make attempts to sabotage the property. Some realtors have seen cement flushed down toilets to destroy the plumbing, or graffiti spray-painted on walls. Some occupants will take anything of potential value from the property: appliances, fixtures, flooring, copper pipes and wiring, yes, even the kitchen sink. However, there are plenty of properties that are perfectly fine. The word “foreclosure” really does apply only to the type of sale and not to the condition of the property.

In a rising market, a foreclosure is a great option for a buyer intending to live in the home. When making an offer on a foreclosure, your realtor should contact the listing agent to get an idea of the flexibility of the asset manager. Sometimes the selling bank may fulfill requested repairs, but not always. If they do not, and you have a loan that requires the house you buy to be in good condition (such as a VA or FHA loan), your offer could be rejected. But because so many loans that were foreclosed on were backed by the government via Freddie mac or Fannie Mae, the bank is incentivized to return the properties to owner occupants, giving them the advantage over investors with cash.

Depending on what type of loan the original homeowner had, the bank may be able to offer the new buyer a loan type that allows for money for repairs in addition to money for the purchase. However, there are fewer REOs available these days are banks are in no hurry to recoup a few hundred thousand dollars, so don’t assume the house is priced under market value. Look at comparable properties just as you would a standard sale before making an offer.

Bay Area Accessible Playgrounds

Moving to a new town presents many challenges, especially for those unfamiliar with their new neighborhood. Luckily we live in the information age, where new technologies are helping us navigate the unknown like never before. One of the latest is NPR's new online guide, designed to help families locate accessible parks and playgrounds.

Outdoor time, movement, and play are vital for children's development. That is just as true, if not more so, for children who are differently abled. Yet not all parks host optimal environments for children with special needs.

Many features that define an accessible playground happen to be beneficial for all children, such as one-way entries to prevent unseen exit or smooth surfaces. Matteo's Dream in Concord provides many accessible features, such as ramps to play components, sound-play components, and an accessible swing. 

It's going to be another warm weekend--enjoy it while it lasts and get out and play!