To do business with friends, or not to do business with friends?

Recently a friend asked us to list her home for sale.  We had been talking real estate for years and she has been a member of our client appreciation program since the day we met, so when she asked us to represent her, we were not surprised.  A few weeks later, while in the preparation stage of going on the market, she was completely distraught and confused because she was being inundated with horror stories about doing business with friends.  One of the things that I love about this client is that she always conveys her thoughts and feelings…and how grateful I was that she did this day so that we could work through this one.  I explained to her that I agreed, it does not make sense to do business with friends just because they are friends.  But, if you happen to have a friend in the business who is an expert at what they do, you should absolutely take advantage of working with that person you trust.  I made a pact with her that if at any time she felt uncomfortable, frustrated or angry during the transaction that she tell me right away…no holding back just because we are friends.   And, I guaranteed her that she would have those moments because everyone does during the course of a real estate transaction (a stressful process at best)…and that I would NOT take it personally when she became upset  I also let her know that not only have we worked with many, many friends successfully, but that our relationships are strengthened after going through the process together, and often new friendships are formed as a result of representing buyers and sellers.  Though she has had some highly stressful moments, we are now completing escrow…but throughout the process she kept her promise to communicate, and I kept my promise to take care of her, protect her, and work tirelessly to help her achieve her goals.  So we are in this together and forming that special bond which we so dearly love about representing buyers and sellers!

Celebrate! 2011 Client Appreciation Party

This gallery contains 42 photos.

We threw one of our (dare we say legendary) client appreciation parties on Thursday, June 23 in the courtyard of our new office in Old Pasadena! Throwing a nice party for our clients is fun… it is our clients that … Continue reading →

It’s in our blood!

We have been featured in a nice article by Pasadena Now which talks about our history in the real estate business… we’ve been around a long time and we owe it all to Emma Lee Halverson.  And how can you not love this picture from the days of Emma Lee and Barbara’s partnership.  

Check out the article here:
http://pasadenanow.com/main/lippincott-group-moves-to-john-aaroe-group-pasadena

Preparing to buy a home

Thinking about buying?  What to consider?  We’ve given this some thought and here are some suggestions that will help you get on track so that the process is not overwhelming!
 
The process of buying can be time consuming.  The best way to save time is to organize all the necessary documents most lenders require, such as those that prove employment and income.  Typically, lenders want two recent pay stubs, two years of tax returns, bank statements, proof of assets, such as 401k and trusts, and debts, such as credit card statements.  Documents are especially important for borrowers who are self-employed.  The same documentation is needed for refinancing an existing loan as well.
 
Even if a home purchase is months or years away, having a good credit history is essential.  A few points on a FICO score can mean the difference between a higher or lower interest rate offered on a mortgage  loan.  Some of our buyer/borrowers also are monitoring home-lending rates.  Every Thursday, Freddie Mac officials calculate average mortgage rates by compiling rates from lenders across the United States on Monday through Wednesday.  Rates can be found quickly and easily at http://www.freddiemac.com/pmms/. 

People often ask us if it is a good time to buy, and this can be a difficult question to answer.  Your specific circumstances are the most important factor when it comes to home ownership, and we often help buyers weigh their options.  If you would like to read more about current market conditions, refer to our recent blog post, or read this well written article.
 
Helping guide our clients through this pre-purchasing time period is one of the many services we offer.  It is not unusual for the Lippincott Group to work with a potential buyer for a year or two prior to that client actually making a purchase… planning ahead can make the process easier!  Our many years of experience has given us the expertise needed to understand the many aspects of attaining and managing home ownership.  Questions about all this?  Give us a call!

Market Overview – 6.1.11

We are constantly tracking the market and updating our knowledge in order to best serve our clients.  In this new “Market Overview” blog feature we will disseminate this information to you on a regular basis, even if we are not currently actively working with you.  We hope that you find this information to be useful.

It seems an especially appropriate moment to begin this series considering the headlines this morning about falling markets and slumping home prices.  But it is misleading to make blanket statements that the real estate market is continuing a downward spiral. Sure, the reports are depressing and there is reality to the reports, but the fact remains that real estate is very localized, and our local market remains active and solid.  During the reported time from March 2010 to March 2011, Los Angeles prices were only off 1.7%; our area is not seeing a significant drop in value. We have been seeing consistent multiple offers (and our buyers can vouch for that) on homes and sales above the listing price!  We know how important it is to keep things in perspective and to know the local market conditions while remaining aware of the big picture.

More of our take on the current mortgage situation and the buyer’s market:

• Mortgage rates are still relatively low and with a large group of houses for sale, house hunters have plenty of opportunity. Nevertheless, the changed housing market has brought new aspects to consider when looking to purchase a home.
• Buyer’s need to understand the significance of purchasing in a favorable location. The Lippincott Group keeps up to date on what is happening in all local neighborhoods so as to advise our buyers appropriately.
• The days of buying a home with little, or no, money down are virtually over. Most conventional mortgages now require a 5 percent down payment, with FHA requiring approximately 4 percent down.
• The housing market is recovering, but many analysts disagree on when we see a full recovery. Homeowners may find themselves staying in their newly purchased home for many years, so buyers should think long-term about the size of the home, location and how it fits into their lifestyle.

The Lippincott Group is always available to discuss these interesting facts with current or future buyers and sellers.

Further reading:
Home Prices Falling, Insurance Premiums on the Rise [Wall Street Journal]
Many homeowners are refinancing their mortgages to shorter terms [LA Times]
Remodeling your home? Watch out for scams [CNN Money]
California creating mortgage fraud task force [LA Times]

Unique History

The Folts House in Pasadena was designed by architect Cyril Bennett, designer of the Raymond Theater, Pasadena Civic Auditorium, and many other distinguished local buildings.  We sold this beautiful historic home in the 1980′s to wonderful clients who began lovingly restoring this amazing property.  After about fifteen years they approached us about the possibility of having this property designated Historically Significant by the City of Pasadena and then qualifying it for the Mills Act.

Katherine is our historic designation expert and was able to provide information about the advantages and process of becoming designated. Our team stayed with their consistent efforts month by month for several years. In Pasadena this is a long and arduous process of investigation and research with many city meetings and walk-throughs of the property by historic specialists (and even past family members of original owners in the 1920’s) to shepherd this process. Our clients compiled a tome documenting the history of their home. It takes dedication and commitment!

Why did these owners choose this path? To mention a few reasons: an interest and a fascination with the history of this large five bedroom home; a curiosity about the first owner and architect; an appreciation for one of the most exquisite tile mantles designed by Ernest Batchelder; the recognition for being designated historically significant; increased market value of their property; and an extraordinary dedication to the cultural heritage of their community.  The Mills Act requires annual maintenance and restoration work, but provides significant property tax deductions.

Eventually the owners will sell and we are their “Realtors for life,” so we will then have our challenges too.  How do we give this fabulous property the attention it deserves?  What is the significance of its uniqueness?  It is not comparable to other homes in its neighborhood, so how do we accurately estimate its worth?  Fortunately we too have a long and established history in this community and in our profession; with nearly forty years of experience in real estate we are able to meet this challenge and ably represent these special home owners and this unique property. Their pride and success will be ours, too!

Loan Challenged – The Cracked Retaining Wall

OK, here’s the situation: you want the house, but it has issues.  Isn’t that just like life?  We all know that “perfect” just isn’t a reality… when purchasing the “home of your dreams,” you may also encounter some nightmares in the process.  In one recent case, our buyers are interested in a property with a severely damaged retaining wall, and the listing agent has indicated that this may prevent the property from qualifying for a conventional  loan.  The seller does not have the means to fix the problem before the sale.

We run into issues like this very often these days, typically with short-sales and foreclosures, whether it be dilapidated conditions, an unfinished remodeling/construction, an empty pool, or a million other hazards.  A property must meet certain criteria to obtain a loan, and the aforementioned are just the tip of the proverbial iceberg.  So the fun begins… to come up with a creative solution that suits both the needs of the seller and buyer.  In this case with the damaged retaining wall, what can we do?

First idea: approach the seller to request that buyer may make repairs during escrow, and sign a hold-harmless clause.  This is risky due to the fact that the buyer is not guaranteed that the escrow will close, and so they are obviously less inclined to spend money on something which is not theirs.  Not to mention, banks are not often amenable to such things.

Second idea: obtain a rehabilitation loan which allows the buyer to complete the work within a specified time frame after the close of escrow.  But these loans don’t work for every situation.

Third idea: cash is king.  Pay cash, and there is no issue.  You may be surprised how many buyers go this route… they want the house, and they have the cash!  Problem solved.

These are just three options for this particular situation, though we have devised many other solutions for similar quandaries.  This is what we do.  It isn’t always easy… and that is an understatement… but it is so gratifying to find solutions for our clients.