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Anthony Mercado's Blog

By Anthony Mercado | Agent in Temecula, CA
  • Buying or Selling what a real estate agent should bring to you.

    Posted Under: Market Conditions in Hemet, Home Buying in Hemet, Home Selling in Hemet  |  May 20, 2014 10:11 PM  |  109 views  |  No comments

    So it’s been brought to my attention over the past month, which real estate agents are not doing their jobs. 

    When it comes to selling or buying a home a real estate professional should have this in their hands when they first meet you... the CMA (Comparative market analysis)

    A CMA is the backbone for informing agents, seller and buyers of current market value of a home. The normal criteria for find the value of the subject property is finding recent closed sales, pending and active sales within a half mile radius over the past 3-6 month period. Price is adjusted by finding similar properties and appreciating or deprecating the value of the subject property according to what features and characteristic the comparable properties have or lack. 

    So why is this important? And as a seller why is it a bad idea to ask for a price higher then market value?

    Setting the price is very important in selling because this is how you will advertise 80-90% of your home. A home priced right can sell as fast within the first month. Priced to low… and it may sell just too fast when you could have made more money on the sale of the home.

    Pitfall of overpricing runs the risk or having the home on the market for a long period showing potential buyers that the home has been sitting not getting any action giving them leverage to negotiate an even lower price. Worse getting an excepted offer and the appraisal coming back lower than the purchase value of the home, meaning if the buyer came in using a loan the buyer now needs to come up with the difference out of pocket which most buyers don’t have or the seller needs to drop the price to the appraised value.

    So to keep this short, next time you consult a real estate agent, make sure he/she brings proof (CMA) of the market data proving home values in your area.

    Hope this was helpful and good luck in your next purchase or sale. 

  • You should know Trulia beware!

    Posted Under: Using Trulia, Home Buying, Agent2Agent  |  April 30, 2014 4:47 PM  |  168 views  |  3 comments
    So I tired out a representative subscription for a pre paid one month period. I was given a call by a represntive because their payment didn't go through for the second month... hmm wonder why. I told them my subscription was only for one month seeing how I wouldn't know how it would work out, and it didn't the services provided where nothing more then what the free version already offers. I pulled their BBB report and thought I would like to share it. And from ratings being between A-F "F" being lowest score a buisness can get ...they have an "F". This comes to no surprise, so agents and consumers beware! http://www.bbb.org/greater-san-francisco/business-reviews/advertising-specialties/trulia-in-san-francisco-ca-200783/complaints
    This is a company that needs to be removed from the web.

    So after being on hold for an hour trying to get billing services, they simply answered then hung up. 
  • Homes Connect an Epic Fail

    Posted Under: Agent2Agent in California  |  February 10, 2014 9:40 AM  |  153 views  |  No comments
    So Homes connect keeps advertising to use their pruduct because it take all of an agents account and gives you access to everything with only one password. The problem! Its simply not true, you can't put every account on the site to use the one password feature. This is the other major problem I ran into. The site is simply confusing to use, which is why most agent don't use it. I was able to set it up but it litterly took about an hour to get everything on... and I'm still stuck at a 85% finished because I don't want to buy their pruduct (domain name) because I already have a domain (http://www.homesforsaleintemecula-ca.com), but it did give the option of "already have a domain, register it here" but they still charge the same amount if you bring your own domain over. The bad thing about that would be the SEO work done to ranking your private domain would be losed if you did a transfer, and there SEO isnt ranking on google for keywords I use at all. So this homes connect site really needs to step up to the plate and either do better SEO work at getting there stuff ranked like it advertises or stop advertising it. Other features it needs to fix: the whole bloody site! they really need to grab a clean scratch paper on this one and start over. I don't know who does their development but they need to grab some of the oldest agents alive and develop their site around them, if a 80 year who doesnt know how to use a computer can function the site, then anyone else should be able to do it. Just keep the site simple and clean. Then there is the subject of giving their site full access to your acounts... I don't know about you but Im the kind of person who just doesn't like to give one site access to all. Esp. when that site tries to take advantage of your social sites like facebook and twitter, and markets its self using your social networks. Not only is it annoying to anyone on your friends list, the ads also look hooriable. If this site doesnt make any changes soon I can see this running head first into a wall. 

    Posted Under: Home Buying, Home Selling, Tech Tips  |  February 6, 2014 4:34 PM  |  575 views  |  No comments

    I've used trulia for almost a year now, and the experience has been horrible. Normally when I talk to my clients I ask them if they have used truila, and so far 100% of them have never even heard of it. Manly because truila doesn't advertise like zillow or even your normal real estate firm like the big three. The bad news doesn't stop there, its information that it provides is often inaccurate or completely untrue and I've learned firsthand that they can make some very big screw ups like pulling information from the wrong source. So why do I use truila if I don't like it? mainly for back links.http://www.homesforsaleintemecula-ca.com/
    And what most home buyer (users) don't know is that the site simply goes to the highest bidder, meaning if an agent pays truila, its going to be that agents face all over the site and the agent could be an out of town agent having no knowledge of the area a in town agent would have. Plus there is no true rating process, the only type of feedback you can leave for an agent is positive, so if you wanted to really leave negative feedback for someone to beware of an agent, sorry to bad, truila is only set up to make the highest bidder look good. 

  • Buyers Market to return In the Up Coming Months?

    Posted Under: General Area in Hemet, Home Buying in Hemet, Home Selling in Hemet  |  January 30, 2014 11:58 AM  |  574 views  |  No comments

    With the kick start to 2014 Real Estate seems to be picking up in listings! Meaning more people are adding their homes for sale on the market. As I have kept my eye on the MLS this past month of January there are an avg. of 40 homes going on the market everyday (in Hemet, Temecula, Menifee, San Jacinto and nearby areas.) and avg. closing (homes sold) 8.

    Why the change in listing? At the end of 2013 the market has started to stabilize, people are now finding that they are no longer "upside down" in their homes in the current market and are trying to take the first ticket out of the home there in. With more Sellers finding out that they now have equity back in their homes, it has created a “flood” of new listings onto the market. In hindsight if homes continue to flood the market as they have through January we might see a decrease in prices again because the number homes over sees the number of buyers in the market in a 5 to 1 ratio.

    It's a simple theory that we all learned in high school economics class of supply and demand. Number of homes (supply) and the number of buyers (demand), supply simply exceeds the number of demand. 
    What does this mean for home buyers? Well during the year 2012 and 2013 homes have been saturated by investors buying up everything and leaving actual owner occupied home buyers frustrated because every time they put an offer on a home they seem to be out bided from at the last minute by an investor. Luckily if you are a home buyer, this change in market can swing things back into your favor by causing prices to decrees and having more of a supply to choose from.


    What Changes I would like to see in the current market.

    I’ve always been pro home owner occupied sales, because in general most people who own their home take pride in what they own. Meaning the home is well maintained and leads to the area looking nicer and shows a steady economy, and when you get a better looking neighborhood it’s going to drive the value of the area up. I would be nice to see home owners who do choose to list their homes this year only open the homes up to owner occupied only for at least the first six months. I understand that owner/sellers want to get as much as they can out of the sale of their home and most investors do have the funds to make those higher purchase cost, but if they only open the sale of their home to owner occupied you can bet the area will increase in value of the next two years, simply because investors don’t really care about the condition of the home, they just do minimal if any maintenance to the home and collect rent from whoever they can stick in there. Most people know renters don’t care about the home either because they don’t want to put any money into something they don’t own leaving the home to pretty much fall down around them until the investor decided he wants to sell. And at the same time it depreciates in value as well as depreciates the value of homes around it.

    So in short I would like to see an increase in owner occupied home sales.       

  • The Loan Process

    Posted Under: Home Buying, Financing, Agent2Agent  |  June 11, 2013 4:02 PM  |  618 views  |  No comments
    This goes through the loan process to educate any individual who would like to understand the full process from the industry side. 

    . Find out how much money you have to work with for down payment.
    2. Credit check (will happen at the time when you apply for a loan)
    3. Total monthly debt and figure total monthly debt to income ratio (front-end guide lines are 29%, this is new house payment only, back end guide lines are maximum 41%, this includes monthly revolving and installment debts showing on the credit report, child support and/or alimony and the new house payment, these are GUIDELINES ONLY and under certain circumstances are subject to change.
    5. Obtain the following Documentation:
    a) One month most recent pay stubs
    b) Last two years tax returns with W-2s and/or 1099's
    c) Last two months bank statement 
    d) Drivers License and Social Security card (SS card) (Patriot Act)
    e) Check for appraisal
    f) Bankruptcy papers, include discharge letter (if applicable)
    g) Divorce papers (if applicable)

    6. Determine loan program
    7. Contact a real estate agent and issue a Loan transaction qualification letter
    8. Complete loan application (1003) and have sign disclosures 
    Agents duties
    9. Input information in the computer
    10. send out verifications for employment/income, rent and assets
    11. The Truth and Lending Disclosure and Good Faith estimate must be sent out to prospective borrower 3 days after taking loan application.
    12. Run a DU or LP for computer loan approval, if applicable 
    13. Order appraisal
    14. Lock interest rate
    15. Contact Escrow to give them our information on where to send escrow instructions and preliminary title report
    16. when all documentation has been received, complete a loan submission form, construct a letter of explanation for the underwriter if there is something that needs to be explained, copy package and send to the underwriter (and to MGIC, if applicable)
    17. When we receive loan approval, review and obtain prior doc. condidtions 
    18.Send conditions to the underwriter for clearance to order the loan documents 
    19. Complete doc order form
    20.After escrow has signed the loan documents with the borrowers they will send them to the loan funder.
    21.The loan funder reviews them to make sure that they are completely signed and that all prior to funding conditions have come in
    22. Once the everything is clear to fund, the funder then wires the money to the title company and notifies the escrow officer with the funding figures.
    23. The escrow officer then contacts the title company to set up the file for recording the grant deed, the deed(s) of trust and any other documents that might need to be recorded into the transaction.
    24. The title company will contact the escrow officer when the documents are recorded 
    25. At the time of recording the grant deed the ownership of the property officially goes to the new buyer.
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