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Michael Corbett's Blog

By Michael Corbett | Real Estate Pro in Los Angeles, CA

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Bidding Wars Are Heating Up, But You Can Still Get a Great Deal!

Posted Under: Market Conditions, Home Buying | May 9, 2013 3:07 PM | 688 views | No comments
After years of a slumped and depressed housing market, real estate agents say that there’s a bidding war going on for homes. This means that inventory is shrinking and affordable homes are becoming more scarce.
However, if you know where to look…you can still find cites that have good deals! The latest Trulia.com housing data shows that there are some cities where you can still find a good deal on an afforable home.

Let's look closer at some homes in the following markets:
- Nashville, TN
- Waco, TX
- Ashville, NC
- Tampa, FL
Here are four examples of great deals!

Nashville, TN
$114,615

2 bed / 1 full, 1 partial bath, 1,316 square feet
See full details on this home here

Waco, TX
$98,5000

4 bed / 2 full bath
See full details on this home here

Asheville, NC
$169,900

3 bedrooms, 2 full and 1 partial bathrooms
See full details on this home here

Tampa, FL
$149,000
5 bedrooms, 2 bathrooms, 1,914 square feet
See full details on this home here
It's Cheaper To Buy Than Rent In Cities Across America!

Posted Under: Home Buying, Rent vs Buy, For Rent | April 26, 2013 11:46 AM | 677 views | No comments

Even though asking home prices rose 7.0% in the last year, outpacing rent increases of 3.2%, the gap between buying and renting has narrowed only slightly. One year ago, buying was 46% cheaper than renting. Today’s it’s 44% cheaper to buy versus rent. In fact, homeownership is cheaper than renting in all of America’s 100 largest metros. That’s because falling mortgage rates have kept buying almost as affordable, relative to renting, as it was last year.

Of course, it's not the same in all metros. Buying is cheaper than renting in all 100 metros, but in San Francisco, Honolulu, San Jose and New York, it's a closer call. In other metros, it's a no brainer. Buying is MUCH, much cheaper than renting.

Let's look at some great homes that are cheaper to buy than rent!

Shaker Heights, OH
$146,475

4 bedrooms, 2 bathrooms, 1887 square feet
$627 monthly payment
Rental would cost you $1,100 a month!
Click here to see the home listing and full details

Memphis, TN
$194,000

3 bedrooms, 3 bathrooms, 1,472 square feet
$869 monthly payment
Rental would cost you $1225 a month!
Click here to see the home listing and full details

Birmingham, AL
$175,000

3 bedrooms, 2.5 bathrooms
$789 monthly payment
Rental would cost you $1,455 a month!
Click here to see the home listing and full details
It's Springtime for Housing! Let's Go Open House Shopping Across America

Posted Under: Market Conditions, Home Buying | March 27, 2013 11:29 AM | 3,071 views | 3 comments

Spring had sprung, which means that 'Open House Season' is now in full swing. As the market comes out of winter hibernation, buyers and sellers are starting to wake up.  In the winter, all activity rests: searches, prices, starts, sales and inventories all slide to their yearly low in December or January. Life resumes in March, as search activity pops up and stays above normal through August. Prices rise too and reach their annual high in May. Summer has endings and beginnings: sales peak in June, as do new construction starts. Sales top out in July and August and then begin to decline into the Fall and Winter.

Since we're at the very beginning of the Spring housing season, let's go shopping! Here are five great homes that I featured on Fox & Friends that are open this weekend! Are you interested in learning more about any of the homes? Just click the links below to get more information.

Happy hunting!

-Michael

$159,900
8101 Lake Tahoe Trail
Fort Worth TX
See more property details

$159,999
206 Carolina Crossing Blvd
Little River SC
See more property details

$114,999
1840 22nd Ave North
St Petersburg FL
See more property details

$179,248
102 Hearthstone Reach NA
Peachtree City GA
See more property details

$85,000
1232 Bethel Road
Charlotte NC
See more property details

Agent contact info for 1232 Bethel Road:
Robyn Riordan
Office: 704-496-7450
Mobile: 704-905-4991
Robyn.Riordan@allentate.com

For more great tips: check out Michael's 3 Bestselling Books:
Before You Buy!  Find It, Fix It Flip It! and Ready, Set, Sold!
Red Flag Reasons Not To Buy A House

Posted Under: Home Buying, Property Q&A | November 29, 2012 10:14 AM | 2,346 views | No comments
A house with “broken bones” is the money pit you must run from. If a house has major structural, geological, or severe foundation or environmental problems, you don’t want it. These will cost you. Even if you get the house cheap, the problems never go away and are sometimes impossible to fix no matter how much money you throw at them. Whatever the market, you will have to sell it for less – just like the guy who sold it to you.
Of course any problem can be fixed. It’s just a question of what it takes to fix it. Besides the expense, you’ll need full permits and approval for every stage of renovation by the city inspectors. And major structural flaws can cover up underlying and costly issues.
Here are my Red Flag Reasons NOT to Buy A House:
Structural Problems That Are Beyond Repair Economically

Foundations that are not built on slab or concrete footings

Major shifting due to poor foundation work

Unsolvable drainage issues and flooding of the basement

A bad floor plan that can only be solved by a room addition

Bedrooms on the second floor and no room to add a bath

Major truss damage to the roof, causing a severely sagging roof line

Major fire damage

Geological Problems That You Cannot Overcome
Severe earthquake damage

Unstable hillside near the house

Slipping or shifting due to soil erosion or flooding

A house built on soil compaction (substandard by today’s codes)

Environmental Problems To Run From!
Asbestos ducting

Mold

An old, out-dated septic system

Faulty septic or a long sewer line to the street

High levels of radon

Illegal room additions that appear to be not to code, especially bathrooms

Often, it is not sufficient to just repair these problems. With significant repairs, you will have to bring the entire house up to current codes, which on older homes could cost in the tens of thousands of dollars. This is a Pandora’s Box you do not want to open, because you will never see that money back.

-Michael

For more great tips: check out Michael's 3 Bestselling Books:
Before You Buy! Find It, Fix It Flip It! and Ready, Set, Sold!
3 Steps to Avoid Storm Damage Repair Scams

Posted Under: Remodel & Renovate, How To..., Property Q&A | November 13, 2012 5:12 PM | 2,646 views | No comments
Much of the East Coast is still dealing with the aftermath of superstorm Sandy and this will continue for the months and years to come. Last week, i talked about some great informational resources for people in the immediate aftermath of the storm. Now, I want to dive a little bit deeper into the ways you can avoid storm damage repair scams and work in harmony with your insurance company to get everything back in order.

Step One: Check with Your Insurer
You must check with your insurance agency before you:
Begin to do your repairs

Before you hire anyone

Before you pay anyone

Ask your insurer to survey the damage and get your claims on file with them. During this process, you will need to know:
What specific damage the insurance company will cover

What the insurance company will pay and reimburse.

You will also need to know the specific procedural process required.

Will the insurance company need to approve a repair before you do it in order to be qualified for reimbursement?

Do they need review any contractor estimate and contract before they approve for reimbursement?

Do they need to approve the actual contractor who is doing the work first?

Save all receipts, including those for food, hotel or other expenses that may be covered under your policy.

Step Two: Finding The Right Contractors - Avoid Scam Contactors

Do your due diligence before you hire anyone, give anyone any money or sign a contract. Be aware of and remember the following:
Never let anybody inside your home who arrives at your door without an appointment.

Do not hire someone who shows up at your door offering unsolicited home repairs. One of the most common scams is when someone the arrives at your door and pressures you to hire them on the spot because they have “lots of material left over from another job” and can give you a great discount today only.

Additional red flags:
If they don’t have proper ID and business card.

Does their company's business card show a PO Box address rather then a street address?

Step outside to take a look at their car or truck. Do they have their company signage on the truck, with company name and address? Is their license plate from out of state?

Don’t hire a contractor who says he’s supported or approved by the government. The Federal Emergency Management Agency does not endorse individual contractors.

Check out the contractor’s record with your local Better Business Bureau.

Ask to see copies of their licenses. Some cities, counties and states allow you to verify licenses online to make sure the contractor is licensed and insured to do business in your area.

Ask for copies of the contractor’s general liability and worker’s compensation insurance. You only want to work with a fully insured contractor.

Ask for references. – past job address and contact phone numbers – then call them!

Go online! – There are great on line community resourses out there. Such as Trulia Voices, Yelp or Angie’s List.

Check with your insurer to see if they have a list of recommended contractors.

Step Three: Contracts and Payments

Before you hire or anyone:
Get at least three estimates for the work to be done

Get everything in writing on the company’s letterhead

Have a written, detailed contract that clearly states everything the contractor will do. This written contract needs to include: what specific work will be done, the materials that will be used and the price breakdown for labor and materials.

Any promises made verbally should be written into the contract, including warranties on the work, start date, specific payment schedule, completion date and penalty for missing the completion date

Make and keep a copy of the contactor’s licenses and insurances for yourself!

Always remember:
Never pay in advance

Never pay in cash.

Avoid paying more than the minimum up front. Some companies will ask for a deposit, I suggest paying no more than 25% of the job in advance. Pay them only after materials arrive on your property and work begins. NEVER give any money to anyone until you have done your full assessment of the contractor and have a signed contract.

Get a receipt for each payment, you will need to submit them later to your insurance company – and your taxes for the following year. FEMA may also require all your receipts, contacts and paperwork

Prepare for a "changed order." Often times either you or the contractor may suggest an added repair or improvement that was not originally discussed. If you do any “add ons’ Make sure you receive a written “Change Order” in writing with the additional cost clearly spelled out.

Never make your final payment until all the work it completed.

We continue to send our best thoughts and wishes to those recovering from the devastation Sandy left behind. Throughout the recovery process, due dilligence will be key to working with your insurance company and contractors.

-Michael

For more great tips: check out Michael's 3 Bestselling Books:
Before You Buy! Find It, Fix It Flip It! and Ready, Set, Sold!
After Hurricane Sandy: Now What?

Posted Under: Quality of Life, Remodel & Renovate, Property Q&A | November 1, 2012 5:18 PM | 2,764 views | 1 comment
For all of you out there affected by Hurricane Sandy, myself and everyone at Trulia want to send our very best thoughts and wishes to your and your family. Personally, I am from New Jersey and many of my family members are still suffering without power and heat. If your home experienced damage as a result of the storm, you're probably reeling and also dealing with a deluge of information on the best next steps to take.

I have read all of the articles coming out in the media this week and I can tell you that the sheer amount of information and misinformation out there is truly daunting. With that in mind, I wanted to share the 5 best articles out there now about what to do in the days, weeks and months that follow Hurricane Sandy.
1. FEMA: Disaster Survivor Assistance - The official Federal Emergency Management Agency's site can help answer some FAQs about how to obtain assistance. They walk you through what to expect before and after you apply.
2. Suze Orman: After the Storm: What Now? - Suze breaks down insurance coverage for your home and car and discusses what's covered and what's not.
3. Wall Street Journal: Suffered Damage in Hurricane Sandy? What to Do Now - From where to stay to how to apply for FEMA assistance, this article covers a broad range of topics.
4. Phildelphia Inquirer: Sandy Leaves Behind a Deluge of Repair Needs - An easy-to-understand explaination of who is responsible for what in various scenarios.
5. TechNewsDaily: How to Avoid Hurricane Sandy Scams - All disasters bring out the best and the worst in people. Know what to look out for and avoid all kinds of scammers.
I want to stress the last point about avoiding scammers. Be wary of being taken advantage of in these troubling times. Don't be fooled and don't give unnecessary information or money to people until you can verify their authenticity and ability to help you pick up the pieces. There are so many heroes and good Samaritans helping one another right now, however, there are a few out there who will try to take advantage of other people in the midst of the crisis. Don't be a victim twice.

-Michael

For more great tips: check out Michael's 3 Bestselling Books:
Before You Buy! Find It, Fix It Flip It! and Ready, Set, Sold!
History Lesson: Get A Deal By Paying Attention to a Home's History

Posted Under: Market Conditions, Home Buying, Foreclosure | October 30, 2012 5:00 PM | 2,468 views | No comments
If you're like most Americans, you're looking for a deal on your next home purchase. The best way to identify those properties is to look for homes with a "battered history."

This sounds more ominous that it really is. This is what I mean by "battered:"
- Time on Market: If the property has only just been listed and put on the market, the seller will likely still be hopeful of receiving a full-price offer. If it's been languishing on the market for three or more months, this listing is growing stale fast and the owners will very likely be ready to make a deal.
- Price Chopped: If a house has had series of price reductions over the past few weeks or months, the realtor and the seller are struggling to find the bottom line price tag. This is house that wants to be sold. Jump on it.
- Botched Deal: If a house has just fallen out of escrow, meaning the house was under contract for sale but for some reason the deal didn't come together, the seller will be feeling burnt and frustrated and ready to just get this house off his or her hands.
- Time is Not On Their Side: Look for sellers on a desperate time line. Divorce, death in the family, job loss or relocation, facing foreclosure, advanced age or illness, purchase of another house are all motivating factors to sell quickly. As heart-wrenching as they can be, these life-stage, personal, financial, or event-driven factors make a seller highly motivated and give you leverage to snag a great deal.
-Michael

For more great tips: check out Michael's 3 Bestselling Books:
Before You Buy! Find It, Fix It Flip It! and Ready, Set, Sold!