Answers by Michael Delehanty

This is such a good question and unfortunately, it's impossible to give you a thorough answer in this platform. However, don't think about broker vs big bank. Instead, you need to find a "direct lender" which means the lending institution you are using has their own funds to give to you. To clarify, a big bank is a direct lender but I'm not referring to a big bank. Instead, I'm referring to a local loan broker who works for a company that has their own money to lend to you. For example, in our area, I like to use CMG Mortgage because they are a directly lender but they are also a broker which means they have access to loan products both in-house and on the general market. Depending on the type of borrower you are (price range, first time, etc), the broker may find a program inside their portfolio or outside that works best for you and they have access to both. But here is the most important part of the equation: a direct lender will have the underwriting department either local or within the same office. This is extremely important since most loans fall apart in the underwriting process. But if the underwriter is local, she/he can work with your loan officer to keep the file moving forward while many files fail when the underwriter is on the other side of the country. Big banks have centralized underwriting and that is the problem. It is more than just getting great rates and low fees. Your loan company also needs to maintain a quick pace and communicate well and follow the guidelines of the contract. Without that, some buyers lose their dream home because the lender does not perform and the contract gets cancelled. Not sure this all makes sense so if not, ask your Real Estate agent for a suggestion to a great direct lender. Or reach out and I will give you some suggestions.

In general, buyers like two types of homes. The first is the perfect property fixed up to perfection. The second is an old home that has not been touched or updated in 40 years or more. Those that are somewhere in between, which is the majority of properties, can be challenging as to best prepare them for market. If your agent says you will get a better sale if you update your kitchen, ask how much are you talking about. For example, if you spend $40,000 to update your kitchen and you will net $80,000 to $100,000 more on the sale, then you might find a way to borrow to get the work done. You could use Compass Concierge or some other product to get the cash if that sounds good to you. However, if you are going to spend $40k to net just $60k, then I don't think the risk and effort is worth it. Be safe, and just sell as is though you might consider a quick coat of paint since that can have a big impact. One other thing to note, if you just don't have access to the $ to update your kitchen, please don't feel bad about it. Just sell the home without updates and take the profits available to you. Don't let an agent pressure you into something you don't want.

Since i dont' know what the inside of your home looks like, I can only speculate on some of the issues. Is it dark furniture? Use staging that is better. Is it a lack of interior lighting? Add some lamps. Is it heavy blind or tall shrubs? Fix those. You could also add some lights to the back patio so it radiates through the windows. Lastly, you can paint the walls a lighter color if they are currently dark. Good luck.

You should be very careful co-signing on a home with your cousin because you are correct about what might happen if he stops paying the loan. However, if you go into the contract correctly, you would also be a co-owner of the home and you could possibly sell to get back your money if your cousin defaults on the loan. However, I feel the bigger issue is the impact it will have on your credit. Even though your cousin makes the payments, the full amount will show on your credit and that could hamper your ability to buy your own home (or some major purchase) due to credit limitations.

In some ways, your own neighbors could give you some insight into what you should do to improve the exterior of your home. It's easy to tell you to paint and replace the front door and to improve the front yard with low water use plants /mulch. However, budget can dictate what is possible and you should make sure what you do matches others in the area. For example, if most homes have old garage doors, don't go buy an expensive door with glass inserts. If others have original front doors, don't buy a fully modern new door made from hardwood. If others have the same siding as you, make sure yours is painted to look as good and repair anything that is damaged. The best way to approach improvements is to 1. Fix anything that is broken or about to be broken . 2. Fix anything that is overgrown or worn out. 3. Improve to a style and condition that matches other good homes in the area and remember not to "over improve" since you won't be able to charge a premium based on neighborhood limitations. One thing I learned a long time ago is this: Weeds mowed down to a consistent level look better than an amazing but overgrown lawn.

Buyers typically want two types of homes: Fully remodeled and nearly perfect. Or untouched for decades and needs literally everything. Unfortunately, your home falls in the middle of those two extremes so it likely feels very outdated with 25 year old fixtures but is still a somewhat newer property overall. Since I have not seen your home, I can only speculate that it needs flooring, paint and appliances at the minimum and I would suggest you consider those items to start. Of course, your local market will determine just how much your home can sell for so your agent needs to guide you in determining what your home will sell for when updated vs as is. I would think you are better off with a mild refresh but some areas just don't support that increase in value and comps in your area will give the best information as to how to proceed. Remember: spend a dollar to make two or three. Don't spend a dollar to make one.

Unfortunately, it will be awkward no matter which direction you take. However, there is a good way to work through this issue and still save face with everyone around you. Hire a qualified Real Estate agent to sell your house but let that person know you have a close relative that you did not hire and that person is looking for a referral fee as part of the sale. I'm confident the agent you hire will be willing to pay a 25% referral to your SIL in order to secure the listing though it's possible that agent might want the higher side of fees typical for your area. Your SIL makes some income on the sale and can monitor how a great local Real Estate agent works to get your home sold. It's a win for everyone and I've done this several times myself when I'm hired to list a home but need to keep a family member happy along the way.

It is important for your Real Estate agent to help guide you through this situation. He/she should have discussed this potential with you prior to getting into a bidding war on the home. Now that you are here, your agent needs to explain just what type of leverage you have in this situation. If I was on the listing side and the market is strong, I would not split the difference at all. Either you cover the additional costs or you cancel and we move on to the next buyer. If the market is not that strong, then your agent will understand if you can negotiate some sort of deal where the price is lowered - assuming your lender cannot find a way to absorb the extra costs into the deal. Your agent and lender need to have your back to help get this solved. I'm sure you have options.

I think this is an extremely difficult question to answer in generic terms. For example, I once had a client buy a home in an "up and coming" neighborhood in Oakland, only to find out a few years later it was simply moving laterally, or perhaps even downward even though most of the economic factors were improving. It all had to do with the new residents that were replacing those that moved out. It also had to do with the local businesses and over time, some of them were closing with nothing new coming into the area and also, people started to focus on other neighborhoods which further hurt the neighborhood of my clients. They eventually sold and that was a good move for them. If I was trying to evaluate a new area, I might look at those established neighborhoods and try to identify which are overpriced and which are in line to get traction next. For example, in a nearby community named Pleasant Hill, the main focus is an area called Poets Corner but savvy buyers have known for years that it's much better to focus on the neighborhood a few blocks away called Gregory Gardens because the homes are the same (as well as schools) but prices are much more affordable.

I"m sure each area has it's own standard procedures but in my area (San Franscisco) the buyer will typically ask the seller to pay off any solar liens as part of the purchase, even if the system is nearly new. Few buyers will want to take on a solar lease and when I represent buyers, I almost always make sure the sellers pay off anything owing on a solar system. Of course, if the home is desirable and other buyers are writing offers at the same time, then the buyer might be forced to alter the demand to pay off the solar. On the seller side, if you are thinking of listing your home anytime in the near future, then please remember there is a chance you could be asked to pay off the lien if you decide to sell.

This is one of my favorite topics to discuss because people can get so bogged down in the details of a home inspection. Although ever issue can be important to a buyer, i feel it's best to focus on those items called out as "health and safety" such as electrical violations, foundation damage, drainage problems, fire code violations, etc. Small items like broken windows or damaged doors can be fixed easily. The bigger questions are how those windows or doors were damaged as well as other things that directly affect your daily life in the home. It is also extremely important to use an inspector that is trusted so don't just hire anyone and typically, don't hire a company that does all inspections under one umbrella. Instead, ask your agent for inspection advice and make sure your agent is qualified to help you review the reports to determine just what should be considered and how to address those issues with the contract going forward.

I know this answer isn't what other agents are saying, but I feel you are correct to focus on how the home looks while walking through a property. Is the paint new? Is the yard landscaped well? Are there stains in the flooring? Are the countertops new? Do you like how the home flows from room to room? Do you like the location of the bedrooms? Is the garage easily accessible? Is there a garage? All of these questions are relevant to how the home lives day to day. Secondly, I would focus on the neighbors. Is there a old house across the street? That might be a good thing meaning the owner is older and could look after your property during the daytime hours. Are there multiple run down homes in the area? Does the next door neighbor have six cars in the driveway and only one is operational? That could be a huge red flag. Is there a school nearby, stores, busy roads, etc? All of these could be good or bad depending on what you want. Once you go through this list and still like the property, then take the time to review the disclosures to see if there are any issues with the home not easily identifiable during the initial walk through. Look closely at the inspections and other property data like tax records. Once you have reviewed all of this information, then have your agent run comps to see how the price looks and with that, you can make feel good about moving forward with an offer or continuing your search. Good luck.