There are several reasons why you should consider buying or selling property at this time of year. Traditionally, most people think the holidays are not a good time and prefer waiting until after the first of the year. However, this time of year is perfect. The last quarter of the year is advantageous to buyers and sellers because it is not as competitive as the rest of the year.

Prepare in Advance to Make a Strong Offer

If you are a serious buyer, now is the time to buy a house. As a Realtor, I suggest you bring these items to the table when you make an offer: A pre-approval letter, proof of funds, a check for the initial down payment, and your FICO scores. If you don’t have top notch FICO scores, it may be best to exclude them from the offer, however, if you’re a buyer with good FICO scores, always add them to the offer as it only makes it look stronger.

Include a Personal Letter with Your Offer

One of the most important things a buyer can do is let the seller know why you want to buy this property. Write a heartfelt, personal letter as to why you want this exact house. Are you looking for your first house? Will you care for it the way they have over the years? Perhaps you want to move into that particular city because of the school districts and are excited to raise your children in that neighborhood. Your Realtor can also include a letter to both the seller and the listing agent to help convince them of your sincerity in your offer.

Take Advantage of the Current Amazing Interest Rates

On the seller’s side, now is the best time to sell your house at top dollar in the least amount of time, because of the low inventory and the current amazing interest rates. For example, if you are a seller that bought property between 2005 and 2008, while you may not get back what the property was worth at its peak, you may be able to break even. It is possible to find a property at a better value with a much lower interest rate, which is all to your advantage.

Market Your Listing Online

Sellers, make sure you do two things: Please have professional photos taken of your property. The second thing you should do is have video taken for a virtual tour of your house. Doing both will showcase your house the best online. Pictures are what nearly everyone sees first.

The average age of buyers and sellers inCaliforniais 35 years old. So who do you want to market to? If you want to market to that particular age group, they are on YouTube, Facebook, and Twitter. I myself am a featured agent on Zillow and Trulia, and that’s where we get quite a lot of our leads.

How will a seller choose from different offers? How do you pick between three offers of the same amount? Will the buyer that writes the heartfelt letter to the seller have a greater chance? A knowledgeable Realtor can guide you to produce, or accept, the best offer. Every little bit of effort makes a difference.

While watching what has occurred with my buyers and sellers over the past few months, I have noticed that most buyers have been getting beaten up in the market. Due to the combination of low interest rates, fewer available properties for sale, and the high volume of cash buyers and investors, the market is extremely competitive. Many buyers have made four or five offers on properties, but have not been successful. Some have even told me “You know what? I’m just going to put my search on hold until next year.”

Many sellers are also waiting until next year to consider selling because people don’t usually buy houses in November or December. However, the fourth quarter of this year is probably the best opportunity to buy or sell property. Here’s why:

Buyers

Traditionally, the real estate market slows down considerably during an election year around November, thus allowing buyers an opportunity to purchase property in a less competitive market.

Buyers can also capitalize on interest rates as low as 3.25% with a 30 year fixed. Although rates might remain low over the next couple of years, around 4.5 to 5 percent, I doubt rates will remain as low as 3.5% for much longer. An interest rate increase of 1%, from 3.5 to 4.5, is still an amazing rate. Unfortunately, buyers will need to be more selective if rates increase by 1%, because they loose 10% of their purchase power.

My advice to buyers: Buy a property before the New Year while the interest rates are exceptional, and use January and February to fix up your new house.

Sellers

There are hundreds of buyers out there right now who would love to buy property, but are unable to do so due to fewer properties being available for sale. Consequently, buyers are willing to pay more for properties they want because of the low inventory. The combination of low interest rates and low inventory establishes the perfect climate for sellers to capitalize on today’s market.

Properties are selling quickly with multiple offers. Nearly every house that I’ve listed that was priced appropriately and showed well sold within ten days. Houses that sold within a week got five to ten offers. If a property is still on the market after two weeks, it is probably overpriced or has some cosmetic problems or feng shui issues.

Sellers hold control right now due to the low inventory so they don’t have to sell a property at the price it is listed for. Since there are fewer available properties, buyers are willing to pay more. By listing a house a little bit under market, sellers can draw interested buyers that are willing to pay $20,000/$30,000/$50,000 over appraisal values just to get into something.

My advice to sellers: Sell before the New Year while the interest rates are low and buyers have more purchasing power. You can then recover from the holiday season with the profits made from your sale.

Attorney General Kamala Harris has announced a new piece of legislation called the Homeowner Bill of Rights, effective January 1, 2013, that will protect homeowners and borrowers during the mortgage and foreclosure process. This law makes banks a lot more transparent, and allows homeowners to access courts to enforce their rights.

Under this law, a homeowner is entitled to request evidence that the foreclosing party is the rightful party to foreclose on the property in question. The homeowner can also request records from the bank documenting the property’s past mortgage payments. As of January 1, 2013, if a bank postpones a trustee sale for over ten days, then the homeowner must be notified in writing. Additionally, this legislation requires a single point of contact at the bank where homeowners can have all of their questions addressed without the frustration of being transferred to multiple departments.

The California Homeowner Bill of Rights will allow homeowners to find out exactly what is going on with their loans and if they are being foreclosed on. Currently, if a homeowner is going through a loan modification but is also in default, the foreclosure process and the loan modification process progress simultaneously. As of January 1, 2013, the foreclosure process will stop as soon as the homeowner starts a loan modification. However, the Homeowner Bill of Rights will not change anything for homeowners that applied for a loan modification before January 1, 2013, unless there has been a material change in income.

These changes are the result of a $25 billion settlement with the Big Five banks: Bank of America, Citibank, Chase, Wells Fargo, and GMAC (Ally Financial). For the next three years, from December 3, 2012 to December 3, 2015, the banks are required to distribute the settlement funds, up to $18 billion of which was secured by Attorney General Harris for California homeowners.

Principal Reductions and Refis

As of October 3, 2012, Bank of America has set aside $8 billion for principal reductions. This means that for some homeowners that are underwater, Bank of America can reduce the amount they owe on their home mortgage. For example, one homeowner owed $350,000 on a first mortgage and $200,000 on a second. Bank of America reduced the homeowner’s principal by $200,000, wiping out the second mortgage.

Because the banks will receive a credit as an incentive for offering principal reductions, I think they will work directly with homeowners and as a result, there will be very few or no residential foreclosures in California over the next five years. Many homeowners will be receiving favorable letters from their bank, essentially allowing them to stay in their homes. The big takeaway for underwater homeowners: Make sure to open your mail.

There is also $3 billion set aside for short refis to aid homeowners that have tried to refinance in the past, but were unable to do so because their property was no longer worth what they paid for it.

Short Sale Options

After December 31, 2012, we don’t know if the current short sale relief law will be extended into 2013. Whether the law gets extended or not, there are two options available to short sellers. I have an attorney that I can refer my clients to, who will look at your situation and discuss your options with you. One option is called insolvency, or what he refers to as the “Kodak moment”. The attorney, in essence, takes a picture of your financial situation when you do a short sale and when you are going to file bankruptcy. If, at that time, you have more liabilities than assets, then you would be considered insolvent and not have to pay taxes if the short sale occurred after January 1, 2013.

The second option is to protect your retirement fund during bankruptcy. Your 401(k) or IRA can be the one asset that you protect, while still being able to short sell your house and not pay taxes.

If you are underwater with your home loan and/or in default, call your bank, talk to them and see what programs you qualify for. You can also call me at (626) 253-4557. I’d love to sit down with you or refer you to a great attorney who can discuss your options with you.

As I reflect on all that has happened in my life personally and professionally in 2012, I am most proud of the many achievements I have had as the President of the Arcadia Association of REALTORS. I began this year striving to make a difference for our members in this difficult economic climate. The Arcadia Association of REALTORS started the year with 1775 members and we have not only retained our membership in a challenging market, our membership increased by over 100 members (up 7% YTD). The success of our members was always the main focus behind every decision we made this past year. With Andrew & Stephanie’s support, we beefed up our education 3 fold with relevant classes to help our members make more sales and get educated!
Through education, we provided more services than ever to our members. We increased communication through our new website we launched earlier in the year and we provided broker/member outreach programs (ex: New Member Orientation Reception). I am also very proud of starting the AllStAARs Toastmaster group for our members who would like to improve their speaking and presentation skills. I am very proud to be the founding President of this amazing group. This year Andrew Cooper and I focused on reducing expenses without sacrificing services. The Budget and Finance Committee did an amazing job changing the culture of our association. We made smart decisions that will benefit all the members in our great association.
We did so well this year, I was asked to be a panelist at the California Association of REALTORS President’s Forum. I had the pleasure of sharing the amazing things we are doing in Arcadia with President’s and President Elect’s throughout the state! On the panel, they asked what my favorite and least favorite moments were while I was President of the Arcadia Association of REALTORS. There are many things I really enjoyed about this Presidency. I really enjoyed making a difference for our members and I enjoyed the relationships I made this year. The most challenging responsibility is having the weight of the Association on my shoulders. I realize many of our members are struggling this year. Business has been difficult but I hope you took advantage of all the education your association offered this year because education will improve your business and help you grow as a professional so you are competitive in this market. I would like to thank all of my Board of Directors, committee chairs, committee members, amazing association staff, volunteers, AFFILIATES, and a huge thank you to Andrew Cooper, (in my opinion one of the best AE’s in the country), for a great team effort this year. I hope you, as members, felt the difference! I surrounded myself with great people who shared my vision and passion for making a difference. I had a phenomenal year as your President of the Arcadia Association of REALTORS and I look forward to a promising future.
In closing, I hope I have inspired others to follow in my footsteps and to get involved with our great Association! The Presidency actually forced me to grow professionally and personally and I am a better person because of it. I had to learn how to become more efficient with my time and I surrounded myself with hard working people. Everyone told me my business would suffer during my Presidency. I thank God every day that they were wrong. I had the best year of my career! Thanks again for everyone’s support and I loved representing you all this year as the President of the Arcadia Association of REALTORS!

CIRCUS VARGAS
November 22-December 3 | Times vary
Santa Anita Park
285 W. Huntington Dr. > Arcadia

For circus with a touch of Broadway, don’t miss this production of musical magnitude in its most exciting, innovative edition ever! Enjoy a splash of razzle-dazzle and an unbelievably entertaining extravaganza!

877.468.3861 | circusvargas.com

THE PASADENA SYMPHONY PRESENTS HOLIDAY CANDLELIGHT
December 1 | 7PM
All Saints Church
132 N. Euclid Ave. > Pasadena

Join the Pasadena Symphony as we ring in the holidays with an elegant Old-European style in a concert of holiday music amidst the architecturally exquisite and acoustically sonorous setting of All Saints Church

626.793.7172 | pasadenasymphony-pops.org

NOON YEAR’S EVE
December 31 | 9:30AM-3PM
Kidspace Children’s Museum
480 N. Arroyo Blvd. > Pasadena

Ring in the “Noon” year at Kidspace with live music, streamers, sparkling cider, and a balloon drop as we celebrate the end of 2012 and beginning of 2013. The balloon drop will occur at 12PM.

626.449.9144 | kidspacemuseum.org

PET NIGHT WITH SANTA AT ONE COLORADO
December 13 | 5-10pm
One Colorado
24 E. Union St. > Pasadena

Bring your furry pals to sit with Santa for a photo. A portion of the proceeds benefit the Pasadena Humane Society & SPCA. Festivities continue through the season with Santa photo sessions, choral performances by local choirs, and other special holiday performances.

626.564.1066 | onecolorado.com

GLENDORA LIBRARY’S SANTA PARTY
December 1 | 10AM-12PM
Glendora Public Library
140 S. Glendora Ave. > Glendora

Don’t miss Santa in Glendora! There will be crafts, refreshments, and stories. Be sure to bring your camera!

626.914.2357 | ci.glendora.ca.us

THE LOS ANGELES AUTO SHOW
November 30-December 9 | Times vary
Los Angeles Convention Center
1201 S. Figueroa St. > Los Angeles

The L.A. Auto Show offers a sneak peak at the world’s best new cars and car technology.

310.444.1850 | laautoshow.com

A CHRISTMAS CAROL
Various days from December 1-23 | Times vary
A Noise Within Theatre
3352 E. Foothill Blvd. > Pasadena

Join Ebenezer Scrooge on a fantastic journey that celebrates the spirit of the season. Bring the whole family and revel in a magical whirlwind tale through past, present and future that single-handedly defines the healing power of forgiveness.

626.356.3100 | anoisewithin.org

PASADENA HOLIDAY LOOK-IN HOME TOUR
December 1-2 | 9:30AM-4PM
The San Marino Center
1800 Huntington Dr. > San Marino

Tour four homes and enjoy our holiday boutique. This event benefits music organizations and education programs. Tickets are $30 in advance or $35 at the door.

626.793.7172 | pasadenaholidaylookin.org

WALT DISNEY CONCERT HALL NEW YEARS EVE
December 31 | 7PM, 10:30PM
Walt Disney Concert Hall
111 S. Grand Ave. > Los Angeles

Ring in the New Year with “Deck the Hall,” featuring Tony Award-winning actress, singer and songwriter Idina
Menzel. Tickets start at $68.

323.850.2000 | laphil.com

THE ARTHRITIS FOUNDATION’S FIRST ANNUAL LOS ANGELES JINGLE BELL RUN/WALK
December 9 | 8AM
Alex Theater
216 N. Brand Blvd. > Glendale

Wear a holiday-themed costume to get in the spirit of the season and join others in support of the Arthritis Foundation’s mission to eliminate arthritis.

323.954.5750 | lajbr.kintera.org

SANTA’S BRUNCH
December 15, 16 | 10AM and 11:30AM
Descanso Gardens
1418 Descanso Dr. > La Cañada Flintridge

Enjoy a visit with the man in red and a gourmet breakfast created by the chefs of Patina. Bring a camera. There are two seatings both days, and reservations are required.

818.949.4290 | descansogardens.org

FARMERS MARKET HANUKKAH CELEBRATION
December 9 | 2:30-5PM
The Los Angeles Farmers Market
6333 W. 3rd St. > Los Angeles

The holiday season kicks off with a free Hanukkah celebration and Menorah Lighting Ceremony.

323.933.9211 | farmersmarketla.com

HOLIDAY CHEER AT SOUTH LAKE & PODLEY PROPERTIES PASADENA
December 1 | 12-6PM
South Lake Business District
345 South Lake Ave. > Pasadena

Kick off the holidays with specials from local businesses, carriage rides, live music, and carolers. Stop by the Podley Properties Holiday Open House & Charity Gift Boutique 12-6PM for refreshments, gift ideas, and photos with Santa from 2-5PM.

626.792.1259 | southlakeavenue.org

HOLIDAY FESTIVALS

HOLIDAY SNOW FESTIVAL AND BREAKFAST WITH SANTA
December 1 | 9AM-2PM
Arcadia Community Center
365 Campus Dr. > Arcadia

This festival is free to the public and includes holiday entertainment, trolley train rides, dual sled runs, and two snow play areas! The $8 Breakfast with Santa requires early registration and includes photos and holiday entertainment.

626.574.5113 | arcadiaweekly.com/entertainment

FOOTHILLS FESTIVAL OF TREES
December 1 | 6PM
Annandale Golf Club
1 N. San Rafael Ave. > Pasadena

Celebrate the season with a brilliant display of Christmas trees and wreaths, uniquely themed and available for purchase. This annual gala benefits The Boys & Girls Club of the Foothills.

626.818.0076 | foothillsfestivaloftrees.com

HOLIDAY TREE LIGHTING
December 4 | 6-8PM
Plaza Park
428 S. Mission Dr. > San Gabriel

Join us as we officially welcome the holiday season! Festivities begin with the Jefferson Middle School Orchestra and Choir performing some of your favorite holiday tunes. The tree will be lit at 7PM.

626.308.2875 | sangabrielcity.com

TREE LIGHTING CEREMONY AND HOLIDAY PARADE
December 6 | 6PM Tree Lighting, 7PM Parade
Library Park, Parade on Myrtle Ave.
321 S. Myrtle Ave. > Monrovia

The Monrovia Old Town Merchants are proud to present the tree lighting ceremony and “All That Glitters is Gold” holiday parade. U.S. Gold Medalist Kim Rhode will serve as grand marshal.

626.256.8246 | www.ci.monrovia.ca.us

GLENDORA HOMETOWN CHRISTMAS PARADE
December 8 | 9AM
Glendora Village
Bennett Ave. & Glendora Ave. > Glendora

Our old-fashioned Christmas parade starts downtown, led by our award-winning GHS Tartan Band and ends La Fetra and Sandburg schools on Grand Avenue and Bennett Avenue.

626.857.3006 | glendorachristmasparade.com

CHRISTMAS TREE LANE LIGHTING CEREMONY
December 8 | 2PM Festival, 6PM Tree Lighting
E. Calaveras St. & Santa Rosa Ave. > Altadena

For over 80 years the “Mile of Christmas Trees” has been strung with 10,000 lights for the holidays. Don’t miss the oldest large-scale Christmas lighting spectacle in the United States.

626.403.1123 | christmastreelane.net

At Think RE*Link, we love giving back to the communities we care about most. That’s why we’re introducing the Friends and Family Program. Buy or sell with Think RE*Link and we’ll donate $500 of our commission to the organization of your choice when you close. It’s that simple. Give us a call today at 626.253.4557 to find our how you can make a difference in your neighborhood.

When my wife and I first bought our home, we noticed a lot of areas that could use improvement. Instead of getting bogged down by the negatives, we saw the potential. At first, we only wanted to fix the door. However, after brainstorming on improvements, we bit the bullet and went all-in with a plan to remodel the kitchen. It was an interesting, if not crazy, experience. You can learn from ourmistakes and “aha” moments by checking out the tips below.

Complete Construction Before You Move In 

In my previous blog, I wrote about going through boxes, (many unlabeled), when we first moved. Imagine the chaos that would ensue if we had to undergo the renovations while trying to sort out our stuff. Moving alone causes confusion and stress so  it would be advantageous to have construction done before you move in. It will also benefit you to call your contractor as early as possible because if your contractor is good, he will be booked weeks in advance and that will delay the day you begin construction.

A Happy Wife = A Happy Life

For all the males reading this, you must keep this in mind. You and your wife will occasionally disagree when it comes to making decisions. You need to find that happy medium between you and your wife that will allow both of you to be happy with your remodeled space. You need to compromise. Things become complicated when you have two people who are not willing to bend a little to make their counterpart happy.

As for me, I want my wife to be happy. She made the final call on all the decisions that were important to her.

Get Three Bids

Getting three bids allows you to find the contractor who can give you the most value for your money. If you work with Think RE*Link, we would be happy to give you referrals to three different affiliates. Even with these referrals, you will need to do your due diligence by checking review sites such as Yelp.

The point of getting three bids is to find the best value, not just the cheapest option. If Contractor A charges more, but can give you more services or faster construction, I would say go with that option. Cheap is not always better.  Oftentimes, this means they will be cutting corners to cut back the cost of supplies so they will make more money.

The bids from the contractors we contacted were very close.  Since our biggest concern was having the remodel complete before we moved in,  we went with a supplier that could work within our time frame.

Manage The Budget

Any improvements you make to the house will increase its resale value. However, this does not mean you should empty your bank account to pay for renovations.

Construction of the kitchen itself was not cheap, so we had to be smart about where our money was spent. The largest expense was the kitchen cabinets. To save money and time, we chose prefabricated over custom made cabinets.  Custom cabinets can cost up to double the price and you will need to allow extra time for the fabrication and installation.  You can purchase quality prefabricated cabinets that suit your style and your budget. Fortunately, my wife and I were able to find some great cabinets we are both happy with.

We also saved money on appliances. We applied for a Best Buy credit card and got a bunch of stuff at 0% interest for 18 months. Keeping an eye out for bargains and local deals helped us stay within our budget and freed up funds for any unexpected costs with the remodel.

Expect Everything To Take Longer Than Planned

There is always something that will cause a delay during the remodel, but that is all part of the process. Despite the six or seven days of delay during our kitchen construction, the process went well. We encountered a few unexpected expenses and we had a few issues with our contractor during construction. Some of the workers we hired (a plumber and electrician) did not show up at the agreed-upon time and we bought a light fixture that was way too big for the space it was going to occupy.  Other issues could not have been avoided and ranting and raving would not have solved the problem for anyone involved.

Try not to stress out too much if a delay or unexpected expense presents itself.  It is a part of life and it is definitely a part of remodeling. Give yourself an extra week or two before your scheduled move in date.  It is much better to be pleasantly surprised when the remodel is finished on time or ahead of schedule than upset because there is a delay.  Above all, stay calm and patient. Remodeling can be a painful process, but the results are almost always worth the wait.