Real Estate Articles & Blog – Don Dunning | What you don't know about real estate can hurt you!

New sales contract: protection or peril for you?

By Don Dunning | June 6, 2010

Would you read every word in the new, tightly printed, eight-page California Association of Realtor’s (C.A.R) residential contract? Probably not.

This contract, used by most real estate agents, has recently undergone its most extensive revision in the past eight years. Changes to this standard real estate purchase agreement can have a significant impact on the quality of your representation in a home sale transaction.

Some licensees have familiarized themselves with the additions and deletions; others may be clueless. To avoid potentially serious mistakes, make sure your real estate representative is in the know about these modifications.

New, Last-Minute Credit Check of Home Buyers

By Don Dunning | May 22, 2010

I have always counseled my buyers to be careful not to take on additional debt, or to even apply for more credit, right before they purchase a home or during the escrow period. This is because banks use ratios of borrowers’ debt to income to grant or refuse loans. In an effort to tighten up […]

Does your agent “stand in your shoes?”

By Don Dunning | May 14, 2010

In the overheated real estate market of 2004 to 2005, many buyers paid outrageously high prices for properties that were not special in quality or location. This included numerous ones that were decidedly underwhelming. Now, a plethora of purchasers are either victims of foreclosure, have sold for large losses or are paying mortgages on houses worth a lot less than their total loans.

Conversely, in today’s much weaker market, where prices have softened substantially, we see some homes listed at unrealistic amounts. These are the ones that sit unsold. In a number of situations, overpriced properties that did not sell were taken off the market and are now back on at equally improbable figures.

We can ask: “What advice, if any, did the agent give his or her buyer or seller?”

Low Down Payment Loans Return to California

By Don Dunning | May 1, 2010

One casualty of the mortgage meltdown was the disappearance, especially in California and other “declining markets,” of private mortgage insurance (PMI) companies. These were the ones that handled the majority of home loans where the borrower put down less than 20%. With PMI companies no longer backstopping these low-down mortgages, borrowers flocked to FHA loans, […]

Fannie Mae Changes Deed-in-Lieu Rules

By Don Dunning | April 25, 2010

The Federal National Mortgage Association, Fannie Mae (FNMA), recently changed its policies regarding deeds-in-lieu-of-foreclosure, by shortening the waiting period from four to two years for getting a new loan. This modification has been made “to reinforce the importance of borrowers working with their servicers when they are having difficulty repaying their debt,” per FNMA. They […]

Economist for State Realtors Estimates Short Life for New CA Tax Credit

By Don Dunning | April 22, 2010

On March 25th, I wrote about the additional 200 million dollars, for new and existing home purchases, that will become available for certain residential real estate purchases beginning May 1st, “Governor Signs New CA Tax Credit Into Law.” Unfortunately, according to calculations by California Association of Realtors economist Robert Kleinhenz, funds for this second round […]

Electronic Signatures Get Big Boost

By Don Dunning | April 15, 2010

Last December, I wrote about a product that is making my real estate life much easier ( “Heard of DocuSign?”). On April 8th, the Federal Housing Administration (FHA) announced it is now accepting electronic signatures “on third-party documents originated and signed outside of the lender’s control, including real estate contracts,” per the California Association of […]

Survey Reflects Changing Buyer Priorities

By Don Dunning | April 11, 2010

More than 22,000 homeowners who bought in the past nine years answered a recent survey. Done for builders to help them understand current buyer preferences, the key finding was that these owners plan to be “more practical” in their next purchase. For this group, big kitchens that include an island are still a must-have, but […]

Living near a school: things to consider

By Don Dunning | April 5, 2010

Buying a home close to a school can be wonderful or a huge mistake. It depends on the exact proximity of the house to the school, the school’s size, and the administration’s policies regarding neighborhood relations. The agents listing or selling the home often are unaware of the actual or potential problems, which is all the more reason for you to personally investigate before committing.

Federal Lead Dust Rules About to Take Effect

By Don Dunning | March 28, 2010

On April 22nd, a new federal regulation to protect children from lead poisoning is scheduled to be implemented. The Environmental Protection Agency (EPA) mandate will require “contractors who work in older homes…to become certified by a government-approved trainer and follow certain precautions, such as covering floors with plastic sheeting and dressing workers in protective clothing,” […]

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