The Truth About Real Estate Advertising - Open Houses

Myth No. 2 - Open houses will sell your home.

Selling a home is perhaps an even more stressful process than buying a home. First of all, you’re going to have many Realtors^® vying for your listing. They’re going to try to tell you all the great things they’ll do to sell your home. Chances are many agents will try to tell you how much they’ll advertise your house in house ads (which we’ve already dismissed as useless), and they’ll also try to convince you by pulling out the old signs from their trunk and promising an Open House every weekend until the house sells.

Now, let’s see how closely you’ve been paying attention. Remember how house ads only serve the real estate agents’ interests? Now, think about an Open House. What does it bring into your home? It brings a steady stream of people interested in buying a house – not necessarily your house, mind you, but interested in some house in the near future. And as a Realtor^® always on the lookout for the next client, it sure is nice to have people practically wave their hands and say, “Hey, look at me. I’m interested in buying a house and I don’t have a Realtor.^®”

Basically, the Open House is another lead-generating tool for Realtors^® that requires you to leave your house for a day while complete strangers take an unsupervised tour of your house and possessions. The truth of the matter is less than one of 10,000 people who walk into an Open House actually buy the house. It requires a great sacrifice on your part while providing very limited results.

Erich Salas

www.ErichSalas.com

Nipomo Elementary Schools Pre-Valentine's Day Taste L'Amour Fundraiser

This year's 2^nd Annual Taste l'Amour Wine Tasting & Gift Expo which was again hosted at Trilogy in Monarch Dunes offered everything last year's event did and more! Not only did everyone enjoy more wineries, more artists, more raffles to win and more one-of-a-kind gifts to buy, they also enjoyed the satisfaction of being part of the first organic gardening project for Nipomo’s grade schools. 

Inspired by the success of the event's premier in 2010 and encouraged by a deluge of compliments from both attendees and vendors, event organizers Jackie King with Barefoot Gardens and Ahly Mueller decided to step it up a notch this year and turn the free-admission event into a paid-admission fundraiser for their fledgling Nipomo Grade Schools Organic Garden Project.

So this year, with the invaluable help and support of Trilogy at Monarch Dunes, they decided to charge a $10 entry fee and raised over $2,100 through admissions and raffle ticket sales.” Event creator Jackie King says, ”Nipomo grade schools are the only ones in the county that don't have vegetable gardens for their students.” King, who is mother to her own Nipomo grade schooler, adds, “We want to help create grade school gardens for our community's kids to enjoy. They should have the same opportunities to have fun and learn about organic gardening as any other kids.”

This program aims to raise enough funds to fully finance the establishment of organic gardens at Dorthea Lange, Dana, and Nipomo Elementary Schools by the spring of 2013—that includes providing the materials, soil, and compost for raised beds as well as the first season's seeds and vegetable starts for the kids to plant. They will enlist the help of eager volunteers and the schools’ own 

parent-teacher organizations to help with the distribution of the funds.

The following is just a partial list of the local businesses that have made generous contributions to the schools by offering items and services for the event's raffles:

Jocko’s Steak House, Antonio’s Ristorante, Tanner Jack’s, Pi Whole Pizzeria, Me-N-Ed’s Pizza, Gibson Brothers BBQ, Laetitia Winery, Roblar Winery, Firestone Vineyards, Wood Winery, Per Bacco Cellars, Seasons Nails & Spa, Massage by Bill Morby of I’ve Got Your Back, Ruda Chiropractic, Gateway Picture Framing, Gerald’s Olde Thyme Chocolates, Ada’s Sweet Delights, The California Bee Co., La Bella Olives, Art of Flowers, Cloud 9 Design

Artists:

Sandra Johnson, Joe Tomei, Lorraine Cody, Glass Fusing by Ruby Glass, SLOCO Data and Printing, The Halcyon Store, Tierra Landscape Company, Lone Pine Nursery, Cherry Lane Nursery, Sweet Harvest Hydroponics and Organics, Barefoot Gardens Landscape Consulting and Design, GROW YOUR OWN Organic Garden Coaching for the Dirty Masses!

Thank's to all the support from everyone in this great community of ours!!
Erich Salas (Volunteer)

The Truth About Real Estate Advertising - Solving the MLS Riddle:

What It Is & How It Works

The Multiple Listing Service is essentially a huge database including every home that’s listed for sale throughout the entire region. Many Realtors® would like to have you believe that they are the only person with access to this information. The truth of the matter is that any licensed real estate professional has access to

the MLS and can give you information about any house listed for sale.

Why this is important is because house ads are designed to generate hot leads for Realtors.® If you’re unaware that any licensed real estate professional can provide information regarding the advertised home, chances are you’re going to call the agent who advertised the house. Here’s the problem: Again, this is choosing your real estate representation by default. You know nothing about this agent other than the fact he/she advertised a house that piqued your interest.

The better alternative for a consumer is to have a Realtor® with whom you have built a strong working relationship, just as you have a family doctor, accountant or lawyer. This is someone you know, trust and feel comfortable with. Then, the next time you see John Doe advertising a house, rather than calling him, you call your

personal Realtor.® That way, not only can you trust any information you’re given, you avoid calling a complete stranger and most likely avoid ending up on another mailing list.

Erich Salas

Fighting Foreclosure - My Personal Battle - Introduction

When I sold my house in San Jose back in August of 2005 and bought a PUD down here Grover Beach, I never thought I'd be facing a situation like I'm facing today. Besides learning about foreclosures while studying for my real estate exam, I barely knew what it really meant. It wasn't a subject that many people spoke about at the peak of the market. Everything was going great and people were making lot's of money in real estate. I too caught the "real estate" bug and extended my credit and bought investment properties that were part of my demise.

Today I now know what foreclosure means on a personal level. It means that on any given day, all I've ever worked for in life can be taken from me at the county court steps if the bank so desires. It means the $65K I put down on my home will be gone like the wind and the bank will lose over $130K because of the 47% drop in value that has occurred since I bought in 2005. It means selling my beloved Charger, filing bankruptcy and attempting to do a "loan modification" that according to the press is nearly impossible. It means life ain't easy!!


On the bright side, whether I get a loan modification or I lose my home to foreclosure,  it will at least end a two year battle with stress, anxiety, mild depression and all the other things that go with the thought of losing everything. My battle starts today when I FedEx my loan mod docs back to BofA and see if they will have mercy and give me a 2nd chance. That's all I want! I'm not asking to lower my interest rate, lower my loan balance (paid $319k in 2005 and now worth $170k) or even forgive any of my missed payments. I just want a 2nd chance to make things right and get on with my life with a fresh start with my payments.

So come on BofA, prove that these load mods can work and give me a 2nd chance.


To Be Continued........
Erich Salas

The Truth About Real Estate Advertising

Real Estate Agents Tell You Advertising is for Your Benefit. Find Out Who’s Really Benefiting from Their Ads and How to Select the Right Real Estate Professional For Your Needs.

In the following weeks, I’m going to address four of the biggest myths in real estate advertising, in the process educating you on how to select the best real estate professional the next time you’re ready to move. I invite you to read this report and hold on to it until the need arises to hire a Realtor.^® 

Myth No. 1 - If you hire a Realtor^® who will advertise your home, it will help your house sell.

Surely you've seen the ads. In fact, as a whole, they’re hard to miss. Newspaper real estate sections and the free real estate magazines you pick up in grocery stores and realty offices are full of page after page of nothing but house advertisements. However, decades of research show that less than one percent of buyers actually buy the house they called on from the ad. How can this be? Why would Realtors^® keep paying for these ads, you ask? Well, keep reading.

House ads are designed to serve Realtors,^® not maximize value for the consumer. When you select a real estate company or Realtor^® based on the quantity of house ads they run, it’s a recipe for disaster. In essence, you’re selecting a Realtor^® by default, and in hindsight, I don’t think anyone wants to do that.

Realtors^® who run house ads do so as an enticement for you to call them. When you call, the Realtor^® immediately knows you’re a hot prospect, and they begin asking questions about what type of home you’re looking for. They now have the opportunity to convince you they can help you find a match. As soon as you agree, you’ve selected your Realtor^® by default.

In reality, consumers should be the ones doing the interviewing by calling Realtors^® and asking about their qualifications and experience. We all have access to the same property information, so anyone you work with should be able to find a match to your property. What you should be looking for in a Realtor^® is a match to your personality and style.

It’s important to me for my prospective clients to understand how the Multiple Listing Service (MLS) works (see “Solving the MLS Riddle”). The truth of the matter is that more than 60 percent of all homes sold are sold through the MLS by effective real estate agents, not classified real estate advertising or house ads. Additionally, those agents who consistently run tons of house ads often have less time and money to provide high-quality service.

Rather than advertising homes, I choose to advertise myself and the services I can provide. I know long-term success in real estate is ultimately about developing a partnership with my clientele, and I don’t want clients to choose me by happenstance. This creates a win-win situation in that consumers who choose me as their Realtor^® have a knowledgeable sounding board for any questions that might arise at any time. Much like having a family doctor or lawyer, many savvy consumers prefer to have a Realtor^® with whom they have developed a relationship long before they need to buy or sell a home.

So when selecting your Realtor,^® pay no attention to who is running the most house ads. Agents who tell you they’ll advertise your house are only serving their own needs, not helping you. If at the listing presentation the agent promises to advertise your home, they’re doing so primarily for their own personal gain, leaving less time to focus on doing the most effective things to get your house sold.

Erich Salas

Wells Fargo lowers credit score requirement for FHA mortgages

Wells Fargo recently announced that effective Jan. 15, 2011, it will accept FHA-insured mortgages for borrowers with credit scores as low as 500.  For borrowers with credit scores ranging from 500 to 579, a 10 percent down payment is required, and the down payment may not be a gift or be part of a down payment assistance program.  Borrowers with credit scores of 580 to 599 are required to put down 5 percent, and the down payment may not be a gift or part of a down payment assistance program. Borrowers with a credit score of 600 or higher are required to have a 3.5 percent down payment, and a gift is acceptable.  For all borrowers, seller concessions are limited to 3 percent.

How To Avoid Paying Too Much For Your Home - Final Tips

SIMPLY PUT, PAYING TOO MUCH CAN JEOPARDIZE THE INTEGRITY OF YOUR INVESTMENT. HERE’S VITAL INFORMATION TO HELP YOU AVOID OVERPAYING FOR YOUR HOME.

A Special Report Prepared By: Erich Salas

Tip No. 22 - Stay out of bidding wars.

Sometimes, the seller’s Realtor® will try to scare a hesitant buyer with the threat of another serious potential buyer. Don’t fall into this trap—it will only cost you money. If there is another buyer, then the seller’s agent will try to get a bidding war going. In these situations, whoever wins also loses because the buyer ends up overpaying.

If there isn’t another buyer, there’s a good chance that “the other deal” will fall through and the seller’s agent will come calling. Be sure to let the other side know that you might be interested if that happens before you walk away.

Tip No. 23 - Make sure you get a written disclosure of all known defects.

The good news for buyers is that the law now requires sellers to make complete disclosure of known material defects. Make sure you get it in writing. And carefully consider how these defects might affect what you’re willing to pay.

Tip No. 24 - Know your hidden costs.

There’s more to buying a home than the mortgage. Don’t forget to factor in mortgage insurance, appraisal fees, inspection fees, transfer taxes, title insurance and every other dollar you’ll have to spend in order to know what you’re really paying for your new home.

A word of advice is to be aware of additional costs above and beyond the final negotiated price of your home. Know how much you are really paying for your new home.

Now, armed with this  knowledge, you stand a much better chance of avoiding overpaying for your home.

As you can imagine, there is no learning curve that forgives mistakes made during the home-buying process. If I had to choose only one tip from the several I just listed, it would be this: Get yourself a good Realtor®—someone whose sole interest in the deal is to watch out for your interests. If you take this advice, the rest will follow. A truly sharp agent will make sure that you follow all of the other suggestions I’ve included in this report. And please feel free to use the checklist I’ve supplied with this report to help in your home search.

Please feel free to call me if you would like further explanation on any of these topics, or if you have any real estate questions at all. I simply see my mission as striving to be as helpful as I possibly can to area home owners. I hope this special report provides the information you need to be an informed home Buyer or seller......


Erich Salas

The CA Real Estate Doctor: CUSTOM HOUSE RESTAURANT in Avila Beach, CA

The CA Real Estate Doctor: CUSTOM HOUSE RESTAURANT in Avila Beach, CA: "If you haven’t been to the Custom House Restaurant in Avila Beach lately, you owe yourself a visit. The Custom House in Avila Beach is locat..."

CUSTOM HOUSE RESTAURANT in Avila Beach, CA

If you haven’t been to the Custom House Restaurant in Avila Beach lately, you owe yourself a visit. The Custom House in Avila Beach is located along the blue Pacific, right in between Los Angeles and San Francisco, Avila enjoys the friendliest climate on California’s Central Coast. You’ll find that same small-town charm you remember, along with the warm sunny microclimate and the same beautiful beaches, but now they’re surrounded by world-class amenities such as the Custom House Restaurant.

Although I don't get out to the Custom House as much as would like to, it is still one of my favorite places to go enjoy great food, drinks, the CA beach atmosphere and great weather. The big bar and beer selection are one of the best on the "Central Coast". Avila Beach in it's self is one of the best beach town's in California with it's great year round weather, it's always a great place to visit.

For more info on the Custom House and it's menu please go to the link below;

http://www.oldcustomhouse.com

Erich Salas
www.ErichSalas.com

San Luis Obispo County January 2011 Sold SFR Statistics

Active: 0

Pending: 0

Sold: 168

Other: 0

Total: 168

	Bedrooms	Bathrooms	Square Feet	List Price	Selling Price	DOM/CDOM
Minimum	1	1.00	462	$56,000	$35,000	0/0
Average	3	2.37	1,906	$471,181	$441,385	129/148
Median	3	2.00	1,718	$370,900	$345,000	94/100
Maximum	10	5.00	5,500	$2,995,000	$2,450,000	903/914
Total Dollar Value					$74,152,692

How To Avoid Paying Too Much For Your Home - Tip #19, #20 & #21

SIMPLY PUT, PAYING TOO MUCH CAN JEOPARDIZE THE INTEGRITY OF YOUR INVESTMENT. HERE’S VITAL INFORMATION TO HELP YOU AVOID OVERPAYING FOR YOUR HOME.

A Special Report Prepared By: Erich Salas

Tip No. 19 - Check your emotions at the  door during negotiations.

One of the costliest mistakes you can make is letting the sellers know how much you love their home. Once you’ve let it slip, you can just about forget about negotiating the price—the other side knows how motivated you are. In fact, a seller may see it as an opportunity to squeeze a little more money out of you even when you’ve made a good offer to start.

No matter how wonderful a home is, no matter how much you want it, keep it to yourself.

Tip No. 20 - Don’t be pressured into a quick deal if it doesn't feel right.

While you want to move expeditiously once you’re in negotiations, don’t let the other side pressure you into a quick close. It may be a sign that there’s something you should know, but don’t. And the reason could be worth money.

Tip No. 21 - Don’t be afraid to negotiate.

You may be the type of person who prefers a hard-and-fast price tag on everything. “I don’t like to haggle,” you say. But negotiation is the key to getting a good deal. If your goal is to get the best home possible for the least amount of money, then you had better be prepared to play.

Please feel free to call me if you would like further explanation on any of these topics, or if you have any real estate questions at all. I simply see my mission as striving to be as helpful as I possibly can to area home owners. I hope this special report provides the information you need to be an informed home Buyer or seller......

Erich Salas

www.ErichSalas.com

How To Avoid Paying Too Much For Your Home - Tip #16, #17 & #18

SIMPLY PUT, PAYING TOO MUCH CAN JEOPARDIZE THE INTEGRITY OF YOUR INVESTMENT. HERE’S VITAL INFORMATION TO HELP YOU AVOID OVERPAYING FOR YOUR HOME.

A Special Report Prepared By: Erich Salas

Tip No. 16 - Learn as much as you can about the seller’s situation.

It’s true what they say: Knowledge is power. The reasons behind a sale can often be used to your competitive advantage during negotiations. For example, a seller whose company has transferred him to another city is probably more motivated to sell than someone who is still looking for a new home.

Other signs of a motivated seller include a vacant house, or a house that’s been on the market for several months with several reductions in the asking price.

Tip No. 17 - Keep your own situation to yourself.

Information can be used against you as well. How much you’re willing to spend, the size of mortgage you can afford, your move-in deadline—it all can be used to extract more money out of your pocket. Be sure to tell your agent everything he or she needs to know to be effective on your behalf—how much you have for a down payment, the size of the mortgage you can afford, etc. However, keep your personal circumstances and timeline to yourself.

Tip No. 18 - Use time to your advantage.

Just as you have a time frame in which you wish to buy, the seller almost certainly has a deadline of his own. If you can learn the seller’s deadline, it’s another piece of information that can be used to negotiate  a better deal.