What do buyers and sellers fail to account for in a

G2 Real Estate | San Francisco Chronicle and SFGate.com | Sunday, March 22, 2015
EB/NB/PN/WB
REAL ESTATE
Equity conversion helps
senior remain in home
Mortgage adviser:
Dominique Stevens.
Property type: Singlefamily home in San Mateo.
SOUND OFF
What do buyers and sellers fail
to account for in a transaction?
Loan amount: $355,000
at 4.75 percent.
Loan terms: Home Equity Conversion Mortgage.
Backstory: Stevens’
client, a small-business
owner, wanted to refinance her home and lower
her monthly mortgage
payment. The borrower
and her husband had built
a retail business, and they
were looking forward to
their retirement. However,
her husband suddenly
died, leaving her with the
business to manage on her
own.
Stevens discovered her
client was eligible for the
Home Equity Conversion
Mortgage. This Federal
Housing Administration
loan program allows seniors who are 62 years of
age and older to halt mortgage payments forever.
Stevens’ client was also
entitled to receive $50,000
cash-out at closing.
Stevens’ client is very
pleased, for a great weight
has been lifted. She can
now hire a part-time
worker at the store. This
will free up her time to
rest, visit family and enjoy
her retirement years.
The FHA guarantees
that her home is protected
for life. She will never have
to pay back the loan until
she moves or her heirs
inherit the property.
No matter how long she
stays in the home, no one
will have to pay back more
than the loan value of the
property. The loan is insured by the FHA, and the
FHA will make up any
shortfall if there should be
any. There are no income
or credit requirements. As
non-taxable income, it
does not affect her Medicare, Social Security or
pensions.
Dominique Stevens,
Advantage Home Loans,
(415)250-8908,
ds@dominiquestevens.com
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A: Purchasing a home is stressful
— and stress can lead to mistakes.
This is why you need a real estate
agent and a housing counselor on
your side.
Keep in mind that your loan
product is a long-term financial
commitment, so you need to understand how it is going to work
for you. Have your agent and
housing counselor go over the
specifics of your prospective loan,
explaining your future options
and ascertaining that the loan is
affordable. Also, be sure you have
a plan in place for a possible refinance down the road.
An inspection is a vital part of
any home purchase because it
details the condition of the property. Make sure that what you will
be paying, as the property’s buyer,
is agreed upon by the seller. Put in
the contract that you want contingencies for certain items in the
inspection to be repaired. Identify
anything that may allow you to
renegotiate the final price — you
want to buy a sound investment.
Finding appropriate insurance
is necessary. Sometimes insurance
will cover only a certain number of
claims, equating to less than the
coverage for which you will be
paying. In this case, your premium
might be too high. Make sure you
have a plan that covers needs such
as replacement of personal items.
Also, be sure to garner liability
coverage.
Vincent Alvarenga,
Mission Economic Development Agency,
(415) 282-3334 ext. 101,
homeownership@medasf.org
A: When we start working with
buyers and sellers, we offer them a
few obvious tips. We advise buyers
to have their finances in order, to
obtain a loan pre-approval letter
and not to make lavish purchases.
We explain to our sellers why their
house needs to look marketable and
ask that they disclose everything
they know about the property. But
what happens once we are in contract? Here’s what to consider.
For buyers:
1 Read the disclosures. As a Realtor, I read the disclosures, but you
have to read them, too. It is your
property, so you shouldn’t sign any
documents without reading them.
1 Pay attention to the transaction’s
deadlines: contingencies removal,
closing dates.
1 Have all the closing funds together to close the transaction on time.
1 Avoid asking for credits, a price
reduction or a seller’s property
after removing the contingencies.
For sellers:
1 Disclose all known facts; be prepared to answer questions and
produce evidence, if necessary.
1 Be specific about any personal
property.
1 Check the preliminary title report, and address all potential issues: incorrect names, liens, easements, boundaries, etc.
1 Leave the property in good, clean
condition.
Alina Aeby, Pacific Union and Christie’s
International Real Estate,
(415) 744-4844, Alina.Aeby@pacunion.com
A: The power of live conversation
can be underestimated in this age
of technology, especially as it relates to fast-moving real estate
transactions.
Buyers and sellers are using
technology to be faster and more
efficient with communicating via
text, e-mail, etc. While this does
facilitate faster communication, it’s
important to remember that real
estate transactions can also be
emotional, and technology does not
always translate emotions effectively. Feelings matter, and deals come
together (or fall apart) based on
what is communicated or interpreted.
Live conversation during transactions can quickly clear up misconceptions or assumptions faster
and more cohesively than an ongoing exchange of e-mails or text
messages back and forth. Tone of
voice, clarity and questions that
evolve based on the flow of conversation can be assessed quickly,
accurately and will save both buyers and sellers lots of money and
time when done correctly. Don’t
underestimate the power of communicating the old-fashioned way
when it comes to effective real
estate transactions.
Nick Granoski,
Alain Pinel Realtors,
(650) 269-8856,
Nick@Granoski.com
Want to contribute to
Sound Off?
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