We sell homes from L.A. to Palm Springs and we're based out of Pomona, CA. As a real estate agent Jose Perez and Associates offers insights and updates into the housing market in Pomona, Chino, Chino Hills, Ontario, Eastvale, Norco, Corona, Riverside, Whittier, Downey, Covina, and West Covina.
These are buyers that are making instant cash offers, thus the “i” in iBuyer, with flexible terms, usually at a heavily discounted price. Some of the biggest known iBuyers just pulled out from buying real estate last week.
This makes for very interesting food for thought. Zillow is a billion dollar company that has gathered great data throughout the years. Why do you think they’ve pulled out? What do they know? If you had that information, would you sell now rather than later?
The following was a great read by Brenda Richardson from Forbes regarding the impact a seller had.
The ripple effect of the iBuying tumult is upsetting people like Jeramiah Dooley, who is trying to sell his two-story townhome in Charlotte, North Carolina. After receiving bids from Zillow, Offerpad and Opendoor, Dooley told Forbes that Zillow made the highest offer on the home, and he signed a contract on January 13.
“They gave me up to 90 days to close, which was perfect because I am scheduled to actually move on the 30th of this month,” Dooley said. “Then the day before yesterday, I got the same email that looks like everyone else has gotten, basically blaming the latest public health orders issued for a wholesale cancellation of every house that Zillow had under contract to buy.”
Dooley said he was given 48 hours to choose between two options from Zillow: “I could take a check for $5,000. That’s $1,000 in earnest money that they were contractually obligated to pay me for breaking the contract and $4,000 extra for the trouble. Or they would pay for a Realtor to relist the house. They were just going to cancel the contract and walk away.”
Faced with that dilemma, the father of two said, “I chose the money. I didn’t have any choice. And the $5,000 doesn’t come close to the cost of what I put into getting the house ready to sell as well as what it’s going to cost me now that I have an additional mortgage payment that I have to take care of until I can find someone to buy the townhome.”
He noted, “I understand the financial part of it. I understand that Zillow feels like there is going to be a downturn in the market, and they need to get out from under these contracts now. Even if they have to pay some money to get out, the chances are the houses will be available on the market for less money in the next few months. I understand that. It stinks for me personally, but I understand how the math works.”
Dooley said he could fully grasp if Zillow had said it would halt any offers that were in the negotiating stage. “But this was a contract that had been in place for almost exactly three months, and then we were less than 10 business days from closing. And we would have never had to have been in the same room,” he pointed out. “The contracts were done. The lawyers could have sent the papers back and forth.”
He said, “What has offended me the most, what I think has insulted me the most is that every step along the way, they have blamed these health orders. They have blamed this on decisions being made by health-care officials. They have blamed this on wanting to protect their employees and customers. They’ve very much latched onto this is a COVID-19 problem to the point where when they sent me the termination agreement, the agreement is called the coronavirus termination agreement, which is insulting. It’s taking this epidemic and using it as air cover for making a financial decision that just ends up screwing every customer that they are trying to do business with.”
Dooley added, “We absolutely could have closed on this house without ever having to break any sort of guidelines around social distancing. And so for Zillow to blame what’s going on from a health-care standpoint for their financial decision to break this contract and put that burden back on me and their customers is really insulting.”
Every year we like to say thank you to our past clients and future clients. We create a fun event for the whole family with food, raffles, cookie decorating and we even bring Santa Claus so you can create a great family photo for free! Here is a recap of our 2019 event. We look forward to making each year bigger and better.
It's a great day at Jose Perez and Associates. My name is Jose Perez. I'm here to give you an update for the month of November. So there's three topics that I want to talk to you guys about. Number one, if you are looking to buy or sell and you're thinking about holding off until next year, please stay tuned to what I have to say today. Number two, I'd like to give you guys access to the new buyer and seller guides and number three guys, business plan. Are you working on your business plan?
Number one, are you're thinking about waiting until 2020 to buy or sell? Remember in economics class your senior year, they talked about supply and demand, well bring that thought back to now. So what happens is at the end of the year, most people, start holding off. They get in holiday mode, both buyers, sellers, and even some real estate agents, and they hold off until next year. Here's what happens if you're a seller, and there's less properties on the market, and there's still a high demand of buyers. What happens to your property? It looks more attractive. If you wait until January and you put it on the market, then there's more sellers that are thinking like you. And guess what happens? Now you have more competition because there's more houses on the market. So if you're a seller and you're thinking about selling, give us a call. We will be glad to analyze your particular property to see if it would make sense for you to sell now or wait until January. If you're thinking about buying. Same concept guys. There is going to be more serious sellers right now during the holiday season. There's also less buyers. Come January, you know, new year new me, everybody's new year's resolution to buy a house. You're going to have more competition out there. So if you're thinking about buying, consider that you have less competition during the holidays. Keep that in mind and again, if you're looking to get a strategy session as to when is the best time to buy or sell, give us a call for a personalized consultation.
Number two guys I want to give you guys access to our new buyer and seller guys, we are going to be rolling those out on December 5th so please click on our website and check those out. The winter additions are coming out.
Lastly guys, I am working on my business plan for 2020 and I'd like to get your help. This December is gonna be 20 years that I've been in the industry. I'm 40 years old, that's half my life, and more and more every year I've depended on my clients, my friends, to refer me business. What I realize is I want to help my friends and my clients accomplish their goals. So if you're working on your business plan and there's something that I can do to help you, please reach out and let me know. Until next time, guys, if you know anybody that might be looking to buy, sell, or invest anywhere from LA to Palm Springs, please give us a call 951-444-5811.
It's a great day at Jose Perez and Associates. My name is Jose Perez. I'm here to give you an update for the month of September. There are three topics I want to share with you guys today. Number one, do you have PTSD for real estate? Number two, do you know what strategies you can use to pay off your mortgage early? And number three, have you gotten informed as to how to buy or how to sell?
So number one, PTSD for real estate. Do you have it? Here's what I mean by that. A lot of folks bought properties in '05, '06, '07, '08, and during the mortgage meltdown either had a short sale or had a foreclosure in the past and for that reason, they're a little bit scared about jumping back into the real estate market. Here's what I've got to share with you guys. This market we're in today is a whole lot different and even if we do go into recession in 2020 I want you to know that there is a big difference. Let me share this that economist at Zillow had to say "The housing crash during the Great Recession left a lasting impression...But as we look ahead to the next recession, it's important to recognize how unusual the conditions were that caused that last one, and what's different about the housing market today. Rather than abundant homes, we have a shortage of new home supply. Rather than risky borrowers taken on adjustable-rate mortgages, we have buyers with sterling credit scores taking out predictable 30-year fixed-rate mortgages. The housing market is simply much less risky than it was 15 years ago." It's also predicted that if we do go into recession, it's going to last a lot less time than what it did last time. Lastly, if you were to look at this chart and look at the last five recessions, three out of the last five recessions, property values went up. And I continue to say that because the last time that the property values went down during a recession, remember the real estate and mortgage industry were the cause of that recession. So we don't expect that to happen again.
Now on a much brighter note, let's talk about paying off your mortgage. Did you know that 37% of Americans have a paid-off house? No mortgage. So what I thought about was sharing with you guys some of the strategies that I'm using, some of the strategies that other folks are using in regards to paying off their house fast and as soon as possible. So one of them, for instance, is getting yourself on a biweekly payment. The second strategy is using a home equity line of credit, both either a second or a first mortgage. And third, knowing the difference between a daily accrued interest and an amortization schedule. If you're interested in paying off your mortgage soon or faster than the 30 years, please give us a call so we can do a one on one strategy session.
Lastly, I read an interesting quote with Albert Einstein and this is what it says. "If you can't explain it simply, you don't understand it well enough." That just really reminded me of how important it is to make an informed decision. So what we do is every quarter we pull out our new buyer and seller guides and our fall buyer and seller guides are now available. You could download them in the link below or go to our website to download them. But guys in a shifting market, especially a year where you're going to have presidential elections, it's really important to know what you're doing when it comes to real estate and hopefully you can see that we take our time to study the market so that we can share it with you guys. And that way we can make an informed decision that's best suited for your family.
If you're looking to buy, sell, or invest in real estate between LA and Palm Springs, give us a call. My number is (951) 444-5811 or visit our website www.joseperezandassociates.com.