OCT MARKET STATS from SDAR

SAN DIEGO (November 7, 2014) – The San Diego County housing market continues to stabilize, according to new housing statistics from the Greater San Diego Association of REALTORS® (SDAR).

The median price of single-family resale homes dipped slightly in October to just under $500,000. Sale prices of condos and townhomes held steady at $337,500. Single-family home prices are about 4.5 percent higher than a year ago, while prices of condos/townhomes are up 14 percent. Taken together, all resale home prices are up about 8 percent from October 2013.

While month-over-month sales of previously owned single-family homes increased 2 percent in October, sales of condo/townhouses decreased by more than 3 percent. Combined, sales are down about 9 percent from a year ago.

The number of active listings on the Multiple Listing Service (MLS) in San Diego County is just under 8,000, representing three months of housing stock. (Six months is considered a healthy inventory level.) On average, homes on the market are being snapped up within about 45 days of being listed.

“These new numbers are encouraging because they tell us the San Diego housing market has become
more balanced,” said Leslie Kilpatrick, 2014 SDAR Board President. “Homes aren’t staying on the market long, so homeowners who are thinking of selling are in a good position. While inventory has grown, the most sought after properties sell quickly, so buyers need to be prepared to act. This not the time to sit on the sidelines if a move is in your future.”

The most expensive listing sold last month in the county: a 6-bedroom, 9-bath, 12,585-square-foot home in Rancho Santa Fe that sold for $6 million. SDAR’s housing statistics are compiled monthly from the Multiple Listing Service (MLS). Click here for a detailed look at the numbers. Here is a summary:

MEDIAN SALES PRICE Comparing October 2014 to September 2014
• Single-Family: 3% DECREASE
October 2014 = $ 496,750
September 2014 = $ 510,000

• Condos/Townhomes: UNCHANGED
October 2014 = 337,500
September 2014 = $ 337,500

MEDIAN SALES PRICE Comparing October 2014 to October 2013
• Single-Family: 5 percent INCREASE
October 2014 = $ 496,750
October 2013 = $ 475,000

• Condos/Townhomes: 14 percent INCREASE
October 2014 = $ 337,500
October 2013 = $ 296,000

TOTAL SOLD LISTINGS Comparing October 2014 to September 2014
• Single---Family: 2 percent INCREASE
October 2014 = 1,764
September 2014 = 1,728

• Condos/Townhomes: 3 percent DECREASE
October 2014 = 835
September 2014 = 865

TOTAL SOLD LISTINGS Comparing October 2014 to October 2013
• Single---Family: 7 percent DECREASE
October 2014 = 1,764
October 2013 = 1,906

• Condos/Townhomes: 12 percent DECREASE
October 2014 = 835
October 2013 = 944

 

Jennifer Zheng

REALTOR®, Abacus Properties Inc.

16870 West Bernardo Drive, Suite 400
San Diego, CA 92127
Cell #: (858) 344-8478

BRE License #: 01450123

Email: jenniferzhengrealty@gmail.com

My service, service for Life

Does the Real Estate Brokerage Matter to the Home Buyer / Seller?

JENNIFER'S NOTE:
I share his viewpoint of "in the minority", but I'm not afraid of being one of them. To me, quality always goes prior to quantity. My goal is to make every transaction I handled a showcase. To be objective, occasionally brokerage company does matter nonetheless, especially when a buyer or seller picks an agent from advertisement with no extra info on that person, barely "hoping" that big brand produces top notch agents, but the fact is almost all brokerages tend to hire anyone who walks in the door.

Here is a question that often stirs debate in real estate circles:

Does the Real Estate Brokerage Matter to the Home Buyer / Seller?

The always brilliant Marc Davison of 1000 Watt Consulting shared this on Twitter earlier today:

Sum folks think Brokerage doesn’t matter 2 the public. I disagree. If it didn’t this letter would NOT have been written

 



That Tweet links to this great letter from a real estate client to a broker at Avery-Hess Realtors in Maryland, Virginia, Metro DC and West Virginia – What Really Matters in Real Estate.

And Avery-Hess is absolutely right – this letter from a very satisfied client exemplifies what really matters in real estate.

I don’t know anyone at Avery-Hess, but I would love to meet them as they appear to share a philosophy with Thompson’s Realty – that being hire the right agents who live and breathe the right values and will provide superior customer service to their clients. This probably sounds stunningly obvious to the real estate buyer or seller out there. After all, real estate sales is a service-based business so isn’t customer service of paramount importance?

Of course it is. Yet the traditional real estate brokerage has a propensity to hire anyone that walks in the door. I call it the “hire anyone with a license and a pulse” brokerage model.

And it’s a ridiculous practice that is killing the real estate sales industry.

We’ve turned down “top producing” real estate agents that have inquired about working at our brokerage. One even argued extensively with me that, “I had to hire him”.

Uhm, no. I don’t. I hire people that share my passion for customer service and real estate. Period, end of story. Treat clients like a number, focus on nothing but “closing the deal” and you can go work somewhere else, no matter how much revenue you generate.

The above mini-rant about brokerage models has a purpose

Someone has read this far and said, “For the love of Pete man, answer the freaking question already!” Does the real estate brokerage matter to the real estate “consumer” – the home buyer and/or seller?

My short answer is no, the brokerage doesn’t matter to the vast majority of home buyers and sellers.

Don’t get me wrong, the brokerage matters. It’s the brokerage that does (or more often does not) the upfront leg work in hiring the right kind of agents. It’s the brokerage that makes sure their agents have what they need to ensure a great client experience. Or at least that’s what the brokerage should be doing. Avery-Hess is doing it. We are doing it. We are not alone, though sadly it seems like we are in the minority.

But the consumer (generally) doesn’t care what brokerage their agent works for. Heck, often they don’t even know what the brokerage is, or understand the broker’s and brokerages role in the process. It is my contention that the vast majority of real estate buyers and sellers chose the agent, not the agent’s brokerage, to represent them. That belief is substantiated in many ways…


Cases in point:

• Countless times in my past as an agent in a Century 21 franchise office, I would meet a client (note, a client, not a prospect) for the first time face-to-face and I’d hand them a business card only to be met with, “Oh, you’re with Century 21?”What does that tell you? It tells me the client didn’t care who I worked for.
• In just over two years as an independent brokerage we’ve had a grand total of 2 clients ask if they would be at a disadvantage because we are a small independent as opposed to a large national franchise brokerage. Once we explained our value proposition, both were more than satisfied. (Of note, there is no way to know how many, if any, have never called on us because we are small and independent.)
• The National Association of Realtors (NAR) recently released their 2009 Profile of Home Buyers and Sellers. Michael McClure wrote a great piece on this which included a graphic from the NAR report that showed only 3% of home buyers and sellers chose an agent based on the brokerage they were associated with.
• Keller Williams, themselves one of the largest national real estate brands published an (undated) white paper that stated:
  Nevertheless, the largest real estate firms continue to hold to their position that brand will influence the customer “at the kitchen table.” That is, when presented with the choice between one agent or another, the customer will choose the agent representing the better-known company. NAR’s research directly contradicts this claim (my emphasis).

Let’s look closer at the very letter to the broker that Marc Davison and Avery-Hess themselves claim demonstrates it is the brokerage that matters:

Sheila, upon first meeting, was professional and approachable.  She understood our situation and did an exceptional job of nurturing a well balanced relationship with us throughout the term of our lease.

          Sheila’s professionalism continued through out the house search…

Sheila gets all of the credit for us finding a solid move-in-ready home…
I didn’t even think about writing to you, Mr. Hess, until at closing one of the seller’s agents said in jest that I should write you…

Shelia was professional and approachable, not Avery-Hess Realtors. She, not her broker, understood the client’s situation. Shelia, not the brokerage, gets all the credit. The client “didn’t even think about writing” to the broker.

Don’t get me wrong here. Shelia sounds like a wonderful agent. If she ever relocates to Phoenix, she’s got a job here. Avery-Hess sounds like a great brokerage. They vet their agents and obviously don’t subscribe to the hire anyone with a license and pulse brokerage model. Kudo’s to them for having the vision, sticking to it, and hiring the kind of agent that helps spread that vision. They helped deliver the agent to the client, but they had little to do with the client selecting that agent.

You see, this client, like the vast majority of real estate buyers and sellers out there, didn’t pick Avery-Hess the brokerage to represent them. They didn’t pick David Hess, the Vice-president to represent them. They picked Shelia Carney. And they loved her. I’ll bet you any amount of money you’d like that should Shelia Carney change brokerages, the client that wrote that letter will call Shelia, not the brokerage, to represent her again. I bet you she will tell her family and friends that ask for an agent reference, “Use Shelia Carney, she’s amazing!” not, “Call Avery-Hess” – no matter how amazing they are.

6 things homebuyers should avoid doing once they are preapproved for a mortgage

From Share Source inman.com

Making other major purchases or applying for new credit can turn experience into big hassle

You have done the hard part in the homebuying process and chosen a lender and a real estate agent to work with. You have also gone out and found the home of your dreams! Best of all, your team has done a great job of negotiating the best deal for you.

Now, as a buyer, all you have to do is sit back and wait for your loan to close … right? Wrong!!

Do's and don'ts image via Shutterstock.

 

Getting a home loan these days is a very interactive process. I am always amazed by how many clients I work with who come to me unaware of all the pitfalls they face during the loan process. To help avoid any surprises while waiting for final approval, I provide my clients with a short list of “do’s and don’ts” to follow.
Let’s start with the “do’s” …

1. Do keep the process moving by responding to your loan officers’ requests for documentation as soon as possible.
2. Do make decisions as soon as is reasonably possible.
3. Do convey questions or concerns you have as they develop.
4. Do continue to make all of your rent or mortgage payments on time.
5. Do stay current on all other existing accounts.
6. Do continue to work your normal work schedule with no unplanned time off.
7. Do continue to use your credit as normal.
8. Do be prepared to explain any large deposits in your bank accounts.
9. Do enjoy purchasing your home but remain objective throughout the process to help make decisions that are best for you.

After you have been preapproved for your mortgage you will want to refrain from the following …

1. Do not make any major purchases (car, boat, jewelry, furniture, appliances, etc.).
2. Do not apply for any new credit (even if it says you are preapproved or “xxx days same as cash”).
3. Do not pay off charges or collections (unless directed by your loan officer to do so).
4. Do not make any changes to your credit profile.
5. Do not change bank accounts.
6. Do not make unusual deposits into your bank accounts or move money around from one account to another.

Follow these simple rules and you will help to make your loan closing as smooth and hassle-free as possible! Good luck!

About Roof

After 1980, almost all roofs are concrete tiles. Before that, asphalt
composite/shingle is the most common one. You don't always need to replace the whole
roof, many people start with replacing the Water proofing aka felt paper
that's underneath the tile or shingle. It takes about $8000 for felt,  and $
25,000 for both felt and roof top for a 2000 sqft house. Concrete usually
lasts 30-50ys, and composite 20-30ys depending on the quality of felt paper.
The thicker the better. Felt paper of 20lbs is the thinnest.

If your roof is shingle originally, when you replace it with concrete titles, the house top may not sustain the weight of concrete unless its structure is updated. Do not go with the light concrete that
cannot be walked on.

所以看房龄才决定要不要换。如果屋没漏但心已切，建议取中间值。Get 3 quotes before you select which company to go with, the pricing may vary 20%.

Q: 外国人投资的房产出租收入该如何报税？

A: 报1040NA - non resident alien. 第一年由于没有SSN或ITIN, 需要寄申请ITIN的W-7
连同护照原件（以前不用原件，是去年的新规定），和1040NA一起寄到指定的地址，
IRS process ITIN的申请后，才再来process 1040NA。护照在60天内会返还。

说是六周，但实际三周后ITIN就下来了。三周半后护照寄回。

房产权 for Couples: Joint Tenancy vs. Community Property with Right of Survivorship in CA (中文版)

在房产交易进入中后期，如果你是买方，在escrow company给你寄的escrow
documents中有一份是叫你specify怎样vest房产权。关于房产权的几种vesting
options, 我在我的博客http://jenniferzhengrealty.blogspot.com/2013/12/how-to-vest-property-title.html已经提及，这里重点讲一讲对于夫妻，Joint Tenancy和Community Property with Right of Survivorship在capital gain tax方面的区别。

Joint Tenancy, 全名叫Joint Tenancy with Right of Survivorship， 是最常见的夫
妻hold 房产权的方式。夫妻中有一方过世后，另一方自动receives title, 如果另一
方要卖房，不需要法庭的probate （Court probate是个费钱费时的process。 费用
typically是房子价值的5%， 时间上也得几个月。在房产市场上，时不时我会看到注明
需要probate的房子）, 所以就没有因probate产生的费用和时间上的拖延。过世一
方的，也就是一半的property basis调整到当前价值，但幸存一方仍然是旧的basis。
而Community Property with Right of Survivorship， 和Joint Tenancy一样，当夫
妻中有一方过世后， 同样不需要probate， 然而property的basis却整个重新调，在大
多数情况下能reduce capital gain tax（前提是房产升值了）

Community Property with Right of Survivorship是个相对新的hold title的选择，
在加州是在2001年七月一日以后才有的。

在我接下来举例说明之前，先给个basis的定义。Basis = purchase price –
depreciation + improvements。

Bob和Mary 2001年在CV买了个房子，价格$500,000. 三年以后，他们搬了，把原来的那
个房子作为出租房。十年以后，房子depreciated down to a basis of $400,000. Bob
在2014年初去世后，Mary立刻把房子卖了，$800,000(除去所有卖房费用后）. 基于
title vest的情况，有以下几种可能。

1) 如果title hold as Joint Tenancy. Bob’s 的那一半 basis is adjusted to the
date of death value：half of $800,000 = $400,000。 Mary的那一半仍然是之前的
value 不做调整：half of $400,000 = $200,000。So the new basis is $400,000+$
200,000, 那么她得付 $800,000 - $600，000 = $200,000的capital gain tax.

2) 如果title hold as Community Property with Right of Survivorship, property
得到100% basis adjustment, no tax no fee.


当然，这里举的是投资房的例子，如果是自助房，那么在加州，couple有$500,000、
single有$250,000的capital gain的减免。

所以对于夫妻，Community Property with Right of Survivorship既避免了probate,
又double "stepped-up" on basis。
（2016年三月九日注：关于以上讲述的Joint Tenancy和Community Property之间在一方过世后tax base的区别， 目前已经被 Revenue Ruling 87-98 消除， Revenue Ruling 87-98 allows both joint tenancy and community property to acquire a new cost basis upon the death of a spouse if the property was acknowledged as community property before the death of the spouse)

另外，两者还有以下区别：

1. Joint Tenancy任何两个或多个人都可以hold， Community Property或Community Property with Right of Survivorship只有夫妻或者registered domestic partners可以hold。

2. In Joint tenancy, 你可以在生前convey your part of the interest on the property without 配偶的许可, 一旦convey, title 就不是Joint tenancy 了，新人和原来一方就变成了 Tenancy in Common; Community Property或Community Property with Right of Survivorship 房地产的 transfer, as well as leases for more than one year, 都必需要双方签字, neither spouse can make a gift of community property to a third person without the other spouse's permission.

3. A judgement against one joint tenant does not serve the joint tenancy, but levying execution against the property and having a sale does end the joint tenancy. If the joint tenant dies prior to the execution of the judgement against the property, the property will pass free and clear of the debt to the surviving joint tenant(s). While community property is liable for the debts of the either spouse after marriage. The earnings of a spouse are not liable for the debts of the other spouse incurred prior to marriage.

Joint Tenancy 和Community Property with Right of Survivorship的共同点：

都不能立遗嘱把其中一方的interest转给其他人，包括子女。如果想转给子女，就把产权登记成Community Property或 Tenancy in Common.



至于怎样transfer title in and out of living trust, 以及各种title 在marital
dissolution 发生时受到的影响，会复杂些，请咨询律师和会计师了。

这些仅是我的知识 to my best knowledge up to the date of this blog. Rules and tax code often change over time, please consult an attorney and a certified accountant for confirmation.

Home-buying Competition Picks Up in January -- From California Association of Realtors

Home-buying Competition Picks Up in January, Still a Far Cry From Last Year’s Frenzy

by Rachel Musiker | February 20, 2014    

58.1% of Redfin Offers Faced Competition in January, Down From 70.4% Last Year

Bidding wars across Redfin’s 22 markets increased in January for the first time since the peak of the 2013 home-buying frenzy in March 2013. Redfin agents faced competition in 58.1 percent of offers they wrote in January, up from 52.8 percent in December but a far cry from the 70.4 percent recorded last year. January often brings a resurgence of bidding wars, after the holiday lull and as new homebuyers enter the market in the new year.

 

This lower level of competition is just another sign that limited supply and higher prices are hindering demand. Just after the number of homes for sale hit a four-year low in January, we reported a soft start to 2014 in terms of yearly growth in Redfin clients making offers. With home prices now 30.9 percent higher than they were two years ago, the allure of “getting a deal” has faded. And for those who are simply frustrated with a lack of inventory, patience may be a virtue. Redfin listing consultations and requests for real estate photography services indicate that things may begin to pick up. “In January, we saw a significant year-over-year decline in home photography and videography appointments,” said Matt Murphy, president of Boston Virtual Imaging, LLC. “But we’ve already had a distinct uptick in appointment requests for the second half of February, leading me to believe that sellers are just waiting a little longer this year to put their homes on the market.”

Redfin analysts expect competition to remain a prominent fixture in the early 2014 market, especially for well-priced homes in popular neighborhoods. In the coming months, softer demand and loosening inventory will likely prevent bidding wars from becoming as common or as fierce as they were last year.

 

Other findings include:

Multiple Offers

• Month over month, competition increased across all markets covered in this report.
• Chicago was the only market to see a year-over-year increase in competition, with 42.6% of offers facing bidding wars, up from 41% in January 2013.

Price Escalations

• Across 22 markets, 22% of homes sold for more than the seller’s asking price, but the average home still sold for 0.9% below the list price.
• San Jose and San Francisco were the only markets included in the report where the average home sold for more than its asking price. In San Jose, 53.3% of homes sold for higher than list price last month, with the average seller enjoying a premium of 2.9%. Meanwhile, 50% of San Francisco homes sold for more than their asking price, with the average purchase price being 2.1% above asking.

Competitive Strategies

• Despite increased prevalence of bidding wars, all of the measured bidding war strategies were used less frequently in January than in December, except for all-cash offers. In January, 8.8% of successful Redfin offers were all cash, compared to 7.8% in December.

Table 1: Competitiveness by Market

Market	Current Month	Prior Month	Prior Year	Sold Over Asking	Sale-to-List Difference
San Jose	90.0%	85.3%	97.9%	53.3%	2.9%
San Francisco	85.7%	78.7%	94.1%	50.0%	2.1%
Los Angeles	76.0%	73.6%	85.2%	22.2%	-1.7%
Orange County	72.0%	57.4%	88.0%	10.5%	-1.8%
San Diego	67.5%	56.0%	79.8%	25.9%	-0.5%
Boston	53.9%	31.1%	62.3%	7.7%	-4.0%
Washington, D.C.	51.6%	51.3%	55.6%	20.0%	-1.4%
Seattle	50.0%	40.3%	67.4%	20.3%	-0.5%
Chicago	42.6%	40.4%	41.0%	20.0%	-2.5%
Baltimore	28.6%	23.8%	36.7%	14.3%	-0.7%
22 Markets	58.1%	52.8%	70.4%	22.0%	-0.9%

Table 2: Features of Redfin’s Winning Offers – What Percent of Winning Offers…

Market	All Cash	Waived Financing	Waived Inspection	Cover Letter
San Jose	6.7%	40.0%	40.0%	40.0%
San Francisco	10.0%	20.0%	13.3%	53.3%
Los Angeles	16.7%	5.6%	0.0%	44.4%
Orange County	15.8%	0.0%	0.0%	73.7%
San Diego	0.0%	0.0%	0.0%	51.9%
Boston	0.0%	7.7%	0.0%	38.5%
Washington, D.C.	0.0%	5.5%	9.1%	34.5%
Seattle	11.9%	5.1%	15.3%	13.6%
Chicago	10.0%	10.0%	0.0%	10.0%
Baltimore	0.0%	0.0%	0.0%	35.7%
22 Markets	8.8%	7.8%	8.1%	35.9%

* Competition data is preliminary and subject to change.

从11月份起至今SD销售强劲

要出去了，匆匆一码 -

从去年11月至今，房地产销售强劲，而上市房屋数量依然有限。从我关注的好多地方来看，房子状况还可以标价还合理的，大约有20%是高于要价销售的，其余的则均在要价附近1-2周之内被要走。我每天收到的redfin通知里，大都是pending和sold的notification. 难道我原本对于今年大约5%的上升估计保守了？ 一季度将公布的数据will tell me more。

你的 Monthly HOA DUE 涨了吗？

For those live in town house / condo, has your HOA assessment gone up starting from January? If it hasn’t, congratulations! 60% of the properties I help manage or have myself, HOA has gone up from as little as $ 3-5 to as much as $ 30-50.

HOA assessment is up-front fee every month, it is also known as HOA due or HOA fee. If the property is your primary residence, HOA assessment is NOT tax deductible.

San Diego is the most HOA-dominated county in the state after Los Angeles. For history and operations of HOA as well as various horror stories, you can pretty much get them by searching internet. Here I’m just going to focus on things that you should pay attention when buying a home.

First, you need to know what HOA assessment covers for a particular home. Seller agent does not necessarily specify in entirety in a listing. I would suggest you contact HOA Management directly to get that information, asking what are included, such as water, trash pickup, exterior termite, HO-6 (a few HOAs cover this one, or before the close of escrow, as long as you mortgage, lender mandates you purchase HO-6 coverage). HOA fee runs roughly between $ 250 to $350 if water  bill is included. An HOA fee of $ 350/month is considered above average. If you could find a home with low month HOA due below $150 and that home owners are responsible for their own water and HOA is only responsible for common area, it would be fantastic, though sometimes you don’t have much choice.

Then, you have to confirm the fee in the listing is really the one. Recently I saw a condo in Carmel Valley listed $ 200/month HOA due, but in reality it is $ 310. The seller agent wrote "Up to buyer and buyer agent to verify all information" to unload her job at ease. There is another situation that if the property was listed last year, you better call to find out if there is any change in the new year. 
 

Some buyers may not aware about special assessment. When there is something comes up that needs expensive repair and replacement and was not budgeted in the reserve fund, after board approval, special assessment will be placed to each home owner either based on unit or number of sqt. Special assessment ranges somewhere between 2-3 grand to 7-8 grand. If the special assessment has been approved, you should be able to read that from the HOA Documents seller provides you during transaction. However, if it is still in discussion, you might or might not find it in the HOA document’s meeting minutes. But even if you happen to see that, you’re already in escrow, and most possibly, you have had home inspection done and the loan process started, money has been spent and effort has been made … now you’re in dilemma as to stay or move on. I won’t blame you if you didn’t detect that in the HOA documents at all. After all, how many people would take time to read through hundreds of pages of HOA Documents?! Again, call the HOA no later than offer acceptance, explain that you are purchasing a unit in this complex, and then ask about HOA due, what it contains and not contain, if there is any special assessment, and any pending special assessment. Such homework is very necessary.

For those who are buying investment properties, it’s even more so crucial as this part of the costs is paid by home owner.

Short Sale is Not A Good Buy Anymore

Unlike 2 years ago, short sales are not a good buy any more from the 3rd quarter of last year.

Lenders normally use 6-month's data to come up with their BPO price. 2 years ago, when the market was experiencing a sudden surge from the down turn, the previous 6 month's data gave a lower than then current market price, so buyers got very good deal from short sales. But now, lenders not only are appraising the value according to 6-months back data which was literally the highest of 2013 (In 2013's May, June and July, properties were priced the highest), but also factoring the appreciation thinking that the properties ought to appreciate every month which pushes the final approval price even higher. No wonder I heard a lot now that lenders are getting greedier. I've seen bunch of listings recently that the previous buyers walk out because bank's final approval price was way above the offer price and in a few cases even higher than that of a traditional sale and the properties had to be put back onto the market.

It's a pity to see that banks are legging behind on the appraisal process. When the market was up, their appraisals didn't reflect the up trend, and when the market is gradually running towards the course of balancing, they think the property value is going to be up double digits as what happened in the last year or two.

I recently had a case with Chase. With my previous experience with Chase, this bank is quicker on approval and lenient on the appraisal price. My client offered the full asking price @353K with all cash. Both the listing agent and I used the same comparable of a very same one sold as a regular sale @351K, so we thought this price is reasonable and should be approved without problem. 2 months later, the approval price came back @380K. Listing agent and I were appalled. Of course, the listing was back to market and is still in the market after weeks.

In short sale, homes Sell "As Is", lenders ask buyers to purchase the home in its present condition. Lenders typically will refuse to pay for suggested repairs disclosed on a home inspection, termite inspection or work necessary to issue a clear pest report. Lenders don't pay for home warranty. And buyers incur higher closing cost because lenders rarely pay for any extras (like a seller would be willing to do) if you want any of those extras, you will pay for them yourself. Sometimes lenders will refuse to pay for standard seller closing costs such as transfer taxes and HOA documents too. If you want specific inspections, home warranties or a termite treatment you will more than likely pay for them yourself.

So, when you see a short sale that is priced well, it doesn't mean you will get it. The sellers' bank may not accept it. These types of listings receive many offers. To get your offer accepted, it will need to be priced near or at market value. If you're not prepared to pay above a superficial price on a lowball short-sale listing, then pass. In my opinion, short sale is not worth waiting any more.