Buyers – you may find in your home search that some homes are not all they are cracked up to be. But others will be.

However, I’m not talking about what you think I am.

I’m talking about REAL cracks.

There are homes, unfortunately here in North County San Diego (and no doubt elsewhere in the country), that have cracks in their slabs, which can be a serious problem.

• Lenders will not provide a loan on a home with a cracked slab

• A cracked slab can be very expensive to fix (to the tune of tens of thousands of dollars or more depending on the problem based on what I was told by a guy who does this sort of work). It’s also expensive to have an inspection completed to determine the nature of the problem and the remedy.

These issues may or may not be obvious, which is one more good reason to have a home inspection. If there is suspicion of a problem then a further more detailed inspection is definitely warranted.

And certainly if a slab crack is a known issue the seller should be disclosing this (as was the case in a rather charming older home I toured the other day with my buyers  – the seller was there and freely shared the issue).

Needless to say, a HOME INSPECTION is essential so you know what you are getting, or can decide that the home is more than you are willing, or can, take on.

A critical question buyers need to consider when buying a condo in Carlsbad, or anywhere else in San Diego, is  “are those occupants residents or tenants?“

I don’t mean that we fundamentally care who is living there.

The issue has to do with the mortgage requirements that a minimum of 51% of the units in a condominium complex must be owner occupants (i.e., not second homes or investor-owned properties).

If you can find this out before  getting too far along in the offer process (your REALTOR will help with this) you can save yourself some possible disappointment.

During the due diligence process here in CA we investigate the status of the HOA, review HOA docs and budget and other matters, which includes the percentage of owner occupancy. But finding out before you get that far along will save time and heartache. It MAY be stated in the MLS but in my experience it usually isn’t.

While many condos do meet that requirement easily, there are some complexes that are popular with investors so it is an important detail to add to your due diligence as a buyer.

As many folks know, the government signed an extension to the First Time Homebuyer Credit which includes a tax credit for move-up buyers.

Here is a GREAT SUMMARY of some of the key things to know about this new legislation from a colleague of mine in Arizona, Mike Jones.

This is something worth keeping in mind if you are thinking about buying, in addition to the good rates on mortgages.

Check out this website on the First Time Buyer Tax Credit to get answers to all your questions.

For those of you watching the real estate market in the coastal communities of North San Diego County, here is a summary real estate market report with links to SEPTEMBER 2009 real estate market reports for the following communities:

Carlsbad

Cardiff

Encinitas

San Marcos

Oceanside

Rancho Santa Fe

Del Mar

Solana Beach

Each report also has some links to earlier market reports for those communities (some more than others).  I can always provide detailed report susch as these for ANY community in San Diego as well as broken down by area/neightborhoods. Just ask.

Word on the news and on the street is that the First Time Homebuyer Credit has been extended to the end of April 2010, plus they have added a credit for SOME move-up buyers. BUT IT IS NOT DEFINITE.

I don’t have the details yet but will share once I do. This is great news for some folks if it becomes fact.

Finally.

Some new laws have been passed in California to better protect consumers against mortgage fraud, which is rampant (I understand CA has the 4th highest % of mortgage fraud).

If you are in the process of shopping for a mortgage, this is a MUST READ to educate yourself aboutthe laws that protect you.

New Laws to Combat Mortgage Fraud in California

These may not fit many budgets, especially those of you who are buying your first homes.

Model Homes at Rockledge in La Costa Oaks Carlsbad

There are several communities of new construction homes in Carlsbad that may be of interest. What I find particularly impressive is that these homes are going QUICKLY – quite a change from a year ago when homes were languishing on the market and new home building sorta stopped.

Now there are 5 new communities that are building with another (53 Melrose) just starting in South Carlsbad.

Read more about COPPERWOOD and ROCKLEDGE in the La Costa Oaks master planned community in Carlsbad.  If you want new construction for under $250/SF here is your chance – but it’s going fast.

I realized that I wrote this article some time ago that I didn’t share here.

I think it’s an important one.

Buyers, especially folks going at it for the first time, sometimes just don’t use their common sense. It’s easy to get swayed by a beautiful home, or turned off by an ugly one, without using your common sense about what really is important and what your ultimate goal is.

But in this market of short sales, REOs and sellers who just may not give a hoot about how their home looks, using ALL YOUR SENSES makes, well, sense (cents??).

Read on to learn more how and why YOU better come to your senses while house hunting.

The media implies that it is a buyer’s market out there. In many areas, and many segments of the market, that IS, indeed, true.

People also seem to think that this is true for the REO/bank owned market.

That may be true in some areas but it is certainly not the case here in North San Diego County in Carlsbad, San Marcos, Escondido, Oceanside and similar areas. Multiple offers on just about every REO (and short sale) and with these properties selling in many cases over asking suggests it is a BANKS’ market, NOT one favoring buyers.

Buyers are, in many cases submitting offers on multiple properties, and are losing out on several properties before they are successful. While this is not the case in mid- and high-range properties it is very much a part of the lower end market where many first time buyers need to start out.

The other shift we are seeing is many more cash buyers (often investors) who will often beat out regular buyers with loans since the REO banks (1) do not have to worry about an appraisal or a loan, and (2) they can get their money more quickly.

This is not to scare you away but just to paint a bit of a reality picture so you are not surprised. Given me a call if you have questions, or talk with YOUR agent to learn more about the reality of YOUR market. It may not be what you think it is.

READ MORE:

10 Buyer Challenges for Today’s Market

The Question Used to be – How Much Less Will the Sellers’ Take?

Buyers who are purchasing condos or homes in communities where there is an Home Owner’s Association MUST take the time to thoroughly investigate the HOA, for a variety of reasons.

One of the biggest concerns may be an HOA that is involved in some form of litigation, which can impact your ability to get a loan on a home in that complex.

READ MORE:

Carlsbad Buyers Beware – Check Out the HOA Before You Buy (which of course can apply anywhere)