Buying a Home in San Diego

For those of you who have been following this blog, you will be happy to know that we are working on implementing a new blog for San Diego home buyers on our main website, http://globella.com!

Globella.com is currently undergoing a site re-design, but we are adding fresh content every day, and we are excited about the resources that will be available to San Diego home buyers through our new website and blog!

Sincerely,

Justin Gramm

http://globella.com

When I first began researching realtors, I got a lot of suggestions from friends and family members. I was most concerned with finding someone who was accessible and who knew the area I would be looking in. My mortgage consultant referred me to Justin because he was an Exclusive Buyer Agent, so he would have no bias when presenting me with options for my first home. Despite my initial unease with the idea of having to sign a contract to do business, it was good to know that Justin wouldn't have any pretense to show me particular homes for extra commission. Additionally, I appreciated that he only services a few clients at a time, meaning he would have more time for me than a traditional realtor at a large firm might.

This was evidenced during the first few days I worked with Justin. He was always quick to call me back, and within a few days of identifying what I was looking for we were actually looking at properties. Within a matter of days we saw over 25 homes. I did not expect the process to go so quickly!

As a first time home buyer, I wasn't sure what to expect as far as the whole process goes. Justin did a great job of informing me about what things to pay attention to, and what to look for. He is very knowledgeable and knows how to communicate effectively. When I felt confused I knew I could call him and get a straight answer.

I also appreciated that he made me aware of time he would be out of town, and how I'd be able to keep in contact with him during that time. He was available not only while out of town, but nights and weekends as well. He really did a great job of working around my schedule and making the process as convenient as possible.

Overall, the experience was a great one, and I am ecstatic to say I've had an offer accepted on the home of my dreams in a matter of a few weeks! I would recommend Justin to anyone getting ready to buy a home in the San Diego area. You won't be disappointed.

Steve in San Diego

***From Justin: I just finished helping Steve purchase his first home a few weeks ago. He was great to work with!

I represented Chuck Smith on the purchase of a condo at North Coast Village in Oceanside, CA. The condo Chuck bought was listed as a short sale, and we went through a seven-month process of waiting and strategizing before the transaction finally went through for Chuck. Chuck recently sent me this testimonial letter. Thanks, Chuck, for the great letter! Our goal at Globella Buyers Realty is to provide such great customer service that each client becomes as big a fan as Chuck is.

Some friends are coming over. The food is on the table. The TV pre-game show is on. I figure that most of the country is doing the same thing as I am today, and I was just wondering... who's going to win today? Colts? Saints?

Since my San Diego Chargers were eliminated, I am simply rooting for a close game today. This could be a fun one!

I received this email from JD Clayton of Progressive Loan Solutions in San Diego, California. JD was hired by the listing agent on a short sale listing (that I represented the buyer on). JD's job was to be the intermediary who communicated with the banks in the short sale transaction. This particular transaction took longer than seven months to complete, and JD was there working on it the entire time. I had quite a few conversations with her throughout those seven months. Here's the email I received from her just before Christmas:

Justin.

I wanted to take a moment to say "thank you" for all you did to facilitate the closing of (seller's) Oceanside property. 

I need to add that you are in the top 1% of realtors that I have dealt with during my tenure in this business, which spans over 3 decades.  You are extremely professional, never ruffled and willing to go 150% to get the job done, such as insuring that the termite inspection was completed, well after normal hours and great driving distance on your part.

It was such a pleasure to work with you, I can only hope that I have the opportunity to work with you again sometime in the future.

Happy Holidays!

JD Clayton

Welcome to San Diego, America's Finest City, and the land of loads of paperwork! If you have done your homework, you know that there will be a lot of paperwork when you buy your San Diego home. I'm not exaggerating. I've had clients from other states tell me that San Diego (or California, in general) has more than twice the amount of paperwork than they're used to having when buying a home in their home states. While I can't necessarily explain to you why we have so much more, I can review with you most of the paperwork you will see during your San Diego home purchase experience. Below you will find links to blog posts that review many different types of disclosures, contracts, and reports. Most of these posts I have yet to write (but I summarize several in this post), so feel free to sign up for my rss feed to be notified as soon as I write a new post. I always write my posts from a buyer's perspective, because I only represent buyers. My recommendation is that buyers read and learn about the forms they will sign in a real estate transaction, and also that buyers hire an exclusive buyer agent who is familiar with all the forms and specializes in using the forms to protect the buyers' best interests at all times. Click on any link below to read a complete review of each form or contract.

Disclosure Regarding Real Estate Agency Relationship - This is the first form you should ever see and sign from a real estate agent in San Diego. An agent is supposed to have you read and sign this form before acting as your agent in any way, especially before signing a listing agreement, buyer representation agreement, or any sort of purchase contract (but many argue that this form should also be signed before answering real estate questions or showing property to a buyer). You will see different versions of this form several times throughout your purchase transaction.

Disclosure and Consent for More Than One Buyer or Seller (to be explained in detail in a future post) - This form would usually accompany a buyer representation agreement. It's a disclosure that pretty much tells you that you are not the only client of the real estate brokerage you hired.

Buyer Representation Agreement - Exclusive (to be explained in detail in a future post) - This is the agreement you will sign when you hire Globella or another real estate brokerage to represent you on your home purchase. It outlines many things including the agent's duties and obligations to you, your duties and obligations to your agent, compensation, length of the agreement, etc.

Buyer's Inspection Advisory (to be explained in detail in a future post) -  The Buyer's Inspection Advisory would normally accompany the Buyer Representation Agreement or Residential Purchase Agreement. It's a disclosure that outlines the importance of performing professional inspections on the subject property and suggests a long list of inspections that can be performed. Working with me as your exclusive buyer agent can be more expensive than working with another agent. Although performing inspections is optional in California, I require my clients to hire an inspector when they purchase a property. I don't want any surprises after close of escrow.

REO Advisory Form (to be explained in detail in a future post) - This is a disclosure form from the California Association of REALTORS®. We want buyers to be fully aware of everything they need to know when buying a bank-owned (foreclosure) property. This is a must-read form. You will only see this form if you buy a foreclosure listing.

Statewide Buyer and Seller Advisory (to be explained in detail in a future post) - This form explains the real estate process in great detail. It's a must-read form for any buyer. You will see this form when you sign an offer to purchase.

Residential Purchase Agreement (to be explained in detail in a future post) - The residential purchase agreement is the instrument written by the California Association of REALTORS® that is used in most real estate purchase transactions. I recommend my clients to only use this contract for purchases, but there are scenarios when a buyer may not have a choice in the matter (for example, when buying a bank-owned foreclosure or purchasing in a new home community). A buyer should absolutely be familiar with this contract.

Counter Offers (to be explained in detail in a future post) - The counter offer form will only be used if a seller decides to counter a buyer's offer (rather than accept the offer or deny the offer).

Wood Destroying Pest Inspection and Allocation of Cost Addendum (to be explained in detail in a future post) - This form is an optional form that can accompany the Residential Purchase Agreement. The form is used to further clarify who will pay for repairs recommended from a structural pest control company.

Short Sale Addendum (to be explained in detail in a future post) - The short sale addendum will be used if you write an offer on a short sale listing. The short sale addendum allows the buyer to set an expiration date, clarifies how the buyer's deposit check will be handled, clarifies when certain time periods begin, etc., etc. This is a very important form that must be filled out correctly when writing an offer on a short sale.

Contingency Removal (to be explained in detail in a future post) -

Agent Visual Inspection Disclosure (to be explained in detail in a future post) -

Buyer's Inspection Elections (to be explained in detail in a future post) -

For Your Protection: Get a Home Inspection (to be explained in detail in a future post) -

Lead-Based Paint and Lead-Based Paint Hazards (to be explained in detail in a future post) -

Market Conditions Advisory (to be explained in detail in a future post) -

Megan's Law Database Disclosure (to be explained in detail in a future post) -

Real Estate Transfer Disclosure Statement

Seller Property Questionnaire

Property Inspection Report

Request for Repair

Appraisal Report

Local Area Disclosures

Natural Hazards Disclosure Report

Home Warranty

Notice of Your 'Supplemental' Property Tax Bill

Water Heater and Smoke Detector Statement of Compliance

Verification of Property Condition

Withdrawal of Offer

Cancellation of Contract, Release of Deposit, and Joint Escrow Instructions (all above to be explained in detail in future posts) -

As you can see, we have a lot to cover! If you have preferences about which form or contract I write about next, send me an email or leave a comment on this post.

This post does not contain every piece of paper you will ever see in a San Diego real estate transaction. The real estate market is always changing. There are new disclosures and forms that the California Association of REALTORS® puts out in different real estate climates. Different real estate companies may also have their own forms or disclosures they want you to sign. Banks tend to use their own purchase contracts and disclosure forms when selling foreclosure properties or short sales. A buyer should know that a real estate agent can give real estate advice but cannot give legal advice. If you seek legal advice, my suggestion is that you contact an attorney. The San Diego Association of REALTORS® (SDAR) provides a phone number and a link for San Diego real estate attorney referrals. Click here to view that information on SDAR's website. Nothing in this post was intended to be legal advice in any way. The content in this post is simply for informational purposes only.

When I began thinking about opening up my own real estate company in 2008, I wanted a name that would be meaningful and easy to remember. 'Gramm Realty' certainly was an option, but there are other Gramms in real estate in other parts of the world, and I wanted something unique. My wife and I brainstormed for days, weeks, even months before we finally found a name that fit all the characteristics: Globella.

Why Globella?

'Bella' means 'beautiful' in Italian and Spanish.

'Globus' is Latin for 'sphere' (and the German word, 'globus' also means 'globe' or 'world').

When you put the two together, they become 'Globella,' and that stands for 'Beautiful World.'

Why is this meaningful? Ever since I've been old enough to remember, I've always been in awe of the beautiful world we live in. I was born in the lake-filled state of Minnesota. I grew up in the desert of Arizona. I've hiked the amazing Grand Canyon in Arizona and been to Waimea Canyon in Kauai, Hawaii. I've visited the Austrian Alps, where my wife was born and raised. I've been lucky enough to have seen the glaciers of Alaska, camped alongside Lake Powell, driven the back country of upstate New York, and felt the mist from Niagara Falls. I've snowboarded the mountains of Colorado, Utah, Oregon, Nevada, California, Arizona, Austria, British Columbia, and Alberta. I've driven cross-country from Bloomington, IL to San Diego, CA in a college-friend's "project Jeep" without stopping to sleep. I've studied physics, upper-level mathematics, biology, chemistry, and human anatomy and physiology. In all these experiences, there is one thing that I can't deny: The world we live in is an absolutely phenomenal place. Whoever put it here is a lot smarter and more amazing than any person I've ever met. In naming my company Globella I give credit where credit's due (to the One who made it all), and I hope that the homes that my clients buy are small symbols of the beautiful world we call home. A home is a place of refuge and shelter. My hope is that Globella clients find a home that allows them to experience and enjoy the miracle of life. OK, now that I've laid my heart on my sleeve... here are a few photos my family and I have taken that inspire me.

Sunset in Rosarita, Mexico.

Sunset in Puerto Vallarta, Mexico.

Bald Eagle in Alaska.

Alaska.

Storm Clouds Rolling into the Dominican Republic.

Sunrise on Road Trip to Arizona from San Diego.

Shamu!

Pismo Beach, California.

Pacific Beach, Mission Bay, and Mission Beach in San Diego.

Giraffe at The San Diego Zoo.

Downtown San Diego Skyline (we rented a ski boat and had a blast in the harbor!).

Kauai Coastline.

Snowboarding in Obertauern, Austria (one hour from Salzburg).

Our motto is 'Beautiful Home. Beautiful World.' We truly believe that San Diego is a wonderful place to call home, and we enjoy our jobs helping San Diego's home buyers!

I received this email today from a prospective client I spoke with a couple months ago. One thing that's important for people to understand is that our philosophy is to counsel people to make the best decisions for themselves. As many new clients as I work with in a year, I am pretty sure that I encourage just as many (or more) prospective clients to wait and save up money. The email below is a good reminder of the service we provide to San Diego home buyers, even when we're not helping them buy.

"Hello Justin,
When we talked in November, you gave me many good points to ponder, and I went back and forth about the home purchase for quite some time.  My girlfriend and I have come to a fairly firm decision that this isn't the time for us to purchase.  You convinced me that we need to collect more cash before we can honestly consider buying.  I really do appreciate you taking the time to speak with me, it was very informative and kind of put things in perspective about trying to save up 20% for down payment and closing costs.  If we ever do decide to buy you will definitely be our agent of choice.  I very much like the idea of working with an exclusive buying agent [I prefer to be called an "exclusive buyer agent", but he wrote "exclusive buying agent"], and we will be in contact when we have a bit more capital saved.  Thanks again."

I would like to clarify that I don't tell people that they should put 20% down. Many of my clients have put down as little as 3.5% (and my military clients many times finance the whole purchase with a 100% VA loan). However, many of my clients do put 20% down (or pay all cash), and I find that these clients tend to be the ones who are less worried about making their monthly mortgage payment. There's no need to rush into buying a home. In fact, it's a really bad idea to rush into a home purchase. It's a huge investment (and many times it's not really an investment... just a huge purchase)! You should take your time, figure out your finances, and make sure you understand the marketplace before you dive in. I am always available for questions, and I take pride in being a resource and a sounding board for San Diego home buyers, so feel free to shoot me an email if there's anything you need.

My goal with this blog is to make it a real resource for San Diego home buyers. My hope is that the content here is helpful in many ways to anyone who is buying a home in the San Diego area. I am trying to put myself in my clients' shoes and answer all their (and your) questions about the buying process within all the different posts I write here. I have about a dozen posts in the draft stage that I am working on, and I have ideas for many more, but I want to make sure that I am writing about topics that matter to you, the San Diego home buyer. This is where YOU come in. Here is your chance to ask a San Diego real estate question. Depending on how many there are, I hope to be able to respond to your questions in future blog posts. Do you have suggestions for topics of future posts? Write them in the comments section or send me an email. I will leave this post active indefinitely, so it doesn't matter when you are reading the post. Feel free to comment or ask a question. Thanks!

I came across this video on one of my colleagues' (Ben Clark of Salt Lake City, UT) websites today. The video features an interview on CNN/fn (now CNN Money) with Stephen Israel, the president of an exclusive buyer agency in the Washington, D.C. area. I have never met Steve, but I learned today that he was a founding member of NAEBA (the National Association of Exclusive Buyer Agents) which I recently became a member of.

You should absolutely take a six-minute break today and watch this video if you are thinking of buying a home in the San Diego area. Many of the topics Stephen covers in this interview are philosophies and beliefs that I embraced when I decided to open up a new real estate company (an exclusive buyer agency) in San Diego last year - Globella Buyers Realty. The interview is short and sweet, and it's to the point. Why should buyers hire an exclusive buyer agent? How does dual agency affect a buyer? How do traditional real estate brokerages operate? What sort of conflicts of interest should a buyer consider before hiring an agent? Stephen answers these questions and more.

The female host  (I never caught her name) opens up the video by saying, "When you work with a real estate agent you automatically assume they have your best interests in mind, but as the saying goes - Buyer Beware. In many instances, your broker (the broker your agent has a contract with) can be working for both sides of the sale, and getting you the best deal may not be their priority."

I hope you enjoy it!