What to know before renting our my Mammoth Lakes property?

Clients visiting our office often ask for a list of “all available properties.”  The first question I ask is to determine whether they will be renting out the property.  Only some areas within the Town of Mammoth Lakes are zoned transient rentals (check the town’s website). Many people are not aware most single family homes cannot be rented out on a nightly basis.   This narrows the search considerably.

After discussing the pros/cons of various areas, the next step is for the potential buyer to determine goals for the property.   If income/cash flow based, ask your agent for any receiveables provided by the seller.  Keep in mind most of these reports show “gross” income and there will be a percentage you will pay to the property management company plus any utilities or fees not included in the Home Owners Associate fees.

Property management fees vary greatly as do the services provided.  Some fees can be as high as 60% of gross income but often these offer greater name recognition and advertising presence which could increase the number of rentals booked for your property.

Ultimately your short and long term goals are key in selecting the property.  It is easy to get swept up in the emotions – my advice is to slow down and secure a real estate agent in your pursuit to make an educated decision.

Sonja Bush

Broker Associate – DRE #01904399

                       

The Village at Mammoth

661.979.9000 cell

sonja@sonjabush.com

www.mammothvillageproperties.com

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What is the difference between a short sale and foreclosure?

Whether you’re a seller in the middle of a real estate problem or you’re searching real estate listings as a potential buyer, it’s important to know the difference between a foreclosure and a short sale. Foreclosure is a far worse fate than a short sale if you are the seller, but as a buyer of a distressed property, a short sale is often the more difficult process to wade through.

A property that has been foreclosed on means the owner was not able to make the monthly payments for a certain amount of time and the lender has taken control of the property. If not sold at auction, foreclosure property is simply owned by the lender, often called REOs or real estate-owned properties. In either case, the seller is taken out of the equation and the buyer only negotiates with the bank /lender.

You can stop a foreclosure by considering a short sale. Don’t be fooled by the name, the process of a buying a short sale property can be a long one. Once the seller accepts an offer, he sends it to the lender for approval. Even if a seller accepts the offer, the lender’s approval is the one that matters and that can take time. More paperwork is involved in a short sale than a regular sale, or even a foreclosure.  Use a realtor who is knowledgeable in short sales, as there are many nuances to completing a short sale successfully.

With both foreclosure and short sales, the sellers credit is affected negatively. According to MyFico.com for a foreclosure, you can expect your FICO score to drop by as such as 200 and for a short sale at least 75 points.  Both types of default are considered as “not paid as agreed.”  There are also tax consequences to consider with both options – check with your accountant.

Sonja Bush

Broker Associate – DRE #01904399

                       

The Village at Mammoth

661.979.9000 cell

sonja@sonjabush.com

www.mammothvillageproperties.com

Hello Blog World!

Welcome to my blog!  I have followed other blogs but have never had one of my own!  This should be fun! 

I am going to start by posting the articles I publish in the local newspaper each week (The Mammoth Times).  Hopefully you will find these articles interesting and informative.  Not all the material is uniquely mine and in those cases I do my best to quote the sources.

As time goes on, I plan on venturing to new territory and will post my personal thoughts and opinions on Mammoth Lakes real estate.

Enjoy!