Frequently asked questions - Hannon Properties


	FAQ's

	Frequently asked questions about building on a lot Frequently asked questions from sellers Frequently asked questions from home buyers
	Building on Lots FAQs
	Question - "What is the process when I buy a lot?"
	Answer - The purchase is made with cash or a land loan with 10% to 30% down, and the balance is financed interest only for a term of 1 to 5 years. During that process plans are made and the development process is begun. Before construction begins, the owner obtains a construction loan to replace the land loan. The bank will typically finance 80% of the value (both construction and property) which requires 20% down payment, again this is interest only for a period of 1 to 2 years while the home is built.

	Question - "Is there a time limit during which I must build a home?"
	Answer - No

	Question - "Is there some sort of review process or are there any restrictions on what I can build?"
	Answer - Yes, there is an architectural review committee and there are building guidelines in the CC&Rs. There are 5 different design styles and the minimum home size is 3,000 square feet with no maximum.

	Question - "Can I build a guest house or casita in addition to the main house?"
	Answer - Yes, so long as they meet the minimum setbacks.

	Question - "Is my lot ready to build upon? "
	Answer - Yes, The building pad is graded and ready for construction, all utilities are present (underground) including sewer, cable, water and electricity. (You must provide your own electrical transformer.)

	Question - "Is it difficult to obtain approval for a house design and the building permits? "
	Answer - No. San Diego County is one of the most user friendly in the area and the Rancho Cielo Committee reviews designs every other week and uses professionals to review your plans.

	Question - "I have never built a home. How do I go about it?"
	Answer - We have lists of architects, contractors and landscape contractors who are experienced doing Rancho Santa Fe projects. We will be happy to arrange a meeting with them for you.

	Sellers FAQs
	Question - "What makes a house sell?"
	Answer - Mainly these five considerations: your price, terms, condition, location, and exposure. Since you can't control all of them, you may have to overcompensate in one or more areas to offset a competitive disadvantage in another.

	Question - "How long will it take to sell my home?"
	Answer - A good agent will have the experience and a comprehensive plan to make sure that the home is sold efficiently and as quickly as possible in light of the asking price.

	Question - "Can I sell my house myself?"
	Answer - About 10% of homeowners handle their own sales, but in order to do that you need to realistically assess exactly what's involved. The routine parts of the job involve pricing your house accurately, determining whether or not a buyer is qualified, creating and paying for your own advertising, familiarizing yourself with enough basic real estate regulations to understand (and possibly even prepare) a real estate contract, and coordinating the details of a closing. The greatest downsides are the fact your house is only on the market when you're home, and the possibility that a mistake may cost you the money you're trying to save.

	Question - "Am I liable for repairs after I sell?"
	Answer - In certain situations. If the buyer's inspection reveals major problems with your house's structure or mechanical systems (heating, electrical, plumbing, etc.), the buyer may wish to negotiate the price downward on the basis of anticipated repair costs. So even though the repairs won't be made until after the sale, practically speaking, you'll be paying for them.

	Question - "Should I fix my house up before it goes on the market?"
	Answer - Professional renovators have found that, no matter how much you improve any given house, you're unlikely to sell it for more than 15% above the median price of other houses in the neighborhood, whether you do $1,000 worth of work or $50,000. That's why you might want to ask your agent's opinion about the viability of recouping the cost of any major renovation you have in mind before you start the work.

	Question - "Is there any seasonality to the market?"
	Answer - Peak selling seasons vary in different areas of the country, and weather has a lot to do with it. For example, late spring and early fall are the prime listing seasons in many areas because houses tend to "show" better in those months than they do in the heat of summer or the cold of winter. And of course, people like to do their house shopping when the weather is pleasant.

	Buyers FAQs
	Question - "What's the best way to make sure my offer is the one that gets accepted?"
	Answer -Give a fair bid very close to their asking price, and be prequalified with financing.

	Question - "Is it a Buyers or a Sellers market?"
	Answer - The market in all of San Diego is slowing with a steady increase in available inventory and eroding sales prices. We expect this trend to continue at least through 2006 and into 2007. However, prices are falling only slightly in the beach cities and the greater Rancho Santa Fe area. Interest rates remain low by historical standards and truly exceptional properties remain relatively scarce. So if you are a Buyer or Seller with realistic expectations this is still a good market with excellent long term potential.

	Question - "Are there any deals out there for this price range of home?"
	Answer -There are fixer uppers and distressed sales in all segments of home prices, however they are much less common in this type of home.