Open House Saturday November 1, 2008 1-4 p.m.

Last week we fielded an offer that didn't come together. The buyers really like the house and the sellers want to sell but we were unable to make everyone happy. I really appreciate people taking the time to write offers because everyone learns a lot from offers that are presented even if they don't get accepted.

One of the things to come from this offer was that my sellers were able to evaluate the possibility of carrying back a second trust deed as part of the transaction. We covered all aspects of the sellers taking back a loan and decided that it made sense for both buyer and seller.

As most buyers are aware lenders are now overly strict about how much and to who they will lend money. After practically giving money away to anyone who could fog a mirror, lenders are now leery of even super qualified buyers if they are looking at loans over the *conforming limit.

The weapon of choice for lenders today is to decrease the LTV (loan to value) for loans by increasing the amount down. If you are looking for a loan over the current $729,795 limit most lenders want to see 25% down or a 75% LTV. On a loan over $1,000,000 they want to see 30% or a 70% LTV and the higher the loan amount bigger the down and the smaller the LTV.

That means that on a property in the price range of 511 N. Dianthus ( $1, 2,659,000) a buyer would likely have to have at least 25% to 30% down to be sure they would get a loan. As the sellers are willing to help with the financing a buyer can purchase with 20% down, a seller carry back of 10% for a LTV of 70%. This means there should not be any surprises at the close of escrow by a jumpy lender who said they would make a loan with 20% down but then changed their minds at the last minute and want more down.

There are buyers who do have enough money for a larger down so they might not need the sellers to help with financing. On the other hand if you are a buyer thinking about doing some remodeling then it might make sense to have the seller carry back a note to free up cash for a few stylish improvements.

511 Dianthus in the Manhattan Beach Hill Section offers a good choice for buyers who are deciding to follow a more conservative path. This lovely home has over 1900 sq ft, 3 bedrooms, 2 baths, large dining area, delightful family area and a great entertainment room with space to spare for the big TV and a view that doesn't stop. The serene rear garden and soothing sounds of the waterfall bring a sense of calm after a busy day. A new price makes this home worthy of consideration.... $1.269,000.

If you are not quite ready to make a formal appointment but would like to see this house why not visit me Saturday 1-4 p.m. to view this Manhattan Beach Hill section home.

Remember....Great views....nice home... good price! See you Saturday!

*Chryste Fisher of Milestone Mortgage in her morning update said that lenders will soon stop funding the Jumbo hybrid of $729,750. You must be in escrow by 11/15/08 and close by 12/15/08 to get this loan amount. As of January 1, 2009 the limit drops to $625,000.