Frequently Asked Questions

Our clients range from “mom-and-pop” investors to high-net-worth individuals, private clubs, and both small and large corporations. They choose us for many reasons, but one principle stands above the rest: absolute client confidentiality. Your personal circumstances, reasons for selling, family matters, business strategies, or financial concerns are your private business — and they remain that way.

To properly serve you, we ask thoughtful questions to understand your goals and determine the asset management or marketing strategy best suited to your needs. Beyond that, discretion is paramount. Our relationship is built on trust, professionalism, and confidence. Your conversations with us will not appear on social media or become talking points in the marketplace.

We invite you to explore our website. You will not find announcements of “new clients,” public discussions of client matters, or messaging that promotes one client’s interests or views over another’s. Ultimately, only you can decide whether public disclosure of a sale or acquisition benefits you — such as generating competitive interest and potentially increasing value. Our role is to provide guidance, protect your privacy, and execute your strategy with integrity.

MLS is real estate shorthand for Multiple Listing Service(s). The short answer is Yes, of course, yes, and yes again.

If you have an Agent or Broker who suggests to you that he/she has a client perfect for your property (Commercial or Residential) and therefore there is no need to list on the MLS; or thinks a “pocket listing” is a great idea – “we can shop it to only special high-end buyers”…. Run, Run Away as fast as you can.

The idea that exposing your amazing home, its beautiful photos, spectacular video, and possibly the pristine staging done – to as many people all over the WORLD as humanly possible is just arrogant and not in your best interest.

Side Note: If you are worried about people tromping through your luxury home; this, not a problem – we can do many things to pre-qualify a buyer BEFORE they get to your front porch.

Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your realtor’s advice) so that escrow and settlement with go as smooth as possible.

When purchasing a home, you will typically be required to provide a down payment. The amount you choose to put down can vary based on your loan program and financial goals. While some mortgage options allow for lower down payments, contributing more upfront reduces the total amount you finance. Generally, a 20% downpayment is a good starting point. A larger down payment can lower your monthly mortgage payments, decrease the amount of interest paid over the life of the loan, and may help you avoid private mortgage insurance (PMI) requirements. Ultimately, the right down payment balance depends on your financial comfort, long-term plans, and overall investment strategy.

During this period of purchasing your home, you are going to need an escrow and title company to act as an independent third party so that you know when and who to give your money to get the deed to your new home. The escrow and title company will hold your deposit and coordinate much of the activity that goes on during the escrow period. This deposit check may also be held by an attorney or in the broker’s trust account. Make sure that there are sufficient funds in your account to cover this check.

The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

The period that you are “in escrow” is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:

Secure the homeowner’s insurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.

Contact local utility companies to schedule to have service turned on when you close escrow.

Schedule the final walk-through inspection. At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a “permanently attached” chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You’ve made it! Once the sale has closed, you’re the proud owner of a new home. Congratulations!

How old is your house? Are you a handyman always fixing things in your own way? Did you just complete a huge remodel with contractors, permits, and blueprints? Do you love your home “just the way it is”? Raised your five kids there, and love all the little dings nicks that make it your home?

Those are all questions you want to ask – and then there is the final hard question you have to ask yourself: “What is wrong with my house that will make someone pay me less.” If you are not willing to ask that question, then you will be even more shocked when others begin to tear your house apart piece by piece – and tell you why it’s worthless.

In just about every situation we tell our Sellers (and eventually any Buyer) get a HOME INSPECTION FIRST! Inspect the Roof, the home’s bones, the chimney, attic, HVAC, electrical panel, crawl under the house, call the Termite Guy and get a Phase I and Phase II report (an estimate). Go as far as to call a roofer and HVAC guy individually to inspect the house and deliver you a report.

WHY Spend that money now? It could be a $1,000 or more….

First, because the Buyer is going to do it and use it against you to negotiate the price down.

Second, if there is a lot of work to be done you can get a contractor to do the repairs for you and be able to show any buyer that these problems have been fixed.

Third, “I don’t have the money to do the repairs”… then maybe we need to re-evaluate the price, and be prepared to offer the seller a “discount” on the sales price for the work (that you already have a good idea as to the cost of).

Fourth, take away the Buyer’s negotiation power by offering a “fixed” or “remodeled” house and you can hold firmer in your selling price.

If you did a remodel a few years ago – SAVE the plans, the permit sign-off card and all photos of the job. This way you can show any buyer that you did the work above board, safely and legally. This will help ensure that you get top dollar for your home.

Our process begins with a thorough inspection of the property. We meet with the owner or the owner’s representative, take detailed photographs, and prepare a summary report for review and planning. We effectively assume the day-to-day responsibilities of a landlord, allowing you to enjoy the benefits of property ownership without the operational burden.

We evaluate the property’s condition and may recommend repairs or improvements to enhance marketability and long-term value. When work is needed, we can coordinate and oversee repairs and approve invoices on your behalf. We are happy to recommend trusted contractors we have used on our own properties and personal homes, and we never inflate or alter contractor invoices. Construction oversight fees, when applicable, are discussed in advance and depend on the scope and size of the project.

We assist in determining a competitive rental value and market the property for lease. Applications are carefully reviewed and screened, including credit reports, rental history, and employment verification. Our goal is to secure residents who not only meet financial qualifications but also demonstrate a history of responsible tenancy and respect for the property and neighborhood. Once a qualified resident is selected and approved by you, we execute the lease and continue to oversee the property on your behalf.

Our services are provided for a monthly fee or a percentage of the gross collected rent, depending on the management structure and scope of services.

We keep you fully informed of any significant issues affecting your property and will promptly consult with you before authorizing maintenance or repairs that exceed an agreed-upon dollar threshold. Our goal is to protect your investment while ensuring you remain in control of major decisions and expenses.

At the same time, you are relieved of the day-to-day responsibilities and direct tenant interactions. We handle resident communications, service requests, vendor coordination, and problem resolution in a professional and timely manner. Whether addressing routine maintenance, responding to emergencies, or coordinating larger repairs, we act as your representative to ensure the property is properly cared for and residents are well served.

This approach allows you to stay informed and maintain oversight of important matters, while enjoying the convenience of truly hands-off ownership.

We will serve the proper notice, keep you in the loop, and if eviction is warranted (our final option) we will turn everything over to our legal counsel to spearhead the process. In most cases, tenants move quietly before the legal business gets too far along, or they negotiate a settlement agreement. All legal fees are unchanged, and you pay no extra fee for our assistance in the process.

Our management fee varies based on the type of property, number of units, size, complexity, and the gross rental rates. Generally, our fees are calculated based on a percentage of the rents collected. Fees typically range from 2% to 11%, with most single-family homes falling between 6% and 10%; while large complexes can be as low as 2%.

This structure aligns our success with yours — we are compensated when your property is successfully leased and rent is collected. To fill a vacancy, we charge a one-time leasing fee equal to one month’s rent for the initial lease term. This covers basic marketing, showings, applicant screening, lease preparation, and the move-in coordination. There are no hidden fees, and you pay nothing upfront. Our compensation is paid from the rent we collect on your behalf.

*Any special or unique marketing expenses outside of our standard leasing services will be discussed and approved in advance before any funds are committed.

Call 818-781-0255, or send an email to info@LitchfieldMgmt.com and we will answer your questions or set an initial appointment.

CMA is real estate shorthand for “Comparative Market Analysis”. A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.

Real estate transactions are complex, and occasionally a deal may encounter unexpected challenges. Financing changes, inspection findings, timing conflicts, or shifting priorities among buyers, sellers, and service providers can all create obstacles. In many cases, thoughtful negotiation and creative problem-solving can resolve these issues — but even when a solution isn’t immediate, it’s important to stay calm and focused on the bigger picture.

Buying or selling a home is not only a financial transaction; it is often an emotional milestone. A home may represent years of memories, family life, and personal achievement. Likewise, investment properties can represent long-term planning, retirement security, and carefully built financial stability. When uncertainty arises — whether from a tenant change, a financing delay, or an escrow complication — it is natural to feel stress or concern.

This is where experienced representation makes a meaningful difference. By allowing your Agent or Broker to negotiate calmly, evaluate alternatives, and keep communication constructive, many potential “deal breakers” can be transformed into workable solutions. Our role is to provide steady guidance, protect your interests, and pursue outcomes that support a successful closing for all parties involved.

There are many effective ways to market your property, and each strategy can be tailored to meet your specific goals, timeline, and target audience. From professional photography and online listings to broker networking, signage, and targeted digital campaigns, every option is designed to maximize exposure and attract qualified interest. Below are just some of the ways we can combine to best market your property.  Ultimately we will work closely with you to determine the most effective approach for your property and market conditions. If any additional marketing enhancements are recommended, all associated costs will be discussed and approved in advance so you can make informed decisions with confidence.

Custom Tailored Responsive Web Site

• Custom Built to work on Desktops, iPads and iPhones.
• HD photos, motion capture, descriptions, amenities, videos, drones and property tours

A Custom branded and unique URL

National Marketing campaigns.

• CRMLS
• Costar®
• LoopNet®
• Realtor.com
• Instagram®
• YouTube®
• Zillow
• Trullia
• And many other websites and platforms.

High-end Photo and Video Shoots

• High-end brochures and enticing welcome packages
• HD drones and cameras
• Latest video editing trends

E-Mail Property Push Campaign

• Photos and Video sent to 20,000+ active local agents
• Custom designed layout suited to your property
• Target market specific so no wasted opportunity

Mailer

• As needed Flyers, Mailers, and oversized showcase cards
• Direct mail to specific and targeted demographics

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won’t qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line. Fixed Rate Mortgages Consider a fixed rate mortgage if either of the following describes you:

• You plan on living in your new home for many years, and/or
• You are not a risk-taker and prefer the stability of knowing how much your payment will be each month. Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages: 

15-Year Fixed-Rate:

• Pay off the loan in half the time of a 30-year loan.
• Equity builds up more quickly than in a 30-year loan.
• Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:

• Pay off the loan in 2/3 the time of a 30-year loan.
• The overall interest paid is considerably less than for a 30-year loan.

30-Year Fixed-Rate:

• The most common choice, especially for first-time homebuyers, as it’s the easiest of the fixed-rate loans to qualifying for.
• Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of “padding” between the amount you can afford to spend and the monthly payment for your desired property.
• More desirable if you plan on staying in the same home for years since equity builds more slowly than for shorter-term loans.
• For income tax purposes, this term provides the maximum interest deduction.

Adjustable-Rate Mortgages (ARMs) 

If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate. Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term. Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up. Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means. Fortunately, the amount an ARM can increase is limited. There are “caps” on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Convertible ARMs If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed. 

Government Loans 

Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.

• VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home.
• FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase “FHA approved” when looking at ads for homes.

Naturally, you want the best possible financing terms when purchasing a home. Securing a lower interest rate can significantly reduce your monthly mortgage payment and save substantial money over the life of the loan. In addition, qualifying for a lower payment is typically easier than qualifying for a higher one, which can improve your overall purchasing power. 

There are two primary approaches to finding a competitive mortgage rate. The first is a do-it-yourself approach. With today’s online resources, loan programs, rate comparisons, and lender reviews are readily accessible. If you choose this route, be prepared to invest time researching options and monitoring rates, as they can change quickly. Once you identify a favorable rate, submit your application promptly and consider locking the rate to protect it from market fluctuations. Always request a detailed loan estimate outlining all fees and costs associated with the loan.

The second option is to work with a qualified mortgage broker. Brokers can shop multiple lenders on your behalf, help match you with suitable loan programs, and guide you through the application process. This can save time and may uncover options you might not find independently.

Regardless of the path you choose review lender fees carefully. Items such as points (loan origination fees), interest rates, and miscellaneous charges can vary widely and are often negotiable. 

FOR EXAMPLE: If documents are delivered electronically, you may want question obvious unnecessary courier or processing fees. Understanding these details ensures transparency and helps you secure financing that truly supports your long-term financial goals.

If you do not have the time or experience to “do it yourself,” look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates who have refinanced or purchased recently if they have a broker they can recommend. You’ll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind. Always understand that this is a difficult choice. Pick one that your friend has actually used, one that several friends have used (successfully) and one that will give you real timelines and will collect all necessary documents upfront to speed up the process. Many can be quite flighty and only looking for a quick buck. Remember: The nicer his/her office the more you are going to have to pay him/her.