Archive for the 'San Diego County Fixer of the Week' Category
Come out, come out, wherever you are
July 22nd, 2010 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News, San Diego homes for sale
OPPORTUNITY AWAITS HOMEBUYERS IN SAN DIEGO COUNTY
SAN DIEGO- I have to admit to being wrong when I wrote in April that I did not feel the expiration of the tax credit was going to have much impact on the real estate market that makes up most of my business.
While I do not have data to back up my beliefs, I do not see the loss of the tax credit having much impact on the markets I serve. There was an article in today’s North
County Times titled ‘BUYING FRENZY; First-time home purchasers rush to take advantage of federal tax credit.” They quoted quite a few people who spoke of the impact on their markets and stated some positive data, but the article looked at the national picture where in many areas $8,000 is a nice chunk of a home purchase. In our area, because the incentive was 10% of the purchase price or $8,000 whichever is lesser, I would say the credit would have had a much greater impact if you could have received $25,000. This would have been more comparable to our market prices versus the $8000 on a national level.- Brian big dummy Long, 4/30/2010
It was approximately the middle of June that I began to feel the coming impact from the expiration of the tax credit and while it did not make much sense to me for reasons coming, the market has slowed tremendously.
At the beginning of this month I wrote a post and had a graph charting the difference between San Diego resale home sales in 2009 versus 2010. 2009 clearly showed the traditional pattern of increasing home sales as we move into the summer months. 2010 on the other hand showed a significant spike in closed transactions in May followed by an approximate 30% reduction in sales in June. Looking at home sales to date, 7/21/2010, that number looks like it is going to fall further with only 762 home closed in the same market area from the prior survey. At this pace of 38 closed transactions per day, we should expect a monthly total of 1190 closed real estate transaction for July.
THERE IS GOOD NEWS FOR THE SAN DIEGO HOMEBUYER
In my defense, there are a couple reasons, well one big one anyway, why the current real estate market presents a better opportunity for buyers than in May: MORTGAGE RATES!!
Yes, this week mortgage rates are establishing a new low, and contrary to belief it is not impossible to qualify.
Rates fell last week to 4.59% on an average 30-year fixed-rate mortgage, which is down from 4.69% one week ago and the lowest ever recorded by the trade group since its survey began in 1972. Other measures show that rates continued to fall this week: Zillow’s Mortgage Marketplace quoted an average of 4.37% on Tuesday.- blogs.wsj.com,2010/7/21
Two years ago I had clients willing to give blood to lock mortgage rates under 6%, so these rates represent an incredible opportunity and more so when combined with the fact that home prices are still significantly low.
The other reason is that the ‘tax’ credit in a way hasn’t gone anywhere. In fact credits to buyers, have been around for a long time. The best thing about this particular buyer credit is you can use 100% of it regardless of how much you pay in taxes.
With the tax credit, especially the state credit, if you did not actually have a tax bill(s) that totaled the credit amount, you were not going to realize the full credit. However, as a buyer you have always had the ability to ask for a seller’s credit that would be applied towards you closing costs thus either saving you money or providing you the extra money needed to close your escrow. There are individual guidelines to how much this credit can be and it is generally a percentage, say 3%, of the purchase price. This won’t give you your down payment, but it may preserve your cash so you then meet the lender’s guidelines for necessary reserves.
If you have been considering purchasing your first home or an investment property you have a trifecta in your favor. Low mortgage rates, depressed pricing and increased inventory. Give me a call or shoot over an email and let’s discuss your particular needs.
| Currently No Comments »
If it sounds to good to be true….
May 15th, 2010 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News, San Diego homes for sale
SAN DIEGO- I do not know how many times I have had to explain to a client that the price they see listed on a short sale is not necessarily ‘real’ and that they still need to consider the comparable property values. When the news is screaming about how depressed the real estate market is it is EXTREMELY difficult to convince a client that they need to pay MORE than the asking price.
Often homes that are being sold short are listed well undervalue. The listing agent uses the fact that they do not have access to the decision maker, the bank, in order to determine what the bank will accept. I understand this and realize ‘short sales’ are a pain in the neck, but there is being realistic in your pricing and there are times when pricing is just irresponsible.
Take the home pictured as example. It was originally listed at $280,000, which would be the deal of the century. The listing agent priced it almost 50% below what the bank determined was the value of the home and they are now waiting on an offer at or close to $410,000.
If you are currently looking to purchase a home(call me), you do need to investigate and consider short sale listings. However, please take a look at the comparable sold homes and try to be realistic in your expectations. The bank will be doing there due diligence to determine market value of the property so they do not make blind decisions. If you have to write an offer $100,000.00 over the asking price don’t worry about it if you really want to try to get the home and the value is there.
| Currently No Comments »
HUGE drops in foreclosure related activities reported for January
February 9th, 2010 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO NORTH COUNTY- Foreclosureradar.com reported that notice of default filings were down 44% in San Diego’s north county when comparing January’s 2009-2010 numbers. Additionally homes sold at auction for the region in the same time period were down 76%.
In an article in today’s North County Times they suggested that the “efficiency” of short sales was a contributing factor to this reduction.
"The stress of default is still there," said Mark Goldman, a real estate instructor at San Diego State University. "But we’re starting to hear a lot more buzz about the efficiency of short sales."-nctimes.com
While I do not necessarily see an increase in the number of short sales, I certainly am not experiencing or hearing of an increase in efficiency. Short sales are still very dependent on the short amount, the ability of the seller to show the need for the short sale and to provide the paperwork required by the bank and probably the most weighted aspect, is the number of lenders in the decision making process.
“Approximately one-third of the short-sale listings on the market don’t close, either because the lender won’t approve a realistic price, or because there are multiple liens secured against the property”-Dyan Hymer,2/9/1010,”The truth about short sales”, Inman News
If you think you may be losing your home, I strongly encourage you to try to short sale. Give me a call with any questions. 760.415.3329
| Currently No Comments »
First time home buyer tax credit extension signed by the President
November 6th, 2009 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO- It was just announced the President Obama has signed the bill that includes the 
extension and changes to the first time home buyer tax credit.
The first time home buyer tax credit extension allows a buyer to enter an agreement with a seller by April 30, 2010 and close on the house by the end of June 30, 2010. First time home buyers are defined as anyone who has not owned a home for the past 3 years. First time home buyers will get an $8,000 tax credit, similar to the tax credit for much of 2009. Other home buyers, who have owned their current home for at least five years, are eligible for a $6,500 tax credit.
Income limitations have been increased to $125,000 for single filers and $225,000 for joint filers. The purchase price of the home must be less than $800,000. The estimated loss in tax revenue to the government comes to $10.8 billion. – creditunionsonline.com
While there was some speculation over whether the first time home buyer’s tax credit would be extended or not, I never waivered in my belief that it was coming. With banks that have used or are still using stimulus money handing out huge bonuses, there was no way the American public was going to lose this. If so, there would have been a march on Congress with pitchforks and torches!!
| Currently No Comments »
Cardiff homes for under $400K?
September 14th, 2009 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
CARDIFF- I am blessed to have great clients. Currently, I am working on building a
relationship with a local builder that could be a long term benefit to us both.
There are a couple homes for sale in the Cardiff area of late that are coming in at under $400,000. While researching one of these as an investment possibility, it’s a fixer, I came across this sold listing that clearly states our current market.
FORECLOSURE! 5 BEDROOM HOME, ONE BLOCK EAST OF I-5. BANK WILL FINANCE YOUR HARD TO QUALIFY BUYER W/ONLY 5% DOWN! CALL VICTOR FOR DETAILS, THIS HOUSE HAS FREEWAY NOISE, BUT AT $102/PER SQ FT YOU CAN BUY EAR PLUGS!
This was a home listing in 1994!!! While $102 a square foot is long gone and hard to qualify buyers are just that, it really struck a chord with me. It is a very accurate depiction that the real estate market is a cycle. Today this home is valued at just under $580,000.
| Currently No Comments »
Terramar beach: Why homeowners association can be a blessing
August 30th, 2009 Categories: Real Estate News, San Diego County Bike Rides, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News
CARLSBAD- I have had quite a few clients who avoid communities with homeowners association 
like the plague. This has nothing to do with the fee levied by the association, but everything to do with not liking to be told what you can and can not do with your private property.
I have often times suggest that buyer’s view a communities HOA as a form of an insurance policy protecting property values. By maintaining uniformity in construction and colors, maintaining and improving common areas and preventing your neighbor’s teenage son from starting a mechanic’s garage in his driveway, they truly can be a blessing. Yes, I have hear the arguments about property rights and the lack of common sense board member’s often use in decision making, but I do believe they perform a very beneficial function for the community unfortunately at times at the individual’s expense.
Here is a great example of why at least one owner wish they had an association.
The Terramar beach community in Carlsbad was first developed in the late 1940’s. The community boasts the only private beach in the city of Carlsbad and while they have the Terramar association, I am not aware of this association having any powers over individual homeowners. As is the case up and down San Diego’s coast, they ranch style homes that once were a simple of southern California are being replaced by massive homes worth millions.
On a recent bike ride down the coast I almost crashed doing a double take as I rode past the intersection of Tierra Del Oro and the coast highway in the Terramar community. Crossing the intersection to this bluff top community, the first thing you now see is a freshly painted classic ranch home in PINK. And not all of it, just the front!!! It’s hard to imagine that this homeowner is not trying hard to make some type of statement at the detriment to their community at large.
Now, to the north of the ho me is an ocean front lot which recently sold for 2.7 million dollars. To the south, is a newly constructed, 5019 Tierra Del Oro, home currently listed for sale for $9.9-10.8 million dollars.
Imagine the impact on this seller!!
With an HOA the chances of this one homeowner being able to hold their neighborhood hostage would be prevented thus protect the other homeowners from the impact this action can have on a neighborhood. Imagine the hesitancy anyone would have in dropping any amount of money to live next door to this “problem”, which by the way is for rent.
This may be the perfect time for the homeowners of Terramar to come together and institute an association to prevent this type of thing. It’s always someone else’s problem until it is not and then it’s usually too late.
So the lesson here is, when looking for your next home consider EVERYTHING a homeowners association can do to help maintain the value of your home!!!
If you are in the market for a $10. milllion dollar beach home or a $100K condo, call me. I appreciate all my clients large and small!! 760.415.3329
| Currently 1 Comment »
First time buyer’s tax credit to be extended?
August 23rd, 2009 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO- The constant chatter about low inventory in the first time buyer market has been 
overshadowed this last week by the realization that the first time homebuyer’s tax credit was approaching its expiration date. Now November 30th is still a ways off by the calendar, but in real estate ‘years’ it is appropriate to be concerned.
“an especially urgent matter if you’re a buyer just starting to shop and you see entry-level prices bottoming out or rebounding in many local markets and you want to take advantage of the credit, which is more generous than last year’s”- 08/22/2009, Washington Post*
Currently short sales are still the dominant transaction in the San Diego County real estate market and with the short sale process averaging 3-4 months, you can see why this topic has moved to the front of the line. Without an extension of the current expiration date, this is crunch time. In order to qualify for the tax credit you must have closed your transaction by 11-30-2009.
| Currently 1 Comment »
Investing in real estate without buying a house
August 18th, 2009 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week
SAN DIEGO- If you could buy property at ten cents to the dollar of peak value, would you? Well Brookfield Properties Corp and its sister Brookfield Asset Management are teaming up to do just that and more. In fact they are raising $4.9 billion dollars to buy, buy, buy!!!
There are 3,200 unfinished McMansions sitting in a suburban Los Angeles neighbourhood, where developers spent more than $150-million (U.S.) to build sewers, grade lots and pave roads for an upscale development, only to see the market crash.
“We do know this is currently one of the worst residential markets in the U.S.,” Mr. Flatt(CEO of Brookfield Asset Management) said in explaining the Riverside project during a conference call last Friday. “However, just to put it into perspective, the lots are within an hour of Los Angeles [and] were purchased for less than 10 per cent of the value attributed to land and infrastructure at the peak. … So these are at pretty low values.”
“Over all, we believe the infrastructure asset management industry is in the early stages of a multidecade growth trajectory,” he said.
And Brookfield is thinking about real estate holdings in terms of decades. During last Friday’s conference call, Mr. Flatt said it anticipates making up to a seven-fold return on its recent investment in Riverside, Calif., over the next 10 years(edit). -The Globe and Mail, 08/12/2009
Both companies BPO and BAM are trading near the midrange of their 52 week ranges and may be the perfect venue for those looking to capitalize on low real estate values yet are not able to purchase their own properties.
From Todd Sullivan writing for Seeking Alpha, “The beauty of investing in real estate this way is that you get the benefit of these folks’ expertise which, based on results, is tops in the industry. You also get a global opportunity and the patience they have to execute the right deals at the right time.”
| Currently No Comments »
Outstanding Vista investment opportunity
July 30th, 2009 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
VISTA- Here is an opportunity to start building your real estate portfolio with this Vista investment opportunity.
This 3 bedroom 2.5 bath twinhome listed at $207,800 by Keller Williams, is approximately 1426 square feet and was built in 1989. It features a two car garage is in great condition for a bank owned home in the and has a premium location backing to the community park. Additionally it features very low HO fees of only $175 a month and is in the small California Villas community of 60 homes.
In 2006 these homes were selling in the mid $400’s so there is plenty of future upside and as an investment you can expect rent in $1550 to $1650 range. The last two homes sold in this community closed at $215K and $225K and they were both only 1185 square feet. One of these closed in April and the other in May.
If interested in this Vista investment opportunity contact me at 760.415.3329.
| Currently No Comments »
The idiocy of the short sale
July 9th, 2009 Categories: San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO- Here is just a quick example of why short sales are such a pain in the neck for everyone.
I have a negotiator for WAMU/Chase on a short sale I have listed that is being stubborn and hiding behind the ‘guidelines’ yet will not produce a written copy of the guideline supporting his position. Today we decided to take it to his supervisor which in itself took patience and consistency.
I called the supervisors number and reached her voicemail which stated she was out of the office and instructed me to call a new number of person B. When I called that number I was given two options. Press 1 for mortgages and 2 for equity lines. When I pressed 1 a new announcement came on stating that the number was no longer a valid number and that WAMU was now part of Chase and to call a different number. I thought that was a bit odd, so I called again deciding to hit option 2. I got through to a phone system and punched in the extension of the referred supervisor.
Her voicemail indicated she would be out of the office 6/20 to 6/29, today is July 9th, and to call a third person at the same number but a different extension. I called this third person only to get their voicemail that they were out of the office.
And that’s a day spent on a short sale.
| Currently No Comments »
