The OCRegister.com just published a nice article about our family trip last year:
http://ochomes.freedomblogging.com/2010/01/27/star-real-estate-top-producer-returns-from-around-the-world-trip/1521/
Wednesday, January 27, 2010
Monday, January 25, 2010
Want to Get Away? How About Cabo?!
This is product outside of our normal geographic business focus but notable nonetheless.
Newer home for sale on the corridor area of Cabo San Lucas with a private pool, spa and ocean views.
In Orange County this would cost at least $1.5M.
In cabo, this is for sale for $735K.
Check out the video tour:
http://www.youtube.com/watch?v=8mtPu6BKB7Q
Newer home for sale on the corridor area of Cabo San Lucas with a private pool, spa and ocean views.
In Orange County this would cost at least $1.5M.
In cabo, this is for sale for $735K.
Check out the video tour:
http://www.youtube.com/watch?v=8mtPu6BKB7Q
Weekend Update
The market over the past week and weekend continues to favor the distressed properties as most of the transactions initiated and completed were either short sales or foreclosures.
The buyer activity - i.e. buyers walking through open houses, pursuing homes - has increased and is busy after the start of the new year.
It is my feeling that the end consumer has started to believe that if we are not at the bottom of the market, then the bottom is close. People are starting to re-learn the market, starting to evaluate product and the general feeling is that "the worst is behind them."
However, that sentiment has not translated into a flurry of purchase activity, except for the low-hanging fruit on the pricing scale - i.e. inventory under the $500K mark. There are still more buyers sitting on the sidelines than actually writing contracts but that too is evolving as consumers become more comfortable with housing forecasts.
Interest rates on loans did very well last week and actually dipped below 5%.
The buyer activity - i.e. buyers walking through open houses, pursuing homes - has increased and is busy after the start of the new year.
It is my feeling that the end consumer has started to believe that if we are not at the bottom of the market, then the bottom is close. People are starting to re-learn the market, starting to evaluate product and the general feeling is that "the worst is behind them."
However, that sentiment has not translated into a flurry of purchase activity, except for the low-hanging fruit on the pricing scale - i.e. inventory under the $500K mark. There are still more buyers sitting on the sidelines than actually writing contracts but that too is evolving as consumers become more comfortable with housing forecasts.
Interest rates on loans did very well last week and actually dipped below 5%.
Tuesday, January 12, 2010
Short Sales versus Foreclosures: Pros and Cons
Information Outline on Short Sales and Foreclosures
What is a Short Sale?
A short sale means the lender is accepting a discounted payoff to release an existing mortgage.
Short Sale Advantages:
1. The seller is in control of the sale, not the bank (like in a foreclosure)
2. The impact on a sellers credit is less than a foreclosure
3. Credit bureaus do not typically show 'short sale' on your credit. Bureaus will show 'late payments'
4. The sales process, once approved by the bank, is handled like a typical sale
5. As a buyer, you can sometimes purchase properties at discounted rates relative to other closed sales
Short Sale Disadvantages:
1. Sellers credit will be impacted - average impact on credit is reported to be between 50-150 FICO points
2. Sellers must typically wait 2 years before buying another home
3. Some banks will take several weeks to months to respond to offers, frustrating some buyers in the process
4. State taxation of debt relieved via a short-sale is negotiable with bank during short-sale process
It is imperative to use a skilled agent to help guide you through the purchase and/or sale aspects of a short-sale. Please contact our office for additional information on short sales.
What is a Foreclosure:
A foreclosure means the seller has defaulted on the loan and the bank will seize and sell the property to re-pay the debt. The bank will initiate a 'Notice of Default' with the homeowner and then try to sell the property at an auction (Trustee Sale). If the property is not sold at the auction, the bank then takes the property into their inventory and it becomes an REO(bank-owned) property which they will then market and sell on the public MLS (real estate multiple listing service).
Foreclosure Advantages:
1. There are no advantages to a seller in a foreclosure.
2. There are major advantages to buying foreclosures. Sales take place within 15-45 days once they are put on the MLS and are usually deeply discounted. Once properties are on the MLS, buyers can use loans to purchase properties, as opposed to an all-cash purchase at an auction.
Foreclosure Disadvantages:
1. The bank will repossess the home to satisfy their outstanding debt on the property.
2. The sellers credit will be impacted with a foreclosure - typical impact on credit is 200-400 FICO points
3. Sellers must wait an average of 5-7 years to purchase a new home
4. Unless exempt or filing bankruptcy, sellers will have state taxation issues with debt relieved from bank
Buyers can purchase foreclosures either via local public auctions directly or via the public MLS using our real estate services. Buyer beware: properties purchased at auctions are typically all-cash 'as-is' purchases and may have hidden liens not disclosed in a sale, becoming the responsibility of the buyer. It is very important to use our services or complete significant due diligence prior to purchasing a foreclosure.
Please contact our office at: 714-500-3332 with any follow-up questions or to obtain more details on purchasing or selling short sales and foreclosures.
What is a Short Sale?
A short sale means the lender is accepting a discounted payoff to release an existing mortgage.
Short Sale Advantages:
1. The seller is in control of the sale, not the bank (like in a foreclosure)
2. The impact on a sellers credit is less than a foreclosure
3. Credit bureaus do not typically show 'short sale' on your credit. Bureaus will show 'late payments'
4. The sales process, once approved by the bank, is handled like a typical sale
5. As a buyer, you can sometimes purchase properties at discounted rates relative to other closed sales
Short Sale Disadvantages:
1. Sellers credit will be impacted - average impact on credit is reported to be between 50-150 FICO points
2. Sellers must typically wait 2 years before buying another home
3. Some banks will take several weeks to months to respond to offers, frustrating some buyers in the process
4. State taxation of debt relieved via a short-sale is negotiable with bank during short-sale process
It is imperative to use a skilled agent to help guide you through the purchase and/or sale aspects of a short-sale. Please contact our office for additional information on short sales.
What is a Foreclosure:
A foreclosure means the seller has defaulted on the loan and the bank will seize and sell the property to re-pay the debt. The bank will initiate a 'Notice of Default' with the homeowner and then try to sell the property at an auction (Trustee Sale). If the property is not sold at the auction, the bank then takes the property into their inventory and it becomes an REO(bank-owned) property which they will then market and sell on the public MLS (real estate multiple listing service).
Foreclosure Advantages:
1. There are no advantages to a seller in a foreclosure.
2. There are major advantages to buying foreclosures. Sales take place within 15-45 days once they are put on the MLS and are usually deeply discounted. Once properties are on the MLS, buyers can use loans to purchase properties, as opposed to an all-cash purchase at an auction.
Foreclosure Disadvantages:
1. The bank will repossess the home to satisfy their outstanding debt on the property.
2. The sellers credit will be impacted with a foreclosure - typical impact on credit is 200-400 FICO points
3. Sellers must wait an average of 5-7 years to purchase a new home
4. Unless exempt or filing bankruptcy, sellers will have state taxation issues with debt relieved from bank
Buyers can purchase foreclosures either via local public auctions directly or via the public MLS using our real estate services. Buyer beware: properties purchased at auctions are typically all-cash 'as-is' purchases and may have hidden liens not disclosed in a sale, becoming the responsibility of the buyer. It is very important to use our services or complete significant due diligence prior to purchasing a foreclosure.
Please contact our office at: 714-500-3332 with any follow-up questions or to obtain more details on purchasing or selling short sales and foreclosures.
Friday, December 5, 2008
December update
There are some notable highlights to come out of the real estate and finance markets over the past couple weeks that I wanted to keep you in touch with - as always, please do not hesitate to let me know if you would like additional information on any of the following:
1. Refinancing and purchase activity has spiked in the past week with interest rates on loans dropping dramatically. Interest rates on a 30-year fixed loan are hovering in the mid-5% range depending on credit and loan size. The 30-year fixed loans have been cheaper than 5 and 7-year adjustable loans! The conforming loan limits are going to be moving from $417K to $625K in January which will be a good move for Orange County purchasing.
2. At the same time, the US Treasury is working through the possibility of providing 4.5% loans to new borrowers on owner-occupied purchases. This plan is still in the works but would provide Fannie and Freddie-backed loans to new consumers to stimulate the national housing market.
3. The economists have all finally admitted that we have been in a recession for about one year, since December of 2007. I am sure that is of no surprise to anyone reading this email. This recession has already lasted longer than most and the economists are hoping for some of the government-sponsored programs to shift the economy out of this zone as quick as possible.
4. Real Estate news has taken a back seat to Wall Street over the past 6 weeks as the market volatility has continued. Most traders agree that while there are some very good buys right now, December is expected to drop even lower as hedge funds and mutual funds are forced to sell some of their holdings to cover their capital gains on prior transactions.
5. Real Estate and Wall Street pricing are seeing dramatic lows not seen in years. Many real estate transactions are trading at values not seen since 2002 and 2003. At the same time, the stock market is seeing some blue chip stocks trading at lows not seen since the mid-late 1990's.
The fact remains that this is not a market to speculate or flip properties but an amazing time to buy for long-term value investors. The key is finding the right product you believe in - whether it is real estate or stocks - and locking in low interest-rates and a low strike price.
That is the latest news from the street - I will keep you updated as I learn more and I hope that your holiday season is off to a fantastic start. As always, I appreciate you keeping me in mind for your real estate pursuits and for your referrals.
Have a great weekend.
1. Refinancing and purchase activity has spiked in the past week with interest rates on loans dropping dramatically. Interest rates on a 30-year fixed loan are hovering in the mid-5% range depending on credit and loan size. The 30-year fixed loans have been cheaper than 5 and 7-year adjustable loans! The conforming loan limits are going to be moving from $417K to $625K in January which will be a good move for Orange County purchasing.
2. At the same time, the US Treasury is working through the possibility of providing 4.5% loans to new borrowers on owner-occupied purchases. This plan is still in the works but would provide Fannie and Freddie-backed loans to new consumers to stimulate the national housing market.
3. The economists have all finally admitted that we have been in a recession for about one year, since December of 2007. I am sure that is of no surprise to anyone reading this email. This recession has already lasted longer than most and the economists are hoping for some of the government-sponsored programs to shift the economy out of this zone as quick as possible.
4. Real Estate news has taken a back seat to Wall Street over the past 6 weeks as the market volatility has continued. Most traders agree that while there are some very good buys right now, December is expected to drop even lower as hedge funds and mutual funds are forced to sell some of their holdings to cover their capital gains on prior transactions.
5. Real Estate and Wall Street pricing are seeing dramatic lows not seen in years. Many real estate transactions are trading at values not seen since 2002 and 2003. At the same time, the stock market is seeing some blue chip stocks trading at lows not seen since the mid-late 1990's.
The fact remains that this is not a market to speculate or flip properties but an amazing time to buy for long-term value investors. The key is finding the right product you believe in - whether it is real estate or stocks - and locking in low interest-rates and a low strike price.
That is the latest news from the street - I will keep you updated as I learn more and I hope that your holiday season is off to a fantastic start. As always, I appreciate you keeping me in mind for your real estate pursuits and for your referrals.
Have a great weekend.
Tuesday, November 18, 2008
Foreclosures Raise Volume of Homes Sold
Over the past 60 days, foreclosed properties on the market have brought about 2 developments in the market: they have increased the volume of transactions taking place and decreased the average sales price of the transaction.
The OC Register reports recently;
"Bargain-basement sales helped pull down home prices in the SoCal region last month and boosted the number of transactions by a record 67%, DataQuick reported today.
The median price of a Southern California home fell to $300,000 in October — the lowest since April 2003 and down 41% below the peak price hit in the spring and summer of 2007.
The record gain in sales was attributable to very weak sales last year and high foreclosures this year."
Banks have started to look realistically at pricing foreclosed properties and entertaining short sales. This means better opportunities for buyers and more flexibility for sellers trying to get out of a distressed situation.
The OC Register reports recently;
"Bargain-basement sales helped pull down home prices in the SoCal region last month and boosted the number of transactions by a record 67%, DataQuick reported today.
The median price of a Southern California home fell to $300,000 in October — the lowest since April 2003 and down 41% below the peak price hit in the spring and summer of 2007.
The record gain in sales was attributable to very weak sales last year and high foreclosures this year."
Banks have started to look realistically at pricing foreclosed properties and entertaining short sales. This means better opportunities for buyers and more flexibility for sellers trying to get out of a distressed situation.
Monday, November 3, 2008
Halloween Weekend Update
Happy Halloween weekend,
This has been an active week in the real estate and finance markets. Here is the latest information for your review:
1. The Fed Has Reduced Interest Rates - again. The Fed reduced the Fed funds rate, which impacts variable lending rates, to 1%. This is the lowest since 2001 and will reduce payments on home equity lines and credit cards. The Fed is doing whatever they can to encourage economic growth by enticing businesses to start to borrow money to expand and encouraging banks to lend to them more freely.
2. September Sales Volumes Way Up. Orange County September real estate sales increased about 62% versus sales data from one year ago. Sales volume is still down versus historic numbers. Sales volume has increased by double digits for 3 straight months - July-September. This has not impacted sales prices, which remain lower.
3. Short Sales and REO's ARE closing. A large part of the transactions in the marketplace right now are bank-owned homes(REO's) and short-sales. Buyers are taking advantage of aggressive bank pricing and the bank's are starting to work with sellers who need to complete short-sales to get out of their homes. Not all short-sales are going through - we can help you qualify the right ones to pursue. Banks are getting multiple offers on homes/condos when they are priced right.
4. No One Can Predict The Bottom - on any street. Economists on Wall Street and Analysts on Main Street all agree that no one can predict the bottom of the real estate and stock markets. What they DO all agree on is that in both markets, there remains clear opportunities for long-term buyers. Buyers are purchasing homes/condos in many markets for 50-70 cents on the dollar versus where prices were a couple years ago. This not a consistent number however - some markets have more inventory and are getting hit harder than others.
5. Our MLS system provides access to ALL properties in 4 surrounding counties. Our MLS is now consolidated to include Orange, San Diego, Riverside and LA County - we can access information on any short-sale, foreclosure or traditional sale in those areas.
I hope everyone had a great Halloween weekend!
This has been an active week in the real estate and finance markets. Here is the latest information for your review:
1. The Fed Has Reduced Interest Rates - again. The Fed reduced the Fed funds rate, which impacts variable lending rates, to 1%. This is the lowest since 2001 and will reduce payments on home equity lines and credit cards. The Fed is doing whatever they can to encourage economic growth by enticing businesses to start to borrow money to expand and encouraging banks to lend to them more freely.
2. September Sales Volumes Way Up. Orange County September real estate sales increased about 62% versus sales data from one year ago. Sales volume is still down versus historic numbers. Sales volume has increased by double digits for 3 straight months - July-September. This has not impacted sales prices, which remain lower.
3. Short Sales and REO's ARE closing. A large part of the transactions in the marketplace right now are bank-owned homes(REO's) and short-sales. Buyers are taking advantage of aggressive bank pricing and the bank's are starting to work with sellers who need to complete short-sales to get out of their homes. Not all short-sales are going through - we can help you qualify the right ones to pursue. Banks are getting multiple offers on homes/condos when they are priced right.
4. No One Can Predict The Bottom - on any street. Economists on Wall Street and Analysts on Main Street all agree that no one can predict the bottom of the real estate and stock markets. What they DO all agree on is that in both markets, there remains clear opportunities for long-term buyers. Buyers are purchasing homes/condos in many markets for 50-70 cents on the dollar versus where prices were a couple years ago. This not a consistent number however - some markets have more inventory and are getting hit harder than others.
5. Our MLS system provides access to ALL properties in 4 surrounding counties. Our MLS is now consolidated to include Orange, San Diego, Riverside and LA County - we can access information on any short-sale, foreclosure or traditional sale in those areas.
I hope everyone had a great Halloween weekend!
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