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Recent Posts
- HAPPY VALENTINES DAY – LOVE YOUR COMMUNITY
- $25 Billion in Landmark Settlement
- SAN DIEGO DEFAULT FILINGS GOING DOWN
- 15 YEAR DREAM COMES TRUE IN DOWNTOWN SAN DIEGO
- Post Thanksgiving….Pre Christmas
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Archive for the 'Real Estate News' Category
HAPPY VALENTINES DAY – LOVE YOUR COMMUNITY
Celebrate Valentines Day by buying from your community. Your neighborhood will feel your love and sense of loyalty when you purchase cards, flowers and eat your meals in your local community.
Take a stroll through your local community and see what the local merchants have to offer. It brings you a sense of belonging and pride as you wish the merchants Happy Valentines Day. 
$25 Billion in Landmark Settlement
Attorney generals and the Federal Government in 49 states have reached a landmark settlement with 5 loan servicers.
The $25 billion will be allocated to each of the 49 states who agreed with the federal settlement and direct payments to assist owners who are current on their payments but are under water. This is designed by the Obama administration to benefit the responsible homeowner who does not have a Fannie Mae or Freddie Mac or FHA loan. It’s designed so these responsible homeowners can take advantage of the low interest rates by refinancing even though they have no equity in their home.
This settlement was brought about after an investigation where Government investigative agencies, like Dept. Of Justice, and HUD, found foreclosure related documents being signed outside the presence of a notary public and without knowing whether the facts they contained were really correct. In other words they violated the law. It holds the violators accountable for unlawful practices and allocates $20 million toward homeowner relief without any amount of money coming from taxpayers. Homeowners will be able to refinance or reduce their principal without a lot of red tape. It means that current and future homeowners will now be treated fairly.
If your home is either serviced by one of the five banks or you have your loan with one of the five banks, you may be eligible for assistance.
Who should you call?
Ally/GMAC – 800 766 4622
Bank of America – 877 488 7814
CITI – 866 272 4749
JP Morgan Chase – 866 372 6901
Wells Fargo – 800 268 3212
If you would like to contact the U.S. Dept. of Housing and Urban Development, click.
I hope you found this information helpful. If you are under water, or behind in your payments and are looking for assistance, I can help you. Please contact me at 858 395 7727.
I am experienced in short sales and may be able to assist you.
15 YEAR DREAM COMES TRUE IN DOWNTOWN SAN DIEGO
Finally, after 15 years, the dream comes true in downtown San Diego at the Embarcadero.
On Thursday, January 5th, 2012, groundbreaking took place at Harbor Drive and Broadway, formerly Lane Field. Within 18 months San Diegans and visitors will be able to walk, ride and enjoy the wide, bay front esplanade, beautiful landscaped and lighted areas along Broadway, bringing to life the state of the art transformation, making the North Embarcadero Visionary Plan (NEVP), Phase 1, a reality. This phase is fully funded. When complete, the Port of San Diego and Centre City Development Corporation will embark on Phase 2 to complete the budget for the remaining NEVP.
The owners of the condos along Pacific Highway, The Grande, Electra, Bayside, & Breeza, have long awaited this transformation. They purchased their condos knowing eventually the beautification would only improve their lifestyle, from having a walking/running path close by, to enhancing their property values.
Embarcadero in San Diego before Phase 1 of visionary plan
San Diegans will now see the value of improving their city for their own use and offering another treasure for visitors to San Diego.
How Much Should You Offer?
You are about to make an offer on a home you found. So…the question is….Just how much should you offer?
In parts of San Diego, especially the downtown market, homes are selling between 95%-97% of the list price…and in many cases, they are selling at 100% of the listing price.
Why is that?
1. Most homes have already been discounted 30%, 40% and 50%.
2. Lack of inventory has created a demand.
3. Multiple offers pushes prices above listing prices.
In this market, the post sub-prime era, banks have put a stopper on buyers over-paying for real estate. Appraisers are appraising property below the real value. Which is an argument that is debatable by both sellers, banks, appraisers and real estate agents. But, whatever the debate, the California Association of Realtors has created a Real Estate Purchase Agreement with a paragraph devoted to allowing the buyer the option to cancel the purchase if the property does NOT appraise at the agreed offer price. Another good argument for every Buyer to use a Realtor….and not purchase directly from the Seller without the benefit of that “out” option.
For more information regarding Appraisals, property search, and contracts, please feel free to call me…858 395 7727.
CAN YOU SHORT SALE?
You can’t just walk away from your house and list it as a short sale. It’s not that easy. And it shouldn’t be. With the onslaught of “short sales” in the San Diego marketplace, it creates a feeding frenzy for buyers. Great for the buyer that prevails. Great for the agent who closes the transaction after putting in a GaZillion hours in locating the property and finally, writing the offer(s)….yes…..offers, since it may take anywhere from 5-10 offers to get an acceptance. But, what if at the end of the day, the “short sale” is NOT approved by the lender? What happens then? What happens is the buyer spent all that time and emotion thinking they are going to get a house that doesn’t qualify for a short sale.
A short sale is when the lender agrees to accept less than what is owed on the property. But there are stipulations here. You can’t just put your home on the market and get an offer and send it to the lender and…boom…done deal.
The owner (seller) must be behind in mortgage payments…I said payments…with an “s”. The seller must have hardship, loss of employment, debt (and late on those payments), medical issues, etc. The Realtor handling the sale for a “short sale”, will require verification the owner has sent his hardship package to the lender and has been communicating with them toward an approval. Or….a good Realtor can assist the Seller in getting the hardship package together. All this homework done early will help the Seller to get through the process quicker. Once listed as a “short sale”, the buyers can submit offers to the Seller for the Seller’s approval. Then, the offer and the short sale package can be submitted to the lender for approval.
The best way to sell your home is by a “traditional” sale. Accepting an offer and paying off your loan. There are consequences when you sell your home short. You are not able to sell your home “short” and then go out and buy another in this market. Doesn’t work that way.
If you are upside down, or have received a “foreclosure” notice, call me so I can assist you with your questions and provide you with a way out where you still have your pride.
WHAT’S THE STORY ON DISTRESSED HOME SALES?
So….what’s the real story? Is the economy beginning to recover? Have we leveled off? Will there be more foreclosures flooding the marketplace? Are short sales selling in the marketplace? What’s a better buy? Short sales or foreclosures? These are all good questions. Let me help you to understand in simple numbers the difference between foreclosures and short sales, and what is the better deal.
The answers differ in each state. In San Diego, a lifestyle that includes urban and rural, and much of it outdoors where the sun is abundant, it differs almost in regions.
What’s a better buy? Short sales? Foreclosures? It depends. Short sale sellers still have title to the property and own it. Hopefully they have been in communication with their lender with regard to a short sale possibility. It also doesn’t mean, just because a seller accepts your offer on his short sale that the lender will go along with it. The seller must be in hardship, must have missed payments and the lender must be willing to look and accept a reasonable offer. Reasonable. That means the lender wants to see comparables in the neighborhood of like properties. So, this could be a good deal.
A foreclosure is where the bank has taken back the property and now they are the owner. Also known as REO (real estate owned). The agent representing the bank on a foreclosure has arrived at the listing price with the help of comparables of like property for the lender. So, this could be a good deal.
What’s the best deal? Some of the better deals are made when a seller has equity in the property and has motivation to sell to a buyer who has been pre-approved. This is where agents can really put on their best negotiating skills to make the best deal for both buyer and seller.
Here is a simple chart showing the number of Notice of Defaults issues as of December, 2010, by value of property. The bulk of the defaulted loans are in the $300k-$400k price point.
No one really knows where it’s going, but if you are considering selling your home, or perhaps buying real estate, call your agent and discuss your needs, your motivation and your opportunities.
6 AVOIDABLE MISTAKES FOR FIRST-TIME HOME BUYERS
It happens every day. First-time home buyers, partly due to enthusiasm, partly due to ignorance, make costly mistakes during the home buying process. To help you keep your sanity and your cash, become an educated consumer and avoid the mistakes that others have made before you.
Mistake #1: Not planning ahead. From the moment you think about buying a home, start planning. Home buying is a time-consuming and demanding process, and it behooves you to utilize your management skills early on.
Start by requesting a copy of your credit report. Carefully examine it for errors, and clean it up before you talk to a lender.
Are you currently renting? Check your lease for an early release clause. If you’ll be subject to penalties, try to time your closing with the expiration of the lease.
During this planning phase, consider your life over the next five to seven years. Do you plan to start a family? Will an in-law eventually move in with you? Will you be working from home? The number and layout of the rooms you require will depend on your answers.
If you qualify for financing based on a dual income, will you be able to survive on one salary in order to fulfill a long-range plan, such as one parent staying home to raise a child? Once you’ve answered these questions, establish a plan. Then direct the process with reference to the plan.
Mistake #2: Failing to understand the home buying process. First-time homebuyers need to ask lots of questions. So choose a real estate agent who has experience working with the uninitiated and is willing to explain the entire homebuying process – from viewing homes to negotiating, to financing, to escrow and closing – in detail until you understand it.
Mistake #3: Getting in too deep. It can happen when home-buyers shop outside their budgets or over-extend themselves. What can you do to avoid getting hooked? Monitor your expenses for a couple of months. Then, based on your findings, develop a budget that truly reflects your lifestyle. Talk to a real estate agent who can provide insight into new-home expenses and taxes. Then revise your budget.
It’s smart to ask your lender to pre-approve, rather than pre-qualify, you for a mortgage. Pre-qualification only tells how much you can afford. Pre-approval goes a step further. Your lender will thoroughly evaluate your application – including verifying employment information and financial disposition – then clear you for a loan of a determined amount. Having your loan pre-approved gives you a sizeable advantage: Your new status as a cash buyer makes you more attractive to the seller.
Once you learn how much of a home you can afford, stay within your budget. Just because you’ve been approved for a certain amount, doesn’t mean you’ll feel comfortable with monthly payments at the high end of the range. Ask yourself if you can live with these payments. And when you relay your price range to a real estate agent, ask to view properties within that range only. By restricting yourself, you’ll avoid disappointment later on.
Mistake #4: Being ruled by the heart and not the head. Curb appeal can be a powerful force. It’s the first-time buyer’s kryptonite. By disengaging the mental faculties, it leaves the homebuyer emotionally vulnerable. To counter its effect, you must be brutally objective.
Look at many homes, including an assortment of types of homes. When you view a property, list the positives and the negatives. Take along a tape measure and record the measurements of all the rooms. Make certain your furniture will comfortably fit into the space. Visit at various times of day to see how much natural light floods the rooms and check for changes in traffic patterns, especially at local rush hours. Have an inspector or engineer pick apart the property. And recruit a friend to view the home and provide you with objective feedback.
Also, think about how long you plan to own the house. Would it be difficult to resell? List the negatives. Could you eliminate or reduce them?
Mistake #5: Buying into an unknown location. Don’t stop your inspection at the property line. Examine the surrounding area. Is it safe, well maintained and moderately quiet? Is it convenient to work, schools and shops?
Ask about zoning and that lovely forest of vacant land across the street. Could the highway nearby be widened in a couple of years? How far is the train? Within ear shot? If you’re not familiar with the area, ask friends and colleagues about it. Do your research.
Mistake #6: Signing without understanding the financing. Here’s where it helps to be a quick study. First-time homebuyers have to contend with an assortment of mortgage types and the associated jargon. Your real estate agent can be a great resource.
Shop around and compare. When you decide on a lender (a bank, your credit union, or a mortgage lender) and a mortgage, get every detail in writing, in particular, the lock-in rate, points and fees. And request a copy for your file. You should also request an estimate of your closing costs and inquire about prepayment penalties. Have the lender attach an addendum to your contract that specifies that no penalties will be imposed for prepaying the loan. This step could save you a good deal of money.
Before you get to the table, read all the documents related to the purchase of the property, and have a professional review them. You’re signing a binding, legal document. Make certain you understand the conditions of the loan. This is when your Realtor becomes invaluable.
8 TIPS ON PREPARING YOUR HOME FOR WINTER
Preparing your home for winter will help save money in the long run. Take care of these things now and you will be preserving your equity and create Pride of Ownership.
If you live in “hard winter” states, you will want to add insulation to the attic and sweep the chimney. Winter in Southern California is like Spring in Minnesota. We complain a lot here in San Diego, but we actually have it easy. Homeowners still need to maintain the important parts to the house to continue the functionality without major breakdowns.
In Southern California we consider our winterization as continued maintenance. Continuously checking on the maintenance of the following areas will keep your home operating year round.
1. Clean your gutters (unless you live in a condo). Make sure you remove all debris.
2. Change your batteries in your smoke alarms (unless they are hard-wired). Smoke detectors should be checked twice a year….Spring and Winter
3. Change your air filters (in both condos and single family homes)
4. While you’re at it….check your furnace.
5. Check your Gas and Electric appliances. Your utility company will come out and check your appliances for free.
6. Even in California it gets cold, so weather strip your windows and doors. This will help keep the heat in during those cold nights.
7. Have a Termite Report done. Rodents love to find cozy, warm places to stay…usually the attic. An inspection will locate them.
8. Inspect your roof for (1) holes, (2) missing tiles (3) bare spots. Once it starts raining, you’ll be happy you did.
BUYING INTO EQUITY
I must either be the luckiest Real Estate Associate, a great negotiator, or maybe this is just a sign of the times, but my last 3 sales have made my buyers very happy. I like happy buyers. Happy buyers make me feel and look good.
First there was a downtown condo sale. At close of escrow this developer sale appraised at $10,000 above sale price. Do you think the buyer was happy to see that? You bet. They got an incredible deal. Free parking for an extra car, and developer incentives of over $15,000. No condo in that building has sold lower since this sale.
Second was a foreclosure in Carlsbad. A four bedroom home on a 1/2 acre with a lap pool. The appraisal came in at over 10% of the sale price. Another happy couple. Foreclosures are very different from short sales and traditional sales in that the seller is the bank. The sale is an “as is” sale, meaning the buyer absorbs all costs, including termite clearance, plumbing problems, electrical problems, damaged cabinets, carpets, paint….everything. If the buyer has to come out of pocket $10k, they are still ahead.
Third was a home in Mission Hills. The appraisal came in at almost 10% of list price. Again, this wasn’t a traditional sale…but a Trust sale. This is also an “as is” sale, again some costs to the buyer. But, still, even if there are costs to bring it to the buyer’s standard, they are in equity.
What does any of this mean for the buyers? It means equity. If they needed to sell these homes right now, they could either break even or profit by a small margin.
In this market…..that’s huge.
In certain markets in San Diego we are seeing buyers buy in to equity more often.
I like to think I’m a great negotiator, (I am) but the truth is….this is the strangest market I’ve ever seen.
My recommendation is this is a great time to buyer real estate. Take advantage of the Monster-low interest rates, the FHA/VA opportunities (3.5% down), the foreclosures, the short sales, and yes…of course…even the equity sales, where there is actually a live, seller who has equity in his/her home and want you to negotiate.
Find homes on my site under Home Search…or call me for assistance in selling your home.
Always get pre-approved first. All these buyers were approved before the offer was made.
Check out “Stay Connected”, on my website. Greg Wickstrand, Home Services Lending, will help you without obligation.
SAN DIEGO RENTAL MARKET-Downtown Zip 92101
The rental market in San Diego, especially the downtown condos, lease quickly….if priced right. Just like the Re-Sale market.
I don’t specialize in the leasing market, however, I will list a property to help out a client, but I don’t actively look for condo listings. Once in a while a potential buyer will decide to rent for a year before they decide where they want to live in San Diego, and I am happy to find a place for them through our MLS.
If you’re planning on coming to San Diego and would prefer to lease for a year until you discover the area of San Diego that fits your lifestyle, this may be the right time for you.
Currently there are 133 condos listed for lease in downtown SD, zip 92101, ranging from $1,400 – $12,000.
During the 1st Quarter of 2009, there were 121 properties leased ranging from $1,50 – $7,200.
During the 2nd Quarter of 2009, there were 114 properties leased ranging from $1150 – $6,000.
During the 3rd Quarter of 2009, there were 112 properties leased ranging from $1100 – $7,200.
During the 4th Quarter of 2009, there were 94 properties leased ranging from $1300 – $6,600.
The first Half of 2010 statistics are…277 properties leased, ranging from $1080 – $5,995.00. There are fewer leased properties in 2010 than in 2009. Also, the rents are lower in 2010. The attractive low interest rates are making the mortgage payments lower than what some monthly rental rates would be taking into consideration the interest rate deduction.
The MLS grants Realtors the opportunity to market leases…. but, like I said, for a fee. Regardless of the fee charged, the MLS is used by Brokers to locate property in all areas of San Diego. It’s worth establishing an Agency and hiring a Broker to lease your property. If you are looking for a lease…there is no cost … except the move-in expenses.
You are able to look for leases on my website using the Search Property button. I will be happy to guide you through it, if you have certain criteria.
