San Diego North County Home Expert

Latest NAR survey indicates 89% of buyers purchased their home through a licensed agent!

2012-01-24T08:23:00.000-08:00

Each year, NAR, National Association of Realtors, performs a survey of buyers and sellers to better understand their wants and needs. The most recent survey reported that 89% of buyers used a licensed real estate agent to help them purchase a home. That is up 20% from a decade ago in 2001. This article also goes into why buyers choose to use a real estate agent to help them, but I thought I would give my two cents, as I specialize in working with buyers and love working with them!

The poll says that the first reason buyer work with agents is because they are licensed, which means they , have completed classwork, are educated, experienced and trained. Well, I beg to differ on this point! I agree the agents have completed classwork, but I know from dealing with dozens of agents over the years that the level of education, experience, and training varies dramatically! Quite frankly, it's easy to become and agent and many times they lack education, knowledge, and experience and end up giving the whole group a bad reputation. And, you don't have to be a young agent to be unprofessional. So, why am I saying this? Well, because it stresses the importance of choosing an agent who is a professional and who actually has sufficient knowledge about the purchase and transaction process. It also helps for the agent to have excellent human relation, conflict resolution, and problem solving skills. I can't tell you how many times I've been on the phone with an agent who starts yelling at me and has no idea how to act professionally.

More to come. . .

Freddie Mac Offers up to $1,500 Condo Cash for HomeSteps Properties

2011-08-17T05:47:00.000-07:00

Below is part of an article regarding an announcement by Freddie Mac. They are offering to pay up to $1,500 is association dues if a buyer purchases a Homesteps property that has been on the market for at least 120 days. The buyer must intend to purchase this property as owner occupied. Homesteps properties are listed in the mls but can also be found on their web site: http://www.homesteps.com/featuresearch.html . For the complete article go to: http://dc.urbanturf.com/articles/blog/freddie_mac_offers_condo_cash_for_homesteps_properties/3981 . Please let me know if I can assist you in identifying these properties! Thanks, Crista : )

Freddie Mac Offers Condo Cash for HomeSteps Properties
August 15, 20110 Comments
by UrbanTurf Staff

HomeSteps, the real estate sales unit of Freddie Mac, launched an offer today that will provide eligible condo buyers (i.e. those that buy a HomeSteps condo) with up to $1,500 in association dues.

The Condo Cash program is limited to buyers who submit offers between today and November 15, 2011 and close escrows on or before December 30, 2011. The offer is valid only on HomeSteps homes that have been on the market for at least 120 days and are sold to owner-occupant buyers, so auction, sealed bid and bulk sale properties do not qualify.

If you think that offers like these from Fannie and Freddie have become a trend in recent months, you’d be right. In May, Freddie Mac announced that it was offering up to 3.5 percent in closing cost assistance and a bonus of $1,200 to the selling agent for offers on HomeSteps properties (real estate owned or REO) received prior to July 31, 2011, in an effort to boost sales this summer.

Freddie Mac’s Brad German told UrbanTurf back then that about two-thirds of HomeSteps homes are sold to owner occupants, and that there were record sales of 31,628 properties in the first quarter of 2011.

New Law that mandates Carbon Monoxide Detectors in all residences went into effect July 1!

2011-07-20T16:59:00.000-07:00

Did you know that the new law that requires all residences to install a carbon monoxide detector went into effect July 1, 2011? Well, it did. It's called the SB 183 bill.

If you own a home that has an attached garage or any gas appliances, then you are required to install a carbon monoxide detector. These detectors are pretty cheap and can be found at Home Depot, Target, or any other home store. I found some that start at about $18 at Home Depot.

If you plan to sell your home, you are required to disclose if you home has a carbon monoxide detector installed. Best bet is to have one installed now so you don't have to worry about it later. Plus, it's the safe thing to do!

Please do not hesitate to call me if you have any real estate questions or if you know of someone who is thinking of buyer or selling a home. I would be happy to help them. Crista :)

Energy Efficient Information that can benefit you!

2011-07-14T15:26:00.000-07:00

Greetings, I just attended a webinar on Energy Efficient Windows. the webinar was given by (Efficient Windows Colaborative) whose goal is to promote energy efficient windows. It was very informative so I thought I would pass along some highlights to you. I also included some web site resources for you to click on to obtain additional information. If you are considering purchasing new windows, you might want to check out this information! It may save you a lot of money!

Did you know that you could save up to 25% on your heating costs by using energy efficient windows? You oould save up to 35% of your cooling costs by doing the same. Not only does energy efficient windows help you save money, they also provide improved comfort, condensation reduction, and reduction in fading fabrics or furniture.

How do you tell how well a window performs (Performance indicators)?
- Best method is to use Energy Star labeled windows!
- You can also look at:
* U-factor which measures how insulating a window is. the lower the U-factor the less heat loss
* Solar Head Gain Coefficient (SHGC) which is the fraction of the solar energy that enters the windows. The higher the SHGC the more solar energy
* Visible Transmittance (VT) which is the fraction of visibe light that enters the window. The hight the VT the more daylight enters
* Air leakage (AL) which is the volume of air that enters the windows when closed. The lower the AL the less infiltration

The National Fenestration Rating Council (NFRC) rates windows and you can view these labels on window products to see the key performance indicators. The NFRC rates the whole window, not just the glass. More information on these labels can be found at http://www.efficientwindows.org/nfrc.cfm

Incentives and Financing
- There still is a Federal Tax credit up to $500 when you purchase energy efficient windows. Go to http://efficientwindows.org/utilities.cfm
- The utility companies also offer rebates. You can see this information at: http://www.efficientwindows.org/utilities.cfm

So, whether it's Winter or Summer, if you don't have energy efficient windows, now may be the time you upgrade! Of course, upgrading your windows will not just decrease your energy costs, it will increase the value of your home! If you or someone you know is looking to purchase or sell their home, please give me a call. I would be happy to help. Crista :)

HomeDex Housing Statistics Announces May, 2011 Results

2011-06-16T20:19:00.000-07:00

May 2011 HomeDex report Provides April 2011 North County Housing Statistics

2011-06-10T10:13:00.000-07:00

Cal State San Marcos puts out a monthly housing statistics report called HomeDex which breaks out and compares North County housing data from the general San Diego County data. It's a wonderful resource to take a peak closer into the market where you live or want to buy to see what's going on! Here's some summary information from the report. Please contact me if you want to know the statistics for your Zip or even an estimated value of your home!

In an even more summarized version. . . detached home prices in North County are slightly down from last year, listings are up, sales are up, and time on the market is down! Here's some more detail on each of these figures.

Detached homes in North County decreased slightly by 0.04 percent from $450,165 in March 2011 to $450,000 in April 2011. Year-over median single-family detached homes in North San Diego County declined 5.16 percent, from $474,500 in April 2010, making three months of year-over declines following an 18-month trend of increases in median price (with the exception of August 2010).

The number of SFD listings (active and contingent) increased 3.03 percent from March 2011 to April 2011. Year-over listings increased by 12.04 percent from April 2010.

The number of sold North San Diego County SFD units increased 3.74 percent from March 2011 to April 2011, following a 50 percent monthly jump in March 2011.

Median days-on-market for single-family detached homes in North County decreased from 58 days in March 2011 to 50 days in April 2011.

March Conversations - with Local Experts

2011-03-23T15:08:00.000-07:00

Recently I took an opportunity to go to the NSDCAR sponsored Conversations 2011 that was held at the Escondido Performing Arts Center. George Chamberlin was the moderator and there were a series of featured panelists who were experts in Economics, Planning, Development, Energy, and Water resources. That may sound boring right off the bat, but the day turned out to quite interesting and very informative. I thought I would share a few of the highlights with you! Skip through what catches your eye!

Let me know if you have questions on any of these comments. I hope you find them useful! Crista :)

Debra Reed, Executive Vice President, Sempra Energy
Speaks on energy!

- In the next 15 years, we will have smarter energy, use less energy, and use cleaner energy
- NOW, we get 60% of our energy from natural gas, 20% from San Onofre, 13% from renewable sources such as solar, wind, and geothermal
- By 2020 30% of our energy will be from clean energy sources
- Our bills are about 25% lower than those who live out of state. Rates are high, but bills are lower due to energy efficiency
- Gas use has gone down by 50%
- The future will hold more control over how we use energy.
- San Diego ranks 7th in US in clean-tech jobs
- The Smart Meter will have a web-based program to help you evaluate energy usage so you can plan accordingly

Ken Weinberg, Director of Water Resources, San Diego County Water Authority
Speaks on Water

- We are not in a drought perior this year!
- The future holds better water efficiency
- New homes will have to adhere to landscaping efficiencies
- We'll need to invest in infrastructure
- SANDAG forecasts 20% increase in population by 2015, 5% increase in single family homes
- Legistation mandates 20% reduction in water use by 2020

Peter MacLaggan, Senior Vice President of Project Development, Poseidon Resources Corporation
Speaks on desalination Plant!
- By 2014 the Carlsbad desalination plant will be in full production, taking 32 months of construction
- For every 2 gallons of sea water, you get 1 gal of drinking water
- The 1 gallon of residual water has high concentrations of salt, so they will add other water to it before releasing it back into the sea.
- The goal of the plant is to be Carbon Neutral
- This plant will provide enough water for 300,000 residents
- Since a small amount of fish will be killed during this process, they have plans to mitigate this by improving wetlands in other area
- Check out their web site http://www.poseidonresources.com/desal_101.html

Lynn Reaser, Ph.D., Chief Economist, Fermanian Business & Economic Institute, Point Loma Nazarene University
Speaks on the Financial Market!- By end of the year she predicts interest rates will be 1/4% higher
- Long term rates have already ticked up. Will be 3 1/2% - 4 1/4% by end of year (3/4% increase), 2nd half of the year she expects 30 year fixed rates to be 5 1/2% or higher
- 20% down on homes loans will be the norm, with 30 year fixed rate
- Long term forecasts are that banks will be making more loans, rates will be higher, more real estate investors, regulators will be active in the market
- Need to reduce federal long term treasuries from 3 trillion to 1 trillion
- Debt is currently 70% of GDP, we want it to be 60% of GDP
- If there is no political solution to the debt issue, the debt/gdp ratio could be 100% in 10 years
- Future rates are projected to be 6-7% range
- Future holds more banks lending money

Regarding the real estate market
- To get to a Normal Market we need to reduce distressed inventory. we are moving in the right direction, but still have 8k in No. County
- There is about a 25% difference in price/sf between traditional sale and distressed sale properties
- Need to sell distressed homes to ultimate homeowner versus investor
- Active listings are down from 2008
- Unsold inventory index is 5-7 months (it will take 5-7 months to sell all active listings).- San Diego and DC are the only to cities that had price increases last year.

Regarding the Economy- 10% unemployment rate locally
- Need to get under 10% unemployment rate to get to normalcy (4-5 years)
- Business are more profitable
- Banks are well capitalized
- There is uncertainty about tax rates
- The 800lb gorilla is the federal deficit
- 2-3 years before return to normalcy

Gary London, President, The London Group Realty Advisors
Speaks on Real Estate Market

- Small business CEO's are as confident now as they were in 2006
- Capital goods orders are up 21% from 1 year ago
- Home affordability is the best in 50 years based on income and interest rates
- Personal savings are up, debt is moving down
- Multi-family sector is going crazy!
- There is going to be more density building
- Curveballs we may be thrown by DC
      - GSE reform
      - credit availability
      - loan delinquencies
      - mortgage interest deductions
- There 48,000 homes in shadow inventory.
- There are 3 times the number of distressed homes than are listed on the market
- Estimated 14 months of shadow supply. This is the lowest number of shadow inventory supply than other markets. We'd like to see 6-7 months supply.
- 5 months of listed supply of regular homes
- New home market is 9% of the total real estate market

Regarding a 2011 survey of people in the market for a home, here are the top findings
- Personalization is the new buzz word
- Retirees will move
- Consumers need a reason to buy
- Home design beats price
- Bigger is better
- Generation Y (25-34) isn't much different
- Community amenities are very important
- Green technologiy is in demand
- Buyers use realtor and real estate web sites
- Conclusions vary by geography
- 88% think now is a good time to buy but can't find what they are looking for
- Young adult population is booming
- Gen Y population is decreasing in San Diego
- Rentals are likely to be a much larger component of demand going forward

Get ready for a brisk Spring Buying Season!

2011-02-27T22:08:00.000-08:00

I was amazed today when I stopped by an open house in Encinitas and saw a stream of cars parking on the side of the street to visit this 2,400 sf 1970's home with some ocean view, located a few blocks from downtown Encinitas. I can't remember when I last experienced such an active open house. While it was listed just a few days prior, there were already 3 offers submitted and by the end of this evening, I found out there were six offers! This was no bank owned or short sale listing. This is a straight equity sale, staged to show off it's best features.

I am getting ready to list my home and would have considered putting a contingent offer on this home, but there's no way to compete with non-contingent offers of which all six offers were. So, this goes to show there's a lot of buyers out there now, especially when you have a decent home in a great location. Our first task is to get our home sold so we can provide a strong offer! Hopefully, there will be something comparable!!!

Are you looking for a home this year? I would be happy to help. Just give me a call. 760-458-0797 Crista :)

January 2011 Key Real Estate Market Results for North County

2011-02-16T11:09:00.000-08:00

The January 2011 results are in for Key North County Real Estate Statistics. Looks like the Detached homes have shown the most steady median price increases over this last year, 6.19%. It also looks like North County is out-performing OUTSIDE of North County areas.

I am still looking forward to a very busy and robust 2011. This is a great time to buy a home. Prices and interest rates are still low which makes homes the most affordable since 40 years ago. Let me know if you would like specific price statistics for your ZIP code. Enjoy!

strong>HomeDex™ Key Points- January 2011 Data (compiled by Robert Brown, Ph.D., California State University, San Marcos)

1. The median price for all North County home sales – attached and detached – decreased from $380,043 in December 2010 to $360,000 in January 2011.

a. Detached homes in North County rose 1.74 percent from $438,357 in December 2010 to $446,000 in January 2011. Year-over median single-family detached homes in North San Diego County increased 6.19 percent, from $420,000 in January 2010, making 18 months of year-over increases in median price (with the exception of August 2010).

i. Detached home prices OUTSIDE North County decreased 4.9 percent from $347,000 in December 2010 to $330,000 in January 2011. ii. The countywide median SFD price of homes sold decreased from $375,000 in December 2010 to $369,250 in January 2011, but rose 1.03 percent year-over from $365,500 in January 2010.

b. Attached home prices in North County declined 2.36 percent to $229,950 in January 2011 from 235,500 in December 2010, the second month of price decreases.

i. Non-North County attached home prices decreased 10.48 percent to $188,000 in January 2011 from $210,000 in December 2010.

c. While the number of single-family detached homes sold fell significantly to 32.87 percent from December 2010 to January 2011, the number of single-family detached listings (active and contingent) increased 8.08 percent from 3,962 ending December 2010 to 4,282 ending January 2011, following four months of declines.

i. Listings were up 20.69 percent year-over from January 2011

ii. Median days-on-market for single-family detached homes in North County remained at 68 days in January 2011

Tips for Greener Driving!

2011-02-16T10:14:00.000-08:00

Greetings! Eventually, we will all be driving hybrids to save on gas and drive greener, but in the meantime here are some things you can do to drive greener now. Check out the tips and see if they can help you drive greener. Crista :)

This Month's Tips from The REsource Newsletter, published by teh GREEN Resource Council

Drive Greener

• Shade: Park in the shade when possible, and cool down your hot car by driving with the windows down before turning on the air-conditioner. Over time these practices can result in a much smaller workload for your AC—and significant energy savings.

• Tune-ups: Change your oil, check the fluids, replace spark plugs, and perform other regular maintenance tasks to save fuel. Rotate your tires and keep them properly inflated. For every three pounds they fall below their recommended pressure your fuel economy will fall by one percent. When it’s time to replace tires consider using low-rolling-resistance (LRR) alternatives, which can boost your mpg.

• Smooth ride: Slow down. Driving 75 mph instead of 65 mph burns 10 percent more fuel. A smooth ride also helps, so use cruise control when it’s practical. Stop-and-go driving and jackrabbit acceleration really take a toll—just one second of “pedal to the metal” acceleration emits almost as much carbon monoxide as half an hour of normal driving. And when you’re not driving your car, turn it off—don’t let it idle.

Source: The Green Guide

Who do you Choose as a Buyer's Agent?

2011-02-10T21:41:00.000-08:00

We are heading into the busiest real estate season of the year. If you are thinking of purchasing a home, who do you choose as an agent to help you? I realize there are many qualified agents out there for you to choose from. I can only offer you what I would expect, myself, if I were looking looking for an agent. I would want someone who:

- is available to me and returns my calls within a reasonable amount of time

- knows what is a good value or not

- has enough experience to have a foundation for proper buyer representation

- was on top of the listings on the market that met my criteria

- I would feel comfortable working with and spending time in a car touring homes

- would be patient with me and show me that they are looking out for my best interests, instead of just wanting to earn a commission

- could point out red flags that could affect resale value

- would be honest about any conditions of a property that needed special attention or consideration

- would advise me on a competitive offer price without feeling I over-paid for the property.

- would completely inform me of the seller's situation and any factors that may affect my offer price

- would communicate clearly the details of the contract, what I was agreeing to, and what terms were typical for the industry

- would provide reasonable solutions to any problems that arise throughout the escrow process

- would be able to negotiate and resolve any issues between the seller and me

- would advise me on what repairs or closing costs were reasonable to ask the seller to pay

- would be available after close of escrow so that I could maintain a resource for answering real estate questions

If you share my beliefs, then give me a call and let's get started! 760-458-0797 Additional facts that you need to know:

- 10 years experience

- Accredited Buyer Representative

- Master degree in Business Administration

- Computer Science undergraduate degree

- Amoung Top Producers in office

- GREEN designation

Forbes outlook: SD in top 5 home markets in '11

2011-02-02T15:53:00.000-08:00

Take a look at what some are saying about the San Diego market in 2011! This is definitey worth a read and please click through for the full stories. Maybe now is the time to act if you have been on the fense. Remember we are heading into the busiest time of the year, Spring!! Act now. Hope you enjoy. Crista :)

Forbes outlook: SD in top 5 home markets in '11

By Lily Leung

Tuesday, February 1, 2011 at 9:17 a.m.

John R. McCutchen / Union-Tribune staff

A home in Solana Beach, an area that saw an increase in median home price from 2009 to 2010, according to DataQuick Information Systems. The median price for all types of sales in that ZIP code rose from $1,106,250 to $1,175,000, or 6.2 percent, based on 22 sales in 2010. Twenty-seven homes were sold in 2009.

Read the full article: http://www.signonsandiego.com/news/2011/feb/01/forbes-san-diego-home-prices-will-rise-2011/
Which California city from Forbes' rankings will see the most price gains in '11?

San Jose 19% 40 votes

Santa Ana 4% 9 votes

San Diego 76% 161 votes

210 total votes.

Read the results: http://www.signonsandiego.com/polls/2011/feb/which-cal-city-forbes-rankings-will-see-most-pri/

Forbes rankings

Cities where home values will likely go up:

San Jose

Santa Ana

Bethesda, Md.

Pittsburgh

San Diego

San Diego ranked No. 5 out of 315 housing markets that Forbes.com says are poised for price increases in 2011 and in the coming years. (See The Best And Worst Cities For Home Values In 2011.) Read the full story: http://www.forbes.com/2011/01/21/cities-home-values-prices-real-estate-personal-finance.html

The finance publication predicts that the median home price in San Diego will rise 2 percent in the next 12 months and through the next three years, based on findings from Local Market Monitor, a research company that analyzed data from real estate markets throughout the U.S. The company also factored in the areas' unemployment and job growth rates.

(Television station NBC San Diego reported the findings on Monday.) http://www.forbes.com/2011/01/21/worst-cities-home-values-prices-personal-finance-worst_slide.html

Two other California cities - San Jose and Santa Ana - topped the list of U.S. cities where home values are likely to rise steadily over the next three years. Median home prices in both San Jose and Santa Ana are expected to rise 3 percent in the next 12 months and an average of 2 percent annually over the next three years.

While Forbes predicts California to head toward somewhat of a housing recovery, it says Florida shouldn't hold its breath. Cities in the Sunshine State dominated the list of cities in the country that are expected to fare the worst in home values: Daytona Beach, Lakeland and Orlando. (Here's Forbes slideshow of the worst cities.) http://www.forbes.com/2011/01/21/worst-cities-home-values-prices-personal-finance-worst_slide.html

Forbes quotes Ingo Winzer, president of the Local Market Monitor, as saying, "The big difference between Florida and Southern California ... is people are moving into Southern California, but they're not moving to Florida."

What Foreclosure Buyers Need to Know

2011-01-28T10:54:00.000-08:00

Trulia just published an article on buying Foreclosure properties and I think it’s a very good read! The information is consistent with my experiences and maybe very helpful to you if you are considering purchasing distressed property. It is very true that Banks will use an addendum that pretty much supersedes most of the terms in the standard CAR purchase agreement, so make sure your agent can tell you how their addendum affects the standard clauses so your interest is protected. Please let me know if you have any questions. Enjoy, Crista :)

4 Tricks and Traps Foreclosure Buyers Need to Know
Interest in buying a foreclosed home is on the rise, but so are concerns about the risk involved in the process. In a December survey, Trulia found that 49 percent of Americans were at least somewhat likely to consider buying a foreclosure, up from 45 percent in May 2010. But the number of US adults who believed there are disadvantages to buying foreclosures had also increased, from 78 percent to 81 percent over the same time frame. Among those folks who had qualms about purchasing a foreclosure, the top concerns were:

that buying a foreclosure might involve hidden costs,
that the buying process itself is risky, and
that the home might continue to lose value, after escrow closes.

While there certainly are risks that run with buying a foreclosed home, the most risky way to do it is also the least common method: at the foreclosure auction itself. Auction buyers often don't have the opportunity to fully vet the foreclosure to ensure that they are receiving clear title and/or to make sure they're not getting a lemon. With that said, most foreclosures are resold not at the foreclosure auction, but as an REO (short for Real Estate Owned - by the bank), listed by a real estate broker on the Multiple Listing Service and on Trulia!

When you buy an REO in this way, you have lots of opportunities to use some tricks of the trade, so to speak, to avoid some of the traps you may fear. Here are my Top 4 Tricks and Traps for Foreclosure Buyers:

1. As-is means as-is, period. (Most of the time.) Banks have very little interest, inclination or even the logistically necessary resources to execute repairs on your home. Many of these homes are managed by an asset management company in another state, and may not even have a local person besides the agent who can handle large repairs. Generally speaking, bank-owned homes are sold on a very strict "as-is, where-is" basis, which just means that you should expect to take possession of it, if you buy it, in exactly the position and location it is, no matter how defective. Do not walk into a viewing of a foreclosed home, notice how the plumbing is all ripped out of the wall, and make an offer for it, assuming you'll be able to get the bank to "fix" the issue later. Usually, if the bank is willing to do any repairs to a foreclosed home, they do so, on the advice of the listing agent, prior to the home being listed.

Out of hundreds of foreclosure transactions I have personally been involved in, I have seen exactly four where the bank did agree to do some level of repairs at a buyer's request. Every one of those times, the repair was to fix a health-and-safety endangering property defect, like a gas-leak or an electrical fritz. And every one of those times, the property defect was highly non-obvious - not something even a diligent buyer could have detected visually prior to making an offer. Maybe another few times I've seen a bank agree to a small price reduction due to surprising condition problems. And dozens of times, I've seen transactions fall apart or buyers take on the property’s repair costs, when they request repair credits, price reductions or actual repairs from the ban seller.

If a foreclosure you're considering has obvious property damage, have your contractor stop by with you or gather whatever information you need to get as comfortable as possible with your offer price, assuming that the bank will not be chipping anything in for repairs, before you make the offer.

2. The bank speaks no evil. When it comes to real estate disclosures, the fact is, the bank speaks not much of anything! Many states exempt banks and other types of corporate homeowners from making substantive disclosures about the condition of the property. Even in jurisdictions where the bank is not legally exempt, most banks will simply write across the required disclosures something to the effect that the bank has no knowledge of the property's condition. (Before you protest with a "that's not fair!!" keep in mind that the bank never lived in the property, so most often truly does have no idea of any important facts or details about its condition or location, the things an average home seller would be required to disclose.)

Even in a normal transaction, it behooves a buyer to be thorough in having the property inspected and meticulous about reviewing the resulting inspection reports. But buying a foreclosure ups even that ante, as you have no seller disclosures to highlight particular problems you should have looked at, and none of the usual legal recourse you would have if a “regular” seller made incomplete disclosures. Get a property inspection. A pest inspection. A roof inspection. A sewer line inspection. A pool inspection, if you have a pool and care about its condition.

Yes - all these inspections cost money, but the drama and thousands each of them can save you is well worth it. And read your state’s buyer inspection advisory or similar document (ask your agent), just to make sure you’re aware of all the inspections that are available to you, and work with your agent to determine which ones make sense, and which are not appropriate.

Some insider tips:

Vacant foreclosures often have their utilities disconnected. Work with your agent to make sure the utilities get turned on - even for a single day - so that your property inspector can run the water taps, test the stove and dishwasher, see if the water heater and electrical outlets work, and so forth.
If appliances are there, the bank will probably leave them there, even though they may not have technical “legal” ownership of them, so they may not be included in the contract, like in a "normal" home sale.
However, the bank will not give you any sort of warranty on appliances, so try to obtain any warranty coverage you want or need elsewhere - from a home warranty company or, potentially, the original manufacturer/retailer.

3. The contract terms, they are a changin'. One thing squarely in the wheelhouses of local real estate pros are local market standard practices. From negotiating practices to which party pays which closing costs, every market is different, and experienced local agents are experts on this information. If you’re buying a foreclosure, though, the bank will often require you to use it’s own purchase contract, rather than the more commonly used state forms. Many times, this is done to advise the buyer of the bank’s refusal to make substantive disclosures (see above) and to change some of the normal practices for your area to the bank’s standard practices.

For instance, if you are buying a home in a contingency state, where you would usually have to sign a document proactively releasing contingencies, the bank’s contract will probably change that, so that your transaction operates on an objection period. In "objection" based transactions, you have a certain period of time in which you must either speak up about your concerns with the property and/or cancel the deal, or you will automatically be presumed to be moving forward with the deal and your deposit money will be forfeited if you change your mind after that date.

If you’ve been making offers on non-foreclosures on the standard contract form, or you’ve bought homes before and think you know the drill, please - I implore you - READ every word of the contract you sign when you buy a home from the bank, and ask your broker, agent or attorney to explain anything that doesn’t make sense.

4. Expect the unexpected. When you buy a foreclosure, you might end up working with the bank’s escrow company, instead of a company you or your agent selects. And the bank's escrow provider might be slow or disorganized. C’est la vie. The bank might rush you for your deposit money, but take their own sweet time coming up with the necessary signatures on their end to close the deal. Par for the course. You might expect that the bank would be desperate for buyers, and instead find out that there are 20 offers on the same REO. Or, you might be the only offer and still get your aggressively low (but still reasonable) offer rejected, only to have the bank reduce the list price of the home to the same price of your offer! (They often want to see if exposing it to other buyers at the new, lower list price might generate more interest and higher offers.)

When you’re buying a foreclosure, expect glitches, expect your calendar to be derailed, expect the bank to be inflexible and possibly even unreasonable. It’s not overkill to ask your broker or agent to brief you on the common complications they see in REO transactions. Having realistic expectations may keep you from pulling your hair out. And if the transaction turns out to run smooth as silk? You’ll be pleasantly surprised.

To view the full article and source click on the following link:
http://www.trulia.com/blog/taranelson/2011/01/4_tricks_and_traps_foreclosure_buyers_need_to_know?ecampaign=anews&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F01%2F4_tricks_and_traps_foreclosure_buyers_need_to_know

Nicely Done 2010 Foreclosure Report by Foreclosure Radar!

2011-01-18T22:14:00.000-08:00

I received this annual report from Foreclosure Radar, the best source I know that tracks foreclosure activity throughout many states. There's some good news in 2010! Please take a moment to read. It's also interesting to see how this market down turn unfolded from it's initial indicators through today. Good read! Crista :)

Released 1/18/2010 by ForeclosureRadar.com

The first half of 2010 saw relatively good news for most participants in the foreclosure market. Foreclosure cancellations rose as homeowners saw more short sales and loan modifications approved. Investors quickly flipped their foreclosure purchases for solid profits as buyers hurried to take advantage of tax credits. As the tax credits expired, however, the market began to slow. Foreclosure cancellations also began to drop as the government push for loan modifications waned and short sales slowed with the rest of the housing market. Finally, in the beginning of the third quarter, the robo-signing scandal led to dramatically lower foreclosure sales, including a complete halt by Bank of America for nearly two months.

Foreclosure Starts 2007-2010

For the first time since the foreclosure crisis began, Arizona, California, and Nevada saw a drop in the filing of new foreclosure actions. Oregon and Washington, however, continued to climb, but with much lower percentage increases than the prior 2 years.

State                         2007             2008            2009            2010

Arizona # Starts      45,225         109,086       145,423        119,790

           % Change       n/a            +141%          +33%            -18%

California # Starts 280,095          442,612       504,425       338,999

           % Change        n/a              +58%           +14%           -33%

Nevada # Starts      38,690           75,814         106,42         86,010

          % Change          n/a              +96%          +40%           -19%

Oregon # Starts        8,176            14,371         22,302         24,574

          % Change          n/a              +76%           +55%           +10%

Washington # Starts 14,844           27,966          36,947         42,161

         % Change           n/a              +88%           +32%           +14%

Foreclosure Starts represent: Notice of Default filings in CA, NV and OR; Notice of Trustee Sale filings in AZ and WA.

Foreclosure Sales 2007-2010

Foreclosure sales dropped in 2010 for the first time in Arizona and Nevada. California dropped for the second year in a row, while Oregon and Washington both saw increased foreclosure sales.

State                        2007                    2008                2009              2010

Arizona # Sales    18,775                 66,685          94,979 7           0,588

          % Change          n/a                 +255%              +42%              -26%

California # Sales 96,901               251,544         202,215         189,810

           % Change        n/a                  +160%              -20%                 -6%

Nevada # Sales    11,242                  37,637            45,420           42,828

         % Change          n/a                   +235%                21%                 -6%

Oregon # Sales     1,809                    6,129             12,056             16,781

        % Change           n/a                  +239%                 +97%              +39%

Washington # Sales 4,724               11,810               22,699            25,920

        % Change             n/a                +150%                +92%               +14%

Foreclosure Sales is based on auction sales either back to the bank or to a 3rd party. Numbers based on auction results except for 2007 to 2009 for states other than CA where we counted the filing of trustees deeds.

Past 5 Year Foreclosure History at a Glance

Foreclosure Crisis Milestones February 2005 Fed Chairman Alan Greenspan tells the US House Financial Services Committes that: "I don't expect that we will run into anything resembling a collapsing [housing] bubble."

February 2006 Fed Chairman Ben Bernanke says, "Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise, but not at the pace that they had been rising."

May 2007 Fed Chairman Ben Bernanke says, "We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system."

July 2008 The Housing Economic Recovery Act is signed into law. Clearly too little, too late.

September 2008 Fannie Mae and Freddie Mac are put into conservatorship by the US Treasury as concerns about their ability to raise capital and debt threaten to disrupt the US housing and financial markets.

September 2008 Treasury Secretary Henry Paulson announces the Troubled Assets Relief Program (TARP). Though in the end troubled assets were largely purchased by the Fed rather than through TARP, it signaled the beginning of significant government intervention into the foreclosure market.

September 2008 CA Senate Bill 1137 goes into affect. While intended to slow foreclosures and increase loan modifications, it accomplished little more than foreclosure delays.

February 2009 The American Recovery and Reinvestment Act offers tax credit for first-time homebuyers, which is later extended to April 2010 and expanded to include repeat buyers. Like cash-for-clunkers it provides short-term stimulus to the housing market.

March 2009 Obama Administration announces "Making Home Affordable" loan modification program (HAMP), creating the most exotic mortgage ever offered, and lawmakers request a voluntary foreclosure moratorium pending implementation.

April 2009 Financial Accounting Standards Board approves mark-to-model for mortgage-backed securities creating incentives for lenders to sit on bad loans rather than foreclose or approve short sales or loan modifications.

May 2009 The "Helping Families Save Their Homes Act of 2009" provides renters impacted by foreclosure with additional protections.

December 2009 Nationwide campaign to push the The Home Affordable Modification Program (HAMP) continues an artificial delay of foreclosures, but ultimately helps only a few.

April 2010 Home Affordable Foreclosure Alternatives (HAFA) promotes short sales and deeds-in-lieu of foreclosure, but has little impact beyond delaying the inevitable.

October 2010 Robo-signing scandal over documentation issues in judicial foreclosure filings leads to nationwide delays in foreclosure sales.

Most Expensive Homes in 2010

2011-01-05T11:02:00.000-08:00

Greetings! It's good to dream because deaming allows you to imagine having things you desire. You have to dream in order to be inspired to take action to make a dream come true. Maybe owning a $15 million dollar home isn't one of your dreams, but it sure is fun to imagine living in one. Take a look at what Zillow.com has determined to be the most expensive homes sold in 2010. Maybe it will remind you of your dreams and inspire you to start taking action to make those dreams come true. For the complete article and more photos of each homes visit http://www.zillow.com/blog/some-of-2010s-top-real-estate-sales-in-u-s/2010/12/20/?scid=emm-010411_JanBuzzSold-all Enjoy!

********************
Some of 2010’s Top Real Estate Sales in U.S.

By: Diane Tuman, Zillow Content Manager
December 20, 2010

The sexiest real estate list each year is the Most Expensive Homes for Sale in the U.S., but the flip side of that list is what did these homes sell for, if they indeed did sell? While multi-million dollar price tags create oohs and aahs, it’s nothing more than a price tag until it’s sold. For example, the Spelling Manor is still on the market at $150 million, followed by Tranquility and Versailles – each at $100 million. Will they eventually get their price? Who knows. But, as we conclude 2010, here are some homes that sold for top dollar in 2010 in the U.S., according to Zillow data:

1. Le Belvedere – Bel Air, CA (above)

Original list price: $85 million

Sold price: $50 million

Lots has been written about Le Belvedere, which was owned by real estate developer Mohamed Hadid who then reportedly sold it this June to Sarp Turanligil, a Turkish businessman, for $50 million. But, here’s where the confusion begins: According to the Wall Street Journal, an associate of Turanligil’s claims he never owned the home, but was managing business for a company that bought the home. Since then, the home changed titles twice to two different limited-liability companies. Who owns Le Belvedere? No one seems to know, but one thing is certain: this appears to be the house that sold for the most money in 2010.

2. Carbon Beach Gem – Malibu, CA (above)

Original list price: $57 million

Sold price: $36,969,000

This 12,785-sq ft Malibu beauty was sold in October for a final price of $36,969,000. Located on Billionaires Beach, where you could run into celebrities such as Jennifer Aniston and David Geffen, this oceanfront estate sits on three-quarters of an acre and includes 180 feet of frontage on Malibu’s coveted Carbon Beach. It includes 8 bedrooms, 12 bathrooms, 9 wood-burning fireplaces, an oceanfront swimming pool and spa. Take in the Pacific Ocean from the many terraces or the rooftop widow’s walk.

3. Malibu Colony Beach House - Malibu, CA (above)

Original list price: $23,950,000

Sold price: $21,475,000

Doing the math, this 5,000 sq ft home sold for $4,295 a foot, making the final sold price $21,475,000. With about one-third of beach frontage as #2 above and only 5,000 sq ft, this is all about location in coveted Malibu Colony where the likes of Tom Hanks, Bill Murray and other celebs might roam. Situated on one-half acre, this estate includes a main residence with 4 bedrooms, including a grand master suite, 2 additional oceanfront bedrooms, and a grand living/great room with open kitchen facing the water. Two separate guest suites and a gym are situated away from main residence, plus there’s a pool and spa in the back.

4. Pebble Beach Jewel – Pebble Beach, CA (above)

Original list price: $25 million

Sold price: $18,750,000

Cradled in an elbow of beauty near Pebble Beach’s famous 17-mile drive is this newly built Cypress Drive estate of 9,750 sq ft, containing 6 bedrooms and 4.5 bathrooms. Out one set of windows is the surf crashing along Pebble Beach’s craggy coast where harbor seals come to visit and out the back is the manicured greens of the fabled Pebble Beach Golf Resort. Gracious, indoor-outdoor California living includes a home theater, two family rooms, wine cellar, outdoor fireplaces, elevator and separate guest house. Fore!

5. Bel Air Mediterranean – Bel Air, CA (above)

Original list price: $24,500,000

Sold price: $16,250,000

Is this a multi-million dollar flipper? This enormous, 13,056-sq ft Mediterranean estate was sold in May for $16,250,000 and is already back on the market, first in September for $19,500,000 and then recently reduced in November to $18,750,000. Mauricio Umansky, who is married to Kyle Richards of the “Real Housewives of Beverly Hills” reality series, is the listing agent. The property has 7 bedrooms and 11 bathrooms and is sited overlooking the Bel Air Country Club. On the manicured grounds is a grand cabana with inground pool and sport court.

6. Dramatic Delray — Delray Beach, FL (above)

Original list price: $24,900,000

Sold price: $12,650,000

This home was originally listed for $24,900,000 way back in 2008 and then experienced a series of price drops all the way to April 2010 where it finally sold for $12,650,000. And then guess what? It just came back on the market in November for $19,950,000. Is this possibly another multi-million-dollar flipper? Located along Florida’s Gold Coast, this newly renovated, 14,679 sq ft Mediterranean estate has 150 feet of frontage with a commanding 16-foot elevation overlooking the Atlantic. Designed for large-scale formal entertaining, it has two private pool areas: one in an Old World style and the other near the dunes aside breezy lounge patios.

7. Upper East Side – New York, NY (above)

Original list price: $17 million

Sold price: $13,150,000

Just around the corner from prestigious Park Avenue, this grand, 20-foot-wide mansion was sold in September after originally being listed for $17 million in 2009. And look: it’s now for rent for $48,000/month! This handsome, 8,000 sq ft Upper East Side mansion has 6 bedrooms and 6 bathrooms over five floors, a main and service entrance, and two kitchens connected with back stairs.

8. Santa Barbara Villa – Santa Barbara, CA (above)

Original list price: $16 million

Sold price: $13 million

It’s Santa Barbara, but this villa feels very much like Tuscany with its Old World design of warm sun-splashed stucco and plaster walls, arched columns, rich granite floors, wooden box beam ceilings, and elaborate tiered stone walkways to expansive terraces and the pool. The sweet surprise here is the 8,592-sq ft home was built in 2000 — not centuries ago as one would imagine. Features include ocean and island views, state-of-the-art media, electronics and mechanical systems. Main residence includes 5 bedrooms and 6.5 baths. Detached guest house includes 1 bedroom, 1 bath with large loggia.

9. Gulf Coast Grace – Naples, FL (above)

Original list price: $15.9 million

Sold price: $13 million

Originally listed for $15.9 million in 2009, this Gulf Coast gem was snatched up for $13 million early in 2010. The Mediterranean-style estate is located on three-quarters of an acre on Naples Bay. A generous 9,394 sq ft of living space contains custom touches of limestone flooring inside and Grey Gold Jerusalem limestone outside on the expansive covered lanai surfaces. Features include a two-level study, 1,000-bottle wine room, multi-tiered cascading pool with glass mosaic tile, 80-foot dock, geothermal heating and fiber-optic lighting.

10. Livin’ The High Life – Highland Beach, FL

Original list price: $18,900,000

Sold price: $12,650,000

With Florida’s Intracoastal Waterway out the back door and the Atlantic Ocean out the front door, there is water, water, everywhere. This 17,804-sq ft Italianate-style villa was first listed for $18.9 million back in 2008, then it was reduced by nearly $4 million in March 2010, falling to $14,950,000. In April, it sold for $12.65 million. Now, it’s back on the market for $14.95 million. Go figure. Walk across the manicured tropical grounds, then the dunes to access your 100 feet of beachfront on the Atlantic. The main residence contains 5 bedrooms, 8 baths, library with fireplace, elevator, and garages to accommodate 5 cars. The two-story carriage/guest house comprises 4,100 sq ft and includes a living room, kitchen, two sitting rooms, 3 bedrooms and 3 baths.

2011 Economic Forecast

2011-01-03T14:37:00.000-08:00

Happy New Year! 2011 is here.

Below is an article from the California Association of Realtors on this years economic forecast. Their source for this article is the Chapman University, The A. Gary Anderson Center for Economic Research. Hope you find this as a helpful insite for the year 2011.

Thanks!

Crista

Forecast shows employment, housing increases in 2011

The A. Gary Anderson Center for Economic Research at Chapman University released the results of its 33rd annual economic forecast for the U.S. and California this week.

According to the forecast, the economic recovery will continue at a relatively slow pace in 2011, but will be enough to generate 1.7 million net new jobs nationwide, which will cause the national unemployment rate to drop about one percent, to 8.6 percent, by year-end 2011.

Although housing affordability is at historically high levels, the forecast finds there will be no sharp rebound in housing next year. The forecast calls for housing starts to increase 7.2 percent, from 600,000 to 640,000 units. Home buyers’ concerns about unemployment and the ongoing problems in the mortgage industry, coupled with a large excess supply of vacant units on the market, will constrain production of new homes.

The forecast also calls for continuing improvement in resale housing prices in 2011, with housing prices nationwide increasing 3.3 percent. Like new housing starts, home prices will be constrained by consumer anxiety as well as the significant overhang of vacant housing units on the market.

In California, employment is forecasted to increase by 1.2 percent—167,000 net new payroll jobs, with the job recovery positively affecting housing demand. And the expected rebound in income, low mortgage rates, and lower home prices are helping to keep housing affordability at historical highs, leading to increased housing demand, particularly for first-time home buyers.

A pickup in new residential construction, high inventory of resale homes, and existing shadow inventory will mostly offset the positive factors influencing demand.

For the complete article visit this site: http://www.chapman.edu/images/userImages/cwilliam/Page_4388/Dec2010_Forecast%20Press%20Release.pdf

Helping You Go Green!

2010-12-14T19:37:00.000-08:00

Here you will find information and resources to help you make your home more energy efficient and green. I welcome all questions!

FREE Home Energy Assessment!
GC Green is a local company who specializes in providing energy assessments of your home and will make recommendations on upgrades that will improve energy efficiency and cost savings! They also can provide you with incentives and programs that can help you pay for these upgrades! Contact Rick Halperin at 619-204-2809 or email at rick@gcgreen.com. You can visit their web site at http://www.gcgreen.com/.

Renovation Financing!
There are lenders who specialize in providing financing to help with improvements that will improve energy efficiency. Whether you are purchasing a new home or refinancing your existing home, you might consider taking advantage of some financing that help you pay for improvement costs! Contact Dennis Fontes from Go Green Lending at 562-505-3668 or email dennis@gogreenlending.com Ask about these loan programs:
- FHA 203k Renovation Loan: provides up to 35k for improvements
- Energy Efficient Mortgage: This mortgage allows you to stretch your debt to income ratio to cover energy efficient improvements in your loan, while ensuring the improvements pay for the increased payment amount for that loan. Check out the Energy Star web site for more information Energy Star - EEM

How much cheaper are CFL's than Incandescents?
Check out the comparison chart between CFL's and Incandescent light bulbs. This is one of the easiest and cheapest ways to save money on your energy bill. The CFL's have improved a lot. There are different types of lights available such as cool versus warm lighting. They are also doing a better job at making the bulb more appealing such as the ones used for recessed cans. Remember the higher the number, the warmer the light will be!

Table 2. Cost Comparisons between CFLs and Incandescents

25-Watt Compact Fluorescent

100-Watt Incandescent

Cost of Lamps

$3.40

$.60

Lamp Life

1667 days (4.5years)

167 days

Annual Energy Cost

$6.00

$25

Lamps Replaced in 4.5 years

Total cost

$29

$134

Savings Over Lamp Life

$105

Source: Life Cycle Cost Estimate for ENERGY STAR Qualified Compact Fluorescent Lamp(s)

Low-Cost Ways to Address Green Potential in Your Home
According to the National Association of Realtors (NAR) Green Designation Core Course, the following are low-cost ways you can address your home's Green Potential!

- Use CFL or LED light bulbs
- Install low-flow showerheads and faucet aerators
- Start a compost pile
- Plant trees
- Insulate hot water heater
- Weatherstrip and caulk doors and windows
- Collect rainwater to water plants
- Paint with low or no VC paint
- Replace heater filters
- Install a programmable thermostat
- Plant a rain garden
- Plant native plants
- Place appliances or office equipment on powerstrips to reduce "phantom" load'
- Install motion sensors in offices and other common areas to turn off lights when not in use
- Install efficient restroom fixtures
- Take advantage of day light
- Provide recycling bins

URGENT - Interest Rate Advisory!

2010-12-10T07:08:00.000-08:00

Hi,

I received this notice from an associate mortgage consultant, Brian Beres. I felt it was important information to pass along to you. Interest rates are at an all time low. If you are thinking of buying a home now may be the perfect time! Please read the following and contact the mortgage consultant directly if you have questions.

Thanks!

Crista :)

URGENT - Interest Rate Advisory!

Hi, it's me Brian the Home Loan Guy. I wanted to send you this "Interest Rate Advisory" to let you know that over the last 2 weeks we have seen interest rates increase more than a half percent, ".50%" on all loan programs due to deteriorating market conditions. Interest rates are still in the 4% range on some loan programs, however as the minutes go by rates are increasing at rapid pace!

Many market speculators, and our investors have told us that as the end of the Year nears, and with the New Year to come, to expect higher and higher rates. This is not to say that rates will not go back down from time to time as market conditions improve, it's just a warning to let everyone know that the rates we have seen over the last several months are most likely going to be a thing of the past for a very, very long time! With this being said, it's my professional opinion and urgent suggestion that you recommend to anyone you know who is looking to purchase or refinance property, to do it ASAP in order take advantage of what the market "currently" has to offer. Interest rates reached a historic low in the beginning weeks of November 2010, since then we have seen dramatic rate increases ever since. With information pouring in from speculators and our investors, now is the time to act and lock in a low rate before it's too late!

If you have any questions, comments or concerns please feel free to contact me at anytime. I will however be out of the office all day today, Wednesday the 8th attending a mandatory meeting regarding current market conditions and interest rate projections for the New Year. Please feel free to forward my information along to anyone you know who's in need of a Home Loan to either purchase or refinance property, and wanting to take advantage of what the market "currently" has to offer. I am here to help in any way that I can.

Thank you for taking the time out to read this!

Brian Beres
Mortgage Consultant
(951) 639-3733 CA. direct
(702) 207-2283 NV. direct
(702) 528-1925 cell
(702) 940-9862 fax
bberes@beresconsulting.com

"A referral is guiding someone you care about, to someone you trust"

$250.00 towards a Appraisal Report

This coupon can only be used towards the re-imbursement cost of a Home Appraisal Report. This coupon is only good for a 1 time use per customer, per transaction. This coupon can only be used for the customer who we are doing the Home Loan Financing for. This coupon can only be used once the Home Loan Financing transaction for the customer has been completed and the transaction is closed. This coupon can be used on any Purchase or Refinance transaction. This coupon is only valid for an amount up to $250.00. This coupon has NO CASH VALUE and cannot be redeemed for CASH. This coupon cannot be used in connection with any other coupons. This coupon must be presented before the Close of Escrow in order to be valid. For further details please contact me directly, thank you.
Offer expires: December 31st, 2010

$250.00 towards a Home Warranty

This coupon can only be used towards the purchasing of a Home Warranty Protection Policy. This coupon is only good for a 1 time use per customer, per transaction. This coupon can only be used for the customer who we are doing the Home Loan Financing for. This coupon can only be used once the Home Loan Financing transaction for the customer has been completed and the transaction is closed. This coupon can be used on any Purchase or Refinance transaction. This coupon is only valid for an amount up to $250.00. This coupon has NO CASH VALUE and cannot be redeemed for CASH. This coupon cannot be used in connection with any other coupons. This coupon must be presented before the Close of Escrow in order to be valid. For further details please contact me directly, thank you.
Offer expires: December 31st, 2010

If you are a First Time Homebuyer you may qualify to receive $25k in down payment assistance in Escondido!

2010-12-02T11:21:00.000-08:00

Hi,

If you are a First Time Homebuyer (by definition, haven't owned a home in the last 3 years) and want to buy a home, but don't have enough for a down payment, then the City of Escondido may have a solution for you. You can receive up to $25,000 of down payment assistance if you qualify as a first time homebuyer and a moderate or low income household. The down payment assistance is a loan that you don't have to make payments on or pay back until you sell your home, transfer it, refinance it, or convert it to a rental.

This may be the opportunity you have been waiting for! You must purchase a home in the City of Escondido. Please give me a call if you want more information on this program or to get a list of approved lenders for this program. You can also visit the City of Escondido web site at http://www.escondido.org/Data/Sites/1/pdfs/Housing/FirstTimeHomebuyerProgramEnglish.pdf

Happy House Hunting!

Crista :)

You can Receive up to $250 rebate when you order an Energy Audit!

2010-11-30T22:12:00.000-08:00

This is a unique opportunity if you plan to purchase a home in the near future! This program will benefit anyone who purchases a home that may be older and less energy efficient. If you conduct an (HERS) energy audit within 60 days from your purchase, you can receive up to $250 in rebate for the audit cost. HERS energy audits can be costly, but worthwhile and receiving this rebate may make it even more worthwhile for you to do. Contact me for more information about this program. Enjoy! Crista J

C.A.R. offers new REALTOR® Energy Audit Program
C.A.R.’s Housing Affordability Fund (HAF) has launched the California REALTOR®’s Energy Audit Program (R.E.A.P.), a new program that provides rebates of up to $250 on Home Energy Rating System (HERS) home energy audits conducted by certified HERS raters. Home energy audits help homeowners identify improvements they can make to their home to reduce their monthly utility bills.

To qualify for the program, homeowners must:

• Purchase a single-family home in California between Oct. 1, 2010 and Dec. 31, 2011
• Use the home as a primary residence
• Conduct a HERS home energy audit of the home prior to close of escrow (as part of the Energy Efficient Mortgage*) or not later than 60 days after escrow
• Use a California REALTOR® in the transaction (referrals do not qualify)

Homeowners can apply for R.E.A.P. by requesting an application from their California REALTOR®.

*Energy Efficient Mortgage provides additional financing for energy upgrades to a home. Contact lender for details

Is now the time to Refinance? Read this excerpt from an LA Times article

2010-11-28T22:57:00.000-08:00

This excerpt was compiled from the California Association Market Matters newsletter and is taking from an LA Times article. It's definitely worth a quick read! And if you more detail see the link at the bottom. Enjoy. Crista :)

Refinancing now could be better than waiting for mortgage rates to drop further

Mortgage rates on 30-year, fixed rate loans are hovering near the lowest level on record since 1951. While some home buyers are putting their home purchases on hold hoping rates will go even lower, many industry experts are advising homeowners with rates in the upper 4 percent range to refinance.

MAKING SENSE OF THE STORY FOR CONSUMERS

Homeowners with rates in the upper four percent range are likely to benefit from refinancing, according to Peter Ogilvie, president of First Residential Mortgage Corp. in Santa Cruz, Calif. He says refinancing to a lower rate often produces monthly savings, as long as the borrower can qualify under today’s industry credit guidelines and loan-to-value underwriting standards.

Some homeowners also may be good candidates for no-cost refinancing, where the title, escrow, and lender closing charges either are added to the mortgage principal balance or paid for over time with a slightly higher rate. The upsides to this option are reduced monthly payments, improved cash flow, and no outset of dollars at settlement.

Borrowers who want to become debt-free faster and can afford it, ought to consider refinancing out of a 30-year term loan into a 15-year term. Fifteen-year mortgages carry lower rates than 30-year loans, but their faster amortization schedules require higher monthly payments.

When considering whether refinancing is the best option, consumers are advised to take into account all of the fees associated with the refinance and decide if the money saved is worth the cost of the refinance.

Read the full story.

http://www.latimes.com/business/realestate/la-fi-harney-20101114,0,6276584.story

What do Banks Really want to Know about Condos Prior to Approving a Loan?

2010-11-23T15:27:00.000-08:00

Buying a condo now-a-days can be challenging. Why? Because lenders may not loan money to borrowers on just any condo complex. They have to be financially solid and free of litigation. I am in escrow on a condo in Oceanside where the complex has some pending litigation. At first we thought there wasn't a chance to get a loan approved for a buyer, but then after snooping around the internet about the case, I found out there was a recent decision on one of the cases! That was good news. So, we went for it.

What is interesting is that what became a deal maker or breaker was the decision from the lender to approve the complex. The lender ordered what is a called Condo Cert from the property management company for the HOA to make a decision on if they want to approve a loan. I had an opportunity to see the completed Condo Cert and thought it was very interesting and wanted to share it with you.

Here are the key questions that the lender asked:

- Is the project complete or are there additional phases to build out?
- is the project a condo conversion?
- Date when the builder transferred control of the HOA to the owners
- Date when the condos were first offered for sale
- Total number of units
- Number of units currently in escrow
- Homeowner occupancy statistics
- Number of sales in the last 90 days
- How many units are dellinquent in paying their HOA dues?
- Are there any pending special assessments?
- Is the HOA involved in any pending litigation?
- Does the project has sufficient reserve dunds to pay for maintenance?
- Are there any special restrictions such as age restrictions?
- Are there amenities or facilities owned by the HOA?
- Who takes over HOA delinquent dues if a home is lost in foreclosure?
- Does the project rent on a daily, weekly, or monthly basis?
- Does the HOA has insurance?

These are the main questions that is asked of the HOA. There were a few more. But, you can see how carefully they evaluated this condo complex prior to approving it for a loan. If you are in the market for a condo, keep these questions in mind before you get your heart set on a home in a complex that may not be approvable.

You can ask you real estate agent if there have been other condos recently sold in that complex that have a loan associated with it. This will be a fast and easy indication of the chances of your loan being approved. If you have additional questions about condo certs or want information about a particular complex please give me a call. Thanks, Crista :)

Streamline FHA Refinance option!

2010-11-05T19:20:00.000-07:00

Dear Crista McClure-Swan,

I received the following email from an associate mortgage consultant and thought I would pass this along. If you already own a home, have an FHA loan, and are interested in lower your interest rate, this program may be perfect for you. Please read the following and contact the mortgage consultant directly if you have questions. Thanks, Crista :)

FHA - VA Streamline ALERT!!!

Hi, it's me Brian the Home Loan Guy.

I wanted to send you this EMAIL ALERT to let you know that the FHA - VA Streamline loan program has hit a record low of 4.50% on the 30 Year Fixed and 4.25% on the 15 Year Fixed programs!

For those of you who do not know what the FHA - VA Streamline loan program is, I will tell you. This is a loan program that allows people who currently have an FHA or VA loan to refinance at market rates regardless of their appraised value! That means if you sold someone a home a year or 2 years ago and they have an FHA or VA loan, they have a chance to refinance their mortgage and reduce their monthly payment even if they are upside down.

Qualifying for this program is super simple too! Minimum qualifications consist of the following:

* Minimum required credit score of 640.
* Reducing their overall monthly payment by 5% or more.
* Having been in their current loan for a minimum of 6 months with no missed payments.

If you or anyone you know has an FHA or VA loan with an interest rate of 4.875% or higher, that fits into the criteria above please call me. I can help reduce their interest rate and monthly payment with no headaches or hassles. A Typical Streamline Refi only takes about 2 to 3 weeks to complete, it's that easy!

As always, I am here to help in any way that I can. Please feel free to pass this email along to anyone you know who may benefit from this loan program, thank you!

Brian Beres

Mortgage Consultant

(951) 639-3733 CA. direct

(702) 207-2283 NV. direct

(702) 528-1925 cell

(702) 940-9862 fax

bberes@beresconsulting.com

Sometimes Patience does Pay off!

2010-10-20T21:41:00.000-07:00

In these days when it seems like no one trusts each other, everything has to be in writing, and there's always doubt that someone's not going to live up to their obligations, it's nice when you work with a party that goes out on the limb and gives you the opportunity to actually make something work, when most others wouldn't. . . . . I'm talking about a real estate transaction that I'm currently involved with.

I represent the buyer in this case and we wrote up an offer on a property they fell in love with! The seller accepted, but it wasn't until a week or so into escrow when we found out that there still was an item on the buyer's credit files that could be detrimental in getting their loan approved. So, we went ahead and did our inspections and negotiations on repairs, then asked the seller to extend the loan contingency period until we could be sure this item was off the credit files, and therefore minimize any risk of problems with the loan. While most sellers would snub their noses at any such idea, these sellers, along with the guidance of their agent, decided to give us a chance. They waited a full two more weeks! All in all, we went over 30 days from the date of acceptance before the buyers were assured their credit file was clear!

How many sellers would do this? I doubt any, but this time it worked out because now we have full loan approval and are getting set to close. Now you might be asking why would a seller go out on a limb and do that? Well, the reality is that in this case there were issues with the pool and decking around the pool and my buyers were actually willing to accept this condition (with a negotiated credit from the seller), so most likely the seller knew that they would run into the same issue with another buyer as they did with my buyer (and a previous buyer that bailed after finding out about this condition), and didn't want to risk having to waste more time losing another buyer!

In the end, my buyers are ecstatic! It's difficult situations like these that really make you realize the benefits of having a qualified agent represent your best interests (if I don't say so myself). This is my favorite part of my job, taking a difficult situation and making it work out! Crista :)

Ghost REO inventory. Where is is?

2010-10-09T20:27:00.000-07:00

I went to the California Association of Realtors (CAR) convention in Aneheim last week. In my last blog I shared with you Leslie Appleton's real estate market forecast and hope the information was interesting to you. I also sat in on a REO/Distressed property session and remembered a comment that really was helpful in making sense of the ghost REO inventory that we hear about. What is ghost inventory? It's the hundreds of thousands of properties that have been in the foreclosure process, but for one reason or another the banks have not yet completed the foreclosure process which is the trustee sale.

You hear about ghost inventory quite a bit, but you really don't hear about why the banks may be holding off on the trustee sales. The session I attended shed some light on this question! Once a bank disposes of an asset/liability they are required to show this gain/loss on their financials. If a bank forecloses on a large number of properties in a given month, their books would show a tremendous loss! Stockholders would be very unhappy don't you think? So, what have the banks done to prevent this? They have regulated the homes that have been sold at a trustee sale so that they wouldn't show a over zealous loss in a given period.

What does this mean to you and me? It might give us a little bit of better understanding on why a bank may hold off on the trustee sales or not agree to a short sale. One bright side to the story is that regulating the number of foresclosures has created a bit of stability in the market. On the other hand, this behavior will extend the period of time we will see distressed properties as a significant force in our real estate market. Any thoughts? Let me know. Thanks, Crista :)

California Association of Realtors 2011 Market Forecast!

2010-10-07T21:49:00.000-07:00

I just returned from a CAR (California Association of Realtors) convention yesterday and the Chieft Economist, Leslie Appleton-Young, gave a presentation on current market statistics and 2011 real estate forecasts. Below is a synopsis of the key real estate market indicators. Overall, she said the economy is officially out of a recession (meaning the economy is no longer shrinking), but the recover will be slow and difficult. In relation to real estate opportunities, the homes today are more affordable today since 1939 due to interest rates and home prices. It's a great time to buy a home! Let me know if you have any questions relating to your real estate needs. thanks, Crista :)

California REALTORS® forecast slight rise in 2011 home sales

Sales of existing, single-family homes are expected to decline slightly in 2010 compared with 2009, but are forecast to rise slightly in 2011, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2011 California Housing Market Forecast.” Meanwhile, the median price of homes in California is expected to increase both in 2010 and 2011 compared with the year prior.

MAKING SENSE OF THE STORY FOR CONSUMERS

Following near record-high levels of year-over-year sales increases, home sales are expected to decline 10 percent in 2010 compared with 2009, according to the C.A.R. forecast. C.A.R.’s economists predict home sales will increase 2 percent in 2011 compared with 2010.

Home sales are expected to end the year at 492,000 units, compared with 546,500 in 2009. C.A.R. forecasts sales will come in at 502,000 units in 2011.

The median sales price is forecast to increase 11.5 percent to $306,500 for 2010, and an additional 2 percent in 2011 to $312,500, C.A.R. announced.

According to C.A.R. Chief Economist Leslie Appleton-Young, the Association expects a net jobs increase of approximately 1.4 million jobs in California for 2011 and an improvement in unemployment figures, which many believe are key to the economic recovery.

Ms. Appleton-Young also noted that a lean supply of available homes for sale will drive up prices at the low end ($500,000 and less), but larger inventories and limited, less-attractive financing will cause continued softness at the high end of the market ($1 million and more).

Five Mistakes Home Buyers Make

2010-09-14T13:35:00.000-07:00

Here is an article from the Wall Street Journal that I think you will appreciate! Enjoy. Crista :)

By SARAH MAX

Even in this market, buyers can get tripped up. Here are a few do's and don'ts for first-timers..
Home buyers are an increasingly rare breed these days. Many who were eager to buy a house raced to take advantage of federal homebuyer tax credits. When those government perks expired in April, home sales essentially went into deep freeze, plummeting to levels not seen in more than a decade, according to the latest numbers from the National Association of Realtors.

Still, the Realtors project that nearly 4 million existing homes will sell in 2010. First-time buyers, without the burden of a home to sell, could benefit from the foul market–and the record low mortgage rates.

But woe to the overconfident buyer. Here are five common missteps that first-time home buyers make.

1. Snubbing the real estate agent

With so many websites offering a mass of data on listings, who needs an agent? Most people, actually. Finding a house and figuring out comps–the price of comparable homes on the market–is the easy part. Managing the nuances of offers, inspections, financing and all the other pivotal steps to buying a home is where many new buyers tend to get tripped up, says Shii Ann Huang, an associate broker with The Corcoran Group in New York.

When you hire an agent to act as your "buyer's representative," she's obligated to put your interests first, even if her commission is paid by the seller and based on the sale price. Skeptical? That's all the more reason to find an agent on your terms. Ask friends and acquaintances for referrals and interview two or three candidates before deciding.

But don't let the agent find you. When Viviane Ugalde and her husband, both physicians, bought their first home in Sacramento nearly two decades ago they made this mistake. "We stumbled onto an agent when she saw us peeking in the windows of an empty house for sale," Ms. Ugalde recalls. The agent, who happened to live on the same block, came out of her house (wearing pajamas), offered to show the couple around the neighborhood, and ultimately helped them find a house. Then the agent, who was new to real estate, neglected to show up for the closing. "It was scary and confusing signing what seemed like a thousand pages," says Ms. Ugalde.

2. Guesstimating how much you can afford

Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, dive into the house hunt and then get a dose of cold water when lenders refuse to qualify them for that amount. "The process is so different than it was four or five years ago," says Diann Patton, a broker with Coldwell Banker in Grass Valley, Calif. Not only are lenders reading loan applications closely, she says, they're verifying employment and running credit checks multiple times during the process.

Make a date with a mortgage broker or banker before you get serious about your search, says Ms. Patton. Remember, too, that the costs of buying and owning a home go well beyond the sticker price. While online calculators do take into account property tax and insurance, it's up to you to account for maintenance costs, moving fees and association dues.

3. Letting charm cloud your judgment

No one will fault you for falling hard for a charming older home. But, unless the house has been painstakingly remodeled or you're prepared to pay for repairs and upgrades, an old house can quickly lose its allure. Last year Alison Koop, a public relations manager for the University of Washington, came dangerously close to saying "I do" to a seemingly fabulous mid-century home in northeastern Seattle. Ms. Koop was so smitten with the big windows and vaulted ceilings in the living room that she neglected to notice the exposed wires, shoddy roof and other structural problems. Any delusions Ms. Koop had were laid to rest in the guest bathroom. "When the inspector turned the faucet on," she says, "the spigot fell off, hitting the floor of the tub with an exclamatory thunk."

If you're considering an old home, don't let the inspection be your last line of defense, says Jay Papasan, vice president of publishing at Keller Williams Realty. "Negotiate a long due diligence period," he says. That gives you time to get real estimates from contractors and back out if need be.

Of course, new homes aren't without their drawbacks. Recently, many newly built homes experienced serious problems with Chinese-made drywall, for example. Proceed with care whatever the home's age.

4. Focusing on the house, not the hood

In hindsight, many buyers say they wish they'd taken their due diligence a few steps further to really get to know all the perks, quirks and hassles of living in a particular place. You can always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules and marathon commutes. When Laurie Tarkan and her husband bought their first home in 2001 they were so infatuated with the circa-1924 three-bedroom cottage that–in addition to brushing over some of the headaches of an old house –they didn't give a whole lot of thought to its somewhat out-of-the-way location about a mile from downtown Maplewood, N.J., a popular New York suburb. "As a first-time buyer you're not aware of all the things you should think about that aren't about the house," says Ms. Tarkan, who after living in New York City for 17 years, still hasn't gotten used to driving everywhere.

Spend as much time as you can in your future neighborhood, ideally on different days and times. Eat in the restaurants, drop in a yoga class, test drive your commute.

5. Making arbitrary offers

With housing inventory running high and sales at record lows, in most markets, there's no shortage of houses for sale and sellers desperate to get out from under them–all the more reason to hold out for the right house and the right price. But when you find that perfect house, don't assume you can lob a lowball offer or make unreasonable demands. Even in hard-hit markets, nice houses in desirable neighborhoods are fetching multiple bids.

If the house has been on the market for months, you probably don't need to worry about other buyers lining up behind you. Make an offer based on recent sales for comparable homes, foreclosure activity and market trends, and don't be afraid to start the bidding low. If the house is fresh on the market (or recently foreclosed) and other buyers are circling the block, put your best foot forward but don't get suckered into a bidding war.

Who got hit hardest during this California Foreclosure Crisis?

2010-09-10T10:56:00.000-07:00

I saw this article in a First Tuesday newsletter that I receive and I thought it was worth forwarding. It addresses who was hit hardest during the CA foreclosure crisis. I think you will find it interesting. I remember during these times, with the advent of stated income loans, and low introductory rates, many people were purchasing homes they truely couldn't afford in the long term. I hope we have learned our lesson! Enjoy. Crista :)

Who suffered the most in this California foreclosure crisis?

By Krista Craig • Sep 9th, 2010 • Category: real estate newsflash

Share this with a friend!

Statistics about California’s foreclosure crisis involving loans originated between 2004 and 2007 abound. During the period from July 2006 through October 2009, 48% of California homes foreclosed on and repossessed by lenders were owned by Latinos, the ethnic group hardest hit by California’s foreclosure crisis as reported by the Center for Responsible Lending (CRL).

Further, 54% of African-Americans and 47% of Latino homebuyers in 2006 were charged higher interest rates on their mortgages for single family residences (SFRs) than non-Hispanic, Caucasian borrowers. Today, Latinos account for nearly half of California’s foreclosure volume, but they only make up 21% of California’s homeowners and one-third of California’s adult population. However, the high volume of foreclosures these homebuyers suffered was not the result of their ethnicity, but rather the terms of the loans the lenders saw fit to give them.

first tuesday take: The most revealing factor in the CRL report is the fact lenders targeted then steered Latinos and other minority borrowers into unacceptable, improper real estate financing — adjustable rate mortgages (ARMs) — solely to increase profit without separate economic justification. With exposure to predatory lending practices, no first-time homebuyer was safe (much less protected by the enforcement of regulations) from knowingly risky mortgages made during the Millennium Boom. These ARM loans, improper when made, now weigh heavily as a contributing factor to the dire straits of California’s real estate market since nothing is being done to square loan balances with current home values. [For more information on ARMs, see the March 2010 first tuesday article The danger of an ARMs build-up.]

Re: “Dreams deferred: impacts and characteristics of the California foreclosure crisis” from the August 2010 Center for Responsible Lending report; “Foreclosures in state hit Latinos hardest” from the San Francisco Chronicle; “California home foreclosures hit Latinos hardest, study says” from the Sacramento Bee; “Study: how to stop unnecessary foreclosures” from the Orange County Register.
Copyright © 2010 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 20069, Riverside, CA 92516.

Lastest Market Report!

2010-09-07T21:57:00.000-07:00

Hi, I wanted to pass along this real estate market report that I received from an associate and mortgage consultant, Glenn Brickner. He does a good job of relaying key information in easy to understand language. Enjoy! Crista :)

For the week of September 6, 2010 – Vol. 8, Issue 36
>> Market Update

INFO THAT HITS US WHERE WE LIVE Last Thursday, July Pending Home Sales came in UP 5.2%. This measure of signed contracts on existing homes indicates we should see an increase in Existing Home Sales for August and September. Some analysts feel it shows the start of positive market movement after the end of the tax credit, which pushed signed contracts forward into April. We now have a new batch of buyers looking to take advantage of today's affordable prices and historically low mortgage rates.
Speaking of prices, Standard & Poor's/Case-Shiller National Home Price Index reported home prices UP 1.0% from May to June in 20 major U.S. cities. This was the index's third straight gain, which many experts feel came from the increased demand due to the tax credits. So sellers still need to be flexible, since not as many eager buyers are now in the market. But prices do seem to be stabilizing, so buyers would do well to act on a property they like, rather than hold out for any significant price declines going forward.
National average mortgage rates have recently been at historic lows. But in their latest forecast, Mortgage Bankers Association economists see rates going up slightly in the last three months of the year, rising a bit above that for 2011, then perhaps up another percentage point by the end of 2012. More reason for buyers and refinancers to not drag their feet!
>> Review of Last Week

POSITIVE WITH NEGATIVES... The U.S. economy keeps delivering mixed signals, but this week investors on Wall Street let a positive vibe drive the proceedings. Stocks went up four days in a row, ending with a big rally Friday driven by an August Employment report that was by no means great, but better than the downbeat readings that were expected. All three major stock indexes ended up for the week with the Dow now up for the year.

There were notable negatives that continue to show the pace of recovery has slowed. The ISM Services Index came in below estimates indicating modest growth in the non-manufacturing sector. Consumer inflation was UP 0.2% in July and UP 1.5% over a year ago. This is still within the Fed's acceptable range, although some economists think inflation should start rising noticeably next year. Personal income was up 0.2% for July, but this was below what the consensus expected. Finally, final Q2 Productivity dropped to a 1.8% annual rate, a bigger dip than previously estimated.

Positive signs included the ISM Manufacturing index, reported up for July instead of down as expected. August Consumer Confidence also beat expectations. But the big news came with Friday's Employment Report. The U.S. economy lost 54,000 nonfarm jobs in August, far less than the 100,000+ job losses expected. The private sector added 67,000 jobs, while upward revisions to the two prior months took the net gain to 133,000 jobs. Average hourly earnings were UP 0.3% for the month and UP 1.9% this year. But unemployment ticked up to 9.6%, due to an increase in the work force. So even though the report played well on Wall Street, it didn't on Main Street.

For the week, the Dow ended UP 2.9%, to 10447.93; the S&P 500 was UP 3.7%, to 1104.51; and the Nasdaq was UP 3.7%, to 2233.75.
Bond prices held up for most of the week, but Friday's jobs report surprise kept things in check. The FNMA 30-year 4.0% bond we watch ended UP 7 basis points for the week, closing at $102.27. Again, Freddie Mac's weekly survey showed national average fixed rates for conforming mortgages at historic low levels.

Glenn Brickner

Loan Officer
2173 Salk Ave #100
Carlsbad, CA 92008
Office: 760 804 5773
Mobile: 760 310 2034
Fax: 866-215-5268

Great video of North San Diego County Market Summary

2010-09-03T14:31:00.000-07:00

This video is a must see if you want an easy, quick summary of the North County housing market. North County Housing statistics are compiled by Cal State San Marcos and here is their latest report:

http://www.nsdcar.com/video/brownreport/index.php

You will see that housing prices have steadily increased! Number of sales have dipped since previous months. I highly recommend you take a momemnt to check it out. Let me know if you have any questions. Thanks, Crista :)

Possible Extension on $8,000 Credit for existing contracts

2010-06-21T22:34:00.001-07:00

UPDATE 1-Senate votes to extend US home tax credit deadline

WASHINGTON June 16 (Reuters) - The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.

The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.

The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.

Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.

The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.

The popularity of the tax credit has caused some anxiety because settlement offices are inundated with buyers trying to close on transactions by the end of this month to get the tax break. (Reporting by Donna Smith; Editing by John O'Callaghan)

HomeDex North County Real Estate Report shows 22% increase in Median Sale Prices

2010-04-14T16:35:00.000-07:00

The North San Diego Association of Realtors releases monthly housing statistics for North County San Diego area. The latest report was released and I think you will find the summary results quite impressive! Enjoy, Crista :)

The March 2010 year-over median price for North San Diego County single family detached homes rose 28.85%, continuing a seven-month trend of rising year-over prices.
The Median price in March 2010 for a North County single family detached home was $469,000.
Median days-on-market for single family homes in North County decreased to 36 days compared to last month's 40 days.
The number of North County single family detached homes sold increased 35.96% in March 2010 from February 2010. This continues a trend of year-over sales increases since summer 2008 (with exceptions of year-over decreases January 2010 and October 2009).

The North San Diego County Association of REALTORS® is committed to bringing you timely and relevant information of our region's housing market.

CA First Time Homebuyer and New Home Buyer Tax Credit!

2010-04-04T22:05:00.001-07:00

California has signed a new law which will give a tax credit to buyers who are first time homebuyers or new home buyers. Please see below for details. This is a great incentive since the Federal Tax credit for first time homebuyers expires soon! Please call me if you have questions. Crista :)

2010 Tax Credit for New Home / First-Time Buyer(If you are looking for more information regarding the 2009 New Home Credit, go to ftb.ca.gov/forms/2009/09_3528.pdf or search through the “Forms & Publications” tab at ftb.ca.gov.)

Important Update (04/01/10): The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.

The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.

Applying for the 2010 New Home/First Time Buyer tax credits: Applications must be submitted after escrow closes. The new application will be available by May 1, 2010. We will deny the application if the 2009 form is used or if we receive the 2010 application before May 1, 2010.

Check this page often. We will add updates as they become available.

General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes.

These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. We will allocate the tax credits on a first-come, first-served basis.

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

The taxpayer was allowed a 2009 New Home Credit.

The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)

The taxpayer or the taxpayer’s spouse/RDP is related to the seller.

The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:

Be a single family residence, either detached or attached.

Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

The seller does not certify the home has never been occupied.

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application or reservation request after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:

Be a single family residence, either detached or attached.

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

A first-time buyer is any individual (and the individual’s spouse/RDP, if married) who did not have an ownership interest in a principal residence during the preceding 3 year period ending on the date of the purchase of the qualified principal residence.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

Applications: We will accept applications beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.

Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached. To reserve a tax credit, the taxpayer and seller need to complete, sign, and submit to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. We will post the reservation form and details about the process by May 1, 2010.

If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.

Claiming the tax credit:

The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.

The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).

Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.

If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.

The tax credit may not reduce regular tax below TMT.

The tax credit is not refundable.

Any disallowance of the tax credit may not be protested or appealed.

Think Green and how you can save money on your energy bills!

2010-03-25T21:43:00.000-07:00

The National Association of Realtors now offers a Green Designation which teaches you how to be the "source" of the "source" of green information. Since I am environmentally conscious and believe we all need to become more Green in the future, I decided to take the course to become Green Certified. I walked away with an abundant amount of information that I will, most likely, share with you via my blog. This entry will focus on some low cost, easy ways you can decrease energy consumption and costs. Please feel free to contact me if you have Green questions! I can point you to the source that can help you! The following information come from www. GeeenandSave.com. GreenandSave indicates that the following retrofits earn over 100% of your original investment in one year. Vistit this site to obtain additional energy efficiency information. Enjoy. Crista :)

Staging Tips!

2010-03-21T22:32:00.000-07:00

I receive articles all the time from various sources and sometimes I receive some information that is worth forwarding to my clients and prospects. Below is one such article. I think it has valuable information in it that may be useful to you in the future. Enjoy!

RISMEDIA, March 19, 2010—(MCT)—Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.

“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.

But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”

Rinomato offered the following tips for staging a home:

1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.

2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.

3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.

4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.

5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.

6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.

7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.

8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.

9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.

10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.

(c) 2010, The Orlando Sentinel (Fla.).

Distributed by McClatchy-Tribune Information Services.

C.A.R. releases 2009-2010 “State of the California Housing Market”

2010-03-17T11:21:00.000-07:00

C.A.R. (California Association of Realtors) released the 2009-2010 “State of the California Housing Market”. I think you will be encouraged about their findings!

Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.

California’s median home price hit bottom in February 2009 at $245,170. Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009. The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.

Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009. Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.

What's a better investment?

2010-03-12T18:37:00.000-08:00

I am currently working with a buyer prospect who is looking to spent between $350-400k on a townhome in North County Inland area. We have been looking at two and three bedroom townhomes built after 1985. My client asked me a very good question in regards to the resalability of a two bedroom versus a three bedroom. Will a two bedroom be harder to sell than a three bedroom? I thought I would share my response to this question with you.

It may help to rank what I think are bedroom/bath configurations that are the easiest to hardest to sell:

Hardest

1. 1 br/ 1ba - Although the cheapest (and for good reason), these configurations can be very difficult to sell. You are pretty much limited to appealing to a single person or couple. If the home is located in an area where there are predominantly families, this configuration will be the most difficult to find a buyer

2. 2br/1ba - Although you now have two bedrooms, most buyers like to have a dedicated guest bathroom separate from the master bedroom. You may appeal to a few more buyers who dont' care about sharing a bathroom, but this configuration can also be a harder sell

3. 2br/2ba - Now you are getting to a configuration that will serve a lot broader spectrum of potential buyers. A small family perhaps, roommate situation, or just an additional room for an office or guest bedroom with a separate bathroom.

4. 3br/ 2ba - This is one of the most popular configurations to sell. Having three bedrooms and two baths gives a buyer space for a family, office, guest bedroom, etc and two bathrooms are generally sufficient to a prospective buyer

5. 3br/ 2 1/2 baths - This configuration is just icing on the the cake! Having an extra half bath for guests is the ideal situation. You can't go wrong with this configuration, espectially if your home is in the entry level price range

Please let me know if you have any comments or questions on this information. I would be happy to hear from you! Happy House Hunting! Crista :)

Green Technologies Pay Off!

2010-02-27T12:48:00.000-08:00

For the past two years I have been involved with an affordable housing project with the City of Poway. I was hired to sell 33 brand new homes for the developer, Pacific Scene Homes. The homes were completed in December and so far we have closed 14 homes! What is interesting about this project is that the developer used some state of the art green technologies, the main one being a solar electric system. This system uses photovoltaic tiles that are installed on the roof and actually look like roof tiles. What you see is a much more aesthetically pleasing look instead of the ugly solar panels that sit on top of the roof.

Recently I asked some of the homeowners who moved into their home in December to report how much their electric bill was last month. The response was exciting! So far four homeowners replied and their electric bills ranged from $5-$20. Wouldn't that be nice to have an electric bill that small? During the various parts of the year I can imagine many of these homeowners to actually earn a credit for their energy contribution. The kicker is each homeowner will earn about a $4,300 tax credit for having this solar electric system and their assessed property value will be reduced about $15,000 due this system as well. That's what I call worth it!

These systems cost the builder about $23,000 for each home. I have to congratulate Pacific Scene Homes for their commitment to green building, given the extra costs they incurred. I believe this is the wave of the future. If want more information about the solar company or other green features in these homes please contact me. 760-458-0797

Termite and roof repairs almost Kills the Sale

2010-02-17T18:54:00.000-08:00

In my previous post, I mentioned that I have a client who waited four months for a lender approval on a short sale. We finally received and and moved into escrow. What quickly came after almost killed the sale! Here's what happened. The first thing we did was order a termite inspection. This inspection, by the way, was not paid for by the seller or seller's lender, as I have found lenders don't approve termite inspections/repairs when dealing with short sales. But, a termite inspection is important when buying a home because the report will call out not only termite infestation, but also wood dry rot and wood damage. Turns out, our report estimated about $6,500 in repairs! That's a lot of money.

We decided to get a second opinion on wood repair. Many times you can save some money by have the termite company handle the fumigation and having a skilled handyman handle the wood repair or replacement. Our handyman bid came in at $4,000 which when added to the $1,325 fumigation cost totalled $5,135. That's a lot of savings.

We didn't stop there. There was some stains on the ceiling noted by the termite report so we called out a roofing contractor to assess the roof. Yes, there were some minor failures in the roof, mainly caused by lack of maintenance around the vents and junctions. That estimate wasa $1,400 to bring the roof up to snuff and provide a 3 year warranty.

My client was getting cold wet by this time and noticed another home in the area for sale. Long story short we ended up putting an offer on the 2nd home. . . . by the time we heard back from that seller (reo lender), my clients decided to continue with their original decision. Yes, another ride on the roller coaster of real estate sales. Now we are back on track and my client is saving even more money after a 2nd termite company bid came in at $4,125 total! My client still will come out ahead because prices in that area have climbed a bit and I estimate even with the additional $5,500 in termite and roof repairs, he's about $15k under market value at this point!

Until next time. . . Crista :)

Lender squashes credit to buyer

2010-02-09T08:24:00.000-08:00

The lender said "No." As mentioned in an earlier blog, we had a termite report done on a short sale transaction which came back with a $6,500 price tag to correct the damaged wood and fumigate the house. We decided to submit an addendum to ask the lender if they would credit the buyer $5,000 at closing to compensate for this unforseen cost. Sounds fair right? Wrong, the lender said , "No." So, now what? I did another check on market value and even with another $10,000 is possible repairs, my client is still looking at purchasing a home for a great price. We will initiate some additional bids on the work and see if we can save some money. . . We had a skilled handyman bid the wood replacement and he came back with a $4,000 bid. That's about $1,000 less than the termite company had bid. The listing agent is also having another termite company come do an inspection to make sure we have some consistency with what the issues are. So, for now, we will proceed and fact find to see exactly what the rest of the condition of the house is in. Tomorrow is the inspection. I will let you know how that goes. Have a great day. Crista :)

Termite Expenses with Short Sales

2010-02-04T12:45:00.000-08:00

In a previous blog, I mentioned I finally received short sale approval for an offer that I submitted about 4 months ago. Part of the agreement to the short sale approval was that the lender was not going to pay for any termite repairs. This is very common, as lenders don't want to come out of pocket any additional money they don't have to.

Generally, termite repairs are minimal. . . $500-1,500 is common. This amount is palletable by buyers and generally not deal breakers. What happens when you get a termite report that calls for about $6,500 in repairs? Well, that's what I'm dealing with now in this short sale transaction.

I have successfully negotiated termite repair credits in the past (after the fact) and this is what I am attempting to do this time. Lenders won't cough up any money upfront, but there is a chance they will issue a credit at close of escrow. Recently I successfully negotiated $5,000 credit for another similar situation, except the transaction was a bank owned property, not a short sale.

We are requesting the lender credit buyer $5,000 at close of escrow for this transactionas well. Why $5,000 and not $6,500? $5,000 seems to be a breaking point for credits for many lenders. It will come across as more reasonable, then requesting the $6,500 amount. I will keep you posted on what the lender says. . .. Aren't short sales fun??

Wachovia Short Sales Made Easy

2010-02-01T18:12:00.000-08:00

Last week we had an office meeting where a representative came in and talked to the agents about Wachovia's new accerated short sale approval process. If you have a Wachovia or World Savings mortgage, this blog may interest you. Wachovia has just launched a streamlined process for getting short sales approved and closed.

Here's the difference between what you can expect in a typical short sale versus Wachovia's new streamlined process:

Typical
Lender won't even talk with you until you submit an offer
Wachovia
Listing agent contacts a personal representative right when you sign a listing agreement

Typical
Owner typically doesn't speak with any consistent lender contact
Wachovia
Personal Lender rep. meets with seller at seller's home and conducts confidential interview

Typical
Accepted offer is sent to lender along with financial hardship package. There's usually at least 3 weeks before a negotiator is assigned. Once assigned, they order a Broker Price Opinion or Appraisal. As long as they don't lose the package or switch negotators, you may get an answer in another 4-6 weeks. My last one took 4 months and that one was suppose to be "easy". There are cases when this may take a shorter time depending on other factors.
Wachovia
Accepted offer is sent directly to local sales rep and an answer is expected within a week!

Wachovia still needs to see that the owner is in a financial hardship position prior to approval a short sale. If the owner wants to stay in the home, they will first attempt a loan modification. Either way, Wachovia has set a tremendous precedence for streamlining the short sale process. Way to go Wachovia!

Short Sale Listing Showing on Saturday

2010-02-01T17:40:00.000-08:00

This weekend, I showed numerous homes in Vista and Carlsbad. It was a very nice day and I am very happy work with these new clients from Arizona. One house we saw was a short sale listing in Carlsbad. The listing said vacant, but when we showed up there were people there. Luckily, the occupants answered the door and let us in after having a brief conversation with the listing agent. These occupants were new "tenants".

So, here I pose a question to you. . . is there an ethical issue here or not? The owner is selling his home as a short sale which means they are asking the lender to agree to accept less than what is owed for the home. Generally, this means the owner has stopped paying their mortgage due to financial hardship, etc. With some exceptions the lenders don't typically agree to short sales unless the owners are delinquent and in a financial hardship position.

So, let's assume the owner is not paying their mortgage. Yet, they are collecting rent from tenants. . . I think you get the point. Do you think the bank should be aware of this? If so, should they demand the rent money that is being collected? Is the owner just making a prudent business decision? Or maybe, is this ok because the owner is obviously desparate and doing whatever they can to bring in some money? I find these situations very thought provoking. What are your thoughts?

Short Sale Approval after waiting for 4 months!

2010-01-29T07:34:00.000-08:00

We wrote an all cash offer on September 27 and yesterday we finally received short sale approval from the bank! Although a rare case, my client hung in there for those 4 months with enough faith to keep him hoping! In this case the bank was Chase and there was only one loan (no 2nd mortgage to worry about). The file seemed to be pretty clear cut. The owner had previoius short sales approved which means he already showed a financial hardship so the process was expected to be short and simple.

The reality is that the lender "lost" the short sale package at least two times. The lender assigned a negotiator the end of November I believe. A BPO (brokers price opionion) was ordered so we were hoping for a decision in the middle of December. With the holidays and such not much happened. In the middle of January I found out that a new Negotiator was assigned. Frustrating, but then again the first one didn't seem to be performing so maybe this one would get things done.

Finally, yesterday we hear that the bank approved the short sale for the price we offered. The only considerations was the lender was not going to pay for about $1,000 of "seller" closing costs so my buyer would be picking up those costs. Oh, by the way, they reduced commissions as well. You see, we all feel the pain. Now, we can look forward to a smooth escrow . . . or maybe not. We will see. I will keep you posted.

Finally Started my Blog!

2010-01-28T22:56:00.001-08:00

New Years Resolutions are good for something! Sometimes they create an inspiration to actually follow through with something you seem to just think about. That is the case with this blog. I'm excited to have a channel to share my day to day real estate experiences with my clients and web site visitors.

In these days of short sales and REO's I've experienced things I never thought I would experience! Some experiences are quite pathetic and depressing. Others are heartwarming and inspiring. Either way, I've felt compelled to share some of my day to day experiences with other because I think they may be quite interesting to read about. Maybe my experiences will help others better understand the market and how to navigate through it successfully. I welcome your comments!

Please feel free to ask me questions about any real estate topic. I bet others have the same questions and feel it would be nice to share the answers.