The Real View

Mortgage Delinquencies - The Coming Storm

Thu, 01 Oct 2009 09:12:23 -0500

We are seeing an increasing number of lender-generated loan modification attempts here in San Diego County, but some borrowers have just thrown in the towel.

These bloody charts say much:

Via Jeff Geoghan MBA - Lancaster PA Real Estate Expert (The Jeff Geoghan Realty Group, Coldwell Banker Lancaster PA):

This is one of those posts where I wish I didn't have to write it, but felt it was so important to my readers that I would be remiss not to at least talk about it.

Everyone out there probably knows somebody who is behind on their mortgage payments, looking for alternatives and likely also just finding out that their home's value has dipped below what their loan amount is. I know some within my own personal circles. It's a tough situation for me to advise them as a professional because it's such a personal challenge to their pride and self-worth, not to mention their plans an dreams for the family. The question we're asking is "when is this going to stop and where are we heading?"

I'm going to put up a few graphs that show the trends nationally with regards to mortgage delinquincies:

This chart is by quarter - Single-family mortgages set a new record delinquency rate in the second quarter of 2009, according to a quarterly survey by the Mortgage Bankers Association. Those of us in the real estate business see the foreclosure process (just visit the local Sheriff Sale docket to see the current numbers) but the looming delinqency-to-foreclosure issue is far, far larger.

The Wall Street Journal on 8/3/09 reported the following quote: “While subprime mortgages sparked the first round of housing problems two years ago, now "troubles are lurking further up the food chain," says Joshua Shapiro, chief U.S. economist at MFR Inc. White-collar job losses have accelerated while more adjustable-rate loans to prime borrowers are resetting to higher payments. ‘You put all that together, it leads me to believe that the next leg down on home prices is going to come from the top,’ he says.”

The first objection someone may have would be to say "yes, but historically those who are delinqent usually get their act together and come current on the mortgage after a while". That WAS true, but not anymore! We call that the "Cure Rate", that is the rate of delinquencies that go back to current. The Wall Street Journal reported on 8/24/09 about a Fitch analysis that found that the Cure Rate from 2000-2006 was 45% (which means about half of people fix their delinquency). However, as of July 2009 the rate had dropped to just 6.6%! That means that over 90% of delinquent customers are going to foreclosure. Take a look again at the above chart...

The next thing someone will say is "well, that's the 'sand states' and not my area". Here's the chart for all 50 states showing the same breakdown of delinquencies and foreclosures. Guess what - most states have a significant problem, especially compared to historical figures.

Now the next thing someone may say is "aren't those loans going to get 'fixed' by a loan modification?" I know several people right now who are applying for a Lancaster County loan modification but are waiting and waiting. I hope it works out for them...

In reality, loan modifications are hardly making a dent. To me, that's a burning question. Why arent banks being more aggressive in giving customers the option to extend their loan and/or reset to a lower rate? Why are they being SO difficult? The people I know don't want to be foreclosed. They CAN make payments. They just need the terms redrawn to allow them to catch & keep up. Loan modifications are not helping us get this crisis under control.

What are the causes of all these delinquencies? Here's a chart that is enlightening:

We hear a lot about adjustable rate mortgages being the culprit, but the reality is that it's the loss of jobs and the tanking real estate market that's the perfect storm. See my previous post on unemployment in the nation, the state and Lancaster County.

Keep in mind, this post is not intended to give us "good news". You may be experiencing good things in your market and that's great. My intent is to get us thinking about the challenges that aren't going away and how we're going to address them as homeowners, agents and professionals. I'd love to hear your ideas!

Freddie Mac Offering Foreclosures Back to Owners?

Sat, 08 Aug 2009 23:05:41 -0500

This is a program that makes a world of sense for real estate foreclosures.

Freddie Mac, even after foreclosing on a home, now offers the former homeowner the chance to either lease the home–or buy it back as long as the occupant is employed and not engaged in a bankruptcy.

This keeps the home occupied by someone vested in the property, helps preserve neighborhood values and will likely eliminate natonal foreclosure problems much more quickly. And it’s also pretty cool that some homeowners get to stay in their homes without the disruptions that go with moving.

Freddie Mac gets it.

Freddie Mac hires representatives to contact owners of foreclosed homes to see if they would like to remain–and possibly refinance into something more affordable.

And this is done before the foreclosure deed is recorded. There is now a window of opportunity for homeowners to remain in their homes without the embarrassment of tacky foreclosure signs in the yard–=and the pain of moving. We’ve known about their leaseback offer:

Finally, in those cases where foreclosure proves unavoidable, Freddie Mac still works to keep families in their homes. We have suspended evictions triggered by foreclosures, offering qualified former owner-occupants and tenants leases so they can rent the properties on a month-to-month basis after foreclosure.

We now hear from good sources that Freddie Mac is also offering some homeowners the opportunity to refinance their homes after the foreclosure– before the foreclosure deed is recorded.

Kudos to Freddie Mac!

Approved by Cartus?= 40% Please

Sat, 08 Aug 2009 13:49:18 -0500

So many hands are trying to reach their way into the real estate transaction. I was not aware of Cartus' tactics until readilng this.

Via Northern Virginia Homes - FRANKLY REAL ESTATE Inc:

Cartus relocation company is a CROC! (that is an opinion, for more opinions Google Cartus sucks).

Actually many "relocation" companies that are supposed to help the employee are just fronts for making profit. And they have such a compelling pitch! How could an eligible buyer actually decide to bypass them? EASILY!

I'll explain exactly why you might want to bypass your relocation company AND how you can use PART of their system to your benefit and ditch the other part.

Why am I picking on Cartus? Cuz I was robbed. I got this email the other day:

Hi, I'm moving to Virginia with my job in a month and my fiance and I are a big Frank fan! {Name Omitted} recommended you to us. We love the website and reading/listening to your blog. And, we'd like to go with your realty firm when we purchase a place in Northern Arlington this summer. Fortunately for us, my company (XYZ) is willing to pay Realtor's fees and closing costs but I need to approve you as a realtor/realty before they will allow us to get started.

I added the emphasis.

1) Fortunately for us. Wow, the company is so gracious. They really care about their employees. Consider it a benefit like healthcare. They will pay Realtor fees and closing costs! (end sarcasm here)

Ok, first of all when you are buying, there are NO "Realtor fees" (sidenote: ha, I wonder if they pay for the bogus Realtor Admin fees which the Washington Post, link, just covered and cited my blog) per se because the Realtor fees are paid by the buyer. But it surely makes for a good BS pitch in the brochure. Why not also add: free keys! As for the "closing costs" I'll get to that shortly...

2) Approve you. Approve me for what? Make sure I'm good? Knowledgeable with people that are relocating? Maybe a quiz or a check for references? No. None of this happened.

I knew the "approve" the agent sounded fishy. I warned the buyer... I said "I bet they are up to something."

Finally Cartus contacts me. I get an email that effectively said: You are approved when you agree to give us 40% of your commission. (actually it said "registration entails a verbal agreement of a 40% referral fee.")

Are you F-ing kidding me? "Referral fee?" Did they refer business to me? Hell no. These buyers found me on their own. They were a personal reference from a friend that felt like they got great service. And Cartus demands 40% to be part of their program. What is this Robin Hood? Take from one to give a another? And keep a little for profit in the process?

So here are the details for their program, I am a fine print reader, so at the end I will try to parse this out for you.

CARTUS HOME PURCHASE CLOSING COSTS

There are numerous expenses associated with the purchase of your new home that vary by state and local custom. You will be reimbursed for buyer’s expenses customary in the new location; which should be discussed with your Cartus Relocation Consultant.

In all cases, only one set of lending fees and one-time closing fees will be reimbursed. Fees and charges most commonly recognized for reimbursement are:

Abstract or title search, Amortization fee, Application fee, Appraisal fee (1), Attorney fees (where required by state law), Certified copies, Credit report (1), Document preparation fee, Escrow fee, Guarantee fee, Inspections that are normal and customary for the area (termite, well/septic),

- Loan origination fee not to exceed 1% of the mortgage amount. If you do not contact Cartus prior to beginning the home purchase assistance program, you will not be eligible for the 1% loan origination fee.

Homeowners title policy for new construction only, Lender's Title Policy, Messenger service fees/express shipment fees, Notary fees, Recording fees, Settlement or closing fee, Survey, Tax service fee, Title examination, Underwriting fee

Isn't it fun making a really long list of fees that are paid? Even though many of them are next to nothing. I just pulled up a HUD1 for a buyer (note that fees can vary by closing company and frequently get renamed and shuffled around).

Here are a few of the next to nothing fees on the list that you get FREE!!: Notary Fee= $0, Messenger= $55, Tax service fee $0, Recording $65, Termite $35, Credit report $14, Title examination=$0.

The fees that have some real value: Survey= $265 Settlement fee=$195 Title Search=$175 Lender's title insurance=$1,800 (on a $650k VA home, reissue rate) NOT present in the list of closing costs: Owner's title insurance= $1350 (except for closing costs) Read more on Owner's Title

Conditional costs. Ie IF, a big IF, you use their "approved" Realtor. You get: Loan origination fee 1%. Lenders have a ton of names for these types of fees. Sometimes they are called "Rate buy down" points, or "Discount Fee." The short hand is just "points." Points aren't necessarily bad (make sure to subscribe to this blog for a full post on when to buy points). More often than not, if you put down 20% there are ZERO POINTS, ie $0 Loan Origination fees. So if you DO use the Cartus program, and an "approved" Realtor, make sure you go out of your way to max out the full 1% point. (ie if the lender was going to charge you no points, they can make up the fee and buy down your rate, as in make your 5% rate 4.75% approximately)

But here is the fine print as I understand it...

BOTTOM LINE: You only have to use their approved Realtor IF you need that Loan origination fee. In other words, you can still pick your favorite Realtor and get all the other fees covered for free by Cartus. (I could be wrong, but that is how I understand their rules above).

Why in God's world would you give up the ability to get a "free" 1% loan origination fee?

Well that is a separate and lengthy discussion on rebating and discounting. Heck, there are several companies that will give you a 1.5% cash rebate. Heck a 1.5% cash rebate is MUCH better than no cash reimbursement for a 1% fee you might not have purchased normally.

WAYS TO MILK CARTUS

1) Have them pay ALL your fees except the 1%, and find your own Realtor that will give you a rebate.

2) Or if you find a Realtor that is willing to be "approved" by Cartus, tell them "hey buddy, you are willing to give 40% to Cartus right? And Cartus will just turn around and refund 33% (1% or 1/3rd of the 3% offered to buyer's agents) of the 40% in the form of a 1% loan rebate, why not just give me the 40% directly?! Cut out Cartus and get 1.2% refunded on your HUD1 vs 1% lender fee repayment and Cartus pocketing the rest.

3) Get your own un-approved agent, skip the loan fee reimbursement, yet accept all the other fees. So why am I telling you the secret path to getting the most cash out of the relocation company and system? Well maybe, just maybe you will then believe me that #3 above might be the best solution for you in the end.

Stop and think about for a second. Cartus demands 40% from a Realtor that you pick or one that they pick. So for the ones that they pick, what kind of Realtors will accept that? Oftentimes desperate ones. Perhaps those that are kinda struggling. You know, economy is tough right now. Weekend warrior Realtors that have nothing better to do? One that will pressure you into a house and hope to get you off their slate as fast as possible so they can make the next 60% deal from Cartus. Perhaps they have to cut down half the time they spend on you, to make it worth it.

So signing with Cartus with an "Approved" Realtor, is not much different than Rebating. I have no problem with the rebating business model. (note: you won't find many other non-Rebating Realtors talk about it openly).

Why do I talk about it? Well as I like to say "I use to rebate, but then I got good." Yep Read: Realtor Rebates. Free Money or Expensive Savings? and more on rebating.

In the end, know you do have a choice. You can get the best of both worlds. You can get Cartus to pay a good amount of your closing costs, get a loan with NO loan origination fees, and get to pick an agent that is working for YOU, and not for Cartus.

Oh, and remember I'm not too busy for you, so email me. See I'm Not Too Busy For You video #1 and Video #2

Make sure to subscribe and comment and debate. Nobody likes a stale blog!

Written by Frank Borges LL0SA

Broker FranklyRealty.com

Owner FranklyMLS.com

Croc image DrBartje Fish image Phillip

ps. My experience was on the BUYING side. Can somebody comment on the SELLING side of relocating? Do they really buy the house at the appraised price and eat any subsequent loss? Now that seems to have some value in this market.

San Diego REALTOR Soiree- June 23, 2009

Tue, 09 Jun 2009 22:18:21 -0500

I'll be there and am encouraging our fun agents to attend as well:=)

Via America's #1 Mortgage Broker/858-777-9751:

What a great opportunity to relax and network among other San Diego Real Estate Professionals at the D Street Bar & Grill, in Encinitas, on June 23, 2009. There will be no educational agenda for this meetup; just good ol' fashioned fun and networking.

We're trying to "rebuild" the fun and educational times of two summers ago so please invite a friend or two

Location

D Street Bar and Grill

485 S Coast Highway 101
Encinitas, CA 92024
Change Place

How to find us
"You can always call me at 858-777-9751"

San Diego Real Estate Agent Meetup- April 8

Mon, 06 Apr 2009 09:00:50 -0500

Meet-ups with Brian Brady are always the greatest!

Via America's #1 Mortgage Broker/858-777-9751:

The San Diego Real Estate Agent Meetup is Back

Join in on the fun, business networking, free appetizers, and raffle prizes. This month, we'll join up with Coastal Networking, one of San Diego's best networking groups. Meet great contacts for either business or pleasure. This month, we'll be at Venice Ristorante in UTC from 5:30 to 7:30ish.

Venice Ristorante

4365 Executive Dr.

San Diego, CA 92121

858-597-1188

RSVP HERE

1829 Elevado Road, Vista, CA 92084

Sat, 17 Nov 2007 17:54:04 -0600

Sometimes you walk into a home, sense both ageless soul and serenity–and can’t help but smile.

We recently listed such an estate in the beautiful hills of Vista, California. Its current and original owners are a spirited and beautiful international opera singer and her dashing husband, a retired professor of art. With loving attention to detail, it seems nothing was missed in the completion of this luxurious 2003 custom home.

When I first walked into the home, I was struck by the use of old and rich colors, antique woods, the graceful wood and iron staircase, and light classical music that filled the rooms.

At first glance, I knew this home would be exceptional.

The gated hilltop setting offers both ocean and mountain views–as well as quiet privacy. The home’s flexible 4000+ sf floorplan has volume ceilings that carry classical music well, a grand foyer, large living and music rooms, multiple dining areas, and a kitchen Alice Waters might envy.

Upstairs, we discover a substantial master suite with an adjoining study, large dressing room and bath, spa tub, and large, organized closets. A romantic trellised balcony overlooks both the mountains and ocean horizon, while the two-way fireplace warms both the bedroom and bath areas. Three other large bedrooms and an open bridge complete the upstairs.

The bones of a home may be magnificent, but inspiring beauty comes from surfaces, windows, doors, lighting, amenities, color and textures. I share clients’ enthusiasm when all of these elements come together.

This home lacks nothing and blends all elements well. It has rich Tuscan colors, art niches and unfluted columns. It beautifully blends the use of stone, iron and woods, and offers contemporary conveniences such as central vacuum and a discreet kitchen vent that captures broom sweepings.

Outdoors is a large covered patio, lawn, gardens and small acreage for hobbies, horses or arborists.

I have often thought that equestrian homeowners in Poway, Rancho Santa Fe and Fallbrook who were displaced by the recent San Diego fires might find this property of interest.

Located on highly-desired Elevado Street in Vista, this estate is reasonably offered at $1.5 million by owners who are anxious to retire in Crete.

We intend to help them accomplish this dream–and look forward to having terrific clients in such a wonderful corner of the world.

BPO Agents Beware

Mon, 22 Dec 2008 14:48:50 -0600

The world of short sales and REO's is not without its predators in Realtor's clothing.

Some of you, for example, may have had a short sale listing or sale blown out of the water because of an inflated BPO (Broker's Price Opinion) designed to negatively sway a lender's/negotiator's decision regarding offer(s) on the table. Often, these inflated BPO's are generated to gain an unethical financial or business advantage--generally to obtain a listing agreement from lenders and loan servicers.

When this practice occurs, it harms not only potential buyers, but also owners whose homes end up going to foreclosure, the buyers' and sellers' agents, and the lenders who entrust BPO's and property valuations to agents with ulterior motives.

It is an unethical practice that can have disastrous results for many.

But those who inflate BPO valuations in California could end up losing their real estate licenses.

Effective January 1, 2009, agents who inflate BPO's might have to forfeit or suspend their real estate licenses, courtesy of the California Department of Real Estate, "if the licensee generates an inaccurate opinion of value for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement," per SB 1737.

It's about time....

Tax Relief for Strugging San Diego Property Owners

Sun, 25 Nov 2007 19:25:50 -0600

This has been a tough year for America’s Finest City. There has been destruction of homes by wildfires and landslides. Then there’s the San Diego real estate market which has taken a ~~needed~~ serious slide that has resulted in a record number of foreclosures and short sales.

But all is not gloom and doom for San Diego County property owners.

Those whose homes were damaged or destroyed by the 2007 fires and La Jolla landslides–and who suffered at least $10,000 in damages–should file a claim with the Assessor’s Office within twelve months of the damage occurrence.

This tax relief also extends to mobile homes if they have property tax assessments (versus state license fees) as well as citrus, nut and avocado groves if at least $10,000 in damage occurred to the trees, irrigation systems and other appurtenant structures. Crops are not included in damage assessments because they aren’t assessed for property taxes.

Once a home is rebuilt, San Diego property owners will be able to retain their original assessed value as long as the home is rebuilt in a manner similar to the original construction. Added square footage and substantial extras such as additional bathrooms will be added to the base year valuation at full market value.

If you are one of the San Diego home buyers who purchased in the last couple of years and your home’s value has declined below its assessed value, you can also appeal to the County Tax Assessor for an adjustment in your property tax basis. Once the market recovers, the property will be reassessed at its original value.

Breaking Down the Big Boxes

Wed, 22 Oct 2008 22:17:39 -0500

Until recently, we all heard about the demise of the Mom and Pop real estate agencies, and how all the independents would be swallowed by Coldwell Banker, Prudential and all the other red, white and blue real estate boxes.

We were told that ultimately, there would only be a few big firms left standing in the world of real estate brokerage.

It was all solid research, or so we were told.

But:

Murphy's Law of Research
Enough research will tend to support whatever theory.

My theory, based on anecdotal evidence, tends to support another view; namely, that the prairie fire that has swept the real estate market the last couple of years has spawned a proliferation of small and independent real estate companies. I am amazed at the number of new and unknown companies in our San Diego real estate market--and find that in certain communities, they are outlisting and outselling their behemoth brethren

What gives? I wondered just a couple of weeks ago.

Now I understand.

It was just last week that I heard Sotheby's International Realty was closing operations in San Diego--and that Prudential would be offered the chance to pick up the pieces.

Humph. Never did consider myself to be a piece--or a piece of anything.

Our little group decided to join that growing group of agents and brokers who operate without franchise ropes--and the rugs that tend to get pulled out from under when least expected.

Yesterday, we made it official with our MLS and Board of Realtors. The hardest decision, though, was what to call ourselves.

In the end, we unanimously decided to let the tail wag the dog--and named the company after our website that has been around for years:

San Diego Previews

Taglines to follow.

And what is that saying about grass growing greener after a prairie fire?

Surfing Encinitas Subdivisions and Neighborhoods

Mon, 13 Aug 2007 06:59:23 -0500

Southern California's coastal Encinitas has homes, condos and building lots to suit the needs of the fussiest home shopper. Located in San Diego's prime North County, Encinitas offers everything from oceanfront homes and condos--to equestrian estates--to newer homes around Encinitas Ranch Golf Course.

Much has been written about Encinitas, its real estate and its lifestyle, but sometimes dry lists are needed.

There are numerous Encinitas subdivisions and neighborhoods that are recognized by both locals and real estate professionals, and some of these communities have clearly defined borders, such as Cambria, Knightsbridge, and Wildflower Estates. Other Encinitas commuunities are more generally known by the their locale or geographic features such as the Beach Area, Leucadia, Moonlight Beach and Olivenhain.

As you search through Encinitas MLS listings, you will often see the community or neighborhood listed. In trying to familiarize yourself with the Encinitas area and its real estate, it might be helpful to refer to this list of Encinitas (which includes Leucadia and Olivenhain) subdivisions, neighborhoods and communities:

Adam’s Run (Olivenhain)

Avocado Acres

Encinitas Beach Area

Bridgewater

Cambria

Copper Crest (Olivenhain)

Crest Acres

Crestview

Encinitas Bluffs (Beach Area)

Encinitas Estates

Encinitas Ranch (Golf Community)

Encinitas Real

Fieldstone

Knightsbridge (Olivenhain)

Leucadia

Leucadia Hills

Moonlight Beach (Beach Area)

Morning Sun Ranch

Oceanfront (self descriptive; beach area)

Olivenhain

Orchidia

Pacific Pines (condo conversion)

Pacific Ranch

Pacific Serena

Quail Gardens

Quail Park

Sage Canyon

Saxony

Sea Bluff (gated oceanfront Leucadia condos and townhomes)

Seagate

Seaside Gardens

Summerfield

Village Park (homes and townhomes)

West Hampton Cove (condos)

Wildflower Estates (Olivenhain)

Search Encinitas Real Estate and MLS

Encinitas Luxury Homes

The Venetian Plaster Master

Sun, 06 May 2007 22:41:07 -0500

When I first entered this newer San Diego luxury home, I was amazed by its wall and ceiling finishes. Walking slowly from room to room, I ran my fingers over the cool burnished walls and the gray stone door arches. Even the ceilings and dome gave the impression that we had indeed been transported to a Venetian villa.

Had I not known the responsible artisan for this masterpiece, I would never have guessed an underlying truth: These walls were nothing more than standard drywall that had been transformed by a clever Polish artist who specializes in exquisite surface finishes.

Greg Sieminski explains that European artisans have been creating beautiful walls for centuries utilizing limestone plasters softly colored with natural elements. He studied these walls in Mediterranean countries, and wondered how the rich, aged patina could be duplicated in fine San Diego homes. It took several years, but Greg was able to perfect his replications of fine Venetian plaster-to the delight and amazement of his clients.

How is Venetian plaster made? Greg explains that the 1300-year-old process starts with the selection of special limestone from Italian quarries and rivers. The limestone is then fired in a large and very hot kiln, which causes chemical changes within the limestone itself. The result? The super-heated stones turn to putty when placed in water. The painter goes on to describe how this putty is wet-seasoned for up to a year before being processed as a finishing plaster.

The end result, says Greg, is a finely milled limestone putty that is even finer than face powder. This cultivated material can be further embellished with finely-ground marble, which yields an ancient building material that can be burnished to a low sheen-or rubbed to a high polish. Additionally, he will occasionally add granular material so that he can recreate stone finishes.

Venetian plaster, he explains, is not "faux painting," as hobbyists commonly refer to this style of painting. "The product is not paint. It is an old finishing technique that works well in contemporary homes." He adds that Venetian plaster can be used outdoors as well, with few limitations.

Search San Diego Luxury Homes

Luxury Home Blog

7 Tips for Crack Real Estate Negotiators

Tue, 12 Aug 2008 11:06:07 -0500

If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best buying opportunities in a lifetime as well.

We are seeing smart money aggressively buying in our San Diego real estate market, and hear reports of the same elsewhere.

The properties are being bought as primary homes, as fix-and-flippers --or are being held as longer term rentals.

We receive inquiries about these homes almost daily; but more recently, we are being consulted about strategies for buying real estate at bargain prices. These buyers may or may not have to sell their existing home to buy another--and may also be open to exchange possibilities.

Listed below are 7 strategies we use to help our home buyers (and others) get some of the best bargains on the market.

Study Market Time: Homes in general may take longer to sell these days because of pricing, percecived seller value and a more cautious pool of buyers. But that doesn’t mean sellers are any less motivated to move on with their lives. At one time, we thought little of homes sitting on the market for 90 days or more. These days, we seek buying opportunities if a home has been on the market over 60 days-- and are seeing some heavy price discounting from our buyers if days on market goes over 90 days.
Check Tax Records and other Sources: Is there more debt on the home than what it is worth? Has a Notice of Default been filed that would indicate a looming foreclosure? If so, and if this is a home of interest for our buyer, we submit an offer contingent upon the successful negotiation of a short sale (where the lender sells the property for less than what is owed). In this case, either we or professional negotiators deal with the lender(s) to reach the best possible price for our buyer.
Did Owners Pay Cash or Have They Owned Their Home for Longer than 10 Years? These sellers may be in a position to sell at a discount or may be motivated to do so due to life transitions or other investment opportunities. They may also be open to owner-financing for all or part of the home mortgage. Become knowledgeable about installment sales and other creative financing strategies.
Are You Open to Remodeling? Homes sold in as-is condition are more likely than others to sell at a substantial discount. Owners, especially when the home has been on the market for some time, are often overwhelmed with the thought of remodeling and updating–and fearful that their decor choices will not suit potential buyers. In many markets, older or outdated homes are sometimes sold at land value.
Foreclosure Sales: The f-word (foreclosure) is occurring even in the luxury home market. Highly leveraged homes purchased in the last few years are more frequently ending up on the courthouse steps. Foreclosure purchases, which require cash and carry no disclosures or guarantees, offer both great potential for profit–and big dangers for the uninformed. Bidding should be non-emotional and it is best to have a professional bidding for you–but only after thorough-as-possible research has been done regarding the home’s condition, its history and resale potential. Cracked slabs, structural defects and boundary line encroachments are unwelcome surprises.
Home Exchanges: This is a rather novel strategy for those trying to sell their luxury home in a bloody market. Life transitions encourage luxury homeowners to make moves. Empty-nesters may wish to relocate from their large estate to something equally posh but far less demanding in upkeep. Others may have expanding families that crave acreage, pools, tennis courts or equestrian facilities. In the Southern California market, Owner-Broker Bob Dyson and Villa Sotheby’s International Realty have set up a property exchange platform that allows homeowners to directly exchange properties and ownership. It is a tactic that helps to support neighborhood values and removes many of the pressures involved in having a home on the market for an extended period of time.
If the property you want is listed, have your agent check the other real estate agent’s listing history. If that agent tends to have listings on the market for a long time, you may wish to lower your offer. On the other hand, if the agent prices properties aggressively and has short “days on market,” you may consider coming in near to, at, or over list price. You will likely find those listings already priced at or below market to attract multiple offers.

A combination of patience, perseverance and the ability to move quickly will serve all astute buyers of real estate these days, but the greatest potential of all may lie with properties whose replacement value could far exceed the purchase price--or those with exquisite locations.

Redfin Fined $50,000 and Told to Alter Blog

Thu, 17 May 2007 18:34:20 -0500

The Northwest Multiple Listing Service in Seattle has fired a major volley at Redfin.

John Cook and the Seattle PI report that Redfin has been fined $50,000 and been ordered to halt home reviews on its Sweet Digs blog, which has over 3000 subscribers. The posts are wriiten by 15 hired hands who have posted around 1000 home reviews in the Seattle and San Francisco markets.

According to CEO Glenn Kelman, they (Redfin) will have no choice but to abide by the ruling; otherwise, the NWMSL would cut off Redfin's daily IDX feed for listings. The NWMLS ruling was based on the frequently-enforced Rule 190 which prohibits brokers from advertising others' listings without permission.

And according to a reported Wall Street Journal story, Redfin was also asked by the NWMLS to cease publishing the number of days a home remains on the market.

Redfin is appealing the fine.

8 Steps to Help Preserve Your Neighborhood From Foreclosed Homes

Tue, 30 Sep 2008 11:54:16 -0500

Sacramento Realtor Gena Riede has some outstanding suggestions for preserving neighborhoods from the visual and health ravages of foreclsoed homes.

Via Sacramento Real Estate and Luxury Homes, Assoc. Real Estate Broker,Gena Riede:

Are there foreclosures in your neighborhood? Sacramento, CA has certainly had its fair share of real estate foreclosures. Some neighborhoods worse off than others. The steps to be a pro-active neighbor are not just for Sacramento neighborhoods but can be applied all over the country.

Have homeowners moved out on your street? Are there vacant homes on your street? Have renters moved out and no one has moved in?

Have you seen the remnants of a Foreclosure in your neighborhood? Are you sick of seeing burned-up grass in neighborhoods?

I recently saw what could be a solution to help sell a house where the banks have decided to turn off the water and no one is taking care of the lawn.

Here are some solutions neighbors can do to help preserve their own neighborhoods:

Form a Neighborhood Watch through your local Police Department

Become familiar with your neighbors and know who is living in the houses on your street

Be aware when neighbors move out (many times a house stays vacant for months before a bank is aware that the owner has even moved out.

When a house is vacant, check for trash and put it out for pick-up. Remember, no one is there to do it and trash brings rats into your neighborhood

Park one of your cars in the driveway and rotate them to keep pilfers at bay

Pull weeds and mow the lawn...take turns in your neighborhood and keep up your street

Report broken windows etc to your County officials

Report any suspicious cars or people on the property

It's time that neighbors took back their neighborhood and become pro-active. Don't try to use the water or figure out a way to turn on what has been shut off at a vacant house. As this may cause major flooding inside a winterized house. If water is needed, use your own water.

A proactive approach is always less stressful and will lend itself to being a "good neighbor," while helping yourself in the process.

The House Guest from Hell

Thu, 25 Jan 2007 23:07:59 -0600

Last summer we sold a lovely $1.8 million Carlsbad, CA home to an out of area partnership. One partner lived in Los Angeles, and the other in New York. It was to be their retreat in paradise, and a place to meet potential clients.

In two short months, this paradise has turned into a real estate nightmare that could rival that 1990 Melanie Griffiths film, Pacific Heights-with the evil tenant who just wouldn't quit. This true-life story is one that could give any homeowner nightmares.

Around six weeks ago, the Los Angeles partner invited a friend to stay at the Carlsbad home for "a short while." He reasoned that she could keep an eye on things and meet appliance repair people. It was a casual arrangement.

The New York partner was not involved with the invitation, but decided to go with the flow--at least for "a short while." A dangerous assumption was made that everything would work out in a timely fashion. A couple of weeks ago, New York called the guest and advised that she should plan on departing around the first of February because the house would be full of invited business associates. House Guest hung up on New York mid-sentence.

Ever the calm one, NY wrote an email clearly and politely asking HG to be out of the home by Feb 3. The near-immedeiate response from The Guest prompted New York to call me this morning pleading for help.It seems the partnership was given an ultimatim to provide a "severance package" to the guest before she would even consider making a move.

A call to the California Association of Realtors Legal Hotline confirmed my worst fear: They had a tenancy at will situation and if things were not resolved beforehand, the partnership would likely have to go through full eviction proceedings, which could take up to 90 days. Meanwhile, New York is still planning to bring friends and associates to the home in early February. And if the House Guest from Hell has not departed, it will be a story for the textbooks (or the National Enquirer).

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