One of my favorite places on the Central Coast to produce shop is the Avila Barn at the entrance to Avila Beach.  They have a fabulous selection of fresh vegetables and fruits and a wonderful bakery.  This year they added an ice cream parlor and candy store.  I picked up an olallieberry pie for our Mother’s Day brunch, and it was a big hit.  It’s worth a visit if you haven’t already been there.

Posted: May 13th, 2008 under Real Estate Sales Activity.

The Eddie Stanfield Team just listed another bank-owned property today in Orcutt.  The asking price is $264,900, which is $30,000 less than it was listed about a month ago, which is a sign of motivation.  It’s a three bedroom, two bath home with a large backyard and located on a cul-de-sac.  If you are interested in taking a look at it, give us a call at (805) 937-1764. 

Posted: May 10th, 2008 under Foreclosures.

For several months I have been warning Central Coast buyers about the challenges of pursuing pre-foreclosure properties, or short-sales.  There is an incorrect assumption that buyers can get a better deal on a property if they purchase it directly from the homeowner who is facing foreclosure.  Time after time, I’ve watched my clients face huge frustrations when trying to buy a home during this stage.  From a logical standpoint, you’d think that the short sale would be the preferred path.  The banks could cut their losses prior to foreclosing on a home and the homeowner can be spared the shame of foreclosure.  However, this scenerio has not played out as many thought it would

Too Many Cooks Spoil the Stew
An article in the April 17, 2008 Wall Street Journal clarified some of the reasons why Short Sales are anything but “short”.  Not only do the buyer and homeowner need to agree upon the sales price, but the mortgage-holder needs to be involved in that decision as well.  In addition, if the loan was “packaged into securities..the mortgage servicer must consider the interests of the investors who own the loan.  All of these “hoops” lead to long delays before a decision is reached.  The WSJ article indicates that, nationwide, short sale deals are difficult to close and that buyers end up walking away from the deals out of frustration. I am finding the same to be true in the Santa Maria and Orcutt area, where most of the foreclosure properties  I list are located. 

But the WSJ article did not mention something that I think gives even more reason to avoid short sales.  Buyers can save more money on properties that have already been through foreclosure.  Here is a perfect example: I recently sold a bank-owned home that had been through foreclosure.  Ironically, I was the listing agent for the same home several months earlier when the owner tried unsuccessfully to sell it as a short sale.  Prior to foreclosure, we received an offer that the bank rejected.  But the offer that the bank accepted AFTER foreclosure for the SAME home was LESS than the offer it had recieved while we were trying to sell the home as a short sale.  To me the moral of the story is clear:  it pays (in both time and money) to go after bank-owned foreclosures instead of short sales.

If you’re curious about how to buy a house in foreclosure, check out this article: http://www.homescentralcoast.com/tips_for_buying_foreclosures.html

Posted: May 2nd, 2008 under Foreclosures.

That is probably the question I am asked most these days. My personal opinion, after 20 years as a real estate agent, is that we seem to be approaching that point. Here’s why:

1. Over the last month, I have started to see a dramatic change in the way banks are treating their bank-owned properties (REOs). Just a few months ago, some of the banks with which I work were listing their foreclosures at prices higher than recommended. Now they are starting to list them for sale at prices under market value.
2. We are starting to see multiple offers on foreclosed homes. Last week, a client I represent was competing against 11 other offers for the same property. Fortunately, my client’s offer was the one that the bank accepted.
3. Multiple offers on foreclosures is driving the prices up. In other words, in order to secure the home they want, buyers are offering more than list price. That is a big sign that we may have reached bottom.
4. The federal government is very anxious to do things that will help the economy and reduce the large number of homes on the market. Interest rates are a big part of that, and they are very low right now. However, that can’t last forever. As soon as they go up again, we are likely to see a slowdown in real estate buying activity.
5. There are a lot of active buyers right now. People have a general sense that the time is right to jump back into the real estate market.
6. Sellers of homes that are not in any stage of foreclosure are very willing to negotiate terms of sale right now. They are willing to pay for things such as closing costs (normally something that the buyer and seller split) or provide an allowance for repairs.

If you are seriously looking to take advantage of the real estate opportunities out there right now, my biggest piece of advice for you is to meet with your lender and get a prequalification letter. Many of the banks who own foreclosures will not consider an offer without it. If you need some recommendations for experienced, reputable lenders, please check out our recommendations at http://www.homescentralcoast.com/mortgage-rates.html.

Posted: May 1st, 2008 under Foreclosures, Real Estate Sales Activity.

There was an article in last weekend’s Wall Street Journal (April 26-27, 2008) that caught my attention.  It talked about how difficult it is for first-time home buyers to qualify for loans, citing higher credit score requirements and additional costs such as private-mortgage insurance for those who don’t have large down payments.  The article had the usual “doom and gloom” tone to it that so many real estate-related articles have these days.

But as I read it, I remembered that similar requirements were in place when I bought my first home many years ago - dare I say how many?  (Hint: It was in the 1970s.) Precautionary measures and stricter requirments were the norm, and with good reason.  The mortgage mess that the country is in right now is a result of many ignoring the sound reasoning behind those guidelines.

That said, I don’t believe that homeowership is becoming a “nightmare” for “many first-time home buyers,” as the WSJ writer states.  First of all, there are more loans options available to first-time than the article depicts.  Secondly, I meet first-time buyers who have proven that they are responsible borrowers with excellent credit scores.  They are prepared to prove that they can handle the debt and believe that the sacrifices they will be making today will pay off down the road.   When it comes to home ownership, I think that we’ve just come back to the basics, and there is no confusion as to why.

If you are a first time home buyer, you may find our article, “Can I Afford to Buy a Home?” helpful.  You can check it out: http://homescentralcoast.com/first-time-home-buyer.html.

Posted: April 27th, 2008 under Real Estate Sales Activity.

In anticipation of reduced property tax revenues due to the weak stock market, increasing number of homes in foreclosure and declining home values, the Pismo Beach City Council voted to add a 1/2 cent increase in sales tax to the June Ballot.  If approved, the sales tax will be 7.75%, which is what it currently is in Arroyo Grande, Grover Beach, San Luis Obispo and Santa Maria.  According to the City Council, secure funding is needed to continue the work that has already begun for repair of sidewalks, streets, beach access stairs, and improving the storm drainage systems.

Posted: April 15th, 2008 under Area Information.

My wife and I have been exploring hiking trails in the San Luis Obispo area this spring and came across a fabulous one today. It’s above the Shell Beach Bluffs walking path, so you can park there and hike up the hill or start from Ontario Road in Avila Beach. There were lots of wildflowers, mustard and gorgeous, expansive views of Pismo Beach, Shell Beach and Avila.

Posted: April 6th, 2008 under Hiking.

My blog in September 2007 stated that 26% of the real estate listing inventory were either foreclosures, notice of defaults, short pays or REO’s. Now that percentage has increased to over 56%. The market is still bracing for a wave of new foreclosures by spring of 2008. Bank of America’s announcement of its plans to purchase Countrywide Home Loans is a good sign for the real estate market, in my opinion. It says to me that Bank of America is betting that the market is getting close to hitting bottom. Personally, I am seeing an increase in sales activity and hearing the same from others in the business.

On another very important note - mortgage interest rates just came down to as low as 5%.

Posted: January 10th, 2008 under Foreclosures.

The inventory of homes for sale have sky-rocked and there are a record number of properties that are in foreclosure.  Prices have dropped to levels lower than we’ve seen in years.  Sellers are offering all types of incentives to sell their properties. Real estate is “on sale.”
Many are predicting that prices will continue to drop, leading some experts to suggest that buyers should wait. But keep in mind, there will be no bell that goes off announcing that the market has “hit bottom”.  Once prices start to rise again (and they will), those who have been waiting to buy will jump back into the market, and competition for properties will increase.
If you are looking to purchase a home that you plan to own for a while, I believe that now is an excellent time to buy.  Interest rates are good, there are a lot of properties from which to choose, and sellers are motivated.  If you are concerned that prices will drop another 10%, then make an offer based upon that assumption.  You may be surprised at the result.

Posted: November 4th, 2007 under Real Estate Sales Activity.

The Santa Maria/Orcutt real estate market continues to feel the effects of the fallout of the sub prime loans of the previous years. As those loans are coming to maturity, we are seeing the percentage of our inventory increase in our valley. Quote from Joseph Holland, county clerk, recorder and assessor, states 85 percent of the counties foreclosures this year have been in the Santa Maria Valley. Multiple listing Service (MLS), states today 758 homes available with 285 of those being foreclosures, notice of defaults, or short pays, that’s over 26% of the inventory now. If you are looking at any of these possible situations arising, don’t wait until the last moment - you have options that should be explained in detail to you prior to it being to late.

Posted: September 20th, 2007 under Foreclosures.