How would you like to own a property that would allow so many different enjoyable features and activities such as:
1. Riding horses
2. Fishing for bass, bluegill, and catfish in an amazing one-acre pond
3. Enjoying a 1,000 sq. ft. shop for hobbyists
4. Living in a five-bedroom home with a downstairs area fitted with two rooms for guest quarters and another room to build a separate detached home!

House on top of a hill

What I just described would be an incredible haven on the popular coastal town of Nipomo California. This much-coveted, multi-feature property on the Central Coast of California is now available at an unbelievable low price under $900,000.

The residents of this retreat home can rise in the morning to pick and eat some fresh fruits from the lavish orchard of grapefruit (the best around), apples, and oranges. When lunchtime comes, they can also opt to walk down to the lake to catch some fish to grill up along with fresh avocados from the avocados orchard. From the gourmet kitchen windows, gaze at the over a dozen of mature coastal oak trees that surround the 10-acre valley or get your daily exercise through a horse ride right on site.

The Gourmet Kitchen

I haven’t seen a property with all of these incredible features in a long time. It is completely fenced and gated for your security and peace of mind. You will be impressed.

A safe, gated haven on Central Coast

Many of my clients are downsizing these days.  Having done that myself, I can honestly say -  it is nice to be able to donate or sell items I haven’t used in a long time.

But if you own a boat or a recreational vehicle, sometimes moving to a small home can create a challenge.  And some clients are moving to temporary situations and need affordable, safe and convenient self-storage.

So I want to let you know about the new self-storage in north county.  It has a very convenient location for those who live in Paso Robles, Templeton or Atascadero  and only about 25 miles from San Luis Obispo.  The rates are very competitive.

So if you need to store an RV, boat or looking for affordable self-storage units, check out the Self Storage Park in Templeton.

With the great deals on homes on the Central Coast comes a certain frustration level in trying to purchase one. Buyers are finding a lot of unwanted competition when making an offer on a home. It is not unlikely to have 10-20 offers submitted on the same property. This is due to the lack of inventory of homes for sale and the great bargains available through bank-owned properties (REOs and foreclosures.)

How can you increase your chances of having your offer accepted by the bank who owns the foreclosure you want?
1. If possible, pay cash. Cash buyers are considered “gold” to the lender and have the strongest chance of being accepted. Unfortunately, this makes it very difficult for first time buyers and buyers with little down payment. But don’t let that discourage you, because things could fall in your favor. We have been able to get offers accepted for our first-time buyers.
2. If you need a loan, get pre-qualified for it before you try to make an offer. It’s absolutely necessary.
3. Be willing to offer more than the listed price. With this much competition, foreclosures are often selling for more than the listed price. Be realistic with your offer. Don’t expect to get a “deal” on the “deal” when you’ve got this much competition.
4. Find an agent who knows how to negotiate, who has experience with bank-owned properties, knows how to advise you, and be loyal. Here’s why: Real estate agents are trying to make a living just like everyone else. It makes sense that they are going to work hardest for those who they know are loyal to them as it means they will be compensated for their efforts.

As you may know, Obama’s stimulus package includes help for home owners who may be facing foreclosure or who are having difficulty making their mortgage payment. If you are wondering if you qualify to refinance or a loan modification program, check out this link that walks you through some basic questions regarding your situation:
Do I Qualify?

It is great time to buy a home, but not such a great time to sell one.  As a result, many smart investors are taking advantage of declining real estate prices by buying a “move-up” home and turning an existing home into a rental.

If you are considering this option, be aware that new guidelines are coming into effect that makes it more difficult to purchase a home as a primary residence with the intention of keeping and renting an existing residence.  The reason behind the new guidelines is due to what is now referred to as “Buy and Bail.” It is becoming a huge problem and FHA, Fannie Mae and Freddie Mac are dedicated to putting a stop to it. Buy and Bail happens when a borrower purchases a new primary residence and then allows an existing home to go to foreclosure once escrow closes on the new residence. 

To reduce the number of “Buy and Bails”, lenders are requiring that:

•You will need to have a minimum of 30% equity in your existing home
•You will need a copy of your new Rental Agreement on your existing residence and a copy of the tenants deposit check
•You will need to demonstrate the capacity to repay and be current on any debt obligations.

What if you do not have 30% equity in your existing home but still wish to
purchase a new primary residence?
The good news is you can still purchase but you will need to:
•Provide a down payment. The amount depends on the particular loan program in which you are applying for.
•Be able to qualify for both payments. The existing payment and your new proposed payment.
•Have sufficient funds left in the bank as reserves for both properties.

Although certainly more stringent, these steps are needed to insure the long-term health of the real estate market and the long-term health of your investment.

Aimee Ritz,Town & Country Home Loans & Shea Hutchinson, Century 21 Hometown Realty

Would you love to own a second home or condominium on the Central Coast but question whether you’ll use it enough to warrant the expense?  You may be interested in a condo hotel (also known as condotel.) What is a condo hotel or condotel?  Think of it as a hotel comprised of condominiums instead of a bedroom and bath.  It is operated as hotel or vacation rental but most or all the units are individually owned.  Most hotel guests never know that different individuals own each unit.  In some condotels all units are identical while others will allow the individual owners to personalize their units. (One of our Central Coast condotels allows each unit to be personalized).

Condotels make great second or vacation homes while giving you the benefit of someone helping you make the payment.  They are not sold as a primary residence due to the fact that the owner’s usage is normally limited because each unit is expected to be included in the hotel’s inventory of rentable units.  But one of the great benefits of this type of unit is that it is maintained and rented out for you, just like any other room in a hotel.  You don’t have to worry about advertising, collecting rent, cleaning or any of the stress that normally goes with having a vacation rental.  As owner, you’ll receive a percentage of the revenue that is generated, so you’ll want to do your research to determine what amount of income you can realistically expect.

Some of the advantages of this type of ownership:

a) Rental revenue to offset some of your ownership expenses (in some cases maybe all your expenses.)
b) A worry-free vacation home in a great location.
c) Hassle free ownership; no landlord issues.
d) Own instead of rent.

Some disadvantages:
a) Pets may not be allowed.
b) Your unit is subject to the same trends in the real estate market that affect hotels.
c) Your unit may not always be available on short notice (but most manager’s will try to work with you).

We are fortunate to have two hotel/condotels on the Central Coast.  And remember location, location, and location when purchasing this kind of unit.  We have one condotel that sits right on the sand in Pismo Beach and one that is only one block from the water in Oceano.

If you are interested in finding out more about condo hotels on the Central Coast, well be glad to answer your questions and help you explore your options.

Nancy Tucker, Realtor Associate
HomesCentralCoast.com Team
   

I continue to see below market pricing of foreclosure properties in the Santa Maria and Orcutt area resulting in a large number of offers which drive up the price.  Last week, a bank owned property came on the market in Old Orcutt which was listed at $189,900.  The previous owner bought the property for $469,500 in September 2004 and it was subsequently valued at $665,000 in December 2006, per a title search.  The property is over 2300 square feet on a 10,000+ square foot lot, has a swimming pool (in disrepair) and has a number of upgrades, including kitchen and bath.  It still needs a lot of work and is an ideal property for a contractor or handyman.  I showed it to several buyers and we had to wait in line for our turn.  There were multiple offers on the property and we won’t know the final price until it closes escrow, but I can assure you that it is going well over the asking price.

The LA Times published an interesting article today featuring a Santa Maria family whose home is going into foreclosure. I think the article gives a good example of how many people ended up finding themselves in this situation. The article also notes the large number of homes in foreclosure in the Santa Maria area.

If you’d like to read it, here’s the link:
Santa Maria house bought with no money down goes into foreclosure

Congress may soon be passing a bill that will bring relief to struggling homeowners.  The current proposal will insure up to $300 billion in loans that will be refinanced in order to help some who are facing foreclosure.  One major criticism I’ve heard about this plan is whether or not borrowers who owe more than the value of their home deserve to have their loan reduced and to gain instant equity in their property.

I am in support of this bill and believe that it is good for the Santa Maria area, which currently has the most number of foreclosures and short sales on the Central Coast (and many more to come.)  There are many home owners who have shown responsible decision making regarding their finances and who were simply victims of bad timing when they purchased their home.  I believe these homeowners deserve to own a property at a value that someone else would pay if it were sold in today’s market. 

Making provisions that allow financially strained homeowners to keep their homes is good for our community and neighborhoods.  Most distressed properties are left vacant, leaving yards and other features without care.  Instead of turning Santa Maria neighborhoods into ghost towns, this bill could be the “second chance” that many need to help boast confidence and restore pride in home ownership.