Homes Central Coast Real Estate Blog

Best Strategy to Get Your Offer Accepted for Bank Owned Real Estate

Eddie Stanfield — Mon, 21 Sep 2009 17:18:32 +0000

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.

Want Lower Property Taxes? You May Be Eligible For A Reduction

Eddie Stanfield — Thu, 10 Sep 2009 18:03:33 +0000

Everyone knows that values have decreased for real estate in the state of California. But not everyone knows that you can challenge and possibly reduce your property tax bill.

San Luis Obispo county’s website offers clear instructions regarding how to go about the process of completing a “decline-in-value form” through the San Luis Obispo County Assessors Office. They even provide a “decline in value estimator tool” to help you determine if you are eligible.

I found Santa Barbara County’s website not as clear, but the process exists, none the less. In Santa Barbara County, you are required to complete a “Request for Informal Review” , a form that is hidden somewhere near the bottom of this page of their website.

According to the “Decline-in-Value” Application Form,”Section 51 of the California Revenue and Taxation Code authorizes the assessor to lower the value of any real property where the assessed value is greater than the current market value as of January 1 lien date.”…Application filed before September 15 are also eligible for an assessment appeal with the Assessment Appeals Board.”

If you purchased your home after 2005, chances are good that you may be paying more than your share of property taxes, so it is definitely worth checking into.

-Eddie Stanfield

Home Rentals and Service Dogs

Eddie Stanfield — Tue, 25 Aug 2009 16:25:32 +0000

Ever hear of a service dog for a Diabetic?

Until today, I hadn’t. Man’s best friend can actually be trained to help one with their diabetes problem, unbeknownst to me. Certified and monitored through The American Disabilities act of 1990, dogs are trained a specialized gift to help their masters, monitoring a persons low blood sugar count through their keen sense of odors. I found this to be true first hand, as a home rental I oversee has a lease written into it stating, no dogs allowed. Well, this weeks tenants showed up with a dog, immediately waving a red flag. I visited the property and knocked on their door to diplomatically ask them if they have a dog on the grounds and learned that was a service dog for one of the guest’s diabetes. They showed me paperwork which explained that the American Disabilities Act overrides any lease agreement by law and is practiced heavily in California.

This dog is trained to be with its owner most of the day, especially during the night during sleep, right beside its master. Evidently, the dog has a sense of smell that triggers its ability to wake up the master or anyone else in the bed if the levels fall below a certain level – incredible! I also learned that the dog is allowed to travel in planes and trains, again sitting right next to its owner. Restaurants, stores and hotels must also abide by this disabilities act. This particular dog owner stated the dog is not really a pet, as it’s always working (like us) and treated differently.
Next time I see a dog in a restaurant or sitting next to an owner inside a plane, I will have a much better appreciation of another value of man’s best friend.

Avila Beach Real Estate Update

Eddie Stanfield — Tue, 04 Aug 2009 01:49:19 +0000

Avila Beach real estate values have jumped substantially since the town was rebuilt. Beginning prices in Avila currently start at $650,000 for a studio, all of 615 square feet. If you’re in a different income bracket, you can spend $2,995,000 for a gorgeous custom home atop the town with incredible views. There are approximately 23 properties listed today (August 3, 2009), including 8 fractional properties. If you don’t know what fractional properties are, contact or call me, it’s a whole different ball game. I studied fractional ownership last year; it’s just now hitting the central coast, but has been popular in different parts of the states and other countries.
I still believe Avila Beach is one of the gems of the Central Coast, whether you are looking for a place to live or vacation.

Enjoying Avila Beach

Eddie Stanfield — Tue, 04 Aug 2009 01:10:26 +0000

Avila Beach is not the same town it was years ago, its better. I realize to some this is not true, they loved the old Avila with its old shops, history and character. But as I rode my bike through today, I was really struck with a deep appreciation for the wonderful little beach town that has been created. With all the attractions, hotels, eateries and new character, Avila has so much to offer the locals and the tourists.
One of my favorite places today was Joe Momma’s, a coffee house, spa and hotel. The coffee is great and the units (referred to as a semi-B&B) feature contemporary oceanfront rooms, perfect for small families or a romantic weekend. They certainly have my recommendation. With the town rebuild comes more conveniences; I noted the Avila Mercantile & Deli, which reopened in May under the new ownership of the very popular Woodstone Marketplace. This store is awesome, where one can eat breakfast, lunch or dinner, shop for your daily necessaries and beach stuff plus more. The store has really put together what people of this small community need, I applaud them.
For the diners, everything is just a short walk away. I have personally dined at most of the restaurants there, its wide open to your taste buds, fast foods to fine dining.

-Eddie Stanfield

New Home Projects on the Central Coast

Eddie Stanfield — Wed, 29 Jul 2009 06:10:58 +0000

I read an article this morning in the San Luis Obispo Tribune stating that new home sales are on the rise nationally. Unfortunately, it’s hard to believe that’s the case on the Central Coast. Yesterday I drove from Orcutt & Santa Maria to Paso Robles to get an idea of the current status of new home construction; it was somewhat bleak at best. As I drove through each town, numerous subdivisions were left for dead, mothballed or in foreclosure. Very few were able to weather the storm of this economic downfall. Sad to see all the subdivisions with lots sitting idle, curbs and cutters already installed just waiting to create someone’s American dream of ownership. However, the Tribune article shared a glimmer of hope to the future. Across the nation, new home sales rose at the fastest clip in more than eight years! Understandably, part of this spike was due to the fact that values continue to fall, forbidding contractors to leap back into the market as their margins of profit marginal at best. The contractors of these subdivisions still have unsold inventory to sell, and at the current sales pace, there are enough new homes existing to last nearly nine months. Between not being able to secure money from the banks and not being able to sell what they already have, we are facing a notable challenge for this situation to change dramatically in the next year or so.
Many economists insist with this pace the worst of the housing recession is behind us, having seen three straight months of substantial sales. But this is from a national perspective, with the Midwest the strongest at a 43% increase in sales, 23% in the west and 29% in the northeast. They declined slightly in the south. I see the biggest obstacle to new home sales is the glut of foreclosures. Between the low prices and the tax advantages for first time buyers, resale homes are going to continue to dominate the market on the Central Coast. Let’s all hope this trend of rising sales continues for the good of America.

-Eddie Stanfield

Foreclosure 90-day Moratorium Starts Today in California

Eddie Stanfield — Tue, 16 Jun 2009 03:51:34 +0000

In February, Govenor Schwarzenegger signed the California Foreclosure Prevention Act, which requires banks to try to work with the homeowner by modiying the terms of the loan before starting foreclosure procedures. There are a number of exceptions to this rule. Here’s an article that was released today: California’s 90-day foreclosure moratorium starts, sort of

Not sure how this will impact the number of foreclosures on the market. Inventory of foreclosed homes for sale in Santa Maria and throughout the Central Coast is low, although we keep hearing that there will be many more on the market soon.

Help to Central Coast Home Owners Who Are Facing Foreclosure

Eddie Stanfield — Thu, 09 Apr 2009 04:15:48 +0000

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?

Tax Breaks for Buyers of New Homes in Orcutt, Santa Maria and the Central Coast

Eddie Stanfield — Sun, 05 Apr 2009 01:25:54 +0000

The state of California has allocated $100,000,000 in tax credits to those buying a brand new (never been occupied) home between March 1, 2009 and March 1, 2010. You do not have to be a first-time buyer to qualify. There are some beautiful new home construction projects in Orcutt, Santa Maria, Lompoc and Nipomo and they are offering a variety of incentives to buyers right now. If you would like a list of the projects and more information, feel free to contact us.

For more information about this tax credit, visit the State of California Franchise Tax Board website.

Santa Maria Investment Property Remodel

Eddie Stanfield — Thu, 31 Jul 2008 13:59:34 +0000

I purchased my first Santa Maria investment property in June. A large tri-level 3 bedroom townhouse with lots of mid-century modern character that needed a new kitchen. After looking at several kitchen cabinet suppliers I choose IKEA because of the modern look and low price. In exchange for the low price you do the installation yourself. IKEA supplied an instructional CD and poster illustrating each step of the process of installing the cabinets, sink and counter tops. After designing my kitchen on the IKEA web site, which was really easy, I was able to print my list of needed fixtures and trekked down to LA to place my order. The IKEA associate placed my order from my list but had some trouble entering some compents and was interrupted several times by other customers asking questions. My order arrived on time. A large pallet wrapped in plastic with probably 50 boxes on it. I began building the frames for the cabinet. The instructions are illustrated and after a little practice I got the hang of it. You do need to really follow the illustrations to the tee.

Unfortunately, I discovered I was shipped the wrong corner cabinets. I called IKEA and was first told I would need to drive the wrong ones down to LA for an exchange. After speaking to a manager, IKEA agreed to deliver the correct cabinets at no charge for delivery. That made sense to me because I had already paid for delivery and I live 200 miles away from IKEA. Now with the correct corner cabinets I was able to get the frames done. It was very difficult fitting the corner cabinets with the other cabinets and no instructions are given for this. The next task was also very confusing. There is no instruction on witch door panel goes with witch frame. It was a lot of trail and error. In the end I discovered 3 doors were not ordered. Another call to IKEA resulted in bad news. The 3 doors that were not ordered are discontinued. Apparently the person that placed my order failed to notice this, hence the trouble he had placing the order, and didn’t bother to tell me. So as of today, IKEA is attempting to find these 3 doors for me. I learned while IKEA makes the process of designing the kitchen easy, you must make sure the person entering the order knows what they are doing.

I have tenants arriving in 10 days and this could be a major problem getting the condo finished. I will let you know how IKEA resolves this on my next blog.

Erik Schultz, Realtor Associate
Homes Central Coast Team
Century 21 Hometown Realty