San Diego Homes, Foreclosures, Short Sales Real Estate Agent

San Diego Property Tax… how to get your base lowered.

admin — Sat, 08 Aug 2009 00:50:15 +0000

Now that we are pretty much at the bottom of the market, I get asked all the time by clients and friends that own San Diego Real Estate about how to lower their property tax bases on homes that are currently valued much too high by the San Diego Tax Assessor. Now many of you may have gotten notices of reduced base values in the mail from the assessor’s office. However, there’s a very good possibility you could get it lowered further.

The process is very simple. Ask a local real estate agent, most preferrably the one that helped you buy the property, pull recent comps. Choose 3 comps that are comparable to your property but that demonstrate the lowest possible value base. Download the application form from the San Diego Tax Assessor’s site. Download the “Application for Change Assessment” form. Print, fill out in entirety and mail in to the San Diego Assessor’s office. The time period in which to submit an appeal is from July 2nd to November 30th for the 2009-2010 tax year.

Tara Steinke

Coldwell Banker

619-384-6014

SDRealtor.Tara@gmail.com

Where has the human aspect gone in buying a home?

admin — Tue, 04 Aug 2009 22:55:04 +0000

I wanted to comment on this. Because buyers, sellers and all industry people need to acknowledge that the human apsect, the “American Dream”, has been pretty much stomped for many people out there. The San Diego Real Estate market and industry… and frankly the entire California market I would say… has morphed into a difficult, un-feeling, jammed, and dis-jointed beast. Honestly…. from the front lines of the industry I can say that, sadly, the BANKS are running this show now. I would guess that between 75-85% (very possibly more!!) of our current inventory is made up of short sales and foreclosures. Which, you guessed it, require a bank representative to approve a sale. We agents are losing our capability to deliver a true fiduciary service to our clients. The good agents are fighting tooth and nail to do so. Today is the time of the REO and Short Sale offices that WON’T even take a phone call from a buyer’s agent! Many have convoluded answering systems that don’t have the “press zero to speak to an operator” option. So we’re left emailing constantly. And then we have clients, friends and relatives that are facing a very near mortgage interest adjustment meaning much higher payments or a true hardship (I know about a dozen people who’ve been layed off or received reduced hours) and the banks say don’t qualify for a modification.

I still humanize every offer I submit, writing a concise yet thorough cover letter detailing my client’s situation and providing a few personal details about their family, hopes in home ownership and intent. I know there’s a human being somewhere that will see the offer and I just hope to spark some sense of compassion… a reflection of how much home ownership (or any other dream of prosperity) has possibly meant to them and their families. Let’s bring the human aspect back into real estate…. I do believe it will take some time…. the time needed to relinquish the current corporate grasp that is currently choking the industry.

Tara

San Diego Market…. The localized markets.

admin — Mon, 20 Jul 2009 21:39:41 +0000

In San Diego Homes sales we are still seeing extreme localized markets as well as major differences in level of activity within different price points. Downtown and much of the metro area we continue to see a number of foreclosures and a domination by short sale listings. The lower price range ($400k and lower) is still hot with multiple offers and shorter marketing times. The higher price ranges ($800k and higher) are moving extremely slow and deals are to be had on the short sale listings if you are willing to wait it out. In inland North County, many of the homes priced in the mid-$500s and lower are also flying off the shelves. Condos priced in the mid-$300s and lower are also hot, hot, hot. But the higher end product, $700k+ is a much slower paced market. In the always desireable but high priced areas along the coast, like Del Mar and Solana Beach (average sale price of $2.2MM over the last 3 months) the inventory movement is slow as with most any high end market and tracking at about a 14 month absorption projection. Ever popular Carmel Valley (just inland from Del Mar), we are seeing a$950k+ average sale price over the last 3 months and a very fast absorption projection of less than 8 months. Average days on market for sold listings is 60 days! So this market is definitely simmering in the summer months. Moving south to desireable Eastlake area of Chula Vista (where foreclosures are pretty prevalent and pricing was hit hard in the decline), the detached home market is hot due to the low average sales pricing of $409,000. With just over 370 active/contingent listings this market is tracking at about a 3 to 4 month absorption rate! This is a solid indicator of a strong market that is producing competition among buyers.

As can be seen by the MLS numbers, many localized markets are strong here in San Diego. We are starting to see some appreciation in pricing in a few of the lower end markets. Although slight, it is an indicator that we seen and passed the bottom of the market in these localized markets.

San Diego Real Estate…. Brief snapshots of some of our localized markets.

admin — Wed, 15 Jul 2009 04:39:56 +0000

In San Diego Homes sale trends we are still seeing extreme localized markets and major activity differences amongst price points. Throughout San Diego we continue to see a number of foreclosures and a domination by short sale listings. In downtown condos, the lower price range ($400k and lower) is still hot with multiple offers and shorter marketing times. The higher price ranges ($800k and higher) are moving extremely slow and deals are to be had on the short sale listings if you are willing to wait it out. In Inland North County, homes priced in the mid-$500s or lower seem to be flying off the shelves. Condos priced in the mid-$300s down are also hot, hot, hot. But the higher end detached property, $700k+ is seeing a much slower paced market. In the desireable but high priced areas along the coast, like Del Mar and Solana Beach (average sale price of $2.2MM over the last 3 months) we see slow movement as with most high end markets and about a 14 month absorption projection. Ever popular Carmel Valley (just inland from Del Mar), is showing a$950k+ average sale price over the last 3 months and a respectable absorption projection of less than 8 months and average market time for sold listings is 60 days! So this market is definitely simmering in the summer months. Moving south to newer Eastlake in Chula Vista (where foreclosures are pretty prevalent and pricing was hit hard in the decline), the detached home market is flying of the shelves. With less than 380 active/contingent listings the market absorption rate is at less than 3 months! The condo market is also hot here.

The synopsis… the inventory is selling. And throughout most of San Diego we are seeing list/sale price ratios of upwards of 95%. Meaning low balling is not the norm out there. Some of the most competitive localized markets are starting to see the remnants of slight appreciation. This is occurring mostly in the lower price ranges as many first-time home buyers that were waiting in the wings are jumping into the market.

Moratorium on Foreclosures for California Real Estate

admin — Thu, 09 Jul 2009 22:43:04 +0000

A new state law, that was passed back in February, took effect on Monday June 15th. The state of California is imposing a 90-day moritorium on housing foreclosures that is intended to make lenders try harder to keep borrowers in their homes. Loan companies supposedly must prove that they made an attempt to modify before foreclosing. However, most of the big lenders likely have a program in place and can apply for an exemption.

So it is unclear as to how many homeowners will actuall benefit from the new law. But it will likely push the smaller lenders to fall in line and work more diligently with their delinquent borrowers.

Moratorium Guidelines:

Applies to first mortgages from 2003 to 2007
The loan must be on your principal residence
Borrower must have received a notice of default
Current loan servicer does not have a modification program in place

This may or may not have a significant effect on the San Diego Real Estate market availability as far as foreclosed properties coming on the market. I feel that the extra cost that banks must incur is more of a deterrent to foreclosure than the state mandated moratorium. It is often in the bank’s best interest to offload the property rather than spending $50,000+ to hire a trustee and foreclose.

Buyer’s Frustration in San Diego home purchase…. we’re not in Kansas anymore.

admin — Thu, 02 Jul 2009 02:52:36 +0000

And we’re not in a buyer’s market in San Diego Real Estate. We’re also not in a seller’s market. We’re in a bank-ruled market. Now, the banks aren’t the winners here. Don’t get me wrong. Even if a bank forecloses, they will be out thousands and thousands of dollars due to the overly inflated prices of 2004-2006. In fact, most banks have adopted a moratorium (fancy word for “suspension of activity”) on foreclosures because it typically costs them $50,000+ to hire a trustee and foreclose. So, that means banks will be working harder to get short sales negotiated favorably. But still, short sale negotiators are ordering BPOs (Broker Price Opinion = Appraisal) and demanding they bring in the appraisal price and often require someone (buyer, seller, agents) to throw in additional monies towards back HOA dues and other expenses. So, people, we are in a BANK-RULED market where terms and pricing is being brought outside the negotiating power of agents. As agents, we need to be aggressive and fight for our clients irregardless of whether we’re representing buyer or seller.

As I always say, the good news is that pricing is so much lower in today’s market. BUT, there are price points where we are seeing some appreciating (take a look at the $400k and lower markets in any desireable location) and in those markets its because of multiple offers and buyers fighting to get into escrow on a property. We’ve seen and passed bottom folks. Its go time.

Tara

What’s the real story on San Diego real estate?

admin — Mon, 29 Jun 2009 07:04:54 +0000

Those of us that own San Diego real estate, and those that are looking to buy their first home, have all heard the multitude of opinions out there regarding where our local market is at right now, most notably asking “Are we at bottom???” “Is not the time?” We can speculate all day long as to when the bottom of the market will (or if we are seeing it now). But the best way to gage what might possibly be ahead is to look at the numbers.

Three years ago we were looking at 23,000 homes and condominiums on the market for sale. Today that number has seen pretty much a 50% reduction with only about 13,000 units on the market in May. And three years ago many of those units for sale were being sold by speculating investors looking to turn a quick buck. Today over half of the units sold are either foreclosures or short sales. Those people who don’t have to sell are waiting it out until they see some normalcy return to the market.

In addition, the foreclosure / short sale market is gradually running out of product and the availability gets picked over very quickly. It is now common place for “decent” properties to draw 15 - 20 full price offers quickly after being placed in the MLS with frenzied bidding very often going over the asking price. One year ago, the average monthly resales ranged from about 1200-1500 units. Today it is more than double that! So the inventory is getting eaten up with much lower pricing in some localized markets. Case-Schiller reports state that our residential real estate values have dropped more than 40% in the last two years. But that is only factoring in detached homes that have sold twice in a short period of time… which are very likely foreclosures and give a skewed snapshot of the market. For most homes, the decline is significantly less than that and in some cases values have declined less than 10%. It just depends where you live.

As the San Diego County population continues to grow (by some 40,000+ people a year) and the job market gradually strengthens, eventually we will see a significant supply shortage without enough housing to meet the needs of the populace (when you take into account that building has decreased to a point that will now allow enough supply by the time things do catch up). This may occur as soon as three years from now. If you are thinking of jumping in… jump now.

Drawbacks to buying REO / Foreclosure Real Estate?

admin — Wed, 24 Jun 2009 07:09:45 +0000

This is a question that agents get asked A LOT by our buyers, especially first-time buyers.

There are several “challenges” you need to be aware of when buying bank owned real estate (aka REOs & Foreclosures):

The seller acquired the property via foreclosure and therefore has no prior knowledge as to the property history or its current conditon (the asset manager doesn’t ever even see the property). And because of this, the selling bank is exempt from providing the typical seller disclosures and the burden of proof (inspections!) lies solely with the buyer.
The seller RARELY will entertain any repairs, especially major repairs. This can really become an issue for FHA or VA buyers because those programs have strict underwriting guidelines that may prevent the buyer from being able to pay for certain repairs. Although, there are creative ways to work through those.
Short contingency periods. The “contingency period” is the approved amount of time inside of which you must complete all inspections and obtain full loan approval. After removing contingencies you are essentially saying you will complete the transaction or forfeit your security deposit.
PASSIVE (or automatic) removal of contingencies. Most bank addendums call for contincies to be removed automatically at the lapse of the stated/agreed to contingency periods WITHOUT written removal unless you’ve submitted a request for repair or backed out. After that time the bank can AND WILL retain your good faith deposit if you back out.
Most REO listings receive multiple offers. Best bet is to, be informed as to the comps and approximate current market value of the property, and go in at your highest and best right off the bat.

Have an aggressive agent. This is your assurance that all bases are being covered and you have a strong advocate out there negotiating on your behalf! Having closed many REO transactions this is based on my experience in the San Diego Real Estate market but it is applicable across the country.

-Tara

Are Sellers of Foreclosed Homes Offering Warranties?

admin — Sun, 05 Apr 2009 00:00:03 +0000

This is a great question, and it would depend on the selling bank you are dealing with. I have represeted buyers in REO purchases recently and have found the banks willing to cover a basic home warranty plan from reputable company. Your agent does need to write that into the purchase offer. I would like to clarify that the bank is not extending a warranty on the property. They are simply purchasing a warranty service provided by a 3rd party company. This does not extend any liability regarding the condition of the property to the selling bank.

Be sure to read the policy guidelines from the chosen home warranty provider to be clear what level of coverage you are receiving. Have your agent help you understand them clearly.

I hope that helps clarify somewhat.
Best of luck!

Tara

Tara Steinke
San Diego Real Estate Professional
Residential Sales and Appraisal
619-384-6014
mysandiegoagent@gmail.com