Well here's the truth America! Your favourite realtor hasn't been in the real estate business long! To be truthful it's only been about 2 years and a few months...that little time span is enough to tell you that it's been a struggle and I have learned so much in such little time. I recently took a regular sale, yes that's right I didn't stutter a regular seller who can choose to sell his home if the price is right without have a bank tell him what's right or wrong. Well before I took this listing, I was working and still continue working with buyers. These buyers were overly qualified in the sense that they were definetely able, ready, and willing! With 20% down payment, and making offers based on comparative market analysis with criteria like 3 months solds, 1/2 mile radius, and the best comparables for the property and financing. One of my clients wrote 7 offers over the course of four months till we got one accepted. Another wrote 5 offers in one month and got accepted the 5th time. Here's where it get's fun the most recent client wrote a total of 17 offers over the course of 7 months, of the 17 offers we made 2 offers got accepted but we cancelled on one due to vandalism on the property and the bank not wanting to pay for the repairs. Now I have a regular sale listing and within 4 days of being on the market I have a total of 24 offers! I listed the property at $299,000 and have received offers at over 10% of the asking price. This home will go into escrwo after only being 10 days on the market! A lot of the agents are telling me that they hate this game that they keep getting into, which is multiple offers on one listing. Not only are the offers good and highly qualified but the main problem is there is a lot of dual agent representation going on. I have heard agents tell me of a time when you would just write an offer for the list price and then open escrow. Well the only buyers market I know is multiple offers, no return calls from agents, weird requirements from listing agents in regards to financing. At the end I am a surviving real estate agent but surviving of what? I guess a false belief or mystery that was once flashy cars, expensive suits, and lavish lifestlyles...... till that market comes, don't expect me to cry cause you have 7,825 offers on the second day you listed your cash only bank owned property, the only thing you can expect is a greatly written offer by an agent who has never seen those brighter days you all talk about! Happy to be in a thriving real estate market!

 

-Benny Chavez

Without taking much time out of your day I would like to give an update of my local market here in Sunny Southern California. Buyers are off and running especially since prices were slashed last month. We went from $390,000 for a 3 bedroom 2 bath in March to $373,000 in April. With only 50 homes sold in March and 77 being sold in April, I guess you could say that inventory is getting bought up. I would also like to add that I am seeing more regular sales (not distress) and also less bank owned homes. That is not to say that some home owners are not facing foreclosure, we have buyers in the city of La Puente and we are seeing 80 short sales for every 20 bank owned properties. I expect to see more success on short sales= meaning banks are going to aid sellers in distress in getting their homes sold. So to keep it simple STEADY is more the kind of market we are in. It is definetly not going down and not going up just a steady tide till inventory is deplet  

Turns out prices are dropping! Yes they have definetely dropped..... but sales have drastically increased

take a look for yourself!

 

                                  DOWNEY HOME SALES REPORT FEBRUARY 2009 

Single Family Sales - Residential Other Statistics Price ClassBedrooms   2 OR Less34 Or More Condo SoldResidential ActiveCondo Active Totals10 21 6  3 253 37  Average Price304 398.4 508.3  312 582.6 246  Median Price310 365 390  360 472.5 250 

 

 

$0 - $99,999	1	0	0		0	0	0
$100,000 - $149,999	0	0	0		0	1	8
$150,000 - $199,999	0	0	0		0	0	6
$200,000 - $249,999	0	1	0		1	7	2
$250,000 - $299,999	2	2	0		0	23	11
$300,000 - $324,999	2	2	0		0	16	1
$325,000 - $349,999	1	4	1		0	18	1
$350,000 - $374,999	2	4	1		2	14	6
$375,000 - $399,999	2	1	1		0	24	0
$400,000 - $424,999	0	0	1		0	10	1
$425,000 - $449,999	0	1	0		0	13	1
$450,000 - $474,999	0	0	0		0	7	0
$475,000 - $499,999	0	1	0		0	19	0
$500,000 - $549,999	0	2	1		0	9	0
$550,000 - $599,999	0	1	0		0	19	0
$600,000 - $649,999	0	2	0		0	10	0
$650,000 - $699,999	0	0	0		0	8	0
$700,000 - $749,999	0	0	0		0	4	0
$750,000 - $799,999	0	0	0		0	8	0
$800,000 - $999,999	0	0	0		0	23	0
$1,000,000 - $1,999,999	0	0	1		0	17	0
$2,000,000 and over	0	0	0		0	3	0
(In Thousands $)
(In Thousands $)
	Time on MarketUNITS Total Units Sold40  Average Market Time50.2  1-30 Days 19  31-60 Days 7  61-90 Days 2  91-120 Days 2  121-180 Days 5  More than 180 Days 2	Types of FinancingUNITS AITD 0  ASSM 0  CONV 26  CASH 5  FHA 6  CAL 0  LANDC 0  OTH 2  OWN 0  PRVT 0  TRUST 0  VA 1  NO FINANCING REPORTED 0  TOTAL 40

                                        DOWNEY HOME SALES REPORT MARCH 2009

Single Family Sales - Residential Other Statistics Price ClassBedrooms   2 OR Less34 Or More Condo SoldResidential ActiveCondo Active Totals9 30 9  2 253 37  Average Price362.8 373.8 651.1  336.6 582.6 246  Median Price375 355 660  330 472.5 250     

$0 - $99,999	0	0	0		0	0	0
$100,000 - $149,999	0	0	0		0	1	8
$150,000 - $199,999	1	1	0		0	0	6
$200,000 - $249,999	1	1	0		0	7	2
$250,000 - $299,999	1	3	0		0	23	11
$300,000 - $324,999	1	3	0		0	16	1
$325,000 - $349,999	0	6	2		2	18	1
$350,000 - $374,999	0	3	0		0	14	6
$375,000 - $399,999	1	3	0		0	24	0
$400,000 - $424,999	0	3	1		0	10	1
$425,000 - $449,999	1	0	0		0	13	1
$450,000 - $474,999	2	4	0		0	7	0
$475,000 - $499,999	0	0	0		0	19	0
$500,000 - $549,999	0	0	0		0	9	0
$550,000 - $599,999	1	3	0		0	19	0
$600,000 - $649,999	0	0	1		0	10	0
$650,000 - $699,999	0	0	2		0	8	0
$700,000 - $749,999	0	0	2		0	4	0
$750,000 - $799,999	0	0	0		0	8	0
$800,000 - $999,999	0	0	0		0	23	0
$1,000,000 - $1,999,999	0	0	1		0	17	0
$2,000,000 and over	0	0	0		0	3	0
(In Thousands $)
(In Thousands $)
	Time on MarketUNITS Total Units Sold50  Average Market Time57  1-30 Days 24  31-60 Days 7  61-90 Days 9  91-120 Days 4  121-180 Days 3  More than 180 Days 3	Types of FinancingUNITS AITD 2  ASSM 0  CONV 27  CASH 3  FHA 17  CAL 0  LANDC 0  OTH 0  OWN 1  PRVT 0  TRUST 0  VA 0  NO FINANCING REPORTED 0  TOTAL 50

 

THINKING OF BUYING? DON'T THINK TOO LONG..... RIGHT NOW YOU KNOW PRICES ARE LOW WHY NOT

BUY WHEN YOU KNOW INSTEAD OF RUSHING TO BUY WHEN YOU DON'T!

COMPETING SELLERS CAN LEARN QUITE A FEW THINGS FROM BANKS WHEN LISTING IN TODAYS MARKET:

 

• BECOME THE LOWEST PRICED COMPARABLE IN A 1/2 MILE RADIUS

 

• TO ARRIVE AT PRICE DO A COMPARATIVE MARKET ANALYSIS INCLUDING 3 ACTIVES, 3 PENDINGS AND 3 CLOSED FOR THE LAST 3 MONTHS TO A MAXIMUM OF 6 MONTHS

 

• DO USE BANK OWNED COMPARABLES, DON'T USE SHORT SALES

 

• SPENDING A BIT OF MONEY ON COSMETICS LIKE PAINTING AND REPLACING THE CARPET CAN WORK WONDERS FOR THE HOME

 

• LIST LOW SELL HIGH (IN TODAYS MARKET IT TAKES 42 VIEWINGS TO EVERY OFFER)

 

• ACCEPT THAT YOU HAVE MADE GREAT UPGRADES TO YOUR HOME BUT LET THE MARKET DECIDE WHAT THE HOME IS REALLY WORTH

 

• BANKS HAVE NO ATTACHMENT TO THE ASSET (HOME) THEY, LIKE ARE LOOKING TO NET THE MOST PROFIT

 

• CASH OFFERS DON'T DESERVE HUGE DISCOUNTS, PAYOFFS ARE PAYOFFS. A GOOD LISTING AGENT WILL INFORM YOU OF A THOROUGHLY QUALIFIED OFFER

 

• BUYERS SHOULD BE QUALIFIED BY A DIRECT LENDER

 

• HIGHEST AND BEST OFFER WINS TIME IS OF THE ESSENCE

 

• PRICE RIGHT, WITHIN A SHORT PERIOD OF TIME RECEIVE OFFERS, ACCEPT THE HIGHEST ONE AND COME TO A SUCCESSFUL CLOSING!

 

 

GOOD LUCK

 

 

 

 

I will start by saying I consider myself a very positive person, but I will immediately stop hoping and start

knowing. You see I was hoping that the recession would end this year, I was hoping that Obama would save

us, I was hoping that the housing market would recooperate, I was hoping families wouldn't loose their

homes, I was hoping, hoping, hoping. HOPE is a great thing it is described as a belief in a positive outcome

related to events and circumstances in one's life. I say let's stop HOPing and begin knowing! WHAT????

you might ask..... well I know the recession will end this year because I sold more homes this January

than I did last January. I know people will become home owners because in the city I live in there were 87

homes under contract. I know OBAMA will save us because I already see a change! I know people will stop

losing their homes because OBAMA will help, all of US will help, we will make OUR country better than it's

ever been by working together for a better TODAY! I spoke to a soon to be homeowner today and she said I

know I will be a homeowner before the summer! She has not lost HOPE, she just KNOWS! I am asking

everyone of you reading this today to know that things will get better, to know that the US is a great

country, to know that it is your land, and to know that you will make it better!

 

KNOW!! NOW!!

 

I don't mean it's getting hot as in weather here in sunny California, what I mean is the amount of buyers around

the corner when another low priced foreclosure hits the market. It almost felt like I had a sticker on the back of

my car that read: "FOLLOW ME TO A LOW PRICED REPO!"   What point am I trying to make you might ask? Well

contrary to media reports I am going to go ahead and say that in my local market buyers are buying up all the

repos like funnel cake! I mean we've got agents in my office writing offers on repos that I am writing offers on. I

spoke to a asset manager who stated they have been receiveing an average of 19 offers on every repo they list

in my local area! What many of the buyers fighting over these repos don't realize is that you can also find a

great investment on a regular sale home. Statistics show that 50% of my market is short pay sales and

foreclosures and the other 50% is regular sales. Unbelievable?? I think not! I actually had 2 clients under

contract on 2 regular sales in January, my clients decided to buy a regular sale instead of a bank owned because

they felt they were competing with many buyers on homes that were very beat up with no history of repairs done

by previous homeowners. Last but not least these clients often noticed they could get a regular sale in great

shape for less than what it would cost to get a repo habitable. There are currently 50 active bank repos in my

area and 56 repos under contract. What will eventually happen? They will all be gone, a memory will only be at

the back of our heads to remind us of a time when again the media has been taking everyone for a long ride!

THIS SHOULD HAVE BEEN TITLED : BASIS FOR WRITING  A CORRECT OFFER

• First you must understand that banks have decided on the price by having individual brokers give broker price opinions on the asset/property

 

• You must also understand that brokers giving the bank a price opinion will sometimes give a higher value to get a listing, this is not common when the broker has been doing bank owned for a while. It is seen mostly with new brokers trying to get an REO account

 

• When the opinion is over priced you will see the listing price drop after a few weeks, usually due to someone writing a offer based on recent comparables

 

• When someone submits a offer based on comparables and it is lower than the listed price banks will send out an appraiser to verify what is really happening

AND NOW THE DETAILS

• YOU MUST BASE YOUR OFFER ON THE LOCAL RECENT SALES COMPS NO EXCEPTIONS

 

• JUST BECAUSE THE PRICE IS $370,000 DOESN'T MEAN THE BANK WILL TAKE $370,000

 

• EXPECT TO BE ON THE TABLE WITH MULTIPLE OFFERS IF THE COMPS ARE HIGHER THAN LIST PRICE

 

• YOUR OFFER IS NOT BETTER BECAUSE YOU HAVE 20% DOWN

 

• YOUR OFFER IS NOT BETTER BECAUSE YOU DIDN'T ASK FOR CLOSING COSTS REMEMBER :NET

 

• YOUR OFFER IS BETTER BECAUSE IT NETS THE MOST TO THE BANK

 

• YOUR OFFER IS BETTER BECAUSE IT HAS A GOOD ESCROW LENGTH

 

• YOUR OFFER IS BETTER BECAUSE YOU HAVE A DIRECT UNDERWRITTEN APPROVAL FOR LOAN

 

• YOUR OFFER IS BETTER BECAUSE YOU HAVE A NO LOAN CONTINGENCY (RISKY) BUT GETS ATTN!

HOPE SOME OF THESE TIPS ARE HELPFUL IN GETTING YOUR OFFERS ACCEPTED!!

 

 

So I was previewing homes in my local market Downey, California and decided to snap a quick one with my Palm Treo........ hope you enjoy from the album cover of Now & Then

And how it looked in the album Now and Then

 

 

Remember this is only a prediction and nothing more, maybe we will look back at this and say ..... boy

was that Benny Chavez guy off, or maybe boy was that Benny Chavez guy on the money! I will mention

 that I have taken plenty of real facts into account when deciding what I would predict would happen so

here it goes:

• 2009 Will bring double the amount of forclosures than 2008

• The amount of forclosures will make some markets drop price by 10%

• Interest rates will remain within 5 and 6 % till 2010

• Many markets will have a stimulated local economy due to various real estate transactions

• Lenders will continue to use high standards to qualify

• The high end markets will be experiencing fewer sales, hows 10% off of 1,000,000?

• People will lose homes this year but a positve look will be that the large inventory of forclosures will cause for a price drop, allowing first time buyers who didn't qualify 6 months ago to now qualify

 

• Investors will be able to buy properties that will produce immediate cash flow

• Agents who are still in the business are more educated to this market, have more stats and tools to better service clients

GOOD LUCK IN 2009! MAY SELLERS SELL, BUYERS BUY, AND INVESTORS FLIP!

Bank Owned properties or R.E.O (real estated owned by a corporate entity) sales are much easier than a

short sale. The only problem with a reo is the conditions of the transaction. In most cases the bank will

sell the property in as-is condition. Depending on the kind of financing you have in place, some lenders

will not close the escrow if the home is not habitable. In the case of the price, the price is usually set low

to attract a lot of attention. We have come up with the conclusion that on average it takes 22 showings to

generate 1 offer on a property. By setting the price below market value, the reo usually will receive

multiple offers depending on the condition and location. Thus driving the price closer to market value.

Some drawbacks with reo's is the fact that you have no history on the home you are aquiring as compared

to a normal sale where a homeowner will disclose material facts about the home. Banks are waived the

obligation of completing a transfer disclosure statement. The home comes with no warranties and you

might not receive concessions on some reos, such as closing costs, termite repair, or any other requests

you may have. Banks are also asking for less time on contingencies. You might only get 9 days to

appraise and inspect the home you are interested in. Do keep in mind that the few things that you miss

out on by buying an reo are compensated for with price.