Patti's Santa Cruz Real Estate Blog

$469,9000 for 125 Clearview Place Felton, CA 95018

Patti Lyles (Century 21 Showcase, REALTORS®) — Tue, 14 Apr 2009 10:59:18 -0500

125 Clearview Place Felton, Ca 95018

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 29 Mar 2009 12:30:16 -0500

Santa Cruz County Real Estate Report March edition

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 29 Mar 2009 12:26:00 -0500

The March edition of the Report is now available.

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HIGHLIGHTS

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Santa Cruz County home sales up eighth month in a row because Buyers are coming back

Inventory declined for the tenth month in a row: down 18.8% from last February.

The median price for homes fell 5.7% from January, and was down 37.1% year-over-year.

For the four-page printable version of the report, click:

http://rereport.com/scc/print/PattiLylesSZC.pdf. To view the on-line report with the city-by-city breakdown, go here:

http://pattilyles.rereport.com

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P.S. If you find the Santa Cruz County Real Estate Report useful and know someone else who might, please feel free to forward this e-mail to them.

_________________________________________________

The Santa Cruz County Real Estate Report is brought to you by:

Patti Lyles

Century 21 Showcase

(831) 335-2100

http://www.SantaCruzRealEstateHomes.com

mailto:Patti@PattiLyles.com

The SANTA CRUZ COUNTY REAL ESTATE Report

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 18 Mar 2009 09:20:39 -0500

The March edition of the Report is now available.

=============

HIGHLIGHTS

=============

Santa Cruz County home sales up eighth month in a row because Buyers are coming back

Inventory declined for the tenth month in a row: down 18.8% from last February.

The median price for homes fell 5.7% from January, and was down 37.1% year-over-year.

For the four-page printable version of the report, click:

http://rereport.com/scc/print/PattiLylesSZC.pdf. To view the on-line report with the city-by-city breakdown, go here:

http://pattilyles.rereport.com

============================================

P.S. If you find the Santa Cruz County Real Estate Report useful and know someone else who might, please feel free to forward this e-mail to them.

_________________________________________________

The Santa Cruz County Real Estate Report is brought to you by:

Patti Lyles

Century 21 Showcase

(831) 335-2100

http://www.SantaCruzRealEstateHomes.com

mailto:Patti@PattiLyles.com

What to be apart of an Santa Cruz County online auction?

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 18 Mar 2009 09:01:24 -0500

by Patti Lyles

Would you want to be notified when another online property auction happen in Santa Cruz County? Of course you would....

$442,000 in online property auction - With neither gavel nor auctioneer, 1 months ago Santa Cruz County staged its most successful tax-defaulted property sale this week, peddling 10 parcels for more than $442,000.

The county's first eBay-style online auction garnered 752 bids from 38 people in six states. Generally, fewer than 10 people bid in previous county auctions, said Treasurer Fred Keeley.

The online auction "draws a larger field of folks who have the willingness to bid these properties up," he said.

The properties, which were more than five years past due on property tax payments, sold for between $8,900 and $121,100 to bidders in California and Hawaii.

The money first goes to pay a total of $51,100 in back taxes. The previous property owners have one year to collect the rest of the auction proceeds - $391,489.50 all together. If unclaimed, the county divides the money among cities, schools, and other tax recipients.

Dunstant Smikle of Camarillo bought the cheapest property, a 4,300 square-foot sliver of land in Scotts Valley on Lockhart Gulch Road. He hasn't seen the land yet, but hopes to build a small house or cabin.

"Where else in California can you find property for $9,000?" Smikle said.

A controversial Felton property also sold. Damaged in a 1982 mudslide, the county condemned a house on View Circle, just north of Henry Cowell Redwoods State Park. Raymond Tate, the owner since 1986, fought the county and ultimately lost an 18-year legal battle.

"They've forced my hand," Tate old the Sentinel in 2001. "Now it's time to go for the jugular"

The county spent $11,000 to tear down the house in 2004.

Al Tamesabi of San Marcos bought the 1.25-acres for $13,600.

Initially 28 properties were available, including a Santa Cruz Home one block from West Cliff Drive and a large house on Highland Avenue worth more than $700,000. Those properties and 15 others fell off the auction block before the three-day sale started on March 12. The owners had until midnight March 11 to pay the taxes they owed.

Maryland-based Bid4Assets ran the auction for a flat fee of $75 for each property sold. Keeley said the county saved $10,000 by not running a live auction.

Santa Cruz County now plans to hold future tax-defaulted property auctions online. I will notify you when, just email me at Patti@PattiLyles.com

Santa Cruz County median home price plunged has market has bottomed out?

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 18 Mar 2009 08:52:17 -0500

February home price median retreats to $380,000
by Patti Lyles

The median price for a single-family home in Santa Cruz County plunged in February to $380,000, the lowest since January 2000, prompting one agent to declare the market has bottomed out.

92 sales, with homes in Watsonville, the area hardest hit by foreclosures, accounting for a record 33 percent.

And 66 percent sold for less than $500,000, the highest percentage in years.

In Watsonville, banks sold foreclosed homes at discounts of 30 percent to 50 percent.

A few examples:

124 Grant St. sold for $166,000, down from $490,000 in 2004.

38 Lower Cutter Drive sold for $215,000, down from $420,000 in 2003.

518 E. Lake Ave. sold for $235,000, down from $395,000 in 2002.

Those are not condo prices; those are single-family homes.

"We've hit our bottom in South County in single family," said Dee Dee Vargas, president of the Watsonville Association of Realtors. "If you're waiting to see if prices might drop a bit, you might miss the boat. We're seeing multiple offers. I've got more buyers than properties right now."

With a market full of "distressed" properties, banks selling foreclosed homes and homeowners seeking bank approval for short sales, closing a sale is "almost a miracle," she added. "We get a lot of curve balls thrown at us."

It might be a lender that insists on reviewing an appraisal before authorizing a loan or one that shuts down before providing the promised funds.

Entry-level buyers are taking advantage of FHA loans, but some are discovering there's a catch. Distressed properties need repairs to meet FHA health and safety standards, but banks want to sell the home as is and the buyers are stretched to come up with the required down payment.

Vargas, who is with Bailey Properties, sees investors competing with first-time homebuyers.

That's driven by a change in Fannie Mae and Freddie Mac guidelines. The two mortgage-buying entities had restricted investors to four properties. New guidelines allow 10.

Vargas said one of her clients qualified for an FHA loan but the bank that owned the house accepted an all-cash offer from an investor.

"With banks, cash is king," she said.

Tai Boutell of Santa Cruz Home Finance predicts that interest rates for mortgages, pushed artificially low -- at or below 5 percent -- could go up by mid-year to the low 6 percent range. Buyers who wait until then hoping for prices to fall will pay more, he said.

For example, payment on a $500,000 loan at 5 percent would be $2,684 a month; if the home price drops 10 percent in six months and interest rate rises to 6.5 percent, the payment would be $2,844 a month.

While the low-end market is brisk, high-end activity has nearly dried up.

Only four homes sold in February for more than $1 million.

Longtime appraiser Glenn Fuller reported 212 listings in that price range at the end of last week.

"That's a lot," he said.

He tallied only 11 pending sales, leaving about 19 months of inventory.

In 2007. buyers were snapping up $2 million homes around the county. Now they just aren't selling.

Very few people can qualify under the new standards, Fuller said, and the typical buyer of the high-end properties had money in the stock market but doesn't seem as rich since the market tanked.

OH MY GOD WHAT HAVE I GOT MYSELF INTO NOW?

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 04 Jan 2009 20:22:37 -0600

OH MY GOD WHAT HAVE I GOT MYSELF INTO NOW?

PATTI LYLES is scared and needs your help. Call 831-335-2100

•1. I need an Attorney that is savvy with RESPA Section 8 violations and has dealt with violators.

•2. Or a RESPA representative who works with enforcing RESPA violation.

Please help me locate one or call me if you are one.

I have verbal confirmation with 3 C.A.R. Legal Hotline Attorneys; that if performed(paid out) on a Referral Fee Agreement it would be a RESPA violation.

I contacted the Referring Party, that when his company became apart of my purchase transaction in some way, it knocked his referral out of the picture. I told him I contacted not only 3 CAR Attorneys but other resources to verify this before I told him. He went off like Tasmanian devil has hasn't stop spinning since. Even called the Escrow officer demanding to be paid. How screwed up is that?

The HUD Rep that I talked by phone scared me when he told me consequences are enforced and terrifying -- For both of us!

If I coward down to his antics and pressure. I am not opening up myself for bigger headaches then the pressure from the guy who's not going to be receiving the money now.

How did I get the little Devil off my back? The HUD guy didn't tell me what to do if the guy didn't back off.

Do I need a letter from an RESPA Attorney demanding he comply or do I get a letter to the Escrow Officer demanding she not pay him?

Meanwhile it was suggested to me to file a complaint with the place below. Anyone ever file a complaint?

Persons who believe a settlement service provider has violated RESPA in an area in which the Department has enforcement authority (primarily sections 6, 8 and 9), may wish to file a complaint. The complaint should outline the violation and identify the violators by name, address and phone number. Complainants should also provide their own name and phone number for follow up questions from HUD. Requests for confidentiality will be honored. Complaints should be sent to:

Director, Office of RESPA and Interstate Land Sales
US Department of Housing and Urban Development
Room 9154
451 7th Street, SW
Washington, DC 20410

$25,000 for a COMPLETELY DESIGNER FURNISHED Mobile Home

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 05 Nov 2008 13:57:54 -0600

http://www.52oneida.com

CUTE AS A BUTTON! Furnished by a CID DESIGNER right down to the linens.

This trailer was recently completely remodeled and now it is truly in Turn-Key Condition. Everything in it you get....You could move in tomorrow with just a toothbrush & suitcase.

See Pictures below and See it now . . . don't need an appointment . . . than simply call Ower/Agent directly 831-335-2100 It is very nice. Treat yourself to something much nicer than you have been looking at this price in Oakley. Most trailers need a hammer or shovel. This Mobile home is in Great condition
1 spacious bedroom 1 bath
Single Wide unit that is 52 length x 12 wide. Plus Expando Room
A full front porch and nice extended patio in back with it own Washer & Dryer.

New owner must be 55 years and older and will have to be approved by park.
Current space rent is $441.00 per month which includes water & trash, use of clubhouse & swimming pool. Park is a small sleepy Senior Community in Oakley, CA. This is close to Brentwood, Antioch & Pittsburg.

Priced to move it fast:

*** Comparable:
72 Oneida which is Across the street which is a 1 bedroom trailer SOLD for $25,000 in April 2008.
This trailer is a much better buy.
A little Bigger because of Expando room
A better lot space with more sun
Better curb appeal
Much $$$ Better flooring
New Roof
New $5,500 Air conditioner and forced air heating.... not a swamp cooler gone
Dual Pane windows
Newer appliances
New Granite counter tops and sink
New water heater

Washer & Dryer

Small storage shed.
Master bedroom with queen size bed has large mirrored closet with a small TV.
2nd TV in newly furninshed living room

Who are the Ideal Buyer(s):
Someone who wants a dream home for a steal of a price.
Need to move your parent(s) close to you but not in your house.

Let's hear it for the title and escrow folks in Santa Cruz County

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 11 Nov 2007 19:05:09 -0600

from Patti Lyles @ SantaCruzRealEstateHomes.com

Behind the scenes of each purchase and refinance transaction are the unsung heroes of our real estate market, all of the hard-working employees of the three title companies in Santa Cruz County: Santa Cruz Title, First American Title and Old Republic Title.

The title company is the neutral third party in the transaction between the buyer and seller. To put it in its simplest form, the buyer gives his money to the title company and the seller signs over the deed to his property and entrusts it with the title company. The title company is then responsible for handing the money to the seller after paying off the seller's loans, then providing the new deed to the buyer.

A homebuyer or borrower probably will only have contact with his escrow officer for an hour while they are signing all of the miscellaneous loan and property transfer papers, a procedure that is affectionately called "the sign-off," but that is only the tip of the iceberg.

An escrow is opened by the real estate agent as soon as there is a finalized purchase contract between the buyers and sellers or opened by the mortgage consultant when a refinance transaction has begun. In California, the buyer has the legal right to select the title company.

The title company will research the title of the property to determine who the legal owner is, if there are any outstanding loans, who the lenders are that must be paid off before the property can change hands, and to uncover any other easements, "clouds" or encumbrances on the title.

The buyer wants to be sure to obtain clear title and the lender wants to be secure in knowing that if the property has to be taken back that it will be in position to recover all or most of its losses in a foreclosure procedure.

After this research is done, a preliminary title report often referred to as the "prelim" is issued on the property for the buyers and the new lender to review. It is called a preliminary report because it is produced for review before title insurance can be issued and before the final transfer of ownership.

As a result of this research there are two title insurance policies issued by the title company: one is for the protection of the buyer, the CLTA California Land Title Association and other is for the protection of the lender, the ALTA American Land Title Association.

Lenders in California will require the issuance of both of these policies; however, if the buyer is paying cash, neither is required by law. In these cases, it is still advisable for the buyer to secure the CLTA to protect himself.

Typically, the agent or the lender will select a specific escrow officer, who will be in charge of coordinating the escrow events that will culminate at the close of escrow, the date that the property officially changes hands at the Santa Cruz County Courthouse.

Needless to say, there is a lot of paper-pushing and research involved in this escrow process. If you were to stop in sometime at the office of any of these title companies you would find dozens of employees toiling away at mountains of paperwork stacked on their desks.

The employees of the title companies put in their time behind the scenes to meet the demands of the buyers, sellers, owners, agents and lenders in our local real estate market and, for the most part, their efforts go unnoticed. Those of us who work in the real estate industry salute the men and women of the title companies and thank them for all of their hard work.

Santa Cruz County Rental now available: Call 831-335-2100

Patti Lyles (Century 21 Showcase, REALTORS®) — Tue, 30 Oct 2007 12:13:42 -0500

Available Now

Nice duplex off Granit Creek in lovely Scotts Valley. This is a 2 bedroom and 1 bath with tub and shower.

There is new carpeting and paint throughout. It is very quiet, private and the only thing that is shared is the

new Washer and Dryer. You will have a lovely deck to enjoy your morning coffee on and there is covered

parking.

Available soon @ 1,600. A Month

*************************************************************************************

Just Rented
****************

Here is a lovely home located off of Glen Arbor Road in lovely Ben Lomond. This home

has so many amenities, it is located on a lovely large lot with lots of parking and privacy.

Large 3 bedroom/2 full bath with oak hardwood floors, lots of large windows, decks, hot

tub, 2 koi ponds and sunshine throughout. In fact, there is so much sun that we have

installed a canvas awning to shade the large windows and French doors.

Amenities include:

Oak hardwood floors

Washer and dryer hook ups with gas

Huge master suite with balcony

Large decks and patios

Wood stove with open face to enjoy

Close to town and schools

Newer hot tub and cover to lock

Garage with work area

Rented @ 2,100. A Month

**************************************************************************************

211 Madrone Drive, Felton Rented @ 2,200. a month

Fully available for sale and on lock box

**************************************************************************************

718 Modesto Ave. Santa Cruz Rented @ 2,600. a month

Still available for sale. Please contact Chris Clayton for showings

**************************************************************************************

Beautiful home on a sunny ½ acre of seclusion. We are located on Cottage road off of Bracken Bridge.

Half way from Felton and Ben Lomond. One of the finest of neighborhoods. Freshly painted and as clean

as a whistle. Comcast Internet and garbage paid until Sept. 30th

Amenities include:

Hard Wood Floors

Washer and Dryer

Huge Master Bed w/Huge Closet

2 Large Bedrooms w/Bathrooms

Sunroom off Kitchen

Stone and Brick Fireplace

Large Livingroom w/ built in shelves

Internet through Comcast

2 Car Garage

Rented for 2,000. A Month

************************************************************************

Great family neighborhood and ready for move in NOW...

Unlimited possibilities here, as this house has it all.

Amenities include:

3,000 square feet of usable living space

2 car garage

Beautiful fire place

Large open kitchen

Master bedroom

Inside laundry

Decks and patios

Lovely landscaping

Large yard fully fenced

Lots of parking

Quiet dead end street

Plenty of sunshine

Close to schools

Great family neighborhood

In-law quarters or office space

Rented@3,400. A Month

Please give me a call if you any questions or have an interest in
any of the above properties

Median Price for Homes Falls in September

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 28 Oct 2007 17:23:44 -0500

Market report by Patti Lyles

http://www.pattilyles.com

Statistical Tables

Trends at a Glance
(Single-family Homes)
Sep 07 Aug 07 Sep 06
Median Price: $710,000 $794,200 $750,000
Average Price: $804,519 $890,040 $825,998
Units Sold: 114 137 134
Inventory: 1,263 1,301 1,300
Sale/List Price Ratio: 96.3% 97.8% 97.1%
Days of Inventory: 332 285 291
Days on Market: 89 73 78
After setting a new record high in August, the median price for Santa Cruz County single-family, re-sale homes tumbled 10.6% in September, a year-over-year loss of 5.3%. The average price dropped 9.6%, a loss of 2.6% year-over-year.
Home sales were down 16.8% from August & Inventory dropped last month
Days on market rose 16 days to 89 for homes

Are your Santa Cruz Property Tax Assessments Too High?

Patti Lyles (Century 21 Showcase, REALTORS®) — Sat, 27 Oct 2007 22:26:02 -0500

EVERY PENNY HELPS!! by Patti Lyles: http://www.feltonproperty.com/

Request for Reappraisal - When the taxpayer believes he/she is being over assessed this form may be submitted to the Assessor's Office so that the current assessed values may be reviewed. (call 831-454-2002 ask for a form called Prop 8 Reductions under Tax Cycle Information.

I recently filed a Request for Reappraisal with the Santa Cruz County Tax Assessor's Office for our own investment property. The process was very simple and in less than 60 days we received notice that our annual property taxes would be temporarily reduced by nearly $500.00

WARNING: BEFORE you send it, if any remodeling has taken place - with or without permits - you may want to think twice about submitting a request. A physical inspection of the property may be required which might open the door to issues with the Planning Department.

What is Proposition 8?

Prop 8 was one of the early amendments to Prop 13. Prop 13, as you may know, changed California's method of property taxation from a "market appraisal system" to an "event driven system". Due to the pressures of ever increasing property values the taxpayers revolted. They amended the constitution to state that instead of constantly raising our assessments every 3 or 4 years, only reassessments at market value can occur when there is a change of ownership or new construction. Until one of these events occurs assessments may only increase by the consumer price index and this can be no more than 2%. As you can see, the impetus and the context of Prop 13 was a rising real estate market. It didn't take long for the question to arise: ‘If my values are "frozen", what happens when the market goes down? I'll be paying taxes on an assessment that is above the market....!' And so.......Prop 8 was born.

What does Prop 8 say?

Very simply, it added a few words to the California Revenue and Taxation Code which make reference to adjusting base year values to take "into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value". R & T Code Section 51(b)

Does the Assessor automatically lower values when they're above market?

The Assessor initiated reductions on single family residences in Santa Cruz County beginning in 1992. At that time it was clear that the real estate market was experiencing more than a temporary slump. Currently (1997) there are more than 8,000 properties that have been reduced. These reductions are based upon a detailed analysis of thousands of sales from 1988 to the current year.

Why wasn't my property reduced?

Santa Cruz County has a very complex and varied real estate market. From the mountains to the sea, there are few vast tracts of identical homes. This makes global reductions quite difficult.

What can I do if I think my assessment is too high?

The Assessor has a one page form which may be submitted as a "Request for Reappraisal". Any supporting data (appraisals, comparables, multiple listings, etc.) will be helpful in expediting your reduction if it is warranted.

I don't know anything about the market value of my property. Do I have to hire an appraiser or a real estate agent in order to pursue this reduction?

No. We have a very knowledgeable and experienced staff. Our appraisers are professionals who will be more than willing to discuss your assessment with you.

When must I file this request?

The state legislature has recently responded to a statewide decline in the real estate market. In the past there were strict time limits on when to file for a reduction, this often resulted in several months delay in the Assessor's ability to respond to the request. Now a request can be submitted at any time and the Assessor has the authority to reduce the current year's assessment.

What happens when the market begins to recover?

A reduction to the base year value under the auspices of Prop 8 is not permanent. The Assessor is required to track every reduction until the base year value is restored. The consumer price index continues to compound each year, so this tracking presents a formidable challenge to appraisal staff.

Where can I pick up a "Request for Reappraisal"?

Forms are available at the County Assessor's Office, 701 Ocean St Room 130. You may also call us at 454-2002 to request a form and it will be mailed to you.

Must I apply for this reduction every year?

No. The Assessor will review your assessment every year until the value is restored to its appropriate base year level. If you believe the value has declined again then you may submit another "Request for Reappraisal" to get further relief.

Should you have any further questions please contact the County Assessor at 454-2002.

Can you walk out your oceanview living room into the CALIFORNIA sand?

Patti Lyles (Century 21 Showcase, REALTORS®) — Fri, 14 Sep 2007 23:47:40 -0500

Amazing OCEANVIEW A rare find becasue you can really walk out your door and into sand

Patti @ www.SantaCruzRealEstateHomes.com

Beach Dr
Aptos, CA 95003

Price: $2,895,000
Main Features:
4 Bedrooms,2 Bathrooms,1 Partial Bathroom,Interior: 1755 sqft

More Info: http://listings.realbird.com/Real_Estate/Aptos/CA/5760.aspx
Description:
Located on what we call "the Island at Rio Del Mar Beach"
Call Patti (831) 335-2100 to view. 24 hr APPOINTMENT ONLY * DO NOT DISTRUB OCCUPANTS

www.LUXURYSANTACRUZ.COM
This is the property that makes life long memories for you, your family and friends!Imagine walking out your door directly into the sand of one of the BEST walking beaches in Northern California, Rio Del Mar Beach. Full-on ocean views, terrific restaurants within walking distance, or just take your morning coffee and walk down the beach. This home sleeps 10, has three levels and is beautiful! Used as a very successful weekly rental for the past 10 years! Investors you will love that this home is currently rented through October @ $3,100 weekly rate.

The patio is just perfect for breakfast, lunch, dinner, coffee, visiting with friends but you won't be able to keep your eyes off the beautiful ocean!First level has a stunning kitchen, living room with fireplace, laundry and half bath.Second level has a deck and two great bedrooms and one full bathThird level hasÂ a deck with fabulous views,2 bedrooms and one full bathHome was remodeled top to bottom in 2000!!Call for showings!!

City of Santa Cruz Real Estate report for September 2007

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 12 Sep 2007 15:22:14 -0500

Patti Lyles reporting on Santa Cruz Real Estate

The following chart shows median and average price trends plus plus unit sales for single-family homes in just the city of Santa Cruz. The chart uses a 12-month moving average to eliminate any seasonal variation.
The next chart is the same as above but uses a 3-month moving average. This smoothes out month-to-month variations yet shows seasonal variations.
This chart shows the current inventory of homes for sale compared to the number that have sold.
The following three charts show the same information for Santa Cruz condominiums.
For detailed information on Santa Cruz real estate, give me a call or send me an e-mail. If you prefer, you can comtact me and I will send you city by city reports

For Sale: $559,000 Click Here For More Info

Santa Cruz Reports: Median Price for homes Set new record

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 12 Sep 2007 13:40:38 -0500

Patti @ www.santacruzrealestatehomes.com

Median Price for Homes Sets New Record

Trends at a Glance
(Single-family Homes)
	Aug 07	Jul 07	Aug 06
Median Price:	$794,200	$780,000	$765,000
Average Price:	$890,040	$850,689	$852,949
Units Sold:	137	142	185
Inventory:	1,301	1,306	1,355
Sale/List Price Ratio:	97.8%	96.9%	97.1%
Days of Inventory:	285	276	220
Days on Market:	73	87	79

It is hard to believe isn't it? But read all of this to better understand the breakdown. The median price for Santa Cruz County single-family, re-sale homes rose 1.8% in August, a year-over-year gain of 3.8% and a new record. Does this mean home prices are rising? I don't think so. This is just a statistical anomaly brought on by the weakness in the lower-end of the market. Higher priced properties are a greater portion of all sales thereby skewing prices.

The median price for condos rose 1.8% to $509,000, an annual loss of 7.5%. The average price gained 8.7% to $587,777, down 1.8% year-over-year.

Home sales were down 3.5% from July, off 25.9% year-over-year. Condo sales were up 51.7%, month-over-month, and were up 2.3% compared to last August. Year-to-date, home sales are down 12.6%.

Inventory actually dropped last month, with single-family homes down 0.4% from July, and down 4% year-over-year. Condo inventory was down 4.5% month-over-month, and off 12.5% year-over-year.

The sales price to list price ratio for homes rose 0.9 of a point to 97.8%.

Days on market lost 14 days to 73.

Our days of inventory indicator rose nine to 285 days.

The sales chart below shows the historic inventory versus sales ratio since January 2000. Click on the chart to expand it, then click your browser's back button to return.

The chart below tracks the change in median and average prices since January 2001. Click on the chart to expand it.

My advice? For Buyers, having a loan in place before buying is of utmost importance in this market. Sellers aren't going to tie up their homes with offers from buyers who don't have their loan in place.

For sellers, pristine homes in the best neighborhoods are still getting multiple offers, but that is now the exception rather than the rule. Over-priced listings are not even getting offers. If you get an offer, a rarity in this market, work it. Do not reject any offers out of hand. You may not get another.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, call Patti Lyles at 831-335-2100

If I can help you devise a strategy, click http://www.santacruzrealestatehomes.com/

To view sales statistics for each city in the county, go to the next page by pressing the continued link below.

San Lorenzo Valley Monthly Real Estate Trends for SEPTEMBER 2007

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 12 Sep 2007 12:53:59 -0500

San Lorenzo Valley Monthly Real Estate Trends

The following chart shows median and average price trends plus plus unit sales for single-family homes in San Lorenzo Valley. The chart uses a 12-month moving average to eliminate any seasonal variation.

The next chart is the same as above but uses a 3-month moving average. This smoothes out month-to-month variations yet shows seasonal variations.
This chart shows the current inventory of homes for sale compared to the number that have sold.
For detailed information on San Lorenzo Valley real estate, give me a call or send me an e-mail. If you prefer, you can fill out one of my forms. There's one for buyers and one for sellers.

This place is so quaint it still has an Ice Cream Social

Patti Lyles (Century 21 Showcase, REALTORS®) — Sat, 08 Sep 2007 19:30:18 -0500

Patti @ FELTONREALTOR.COM

Wouldn't you love to live in a that still has Ice Cream Socials? I encourage you to consider buying a Felton Property as a primary residence or a vacation getaway. It has the best affordability in the Santa Cruz County. 10 minutes to the beach too.

PRINT THIS OUT AND SUPPORT OUR HEARTFELT COMMUNITY

Felton Library Friends Ice Cream Social
Saturday, September 15 2007, 1:00pm - 4:00pm
Felton Library Friends invites community members to an Ice Cream
Social on Saturday, September 15, 1-4 p.m. The event will be held at
the site of the future Felton Library next to the Post Office on
Gushee Street. Admission is free. Marianne's ice cream cones and
sundaes will be served, as well as drinks from The White Raven, and
hot dogs.

Entertainment will include activities for children, a cake walk, and
stage acts. Beginning at 1:00, Common Cents bluegrass band will be
followed by The Great Blindini comedy magic show. At 2:00, guitarist
Kenny Hill and storyteller Richard Gaughn will perform. Teens from
the San Lorenzo Valley Youth Council will sing after 3:00 p.m.,
followed by raffle prizes, each valued at $100 or more.

This event will introduce the site of the new Felton library to the
people of the San Lorenzo Valley and Bonny Doon, and will celebrate
the offer of the land to the library system by the Verutti family. For
more information, email feltonlibraryfriends@gmail.com This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , call
831-335-1135, or visit http://www.feltonlibraryfriends.org/.
Location (Venue, Address): Gushee St., Felton
Contact (phone or web): feltonlibraryfriends.org, 335-1135
Free

"How dumb is that?" isn't the thing I want my clients saying to me

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 26 Aug 2007 18:20:08 -0500

When I told my buyers last week that Fannie Mae's 2007 Conforming Loan Limit Remains at $417000, they all quickly chimed in with "How dumb is that?" As a Santa Cruz County Realtor what do you tell them next week if the buyers come back?

OMG, The trouble is that $417,000 is the maximum loan amount for a single family residence that Congress will allow Freddie and Fannie to provide, doesn't work in California. It doesn't help my buyers in the San Lorenzo Valley. Which is the cheap seats of the real estate theater in my county, I can't believe this.

This may be fine for some parts of California, it does not provide much help for any home buyers and homeowners in Santa Cruz County where the median price in July was $780,000. Even if that went down in the next 4 months the conforming limit would still be a joke. Amazingly, years ago Congress saw fit to raise this conforming limit to $625,500 in the "high-priced" states of Alaska and Hawaii. I will never understood why they didn't include us. Why can't we get the same breaks that Hawaii gets?

The House of Representatives has recently passed a bill raising the limit but the Senate has yet to act. While today's borrowers might still have access to the wide variety of mortgage options that existed prior to this month, there aren't as many viable options to satisfy most of my earnest home buyers or any homeowner (past client) who calls me and wants my advice about refinancing.

I strongly urge the Senate to make this a priority, because we need to help homeowners get access to needed credit. I sent out an short email to express my thought to Reps. Barney Frank, D-Mass., and Gary Miller, and Sen. Charles Schumer. I understand they are on my side. What else can I do? I do still service the high-end $2mil +++ stuff http://www.LuxurySantaCruz.com but I can't get my next door neighbors into homes any more.

I am not a lender but don't you think that in general, the more mortgages the two entities can purchase, the more confident lenders can be about making loans?

Want a Santa Cruz home? Get credit scores up because lenders are NOW looking for quality now.

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 26 Aug 2007 12:39:32 -0500

Patti @ www.SantaCruzRealEstateHomes.com

Q: I want to buy a Santa Cruz Home in the next 60 days. You asked me what my FICO scores are. I just found out that the score was below what you would have liked. My FICO scores are a little low, is there a way I can improve my scores very quickly?

A: The first rule of maintaining and keeping a healthy FICO score of 720 or higher is NEVER BE LATE! Primarily any MORTGAGE PAYMENTS. I can't emphasize the point of how important it is to never be late on your mortgage payments.

But it is not the sole deciding factor of your FICO score, the three major credit bureaus involved with FICO scoring are Experian, Equifax, and TransUnion. All three of these companies use algorithmic equations taking in a multitude of factors in determining your FICO score. The FICO score range is between 300 and 850 and to get the best rates from lenders today, a mid-score of 720 is needed.

For example, if you have the following three scores, 680, 730, 745, you are in a position to get the most competitive rates because your mid-score of 730 is over the 720 benchmark score. So what happens if your mid-score falls under 720? There are a few things you can do to get a rapid turnaround in 30 days.

The first and most immediate impact is to look at your credit cards. If you have any credit cards at or over 50% of the maximum credit limit, pay those credit cards to under 50% of the credit limit immediately. For example, if you have a bank credit card and the credit limit is $5,000 and you have a standing balance of $3,500, pay that down immediately to 50% of the credit limit, which means sending a payment of at least $1,000 to bring the balance under $2,500. One of the biggest detriments to your FICO score is having what is classified as a revolving debt (a credit card) maxed out or over 50% of the balance. Once the revolving debt is paid down to under 50% of the credit limit, the impact on your FICO score can be significant.

What happens if you don't have the cash to pay down your credit card debts to 50% of the balance?. If you do not have the $1,000 to pay down the balance, you can ask for a credit limit increase. With the above example in mind, requesting the bank to increase your credit limit to $7,000 will reduce your debt to 50% of the credit limit and can give you a boost in your scores. But this is only for the most disciplined of people because most people are in the habit of just spending and putting more on a credit card once they are granted a credit limit increase.

There are other things you can do to improve your scores to buy that Santa Cruz Home which include limiting credit inquires to no more than 12 a year, do not cancel credit cards you may have had for a long period of time, and there are a list of others which we can go into with the lender you choose to work with on any Santa Cruz Real Estate transaction.

Ocean View property, Beachfront property and Up-sale living with a Pacific Breeze

Patti Lyles (Century 21 Showcase, REALTORS®) — Mon, 20 Aug 2007 12:14:32 -0500

Patti Lyles announced today the launch of LuxurySantaCruz.com, (website:http://www.LuxurySantaCruz.com ) a novel luxury real estate portal featuring all MLS listed homes in Santa Cruz and surrounding areas with a list price of 2 million dollars and above.

About LuxurySantaCruz.com

LuxurySantaCruz.com is designed to serve the home buying needs of those who are in the market for $2 million plus homes and condos - and it can be a way to watch the luxury market for the curious. It is based on a visually impressive full-screen map based portal powered by Google Maps, with a selection of aerial, hybrid, street or topographical maps. Upon mouse-over the user can quickly see a photo and the price of the listing. With just two clicks the user can bring up the detail page for any listing. Any particular location of interest can be easily bookmarked and shared with the most popular social bookmarking sites, or it can be emailed to friends or relatives. The RSS based notification of new luxury properties is also a unique, novel feature in this industry by allowing users to get notification on newly listed luxury properties in a particular map extent.

Patti Lyles, Owner of LuxurySantaCruz.com and Zoltan Szendro, CTO and Executive VP for RealBird said: "We wanted to apply our technology and know how to the luxury real estate segment. It takes special interface design know-how to create a portal that is appealing, classy, simple to use and therefore very effective. We are thrilled that we can launch this site in Santa Cruz County."

Please visit the portal at http://www.luxurysantacruz.com/ to see it live, in action!

LuxurySantaCruz.com

It is a service of Patti Lyles and powered by RealBird's technology. LuxurySantaCruz.com showcases homes and condos priced $2 million or more. Listings are from the RE InfoLink MLS (IDX) and the database is updated daily.

"The new LuxurySantaCruz.com portal is a great improvement in terms of usability and aesthetic appeal over your standard home portal. Adding LuxurySantaCruz.com to my existing suite of Santa Cruz County real estate websites (http://santacruzrealestatehomes.com/, .http://www.sanlorenzovalleyrealestate.com/ which serves Felton , Ben Lomond, Brookdale & Boulder Creek and http://www.santacruzcountylistings.com/) allows me to fully address my clients' needs from the first time homebuyer and up to the ‘sky's the limit' client".

WHY BUILD it? According to the American Affluence Research Center (AARC) there is continued optimism in the 12- month economic outlook of the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending and a third of the total US economy. The strong economy and low unemployment have created a strong market for luxury homes in such areas as Santa Cruz.

I want feedback/comments and will make improvement based upon them.

Happy Trails . . . until we meet again,

Patti Lyles

831-335-2100

Prisoner of Devil'sIsland lived in Ben Lomond Home

Patti Lyles (Century 21 Showcase, REALTORS®) — Sun, 19 Aug 2007 16:42:05 -0500

An illegal alien, working as a gardener, is confronted by immigration officials and arrested for deportation - not exactly front page news in San Lorenzo Valley real estate, now or in 1933. But this particular man had once been known as Pierre Dupres, the "Phantom Bandit" of Paris.

More surprising to the unsuspecting Ben Lomond Home residents whose gardens he had pruned and weeded, he had once been the subject of international headlines. Decades before, Dupres had been one of the few men ever to successfully escape the notorious French penal colony of Devil's Island.

Known locally as Amato Desederio, he had arrived in the Valley in 1922. For the next decade he lived quietly, almost invisibly, never attracting notice or running afoul of the law.

But in 1932 he moved briefly to Sausalito and then to San Francisco, where he was noticed by agents of the United States Immigration Service. But when they moved to deport him, Desederio pleaded that he was not French but Italian.

Desederio was allowed to return to his Ben Lomond Home while his case was considered, but immigration officials did not forget about him. Over the next year they pieced together a remarkable amount of information about Dupres/Desederio from official records on three continents.

The name Desederio was but another of many aliases used by the man who had been born Desiderato Felice Trabucco. His birth records were destroyed, but police logs indicated he had been born in France of Italian parents in 1879.

A Long Criminal History

There were plenty of records for officials to review. By the age of 18, Trabucco had been arrested for abuse of confidence and larceny. These were followed by a long string of charges and imprisonments that earned him his "Phantom Bandit" nickname.

Finally, in 1905 the French courts sentenced him to life imprisonment on Devil's Island for highway robbery, grand larceny and attempted murder. Devil's Island, located in French Guiana on the northeast coast of South America, was perhaps the most feared and infamous prison in history.

Founded as a French colony in 1763, within the first year 10,000 of the first 12,000 settlers had died. Scorched by a blazing sun, drenched by torrential rains, swarming with disease-carrying mosquitoes, those trying to carve a foothold in the jungle also faced army ants and man-eating piranha.

The surviving colonists retreated to three islands offshore, which they called the Isles du Salut, or Islands of Salvation.

To a later generation of prisoners they were known as the Islands of Death. In 1852 the French government converted the settlement to a penal colony, which included not only the three islands but the buildings on the mainland.

However, the appalling conditions soon extended the fitting name of one of the three islands, Devil's Island, to include the whole complex of prisons.

At first no French convicts were sent there, as conditions were deemed too severe for anyone not born to a tropical climate. But in time Devil's Island became reserved for political prisoners such as Alfred Dreyfus, the Jewish army officer wrongly accused of treason, or for spies and the worst sort of criminals.

Escape Considered Impossible

Many had attempted escape, only to perish in the jungle or open sea. Desederio planned his escape for two years, then took two more to hoard food and secretly build a raft in the jungle. Finally, in 1911, he and 12 companions made their break, rowing at night towards Venezuela using pieces of wood as paddles.

"It was 44 days of hell," he recalled decades later from his Alameda jail cell, "watching my fellow convicts go crazy and jump into the ocean, delirious for lack of water." Some deserted to small islands along the way; some were taken by the sharks used to feeding on the corpses of deceased prisoners which were dumped in the bay.

Eventually only Desederio and one companion made it to Caracas. Several years later Desederio arrived alone in New York, where shortly thereafter he was arrested on a robbery charge.

"I was wild with fear that my identity would be discovered," he stated in his recollection, "but the police let me go when they found I had nothing to do with the robbery. Being released put new spirit into me. After that I was happy and I worked hard, asking little of life" as he worked as a gardener.

Understandably, Desederio was desperately afraid of being handed over to the French and returned to Devil's Island, so the fact that he altered a few details of the story might come as no surprise. In truth he had not been released by the New York police; instead he served three more years in Sing Sing prison for the robbery under the name Francisco Engnetto.

When he moved west in 1922, he landed in Santa Rosa long enough to get picked up there on still another burglary charge, for which he served three months. It was only then that he drifted to Ben Lomond, where he apparently laid his criminal habits to rest once and for all.

Native Son Deported to Native Land

Whether it was a much-delayed epiphany that set him at last upon the straight and narrow is impossible to say. There are gaps in Desederio's story where other names and misdeeds might have gone undiscovered by federal sleuths. Or perhaps it was just the passage of time; by the time he settled into a Ben Lomond Home, Desederio was in his 40s and 50s, an age at which criminals often forsake the misdirected habits of youth.

In any case, Italy was not inclined to embrace someone else's geriatric problem child, and France, which would soon shut down its penal colonies altogether, no longer had the taste for Javert-like revenge. Desederio's lawyer finally managed to produce testimony from relatives and friends in Italy that he had been born there. That was enough for him to be issued an Italian passport and be deported to Genoa.

With the dictatorship of Benito Mussolini in full swing, that may have been punishment enough for any remaining debt to society he still owed.

As for Devil's Island, it was shut down once and for all as a prison in 1946. It was later promoted as a winter resort for tourists, who may now skim across the shark-laden waters in commercial shuttles to enjoy pleasant guided tours at the European Space Agency's satellite launching station.

Would you like me to post more trivia about Ben Lomond?

Magazine names Santa Cruz one of the nation's best cities.

Patti Lyles (Century 21 Showcase, REALTORS®) — Sat, 18 Aug 2007 22:10:12 -0500

Outside Magazine latest issue names Santa Cruz one of the nation's best cities.

Santa Cruz Home owners once again have proof they live in one of the best towns in America. The upcoming issue of Outside magazine names Santa Cruz in its annual list of the most desirable places to live.

The editors at Outside Magazine said they chose Santa Cruz for its mix of laid-back and cosmopolitan atmospheres. The story describes it as, "old-time hippie culture, complete with dread locked street urchins and lots of wheatgrass, blending with the Volvos and BMWs of the high-tech crowd".

John Bradley, a senior editor for Outside Magazine, said the magazine was looking for "smallish" towns that could blend outdoor treasures with an active nightlife.

"It's that juxtaposition in lifestyle of sports and culture that makes Santa Cruz unique," said Bradley. In its profile of Santa Cruz, Outside recommends hiking in Henry Cowell Redwoods State Park, surfing of Cowell's Beach and tasting local wines at Soif Wine Bar.

Living in paradise does have its drawbacks, though.

Resident Kris Carson, 60, admitted it was hard to make a living in Santa Cruz, and the housing prices don't help.

Santa Cruz has one of the highest costs of living on Outside's list.

But Carson said it's worth it because, "Santa Cruz lets me be myself" As an avid sailor Carson said he loves being near the water. He also acknowledged Santa Cruz's proximity to San Francisco as a bright spot, especially because Santa Cruz "is a terrible town for restaurants," said Carson, a construction manager.

Even those who don't live in Santa Cruz are influenced by its charm.

"It's magical," said Stacie London, who attended UC Santa Cruz and is now an industrial design artist who lives in Los Angeles. "It has everything you'd want for a healthy lifestyle"

London and her husband said they are considering moving here after spending just a few days in town and driving Highway 1 from Half Moon Bay. They said they are impressed with the friendliness of the people and the diverse array of cultural and physical activities. "This would probably be a great place to raise children," said Luis Herrera, London's husband.

This is not the first time Santa Cruz has graced the magazine, popular with outdoor enthusiasts. In 2003, the magazine named Santa Cruz the best college town in America.

The editors at Outside chose one town with a population less than 100,000 in each of nine geographic regions. The August issue hits newsstands July 10.

Contact your real estate agent Patti@PattiLyles.com or look at her site at http://www.santacruzrealestatehomes.com/ or http://www.luxurysantacruzhomes.com/ for upscale luxury homes or Vacation homes, beachfront and oceanview homes.

Best Towns in America Outside Magzine selected the nation's best cities, with less than 100,000 residents, to live in by region. Santa Cruz was given the honor for the California coast. http://www.gadling.com/2007/07/17/outside-magazine-s-best-towns-2007/

#1California Seaside: Santa Cruz.

Northwest: Bend, Ore.
Rocky Mountain: Jackson, Wyo.
Southwest: Santa Fe, N.M.
Midwest: Iowa City, Iowa
Northern Lakes: Duluth, Minn.
Southern: Asheville, N.C.
Atlantic Coast: Portland, Maine
New England: Burlington, Vt.

How did I help a friend & Felton Homes owner Make More Money?

Patti Lyles (Century 21 Showcase, REALTORS®) — Sat, 18 Aug 2007 21:46:44 -0500

A friend of mine Dr. (Privacy) an Felton Homes owner has owned the 10 thousand square foot strip center in Portland for 20 years. His father helped him buy it and over the years deeded his interest to my good friend. Like me he is over 50 now & his kids are all grown and done with college. He sees himself working until he is 65. Now at 60 years of age the doctor needs to make a decision: to sell or not to sell? Brought to you by Patti @ http://www.feltonrealtor.com/

His phone was ringing off the hook. Portland Real Estate brokers were calling him every day quoting sales prices that were off the charts, close to $240 a foot or $2,400,000 dollars. He and his father (who had recently died) had bought the property for $400,000, and he was struggling with his decision.

With only limited time to pay attention to his investment, he has relied on a competent property management company to help him manage the property. The property has a great cash flow. The tenants are all on absolute NNN leases. The mortgage is all paid off. Before income taxes, he's taking home close to $12,000 a month, or $144,000 a year. With a 50 percent tax rate, he nets about $72,000 a year. Yes, I mad I didn't marry him when I had a chance. NOT really! But wouldn't you like to have made that much money?

When he came down to see me at my Felton home, I had my own ideas on how he should proceed. So I took him to my CPA, to discuss his options. My CPA told him that he had $2,400,000 in equity, and he had a number of different options. First, he could do nothing and continue collecting rental income and living on that. Second, he could sell it outright, pay taxes and live off the interest on what's left. Third, he could refinance and use the loan proceeds to acquire a second property. Fourth, he could sell using a 1031 tax deferred exchange and reinvest the proceeds into a new property.

Now let's examine the last three options in a little more detail: Hang with me it is worth knowing about!

He could sell his property and pay capital gains taxes and depreciation recapture. He would net about $1,750,000 in cash. He could deposit this sum in a bank and live off the interest. Assuming a 5 percent return he would get about $88,000 a year, which would be taxed at ordinary income rates of around 30 percent (federal, state and local taxes), leaving him with about $62,000 a year in actual income. If he tapped into the capital, he could raise his pre-tax cash flow to $113,000 a year, assuming he planned on living to age 90. Randy pointed out that the interest income would shrink each year, and that once he sells the property, there would be no more appreciation, nor any way to make any more real money.

He could keep his property, refinance and use the proceeds from the refinance to acquire another property. As an example, he could borrow $1,440,000 and buy another property for $3,600,000. He would obtain some cash flow as well as interest and depreciation shelter for his current income. He could refinance and buy using up to 70 percent leverage but a safer and more conservative level would be at 60 percent leverage. This option would yield him a pretty good cash flow for his 70's and provide more than double the asset value for his heirs or his estate later in life.

He could complete a 1031 tax deferred exchange and trade into another property. CPA reminded Dr. (Privacy) Felton Homes owner that, "in order for an investor's 1031 exchange to be completely tax deferred, the value and equity of the replacement property should be equivalent to or higher than that of the relinquished property. If you take cash out or go down in value in your replacement, then you will pay taxes on that portion of the transaction."

He could take his $2,400,000 and trade into a property conservatively up to three times that amount or $7,200,000. This would grow his asset base, but may not generate the same amount of cash flow in the short term as he is currently experiencing.

The best benefit is that Dr.(Privacy) Felton Homes owner would not have to pay Uncle Sam any capital gains taxes. The challenge, in this scenario, will be to find a good property to trade into that throws off as much or more cash flow.

The 1031 exchange offers many investment options for the Doctor:

another strip center
Apartments
Industrial property
Office property
Tenant in common investments
NNN investments
Land for development

Dr. (Privacy) Felton Homes owner. ultimate goal is to maximize his income from his real estate assets in safe investments that won't require much of his time to manage. He knows that when he hits 65, he will be retiring and would like to use the cash flow from his real estate investments to support him and his wife. He also knows that his kids have no interest in real estate and plan to sell everything and use the cash for their own purposes when they inherit his real estate holdings.

Randy stresses how important it is to run scenarios for each of the exit strategies to decide what the best way to proceed is. He suggests working with a knowledgeable real estate broker to help him pencil out his decision, as any one of these options could work.

Finally Randy tells him not to sell anything using a 1031 exchange unless he has lined up his three choices (or 200 percent of the existing value of his current property) to exchange into as the tax hit would be significant and there is no reason to give the government a free $500,000.

As a result of his meeting with my CPA, Dr.(Privacy) Felton Homes owner and me (his new real estate agent) that he trusts and together we perform some exit strategy scenarios to focus their search in the right direction.

I encourage you to do the same as you plan for the success of your real estate investments. Wouldn't like to know more and find out other ways I can help you?

What's an easement? If you own real estate in the San Lorenzo Valley you should know the answer.....

Patti Lyles (Century 21 Showcase, REALTORS®) — Fri, 17 Aug 2007 12:22:52 -0500

In a nutshell, it is the right to use someone else's property.

The most common types of easements are ones we can't easily escape: they are for power, water, perhaps phone lines. The utility companies have a right to go onto your land to get to the water pipes outside your home or to the power or telephone lines in your backyard. They have a right to go there and do not need your permission, generally speaking, if the need arises. (That said, they usually do give notice unless it's an emergency.)

Easments can be given by the landowner to the person or organization that wants to use it too. This can be done for charitable reasons or for payment and it can involve cash payment for the use of the land. For instance, the right to use a driveway from one parcel to access another might be a great convenience to the person who wants the easment (it might be a much shorter route home than another alternative).

As a charitable example, an easment might be granted by a property owner to the general public to have a shortcut to a park or trail. In this case, the landowner might close the access off once a year and also post a "right to pass by permission" type of notice so that this easement is as a temporary gift and not a permanent loss of rights of the landowner. (An interruption in the use of the easement.)

A "prescriptive easement" is one that happens by accident as far as the Felton Homes landowner is concerned. In this case, others openly and notoriously used the property owner's land without interruption (as a shortcut, a driveway, etc.) for a period of years without the owner objecting or preventing that use. Eventually, the right to use the land for those purposes can become permanent. To form a prescriptive easement, the use must be open, notorious, for a period of years, and uninterrupted.

To give a real-life example, there were two Felton Homes off Zayante Road with fences and gates - we'll call them lots A and B. The the fence for Lot A extended further toward the street than that of Lot B. And the gate for Lot A opened not onto its own front yard, but onto the front yard of Lot B. (The gate was at a 90 degree angle to where it should have been.)

If the homeowner of Lot B did not object, but allowed the folks in Lot A to go through their gate and onto the land of Lot B for a period of time, it would become a prescriptive easement.

What to do? The only thing to do to prevent the prescriptive easement being formed is to object and to request (insist upon) the gate being rebuilt. Hopefully that would not require legal action. But to allow someone to cross your property without objection for a period of years is to invite the formation of a prescriptive easement.

When buying or selling a home, easments will be listed on the preliminary title report. Normally these are simply the utility easements. Not every easement is recorded, though, so do not rely on the preliminary title report for assurance that there are no easements. Home or landowners must pay attention to the use of the land and be aware of any risk of the formation of prescriptive easements. Homebuyers should check the land too and see if it appears that the property is being used by others.

Could anything be worse for a San Lorenzo Valley homeowner than a prescriptive easement?

Yes.

Adverse possession. We'll discuss some soon if you want to know more about Felton Homes this stuff call or comment. Patti Lyles. San Lorenzo Valley's BEST CHOICE in real estate 831-335-2100

How do vacation rentals work in Santa Cruz?

Patti Lyles (Century 21 Showcase, REALTORS®) — Wed, 15 Aug 2007 12:28:50 -0500

Q. How do vacation rentals work in Santa Cruz?

A. First of all this is a function of specific rules (ordinances) in City of Capitola and the lack of any rules in the City of Santa Cruz, and in Santa Cruz County areas.

As for the City of Capitola, there are strict ordinances that govern daily/weekly/vacation rentals. (That is any time period less than 1 month or 30 days.) The property must be zoned commercial and in the Village, Downtown to be rented in this manner. Also, there is a 10% hotel tax (otherwise known as room tax or transient tax) due at all times. Penalties for not paying this are extreme.

Most is positive about vacation rentals. They are a vehicle to "have your cake and eat it too".

You buy your Beach House, enjoy it when you want to (or when it's not rented) and collect about four times the normal rent per month. A rule of thumb is vacation rentals get about the same income per week as you would get per month in the off-season. Of course, you must deduct cleaning, advertising, bookkeeping, maintenance, hotel tax, and any management charges. This total can range anywhere from 25%-45% of the price charged to the guest.

Another perk is the constant appreciation that Beach Properties in Santa Cruz County have enjoyed. Even in so-called down markets, Beach Homes here have stayed strong since most are cash buyers that are not relying on large loans or high LTV's (loan-to-value) and our limited product inventory.

Contact Patti@PattiLyles.com or go to http://www.santacruzrealestatehomes.com/ for more information about real estate or buying a vacation rental.

Once you leave Capitola, both north and south, you are in Santa Cruz County designation. These areas include Rio del Mar, Seacliff, Seascape, La Selva Beach, Manresa, and Pajaro to the south. To the north of Capitola, there is Opal Cliffs, Pleasure Point, Live Oak, and the Yacht Harbor. All of these areas have no restrictions except to pay the 10% Hotel Tax.

The City of Santa Cruz also has little or no restrictions on vacation rentals that I know of except the 10% Transient Tax due. Fortunately, this Hotel Tax goes to either the City or County areas where the property is located and into those coffers for use on roads and maintenance of that local infrastructure. When choosing areas for your new beach home that you intend to rent, be sure to call one of the several local vacation rental management companies or a network of owners who want to manage their own. (You can call or email me for this list.) It is important that you ask which property areas are in most demand and exactly what amenities should the property have to get the most rent and be most desirable for vacation tenants.

In summary, the positive aspects of vacation rentals are the following: you have your own Beach House when you want it (maybe with a locked closet or room to keep your personal things on site); you enjoy the appreciation over the years; you off-set the expenses with great income; someone else (if you have a management company) takes care of the problems and maintenance; short-term rentals allow more owner control than long-term; you may need to use your assets for income gain; it's good for the economy of Santa Cruz - tourism is our #1 business. People who rent vacation homes shop, eat, and are entertained in our little Paradise. Call or email questions

or comments regarding where to buy and how it works

Trends at a Glance
(Single-family Homes)
	Sep 07	Aug 07	Sep 06
Median Price:	$710,000	$794,200	$750,000
Average Price:	$804,519	$890,040	$825,998
Units Sold:	114	137	134
Inventory:	1,263	1,301	1,300
Sale/List Price Ratio:	96.3%	97.8%	97.1%
Days of Inventory:	332	285	291
Days on Market:	89	73	78