Lisa Hayashi E-Pro REALTOR DRE#00915227's Blog

Making 60% on an income producing property

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Sun, 03 Jun 2012 10:52:28 -0700

First let’s consider a few benefits of an income producing property and what it provides:

1. Income

2. Ability to depreciate

3. Other tax write-offs, mortgage interest

4. Shelter

Now let’s take some other “investments” where people stash their cash:

1. Annuities

2. Bank account, CD, savings

3. Bonds

4. Stocks

5. Gold

I think we can all agree in some form, they can all produce income to an extent, even if you bought and sold gold regularly, one could surmise that is making you an income. Let’s see, do they have the ability to depreciate? Sure, they do, but not in the same way Uncle Sam allows you to “depreciate” for income taxes, the way he allows it for income property. Do the “other investments” allow other tax write-offs? Well, on annuities, your bank accounts, bonds probably not so much, but maybe in the case of some stocks and declining gold, maybe you can write-off their losses. Let’s try to remember; the objective for our money is to make money, not lose money just to write it off. We come to the last benefit, basic shelter. Well, yes I do mean in the traditional sense of the word, we know real estate could be a shelter, in maybe more ways than one. But the rest of the investment instruments, you cannot purchase expecting to actually live in them some day.

So, to be fair, let’s see what the return on investment could be on the other investments first:

Annuities, fixed income, rates vary, income taxed

Bank account, fixed income, rates vary, income taxed

Bonds, fixed return, rates vary, income can be taxed unless in a protected class

Stocks, income not always fixed, risky, more liquidity, more volatile, income taxed

Gold, if it appreciates can be more stable than stocks, but pretty much keeps up with inflation, unless you are trading it daily, then the spread would be taxed

Now, let’s go back to an income producing property, in fact let’s introduce the ability to leverage your investment dollars. If you take $20,000 and invest it into a property that cost $100,000, then you carry an $80,000 mortgage, but you control a property worth $100,000. Let’s add that if you rent out that same property, and for numbers sake, you can ask for $1000/month in rent, which gives you back $12,000 the first year you own it. Do you see you would have already had a 60% return on your original $20,000 investment in the first year? Now, I haven’t even gotten to the rest of the benefits and I want to ask you, in other investments, do you think you can make back 60% of your investment in the first year?

Well, I will give you stocks, if you happen to pick the right stock and it skyrocketed for some reason or another, but we know that doesn’t happen every day. In case you hadn’t notice, we have a shortage of real estate inventory in San Diego county, so now you know why investors are pulling their money out from the stock market and putting their money in real estate. Some investors are even holding on, instead of flipping and renting out those properties for cash flow.

Well, lets finish the other benefits, Uncle Sam allows an investor to depreciate an income producing property, even when it doesn’t actually depreciate, but that helps you because it reduces the taxes you have to pay. Uncle Sam as of this writing, also allows you to deduct the mortgage interest you pay if you carried a loan, and that helps you pay less taxes, also. We’ve already covered the fact that an income producing property also acts as a shelter, should you not have another property to live in, some people move into their income producing property after they have had tenants pay off their property over the years.

Now I know this is a simplification of the process, but clearly there are still good reasons to invest in real estate even if it doesn’t appreciate as rapidly, as it used to in years past. Please just tell me, you’re not holding onto a savings account that’s earning 1% when you can be making 60% on an income producing property.

Just because it’s in writing, doesn’t make it legal

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Fri, 25 May 2012 11:00:16 -0700

Many years ago, I took a Business Law class and our teacher often said in that to be “legal” everything should be “in writing”. He repeated these words throughout the class, and to a certain extent, it has been a rule for how I’ve lived my life. If you watch the “People’s Court” you might have seen that issue come up more than once; the judge would ask a claimant or defendant, “do you have that evidence in writing?”

Up until now, I thought it was a good practice to live by, until recently. A couple of months ago, we were buying a condominium and it happened to be a short sale, and in our escrow documents, the escrow company asked us to sign a form that they had created, which attempted to transfer responsibility of the seller’s expenses to us. It stated that we, as the buyers, would pay for HOA docs, and other expenses, if the short sale lender didn’t.

Well, that took me for a loop to say the least, since I always thought that escrow was a neutral party to a transaction and clearly they seemed to be siding with the sellers. Most of us in the industry know that it is usually customary for a seller to pay for the HOA docs. Here’s the problem, in a short sale, the seller is supposedly not in a position to pay for HOA docs, so this responsibility falls on the short sale lender that is servicing the mortgage(s).

This can also be a problem when it comes to a bank owned property, too. And in bank owned properties, banks will attempt to get the buyers to pay for the HOA docs from their good faith deposit, if they can slip it into their addendums. The addendums of which, buyers are supposed to review AND SIGN BEFORE getting to the end of escrow.

So, when was the last time you saw a bank provide funds to get the seller’s HOA docs to the buyer? Well, guess what? According to the civil code section 1368,

“Sellers shall provide buyers” with certain documents, including:

A statement of all regular and special assessments and fees, written by an authorized representative of the HOA

A statement of any penalty assessments levied upon the seller

A statement of assessment delinquencies levied upon the seller

A copy of the HOA’s governing documents and articles of incorporation”

With this being said, the part where the banks or the escrow company are trying to get the buyers to sign a document stating it’s okay to use an earnest deposit or to pay for HOA docs, if a “short sale seller” or BANK seller will not pay for it, seems to fall into an illegal request by these institutions printing new forms for the distressed situations we are finding in our industry Has anyone else run into this blatant misuse of the allocation of a buyer’s funds?

I’ll repeat it one more time, just because it’s in writing, doesn’t make it legal….

Mira Mesa Market Update May 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Mon, 21 May 2012 08:34:10 -0700

There are currently 32 active detached home listings in Mira Mesa, where the listing with the lowest price is priced at $250,000. It’s a 3 bedroom, 2 bath home and has been on the market for only 4 days. The highest priced home in this area is in a value range between $565,000 to $599,000. So, it looks like range pricing is back, probably because the distressed seller pricing their home vs. the traditional seller that doesn’t necessarily need to sell are on two very different pages.

Just for comparison sake, the average price for a home in this San Diego suburb has adjusted to $392,116 with an average size being 1489 square feet statistically speaking. Including distressed factors, homes are selling with an average market time of 39 days, which is a lot faster than they were selling last year.

On the brighter side, there are 122 homes in Mira Mesa that are either in contingent or in pending status. More than half of those homes are actually in “pending” status, which should close escrow within 30-45 days. Just to clarify, contingent status means a home is waiting for a short sale approval from the seller’s note holders, usually investors with interest in the property. These homes could be contingent for several months for many different reasons.

So, it looks like we are seeing a substantial decrease in inventory this year, but we are also seeing a decline in pricing compared to last year, as well. With favorable rates AND favorable pricing due to run out next year, there have been many multiple offer situations coming up in recent months. With the way prices have declined, the multiple offers must not always mean that all the offers are strong offers. We are still hovering in a buyer’s market, but there are enough offers being placed on a smaller inventory to make sellers feel they are in control.

Mira Mesa Market Update May 2012

How to adopt a wonderful cat… It’s an adoption fair!

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Tue, 15 May 2012 12:41:39 -0700

Your chance is coming this weekend, if you can, it’s time to save a life, so it can be a cat’s life. Cats are independent and usually easier to take care of, they don’t need a walk everyday and sometimes they like to cuddle. Such a perk, when all they want is to be loved.

Where to go? Find them at the Carmel Mountain Ranch Petco Store

at 11160 Rancho Carmel Drive, San Diego, CA 92128

When? May 19^th and May 20^th

More than 60 cats and kittens are waiting for you to save them…

More details on how to adopt a wonderful cat

Carmel Mountain Ranch Market Update May 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Thu, 10 May 2012 08:29:04 -0700

Currently, it looks like active inventory has come way down, as there are only 10 active listings in Carmel Mountain Ranch. Of those 10 properties 6 of them are distressed sales. That still means our supply of homes can’t keep up with the demand in this area, since earlier this year, there were more than twice as many listings on the market. The prices of these active listings range from an entry level condominium for $160,000 all the way up to $ 650,000 for a detached home.

The average selling price per square foot is $266 spending an average of 51 days on the market. That’s showing a general trend that prices have come down a little since February, but the days on the market are much shorter, so one can conclude that homes in this area are in very high demand. Most of the distressed market is working its way through the market. We are finding more traditional sales this year to choose from and many buyers that are being discouraged with the wait times on short sales are going ahead and purchasing traditional sales, as they no longer have the luxury of waiting for a short sale to get approved. That is quite understandable since the interest rates are only going to be kept down for a limited time.

On another note, there are 14 homes that are in contingent status waiting for their short sale approval before beginning their escrows and there are another 18 homes sitting in pending status, which means they are already in escrow, waiting to close. There are also 14 homes that have sold in the last 60 days. That number is much less than February, but the market is still moving along at a fast pace. We are slowly turning into a seller’s market, the market is shifting since the prices are stabilizing.

Carmel Mountain Ranch continues to be a highly desired area to reside; they have many nice restaurants, lots of shopping and great schools, not to mention a beautiful golf course that weaves its way around the homes in the area.

Carmel Mountain Ranch Market Update May 2012

The new kind of “approved short sale” What is it?

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Thu, 03 May 2012 10:58:47 -0700

There’s a lot of confusion these days about what an “approved short sale” actually is; one might wonder if there really is such a listing that exists? Well, yes and no. In the past, an approved sale meant that at one time the seller’s home received a short sale approval for a previous buyer, and when that buyer walked away for one reason or another, most listing agents try to stay with the same terms the other buyer walked away from, for the next buyer.

If they can keep all the terms the same, then they can get their short sale done sooner than starting the process all over. If anything changes in the terms for the next buyer, most of the time, it opens up the “can of worms” for renegotiation with the investor who owns the seller’s loan. And most listing agents have already been through so much of the process to get the first approval, many are unwilling to start renegotiating with the investor again.

Unfortunately, not everyone understands that the demands of the market change everyday. Most of the time, if the market is moving up, it’s to the buyer’s advantage to take the same terms as the last buyer. It’s quite possible the value has declined in some areas since the approval was obtained, in that case, a renegotiation is better for the new buyer, as long as they are willing to wait for the process to take it’s usual long course.

The new kind of “approved short sale” is not really an approved short sale at all. The new kind of approved short sale is listed by an agent that is a few steps ahead in the process and has negotiated an approved (short sale) listing price, from the investor who owns the seller’s loan before putting the home on the market. These prices are set where the note holder has figured out what they want to net from the deal. So, the listing agent has already added all the potential necessary costs on top of what the investor wants to “net” BEFORE coming up with the listing price. At this point, the investor who owns the loan is still short, but it’s usually at a price where the loss is acceptable to them. So, the wording in the advertising should actually read, “short sale WITH a preapproved listing price”, not “approved short sale” as the buyer will still have to go through the rest of the steps of the short sale process, but it will most likely be a shorter process, than a regular short sale.

Granted, if the buyer offers the “preapproved listed short sale price”, they have a higher chance of getting approved and getting their deal done sooner, than with a listing agent that is still doing short sales the old way, that method being, by waiting on getting an offer before submitting their short sale package to the seller’s lender.

It should be noted that a buyer won’t always offer the “approved short sale listed price” and if they don’t, then the sale proceeds like a regular short sale with all the renegotiation that’s involved in a value changing market. One thing today’s buyers and sellers need to wrap their head around, is that not all short sales have to be approved, and often it’s a second lien holder that will kill the deal, by asking for more than they’ve been allotted. People need to realize that short sales are debt settlement on the investor’s side and almost always sold “as is”, so if a buyer isn’t willing to marry the property for better or worse, than they shouldn’t buy a short sale.

The next time you consider buying a short sale, you might want to find out what kind of short sale you’re dealing with. Is it the old kind of short sale that still needs price approval, or is it the new kind of “approved short sale” that has the preapproved listed price?

17161 Alva Road  San Diego, CA 92127

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Sat, 28 Apr 2012 08:39:09 -0700

Lease at the Summit, (92127) Available in May! (update; this unit has been leased)

This 2 Bedroom, 2 Bath condominium is a second story

unit with a courtyard view from the balcony and includes a

single detached garage.

The Summit community features 2 swimming pools,

tennis courts, an exercise room, a recreation room and a playground.

New carpet will be installed and it will be newly painted before the next

resident moves in. There is a dining area and a living area, as well as a

kitchen equipped with a dishwasher, microwave and refrigerator.

The side by side washer and dryer is also included and is located in a closet in the hallway.

There is a single detached garage and one carport parking

space assigned to this unit. Residents also have access to a clubhouse

they can rent for parties.

The rent will be $1400/month and a security deposit and a one year

lease is required. There is a $30 fee for a credit report; the tenant will

need an email address since it is used for the rental screening process.

Other rentals in the 92127 area

If you have an interest in leasing this unit, please contact me with any questions you may have...

17161 Alva Road  San Diego, CA 92127

Why would a distressed seller want their short sale to close escrow this year?

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Thu, 26 Apr 2012 08:52:25 -0700

Why would a distressed seller want their short sale to close escrow this year? The simple answer to this question is to save money on income taxes. The long drawn out explanation is the “Mortgage Forgiveness Debt Relief Act of 2007”. The part about not having to pay taxes on the deficiency of a short sale is almost over. The tax break expires in December of this year.

Normally, this is a decision underwater homeowners battle with for a long time, but this really is the time to be putting your short sale on the market, if you’re ever going to short sell your home. Since short sales can take months to close with all the short sales that are in the process of getting approved. We only have May until December left in 2012; if the average short sale takes 4-5 months to get approve, short sale sellers need to list their home today to save a lot of tax dollars. Unless you think homebuyers are still shopping in November, then you may want to rethink that one again. We really are at the horizon of NOT saving a lot of tax dollars if no action is taken.

I don’t usually feel this strongly about something and we are not supposed to offer tax advice, so let me premise these statements by saying, if you are in a distressed position on your home, you need to talk to your tax advisor, as they can clarify for you the tax consequences of waiting until next year, to get your negative position behind you. If your primary home is in distress, please talk to someone. It was found that 67% of distressed home owners who ended up in foreclosure last year, never sought the short sale route. A distressed homeowner has several alternatives to dealing with their situation, but that’s a blog for another day.

Why would a distressed seller want their short sale to close escrow this year?

I should explain, the IRS wants their tax dollars on the phantom “income” a homeowner is short when their mortgage is paid off for less than what is owed on it. So, if you had a $450,000 mortgage and you sell it this year for $300,000, that’s $150,000 of phantom “income” that you won’t have to pay taxes on, but only if you close your escrow THIS YEAR! Since the law was extended only for escrows that close before December of 2012.

Go ahead and read the information from the IRS…

Why would a distressed seller want their short sale to close escrow this year?

Comparing the cost of living in San Diego

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Sun, 22 Apr 2012 09:46:32 -0700

Have you ever thought of moving to a different city and wondered how much it would cost to live there? Well, people move to San Diego everyday, in fact, 30,000 residents relocate to San Diego each year. There are also many people that have relocated away from San Diego as well, for one reason or another. Many keep their homes and rend them out, because they may want to come back some day. If there ever were a city that many residents would like to call home, it would be San Diego.

People in San Diego County can experience warmer and cooler temperatures in the same day, since the land stretches from the mountains all the way to the beaches. If you are thinking about moving to or from San Diego, you may want to check out the cost of living calculator to see what the differences are between where you are and where you want to move.

Comparing the cost of living in San Diego

What to offer on a short sale

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Thu, 05 Apr 2012 10:02:03 -0700

What you can offer on a short sale involves two distinguishing factors, the first one is that you have to determine what type of loan does the seller have; the second factor is what kind of loan are you, the buyer, going to use to purchase the property?

Some of today’s homebuyers don’t realize how these two factors relate to each other, but they play a very key role in the chances of whether your offer on the short sale will be accepted. Remember that the following guidelines are minimal, and there will always be buyers that may bid higher, especially when they really want a home they are bidding on.

If the short sale seller’s mortgage is one that is insured by FHA, in the first 30 days on the market, if they receive an offer, the net to the bank has to be at least 88% of the market value. So, if you are making an offer on a short sale where a seller used an FHA loan to buy their home, then you have to start at 88% of the market value and THEN ADD the rest of the costs, such as the commissions, the closing costs, HOA fees if there are any, and any property tax delinquencies. Remember, the seller is not in a position to contribute.

So, for example if a home’s market value is $350,000, than 88% of that is $308,000 plus commissions, lets round it off, 23,000, plus closing costs, $8000, lets say no HOA fees, and the remaining taxes, $3000, and maybe termite work, and buyer’s warranty, amount to $2000, All totaled we get to $344,000 and we still haven’t accounted for whether the buyer will ask for their 1%, for closing costs if they are using an FHA loan also, which is another $3500, so roughly $347,500, which is pretty close to listing price anyway. You see how it makes it tough to offer much less than the market value on a short sale? So, if a listing agent is listing for less than market value, it could create problems at the appraisal stage of an offer.

The problem with some short sales, depending on where they are located, is that by the time the short sale is approved, the value of the property could change either higher or lower than where it started. I should add that if a buyer is using a conventional or VA loan on a short sale home where a seller had an FHA loan, they are unable to ask for a closing cost allowance. Those are guidelines set by Fannie Mae.

Now, let me finish by saying if the short sale seller had a loan that was conventional or VA, then the buyer could ask for up to 3% of their loan for closing costs, however a short sale lender is under no obligation to accept such an offer. After all, the seller’s lender is in the business to make money.

I should also add that the 88% above, only applies to short sales in their first 30 days on the market, the percentages go down from there, at 31-60 days, it goes to 86% and after 61 days, it goes to 84%. But remember one still has to add all the other costs before concluding a viable purchase price that may have a chance for short sale approval. Hopefully, if you’re a buyer in this distressed market, you now have a better idea of what to offer on a short sale.

Show us the good, the bad and the ugly, because sometimes the uglier really is better…

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Wed, 28 Mar 2012 06:33:26 -0700

I wrote a blog post 2 years ago, that was entitled, “I want the fluff everyday” and it was all about the words that listing agents could write in the descriptions of their listings.

Well, last week I showed some homes that were in decent locations, and there were some pictures on the listings, but for the most part, they left out parts of rooms that were important to see and there were some unruly yards, and “better” pictures of some work that was obviously necessary to live in these homes were absent.

Now, I don’t expect many listings to leave out pictures of even a small kitchen with a granite top, or for that matter, a garage with a workshop, but when it comes to advertising a home, I also don’t believe that a buyer in today’s market would miss, that a home is located on a street with a double yellow line either. Granted, these are only some things that a listing agent chooses to leave out when documenting a home. The problem with this controversial practice is that one, it wastes the wrong buyer’s time, and two, it shows the character of the listing agent.

Now, I understand when a home is in high disrepair, that most listing agents understand that their ultimate buyer of that home, would eventually have to be a buyer with a lot of character and a high desire to be the owner of a fixer home.

My question to listing agents is, why would you want to mislead any buyer at all? We all know it’s better to disclose all material facts. Why wait until we’re filling out papers? Why not show the home as it really is, so that a buyer can decide if they really want to deal with any problem, upfront?

We still have investors in the market that are looking for “fixers” and are willing to buy with FHA’s 203K loans. After all, aren’t they really the target market for many distressed homes on the market today? So, please do us all a favor when uploading your listing pictures; feel free to show us the good, the bad and the ugly, because sometimes the uglier really is better…

92128 Market Update 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Mon, 12 Mar 2012 15:22:34 -0700

The 92128 zip code is probably the most diverse market in the metro inland area of San Diego. It is home to two age-restricted neighborhoods located in Rancho Bernardo, along with a healthy attached and detached market for all price ranges from $134,000 all the way up to $1,450,000.

There are currently 96 active detached listings and 74 attached listings in the 92128 zip code of San Diego. The lowest price listing is going for $134,000 which is a one bedroom condominium. Just for comparison sake, the highest priced listing is a detached home priced in a range from $1,350,000 to $1,450,000 and it boasts 5 bedrooms and 5 bathrooms. The average active attached listing is priced at $270,369, with attached properties spending an average of 73 days on the market. The average active detached listing is priced at $636,370 with detached properties spending an average of 75 days on the market.

On the bright side, 39 attached homes and 47 detached homes are in pending status. There are 59 attached properties in contingent status, and only 19 detached properties in contingent status. There are 6 attached homes and 3 detached homes that have sold in the last 30 days.

The 92128 market continues to be a very popular area of San Diego to reside in. It also includes great golfing at the following golf courses:

Carmel Mountain Ranch Country Club

Oaks North Golf Course

Bernardo Heights Country Club

Country Club of Rancho Bernardo

92128 Attached Market update

92128 Market Update 2012

92129 Detached Market Update 2012, San Diego, California

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Thu, 08 Mar 2012 08:28:40 -0800

The 92129 zip code is located in the Northwest metro area of San Diego, California and until the early 2000's, it was considered to be Rancho Penasquitos, but has since added many newer neighborhoods in the Torrey Highlands area. The community is also home to 2 high schools within the award winning Poway school district and those are the well-established Mount Carmel High School as well as, the newer Westview High school.

There are currently 69 active listings in the 92129 zip code area, and it can no longer be referred to as just the Rancho Penasquitos area, as a portion of the larger detached market is located in the Torrey Highlands area. Of those 69 active listings, 12 of these homes feature swimming pools, 16 are single-level homes, and 12 of those actives are short sales. So, in raw numbers, that means 17% of this market are short sales at this time. That may sound like a large number, but compared to last year, it's quite a drop in the distressed category, considering there are 57 homes that are not waiting for the seller's lender's approval and will most likely close faster once they get under contract.

On another note, 42 homes are in pending status and they range from $400,000 up to $892,300. Pending homes are a good indicator of movement in the market and what is actually "selling" since they are all in escrow getting processed. There are 27 properties in contingent status, ranging from $410,000 up to $999,000 (which is a good sign that the contingent number of the market is now lower than the pending number of homes, since last year it was the other way around). Of the 69 active listings 41 of those homes are over 2000 square feet, and most likely above the median average of the rest of San Diego.

Still, in the last 30 days, only one home was in "sold" status, so the processing of sales are still very slow. Look for it to pick up as the weather warms and the height of the moving season peaks. The 92129 market in January had about a 5 month supply of inventory which actually hit a 12 month low.

Since the Rancho Penasquitos and Torrey Highlands area hosts secondary schools with high ratings, it has always been in high demand for many families. It’s still a very desirable area for many because it tends to have the ocean breeze, but also gets a fair amount of sunny weather. Many residents have lived here a lifetime and love to call it "home".

Search for homes in San Diego County

92129 Detached Market Update 2012, San Diego, California

Rancho Penasquitos Attached Market Report 2012, San Diego, California

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Fri, 02 Mar 2012 22:33:43 -0800

Rancho Penasquitos is located in the North inland area of San Diego, California. The 92129 zip code area is home to the Los Penasquitos Canyon Preserve which has many walking trails that cover 4,000 acres, an area that also includes Lopez Canyon. It is called home for roughly 52,000 residents and is conveniently located right next to Ted Williams Parkway (hwy 56), which can take most I-15 commuters right over to the coast and the Del Mar beach area, as well as the Del Mar Fairgrounds.

More Overview for the Rancho Penasquitos Community

There are currently 18 active attached listings in the Rancho Penasquitos community. The listing with the highest days on the market belongs to an attached home with 210 days on the market boasting 840 square feet, and going for $149,000. Attached homes in this neighborhood are currently listed at an average price per square foot of $222. According to their sold prices, the average price is at $203,991, with properties spending an average of 129 days on the market when combining distressed and traditional home sales.

On the bright side, 20 homes are in pending status. There are 24 properties in contingent status, (which means the short sale inventory waiting for approval, in this area is still relatively high). Still, this market is in relatively strong demand, because many homebuyers love the location in relation to the short drive over to the coast and some people prefer the cooler breezes than the warmth found on the East side of the I-15 in Poway. Rancho Penasquitos is still considered part of the award-winning Poway School district, too. Since the Rancho Penasquitos area is also home to Westview High School, one of the newer schools in the PUSD, it’s still going to be in high demand for families with high school students wanting a progressive curriculum.

Search for homes in the San Diego area

Rancho Penasquitos Attached Market Report 2012 San Diego, California

Seven Oaks Market Update 2012 San Diego, California

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Wed, 29 Feb 2012 12:01:33 -0800

Seven Oaks is an age-restricted neighborhood located in Rancho Bernardo, which is in the Northern metro area of San Diego, California. The age restriction is for residents who are at least 55 years of age, so one might call it a senior community. There are many activities, such as Ladies’ Bridge, RB Travelers, Hikes, a Garden club, and the Red Hatters club, which keep residents that live there quite busy; the community also has a clubhouse and a swimming pool. The area is well maintained and nicely located, as it is near the Von’s shopping center, even some streets within walking distance.

There are currently 14 active listings in the Seven Oaks neighborhood, it’s also located in the 92128 zip code of San Diego. The listing with the highest days on the market belongs to an attached home with 327 days on the market boasting 962 square feet, and going for $182,000. Just for comparison sake, homes in this neighborhood when blending detached and attached homes have an average price per square foot of $214, according to their listing prices. The average price is at $296,486, with properties spending an average of 63 days on the market when combining attached and detached homes.

On the bright side, 11 homes are in pending status. There are no properties in contingent status, (which means the short sale inventory in this area may be lower than others because of the nature of the type of property that exist here). Many seniors put a fair amount of cash down when purchasing their home at this stage in their lives.

For those sitting on the fence, and waiting for this market to go down even further, they have another thing coming. This market is in relatively strong demand, because many homebuyers in this age group are looking for single level homes that are modestly priced. We have a high demand for this area, since the early baby boomer generation has been retiring for the last 4 years, if they started to do that when they turned 62. Most likely, this demand will grow in the next 15 years as more baby boomers move to San Diego and seek out senior communities.

As for the entry-level market (condominiums in this area priced under $250,000), there are only 4 attached homes available currently. Since the Rancho Bernardo area has always been in high demand, it’s still going to be a challenge to find a home for everyone who wants to retire in San Diego, since people like living where the weather is mild, and the activities are plentiful. Home prices in this area should hold steady, if not be rising in this market, moving forward.

Check out Proposition 60 and Proposition 90

Seven Oaks Market Update 2012 San Diego, California

The Stickiness of Your Offer

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Wed, 22 Feb 2012 08:59:48 -0800

The stickiness of an offer, in my opinion, is how close a purchase offer of a home is to the listing price. Usually, but not always, listing prices are determined by a comparables report, before they are placed on the market, but there are many factors that weigh in on what a property should be listed for, because every home is different in relation to the other homes that sold before it.

When homebuyers make purchase offers on the current homes available, only they can emotionally determine how much they want a property in relation to how high they make their offer. A seller is sure to get an impression on the amount of the offer alone. If the price that is offered is so low that the seller feels it's not that "sticky" or close to the listed price, than quite often, they are insulted, or get the impression that the buyers simply don't want their home enough to make a better offer to begin with.

A less emotional and more objective way to determine price when making an offer, is to look at the sales statistics and the trends of prices in certain zip codes. The proportion of the average listing price in relation to the average selling price should help to determine a winning price. So, for example if one looks at this chart which represents in January 2012, San Diego County's sale statistics for detached homes, we can see that in the zip code 92127, the average sales price was $723,219 and the average listing price in that same zip code was $753,176. The difference meaning that the homes in the 92127 zip code were getting 96% of their listed price in January.

So, for numbers sake, that would mean someone making an offer on a home that's priced at $325,000, would look more serious to a seller, if they made their offer at 96% of the listed price, or $312,000 or higher, depending on how much they liked the home they were making their offer on. This also would depend if they happen to be making an offer in a zip code that had the same statistic.

So, have you determined yet, whether your last property was determined on the stickiness of your offer?

Sorrento Valley Market Update February 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Mon, 13 Feb 2012 14:59:14 -0800

Sorrento Valley has a very unique housing market, since it's host to many major businesses and has a limited amount of residential property in surrounding areas. There are currently 9 active listings in the 92121 zip code, also known as Sorrento Valley, UTC, or otherwise known as University Town Center, named after the mall in the area. Of those listings, 2 are distressed sales. The listing with the highest days on the market belongs to a detached home in the Shaw Lopez development which was designed by a nationally recognized architect. The prices for those homes are at 3.3 million which brings up the sales averages for the general area. Just for comparison sake, homes in this neighborhood when blending detached and attached homes has an average price per square foot of $464, according to their listing prices. The average price is at $1.3 million, with units spending an average of 88 days on the market when combining the different types of properties.

On the bright side, 6 homes are in pending status. There is only one property in contingent status, (which means it's a short sale waiting to be approved by the seller's lender). All in all, the pending transactions far outweigh the one contingent sale, which is a good sign that we are getting much less short sales coming into the market going forward, since lenders stopped making those subprime loans in 2006. Many distressed homeowners have worked their way out of the current inventory.

For those sitting on the fence, waiting for this market to go down even further, have missed their chance if they haven't bought already, unless something major happens, demand will continue to rise in this area more than other coastal areas. I believe this because their entry price points are a bit lower than more expensive ocean view areas. Homeowners in this area tend to stay longer, because they like where they live and its easy access to the ocean, as well as the businesses nearby.

As for the entry level market (condominiums in this area priced under $300,000), there is not much available currently, to be exact, there's only one listing and it has 885 square feet, with 2 bedrooms and one bath. Right now, it's priced at $269,900 and will most likely receive more than one offer, the closer we get into the high buying season. Since the Sorrento Valley and UTC areas have always been in high demand, it’s still going to be a challenge to buy here moving forward, because some of the area complexes have issues that preclude a buyer from getting suitable financing. With that being said, the housing inventory for San Diego's coastal areas will always have a higher demand, since people like living near the ocean and the cooler weather it offers, therefore it is my opinion when the market recovers, their prices will steadily move higher before the inland areas and the cities on the rims of the county.

Sorrento Valley Market Update February 2012

Carmel Mountain Ranch Market Update February 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Sun, 12 Feb 2012 11:55:46 -0800

There are currently 21 active listings in Carmel Mountain Ranch, 6 of those are distressed sales. The listing with the highest days on the market belongs to a townhome in the Collage area that has been on the market for 253 days so far and is priced at $285,000. It's difficult to say why it hasn't sold yet, but when buyers have other choices in that price range, even with 2 bedrooms, some might choose to go detached instead.

Just for comparison sake, the average home in this neighborhood when blending detached and attached homes, the average price per square foot is $283 spending an average of 70 days on the market combining the different types of properties. This figure has gone down substantially since December when it was much higher. This indicates that more homes are being sold and being seen going into the higher traffic season.

On the bright side, 20 homes in Carmel Mountain are in pending status. There are 10 properties in contingent status, (which are usually short sales waiting to be approved). All in all, the pending transactions are twice as much as the contingent ones, which is a good sign that we are getting fewer distressed sales coming into the market. For those waiting for the market to go down even further, if they are not shopping this year, they will miss their chance at their blue moon. The inventory going forward will be less distressed homes and when prices begin to rebound we'll have owners staying put, but since lenders are lending again, the market is predicted to be moving along this year.

As for the entry level market (condominiums priced under $150,000), statistically speaking, there are not that many left in the 92128 area, 3 to be exact and they range from 561 to 708 square feet, no doubt, most first time buyers know they are fortunate to live in the area at these entry level prices. Right now, they're ranged from $129,900 to $140,000.

In summary, the housing inventory for San Diego's highly commutable areas will always have higher demand, therefore their prices will steadily move up before the rest of the market. Since Carmel Mountain Ranch has always been in demand, it’s still going to be a highly desirable area moving forward, because it's located in the award-winning Poway school district and has everything the distinguishing buyer is looking for.

Carmel Mountain Ranch Market Update February 2012

Why the Rhino says, 2012 is the year to move in San Diego

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Wed, 08 Feb 2012 15:26:44 -0800

Those of you who remember the last 5 years, should recall that back in the fall of 2006, mortgage lenders stopped granting subprime mortgages, so most of the lending that followed had very conservative lending standards. Fast forward through the next 5 years where many loans have adjusted and that brings us up to last year, 2011 which took us into a sea full of distressed property; the loans that had adjusted to higher rates and forced borrowers to default were getting behind us. Not that all the distressed property would disappear, but there is a lot less of it on the market than there was last year at this time.

If you've been looking at homes lately, you will notice a shortage of inventory from what you saw last year, at least in San Diego county. As usual, in the more desirable areas you will continue to see less inventory and higher prices because the demand is just higher. More buyers making offers on the homes that are located in the sought-after areas has always made buying more difficult for anyone not prepared to compete. If you are approaching this market thinking that it's still a buyer's market, you need to realize that there has been a lot of pent up demand and there are other buyers that have been saving their cash, too. Today's sellers will be forced to choose the buyer who is most prepared with their preapproval letter and willing to submit the best offer and has the most cash down, to finish the escrow with them. If you were a seller you would do the same.

One might feel that a "traditional" sale is the best kind of seller to be dealing with, because not dealing with a short sale lender or a long process would be ideal, but the difference between them and a distressed seller, is their motivation to sell. If a traditional seller doesn't get the price they want, then they have the option to rent out their home, and since rents have gone higher, they win either way.

As if all that is not enough, we have 4 other factors that are making 2012 the year to move in San Diego. Everyone keeps talking about how low the rates are, but we have truly seen historic lows this past quarter; it is unheard of, but the Federal Reserve is pledging to keep rates low through 2014! They know that if they can't get this housing market to recover, the rest of the country's economy doesn't move either. The funds rate is at zero, what more can the Fed do? Will they keep that rate at zero for 2 years? Your guess is as good as mine.

It's already been predicted that prices will be going up with the inventory shortages, as some of the more commutable areas have already stabilized and their values are higher than they were 2 years ago. Equally amazing are the employment numbers we are seeing in the county. Almost 25,000 jobs have been added to our local economy in the last year, by comparison there were only 1800 the previous year and the 3 years before that we had negative numbers. Remember when businesses were leaving in droves 2 years ago? Well, they are coming back now, because San Diego is "affordable" again. Unemployment is down to 8.8%. Last year we were at 10%; what does all this mean? Lower rates, higher jobs numbers, higher rents, lower inventory, prices stabilizing are all signs of an economy that is recovering. What more evidence do we need to commit ourselves to our future?

5 things to consider when choosing your next home

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Fri, 27 Jan 2012 11:49:45 -0800

As REALTORS we probably answer hundreds of questions when working with our clients, before their home buying or home selling experience closes escrow. Some people have a list of criteria for what they want; most people are pretty sure of where they need to be, but the aspects that are going to affect your resale value will be found in these characteristics:

1. Location, obviously, a certain area for most people is desirable; whether they choose to live in a newer area in a townhome vs. living in an established area in a detached home, is clearly a personal choice for everyone. Once you can decide where you want to live, you will find yourself, having a preference as to how the home is situated in relation to noises, such as air traffic, road noise, freeway noise, and even after that's done, there is more to consider. Some people also want to know if the home is facing in a certain direction or that the "feng shui" situation is going to fit into their life.

2. Safety, crime statistics are another concern; how safe a resident feels in their home is paramount, especially if someone wants to be close to a school or shopping center, they want to know they can walk there without being accosted. For this, we refer them to a crime map. In the maps, you can put in an address to see what the local crime activity is and get an idea of what's close by.

3. Schools, for some this may not be an important consideration, but for resale value, it will decide how marketable your home will be in the future. To research the accountability of local schools we refer clients to another website that grades schools; look for great schools here.

4. Commute, again this will be a personal choice, but it's more important to choose an area accessible to a lot of different employers in your industry vs. where you currently work. It sounds a little odd not to want to live close to work, but not all jobs last forever, so if a home is centrally located, there is a higher chance, that the home will sell reasonably faster than if it's located on the outskirts of a county vs. being more easily accessible to major businesses.

5. Everything else, services such as hospitals, shopping, restaurants, libraries and what is available for your extra-curricular activities; other considerations include walking trails, beaches, hiking and parks. All the other things we do and need to do in our lives, and how accessible is it to us? What's your priority in your life? Everyone is different. If you like being active, you might want to be near a gym or if you want easy access to transportation, if you don't own a car, being near a bus stop might be most important.

Wherever you decide to live, it will take a lot of decision-making on your part. Hope this list helps for your future move, because no matter where you live, if you don't make your own decisions to decide your future, those decisions will be made for you, one way or another.

Rancho Bernardo attached market update for 92127, 92128 January 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Tue, 24 Jan 2012 13:24:11 -0800

Well, here we are in January 2012, and in this first quarter of the year we are looking at a lot of attached inventory available in Rancho Bernardo for one reason or another. There are currently 146 attached properties that are active, 43 of them priced at $200,000 and below. The lowest priced condo on the market is in the 92127 zip code and is priced at only $139,998, most likely a short sale, but still in a very desirable community. Mixed in the inventory there is about 17% age-restricted properties, which means you need to be at least 55 to live in these areas.About 39 properties are townhomes or twinhomes and range from $214,900 all way up to $479,000.

In contingent status we have 5 properties, one being a twinhome that has been on the market for over 136 days so far. In pending status, we have 60 properties ranging from a one bedroom priced at $120,000 to twinhome that has had over 134 days on the market priced "ranged up" to $449,888.

In the sold category, good news, we have 24 sold properties in the last 30 days. That's a good sign that deals are still closing although it seems like a snail's pace, some properties still have some short escrows when there is no lender involved. For example, 6 of those that closed escrow, spent less than 30 days on the market. That's encouraging to say the least. So, there you have it, your Rancho Bernardo attached market update for 92127, 92128 January 2012.

Weekend happenings in San Diego, January 2012

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Thu, 19 Jan 2012 11:24:03 -0800

Antiques and the Chinese people, what do they have in common? My answer would have to be, a very interesting history, and a very rich culture, indeed. But what do they both have in common in San Diego? Well, they both have festivals coming up!

Del Mar Antique Show and Sale

The Del Mar fairgrounds is hosting San Diego county’s annual Antique Show and Sale this coming weekend. It’s always interesting to me because I used to work part-time in an antique store and there is a wealth of history wrapped up in all the different items found there. There will be people available to appraise what you may have and there will also be people who restore and repair antiques present that could help you as well. It's located at the Via de la Valle exit off interstate 5, go west.

The Antique show runs from Friday through Sunday, January 20^th to January 22^nd, 2012. The admission is $8 and there’s also a 50% internet discount coupon at their website. It’s on the left side. So, that’s what’s happening this coming weekend…

San Diego Chinese New Year Food and Cultural Fair

And NEXT WEEKEND is another annual event, the San Diego Chinese New Year Food and Cultural Fair! On Saturday, there will be a lion dance that opens the ceremony at 10am and there’s also going to be a parade at 12:30pm. They usually have food booths and vendors to shop and browse, too. For a complete list of the day’s happening visit their website and check out the “Entertainment” section.

The event is located downtown on 3^rd Avenue and J street. It will run on Saturday and Sunday from 10am to 5pm. It doesn’t hurt to arrive a little early to find parking, especially if you want to see the opening lion dance. The drums are sure to wake you up and scare the evil spirits away. But if you miss that, there is another lion dance scheduled at 4pm. I have been told that the year of the Dragon is the luckiest for those born in these years, as I have read that they are symbols of luck, peace, virtue and long life.

Is there a chance of meatballs in Carmel Mountain? You betcha!

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Tue, 10 Jan 2012 18:30:49 -0800

The Cafasso Meatball Company is this fantastic meatball restaurant we had been waiting to try since before Christmas. Well, we finally got a chance to drop by there on our way home last night and boy, was it worth the wait! Located in the same shopping center as the Home Depot in Carmel Mountain Ranch, it’s so convenient to pick up dinner there and take it home. The prices are reasonable and the menu is kid friendly. The meatballs are gigantic and rarely does it happen, but they actually had something for everyone in my family! You see, in my family, I have one daughter that can’t eat beef, and presto, Cafasso makes turkey meatballs, she said they were yummy too, and she loved the spaghetti, too! I have another daughter that needs to eat gluten free. Well, they also have a gluten free meatball, too. So, for all you gluten free eaters, this is an item they will keep on their menu just for you, but you really need to get in there and try them to keep them on the menu!

“Like” them on Facebook

I tried the beef and bacon meatball myself, very delicious! I even had a chance to talk to one of the owners, and found out that the roots and recipes of the restaurant come from a restaurant that was opened for 30 years in Huntington Beach. The owner sold that business and retired, but he is teaching his grandson to cook his recipes in the Cafasso kitchen, so his legacy will live on. Whatever you decide, whether you dine in or take out, one of your favorite stops for lunch and dinner will be the Cafasso Meatball Company.

Should a buyer wait for that short sale approval?

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Wed, 21 Dec 2011 11:39:15 -0800

Should a buyer wait for that short sale to get approved? Well, in San Diego county this year, well over 800 new homes have been built. The other part of that equation is that 30,000 people move to San Diego annually. No doubt, there will be a shortage of inventory going forward.

Now, that’s not to say that everyone who moves to San Diego can afford to purchase a home, but looking at percentages, even if only 50% of the 30,000 new residents that move here annually needed to rent, they would still drive up the rental market prices, which is likely to displace current renters if they are not able to keep up with their rising rental rates, as landlords continue to see demand grow.

So, where are those current residents being displaced? Well, there have been many renters sitting on the fence for years, waiting and saving for the opportunity to purchase a home and put more financial stability on their side. This is the year they have been waiting for! Prices are manageable at the entry level, mortgage rates are at record lows, and there are a fair amount of choices in the resale market.

The current buying environment is filled with “short sales” and opportunity, and although it is tempting for a buyer to make offers on multiple homes, banks have been monitoring identifiable numbers (parts of social security numbers) from buyers into online systems that allow them to see any overlapping information and to track fraud if it is taking place.

We are now in the third year of short sales being processed by major banks since the market began its decline, and their tracking systems are in place, so it is common, almost routine for a short sale to take about 120 days before a decision can be made for approval. If all the steps it normally goes through have been dealt with efficiently and everyone involved has done their job, including the seller and the buyer, then there should be no reason why a decision can’t be made in a timely manner.

The banks aren’t the only ones who have a system; listing agents have collected several back up offers, too. So, experience has taught us all lessons of patience and in some instances, having insurance. As the English once said, “Good things come to those who wait.” Knowing the process now, what do you think? If a homebuyer is in contract with a short sale seller, should a buyer wait for that short sale approval?

Carmel Mountain Ranch Market Update December 2011

Lisa Hayashi E-Pro REALTOR DRE#00915227 (CENTURY 21 Award) — Tue, 06 Dec 2011 13:32:19 -0800

Carmel Mountain Ranch Market Update December 2011

There are currently only 16 active listings in Carmel Mountain Ranch, where the listing with the highest days on the market belongs to a detached home that has been for sale 243 days so far and is priced at $400,000. It happens to be a short sale, located on a corner on a well- traveled road. The remarks only talk about the “cosmetic repairs” that it needs, I guess sometimes it’s tough for agents to focus on the positive side.

Just for comparison sake, the average home in this neighborhood has seasonally adjusted to $384,844 with an average of 1527 square feet in the area statistically, including distressed factors, is showing an average market time of 157 days. Unfortunately, when a home is in distress and is also sitting on the market in the off-season, it tends to smoke screen the real market value.

On the brighter side, 9 homes in Carmel Mountain are in pending status. All in all, the pending transactions outweigh the contingent properties, which is a good sign that short sales are moving along faster and more efficiently than last year.

As for the lower end of the market (homes under $150,000), statistically speaking, there are not that many left in the area up for grabs, but the one that sold came in at 100% of its listed price, no doubt, most first time buyers know they are fortunate to live in the area at these entry level prices.

In summary, the housing inventory for sought after areas will always have more buyer competition, therefore their prices will also be driven higher by the local demand in the market. Since Carmel Mountain Ranch has always been in higher demand, it’s still a great place to live and a very strategic investment going forward.

Carmel Mountain Ranch Market Update December 2011

Lisa Hayashi E-Pro REALTOR DRE#00915227's Blog

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Mira Mesa Market Update May 2012

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Carmel Mountain Ranch Market Update May 2012

The new kind of “approved short sale” What is it?

17161 Alva Road San Diego, CA 92127

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Comparing the cost of living in San Diego

What to offer on a short sale

Show us the good, the bad and the ugly, because sometimes the uglier really is better…

92128 Market Update 2012

92129 Detached Market Update 2012, San Diego, California

Rancho Penasquitos Attached Market Report 2012, San Diego, California

Seven Oaks Market Update 2012 San Diego, California

The Stickiness of Your Offer

Sorrento Valley Market Update February 2012

Carmel Mountain Ranch Market Update February 2012

Why the Rhino says, 2012 is the year to move in San Diego

5 things to consider when choosing your next home

Rancho Bernardo attached market update for 92127, 92128 January 2012

Weekend happenings in San Diego, January 2012

Is there a chance of meatballs in Carmel Mountain? You betcha!

Should a buyer wait for that short sale approval?

Carmel Mountain Ranch Market Update December 2011

17161 Alva Road  San Diego, CA 92127