Mike's Huntington Beach, CA Real Estate Blog

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

The Short Sale - Part IV*

Mon, 21 May 2007 19:22:50 -0500

Short Sales from the perspective of the Seller, Lender, Listing Agent, Buyer, Investor, and Buyer's Agent.

Listing Agents Perspective:

I am going to start out from the perspective of the Listing Agent. First not all sellers are going to divulge to you that they may be short and some may not even know that they will be short. At the listing appointment or shortly thereafter it is the listing agents responsibility to prepare with the seller a seller's net sheet. This will disclose to the seller the costs associated with the sale (real estate commissions, pro rata taxes and HOA fees, transfer taxes, escrow or attorney fees, title insurance, home warranty, repair estimates, transfer disclosures, HOA transfer costs, etc.). Many sellers are not aware of many of these items. This is the time to obtain their current mortgage or trust deed balances on firsts, seconds, and maybe even thirds.

Prior to this meeting contact your preferred title insurance company and obtain a preliminary title report. This will show any mechanic or other liens on the property as wall as tax encumberances. You can ask the owners or check with the County or City to see if property taxes are paid current to date. Do the same if there is an HOA.

I have an Excel template that I input to and it cranks out the results.

I have a good partnership with an escrow company, so if I find that they may be short I have them prepare a preliminary HUD-1 so we know more precisely where they stand on the shortage

Many agents avoid this important step, either because they do not want to lose the listing by being frank or they feel embarrassed delving into other's financial matters. Thus a short payment may not be recognized until the parties are into escrow. Then it is usually too late to work things out with the lender.

This is a critical first step. If it is to be a short sale listing, say so on the MLS. You do not want buyers or buyer's agents to be surprised.

Now, here is how a short sale agent excels. Unless the seller has already been negotiating with his or her lender, the lender may have no knowledge that this may be occuring. The listing agent needs to get an authorization letter from the sellers that allows him or her to discuss this matter with the lender. Otherwise it is privaliged confidental information that they will not discuss with you.

Next, get the documentation together to present to the lender. This could include:

Appraisal on the property - an appraiser friend may do this for free or at a minimal cost.
CMA - you want it to be low, even if the initial listing price is higher. You will be negotiating with the lenders loss mitigation people so select lower end comps, but be honest since you may need to justify it.
Contactor's bids for repairs - obviously you want the highest, but keep it in line with the market rates.
Hardship documentation from the sellers - generally no other assets or income.
Preliminary HUD-1

The next step is to contact the lender. This may take some time sice loans are sold. You need to find the current note or mortgage holder and the appropriate department. Talk to the loss mitigation person and fax to him the authorization and other documents.

Ideally you will get him or her to buy into the short sale and establish the revised listing price.

I will continue with other perspectives in Part V.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

The Short Sale - Part III*

Sun, 20 May 2007 20:49:21 -0500

As discussed in the previous "The Short Sale - Part I" and "The Short Sale - Part II", a short sale occurs when a seller's net proceeds from a sale will be less than what he needs to payoff his or hers outstanding mortgage amounts whether a first, second, or third note and any other lien holders.

Short sales are independent of the foreclosure process, however they are usually interrelated. They usually occur due to financial difficulties with the homeowner. But they could occur when someone needs to move due to a job change or other reasons, and the real estate market has changed with reduced value on the property. Thus short sales can occur when an owner is not in default of his mortgage, prior to the foreclosure process, or within the timeframe of a foreclosure process. The lenders willingness to accept a short sale usually depends on what stage it is in. Prior to initialing the foreclosure process, they usually play hardball and short sales are difficult to get approved. Within the foreclosure process, they are usually more agreeable.

Lenders do not want to own residential real estate. They cannot rent it and due to banking regulations they need to set up reserves, which ties up their capital which they can use to fund other qualified buyers.

When a homeowner is delinquent in making payments, the lender will usually allow a grace period for the homeowner to bring the payments up to date or renegotiate a payment plan. Late fees, interest, and other penalities continue to accrue in the meantime. Usually afer three months of delinquency, the lender will start the foreclosure process by issuing a NOD (Notice of Default). By law they need to allow a three month period for redemption. Then they need to advertise for three weeks about a foreclosure sale.

If it goes to a foreclosure auction, they have lost almost four months of interest on the loan. At the foreclosure auction they establish a minimum bid price. If they do not receive any bids it becomes a REO (Real Estate Owned). They now need to sell it on the open market. As you can see, time is money, so their loss mitigation people will usually accept a short sale early on to avoid the expenses and losses of foreclosure or REOs.

In part IV, I will go into the short sale process from the perspectives of the seller, buyer, investor, lender, and the real estate agent.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

The Short Sale - Part II*

Sat, 19 May 2007 12:09:55 -0500

How do you avoid pitfalls in the short sale transaction?

Now that you are armed with some short sale basics and may have made the decision to pursue this solution, there are several steps you can take to minimize your personal losses.

1. Consult an attorney and your accountant and find out how the potential negative ramifications can affect you. Real estate agents cannot advise you on legal issues.

2. Choose a competent real estate agent. The dynamics of the short sale transaction can be extremely complicated. Make sure you choose a Realtor who has the specific with short sales. The agent's knowledge can minimize the time and potential losses involved.

3. Be prepared to give the lender all the documentation required to qualify. The information requested will be similar to the needs of your origional loan package with the additional proof of hardship. Information usually requested included tax returns, pay check stubs, bank statements, copies of debt balances and payment schedules. ALL INFORMATION GATHERING SHOULD BE ACCOMPLISHED PRIOR TO OPENING ESCROW.

4. Be prepared to sign a statement authorizing your agent to deal with the lender on your behalf.

5. Be sure your agent used an experienced and qualified escrow provider. The escrow function is a critical element in a short sale close.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

The Short Sale - Part I*

Sat, 19 May 2007 11:49:01 -0500

What is a Short Sale?

The definition is simple. A short sale occurs when a lender adjusts a loan pay-off down to accommodate the sale of a property. For example, a seller might have a loan balance of $300,000 and a buyer willing to pay only $240,000. If the lender accepts the offer, he has agreed to "short sell" the pay-off down $60,000.

There are many other terms describing the short sale which you may have heard. The most common terms in the industy include:

Short Pay Sale
Compromise Sale
Write Down Sale
Negotiable Sale
Pre-foreclosure Sale
Pre-Sale
Loss-prevention Sale

Don't be confused. All of these terms describe the same principle for the same transaction. The term varies from lender to lender, however the most common name is the Short Sale.

Why would a lender accept a pay-off for less than the loan balance?

Lenders must manage and mitigate their losses. The short sale option is usually a prelude and/or alternative to foreclosure. Because banks are required to maintain reserves on all properties in foreclosure, it can be advantageous to accept a pay-off for less than the loan amount. Remember, there must be a willingness for the lender to negotiate this type of arrangement.

Who and what situation qualifies for a short sale?

There is mainly one requirement for qualification and that is proof of hardship. Hardships are not necessarily financial. The most common hardship situations are:

Impending divorse -A situation where both spouses may be able to meet the payment before the divorse, neither party alone can afford the payment afterwards.

Illness - Illnesses where the person is unable to work and continue the loan payments.

Unemployment - A situation where an individual has inadequate income to meet his/her loan obligation.

"Hardball" - For lack of any other term, hardball refers to anyone who no longer wants the property for whatever reason and will accept the consequences whatever they may be.

What are the consequences of implementing a short sale?

1. Expect derogatory credit. In the vast majority of short sale situations the seller maintains a satisfactory credit rating however, derogatory credit is a possibility.

2. Expect tax liability. A new IRS law is currently pending which will require the issuance of a 1099C for the difference between the loan amount and the pay-off amount. For example, a property with a loan amount of $300,000 short sells for $240,000. Theoretically, the lender can issue the seller a 1099C for $60,000 with applicable taxes due to the iRS.

In reality only about one half of the banks issue a 1099C because there are usually several parties involved. None of the parties involved (lender/bank. Fannie Mae/Freddy Mac or mortgage insurance) are willing to accept the responsibility to issue the 1099.

There are several davantages to the short sale. The seller can reduce his/her debt, avoid foreclosure, maintain credit worthiness and most importantly, get out from under a mortage.

However, there are also some disadvantages. Bad credit and tax liabilities can occur. In addition, any short sale from a VA loan requires payment in full (for the full amount) or the seller loses all veteran benefits including death, educational and medical until the balance is paid.

The key decision makers in the short sale process include the lender, investor and the mortgage insurer (MI/PMI). The lender (sometimes also the "investor") typically gathers all the information required to consider a short sale package. The lender will then calculate what the actual loss is and then either approve or disapprove the package. The final decision maker is the mortgage insurer. MI/PMI will only approve a package that has been signed off by the investor and require the most comprehensive support information. The process takes some time and can make a short sale transaction a very slow process.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Correction of a False Statement about ZipRealty, Inc. Made by an AR Member in Their Blog

Tue, 15 May 2007 20:37:01 -0500

Someone from my company read an AR blog, and asked me to address a false statement made in it by one of our AR members.

An AR member posted a blog about the contraversial Redfin and cited ZipRealty as another discount firm in their blog. ZipRealty is a full service brokerage. Our business model is completely unlike Redfin's.

On the listing side, we offer full services plus a featured listing on our national website. Services include professionaly printed brochures, professional photographs and virtual tours, open house advertising in the local papers, syndication of the listing to other real estate sites, open houses, for sale sign, inclusion on the MLS, as well as full representation all the way to the closing. We provide as much as, and probably more than most traditional brokerages. Our commission fee may be a little lower and varies with the market we are in. In Southern California we try to get 5%, although other brokerages may try to get 6%, I read that the national average is about 5.2%. We offer the buyer's agent competitive market rate commissions.

On the buyer's side, we get most of our leads from the ZipRealty website. To have these leads stay with us, we offer them 20% of our commission on the buy side as a rebate, which is acceptable and legal in our markets. Again we offer buyers full service and full representation. This includes showing them properties and whatever other assistance they need. We attend the inspections with them and assist with the loan process if they wish.

If you take the time to review what we do, you will not associate us as a discount firm. We take pride in our full service and customer care. We have one of the highest customer satisfaction rates in the overall industry.

ZipRealty is a publically traded national real estate company which a presence in most of the major US metropolitan markets. We are continuing to expand into other metropolitan markets. We are Internet based, however we offer personal local full service to our clients.

We are also members of the NAR, the state associations, the local associations, and the respective MLS's in our markets.

It is an insult to call us a discount brokerage and to associate us with Redfin.

I hope this AR member will correct the blog, since he or she must have misunderstood what ZipRealty is about. We should not deride the legitimate real estate brokerages on AR. I would never post a blog taking pot shots at another agent or brokerage. That is just unethical and unprofessional.

How to Make Points on ActiveRain

Mon, 14 May 2007 20:31:14 -0500

OK, I am going to share some secrets with the members of this group. This blog post is only to the members of this team and not to the ActiveRain community. This post also will not appear on my blog and also will not earn me an points. Maybe it will earn me your friendship and support on ActiveRain.

I noticed there are several others in this group who have also earned a substantial number of points. I would hope they will also share with us by posting only to this group.

I participated in Karen George's "Great Experiment" on SEO and increasing your position on Google. There are two other members of this group who also participated. We all learned a lot and Karen is a great teacher. See her blog to read about this and get involved when she does it again. I will cover SEO and how we as a group can participate in a later group post. If the other two participants want to post about it to this group only, please do.

The subject today is just on ActiveRain points. The point game can seem a little bit trite, however it is what moves us up in our city or town, county, and state on both ActiveRain and Localism. Prospects usually pick the top agents, so this is all about increasing our business. The points are just the medium to achieve this.

My current status is 64,931 points. I am #1 in Huntington Beach, #1 in Orange County, and #10 in the highly competitive market of California with Jeff Turner and others I am sure you know.

I joined ActiveRain on an invite from someone I do not know on December 9, 2006. I put in my personal profile information and like several new members went to sleep. I got active with some blogs in January 2007 and only posted one in Feburary. I really only started getting active on ActiveRain in March of this year. That is why I created this group. Thus most of what I have done is in two and a half months.

Before I go into suggestions on what you should do, let me give you my statistics.

1558 points for profile.

2011 points for invites.

35,697 points for posting 163 blogs.

8200 points for commenting on others blogs.

5800 points for linking my websites.

11,665 points for other (5225 for pictures to localism; 6290 for listing neighborhoods to the cities where I work, 50 points for first looking at my point summary, and 100 points for first sending in an email to ActiveRain about a problem or suggestion.

Now what can you do.

First the profile. I do not know how they evaluate the points (maybe someone else can comment) and the amount is small. But the profile is important for SEO. Make sure all your cities are includes and the primary neighborhoods are included. Also include any keywords you think are important to your business. You can look at mine. I have not dressed it up yet for consumers, but it has all the relavant SEO information and comes up in the front page of Google for all the neighborhoods I have listed.

Second the invites. Unless you know service providers or others that are not competing with you in your region, forget about this. I am a e-PRO and a menber of the Women's Council of Realtors, so I invited out of state Realtors, with little success. Eight responded, and of them only one is active and earned me nearly half of the points I got this way. Obviously you do not wnat to invite people in your city, town or county because they may compete with you for the coveted #1 spot that will earn you new business. points are insignificant so why go to the effort.

Third blogs. The big daddy of them all. You can post up to 10 blogs a week and earn 200 points each. That is 2000 points a week. You also earn bonus points for traffic, comments, and featured listings. Traffic and comments are keys so make sure you have a catchy title and solicit comments in your blog by asking questions. I too need to work on this, however many of my posts are to localism and the public so the titles are just descriptive. Don't worry about featured listing. The points are minimal and it is more of an ego thing. The moderators on AR all have their favorites. Although I did get 3 featured posts on ActiveRain and 2 on Localism out of 163 posts. Posta about your area and market conditions to Localism are key. This is what the public sees and could lead to new prospects. If you have posts to Localism please join the Posts to Localism Group and submit them here for AR members to comment on them.

Get involved with your favorite hobby. Mine is amateur photography so I have done a lot in the Photography group and have also created the Photoshop Elements Group. If you do not see a hobby group on AR create one. Just do a group search with key words first since there are so many duplicate groups. Don't create groups for points, you get none.

Fourth, comment! I just got wise to this. You can comment on up to 10 posts a day and earn 25 points for every comment. That is 1750 points in a week, nearly what you get for your own posts. You can see that I have not done this as much as I should do. I am generally doing better now.

Fifth link your websites to ActiveRain. I have several websites so I got a fair number of points. But if you have one or two add a link to them. You can always get a free website on Point2Homes.com

Last promote your area of business on localism. You earn points for listing new neighborhoods on Localism and for sdding pictures of your area.

I know this has been long, but hopefully you have learned some good tips.

Now in return when you see a blog from one of our members make a comment. It moves that blog up on the charts and allows others to see it and comment. This is what gets us the bonus points and you the extra 25 points.

I will talk about SEO later.

Have fun and I hope this helps our groups members.

Mike

Free Real Estate Graphics and Clip Art

Mon, 14 May 2007 13:35:23 -0500

If you are like me, you like to use pictures, graphics, and clip art in your blog posts.

I would like to pass on to you a good source of graphics and clip art tailored to the real estate industry. It is Real Estate Clip Art. Go to the site and click on "Free Graphics" in the center column. You will have access to 5 pages of graphics and clip art (100 images) that you can use on your blogs and web pages.

The only obligation is a link back to their site. This you could add easily to your AR blog in the Links Section.

Of course you could pay $25.00 per year to be a member and then have access to many more (3500 images). The choice is yours.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Five Essential Photoshop Tools And Where To Find Them

Photoshop Elements - List of All Tutorials

Mon, 14 May 2007 11:00:06 -0500

Explore the World of Photoshop with these outstanding instructional posts by contributing members of the Active Rain Photoshop Elements for Real Estate Group.

Contributions from Cheryl Johnson:

Photoshop: Adding A Border

Adding A Drop Shadow In Photoshop Elements 5

Photoshop: Drop Shadows Done The Old Fashioned Way Can Be Any Color

Adding A Drop Shadow In Photoshop Full Version

Photoshop Elements: Multiple Images

Photoshop: Lassoing A Window

Fun Things To Do With A Lassoed Window

Photoshop Elements 5: Creating A Llosa Collage

Photoshop Learning Curve

Creating A Simple Blog Banner In Photoshop

Contributions from Mike Stankewich:

Part I - Beginning Photoshop Elements

Part II - Intermediate Photoshop Elements

Photoshop Elements Tutorial I - Correcting White Balance

Creative Work with Photoshop Elements

Photoshop Elements - You Can Greatly Enhance Pictures

A Tip on PhotoShop Elements 5.0

Contributions from Craig Schiller:

TRIX FIX 12 PIX

Someone needs to tell the truth... PHOTOS LIE!

Contributions from Jeff Turner:

PhotoShop Killer Tips: Video Tutorials

Contributions from Nick Ondatje:

Using Adobe Photoshop to edit home photos

Contributions from Maureen Henry:

Photoshop Elements

If anyone knows of other useful tutorial information on Photoshop Elements that is posted on ActiveRain please submit a comment and I will add it yo this list.

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Best Time of Day to Take Photographs

Sun, 13 May 2007 19:19:03 -0500

I received an email message from an AR member which said:

"Mike, since you seem to have a good grip on photography I have a question for you. I know this should be simple but I guess I need a cheat sheet. I couldn't find anything on AR so would you be kind enough to write a blog about it?

What time of day is the best time to take photos of the exterior of the house based on the direction it is facing. Also, is there a good general time of day if I am taking several photos in an area of different places facing different directions.

Thanks so much for all your great photography tips."

Lighting is the key to good photography. For real estate photography you want to avoid shadows, so backlighting is the key. You want the sun behind you. If the front of the house faces east, the morning is the best time. If the front faces west you want to take your pictures in the late afternoon.

A good general time of the day is around noon or early afternoon on a sunny day for most exterior pictures since the sun is overhead and there are few shadows. If it is overcast and your camera has exposure compensation, increase it from +0.5 to +1.0 to brighten the picture. If not you can adjust brightness in Photoshop Elements or other imaging software.

For creative photography you want shadows, so you need to try different times to get the effect you want.

For dramatic evening photography, turn on all the house lights, and take the picture after sunset but before it is totally dark. You will see light coming out of the windows, however there will be enough exterior light to capture the details of the house. White balance will be a problem as you will have two sources of light. Take one picture set on natural light and another set on tungsten lighting. Also you may want to take one set at normal exposure compensation and another at +0.5 or +0.7. Again adjustments can be made with the photo imaging software. For an example of this check out Maureen Henry's BLOG. It is a excellent example, however a white balance adjustment in Photoshop would reduce the yellow from the windows and give it a more natural effect.

For interior room photography avoid mid day, since on sunny days the light coming in the windows will be too bright. The best times are after daybreak and just before sunset. Use a powerful bounce flash or turn on all the lights and adjust the camera white balance for tungsten lighting. If you can do neither, the white balance and brightness can be adjusted in Photoshop Elements or other imaging software later.

As a general rule of thumb pay attention to lighting, avoid shadows and get some photo imaging software. The brightness adjustment could be your best friend.

If you have questions or need me to clarify any of these points please comment and I will reply.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Part II - Intermediate Photoshop Elements

Sun, 13 May 2007 16:04:55 -0500

This is Part II of a three part series on Photoshop Elements. Here are the photo adjustment and refinishing techniques for Photoshop Element users. These are the tutorials that will help you get the most out of Photoshop Elements. These are provided by Janee's Photoshop Tutorials.

Go to the link below to get to the tutorial.

I hope you find this useful and informative. Part III will cover advanced techniques and drawing, lettering and special effects.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Part I - Beginning Photoshop Elements

Sun, 13 May 2007 15:09:38 -0500

This is Part I of a three part series on Photoshop Elements. Here are the basic tutorials for those just getting started with Photoshop Elements. They are brought to you by Janee's Photoshop Tutorials.

I hope you find them useful and informative.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

The Median Home Price Does Not Tell The Whole Story

Sun, 13 May 2007 12:46:45 -0500

The real estate market has softened in Orange County, California, as it has in most of the United States. In Orange County the median price for all types of homes (single family residences, condominiums, and new construction) was $630,000 in April 2007. This was down 0.6% from a year ago. Statistically that may be insignicant as a lot of different factors affect what the median is for any particular month.

If more high price homes sell in a particular month than condominiums the median would be higher and vice versa. With the collaspe of the sub-prime mortgage market and other lenders tightening up on their guidelines, it could be keeping many first-time buyers out of the market.

Let's just say it is a flat market pricewise. Now, are sellers netting the same proceeds after the sale that they did when it was a sellers market?

No, they are netting less. Before they could list their home, put it on the MLS, and probably sell it within a week. Discount commissions were common as their was no incentive to offer a buyers agent what is considered a market rate. Homes were sold as-is, since there was no incentive to fix them up beforehand or to agree to buyer requests for repairs. Stick a sign in the ground and sell it.

Today, there is increased inventory on the market and the sales of homes is down to 73.5% (Orange County, CA data) of what it was a year ago. Sellers now need to realize they need to do more to have their home sell. Also their listing agent needs to do more marketing and advertising.

Sellers may still get the same price that they could have realized a year or two before. That is what the median price data from DataQuick and other services tell us. That may appear as good news. However it is what the sellers net after the sale when all expenses are considered.

Selling commissions are now higher. On the listing side the agent needs to do more work and spend more money on advertising and marketing. On the buyers agent side a market rate commission needs to be offered, if the house is to receive many showings. With greater inventory the buyers agent can select those properties offering the highest commission and ignore the rest. Some may question the ethics of this, however it is commonplace.

Homes need to show well. Buyers can be selective and only choose homes that are in good shape and show well. That means sellers need to fix up their homes and make the necessary repairs that they have put off. New paint, new carpet (unless an allowance is offered, which also affects the bottom line and the net amount received) and a possible kitchen remodel may be necessary.

More and more Realtors are now suggesting the use of a professional home stager to show the home with style. This is particually important with vacant homes. This may be another necessary expense to get the home sold.

Next come the concessions that the buyer makes with his offer. The price may be right, however the buyer wants his closing costs paid or wants the seller to pay points to get the buyers interest rate reduced on this loan. In todays market, after all the negotiations have settled, the seller usually has made some concession.

Then, the home inspection is conducted. The inspector is certain to find several items that need to be fixed or replaced. With only one offer and the uncertainity when another offer comes in, sellers are no longer in a position to say no, it is sold as-is.

In conclusion, in todays market sellers are obtaining the same price as before, however are paying higher commissions, staging fees, fix-up costs, accepting purchase concessions, and making repairs identified in the home inspection. The bottom line is they are netting less.

Real estate has always been a cyclical cycle business. There have always been down times for sellers, however home ownership over a greater time period has always been a good investment, not to mention the tax advantages of home ownership.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Market Report for Orange County and Huntington Beach, California

Sun, 13 May 2007 11:05:09 -0500

DataQuick, who tracks real estate statistics in our area just released information through April 25, 2007.

The new median price for all homes in Orange County, California is $630,000. For single family residences, the median price is $720,000, for condominiums it is $459,000, and for new home construction it is $621,000.

In Huntington Beach, California the median price for all homes ranged from $577,500 to $925,000 depending on the Zip Code. In Zip Code 92648, where i live and work the median price is $925,000.

Besides Huntington Beach, I provide real estate services in several surrounding cities. Here is a list and the median prices for those cities. Where a range is provided, it is because there are more than one Zip Code for that city.

Corona del Mar - $1,606,250

Newport Coast - $2,095,000

Newport Beach -$1,162,000 to $2,100,000

Costa Mesa - $700,000 to $746,750

Fountain Valley - $665,000

Midway City - $463,500

Westminster - $595,000

Garden Grove - $390,000 to $610,000

Seal Beach - $800,000

For more details, please contact me.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Hey, Congratuations Active Rain, You Are a Big Boy Now! Kudos to the Staff.

Sat, 12 May 2007 20:02:43 -0500

I don't know if anyone noticed but at 5:52 PM PDT, ActiveRain just got its 30,000th member. A big congratuations to ActiveRain and its members.

We are growing leaps and bounds and attracting a lot of good real estate professionals in various aspects of real estate from Realtors to home stagers to builders and lenders. You name it.

This is just another of many milestones AR will have. The Localism.com site is of great benefit to the general public. On this site we help each other with advise and suggestions to better serve the public and our clients.

The way to go!

I am so happy. It is like the day I first got 30,000 points and started the Rising Stars group.

A big thank you to the founders, the management, and the staff of ActiveRain. You guys are doing a fantastic job as far as I am concerned.

Let's hear it for them! Let's comment and give the AR people our encouragement and congratuations!

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Huntington Beach's Huntington Harbour

Sat, 12 May 2007 17:45:03 -0500

Huntington Harbour in Huntington Beach, California

Huntington Harbour is a hidden surprise tucked away within Huntington Beach. You do not see much of it when you cruise along Pacific Coast Highway or spend a day at the beach. Most visitors traveling PCH recognize the area as Sunset Beach. While the boundaries do not exactly follow the outline of PCH, generally the south side are the communities of Surfside and Sunset Beach. The north side is the start of Huntington Harbour which extends northward along Warner Avenue and Algonquin to Edinger Avenue.

It has a resemblance to Venice, Italy with its many canals, although with a modern flair. Most people do not realize the five major islands and the canals were man made. The development was created so that builders could build homes on the channels. Admiraldty, Gilbert, Davenport and Gilbert Islands were the origional islands, I have an aerial picture taken in 1974 showing Humboldt Island being completed and Trinidad Island, the last of the five, still being constructed.

The best way to experience Huntington Harbour is by boat, although all the islands are accessable by bridges. The canals are lined with expensive contemporary multimillion-dollar homes, private docks, and luxury yachts.

Although primarily a residential neighborhood and a boater's paradise, there are shops and restaurants in the Huntington Harbour Mall on Algonquin and along PCH. Although the waterfront homes sell for several million dollars there are still inland homes, townhomes, and condominiums that can be purchased below a million dollars.

Christmas is a big time in Huntington Harbour. Almost everyone decorates their homes with lights and figurines to the maximum. The annual Cruise of the Lights offers narrated tours in the evening aboard boats so you can enjoy the festive decorations and elaborate lights.

Now, homes are not the only thing they decorate. Every year there is the holiday parade of boats, where boatowners decorate their boats with holiday lights and various themes. From various places on the mainland you can see this parade. It is an outdoor party night in December.

Huntington Harbour is a secuded pleasure craft port only minutes to the Pacific Ocean and is beteen the harbors in Long Beach and Newport Beach. It is the closest mainland port to Catalina Island, only 24 nautical miles away.

Peter's Landing Marina and Sunset Aquatic Marina offer guest slips and services for visiting boaters as well as slips for other boat owners that do not have their own private dock. You will see people navigating anything from canoes snd kayaks, peddle boats, Jet-Skis, electric boats to large luxury yachts and custom ocean fishing craft.

You can rent canoes and kayaks at Malibu Kayaks and Sunset Rentals. Contact Sunset Gondola for a authentic Venetian gondola cruise. Yes, Huntington Harbour does have a similiar flair to Venice.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Huntington Beach's Newland House Museum

Sat, 12 May 2007 15:17:19 -0500

Newland House Museum in Huntington Beach, California

About 50 years after Mexico ceded what is now California to the United States, William T. and Mary Newland purchased 500 acreas of swampland, which is now part of Huntington Beach. The pioneering farm family bought the land for $50 an acre. In 1898 they spent $1500 to build a home on the property. They were the only inhabitant for miles and raised a family of 10 children on the farm.

The Newland farm extended from what is now Magnolia Street to Beach Boulevard and from Atlanta Avenue to Yorktown Avenue. The origional property contained part of the old Stanta Ana River which was known back then as Gospel Swamp. They drained off the water and cleared the brush. The fertile soil that they uncovered created a very productive farm. They grew chili peppers, sugar beets, celery, and lima beans. The Newland's lived here for 54 years and were one of the most notable families in the area.

The Newland House was listed on the National Register of Historic Places and is the oldest building in Huntington Beach. It was restored and now is the Newland House Museum filled with furnishing from that era. Today there is a Newland Street, named in their honor that runs through the origional farm.

This bit of Huntington Beach history is open to the public on Saturdays and Sundays from noon to 4 P.M. except holidays. Tours are conducted by the Huntington Beach Historical Society. The museum is located adjacent to the Newland Shopping Center at the corner of Beach Boulevard and Adams Street.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Beautiful SeaCliff on the Greens in Huntington Beach, California

Sat, 12 May 2007 14:07:59 -0500

SeaCliff on the Greens

SeaCliff on the Greens is a guard-gated neighborhood located just east of Seapoint and north of Palm Avenue adjacent to SeaCliff Country Club. It offers homes in Mediterranean, English Tudor and French Chateau architectural stylings and was developed by Cayman Development in 1987.

SeaCliff on the Greens is a beautiful community and is known for the builder's use of broad, frequently-placed greenbelt areas, landscaped with lush, mature trees and occasional waterscapes. It features beautifully lush lagoon areas with calming waterfalls and ducks. Bridges, winding trails and greenbelts further enhance this well maintained community. Many of the homes abut or have views of nearby SeaCliff Country Club. The overall effect is a park-like atmosphere that is both peaceful and welcoming to neighborhood interaction.

There are three types of homes offered at SeaCliff on the Greens. There is the Estate Series with 142 single-family detached homes with seven different floor plans in a variety of architectural styles . Then there is the Master Series with over 100 single-family attached homes with four different floor plans. The third type is the Club Series wiith over 400 attached town homes with five floor plans. Many of these homes enjoy golf course, ocean or greenbelt views.

These well-designed, spacious homes can offer marble foyers, marble fireplaces, French windows, central vacuum, music systems, extensive use of windows, vaulted ceilings, crown moldings, curved walls, iron or wood hand railings, bull nose corners, main floor bedrooms, skylights and gourmet kitchens that can include downdraft cook tops, double ovens, trash compactors, double dishwashers and microwaves.

SeaCliff on the Greens is known for its lush landscape of mature trees and sidewalks that meander through greenbelts and along waterscapes. The residents of the Master and Club Series Homes enjoy community pools.

The single story and two-story single-family homes and town homes range from just under 2,000 square feet to more than 4,500 square feet.

SeaCliff on the Greens is where I live.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Tips for Your Self Promotion

Sat, 12 May 2007 10:52:24 -0500

Are you listed on DMOZ.org, the Open Directory Project. If not you are missing an opportunity and there is no cost nor a link back requirement.

For information on DMOZ click here. To see what a directory looks like click here.

To submit your website URL, your title, and description click on "Suggest URL" on the top of the webpage for the Real Estate catagory in your City or town. Here is the example for Huntington Beach. As you can see there are 77 real estate agents listed for this city.

To get to the Real Estate catagory for your city, use the DMOZ directory. For example REGIONAL > US > CALIFORNIA > LOCALITIES > H > HUNTINGTON BEACH > REAL ESTATE.

The DMOZ real estate directory for Huntington Beach appears on Google, Yahoo, and MSN searches for "Huntington Beach Real Estate" It probably does for your city or town as well. For Google they are #9 for this search at the time this was written.

A note of caution, the directory is maintained by a group of volunteer editors. You can only have a listing in one city, so choose your primary one. If you submit more than one, they consider it spam, and you will be deleted from participating in the directory. Also note that you listing will not appear automatically. It must be reviewed by an editor first and this usually takes several weeks. It can be modified in the future, but again it takes several weeks for the changes to be made. You can only submit one URL, so if you have more than one website only submit one or they will consider it spam.

NOW FOR THE GOOD PART. This will get you exposure on the GOOGLE DIRECTORY and the ALEXA DIRECTORY.

Google maintains their directory from the actual data on DMOZ.

There is also a directory maintained by Alexa.com, an Amazon company. They evaluate website traffic statistics. The directory entries are taken from the DMOZ lists and then sorted by popularity (ie. traffic and page use).

To get to the real estate section for your city you follow the same route that you did on DMOZ. Here is the example page for Huntington Beach.

My website appears as the most popular website for real estate in Huntington Beach out of the 77 sites listed.

Since most of us are into internet marketing, I thought these two tips should help you.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

How to Get the Most Money for Your House

Sat, 12 May 2007 08:53:16 -0500

Your house is on the market and you have been marketing it. All of a sudden you get an offer. The questions start racing through your head. Do you accept it as is. Do you counter on the offer? Is a better offer around the corner? Which points should you negotiate?

The best time to decide on what kind of offer you will accept is before you even put the property up on the market for sale.

This isn't as easy as it seems. There is a lot more to decide on than just price. Everything in real estate is negotiable.

People may want you to pay some of the closing costs, they may want some repairs done, maybe they want a new roof or a new furnace installed before closing.

First...

Decide what is most important to you. Do you need a certain amount of cash from closing? It is a good idea to discuss the benefits of selling your house with your CPA. In many cases the cash you get from selling your personal residence may be tax free money as long as you have lived in the house for two of the last five years you have owned it. It can be a main decision in deciding what kind of offer you will accept.

Do you need the money from your house for a down payment on another property? Decide how much you have to get from the sale of your house so you can structure what you will accept based around your cash needs.

When an offer is presented do your best to find out what is most important to the buyer. They may be asking for many consessions, but one or two may be very important to them, while others may not be very important to them at all.

They may be asking for a new roof, but may be just as happy with you lowering the price of the house a couple thousand dollars.

Now unless someone is making you a full price offer and giving you all that you asked for, it is always a good idea to counter the offer. If someone is making a serious offer on your house there is always room for negotiating.

A benefit to countering is that your house stays on the market until you accept an offer. By negotiating you may buy yourself a day or more for the chance of someone else coming in and making an additional offer on your house.

Now there is no need to get greedy. If you are happy with an offer by all means you can accept it. If you house has been on the market for a long period of time you may just be happy to see an offer. But if the house is new on the market you may be able to get a better offer while negotiations are still taking place.

If you are using a Realtor to sell your house, offers will come with a deadline for acceptance. A good tactic is to wait until near the end of the deadline to make a counteroffer. This way you do not look anxious and once again it gives you the chance that another offer may come in. There is nothing like two people that are interested in a house to help drive the purchase price up.

If you do get multiple offers on your property you are in the driver's seat. You can accept either offer that comes your way. You can also let the party of the lower offer know there is another offer on the table and see if they would like to increase their offer. Occasionally the bids will keep increasing depending on how much each party desires your house.

You also will want to make sure that you see a pre-approval letter from anyone who makes an offer on your property. You want to know that the party who is making an offer will actually be able to get a loan for the property.

If you determine the price you will accept before selling the property and use some negotiating tactics when offers come across you will make sure you get the top dollar for your house when it is time to sell.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

Customer Care

Tue, 08 May 2007 21:11:20 -0500

I treat all my customers as friends. I also know my business and the market to earn their trust as a friend.

Here is what a client said of me:

"Mr. Stankewich was extremely knowledgable, professional and hard working during all phases of both our sales and purchasing transactions. He responded to the myriad of questions and requests that we made in a very timely and thorough manner. I would recommend Mr. Stankewich to any client to assist them with either a home sale or purchase." - Dwight and Sanja Apodac

I listed and sold their home in Garden Grove, California and assisted them in their purchase of a new home in Anaheim Hills, California. They were extremely satisfied with both deals.

Then the fires started in Anaheim and I was worried about them. I called them and everything was fine. Dwight said it was interesting as they went down to the reservoir with his son and watched the firefighting helicopters picking up water to throw on the fires.

He got a free wash of his patio from the spillage of the helicopters flying over his house. Unfortunately the ash deposits landed on his house and yard.

He appreciated the call, which is the moral of this story.

10 Tips for Savvy Home Buyers

Mon, 07 May 2007 19:35:32 -0500

Get pre-approved for your home loan. This means, fill out a loan application and go through the process of securing financing. That way, when you're ready to seriously evaluate real estate, you'll know exactly how much home you can afford. And you can prove to a seller that your offer is sincere.

Explore creative financing options. During the home loan pre-approval process, ask about ways to get creative with your financing. Low down payment options, first and second mortgage combinations and first time buyer programs might help you afford more funding. Many lenders are now offering interest-only home mortgages; just make sure you thoroughly evaluate the terms for this type of home loan. Down payment grants are also available in some instances and might be worth investigating or discussing with your realtor.

Sell your existing home first.Although selling your existing home before finding new real estate to buy can be nerve wracking, the inconvenience will be offset by your ability to make an offer with cash in hand. Contingent purchases are not the best when negotiating to buy a home. Having your financing in order and your bags packed may give you the advantage in a competitive market.

Look for vacant real estate.Perhaps a seller's job has transferred him out of the area. Or maybe a family purchased a new home before putting their existing one on the market. In any case, a vacant home could be just the deal for a savvy home buyer, so have your realtor look for vacant property in your preferred neighborhoods. And keep in mind, the longer a house stays empty, the greater your negotiating power will be.

Consider cosmetic fixers.If you're handy with a paintbrush, a toolset and gardening equipment, consider buying real estate in need of cosmetic fixing. Property that lacks curb appeal needs minor handiwork or the yard overhauled could end up being the home of your dreams for a price you can afford. You just need to look beyond the ho-hum to see the potential of a cosmetic fixer.

Buy a home that's a major remodel project.If you want to live on a channel in Huntington Harbour, but can't afford a $2M home mortgage, consider buying a dilapidated cottage on a fabulous lot with western exposure. In time you'll need to gut the existing home and build from the ground up or contract significant home improvements. But in the end your property value may skyrocket. And if your carpentry and other construction skills are well-developed, you can save even more and accrue "sweat equity" during your remodel by doing much of the work yourself.

Don't discount bank foreclosures.One person's loss could be your gain if you buy real estate in foreclosure. Although the search for a decent foreclosure may take a while, your realtor should be able help. The U.S. Department of Housing and Urban Development (http://www.hud.gov/) can be an excellent resource for foreclosed properties. Because HUD houses are sold at market value, your best bet will be homes that need cosmetic work or even major repair.

Land with a manufactured home.Sometimes, to buy a home on a budget, you need to look beyond convention. Even if your wish is to buy real estate, you may have to settle for a piece of property in an outlying area with a mobile or manufactured home. Discuss this option with your real estate agent and try to keep an open mind about this possibility.

An older, smaller home.If you can enjoy life in an older and smaller home in a neighborhood or suburb off the beaten path, this could be your ticket to real estate ownership.

The cheapest house in the best neighborhood.You have your heart set on a specific - and expensive - neighborhood. Maybe it's the schools that you're interested in. Or perhaps it's the close proximity to downtown or the waterfront. In any case, a budget-savvy buyer will look for the least expensive home for sale in the neighborhood. If you're not in a hurry, you can even play the waiting game to see what properties come on the market. Your real estate agent can be a real asset in this case by investigating potential sellers.

Real Estate Market Conditions for Huntington Beach, California

Sun, 06 May 2007 11:32:30 -0500

Huntington Beach, CA March 2007 MLS Update

Here are the latest real estate market statistics* for Huntington Beach, CA. These numbers represent single family (SFR) homes and condos. The number of homes on the market where the asking price has been reduced *: 40.0%

Average	February 2007	March 2007	% Change
Asking Price	$736,984	$752,529	2.1%
Sales Price	$715,986	$734,918	2.6%
% of Asking Price	97%	98%	1.0%
$/SQFT	$427	$454	6.3%
Days on Market	109	95	-12.8%
Total Transactions	93	110	18.3%

Search for homes in Huntington Beach, CA. Read more about Huntington Beach, CA.

All numbers are from the MLS and are deemed reliable but not guaranteed. * Market numbers as of 4/18/2007: 838 properties on the market with 335 showing price reductions. Days on market reflect number of days between listing date on MLS and close of escrow.

Your Huntington Harbour, SeaCliff, and Seabridge Real Estate Expert in Huntington Beach

Mike Stankewich, Realtor, Huntington Beach, Orange County, California

10 Questions First Time Home Buyers Should Ask

Sat, 05 May 2007 15:10:31 -0500

As a potential first time home buyer, your first home purchase can be very confusing. Since a home purchase is usually the single largest purchase an individual or family can make, there are a lot of factors to consider before jumping into the home ownership club.

I have put together a list of questions that all first time home buyers should ask themselves before they make the commitment to purchase a home.

1. How much will it cost to work with a real estate agent?
As a buyer, you won't pay anything to have me work for you. In a residential real estate transaction, the seller pays the real estate commission. As an added bonus to working with me, I will give you 20% of the commission we receive from the seller. As a full service residential real estate brokerage, our company provides full MLS access to buyers as well as local real estate agents to help you select, negotiate, and purchase the home of your dreams. You can use your rebate to buy down points on your loan, pay for or lower your closing costs, or buy new furniture.

2. What is the difference between a "Buyer's Agent" and a "Seller's Agent"? Why should I work with a "Buyer's Agent"?
A "Buyer's Agent" is a real estate agent that is hired by the buyer to find the right home for the buyer. The main goal for a "Buyer's Agent" is to find the best home for a buyer, while negotiating the best price. A "Seller's Agent" is a real estate agent hired by the seller to market and sell their home. The main goal of a "Seller's Agent" is to sell the seller's home at the highest price possible. As a buyer, it is in your best interest to work with a "Buyer's Agent" because this will ensure that your agent is working for you and your best interests. Often times, when a "Seller's Agent" is acting on behalf of both the seller and buyer (when a buyer does not have his/her own agent), there is a conflict of interest, since a seller wants the highest possible price for the home, while the buyer wants the most reasonable price for the home.

3. Should I rent or buy?
In general, the rent vs. buy question compares the cost of renting to the after-tax cost of owning a home. Some factors to consider are rent increases and home price appreciation in your area. If you have a nice, cheap, rent-controlled apartment, then it may not make sense to buy. If you are planning to stay in the same place for a longer period of time and the property values in your area are getting higher, it may be a good decision to buy.

4. How much house can I afford?
In general, the amount you can afford to spend on a home is a combination of your cash on hand, your salary, and your outstanding debt. Your mortgage lender can review your financial condition and pre-qualify you for a mortgage amount you can afford. This coupled with the down payment you have available will determine the upper limit of homes you can afford. 5. What will my real estate professional do? Not do?

As your agent I will do the following:

work with you through the entire home buying process, from start to finish
search the entire MLS (Multiple Listing Service)
show you all of the homes you are interested in visiting
recommend houses which meet your criteria
negotiate on your behalf with the seller of the home
prepare the offer for the house
prepare all of the contracts associated with the home purchase
work with the title company, the lender, and the seller (or seller's agent) to arrange all necessary inspections
serve as your "point" person during the closing process
answer any questions you may have about any part of the real estate process

As your agent I will NOT do the following:

provide you with legal advice
provide you with financial advisory advice
pressure you to do anything that you don't feel comfortable doing

It is best to get legal advise from a qualified attorney and financial advise from a CPA or financial advisor.

6. When is the best time to get loan approval?
In order to have the best possible chance when submitting a home offer, I recommend that buyers get pre-approved for their home loan. Pre-approval simply means that the buyer has worked with a lender to determine what the maximum loan amount the buyer could qualify for with that lender, prior to selecting a house. Pre-approved buyers have several advantages, including increased negotiating power, since the seller knows that you can complete the transaction. In fact, some sellers will not even entertain offers unless the buyer is pre-approved.

7. What are the tax implications?
When you buy a home mortgage, interest and property taxes are generally deductible from the income taxes you itemize and pay in April. This means while monthly housing costs may be larger when you own than when you rent, what you save in taxes can make up some or all of the difference. For details, speak with a tax professional.

8. Have I seen everything on the market?
Ensure that you have seen all the properties available on the market by asking your agent. Often times, real estate agents have an incentive to only show clients their own featured listings, not all of the available listings on the MLS (Multiple Listing Service). One way to ensure you are shown every available home is to search for yourself. You can do this using my website, www.MikeStankewich.com which allows complete access to the MLS for consumers.

9. How will I know I am not overpaying for the property?
One way to ensure that you are paying a fair price for the property is to look at what other houses of similar size and characteristics have sold for in the past few months. As your real estate agent I can provide you with some comparable home sales in the area.

10. When can I move in?
After the home closes escrow, you can move in.