Southern California Real Estate Blog

WAH WAH WAH!!!! DON'T CRY ABOUT WRITING MULTIPLE OFFERS!!!!

Fri, 09 Oct 2009 18:36:54 -0500

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

-Benny Chavez

CH,CH,CHANGES CHANGES!!

Tue, 12 May 2009 15:47:20 -0500

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

WHAT'S GOING ON??? DID HOME PRICES REALLY DROP???

Thu, 23 Apr 2009 00:01:39 -0500

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

take a look for yourself!

DOWNEY HOME SALES REPORT FEBRUARY 2009

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

$0 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000 - $249,999

$250,000 - $299,999

$300,000 - $324,999

$325,000 - $349,999

$350,000 - $374,999

$375,000 - $399,999

$400,000 - $424,999

$425,000 - $449,999

$450,000 - $474,999

$475,000 - $499,999

$500,000 - $549,999

$550,000 - $599,999

$600,000 - $649,999

$650,000 - $699,999

$700,000 - $749,999

$750,000 - $799,999

$800,000 - $999,999

$1,000,000 - $1,999,999

$2,000,000 and over

(In Thousands $)

Time on MarketUNITS Total Units Sold40 Average Market Time50.2

1-30 Days	19
31-60 Days	7
61-90 Days	2
91-120 Days	2
121-180 Days	5
More than 180 Days	2

Types of FinancingUNITS

AITD	0
ASSM	0
CONV	26
CASH	5
FHA	6
CAL	0
LANDC	0
OTH	2
OWN	0
PRVT	0
TRUST	0
VA	1
NO FINANCING REPORTED	0
TOTAL	40

DOWNEY HOME SALES REPORT MARCH 2009

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

$0 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000 - $249,999

$250,000 - $299,999

$300,000 - $324,999

$325,000 - $349,999

$350,000 - $374,999

$375,000 - $399,999

$400,000 - $424,999

$425,000 - $449,999

$450,000 - $474,999

$475,000 - $499,999

$500,000 - $549,999

$550,000 - $599,999

$600,000 - $649,999

$650,000 - $699,999

$700,000 - $749,999

$750,000 - $799,999

$800,000 - $999,999

$1,000,000 - $1,999,999

$2,000,000 and over

(In Thousands $)

Time on MarketUNITS Total Units Sold50 Average Market Time57

1-30 Days	24
31-60 Days	7
61-90 Days	9
91-120 Days	4
121-180 Days	3
More than 180 Days	3

Types of FinancingUNITS

AITD	2
ASSM	0
CONV	27
CASH	3
FHA	17
CAL	0
LANDC	0
OTH	0
OWN	1
PRVT	0
TRUST	0
VA	0
NO FINANCING REPORTED	0
TOTAL	50

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

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

A FEW THINGS SELLERS COULD LEARN FROM BANKS

Sat, 04 Apr 2009 12:36:19 -0500

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

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

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

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

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

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

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

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

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

BUYERS SHOULD BE QUALIFIED BY A DIRECT LENDER

HIGHEST AND BEST OFFER WINS TIME IS OF THE ESSENCE

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

GOOD LUCK

Don't just HOPE, KNOW!!!

Tue, 03 Mar 2009 22:04:14 -0600

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

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

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

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

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

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

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

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

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

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

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

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

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

KNOW!! NOW!!

The HEAT around the corner! or (where have all the repo's gone?)

Mon, 23 Feb 2009 23:28:19 -0600

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BASIS FOR WRITING A CORRECT OFFER ON A BANK OWNED PROPERTY!

Tue, 27 Jan 2009 23:09:34 -0600

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

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

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

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

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

AND NOW THE DETAILS

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

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

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

YOUR OFFER IS NOT BETTER BECAUSE YOU HAVE 20% DOWN

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

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

YOUR OFFER IS BETTER BECAUSE IT HAS A GOOD ESCROW LENGTH

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

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

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

A picture of the famous music group The Carpenters Downey, California Home

Mon, 19 Jan 2009 20:36:28 -0600

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

And how it looked in the album Now and Then

MY 2009 PREDICTION OF THE REAL ESTATE MARKET.........

Wed, 14 Jan 2009 01:30:40 -0600

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

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

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

here it goes:

2009 Will bring double the amount of forclosures than 2008

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

Interest rates will remain within 5 and 6 % till 2010

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

Lenders will continue to use high standards to qualify

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

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

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

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

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

R.E.O. explained to the best of my knowledge!!! (Real Estate Owned by a Corporate Entity)

Mon, 08 Dec 2008 23:41:33 -0600

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Short Sale explained!!! To the best of my knowledge!!!

Mon, 08 Dec 2008 23:29:06 -0600

When a homes value is less that the amount owed on a mortgage, and the home owner is late making

payments on the mortgage, the bank will begin a forclosure process. If the home owner wishes to save

his credit rating and avoid the forclosure, a real estate agent is hired to market the home for sale. Since

the homes market value is less than the amount due on the mortgage, the agent begins a short sale

process. Most often we need to stop the forclosure process so we price the home below market value to

attract attention which in turn leads to offers on the property. Once an offer is accepted by the home

owner the bank reviews the offer and either accepts the offer or sends a new approved price which is

higher. In the event the approved price is higher the agent relists the home at the new approved price

and sells the home at this price. Sometimes the approved price set by the bank is higher than the real

market value this sometimes causes the home to not sell and the bank ends up forclosing on the home.

This short sale process takes anywhere from 2-6 months. In other words short sales are very uncertain

and can waste a lot of your time. In my experience you are better off looking for a home that is a

regular sale, or a bank owned sale. Unless this home is absolutely the one you really love then I would

say you should spend the time in the short sale so you can aquire this home.

>>>BE THANKFUL FOR WHAT YOU'VE GOT!! PLEASE READ YOU WILL LOVE IT!!!<<<

Thu, 27 Nov 2008 22:28:18 -0600

I would like to share with you a quick exerpt from a book my broker Bruce Mulhearn wrote called :

the exerpt is called Eradio and it goes like this:

How do you make your mark? I was teaching a three-day seminar for 150 realtors taking their Certified Residential Broker designation course. I noticed Eradio Diaz in the front row, a blind Cuban refugee who had passed his real estate examination orally.

At the first break, I learned he was managing an office of 20 salespeople. Eradio was there to gain additional management expertise.

Working as a real estate salesperson, his father was his assistant chauffeuring his son's specially designed limousine. Eradio's typewriter was positioned at the back of the car; he typed contracts by touch, knowing exactly where to place a specific line of information. In addition, he owned a Braille calculator for completing his backup numbers.

When with buyers, they "showed" Eradio property. During the process he asked the buyers to describe each room as they inspected the home together and always requested they let him be aware of the amenities that appealed to them most. The seller's net sheets and buyer's closing costs were calculated by the prospects participating as Eradio guided them through the process.

Returning to Los Angeles, I called Eradio to receive permission to write his story in the California Association of Realtors magazine. His mother answered the phone and said Eradio was not home. She'd explained he'd had a problem with his car and the mechanic was unable to repair it. Eradio traveled to the garage and by touch he'd shown the mechanic there was a short in the electrical circuits. The mechanic then fixed the problem.

* * * * *

I was reminded of the old tale,

"I was saddened and defeated because I

had no shoes----- until I met a man who had no feet"

ERADIO WAS AN INSPIRATION.

AND THE WAVE KEEPS COMING!!!

Wed, 10 Sep 2008 22:27:30 -0500

I was begining to think that the local BANK OWNED market was dying down. Silently thinking to myself a

market without REOs would be GREAT!!! Looking in my local market area I began to notice Downey: 32

Bellflower :21 Cerritos: 36 etc etc etc. The numbers of REOs were dropping by the minute. UNTIL I spoke

to a southern california asset manager who said, "We've got another wave coming! I am receiving an

account with 248 REO's in the following weeks! Just when I thought we were out of the water again were

going for another dive! What this means for my local market is LOWER PRICES!! We went from $575,000

for a 3 Bedroom 2 Bath to a whopping $328 for the same home within a year and a half. INCREDIBLE is

what I think, when will it end??? I wish I knew...... If I can predict I am going to say that the end of 2009

sounds like a evening out in the market. Many recent clients are speculating that the time is now. Sales in

my local area went up last month as prices dropped! We expect the same for the months to come as we

cruise in to the end of the year. As with all investments, you will never know where the bottom is. As a

buyer you may want to know the amount of homes listed on the market in the past 2 months prior to

purchasing and the amount of those homes sold and then how those homes stack up to the home your

thinking of purchasing. Also if you are thinking of buying a Forclosure=REO=BankOwned=Repo you may

want to submit your offers stating they will close before the end of the month. Your offer may be accepted

easier if you can close before the end of the month, banks are more inclined towards offers that can

close before the end of the month. For sellers the most important factor will be pricing! There are still a lot

of Buyers looking for turn key homes, homes that been foreclosed are beat up and need lots of repairs.

Even when the cost of repairs is $5000 I have had clients speculate the cost is more. Sellers also need to

consider offering incentives as it continues to be a buyers market, such as down payment assistance,

closing costs, home warranty and termite inspection.

BUYERS PRICES ARE LOW!! GET WITH THE FLOW!!

Thu, 05 Jun 2008 17:47:49 -0500

BUYERS IT'S TIME TO BUY!!!

PRICES ARE LOW
YOU CAN PICK AND CHOOSE FOR YOUR HOME
GOOD LISTING AGENTS ARE PRICING HOMES USING BANK OWNED COMPS
THE PRICES 90% OF THE TIME ARE RIGHT
SELLERS KNOW IT'S A BUYERS MARKET AND ARE NEGOTIATING
AGENTS ARE FOCUSING ON SERVING BUYERS BETTER THAN EVER
THE MARKET IS PICKING UP AND YOU NEED TO GET WITH THE FLOW!!

MOM is the best!

Sun, 11 May 2008 12:54:00 -0500

Only fond memories exist of MOM, where do I begin. From my first memories as a little boy getting taken

to Disneyland on a RTD bus to having all my birthdays at Numero Uno pizza in Koreatown. Mom would

always make sure I had everything I wanted. Spoiled I guess to what she could afford and even then Im

sure she would hold off on buying herself something only to buy me something. Coming home from work

to quickly make dinner, always making sure to have seconds for me. "Finish all your food, are you full? I

still have more food if your not full!" I also remember mom taking me to work with her. There was nothing

that could ever stop her from making sure I was all right. Even as I got older mom would always be there

to take my calls when necessary anything whatsoever and mom would drop whatever she was doing to

take care of me. I guess moms can prove to you what true unconditional love is. Mothers day shouldn't

be the only day to reflect on all the good mom has done and celebrate her. Mother should be celebrated

daily! In the end we are who we are thanks to mom. We wouldn't know that ultimate kindness if it weren't

for her. Thank you mom for always being there, from all the little things like making sure I looked good

on my first date, to babying me when sick. I love you and thank you with all my heart for being MOM!

Hello Loungers hope everyone is having a great weekend!

Sat, 19 Apr 2008 23:00:07 -0500

If you find yourself in sunny Southern California like myself you must be having a blast. If you are close to Long Beach there will be many parties at all the local clubs/bars for the Long Beach grand prix. Hope to see ya there!

985 S. Gordon st. Pomona, CA

Wed, 16 Apr 2008 00:27:37 -0500

This home was built in 2005 and has 3 bedrooms and 2 full baths. You can see more pictures by clicking the link below to my website www.bennychavez.com

985 S. Gordon st. Pomona, CA

Wed, 16 Apr 2008 00:27:14 -0500