Real Estate Activities in Lake Forest California

New Listing in Lake Forest - 4 bedrooms, 3 car garage, $599,900

Tue, 13 Oct 2009 20:08:24 -0500

Links

Check the Virtual Tour!

Photo Gallery

Entry

Living Room

Breakfast Bar

Master bedroom

Family Room

Master bedroom

Family Room

Eating area next to kitchen

Expanded family room

Large side yard

Big back yard

Patio cover/deck rebuilt!

Woodside Neighborhood in Lake Forest

Description

This 4 bedroom, 2 1/2 bath home is located on a large lot at the very end of a cul de sac. Mature landscaping provides extra privacy and there is plenty of room for a pool, putting green or playground equipment! Located only steps away from the Aliso Creek Trail, a nature lover will enjoy watching the birds, walking the dog, or skating or biking along the paths which lead to the Aliso Creek Beach in Laguna.

Specifics about this home:

Built in 1978 by JM Peters Company. Per last appraisal, size is 2,557 square feet.

* Formal living room with cathedral ceilings.
* Formal dining room looks out to back yard.
* Kitchen has lots of counter space, breakfast bar, cabinet space and garden window above the sink.
* Casual eating area next to kitchen has been expanded.
* Family room is large, and includes wet bar, fireplace and entertainment nook.

Upstairs :
* Master bedroom has been expanded to include office or sitting area. French doors lead out to balcony where you may sunbathe, sip your coffee, drink your wine, or just enjoy the view!
* Master bath/dressing area includes double sinks, over-sized bath tub, separate shower.
* Triple wide master closet with mirrored doors.
* 2nd bedroom with double door entry, makes nice office or bedroom.
* 3rd and 4th bedrooms are roomy.

Other Details :
3-car garage, with driveway to hold 3 more (everyone wants that!)
Interior laundry room.
New Roof (2007)
New Furnace (2008)
2 Water Heaters - One Solar and One Standard gas water heater.

Low HOA dues of only $44/month.
No Mello-Roos tax.
Current 2009-10 property taxes are 1.03% of full value.

Call Vicki for Appointment : (949) 457-0281

Features

Bedrooms:	4
Bathrooms:	2.5
Year Built:	1978
Subdivision:	Woodside
Lot Size:	6720
Garage Size:	3 Car
School District:	Saddleback Valley Unified
Square Footage:	2557
Agent Name:	Vicki Lloyd

Location

22602 Manalastas Lake Forest CA 92630

vFlyer Id: 2856960

Lake Forest Sales - September 2009

Mon, 05 Oct 2009 17:34:27 -0500

The September closed sales number of 47 properties was 19% below the number of sales in September 2008, when 58 were sold. The good news was that the average price per square foot only fell 4% since then! There may be a few more closings reported in the next few days, so I may update this to show the late closings.

Bank owned sale $120K

Read the rest of this report.....

Lake Forest - New Listing in Lake Forest II Neighborhood

Wed, 13 May 2009 15:27:44 -0500

Vicki Lloyd | The Real Estate Professionals | vicki@vickilloyd.com | 949-457-0281

25535 Sawmill Lane, Lake Forest, CA

Gorgeous upgraded home in Lake Forest II neighborhood. 4 bedrooms, 3 baths, 3 car garage, about 3,000 square feet on private corner lot.

4BR/3BA Single Family House

offered at $699,900

Year Built	1975
Sq Footage	3,000
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	3 Car garage
Lot Size	8,000 sqft
HOA/Maint	$65 per month

DESCRIPTION

Open House - Sunday 5/17 1pm

Beautiful traditional home on very private corner lot in great Lake Forest II neighborhood.

Highly upgraded:
* Remodeled kitchen
* Beautiful dual-paned French windows
* Plantation shutters
* Crown molding
* Tall base boards
* Textured ceilings
* Recessed lighting
* Raised panel doors
* Updated baths
* Game room with fireplace
* Large backyard with used brick patio, and new patio cover.

Only blocks to great elementary school (La Madera). Low HOA dues of $65/month provide access to Sun & Sail Club with super recreation facilities!

See the virtual tour:
http://www.visualtour.com/show.asp?T=1886248

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
High/Vaulted ceiling	Walk-in closet	Hardwood floor
Tile floor	Family room	Living room
Bonus/Rec room	Office/Den	Dining room
Breakfast nook	Dishwasher	Stove/Oven
Microwave	Granite countertop	Laundry area - inside
Balcony, Deck, or Patio	Yard

COMMUNITY FEATURES

Clubhouse	Fitness center	Swimming pool(s)
Sauna/Spa	Tennis court(s)	Lake
Playground

ADDITIONAL PHOTOS

Beautiful Home!	Remodeled kitchen
Big yard	Cozy Family Room
Bonus Game Room	Google Map

Contact info:

Vicki Lloyd

The Real Estate Professionals

vicki@vickilloyd.com

949-457-0281

For sale by agent/broker

Equal Opportunity Housing

Posted: May 13, 2009, 12:43pm PDT

Lake Forest Market Update - March 2009

Sun, 19 Apr 2009 20:54:25 -0500

The numbers are in, and the real estate market in Lake Forest, California is definitely more active this year than last year when only 28 properties were sold. Sales more than doubled with 69 closed sales in Lake Forest for the month of March 2009. The prices ranged from a low of $122,000 for a one-bedroom condo, up to $711,000 for a 3 bedroom lake front home.

The average price (add up all the sold prices, and divide by the 69 properties that sold) was $339,168, or $231 per square foot. This was down almost 20% from the average price of $412,000 and $276 per square foot in March 2008. The house pictured below is the closest to the average, but really closed at $325,000 after being reduced from an original list of $379,000.

The median price of the closed sales was $370,000, at $323.14/square foot! (To find the median, list all properties in order of sale price, and find the middle value, which was the #35 property.) That property was a bank-owned home and was listed for $325,500 and sold in 7 days! Note to bargain hunters - just because it is bank-owned, doesn't mean that other people might not want to bid the price up!

Search all 11,500+ homes in Orange County (some aren't even distressed!)

Thanks for visiting!

My Newest Listing - Great Home in Lake Forest, CA

Sun, 19 Apr 2009 14:26:26 -0500

Vicki Lloyd | The Real Estate Professionals | vicki@vickilloyd.com | 949-457-0281

25081 Owens Lake, Lake Forest, CA

Parkwood Estates "Geneva" Plan!

5BR/3BA Single Family House

offered at $674,900

Year Built	1977
Sq Footage	2,861
Bedrooms	5
Bathrooms	3 full, 0 partial
Floors	2
Parking	2 Car garage
Lot Size	5,200 sqft
HOA/Maint	$75 per month

DESCRIPTION

Fantastic house in popular Parkwood Estates neighborhood. Private yard with no one behind. 4 bedrooms + bonus, or 5 bedrooms. Convenient to everything - schools, parks, recreation, & shopping. Virtual tour is available at: http://www.visualtour.com/shownp.asp?T=1862571

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
High/Vaulted ceiling	Walk-in closet	Tile floor
Family room	Living room	Bonus/Rec room
Dishwasher	Stove/Oven	Laundry area - inside
Balcony, Deck, or Patio	Jacuzzi/Whirlpool

COMMUNITY FEATURES

Clubhouse	Fitness center	Swimming pool(s)
Sauna/Spa	Tennis court(s)	Lake
Playground

ADDITIONAL PHOTOS

Front of house	Kitchen
Family Room	Living Room
Back Yard	Map

Contact info:

Vicki Lloyd

The Real Estate Professionals

vicki@vickilloyd.com

949-457-0281

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 19, 2009, 12:36pm PDT

Orange County Market Update

Sun, 22 Feb 2009 18:11:00 -0600

The market continues to be busy in the lower end of the price range, and bank-owned and short sales are making up about 61% of all closed sales in Orange County.

Today, there are a total of 11,577 homes for sale in Orange County. Of those, 4783 (42%) are labeled as either bank owned or short sales. Of the 4363 that are currently in escrow, 2925 (68%) are distressed. In the last 30 days, 1018 (61%), of the 1653 closings were distressed.

Buyers are looking for the best values that they can find, and the best priced homes are usually bank owned. Short sales are closing more often than in the past, but it is still frustrating for a buyer to make an offer, then have to wait weeks or months to get an answer from the lender. It will be interesting to see what effect, if any, the President's new stimulus plan will have.

The latest foreclosure listings are now posted on my other blog for selected cities or areas in South Orange County. If you are looking in an area that I haven't included, please let me know and I'll run the list just for you!

Property Tax Reduction SCAMs

Thu, 12 Feb 2009 18:27:16 -0600

Yesterday I found in my mailbox an official looking letter from "Property Tax Assessment Adjusters, LLC". In addition to a lot of legalese type verbage, it said:

IMPORTANT : Upon a preliminary check your assessed value appears to be higher than your current market value. You may obtain property tax relief, even if you have received a reduction for a previous tax year.

For a fee of only $93, they will "advocate as my agent for the purposes of filing an application, answering all questions pertinent to the inquiry, attending a hearing, and accepting a modified assessment through the Assessor or the Assessment Appeals Board."

Our former Governor, and current Attorney General, Jerry Brown, warned today that many of these companies are complete scams and will only take your money and disappear while you patiently wait for your tax adjustment.

This is something that most homeowners can do for themselves, by contacting their county's assessor's office and asking about it. There are a few forms to fill out, and it helps if your local real estate agent can provide a list of the current comps (call me if you are in Orange County!), but the proceedure is very simple and shouldn't cost you more than the price of a stamp!

The Orange County Tax Assessor's website has a good explanation of the process, and forms available to download.

2008 Holiday Boat Parade in Lake Forest California

Tue, 16 Dec 2008 11:26:39 -0600

The annual Lake Forest Keys Boat Parade around the lake was held on Saturday, December 13. About 25 boat owners, battled the cool breezes and sprinkles off and on all day, but still turned out to show off their decorations on Saturday evening.

Several lakefront homeowners who were having parties at their homes, offered to provide judges for the decorating contest. (This also makes a good party game!) At the end of the evening, a few judges forgot to call in their results, so the final tabulation had to wait until Sunday morning, but the winners were announced, and prizes delivered by Sunday evening.

The grand prize (also known as the "Clark Griswald" award for most lights) went to John & Evy Gasca, on Arrowhead Lane. Their grandson, Bryan, gets most of the credit for the design and decorating of their boat. The "Most Creative" boat, was designed and decorated by Rex Buxton, from Huron Lane, for his very realistic looking ‘57 Chevy in an authentic turquoise and white combination. Kathy Griffen's boat, from Ponchartrain Lane, won the "Most Festive" category - based on the boat's passengers appearing to be having the most fun. (No, ladies, this is not Mardi Gras - you didn't have to flash anyone to win!)

Thanks go out to the Lake Forest Keys Association as well as to Keys resident, Tina Ross at "Our Place Restaurant" for her donation of gift certificates for prizes, and to our local music diva, Kim Beaney, of Superior Lane, for allowing us to include her song on the video.

Wouldn't you love to live in this great neighborhood and participate in the fun next year?

Check the current list of 12 homes for sale, ranging from $569,000 up to $1,650,000.

Photos are for MARKETING a Property!

Sun, 19 Oct 2008 21:04:16 -0500

At least once a week, while checking the MLS, I find awful photos that an agent has loaded in to the MLS with his latest listing. I have been collecting them in a folder for a while, and sending them to my friend, Athol Kay, a Conneticut agent who has posted them on his "Bad MLS Photos" blog. Athol has since left the business, and I decided that I will just post them myself occasionally as I find them.

To me, the whole purpose of adding photos of listings is to present the attractive features that might make a potential buyer want to come see the property in person. With that in mind, see if you can figure out why an agent would include these photos (these were all actually in the SoCalMLS!):

I would really expect an agent to let his client know to clean everything up before the photos would be taken. In addition to the clutter all over the counter, and the open drawer with something sticking out of it, this agent couldn't even figure out how to get out of the way to avoid the flash in the mirror!

If the purpose of this photo is to prove that there is a lockbox on the door, couldn't the agent have at least pulled the junk mail and coupons off the door before taking the picture?

Sellers - before you sign a listing agreement, ask the agent to show you examples of his or her other listings and the photos that were used! Just because someone says they will put 20 photos in the MLS, doesn't mean they will be 20 good photos!

If you are thinking about buying or selling a home in Lake Forest, or other communities in South Orange County California, please contact me to help!

Vicki Lloyd, MBA, e-PRO, Realtor
The Real Estate Professionals
(949) 457-0281
email :Vicki@VickiLloyd.com
http://LiveLakeForest.com

Is NOW the Time to Buy in Lake Forest California?

Fri, 17 Oct 2008 20:11:54 -0500

Now that prices in Lake Forest have declined almost 30% in the last year, the "fundamentals" that so many "bubble bloggers" talk about are getting much closer to justifying a purchase!

My word-of-mouth, shoot-from-the-hip, gut feeling, and informal survey of average rents in Lake Forest give me the following starting basis for comparison:

2 bedroom average rent = $1550

If you have decent credit and have saved up about 6% for a down payment plus closing costs (or can get a relative to "gift" it to you), and use an FHA loan with the mortgage insurance premium added to the loan balance, the payments after tax consideration are very close to the same as paying rent!

Basic Assumptions :

FICO score = 680+

Down payment = 3.5% (can be a gift from your parents, or other close relative)

*Closing costs = 2.5% (title insurance, escrow fees, loan fees, etc.)

Mortgage insurance premium of 1.75% added to loan balance

*You may get the seller to pay some or all closing costs, but you will generally end up paying a higher price by that amount.

Sample purchase of $225,000 of a 2 bedroom condo:

Down payment = $7875
Closing costs = $5625

Loan amount = $220,924 (includes upfront mortgage premium)
Interest rate = 6.25%

Mortgage Insurance = 0.5%

Condo dues = $300/month (includes insurance)
Property taxes = 1.1%

Annual interest paid = $13,807
Property taxes = $2475
Net tax deductions @25%* rate = $4070 = $340/month
*I'm not a tax advisor, and this is just a rule of thumb for estimating purposes.

Monthly payment = $1939

Less tax savings = $340

Net effective monthly = $1599

The $49 difference between paying rent and owning can be justified with the emotional reward of being able to paint and decorate your own place to your own taste, keeping your pet without a deposit, and knowing that your landlord will not be giving you notice of either a rent increase, or that he is selling it and you will be having to move!

There are currently 40 condos on the active MLS priced at $230,000 or less. In the last 90 days, 34 have closed at less than $225,000. Are you tired of making your landlord's payments?

Contact me today to get started to find your very own home!

Vicki Lloyd, MBA, e-PRO, Realtor
The Real Estate Professionals
(949) 457-0281
email : Vicki@VickiLloyd.com

Buying a Home in an HOA? Read the Disclosures!

Tue, 14 Oct 2008 11:33:31 -0500

If you are planning to buy a condo, or a house in Lake Forest, Mission Viejo, Rancho Santa Margarita, or other South Orange County area, there is a good chance that you will be buying in to a home owners’ association (HOA). If that is the case, make sure you read over all the HOA documents soon after you receive them. These are usually provided to you during the escrow process, and you will normally have 5 days after receiving these to either approve them, or cancel the purchase and get your money back.

What should you look at, or what should you look for?

Start with the budget. This will show you the items that are expected to be paid each month by your dues. Some budget items can be expected to go up almost every year - like costs for electricity, water, utilities, gasoline, insurance, and most labor. Also, look at the year-to-date actual financial statements to see how they compare to the budget. Have there been unexpected or substantially over-budget expenses? Is the income (from dues) under the budgeted amount? If there have been a lot of foreclosures in the association, the unpaid dues from those homes will have to be written off, and the shortfall will have to be made up by an increase to the next year’s dues budget. By law, in California, the HOA dues may be increased by the board of directors by up to 20% without a vote of the homeowners. If a 20% increase is not enough to cover any shortfall, a “special assessment” of up to 5% of the annual budget may be declared by a vote of the board of directors. Most associations publish their new budgets in November for the following calendar year, and the new dues assessments go into effect in January.

Review the Rules. Most HOAs have rules that address many areas of your life. Putting a basketball hoop on your garage, or a portable one in the driveway, may be restricted. Do you have a boat or RV? Many HOAs require that they not be visible from any other property or from the street, or that you may only park your RV in front of your house for the time it takes to load or unload it after a trip. Also, if you drive a commercial vehicle, know that there may be restrictions on keeping that in your driveway. Do you work from home? Some associations will not allow any kind of manufacturing or retail types of businesses, or will restrict the hours that you can operate. What kind of pets do you have? Chickens, ducks and pot-bellied pigs are often outlawed, and some associations put a weight limit on the size of dogs that are allowed. Read over the rules and make sure there aren’t any that you can’t live with!

Architectural Guidelines. Before you plan that room addition, front porch, patio cover, or major remodel to your new home, find out what is likely to be approved by the architectural committee. If you want to add a 2nd story, or change the exterior look of the home, find out before you buy that it will be allowed!

Meeting Minutes. The minutes from the Board of Directors’ meetings will tell you what is going on in the Association. Much of the time, the minutes are quite routine and boring, but check to see what issues are coming up at board meetings. Are neighbors fighting about something? Is the association failing to enforce the rules? Are they anticipating discontinuing any services, or upgrading any of the commonly owned facilities? Are there any lawsuits threatening the Association?

Buying a home that is part of an association means that you are buying ownership in that association. Do your homework - You need to know what you are buying!

Valuable Rebates from Irvine Ranch Water District!!!

Tue, 07 Oct 2008 19:34:17 -0500

Irvine Ranch Water District serves all of the city of Irvine and portions of Tustin, Newport Beach, Costa Mesa, Orange and Lake Forest. They are currently offering rebates on high efficiency water-saving upgrades such as a new washing machine ($335), new high-efficiency toilets (up to $265), weather based irrigation controllers ($60 per valve) and synthetic turf ($.30/square foot). Details of the programs and application forms are available at their website where they also have other tips to save water (and money!)

Now, you just have to figure out what to do with the old, less-efficient items!

Buying a Bank Owned Home in Orange County

Sun, 21 Sep 2008 20:28:11 -0500

I have been getting a number of calls or emails from buyers who think they want to buy a foreclosed home. After I ask them why they would want to do that, I usually hear "Because I want to get the most for my money and I've heard that foreclosures can be a real bargain."

Fair enough answer. Many buyers believe there are lots of bank-owned homes just waiting to be bought for 35% - 50% of market value. But here is what you should really expect :

If the property is priced well, you will be in competition with many other buyers, and it will probably sell for over the list price, after you and the other buyers have submitted your "highest and best" offer.
The bank will have a very one-sided contract - you will have to cool your heels and wait, and wait, and wait for them to get the contract back to you in writing, but then they will want you to remove all of your contingencies ("escape clauses") very quickly.
You will be buying the house in "AS IS" condition, even though you won't know what the condition is until you pay an inspector* to examine it in detail.
If you find that the cost of repairs will exceed your budget - too bad! They will very rarely re-negotiate the price or give credit for repairs. Your choice will be to cancel the contract, or spend more than you had originally expected.

*Make sure you find an experienced and thorough inspector! The seller (bank) really has no idea what may by right or wrong with the house and you will have no recourse if big problems reveal themselves after closing!

Foreclosure Sale at the Orange County Courthouse

Sun, 21 Sep 2008 13:52:44 -0500

I've heard for years about foreclosure sales taking place "on the courthouse steps," and had a picture in my mind of crowds gathered on a wide stairway in front of a courthouse, and furiously bidding on bargain properties. Of course, in my mind, this "crowd" would be very formally dressed bankers and wealthy investors.

Well, not only is this process not held on the courthouse steps (it's in the breezeway on level ground), but most of the participants, including the auctioneer, are dressed in comfortable shoes, and very casual clothes appropriate for the weather conditions! So much for mental pictures!

This particular property was offered at $684,000 on a defaulted loan balance of $745,800. There were no bidders, so after 3 requests for bids, it went back to the beneficiary. I expect it will be offered as an REO within the next few months, and it will be interesting to see what price is put on it at that time.

(This is the first video I have posted, and haven't quite figured out how to get the sound captured or adjusted, but the photos tell the important part of the story.)

City of Lake Forest Provides Low Rate Home Improvement Loans

Mon, 01 Sep 2008 19:23:57 -0500

If your Lake Forest home needs painting, new windows, garage door, new roof, plumbing, appliances or other repairs or upgrades, check into the City of Lake Forest's "Housing Rehab Loan" program. They offer up to $30,000 for home improvements at a great interest rate of 3% for 15 years, or for those who qualify, a zero percent interest deferred loan with no payments!

These loans are available subject to income limits and the properties must be owner-occupied and have some equity. More details are available at the City's website.

Lake Forest Market Report - August 2008

Mon, 11 Aug 2008 19:27:01 -0500

Today, there are 269 properties on the market in Lake Forest, with 128 currently under contract. With an average escrow period of 6 weeks, this equates to about a 12 week, or slightly less than 3 month absorbtion rate (although that assumes equal desirability of all properties, which will never really be true). Our average prices have fallen about 27% since the peak of 2006, and we are now back to pricing at early-2004 levels.

The "troubled" homes are leading the price decline with 75% of the current escrows either foreclosed, or short sales. Of the homes that closed during the month of July, 46 of the 79 (58%) were in that troubled category. From talking with other agents, it seems there are many of us working with motivated and qualified buyers who can't find the right house right now. Sellers who aren't in trouble are holding off for a better market, so good clean homes that are ready to be sold (without a bank approving the sale) have become very scarce, and when they appear, they sell quickly.

The banks, or their agents, have taken the tactic of pricing new listings at the lowest end of the comps, so when a new one comes on the market, it immediately gets a lot of attention. I recently wrote a full-priced offer on one of these homes on the first day on the market. It was good sized, in a good location and although it was dirty, it didn't really need a lot of work to be able to move in. The listing agent held my client's offer for 6 days until he had received 9 more offers, then instructed all of us to ask our buyers to write new offers at their "highest and best" price. My client felt that her first offer at full price was her highest and best (30% down payment, documented W-2 income and a very high FICO score), so she chose not to participate in the bidding war. Someone else bought that house, and I am now curiously waiting to find out what the "winner" ended up paying.

For reports about specific neighborhoods in Lake Forest, please visit my other blogs, Live Lake Forest, and Lake Forest II Homes.

Lake Forest II Neighborhood in Lake Forest California

Sat, 09 Aug 2008 15:31:05 -0500

The Lake Forest II Homeowners Association includes 3436 homes in 14 different neighborhoods.

The Sun & Sail Club is the social center of this association and the facilities include 3 full sized pools, a kiddie wading pool, a large spa where you can watch the sun set over the lake, 9 tennis courts, sand volleyball, basketball, a gym, picnic areas, and a clubhouse where you can attend or host social functions.

Details about the individual neighborhoods and information about the recent real estate activity can be found at my locally focused blog : LakeForest2Homes.com

Things To Do near Lake Forest, California

Wed, 06 Aug 2008 16:50:26 -0500

The Orange County Great Park is now offering FREE balloon rides on weekend evenings, in addition to the Thursday through Sunday daytime flights.

They also started providing evening entertainment with dancing on Friday nights, and concerts on Saturday nights. The lineup includes a wide range of entertainers from surf rock bands to Benny Goodman, to country western. Check their event calendar here.

I may be there, so if you see me, please say "Hello!"

Sellers need to respond quickly when they get an offer!

Fri, 20 Jun 2008 16:20:34 -0500

In the current market, when a buyer makes an offer on a property, it is in the seller's best interest to respond quickly. The buyers today are not impulsive, frenzied, or in a panic to "buy now or be priced out forever." If any urgency is felt by a buyer, it is more likely based on interest rates rising.

The standard contract in California provides an expiration date of 3 days after an offer is signed. That doesn't mean that the seller should take their sweet time to make a decision. I have seen buyers go through a careful thought process to first decide to make an offer at all, and then to come up with the terms and price that would make them happy with the results. At the time an offer is signed, most buyers are looking forward to coming to a conclusion of their home search, and moving forward with their plans to move in, arrange furniture, get settled in, and basically get on with their life.

During the wait time, between offer and response, the buyer's emotions may swing substantially while imagining the offer being accepted, rejected or countered. Since nobody likes rejection, a defensive "I don't really care that much" attitude often develops. At the same time, the buyer may also be mentally justifying their original offer and while it originally may have been a strategy to negotiate to a "middle ground," it can evolve into a "they can take it or leave it" decision.

While dragging out a decision by the seller, there is also the chance that another home will become available that will be more attractive to that buyer.

Sometimes, it is difficult to respond immediately because one or more of the sellers may be unavailable to review and consider the offer, but with email and fax machines available from almost any corner of the globe, availability should not be an excuse for long. Unless the home is brand new on the market, the listing agent should keep the seller well-informed and prepared by having regular discussions about what to expect and how to respond. Providing information to the seller about agent feedback, recent sales (the ones that buyers bought, instead of yours), new listings, local foreclosures, buyer activity level and interest rates should be an important part of a listing agent's job.

Several years ago, I worked with some buyers who submitted an offer on a newly-listed , but substantially over-priced property. (We justified the offer price with recent comps, many of which my buyers had visited.) The listing agent was in no hurry to help the sellers make a timely decision, but they eventually countered 3 days later. By then, my buyers were mad that their offer was treated so casually. They decided to keep looking, ended up buying a different house, and 6 months later the original house sold for $15,000 less than my buyer had offered!

Sellers - You have had your home on the market because you said you want to move. When an offer comes in, it should not be a surprise - that's why you've let all these strangers come through your house. When you get an offer, thank the buyer (no matter what, it's still better than not getting an offer) and tell them whether or not you want to sell at the price they offered. Dragging it out will only hurt you in the end!

Market Conditions in Lake Forest, California - June 1, 2008

Sun, 01 Jun 2008 18:32:49 -0500

Based on the levels of inventory, it looks like we are shifting back toward a seller's market! When the ratio of active listings to sales, or new escrows gets down below 6 months, it has generally been considered a market that favors sellers. This doesn't mean that prices are likely to rise soon, but that it is more likely that a buyer will take action sooner when a well-priced property comes on the market.

While there are still many bank-owned homes coming on the market, many seem to be getting more agressive with the pricing right from the start. There are now 38 active REO listings, 53 REOs in escrow, and 25 that have closed in the last 30 days. Assuming an average escrow time of 6 weeks, the 53 properties in escrow, indicate a pace of about 8.5 sales per week. At that rate, the 38 actives would be gone in less than 5 weeks, if no new ones came on the market!

The short sales are the hardest to evaluate due to the fact that each seller, lender, and listing agent is unique. Many of the currently listed short sales will not qualify due to some circumstance of the seller, and will eventually become foreclosures. Many of the listing agents who take the short sale listings are unqualified, and don't really understand the process. Most of the lenders are understaffed and overwhelmed, and not capable of responding to the best offers in a timely manner, so many of the buyers who made offers on these homes will drop out or buy something else by the time the lender makes a decision. At this time, there are 148 properties listed as active short sales in the MLS, with 30 currently under contract, and only 7 that have closed in the last 30 days.

For homes that are neither bank-owned or short sale status there are a total of 135 on the active market, with 42 in escrow, and 20 that have closed in the last 30 days. The active inventory ranges from $179,400 up to $1.8 million, and the average is $635,000. For those that have closed or are currently in escrow, the time on the market is an average of 60 days. For "non-troubled" homes, the inventory is very thin in many size and price ranges. I just witnessed a home that became available on Friday afternoon, with instructions that it could be shown beginning Saturday morning, and by Sunday morning, the status had changed to "Pending." In my opinion, this was priced right at the level that the market now dictates - not the "testing" end, or the "give-away" end, but right where it attracted attention from the buyers who were ready to act.

Lake Forest Market Conditions - Mid May Report

Mon, 19 May 2008 14:31:41 -0500

The activity level in Lake Forest is finally picking up! Right now, we have 114 properties in escrow and 49 that have closed in the last 30 days. Assuming that the 114 is about 6 weeks of activity, the 332 active listings represents an approximate 4 month inventory. Or using the 49 closings, it could be 6.5 months. Either way, it's much better than it has been for quite a while.

The troubled properties (short sales and foreclosures) still make up about 58% of the active properties and 68% of the current escrows. Of the 49 closings in the past 30 days, 32 of them were either short sales or foreclosed.

The pricing now begins at $135,000 for a bank-owned one bedroom condo, and goes up to $1.8 million for a custom lake front home. There are currently 2 single family houses priced at $399,900 and one other in a "hold" status. The first "under $400,000" sale of a single family home since November 2003 happened last month whan a bank-owned home that was listed for $414,000 closed at $395,000.

I specialize in Lake Forest, but work the entire Orange County area, and have identified and described several other well-priced properties on my other blog at (LiveLakeForest.com) If you have been waiting for some good buying opportunities, please contact me as soon as possible to help you find the right one!

Lake Forest Market Conditions - First Quarter 2008

Sat, 05 Apr 2008 23:53:04 -0500

The Lake Forest real estate market is tough right now - for sellers, for buyers & for agents! While there are a lot of listings active on the MLS, when they are divided up by size, price, and locations, there really isn't much to choose from. Today, out of 344 properties on the market, 58% of them are either short sales or bank-owned. The nicer homes that are in good condition are more rare, and when they become available on the MLS, there are often multiple offers!

The first quarter of the year has now ended and the preliminary numbers aren't pretty! A large number of foreclosures and short sales currently in the MLS have been dragging the values down, so homeowners who don't have to move, are not putting their homes on the market. Overall, the average price for January through March is $433,236, about 21% below the $550,502 average sale price for the same period in 2007. The price per square foot, $284 in 2008, is 25% below the $370/square foot sold in 2007. For single family homes, the average sales price of $634,850 is only 7.5% lower than last year, but the price per square foot ($309) is off about 20% from last year's $386. For condos, the average sales price of $283,115 is 28% lower than last year's $397,500, while the price per square foot of $265 is 24% below last year's $351.

Buyers - There will be good houses that fit your needs, but they just may not be available today. You still need to do your homework - get pre-approved with a reputable lender, become familiar with the market values, get to know the neighborhoods, and generally become educated so when the right property comes on, you will be ready to jump in with your best offer.

Sellers - You need to be realistic with your price range, keep the house picked up and ready to show, and make it easily available for agents to make appointments to bring their clients through. If it is properly priced and presented, you should be able to sell quickly!

Advice for Sellers When Your Home is on the Market

Wed, 12 Mar 2008 22:13:43 -0500

For my sellers in Lake Forest, Rancho Santa Margarita, Mission Viejo, and other South Orange County areas, here is a list of important, but not totally obvious hints to follow when your house is on the market.

If you have an answering machine - turn the volume to either "off" or "0″. You don't want potential buyers listening to your private messages! I have actually been in a house with buyers and overheard messages saying things like "Well, Susie, I think it's time we reduce the price, or this will never sell."
Keep your house ready-to-show every day! Make up your bed, clean the kitchen counters, pick up any clutter, clean the litter box, and don't cook any fish, garlic or currey! You should be able to show your home on a 10 minute notice, so don't leave more than 10 minutes worth of cleaning and straightening left undone.
When an agent calls to ask if they may show the property, the answer is "YES!" After that, you may ask if they have an idea about the timing.
When an agent & client arrive, invite them in, then leave! Both agents and buyers really hate it when owners hover over them, or worse yet, point out each and every little feature of your home. Your listing agent should prepare a flyer, and a supplement sheet if necessary, that lists all the upgrades and unique features. When you leave the house, let the agent know if he should lock the door when they are finished. If you are just next door without your house key, you don't want to be locked out!
If a buyer's agents asks you anything (other than "where's the light switch?") tell them that your agent has all the details and answers and they should contact him or her. Don't talk about where you are going, why you are selling, how many kids in the neighborhood, or anything else. Innocent conversations can end up costing you in your negotiations.
Ask your listing agent for a copy of the MLS printout for your home. Double check that they put in the correct address, # bedrooms, square feet, HOA dues, phone number to call for appointment, price and commission to buyer agent. Anyone can make a typo, and another set of eyes to proof-read can't hurt!

Lake Forest Market Conditions - Mid March Report 2008

Wed, 12 Mar 2008 22:11:19 -0500

I have some good news & bad news about the Lake Forest real estate market. Today, there are 74 homes in escrow! That is more than we have seen for quite a while, so there is hope that the "spring market" is actually coming alive! Hopefully, with the new loan limits, and the Fed pouring money into the market, we will get back to a more normalized market soon.

The bad news is that there are a lot of homes that have been foreclosed, or are in the process of foreclosure, or sellers who are "upside down" with their financing. The current inventory of 355 homes in the active status compared to the 81 that have closed in the last 90 days, equals a 13+ month level. Additionally, 53 of those 355 (15%) are currently owned by a lender. Many others are listed as "short sales" and require the approval of a lender before they can be sold. In total, 201 homes are classified as distressed - either bank-owned or short sales! For buyers who want to buy a clean well-maintained home in Lake Forest, there aren't nearly the number of choices that the high inventory indicates.

This graph shows for each price range the # homes that are bank-owned, the # homes that are listed short sales, and the remaining # of homes that are available as a "regular" sale.

Message to Lenders - Who is going to buy all your Foreclosures?

Sat, 08 Mar 2008 18:18:38 -0600

I just spent several days this week inspecting South Orange County REOs. The quality, condition and pricing run the distance from "Wow - pretty nice!" to "Gag - what's that smell?"

I saw a lot of REOs back in the mid-1990s and sold more than a few at that time. They also offered a wide range of conditions early on, but as the lenders eventually learned, most of the time they got a faster sale at a higher price by cleaning up properties before putting them on the market. More often than not, they included new carpet and neutral paint, landscape cleanup, and some minimal upgrades such as replacement of faucets, fixtures and appliances. At this point in our real estate downturn, there seems to be a reluctance to do this, although a few do. Of the 12 properties that I saw on Thursday, only 3 could be considered move-in ready, and 2 days later, all 3 of them are now in escrow!

From my experience, there are only 3 main types of buyers of foreclosed homes.

Investors who plan to fix, rent and hold for the long term. With real estate values not expected to increase in the near future, the return on investment needs to be justified based on projected cash flow, rather than appreciation. The following factors will influence the decision making for these buyers, and dictate the price that they will be willing to pay:

Non-owner financing is generally at a higher interest rate, and requires a greater % down payment.
Cost-to-carry during the repair period, as well as direct repair cost, needs to be added to the original investment amount.
Tax advantages provided by depreciation.
Cash flow should cover at least the monthly cost-to-carry.

Investors/Flippers who plan to fix and re-sell the property quickly for a profit. In addition to requiring a decent return on investment, these buyers require compensation for taking a risk that the market could deteriorate further before they can complete the repairs, find their own buyer and close the escrow. Projected cash flow is not a strong factor in this valuation, except as a fall-back position in case the market value declines below their break-even point. Factors influencing this type buyer's decisions:

Non-owner financing at higher rate will again be required.
The ability to accurately estimate costs to repair, and skills or access to skilled workers who can complete the repairs quickly.
Market knowledge to be able to estimate (guess-timate?) the final sale price.

Buyers who plan to live in the property. Many of these buyers will be current renters. Some will be move-up buyers, with savings set aside for the down payment, and the ability to rent their current home for close to monthly carrying cost. Since lenders won't accept contingent sales, move-up buyers that can't qualify to own 2 properties, will not be included in this group.

First time buyers rarely have any spare money to repair after spending it on down payments and closing costs. Lenders need to include allowance for closing costs, rate buy downs.
Emotions play a greater role for owner occupied homes. Dirty, nasty, smelly fixers will be severely discounted or totally ignored. Condition generally needs to be fairly close to "move-in ready."
When estimating costs to fix, most owner-occupant buyers over-estimate by about 200%!
Many buyers are afraid of the "as-is, where-is" contract, and will need a substantial discount to overcome it.
Monthly carrying cost must be in-line with buyer's previous rent + tax advantage.

Lenders need to get the message, and fix or price their properties in line with the expectations and budget of their most likely buyer. For lower end, first time buyer properties, it needs to be clean, neutral and attractive so that the buyers can move in and immediately start living in their new home. For investors, if the bank won't invest in fixing the obvious flaws, they will need to allow the fixing plus carrying cost to come off the bottom line either by pricing it substantially below other "comps," or offering below market non-owner financing.