Linsey 's OC Real Estate Voice

Heard 1 Too Many Times "If You Find a Good Deal, We'll Use You"

Mon, 12 Oct 2009 21:14:17 -0500

Every now and then, I have a well meaning prospective buyer say to me, "I'm already working with an agent, but if you find a good deal, let me know and I'll use you." Sometimes it's someone I meet at a social event or someone that inquires from my blog.

I think the buyer's mentality is understandable. Their intention is twofold: (1) get the feelers out about what they are looking for in the housing market (2) to let me know that I will be compensated if I find them that coveted 'good deal'.

My response is the same every time: (1)"Do you feel you are getting good support from your current agent?" (2) "If so, I would continue to work with them." I won't be calling with the inside scoop on a new listing.

Why, you ask? Several reasons:

Is it reasonable and fair to preempt another agent's hard work? As a buyer, if you have an agent that is working diligently and consistently on your behalf, it seems reasonable to reward that agent with your business.
As agents, we often have access to the same data. Is it simply a matter of who makes the call, or sends the email, fastest and brings you the 'great deal'?
If I'm listing a 'great deal', I would still want you to be represented by your agent. It's always my preference to have a buyer represented by their own agent.
Let's say I did come across a screaming deal before it hit the market - Who would I call first with that 'good deal'? The clients that are already committed to working with me in their home search, or the person that may work with me if I find the 'good deal'?
As a buyer, you may have signed a Buyer Broker Agreement committing you to utilizing your existing agent.
And lastly, the agents working in the area, comprise an almost small town-like atmosphere. Those actively working in the business know one another and complete real estate transactions together - often more than once. Reputation is crucial and undermining agent/client relationships is a career killer.

And one more quick side-note - if there is a 'good deal' to be had today, it WILL have multiple offers. No one calls me asking for a 'nice overpriced home' these days. Everyone is looking for a deal. The good news, compared to pricing as far back as 2003, it's all a good deal.

The best strategy, find a home you love, that fits the needs of you and your family, and your budget. If an agent calls you with the deal of the century, if it's not in your budget, and not going to support what you really need in a home, it doesn't matter what kind of deal it is.

Originally Posted on OC Real Estate Voice

Short Sales Still Plaguing Las Flores

Tue, 01 Sep 2009 09:35:02 -0500

The Bad News

Unfortunately, the short sales in Las Flores are abundant at all price points. Short sales comprise nearly half of all the inventory - 7 of 15 current active listings. The bulk of them (5) are in the $500 to $750 marketplace. The one big failing in my video post is the lack of mention in the short sale closings - there are none in the last 30 days. It's important to note because of the abundance of active homes and those in escrow that are short sales - in 30 days we haven't had 1 short sale successfully close. The pending, or 'In Escrow' inventory, are slightly skewed by the high number of short sales. Many of these properties have been in escrow for months, and some may ultimately foreclose. Out of the 17 in escrow - 11 of them are short.

So What is the Good News?

The good news is that there actually is good news. There are four big changes to note for Las Flores real estate conditions.

Active inventory is down. In March, there were 23 active listings and today we have only 15.
Pendings are up. In March, we had 9 pending, but today we have 17 in escrow.
Closings are up from 4 to 6 from that same 30 day period.
2 of the 4 closings in the last 30 days were over $750,000. In previous analysis, we had no movement at all in those price points.

So What Does This Mean If You Are Selling in Las Flores?

Note your price point. Under $600,000 seems to be moving nicely and there is significant demand for equity sellers - those that can sell without bank approvals. Just don't think that it means you can expect a premium sales price. The ones that sell are the ones that are priced right. Even over $750,000 is moving for the first time in a while, but you must be priced to reflect market conditions.

So What Does This Mean If You Are Buying in Las Flores?

Prices have come down dramatically but available properties are tough to find. Be prepared to watch and wait carefully for the right fit. Speak to your agent about automatic notifications if you are focused on Las Flores - especially in the lower price points.

So What Does This Mean If I Am In A Short Sale Position?

If you need to sell and you owe more than your home is worth, develop a strategy that makes sense. Talk to someone you trust and someone that understands your circumstances and your needs. Don't pay upfront. Be careful. There are NO guarantees in this area of the market. Every short sale is different and every bank is different. And, honestly every day it can change.

Questions?

If you have questions, I'm happy to help. There is no obligation and no pressure; we really do want to serve the homeowners and potential buyers in Las Flores. Let us know how we can best help you.

Originally posted at My Las Flores.

Need to Sell But Can't? What's the Plan B?

Tue, 01 Sep 2009 09:25:35 -0500

It's important to go into any listing of a home with an idea of your 'bottom line'. But, the Plan B is also just as important. Often I will go to a listing appointment and while the 'bottom line' is clear for a seller, they may not have a Plan B.

In today's market, perception of value may vary dramatically. For example, the home seller that had a value of $700,000 at one time, may have a hard time believing they are looking at a market value of $550,000. And the buyer, who may still believe there is room to fall in this market, may see the value at $500,000.

As we know, seller need, seller desire, does not determine value in the eyes of the buyer, lender or appraiser. So what happens when you can't achieve your bottom line? Your listing agent should have this discussion with you on the very first appointment - even if the number seems achievable.

What's your Plan B? Plan B's rarely are fun and they generally involve some tough decisions that you hope to avoid. But avoiding the questions and the possibilities, won't help.

Possible Plan B's:

Don't sell. If you don't have to move and you are determined to get a particular price, stay.
Bring in cash to close. If you know that you will not be able to cover all the costs in a particular price range, do you have the money to bring in if this is the only option and you must move?
If you don't have the cash to bring, and you owe more than it's worth, can you do a short sale?
Can you lease out the property until the market appreciates enough for you to get your price?
If the loan is part of the need to sell (creating affordability problems), can you qualify for a loan modification? Will that allow you to stay?

These are some thoughts to get you started in the Plan B conversation. Again, I recommend that these tough questions are asked prior to ever listing your home. If you get what you need - super! If not, everyone knows the plan.

Originally posted on Why Didn't My Home Sell?

The House I Rent Just Foreclosed....How Long Can I Stay?

Sat, 30 May 2009 20:05:55 -0500

The foreclosures are abundant in Orange County and the impact is felt by many - including tenants. With the sharp increase in investment purchases during the boom, many of the properties currently in foreclosure are tenant occupied.

What Happens When the Home You Are Renting Forecloses?

Tenant rights have been addressed in recently weeks under the 'Helping Families Save Their Homes Act'. On May 20th, 2009, Obama signed the new law that extends the rights of a tenant to stay in the foreclosed property from 60 days to 90 days.

Recently I had a client ask whether this would apply only to homes foreclosed from this date forward or those that have recently been foreclosed on. From contacting various tenant's rights groups, it looks as though the 90 days applies to homes foreclosed from May 20th, 2009 and forward, otherwise, it is still 60 days.

Also, it is worth noting that the following language is included in the law: "the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property." In other words, you still may be required to pay rent to the lender that now owns the property.

If you have questions about your rights, I'm happy to assist. You may also find assistance at various Tenant Advocacy sites. For example, TenantsTogether.org, California's Statewide Organization for Renters Rights.

Originally posted on OC Real Estate Voice.

No Second Chance on That First Impression - Photos a Must on Day 1

Sat, 30 May 2009 19:13:57 -0500

If you've spent any time reading this website at all, you know what a huge advocate I am of professional photography on every listing that I have.

But there is something else that as seller, you must be aware of in a your new listing: the photos must go in the moment your new listing is online. Why?

Agents are constantly looking for their buyers. If two listings come up at the same time, one with photos and one without, which one do you think they are more inclined to take notice of?

Buyer Online Searches (this is the critical point): In the age of information, the internet dominates a large majority of buyer's home searching efforts. Many serious buyers are on a automatic delivery system for new listings. When your new listing comes to them without photos, they often ignore it. Putting in fabulous professional photography a week after it is listed is meaningless. Too many buyers have ignored it and may never return to see those wonderful photos.

There are instances where there is a sense of urgency and a need to get the property in the listing services immediately. In this case, I recommend using the agent's digital shots temporarily. I still would never recommend going without and fortunately, in this day and age, there is absolutely no need to go without photographs.

In my mind, this failure is the ultimate breech of a listing agent's duty to their client - that seller. When interviewing listing agents, ask about the process they utilize. Will they have photography professionally shot? Will they take the time to wait for those shots prior to listing? Will they use those images in all the initial launches online? Or will they list your home and add photos in a few days?

You know you have a good agent when they are willing to take the necessary time to prepare your listing professionally with the marketing that is needed. Waiting a few days and going live with really quality marketing can actually create a quicker and higher sale.

If you are in Orange County and have questions about selling your home, please don't hesitate to contact me. If you are out of the area, but are looking for an agent that is committed to quality marketing, let me know and I'll help you make the right connection if I know someone in your area.

Originally Posted on WhyDidn'tMyHome Sell.com

Upper Price Points Still Stalled in Las Flores

Tue, 28 Apr 2009 01:35:12 -0500

Las Flores continues to suffer some of the same conditions we are seeing in the overall South Orange County market - very little activity in the upper price points, a large number of short sales, and very low bank owned activity.

As of today, there are 23 homes on the market in Las Flores and 10 of them are short sales, and presently there are no bank owned homes active. Unfortunately, I'm fully expecting the foreclosures to increase in the next 30 to 120 days (refer to my post on OC Real Estate Voice) and subsequently bank owned listings to increase.

Ironically, even with the abundance of active short sale listings, there have been no short sales that have successfully closed in the prior 30 days. There are currently 5 short sales in escrow. These can be in escrow for as much as 6 months, so we can expect the number of short sale closings won't be dramatic in the coming days. As a matter of fact, the MLS notes only 2 short sales have successfully closed year to date in Las Flores, the last one was 2/17.

The highest closed sale in the last 30 days is in the Avelino tract for $525,000. The higher price points (over $750,000) is particularly slow with 8 active listings, no recent sales, and nothing presently pending.

If you ever have questions about the Las Flores real estate market, these numbers, or conditions in Orange County, please consider me a resource. If you, or someone you know, is currently thinking of buying or selling in Las Flores, I always appreciate your recommendation.

To contact me, (949) 939-2514 or email me at linsey@ocrealestatevoice.com.

All information and statistics are from SoCalMLS and are deemed reliable but not guaranteed.

Originally posted on My Las Flores.

Foreclosures Will Be on the Rise in Orange County

Mon, 20 Apr 2009 19:17:02 -0500

No crystal ball needed here - we are about to see a sharp increase in foreclosures in the coming months. The foreclosure report for the month of March was recently released by Foreclosure Radar.

During the final months of 2008, many lending institutions participated in a voluntary moratorium on foreclosures. Notice of Defaults (NOD's), the first step in the foreclosure process in California, plummeted. The final days on the moratoriums have just passed. Fannie Mae and Freddie Mac's were lifted as of March 31.

And if you've been paying attention to my 'Microscope on the Market' series, you've noticed the drop in bank owned homes on the market - hence the second half of that headline, 'Foreclosure Sales Drop'. Without the new NOD's, there's been a dramatic reduction in bank owned homes.

Notice the following chart that tracks Notice of Defaults and Foreclosure sales. The green line represents California's NOD filings. Notice the arrows - the dramatic dip in September and the sharp rise as of March '09.

With the rise in filings, we can expect the foreclosures to rise. Will Obama's plan help? My guess is no for Orange County. Why? The loan modifications the banks are offering, by and large, don't change the significant negative equity that many of these homeowners are facing. Without a substantial equity reduction, many sellers (who've already seen their credit damaged) will opt to walk away from the property.

What does this mean for buyers and sellers? If we see a large rise in distress inventory, this market may see some downward pressure on pricing - although in some of the lower price points, overall inventory is still low (especially if you remove the difficult short sales). I would expect that demand for this inventory will remain high - as we have seen in recent months.

One interesting note in the Foreclosure Radar report:

"The California Foreclosure Prevention Act, which goes into effect this summer, adds an additional 90 days to the foreclosure process if lenders fail to take certain actions. It is quite possible that the dramatic rise in foreclosure notices occuring now is an attempt by lenders to process as many foreclosures as possible before this law takes affect."

If you are interested in viewing foreclosure data and bank owned homes don't hesitate to contact me.

Originally posted on OC Real Estate Voice.

Marina Hills Open House 203 Fleurance

Fri, 17 Apr 2009 17:22:59 -0500

This Sunday the 19th from 1 to 4pm is your opportunity to come see this wonderful property in the Encore tract of Marina Hills in Laguna Niguel at 203 Fleurance. This 2 bedroom, 2 bath townhome with attached 2 car garage is beautifully upgraded and maintained. Absolutely some of the best views and a prime location!

If you are looking to buy and you are trying to avoid a short sale - good news - this traditional seller will respond quickly. We look forward to seeing you.

Las Flores Open House - 31 Sunny Slope

Fri, 17 Apr 2009 15:55:33 -0500

If you are looking for an amazing opportunity in Las Flores, I have one at 31 Sunny Slope. This Saturday, April 18th, from 1 to 4:00, we will be holding this beautiful 4 bedroom, 2500 square foot home open for you to see. Don't hesitate to contact me with questions.

Questions about the Las Flores real estate market, you can always check you My Las Flores for the lates listings, trends, and sales.

So...You Want to Buy a Short Sale? Be Forewarned...

Fri, 17 Apr 2009 15:40:42 -0500

If you are thinking of buying a short sale (or if you're an agent looking for an outlet for your short sale frustrations), PLEASE read. Understanding this information is a must.

I completely understand the allure of the short sales when you are a buyer. The prices are attractive and there are SO many of them. They have become a necessary evil of the Orange County real estate market. I get it.

If you really want to pursue a short sale, be forewarned. Know what you are getting into, understand the risks, the pitfalls, and what is required to make them happen from a buyer perspective. They may, or may not, be worth it.

What is a Short Sale?

The seller's obligations in a sale (loans, encumbrances, and closing costs), exceed the value of the property. The seller must prove a hardship (job loss, wage reduction, divorce, health crisis, lack of assets) to qualify for a short sale.

A Few Realities

There is no Standard Operating Procedures for the banking industry to handle short sales. Every bank has different guidelines and manages them differently; even negotiators within the same bank manage them differently.

This is important: Nearly across the board, a banking institution will not consider a seller's hardship application until they submit an offer with a short sale. What does this mean to a buyer? Your offer is used to see if they qualify in the first place. You may sit in escrow for weeks while the bank considers not your offer, but the seller's circumstances.

There is no Standard Operating Procedures for how agents handle their short sale listings. Frankly, I think there is a lot of irresponsibility in this area.

Many agents leave their listings ACTIVE in the MLS even though they have an offer submitted to the bank. Once an agent has a good offer with a solid buyer, it should go in Backup position. The bank will only look at ONE offer - highest and best - anyway. Why waste an agent's time, a buyer's time and emotion, showing a property that is not really available?

Even Banks will ask the listing to remain Active after an offer is submitted. Note the conversation with this agent on Twitter.

The SoCalMLS has a Special Condition field where agents are required to specify that the short sale has an offer submitted to the bank. Unfortunately, most agents don't use it.

An 'Approved Short Sale' does not necessarily mean that the process will go any faster. See Countrywide's response on my short sale last year.

A short sale process will take as little as 60 days (very rare) or as much as 4 to 6 months (common).

The list price is not a reflection of what the bank will, or will not, take. The listing price is positioned to generate offers. Remember, the bank hasn't even looked at these seller's situation yet, let alone evaluate the the market value of the home.

There may be past due HOA fees, property taxes, or other expenses, that the bank will ask for a buyer to cover.

If the seller declares bankruptcy during the process, your deposit becomes a frozen asset that you likely wait a fair amount of time to recover - if you do.

Many short sales ultimately foreclose. Why? If you find out please tell me. There is often NO LOGIC in the way banks (and investors) approve, or disapprove these.

More banks are trying to do loan modifications for sellers rather than approve short sales and in some instances, they are incentivized by the government to do so.

Real Life Examples

The following are scenarios that have been experienced by me, my agents, colleagues, and my buyers.

My Listing last May: I had 8 offers in 3 days. The highest was $580,000 and it took 4 months to get an approval from Countrywide. By the time it was approved, the market value had fallen precipitously and the buyer was no longer interested. When I asked Countrywide if the process would go more quickly with a new buyer given the hardship had been approved, their response was that the each buyer was a new file and they couldn't provide better than a 4 to 6 month time frame. The home sold for $490,000 4 1/2 months later.

An agent within my company, had a short sale in escrow with a solid buyer for 90 days. The bank asked the insolvent seller to come to the table with $3,500 on the $165,000 sale. When the seller was unable to, the bank refused the short sale. The home is currently vacant and worth about $145,000 6 months later. Currently, it's not in foreclosure and the seller hasn't made a payment in about a year.

This week alone, I've shown 2 different short sales, marketed on the MLS as Active, that already had offers submitted to the bank without notation in the listing. When I called expressing my buyer's interest in one of the properties, the agent subsequently told me, 'the deal is done'. When asked, "Then why is it active?", his response was, "Don't tell me how to run my business, sweetheart." BTW - Don't call me sweetheart unless you're loving me or you're my husband. :)

One of my recent short sale listings was in escrow 60 days with a qualified, ready-to-go buyer. In that time, the bank reviewed the seller's hardship, denied it, and offered a very poor loan modification. Buyers lost 60 days and their offer was never considered.

I currently have an investor buyer in escrow on an 'approved short sale'. We've been in escrow 90 days on a property that had an Notice of Default filed in March 2007! Not only has there been no news, the listing agent has told me essentially - don't call us, we'll call you if there is an update. Not very reassuring to my buyer.

This is the tip of a massive iceberg. So if you want to buy a short sale, you certainly have my blessings. Just be armed with patience, don't become emotionally attached to the property, and be prepared to potentially go through the process more than once.

If you have questions, if you think I've gotten any of this wrong, or if I've just scared the hell out of you - leave a comment or give me a call. Happy to chat with you. If you want to create a strategy to buy in Orange County - whether it's a short sale, bank owned, or an equity seller, just let me know and I'm happy to help.

Happy House Hunting!

Originally posted on OC Real Estate Voice.

Rare Opportunity In Las Flores - Great Floorplan on Double Cul-De-Sac!

Mon, 06 Apr 2009 11:55:51 -0500

Linsey Planeta | Belterra Fine Homes | 949-939-2514

31 Sunny Slope, Rancho Santa Margarita, CA

Exceptional Opportunity Double Cul-de-Sac Location and a Floorplan that Rarely Comes on the Market!

4BR/2.5BA Single Family House

offered at $675,000

Year Built	1997
Sq Footage	2,500
Bedrooms	4
Bathrooms	2 full, 1 partial
Floors	2
Parking	2 Car garage
Lot Size	4,755 sqft
HOA/Maint	$100 per month

DESCRIPTION

With only a few of its kind, this is a rare opportunity to own the largest floorplans in the Greystone Arbor tract. Ideally located on a double cul-de-sac, this street is always in high demand.

Immediately upon stepping into this stunning home, you'll notice the open, spacious floorplan. The expansive kitchen has a large center island with seating, tremendous storage, and lots of counter space. Enjoy entertaining and gatherings in the kitchen opening up to the large dining area and HUGE family room. Newer wood floors carpeting in neutral tones.

All bedrooms are conveniently located upstairs. There are currently 2 secondary (1 huge one that could be two), Loft, and a generous master bedroom. The master bath is large with dual sinks, separate tub and shower, and large closets with mirrored wardrobes.

Large, usable yard with easy, low maintenance artificial grass. Ideally located only short distance to path to the award winning schools and assoc. pool. Close to 241 to 5 frwy freeways.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
High/Vaulted ceiling	Hardwood floor	Family room
Living room	Dining room	Dishwasher
Stove/Oven	Microwave

COMMUNITY FEATURES

Garage parking

Swimming pool(s)

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5	Photo 6

Contact info:

Linsey Planeta

Belterra Fine Homes

949-939-2514

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 6, 2009, 8:41am PDT

Tremendous Views and Incredible Marina Hills Location

Fri, 03 Apr 2009 16:47:39 -0500

Linsey Planeta | Belterra Fine Homes | 949-939-2514

203 Fleurance, Laguna Niguel, CA

Exceptional location for this highly upgraded condo. Breathtaking views and steps away from expansive greenbelt and park.

2BR/2BA Condo

offered at $475,000

Year Built	1994
Sq Footage	1,108
Bedrooms	2
Bathrooms	2 full, 0 partial
Floors	Unspecified
Parking	2 Car garage
Lot Size	2,178 sqft
HOA/Maint	$107 per month

DESCRIPTION

Wonderful opportunity to own in this prestigious Marina Hills community. This 2 bedroom, 2 bath home is in one of the best locations in the Encore neighborhood. Enjoy tremendous city light and hills views and easy access to the expansive greenbelt that is only steps away. Two spacious balconies to enjoy the tremendous views. The beautifully upgraded condo has plantation shutters, wood floors, upgraded baseboards, and custom window treatments. Large, light and bright kitchen with plenty of storage and counter space. Fireplace that you will enjoy from the dining or family room.
Large master bedroom and spacious secondary. Two car direct access garage with plenty of storage. If you are looking for a prestigious community within Laguna Niguel - this may be just what you have been looking for.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
High/Vaulted ceiling	Hardwood floor	Tile floor
Family room	Dishwasher	Stove/Oven
Microwave	Laundry area - garage	Balcony, Deck, or Patio

COMMUNITY FEATURES

Garage parking

Guest parking

Swimming pool(s)

ADDITIONAL PHOTOS

Exceptional Location	Generous Living Area
Light and Bright	Spacious Master
Greenbelt and Park	Breathtaking Views

Contact info:

Linsey Planeta

Belterra Fine Homes

949-939-2514

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 3, 2009, 1:36pm PDT

Market Update for Las Flores

Wed, 01 Apr 2009 09:46:37 -0500

As March comes to an end, it's time to do a quick recap of the active inventory on the market in Las Flores, as well as examining what has sold. Because the price point has a big impact on what is currently moving, I've broken it down by price point and distress sales.

Take note that while the bank inventory is currently at zero, it will come back. The moratorium on Notice of Defaults ended (which is the first step in the foreclosure process) and sadly, the NOD filings are back to previous levels. Stay tuned for more on that.

Please note: The closed sales are in the last 30 days.

If you ever have any questions about the numbers presented here or questions about the value of your own home in today's market, don't hesitate to ask. There's never any pressure or obligation. That's just not how we roll here. :)

Information based on SocalMLS and deemed reliable but not guaranteed.

Originally posted on My Las Flores.

Microscope on the Market - Laguna Niguel

Mon, 30 Mar 2009 23:24:51 -0500

So many of the media numbers focus on Orange County performance, but real estate performance can vary dramatically within our large county, and particularly at various price points.

Today's Microscope on the Market focuses on the Laguna Niguel real estate market.

Homes Under $500,000

In the under $500,000 market, Laguna Niguel does not vary from any of the cities I focused on in South Orange County with a whopping 63.9% of the active properties in a short sale situation.

Couple of things to note - it would appear that there is significant movement with 71 properties in escrow. Sadly, 38 of them are short sales and those can sit in escrow for 60 to 180 days and that can skew the perception of significant movement. Notice only 18 have actually closed escrow in the last 30 days.

I want to also point out the very low number of bank owned inventory. Pay close attention to this number in the coming months. It will increase again based on the end of the moratorium on Notice of Defaults. Filings are back up to levels prior to the moratorium so watch for this number to increase.

Also of note, despite the large supply of short sales, buyers still look to bank owned homes and equity sellers for their purchases by a significant degree in relation to the supply.

Homes $500,001 to $750,000

Again, despite the large number of short sales, buyers love bank owned inventory and it doesn't last on the market and their is still a significant demand for reasonable equity sellers.

Homes Over $750,001

As I noted in Coto last week, there is just very little in the upper price points that is moving. At this rate of consumption (12 homes a month), we have a 12.25 month supply of homes in this price range. If nothing else were to list in this price range, it would take us over a year to consume the existing inventory with current buyer demand.

The good news in Laguna Niguel - there is very little bank owned inventory and very few short sale listings in this price range. That can be good news for values in the coming year. I'm not suggesting any appreciation guys - but even with slow sales, these folks may have the financial strength to hang on.

*Closed Sales are properties that have closed within the last 30 days from the time of this writing.

**All information and statistics are from SoCalMLS and are deemed reliable but not guaranteed.

If you have any questions about market conditions for Laguna Niguel, feel free to get in touch with me. I'm happy to help try to make sense of it all.

Originally posted on OC Real Estate Voice.

Quick and Anonymous SurveyAbout Orange County Real Estate

Fri, 27 Mar 2009 17:57:18 -0500

I would like to invite you to take this quick (2 minutes or less) survey about your thoughts on the Orange County housing market. It is entirely anonymous and I will post the results in one week.

Click Here to take survey

I want your thoughts! I also invite you to share any additional things you would like to add in the comments section below.

Thanks so much for participating!

(BTW - for those interested, the survey was created easily with surveymonkey.com for free)

Originally posted on OC Real Estate Voice.

Condition Versus Objection - Seller Question

Thu, 26 Mar 2009 10:11:35 -0500

Today I received a note from a seller, Victoria, asking a tough but great question that I wanted to answer here:

How do you overcome a consistent buyer objection that is impossible to change? Our house has been on the market for 13 days and people rave about it, but our kitchen is on the second floor and that seems to scare people off. Is there *anything* that we can do? I'll brag a bit - our house looks pretty freakin' great compared to others for sale in our neighborhood. This is us.

We're doing a price drop today .. unfortunately, our neighborhood has been blighted by foreclosures. That said, one potential buyer loved the house, didn't object to our price, but balked when she brought her hubby and he had a problem with the kitchen being upstairs. (They say that we're still on their list, though.)

Objection Versus Condition

It's critical to identify the difference between an objection and a condition. Objections are things you can do something about - paint color, wall paper, landscaping.

Conditions on the other hand are things you can't change - street noise, floorplan, yard size. Victoria's kitchen location in this case falls under the category of a condition. The only way to address a condition is to find ways to minimize the impact - a fountain to minimize the impact of street noise is an example.

What can Victoria do? Based on what I can see from the photos (kudos to the agent for lots of good photos), the home is nicely staged and the kitchen looks beautiful. What specifically seems to be the trouble with the kitchen upstairs? What is the core of the trouble for a buyer? Find ways to get to the core of the concern and try to address it but obviously nothing will change the fact that the kitchen is where it is.

When you have a condition such as this, having good buyer traffic is key. You must find the one buyer that does not mind the location of the kitchen. That buyer is out there.

Pricing Trick That Works

I noticed the price is $455,000. I'm not sure if this is the new price or not. I will admit that I'm entirely unfamiliar with pricing in Annandale, Virginia, but I do have one suggestion about pricing; reduce it to $450,000 - exactly. Why? Notice the search engines buyers use. Many of them are set up to search in $25,000 increments. With the price at $450,000, if they search $400 to $450 this home comes up. If a buyer or agent searches from $450 to $500, again, this home comes up. The small pricing strategy can make a big difference in buyer traffic.

The other benefit of this pricing strategy is that the more this home looks like a great deal, the more excitement you will have on the part of the buying community and in this economic climate - with the foreclosures setting the tone for a community - it has to be seen as a good deal. When a home is a seen as an opportunity, it also makes it a little easier to overlook conditions that might otherwise be an issue.

Victoria - keep us informed of your progress and all the best to you. Hang in there. I know 13 days feels like an eternity as a seller but it's early. Your home is lovely and I don't think it will be long.

Originally posted on Why Didn't My Home Sell?

How to Select a Real Estate Agent

Tue, 24 Mar 2009 10:37:23 -0500

I came across an article in the Orange County Register this morning that had some good tips regarding the selection process for finding a real estate agent from Stefan Swanepoel, author of Swanepoel Trends Report and RETrends.com.

One of the things Stefan noted was finding someone that had "marketing skills as they relate to reaching the consumer – not just a Website and an MLS link but proactive communication involving social networking and third party marketing avenues." This is certainly something new and I would agree that social networking and online connections have become a major player in the successful marketing of a home.

I would add the following:

Ask to see copies of their 3 most recent listings - note descriptions and photography.
Google the names of the agents you are interviewing. You'll find a lot out about their ability to market effectively and about their local knowledge
Probe during the interview to make sure they have a depth of understanding of not only the market, but how the current economic climate may impact a decision to purchase or the ability to sell.

Pay attention to your gut. My belief is that your gut will tell you a good deal about a person and sometimes a successful transaction is due in part to the ability to feel comfortable talking to the person who is guiding you through the details of this important process.

Originally posted on Why Didn't My Home Sell?

Microscope on the Market - Coto de Caza

Tue, 17 Mar 2009 22:29:00 -0500

So many of the media numbers focus on Orange County performance, but real estate performance can vary dramatically within our large county and particularly at various price points.

Today's Microscope on the Market focuses on Coto de Caza.

If you aren't from Orange County - yes this is the home of the infamous Real Housewives of Orange County, although I can't say that the friends that I have living in Coto are anything like the woman as depicted on that show. It's really a beautiful gated community with homes in a wide variety of prices ranges. But I won't kid you - some of the highest priced homes in Orange County are behind these gates.

I toyed with varying the breakdown that I usually do (Under $500k, $500 to $750, and over $750), but I've decided for a number of reasons to leave them. More later....

Homes Under $500,000

Although clearly, there is not a lot in Coto in the under $500 market, the buying behavior is similar to other parts of the county - all 5 that are in escrow and the 1 closed sale are all either bank owned properties or short sales.

Homes $500,001 to $750,000

This was one of the rare instances where current equity sellers in escrow actually exceeded the active listings that were equity sellers. I'm not ready to ready too much into it - we are only talking about 6 sellers.

Homes Over $750,001

Given the wide range of values in the upper end of the market in Coto, I think it's important to take note of just a few things in the over $750,000 segment:

The highest priced home currently in escrow is $1,099,000.
The highest sale in the last 30 days is $1.6 million.
The highest sale in the last 6 months per SocalMLS was $2.9 million.
The only sale over $2.9 in the last 12 months was the record sale on Violeta for $19.5 million. There have been no sales other sales over $2.9.
In the preceding 12 months there were 7 sales over $2.9 million ranging from $3.2 million to as high as $6,643,750. (Where did that buyer profile go?)
Currently, there are 24 homes over $2.9 in Coto de Caza - 16% of the active inventory.

While the residents of Coto de Caza may be used to having a longer time on the market given the price point, there is no question that they are certainly feeling the shift in the market at the higher end as well.

We have seen the high end somewhat insulated until recently, but when you seen see such a significant drop in purchases at the highest end, you know that no one (not even the 'Real OC Housewives') is protected.

*Closed Sales are properties that have closed within the last 30 days from the time of this writing.

**All information and statistics are from SoCalMLS and are deemed reliable but not guaranteed.

If you have any questions about market conditions for Coto de Caza, feel free to get in touch with me. I'm happy to help try to make sense of it all.

Originally posted on OC Real Estate Voice.

I Am Not a Photographer

Sat, 14 Mar 2009 11:05:21 -0500

One thing that I harp on here is the need for professional photographs in a listing. There is no listing that should ever be without them. I am a Realtor - I am not a photographer.

Recently I took some shots of a new listing of mine. Notice the dramatic difference between my shots and the pros. I realize this confirms that I'm not a great photographer, but I hope it also illustrates the point. A professional will understand lighting, they will have the wide angle lens necessary, and they understand the best angle for the shot.

Based on some of the crummy shots spread across the Internet and the MLS, I think it's fair to say that Realtors should not be shooting their own listings. Part of an agent's job is to market a home and in my mind, good marketing begins with great photos.

Originally posted on Why Didn't My Home Sell?

Microscope on Mission Viejo

Fri, 13 Mar 2009 22:37:22 -0500

Today the microscope is on Mission Viejo. (BTW Dear Friends/Readers, if you find this number crunching downright boring - stay tuned. I always come back to the conversations that are much more fun than this! :)

So many of the media numbers focus on Orange County performance, but real estate performance can vary dramatically within our large county and particularly at various price points.

I'm going to spend the next several posts breaking down each of the South Orange County cities to give you an idea of local performance. Whether you are buying, selling, or just keeping an eye on your local market, these numbers tell the story.

Homes Under $500,000

I think one of the revealing things about the under $500,000 market is the fact that while nearly 68% of the active inventory are short sales, they make up less than 28% of the homes that closed in the last 30 days. Demand also is high for bank owned product but very little currently exists - only 6.2% in this price range.

Homes $500,000 to $750,000

Again, very little inventory in the bank owned market, but significant demand. There were very few sales in $500,000 to $750,000 market, as well as the $750,000 market as shown below.

It's important to note where the demand is: of the closed sales in the last 30 days 81.1% have been in the under $500,000 market.

Homes Over $750,001

Interestingly, there are significantly less short sales in this price point. The bad news - sales are slow and with current buying trends, it would take 12.25 months to exhaust the current inventory of homes if nothing else were to come on the market. However in the under $500,000 market, it would only take 4.12 months to exhaust all the inventory at the current rate of consumption.

As I have mentioned many times here, the short sale listings takes months to close and skew the numbers dramatically. With current inventory, it would only take 1.9 months to consume the equity seller and bank owned listings under $500,000. This sector of the market is no longer a buyers market.

*Closed Sales are properties that have closed within the last 30 days from the time of this writing.

**All information and statistics are from SoCalMLS and are deemed reliable but not guaranteed.

If you have any questions about market conditions for Mission Viejo, feel free to get in touch with me. I'm happy to help try to make sense of it all.

Originally posted on OC Real Estate Voice.

The Hits Keep on Comin'

Sat, 28 Feb 2009 12:55:58 -0600

The other day, I mentioned my astonishment at the Housing Affordability and Stimulus Plan and how it really leaves California (the most troubled housing markets in the country) out in the cold.

Then the announcement came regarding an $8,000 tax credit. Forgive me, but whoop-dee-do.

While this may be meaningful in the lower price points, we aren't having trouble there these days. Market time in the under 500,000 range is running around 4 months, and 30 days if it's not a short sale. Clearly, that is a strong seller's market.

Where do we need help? The higher price points are hit hard by tight financing, consumer confidence, and high inventory. And frankly, in those price points, the value of a home could potential fall $8,000 while you are in escrow.

Not to mention, first time buyers that qualify for the tax credit, aren't generally buying in that price point - so I guess that doesn't excite me much.

Most recently, plans were announced to cut mortgage deductions for those in the higher income tax bracket. Now, if you live in Orange County and you are making $208,850 or more, you are living a lifestyle that is a far cry from someone living in the Midwest on the same income.

Example: You may have purchased a home in 2006 that you are affording (barely because your bonus didn't come through this year), and you may have lost 30% of the value since you purchased. Since you are considered part of the 'wealthy' in the country, you are now on the verge of loosing some of your mortgage deduction. You know - the mortgage you've been trying to hand onto, even though you owe more than the house is worth....

I'm waiting for the part of this plan that impacts California. Maybe I wasn't clear last time I mentioned this - one that impacts California in a positive way.

Originally posted on OC Real Estate Voice.

State of the OC Market

Sat, 28 Feb 2009 11:23:24 -0600

Recently Jonathon Lansner posted a podcast that he did with Steven Thomas of Altera Real Estate. Great information whether you are a buyer or seller in Orange County. Mr. Thomas posts his Market Time Report every two weeks and continues to be an excellent resource for analysis on Orange County real estate.

If you are sizing up a purchase or sale, looking for an opinion on 'the bottom', this is worth 13 minutes.

Originally posted on OC Real Estate Voice.

What Comes Out of 'The Black Hole'

Thu, 26 Feb 2009 21:42:42 -0600

After years in this business, my husband has learned a few realities about my business:

"I just have to return this one phone call." Translation: 30 minutes and several phone calls.
"I just have to run down to my office and shoot out a quick email." Translation: 20 + minutes in the office.
"I'll be in my office catching up for just a bit." Sadly the translation: I'll be in bed about an hour after you.

Consequently, he has affectionately referred to my home office as, 'The Black Hole.' I have three children so he certainly appreciates the fact that I get things done when I have time and unfortunately, that isn't always 9 to 5. This week, something fun came out of 'The Black Hole' that I'm excited to launch: My Las Flores hyperlocal community blog.

After working in the Orange County community of Las Flores for several years, I began to rethink the methods for marketing. Since the launch of OC Real EstateVoice, I knew my business was headed in a profoundly new direction. I knew that consumers were looking for information about a community (listings, trends, values) not just another, 'Look what I sold!' marketing piece from an agent. Hence, the birth of the My Las Flores site.

I've got a couple tweeks to make as of yet - the video has to be redone. It's excruciatingly long and I made the video on garbage day with garbage cans out on every street. Bad news, so this will be my project for the coming weekend. But overall, I like the direction it's heading in.

Every now and then I emerge from 'The Black Hole' and something satisfyingly 'tangible' is born. This is one of those weeks. :)

Originally posted on OC Real Estate Voice.

Sizing Up the Competition - Your Tract is the Tip of the Iceberg

Thu, 26 Feb 2009 19:44:34 -0600

If you live in an area that has planned communities and tracts, it's easy to study the comparable sales for your area to assess value and pricing. In Orange County, it's the first place I go when trying to determine a price for a listing. But don't fall into the trap of thinking the homes in your tract are your competition - it may be the tip of the iceberg.

I see it all the time. I hear the same comment from struggling sellers:

We're priced $x less than our model down the street. We are the best deal in here.
If you look at all the homes on this side of the freeway between 'blank' and 'blank', we are the lowest price.
We're the nicest one in the neighborhood.

All of this may be true, but it fails to take into consideration one valuable piece of information. Buyers rarely look in one specific tract. They rarely give themselves the same guidelines for assessing value (between 'blank' and 'blank') that a seller does. Buyers are often looking in several tracts within a city and they may be looking at more than one city.

So when you are trying to price your home, you want to look at the following:

Your individual tract.
The available properties in your city. This is a truer representation of your overall competition.
The sold homes in your city. What was the list price and what were the sale prices? How many days were they on the market?
Surrounding areas and the active inventory that might be competition for your home. Often an agent will know what other cities would be competing for buyer attention.

Pay close attention to what is selling. The homes that have sold indicated the price that a buyer is willing to pay. Homes that are currently on the market are not going to give you any real indication of value.

Remember, buyers are looking for a reason not to buy.When they go look at 8 homes in a day, your home has to stand above all the others. It can't be forgettable in comparison. When in doubt, ask your agent to show you the local competition.

Good luck and don't hesitate to let me know if you have questions. I'm here to help - no obligation. :) Originally posted on Why Didn't My Home Sell?

Stimulus Plan a Big Miss for California

Thu, 26 Feb 2009 00:46:38 -0600

The Homeowner Affordability and Stability Plan was recently released. It attempts to address some of the issues that the current housing market is struggling with and I have been through some of the details and as it currently is written, I'm disappointed.

Near the end of December last year I posted the article about about the top 10 worst housing markets in the country, according to CNN. Unfortunately, 8 out of 10 were in the state of California. Now keep in mind, California is a massive factor in our national economy. Our Gross Domestic Product is larger than all but 8 countries in the world. You will not fix this housing crisis if you don't address the state of California.

The plan that came out has one elemental problem (there are others but this one is a deal breaker) - it only applies to Fannie Mae/Freddie Mac backed loans. Translation: if the loan is over $417,000, no deal.

Let's examine this just a bit. In most parts of Orange County, in 2004, 2005, 2006, and 2007, you couldn't get much more than a very small condo for $417,000. You couldn't buy a single family home in most parts of Orange County for under $600,000. The people that are most at risk are the people that purchased during that period of time- and the big Affordability Plan - doesn't apply to them.

Look at the numbers for the big California markets - Los Angeles, San Diego, the Bay Area - it doesn't change. So call me crazy, but I don't get it.

Hell, I'm happy for the folks in the midwest that this has an impact on. I'm happy for the people that will benefit from it. But I'm not sure this solves the problem at hand.

You can solve this for the folks in Kansas, but if you leave out 8 out of 10 of the worst housing markets in the country, are you really addressing core of the problem? Just sayin'.

Originally posted on OC Real Estate Voice.