Scott's Blog

Where do we go from here?

2008-08-22T14:24:51Z

The numbers don't lie sales are up for two months in a row compared to last year in my area. So my question is where do we go from here? Sales seem to be breaking out every where and sometimes I'm there when it happens. Will prices continue to increase? Will interest rates keep settling at a higher percentage? Can both things keep on happening at the same time? I know the answer to that one is no. But what about prices? I have buyers that are waiting for prices to go lower. In my area this does not seem likely. Primarily because we have experienced a 50%+ drop already since '05. Their thinking is to wait and buy around Christmas time when we all know selling real estate can be a challenge. It would be interesting if the powers to be could figure out a way to drop interest rates so that we could recover some of the equity in our homes and keep this momentum going.

Murrieta's REO Report

2008-08-21T12:45:00Z

Do you remember that old saying? "If you come to a fork in the road, take it.

Now I know what they meant by it. There are so many choices in the market place that its hard to pick the right one. This process is helped by the fact that banks are receiving multiple offers but it is still a struggle for some folks to choose. Of course I'm talking about the current real estate market here in Southern California. I have clients who are finding three and four properties that they could easily live with. Patients on my part is paying off. By not rushing people to make a decision when they are not ready I will continue to have a happy clientele base. It can be very over whelming to choose a house in today's market. You can see for yourself www.soldbybarr.com

THINGS THAT STILL REMAIN

2008-08-18T22:11:09Z

No this is not me surfing but maybe one day you never know. I was just thinking about all the things that there are to do in Southern California. Surfing is just one of the many ways one can enjoy

themselves here. There are also the mountain ranges that surround our In Land Empire as it is called in my neck of woods. Big bear, Arrow Head,there's even a Mt Baldy nearby. I guess they ran out of names when it came to the latter one. Anyhow, there is much to do here. Yes we are having a real "real estate" crisis and yes it will continue this way for a year or two but don't feel too sorry for us. We live in area of the country where in the same day we can surf in the Pacific Ocean in the morning and then walk under gigantic pine trees 6,000 feet + above sea level in evening. All this can be done on one tank of gas. I know we did it again this weekend. My daughters spent the summer working at a camp in Iddlywild another mountain range that I failed to mention. All the girls were back except one was still working at the camp. After surfing all day we went "up the hill "as we call it to bring her home. When we were waiting for the endless goodbyes to end I thought about how great it was to smell the pine trees and see all of stars at night. Yes we in the real estate field are struggling in some way or to some degree but I have learned through these last couple years that there is always something to be grateful for. For one I realized how blessed Iam to be living here. Some times its easy to take what we have for gran it and not appreciate the good things that remain. In these tight times I think I'm going to focus on the good that still remains.

No, this is not Mt. Baldy it is yours truly surfing.

Where is Hemet California?

2008-08-18T19:20:46Z

You should see the house that comes with this pool. Well, let me show you the inside.

I got a better idea go to www.40375pageantplace.com to take the grand tour if you like.

If you or someone you know finds themselves in need of a perfectly kept home located in Hemet, Ca contact me at 909-261-2497 or e-mail at scttedward@yahoo.comThis home is also featured on the following site www.soldbybarr.com

MURRIETA'S REO REPORT

2008-08-18T17:22:03Z

THE ANATOMY OF A SHORT SALE PART 2

Is there anything else that home owners who are facing default on their mortgage can try before selling short or letting the house go? Well, here are two one might consider:

Try doing a Loan Workout with the lender this works as follows: You as the home owner contact the bank or lender and try renegotiate your loan. If by lowering your adjusted interest rate, they can keep your loan on the books this might be worth the effort. In some cases the bank might be able to forgive some of the debt owed. If neither of those works for the bank then see if you can get your monthly payment lowered. The idea here is to try everything you can to avoid the inevitable.
Or maybe the bank would consider a Deed in Lieu of Foreclosure: This is where the home owner gives the title to the lending institution for full consideration of the debt owed. The banks benefits by avoiding the expenses incurred by going through the foreclosure process and the home owner keeps a default off their credit.

Until the banks come up with a better way to do things for people, I think we are going to see many more short sales on the market. If this is the case then much improvement is needed to get these deals done. In my next post on "The Anatomy of a Short Sale" I'm going to take you through a typical short sale that I'm currently involved with as the listing agent. You'll get a court side seat and see how the process works.

If your looking to sell your home in the Southern California area go to www.soldbybarr.com to experience a home SOLD BY BARR. Maybe your home could be the featured home.

TEMECULA'S REO REPORT

2008-08-14T20:46:28Z

THE SKINNY ON THE SHORT SALE PROCESS

I've been doing short sales on both sides of a transaction for all of '08. I keep hoping and praying that this mess will clear up and go away. It looks like it's going to be with us for awhile. I've been thinking about what could help make the process go smoother. Sooo here's my two cents; let's make three cents:

HIRE UNEMPLOYED REALTORS -Think of all the talented people, outstanding people, who decided that the life of a realtor was not for them. Why not tap into this work pool? Who could better relate and get real estate transactions done then folks who have already been there?
TALK TO THE SAME PERSON EVERY TIME-I know this one is asking a lot but think how productive we all could be if we had the same contact person. Let's say that for some reason this can't always happen why not have a compromise and have teams of 2 or 3 this way the conversation has a better chance of moving forward.
TRAINING-I think the people directly involved in the loss mitigation process should receive on going training and updates on the certain markets that they "lord" over. We in the business have watched, for over a year now, banks loose money because buyers will not wait forever to hear an answer when they can get the desired results much sooner from an REO. http://www.soldbybarr.com

MURRIETA'S REO REPORT

2008-08-14T06:14:51Z

ANATOMY OF A SHORT SALE

Short sales have become a big part of the California real estate scene. They are becoming so prevalent that I've decided to test my expertise by seeing if I can successfully break the short sale process down like an scientist would the human body. I will attempt this feat in two separate posts. First, there are three important facts that you must know before attempting a short sale. You must:

Know exactly what a short sale is.
Know the time line for a short sale.
Know if you meet the lender's qualifications for a short sale.

What exactly is a short sale transaction? - A short sale is when a seller of real estate has decided to sell his property but does not have enough equity in the property to pay off all of the loans that are on it. In other words, the seller owes more than the net value of the property after all the expenses are paid.
What is the time line for a short sale? - Usually, when a homeowner has missed two or three payments, the lender will put pressure them via a NOD (Notice of Default). At this point, the homeowner has 90 days to bring the loan current. On day 91, the lender has the right to post a Notice of Sale on the property. The homeowner then has 21 days to not only bring the loan current, but must also pay any and all penalties. After the 21 days have passed, the bank can then sell the house on the courthouse steps.
What qualifies a seller, in the eyes of a lender, to do a short sale? - First and foremost, a seller must prove that he is in financial trouble due to some kind of hardship such as sickness, loss of job, changes in the financial markets, divorce, job transfer, birth of a child taking one wage earning out of the workplace, or death. The bank will check to make sure that there is a financial crisis. If, for example, someone owns a lot of assets and has equity in those assets, then the bank may not consider him eligible for a short sale. The important thing to remember here is that the lender or bank has the final decision on approving or disapproving a short sale. These are some of the things to think about when contemplating selling your home as a short sale. Even if you do decide that you meet all the requirements, you must realize the negative consequence a short sale will have on your credit verses a foreclosure.

MURRIETA'S REO REPORT

2008-07-04T02:33:24Z

It still surprises me when people, who should buy rather than rent hesitate because they think the big dip is going to happen again. I've got news for all the naysayers, California is having a "blue light special" and it's already begun. Yes it will last for 14 more months or so, but the point is it has started. I know from experience that 89% of buyers and investors never buy when prices are going down. They generally wait for prices to go up then they jump in and regret it later. As of 7/3/08 prices will drop 5-10% then go up 10-15%. If you don't buy in the next 12 months you will miss out not only on low prices, but also on low interest rates. That could cost you thousands of dollars in the end. Twelve months seems like forever to some of us. But in terms of investing in real estate, it's not. For example, think about this scenario. Someone decides that they are going to buy a home instead of renting. If they choose to use a buyer's agent and don't have someone they can trust, they will need to interview at least two agents. Let's say it takes two weeks to decide which agent they feel comfortable with. Next they will have to make an appointment to meet with the agent to start to search for their deal of a life time. Another week could have easily gone by. We are now up to three weeks and they still don't own a home. After they preview 10-15 homes they decide to make an offer. Again, another week was used up to preview the homes. One month has gone by and still no house. Most houses on the market in Southern California are either bank owned or being sold as a short sale. If it is a short sale, count on it taking 3-4 months from the time you summit the offer and the time it takes to close. The whole process can easily take 4 to 5 months. Now, bank owned properties do generally close faster but they too can take up to 3 months or so to close. The key is getting an answer from the bank.

It is easy to see how time evaporates quickly when you are shopping in a "blue light special" real estate environment. If you would like to see all the short sales and bank owned properties in Southern California, go to my web site at www.soldbybarr.com I do have some internet specials of my own that you might find interesting.

MURRIETA REO REPORT

2008-06-13T15:09:03Z

Yes, I really did show 14 homes to my clients yesterday. And as a result I'm writing two offers on two different properties. I love being a buyer's agent in this market. It was one of those surreal real estate moments. We viewed 6 of the 14 homes on one street. Not only did we save on gas, but we got our walking in too. We had to drive one block to look at the rest of the homes, including one that we are putting an offer on. What we viewed was astounding. 3600 sq ft properties were going for $320,000. Luckily one of the homes we are putting an offer on has only been on the market only 6 days. Hopefully, our offer will be seen and accepted before all the other offers come pouring in. This was an efficient way to house hunt. My buyers were very satisfied with the result of our efforts.For more information GO TO www.soldbybarr.com

UPDATE: We are in escrow and my clients opted for the 3670 property. This house is huge. It comes complete with granite counter tops in kitchen and upstair bath rooms. The back yard backs up to a beautiful canyon.(no neighbors directly behind) They got all of this, plus a three car garage, for under $90.00 a square foot. This property is located in Murrieta Ca. 1:15 from the beach. Surf is up!!

Murrieta REO Report

2008-05-24T18:29:25Z

Anza lies nestled in the mountains just outside of Murrieta in the Inland Empire of southern California. When I previewed Anza properties this morning, it was refreshing not to see a ton of REOs. Murrieta is bursting at the seams with them, making it the "bank-owned captial of the world." You can see for yourself on my website: www.soldbybarr.com. You should be able to search most of southern California with it. The lesson here is that you have to be careful where you put your investment dollars. Anza is located only 35 miles from Murrieta. The people who bought in Murrieta too late have lost most, if not all, of their equity in their properties. However, if you bought in Anza, say around 2004, you still have at least 50% positive return on your investment dollars. That to me is truly amazing. We can derive two things from this:

1.) It is time to buy in Murrieta.

2.) Hold on to Anza properties for long-term return. I will continue to watch both of these locations and report my findings.

Temecula REO Report

2008-05-23T23:47:24Z

Sales are still going strong as we close out another week. And why not. With prices in southern California close to prices in the rest of the country, investors are having their day. We are continuing to see multiple offers on bank owned properties. And a friend from the banking side has said that there are 6,500 more properties coming to market. It will be a little while before we sell through this inventory. I think folks from the Mid-west are going to see this as an opportunity to own in California and help with selling through this supply of homes. Soooo if you know someone who wants to invest in "Califronia gold" call 909-261-2497. I'm never too busy for your referrals.

Murrieta California REO Update

2008-05-22T20:37:47Z

The bank homes continue to lead the way in home sales in southeren California. Prices are bouncing off the bottom of the market. I predict that prices will increase in the latter end of the second half of '08. 2009 will be too late to capitalize 100% on this market. It is very intresting to see the buying opportunties that are out there. I don't see prices dropping very much more in my area of the country. In fact I'm continuing to see multiple offers on properties. That alone is nothing new any more, but seeing how fast properties are selling as I write this is. My current buyers that I'm working with are starting to notice it. Good luck and good selling to everyone.

For the best real estate search engine go to www.soldbybarr.com

TEMECULA REO REPORT

2008-05-15T01:06:59Z

It's been another great week in real estate. Lately I've been looking at propertys in the Crown Hill area of Temecula. The prices per square foot are at the cost of materials. That means that the labor is "FREE".Investors from Orange County seem to be buying most of the properties. What do they know that the folks sitting on the sideline don't know?

Temecula REO Report

2008-05-08T01:13:39Z

Once again we are seeing sales increasing in Southern California, particularly here in Temecula. For those of you who do not know where Temecula is located we are approximately 65 miles outside of San Diego and about 85 miles outside of Los Angeles. There have many golf courses to choose from which makes it a nice place to live and even a better place to retire in. Home prices are near a 5yr. low. We are experienceing a heavy volume of bank owned homes, droping prices down to 2003 levels. This coupled with 6- 6.25% interest rates make living in Southern California very appealing.

MURRIETA REO REPORT

2008-05-01T22:51:22Z

Well, I put another offer in on a property that had multiple offers. There has been a shift in the market. In some cases, homes are starting to sell as fast as the agents can list them. Murrieta is becoming one of the hottest markets around. I strongly recommend that those of us who have been watching the market in Murrieta California to get in now. It is a great time to buy.

Temecula REO Report

2008-04-29T12:12:45Z

Temecula is experiencing a high volume of sales due to "Bank owned" property's. Homes that sold for 600k plus are now selling in the 300k range. As a buyers agent, this is very exciting for me and my clients. Although, I must add this caveat; we are seeing multiple offers on almost every transaction. In fact, one property that was priced way below market value, had 25 offers on it including 3 cash offers. Bless the listing agents heart, she said she was going to summit all offers. (Maybe thats why she is so successful.) Anyway, this is the time to buy in Temecula Ca. If you don't believe it, call me at 909-261-2497 and I'll show you what I'm talking about.

AGENT CARAVANS

2008-04-12T23:50:59Z

I need input on caravans. I would like to know other agents opinons on the subject. There are three questions I have. 1.) On a scale of one to ten how much do they help in marketing real estate? 2.) How many agents show up for out of office caravans? 3.) What would be a good alternative? Thanks