The Real View

The Latest San Diego Remodel: Staircases

Mon, 02 Nov 2009 11:45:45 -0600

Carlsbad, CA–Over the past decade, there has been a flurry of home remodeling in San Diego County–particularly in coastal areas, where building activity first blossomed. During the last ten years, tile and formica surfaces in kitchens and baths have been replaced with natural stone products, while stainless steel appliances dominate kitchens. Popcorn has been scraped from ceilings and energy efficient dual-paned windows are replacing their single-paned predecessors.

Now, the staircases in 1970’s and 1980’s homes are being replaced.Being torn down are enclosed staircases, along with those stem walls withwrought iron toppers and 2×6 handrails (see photo at right). Some are being replaced because of safety issues that could result in a child’s head could get stuck between the stair rails–or a disastrous fall .

We had the opportunity to interview San Diego’s original staircase replacement expert, Gregg Kuzara, who happened to spend a few days in our home performing his wood and metal magic. He explains that because of the advancement in tools, technology and trade that what might have cost $30,000 (or much, much more) just 15 years ago can now be had for perhaps $10,000.

Where once wrought iron staircase pickets had to be handcrafted, they can now be largely manufactured offshore. Cordless tools, computer drafting and other construction advances have made staircase replacement far more efficient–and far more affordable, than we had imagined. Count on teardown and reconstruction taking at least a week–and probably longer.

The results, though, might add an entirely different dimension to your home. As we show homes throughout North San Diego County, it is easy to see the difference newer wrought iron, railings and woods can make to older barriers. And finally, this article has nothing to do with what we are paying for our staircase replacement. Consider this a heartfelt and unpaid endorsement.

Would we recommend Gregg Kuzara and his San Diego staircase replacement services? We would–in a heartbeat!

Click to search all listed homes for sale in San Diego

Real Estate Consumers: Trick or Treats?

Mon, 02 Nov 2009 11:01:57 -0600

Carlsbad, CA–This past year has been tough for both San Diego real estate sellers–and buyers–and both sides of the fence have had to wonder if they are being tricked or treated by market conditions.

On one hand, home sellers hear that we are in the toughest market for San Diego home sales in years. Prices have dropped off the cliff and these home sellers have heard of neighbors who finally took their home off the market after trying to sell for a year or more.

On the other hand, we have buyers who have made multiple offers on multiple properties (usually San Diego’s fabled short sales and foreclosures), and have given up hopes of ever being able to buy a home in San Diego County. Their exhausted real estate agents are also about to throw in the collective towel.

So what is really selling in San Diego–and who are the succesful home buyers?

Click to continue reading....

Click to search all listed homes for sale in San Diego

Mortgage Delinquencies - The Coming Storm

Thu, 01 Oct 2009 09:12:23 -0500

We are seeing an increasing number of lender-generated loan modification attempts here in San Diego County, but some borrowers have just thrown in the towel.

These bloody charts say much:

Via Jeff Geoghan MBA - Lancaster PA Real Estate Expert (The Jeff Geoghan Realty Group, Coldwell Banker Lancaster PA):

This is one of those posts where I wish I didn't have to write it, but felt it was so important to my readers that I would be remiss not to at least talk about it.

Everyone out there probably knows somebody who is behind on their mortgage payments, looking for alternatives and likely also just finding out that their home's value has dipped below what their loan amount is. I know some within my own personal circles. It's a tough situation for me to advise them as a professional because it's such a personal challenge to their pride and self-worth, not to mention their plans an dreams for the family. The question we're asking is "when is this going to stop and where are we heading?"

I'm going to put up a few graphs that show the trends nationally with regards to mortgage delinquincies:

This chart is by quarter - Single-family mortgages set a new record delinquency rate in the second quarter of 2009, according to a quarterly survey by the Mortgage Bankers Association. Those of us in the real estate business see the foreclosure process (just visit the local Sheriff Sale docket to see the current numbers) but the looming delinqency-to-foreclosure issue is far, far larger.

The Wall Street Journal on 8/3/09 reported the following quote: “While subprime mortgages sparked the first round of housing problems two years ago, now "troubles are lurking further up the food chain," says Joshua Shapiro, chief U.S. economist at MFR Inc. White-collar job losses have accelerated while more adjustable-rate loans to prime borrowers are resetting to higher payments. ‘You put all that together, it leads me to believe that the next leg down on home prices is going to come from the top,’ he says.”

The first objection someone may have would be to say "yes, but historically those who are delinqent usually get their act together and come current on the mortgage after a while". That WAS true, but not anymore! We call that the "Cure Rate", that is the rate of delinquencies that go back to current. The Wall Street Journal reported on 8/24/09 about a Fitch analysis that found that the Cure Rate from 2000-2006 was 45% (which means about half of people fix their delinquency). However, as of July 2009 the rate had dropped to just 6.6%! That means that over 90% of delinquent customers are going to foreclosure. Take a look again at the above chart...

The next thing someone will say is "well, that's the 'sand states' and not my area". Here's the chart for all 50 states showing the same breakdown of delinquencies and foreclosures. Guess what - most states have a significant problem, especially compared to historical figures.

Now the next thing someone may say is "aren't those loans going to get 'fixed' by a loan modification?" I know several people right now who are applying for a Lancaster County loan modification but are waiting and waiting. I hope it works out for them...

In reality, loan modifications are hardly making a dent. To me, that's a burning question. Why arent banks being more aggressive in giving customers the option to extend their loan and/or reset to a lower rate? Why are they being SO difficult? The people I know don't want to be foreclosed. They CAN make payments. They just need the terms redrawn to allow them to catch & keep up. Loan modifications are not helping us get this crisis under control.

What are the causes of all these delinquencies? Here's a chart that is enlightening:

We hear a lot about adjustable rate mortgages being the culprit, but the reality is that it's the loss of jobs and the tanking real estate market that's the perfect storm. See my previous post on unemployment in the nation, the state and Lancaster County.

Keep in mind, this post is not intended to give us "good news". You may be experiencing good things in your market and that's great. My intent is to get us thinking about the challenges that aren't going away and how we're going to address them as homeowners, agents and professionals. I'd love to hear your ideas!

Freddie Mac Offering Foreclosures Back to Owners?

Sat, 08 Aug 2009 23:05:41 -0500

This is a program that makes a world of sense for real estate foreclosures.

Freddie Mac, even after foreclosing on a home, now offers the former homeowner the chance to either lease the home–or buy it back as long as the occupant is employed and not engaged in a bankruptcy.

This keeps the home occupied by someone vested in the property, helps preserve neighborhood values and will likely eliminate natonal foreclosure problems much more quickly. And it’s also pretty cool that some homeowners get to stay in their homes without the disruptions that go with moving.

Freddie Mac gets it.

Freddie Mac hires representatives to contact owners of foreclosed homes to see if they would like to remain–and possibly refinance into something more affordable.

And this is done before the foreclosure deed is recorded. There is now a window of opportunity for homeowners to remain in their homes without the embarrassment of tacky foreclosure signs in the yard–=and the pain of moving. We’ve known about their leaseback offer:

Finally, in those cases where foreclosure proves unavoidable, Freddie Mac still works to keep families in their homes. We have suspended evictions triggered by foreclosures, offering qualified former owner-occupants and tenants leases so they can rent the properties on a month-to-month basis after foreclosure.

We now hear from good sources that Freddie Mac is also offering some homeowners the opportunity to refinance their homes after the foreclosure– before the foreclosure deed is recorded.

Kudos to Freddie Mac!

Approved by Cartus?= 40% Please

Sat, 08 Aug 2009 13:49:18 -0500

So many hands are trying to reach their way into the real estate transaction. I was not aware of Cartus' tactics until readilng this.

Via Northern Virginia Homes - FRANKLY REAL ESTATE Inc:

Cartus relocation company is a CROC! (that is an opinion, for more opinions Google Cartus sucks).

Actually many "relocation" companies that are supposed to help the employee are just fronts for making profit. And they have such a compelling pitch! How could an eligible buyer actually decide to bypass them? EASILY!

I'll explain exactly why you might want to bypass your relocation company AND how you can use PART of their system to your benefit and ditch the other part.

Why am I picking on Cartus? Cuz I was robbed. I got this email the other day:

Hi, I'm moving to Virginia with my job in a month and my fiance and I are a big Frank fan! {Name Omitted} recommended you to us. We love the website and reading/listening to your blog. And, we'd like to go with your realty firm when we purchase a place in Northern Arlington this summer. Fortunately for us, my company (XYZ) is willing to pay Realtor's fees and closing costs but I need to approve you as a realtor/realty before they will allow us to get started.

I added the emphasis.

1) Fortunately for us. Wow, the company is so gracious. They really care about their employees. Consider it a benefit like healthcare. They will pay Realtor fees and closing costs! (end sarcasm here)

Ok, first of all when you are buying, there are NO "Realtor fees" (sidenote: ha, I wonder if they pay for the bogus Realtor Admin fees which the Washington Post, link, just covered and cited my blog) per se because the Realtor fees are paid by the buyer. But it surely makes for a good BS pitch in the brochure. Why not also add: free keys! As for the "closing costs" I'll get to that shortly...

2) Approve you. Approve me for what? Make sure I'm good? Knowledgeable with people that are relocating? Maybe a quiz or a check for references? No. None of this happened.

I knew the "approve" the agent sounded fishy. I warned the buyer... I said "I bet they are up to something."

Finally Cartus contacts me. I get an email that effectively said: You are approved when you agree to give us 40% of your commission. (actually it said "registration entails a verbal agreement of a 40% referral fee.")

Are you F-ing kidding me? "Referral fee?" Did they refer business to me? Hell no. These buyers found me on their own. They were a personal reference from a friend that felt like they got great service. And Cartus demands 40% to be part of their program. What is this Robin Hood? Take from one to give a another? And keep a little for profit in the process?

So here are the details for their program, I am a fine print reader, so at the end I will try to parse this out for you.

CARTUS HOME PURCHASE CLOSING COSTS

There are numerous expenses associated with the purchase of your new home that vary by state and local custom. You will be reimbursed for buyer’s expenses customary in the new location; which should be discussed with your Cartus Relocation Consultant.

In all cases, only one set of lending fees and one-time closing fees will be reimbursed. Fees and charges most commonly recognized for reimbursement are:

Abstract or title search, Amortization fee, Application fee, Appraisal fee (1), Attorney fees (where required by state law), Certified copies, Credit report (1), Document preparation fee, Escrow fee, Guarantee fee, Inspections that are normal and customary for the area (termite, well/septic),

- Loan origination fee not to exceed 1% of the mortgage amount. If you do not contact Cartus prior to beginning the home purchase assistance program, you will not be eligible for the 1% loan origination fee.

Homeowners title policy for new construction only, Lender's Title Policy, Messenger service fees/express shipment fees, Notary fees, Recording fees, Settlement or closing fee, Survey, Tax service fee, Title examination, Underwriting fee

Isn't it fun making a really long list of fees that are paid? Even though many of them are next to nothing. I just pulled up a HUD1 for a buyer (note that fees can vary by closing company and frequently get renamed and shuffled around).

Here are a few of the next to nothing fees on the list that you get FREE!!: Notary Fee= $0, Messenger= $55, Tax service fee $0, Recording $65, Termite $35, Credit report $14, Title examination=$0.

The fees that have some real value: Survey= $265 Settlement fee=$195 Title Search=$175 Lender's title insurance=$1,800 (on a $650k VA home, reissue rate) NOT present in the list of closing costs: Owner's title insurance= $1350 (except for closing costs) Read more on Owner's Title

Conditional costs. Ie IF, a big IF, you use their "approved" Realtor. You get: Loan origination fee 1%. Lenders have a ton of names for these types of fees. Sometimes they are called "Rate buy down" points, or "Discount Fee." The short hand is just "points." Points aren't necessarily bad (make sure to subscribe to this blog for a full post on when to buy points). More often than not, if you put down 20% there are ZERO POINTS, ie $0 Loan Origination fees. So if you DO use the Cartus program, and an "approved" Realtor, make sure you go out of your way to max out the full 1% point. (ie if the lender was going to charge you no points, they can make up the fee and buy down your rate, as in make your 5% rate 4.75% approximately)

But here is the fine print as I understand it...

BOTTOM LINE: You only have to use their approved Realtor IF you need that Loan origination fee. In other words, you can still pick your favorite Realtor and get all the other fees covered for free by Cartus. (I could be wrong, but that is how I understand their rules above).

Why in God's world would you give up the ability to get a "free" 1% loan origination fee?

Well that is a separate and lengthy discussion on rebating and discounting. Heck, there are several companies that will give you a 1.5% cash rebate. Heck a 1.5% cash rebate is MUCH better than no cash reimbursement for a 1% fee you might not have purchased normally.

WAYS TO MILK CARTUS

1) Have them pay ALL your fees except the 1%, and find your own Realtor that will give you a rebate.

2) Or if you find a Realtor that is willing to be "approved" by Cartus, tell them "hey buddy, you are willing to give 40% to Cartus right? And Cartus will just turn around and refund 33% (1% or 1/3rd of the 3% offered to buyer's agents) of the 40% in the form of a 1% loan rebate, why not just give me the 40% directly?! Cut out Cartus and get 1.2% refunded on your HUD1 vs 1% lender fee repayment and Cartus pocketing the rest.

3) Get your own un-approved agent, skip the loan fee reimbursement, yet accept all the other fees. So why am I telling you the secret path to getting the most cash out of the relocation company and system? Well maybe, just maybe you will then believe me that #3 above might be the best solution for you in the end.

Stop and think about for a second. Cartus demands 40% from a Realtor that you pick or one that they pick. So for the ones that they pick, what kind of Realtors will accept that? Oftentimes desperate ones. Perhaps those that are kinda struggling. You know, economy is tough right now. Weekend warrior Realtors that have nothing better to do? One that will pressure you into a house and hope to get you off their slate as fast as possible so they can make the next 60% deal from Cartus. Perhaps they have to cut down half the time they spend on you, to make it worth it.

So signing with Cartus with an "Approved" Realtor, is not much different than Rebating. I have no problem with the rebating business model. (note: you won't find many other non-Rebating Realtors talk about it openly).

Why do I talk about it? Well as I like to say "I use to rebate, but then I got good." Yep Read: Realtor Rebates. Free Money or Expensive Savings? and more on rebating.

In the end, know you do have a choice. You can get the best of both worlds. You can get Cartus to pay a good amount of your closing costs, get a loan with NO loan origination fees, and get to pick an agent that is working for YOU, and not for Cartus.

Oh, and remember I'm not too busy for you, so email me. See I'm Not Too Busy For You video #1 and Video #2

Make sure to subscribe and comment and debate. Nobody likes a stale blog!

Written by Frank Borges LL0SA

Broker FranklyRealty.com

Owner FranklyMLS.com

Croc image DrBartje Fish image Phillip

ps. My experience was on the BUYING side. Can somebody comment on the SELLING side of relocating? Do they really buy the house at the appraised price and eat any subsequent loss? Now that seems to have some value in this market.

San Diego REALTOR Soiree- June 23, 2009

Tue, 09 Jun 2009 22:18:21 -0500

I'll be there and am encouraging our fun agents to attend as well:=)

Via America's #1 Mortgage Broker/858-777-9751:

What a great opportunity to relax and network among other San Diego Real Estate Professionals at the D Street Bar & Grill, in Encinitas, on June 23, 2009. There will be no educational agenda for this meetup; just good ol' fashioned fun and networking.

We're trying to "rebuild" the fun and educational times of two summers ago so please invite a friend or two

Location

D Street Bar and Grill

485 S Coast Highway 101
Encinitas, CA 92024
Change Place

How to find us
"You can always call me at 858-777-9751"

San Diego Real Estate Agent Meetup- April 8

Mon, 06 Apr 2009 09:00:50 -0500

Meet-ups with Brian Brady are always the greatest!

Via America's #1 Mortgage Broker/858-777-9751:

The San Diego Real Estate Agent Meetup is Back

Join in on the fun, business networking, free appetizers, and raffle prizes. This month, we'll join up with Coastal Networking, one of San Diego's best networking groups. Meet great contacts for either business or pleasure. This month, we'll be at Venice Ristorante in UTC from 5:30 to 7:30ish.

Venice Ristorante

4365 Executive Dr.

San Diego, CA 92121

858-597-1188

RSVP HERE

BPO Agents Beware

Mon, 22 Dec 2008 14:48:50 -0600

The world of short sales and REO's is not without its predators in Realtor's clothing.

Some of you, for example, may have had a short sale listing or sale blown out of the water because of an inflated BPO (Broker's Price Opinion) designed to negatively sway a lender's/negotiator's decision regarding offer(s) on the table. Often, these inflated BPO's are generated to gain an unethical financial or business advantage--generally to obtain a listing agreement from lenders and loan servicers.

When this practice occurs, it harms not only potential buyers, but also owners whose homes end up going to foreclosure, the buyers' and sellers' agents, and the lenders who entrust BPO's and property valuations to agents with ulterior motives.

It is an unethical practice that can have disastrous results for many.

But those who inflate BPO valuations in California could end up losing their real estate licenses.

Effective January 1, 2009, agents who inflate BPO's might have to forfeit or suspend their real estate licenses, courtesy of the California Department of Real Estate, "if the licensee generates an inaccurate opinion of value for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement," per SB 1737.

It's about time....

Breaking Down the Big Boxes

Wed, 22 Oct 2008 22:17:39 -0500

Until recently, we all heard about the demise of the Mom and Pop real estate agencies, and how all the independents would be swallowed by Coldwell Banker, Prudential and all the other red, white and blue real estate boxes.

We were told that ultimately, there would only be a few big firms left standing in the world of real estate brokerage.

It was all solid research, or so we were told.

But:

Murphy's Law of Research
Enough research will tend to support whatever theory.

My theory, based on anecdotal evidence, tends to support another view; namely, that the prairie fire that has swept the real estate market the last couple of years has spawned a proliferation of small and independent real estate companies. I am amazed at the number of new and unknown companies in our San Diego real estate market--and find that in certain communities, they are outlisting and outselling their behemoth brethren

What gives? I wondered just a couple of weeks ago.

Now I understand.

It was just last week that I heard Sotheby's International Realty was closing operations in San Diego--and that Prudential would be offered the chance to pick up the pieces.

Humph. Never did consider myself to be a piece--or a piece of anything.

Our little group decided to join that growing group of agents and brokers who operate without franchise ropes--and the rugs that tend to get pulled out from under when least expected.

Yesterday, we made it official with our MLS and Board of Realtors. The hardest decision, though, was what to call ourselves.

In the end, we unanimously decided to let the tail wag the dog--and named the company after our website that has been around for years:

San Diego Previews

Taglines to follow.

And what is that saying about grass growing greener after a prairie fire?

8 Steps to Help Preserve Your Neighborhood From Foreclosed Homes

Tue, 30 Sep 2008 11:54:16 -0500

Sacramento Realtor Gena Riede has some outstanding suggestions for preserving neighborhoods from the visual and health ravages of foreclsoed homes.

Via Sacramento Real Estate and Luxury Homes, Assoc. Real Estate Broker,Gena Riede:

Are there foreclosures in your neighborhood? Sacramento, CA has certainly had its fair share of real estate foreclosures. Some neighborhoods worse off than others. The steps to be a pro-active neighbor are not just for Sacramento neighborhoods but can be applied all over the country.

Have homeowners moved out on your street? Are there vacant homes on your street? Have renters moved out and no one has moved in?

Have you seen the remnants of a Foreclosure in your neighborhood? Are you sick of seeing burned-up grass in neighborhoods?

I recently saw what could be a solution to help sell a house where the banks have decided to turn off the water and no one is taking care of the lawn.

Here are some solutions neighbors can do to help preserve their own neighborhoods:

Form a Neighborhood Watch through your local Police Department

Become familiar with your neighbors and know who is living in the houses on your street

Be aware when neighbors move out (many times a house stays vacant for months before a bank is aware that the owner has even moved out.

When a house is vacant, check for trash and put it out for pick-up. Remember, no one is there to do it and trash brings rats into your neighborhood

Park one of your cars in the driveway and rotate them to keep pilfers at bay

Pull weeds and mow the lawn...take turns in your neighborhood and keep up your street

Report broken windows etc to your County officials

Report any suspicious cars or people on the property

It's time that neighbors took back their neighborhood and become pro-active. Don't try to use the water or figure out a way to turn on what has been shut off at a vacant house. As this may cause major flooding inside a winterized house. If water is needed, use your own water.

A proactive approach is always less stressful and will lend itself to being a "good neighbor," while helping yourself in the process.

Solution: Let's Revive Assumable Loans

Mon, 29 Sep 2008 20:43:05 -0500

There are very profound fears that our credit markets are crumbling, and that life as we have known it may be in for serious change.

Now, as never before, we as real estate professionals need to help create solutions for our clients and bring sense to the market wherever and whenever we can. We need to know not only available mortgage programs (and savvy mortgage pros), but also become familiar with creative financing and alternative ways of selling real estate.

One thing lenders could do immediately is to allow existing loans to become assumable.

Many agents are unfamiliar with assumable loans, and might wonder how they work.

Let's use a simple example: Home Seller has an outstanding mortgage balance of $150,000 and is willing to accept a $195,000 sales price. Home Buyer pays $45,000 plus closing fees and assumes the existing financing. Seller exits the transaction with that amount, less closing costs. Future mortgage payments are now made by Home Buyer to the loan servicer.

In some cases, lenders (and sometimes the Seller) might offer secondary financing to help with the difference between asking and sales price--as long as the buyers had a cash stake in the deal. This could be done via a simple second, an all-inclusive trust deed or wrap-around mortgage.

I can't help but wonder why mortgage lenders don't revive the assumable loan, help kick start the real estate market, and save at least a portion of their own and investors' portfolios in the process? Their investors would surely rather have their loans paid off by another borrower, rather than suffer near-certain loss in a foreclosure sale.

In many cases, sellers have no equity. Why not allow them to offer their mortgage debt (or renegotiated debt) as assumable financing for potential buyers? Lenders might be relieved to have mortgage payments brought current--and might even require the new buyer to deposit two or three month's payments with them as insurance against future default.

By allowing assumable financing, lenders would fare much better vis-à-vis short sales and foreclosures--and more homeowners would be able to save their credit and exit their homes with dignity. Most lenders now force homeowners to be in default with their mortgage before they will even consider a short sale or modification of terms.

It just makes sense to get the mortgage debt seamlessly transferred before it ever goes default.

And with the strangled liquidity in financial markets, it makes more sense than ever to transfer debt rather than forcing buyers to secure new financing--which may or may not be available.

Tighter Licensing Requirements for Real Estate Agents?

Fri, 05 Sep 2008 10:07:53 -0500

Louis Cammarosano at the Home Gain Blog just posted this on Active Rain. The Home Gain Blog is another great site I visit for interesting real estate reading--and for which I sometimes write.

The issue of tightening real estate licensing is critical. Far too many untrained licensees (along with equally foolish folk on Wall Street) have done far too much damage to American homeowners and the real estate market.

Via Louis Cammarosano:

HomeGain Guest Blogger Roberta Murphy thinks so. In her blog post "Weasels Guarding the Chicken Coop" Roberta complains of the former lenders, many of whom helped caused the current housing crisis are now real estate "professionals"

Read more here (opens into a separate browser for your convenience)

A Radical Resolution for Real Estate Recovery

Wed, 03 Sep 2008 00:36:26 -0500

Last week, I had the opportunity to interview Southern Califoria and Nevada real estate legend Bob Dyson. He has been in real estate for 40 years and has a long track record of success--ranging from owning the master national Red Carpet Real Estate franchise to Dyson & Dyson Real Estate in Southern California and Nevada, to Broker for Sotheby's International Realty in San Diego and Riverside Conties.

But the interview wasn't about Bob Dyson.

It was about a radical proposal that is quickly being embraced by Realtors, lenders and local Real Estate Boards. We taped a total of four short interviews, but the last two will probably be of most interest to the Active Rain audience--and I am posting them here.

Why resort to radical resolutions?

Because, says Bob Dyson “This is a real estate depression–a serious, serious issue.”

He sees an immediate need to stabilize real estate markets and neighborhood values. He also believes the mortgage lending industry needs to get out of the “asset management” business, and instead focus attention on new loan originations.

So what to do with all those defaulted loans and pre-foreclosures?

That’s where Dyson’s proposed “American Incentive Resolution” saves the day.

How would it work?

1. The American Incentive Resolution Corporation (as a government entity) would buy defaulted loans from lenders at 50 percent of face value.

2. Re-market these homes through Realtors at retail market value.

3. Offer these homes to first time buyers and those whose credit and FICO scores have been damaged by short sales and foreclosures the last couple of years. The initial terms would be a 12-month lease-purchase, with all payments accruing to a down payment as long as payments are made on time. Lease payments would equal what loan principle, interest, taxes and insurance would be under normal loan terms at 5 percent interest. Initial move-in would entail first and last months’ payments.

4. At the end of 12 months, the lease would become a purchase with all payments made under terms of the lease being applied to the full down payment.

Some will argue "Be careful whom you make your protector lest they shall become your jailer." In other words, keep government out!

Bob would likely reply that "Better we oblige the government to offer these properties to the American public, than to spread the spoils among congressional cronies."

The first video below details Bob Dyson’s proposal for restoring neighborhood values and the real estate market, while the second explains how YOU can involve your local board in helping to create and implement the American Incentive Resolution:

For additional reading: http://sandiegopreviews.com/2008/09/01/a-most-unorthodox-market-bob-dyson/

1756 Verdin Court in Poinsettia Heights, Carlsbad, CA 92011

Mon, 01 Sep 2008 16:27:33 -0500

This Carlsbad home sold in less than three weeks back in 2003, and at that time we set a record for the highest price ever paid for this 1720 square-foot model: $446,000.

And what a Carlsbad listing it was–with a great story to boot.

This highly upgraded Poinsettia Heights townhome with views over Carlsbad to ocean was nothing short of what San Diego real estate buyers were seeking in those days. The wife, in decorating this Aviara home, dismissed all costs. She buffed it out with new diagonally-laid tile flooring downstairs, new granite kitchen, marble master bath, and a powder room whose ultimate cost had yet to be revealed to the husband. To appease him and redirect attention, another king’s ransom was spent on the garage with gleaming epoxy flooring, tool cabinets and over-the-top garage storage.

Located adjacent to the Carlsbad community of Aviara, Poinsettia Heights is a gated community near parks, the South Carlsbad State Beach, good schools and shopping.

At this time and as of this writing, there are 3 active listings in Poinsettia Heights, ranging in price from $499,000 to $585,000.

For current availabilities in gated Poinsettia Heights, Aviara, Carlsbad or other North County homes, call Mike or Roberta Murphy at 760-402-9101/9102 or toll free at 877-818-8197.

Lowest Price Condo in Encinitas: Pacific Pines

Sat, 30 Aug 2008 17:51:38 -0500

We have a great couple looking for a San Diego condo near the beach. They were hoping to locate second-home with a price under $250,000–and were more concerned about a coastal location than the size of the unit.

We looked at condos in Oceanside, in Pacific Beach and Ocean Beach. What we didn’t expect to find was a lovely one-bedroom condo in Encinitas–at the gated community of Pacific Pines. It offers granite surfaces, brick fireplace, dishwasher, refrigerator, stove/microwave and washer/dryer. It is small at 650 square feet, but the price was remarkable at $195,000.

The gated community of Pacific Pines offers a pool, spa, tennis courts, club house, BBQ areas, picnic tables, sandy volleyball court, racquetball court, nearby hiking trails, and a location exquisitely close to the San Elijo Lagoon and Cardiff by the Sea.

We quickly wrote a full price offer on this Encinitas condo and submitted it this morning. It’s another one of San Diego County’s real estate foreclosures, so we are prepared for the inevitable bank and bureaucratic delays.

Below is the quick video I made for the clients prior to their drive down to Encinitas:

Dreaming of a Better IDX for All

Sat, 30 Aug 2008 17:46:38 -0500

I awoke this morning feeling grouchy, of all things, about the IDX system on my San Diego real estate site. I am tired of being charged exorbitant "set-up" and monthly fees for every improvement they offer.

They is not an exotic custom programmer, but a large company that provides IDX search solutions for a large number of agents here on Active Rain.

You see, I had called this IDX provider a week or so ago wanting to know how I could create a specialized property search. With my former IDX provider, I could create a search link for about anything I wanted. All homes under $200,000 in San Diego County? Easy. All $2 million and up estates in Rancho Santa Fe? Simple--and free.

"Sure, we can do it," said the rep. "It will be $200 for the set-up and $20 per month."

"What???" I screeched.

"Well, we can reduce the set-up down to $100, but it will still be $20 per month."

After grumbling that with my prior provider, this was a simple task I could do myself--and that I had already paid them an additional $XXX set up fee for the foreclosure search link (and $XX per month)--and please just have someone from management give me a call....

And no one did.

And I just remembered that before opening my eyes this morning. Which got me to thinking a perfect IDX solution would look something like this--at least for starters:

1. Easy MLS search that can be as detailed as the client wants. Agent can set the bar for viewer registration.

2. A robust back end, where agents can manage their client database, registrations, emails, visits, saved searches and the like. Maybe some SEO features as well?

3. An easy-to-manage MLS alert system that allows us to manage client search criteria from the back-end, without having to login as the client with password. When clients call and ask to remove a city or area from their search, please let it be a simple task.

4. If we are going to pay a subscription fee of $XX per month (and set-up fees as well), please don't try to charge us separately for every improvement you make to your proprietary system. We expect a continually improved product, because that gives us a good reason to stay with you and become raving fans (instead of those who bitch and blog;-).

5. Have someone on tech support duty during weekends. That is when many of us find time to work on our sites. (And why is it always easier to reach someone in sales than in support?)

6. Database compatibility. No one yet has developed the whizbang technology to make database migration from one vendor to another a seamless one. This is not about creating a csv file and transferring basic information like name, address, telephone and email. How about migrating complex entries like property preferences, correspondence and notes? Whoever provides this technology first will win the hearts and credit cards of agents from everywhere.

What features would you add to this wishlist?

Carlsbad Apple Store Opens to Throngs and Cheers

Sat, 16 Aug 2008 22:57:48 -0500

This morning, I thought I would drop by the Grand Opening of Apple's new store at the Carlsbad Forum before heading out to show properties.

As I pulled into that large parking lot, I couldn't believe my eyes. There was a line four-deep that stretched from one end of the Forum to (and around) the other. There were young and old and every age in between.

Black-coated security guards maintained crowd control, and Jimbo's Market from around the corner offered crisp organic apples to those waiting in line. Everyone seemed in good spirits, and I heard cheering in the distance coming from within the store, which had not yet opened. Orange-shirted Apple employees were lined up ready to greet excited customers, one group at a time.

When asked, one of the security guards volunteered that the queue had started before 4 a.m.--and I was astounded.

Why?

Because most people I know use PC's--if only because Windows-compatibility is require for our San Diego MLS and some other real estate programs--and I thought most everyone already had an i-Pod:-)

The long lines were a definite surprise, but then I recall hearing some background buzz on CNBC this past week about Apple overtaking Google.

Thoughts?

First time buyer credit - Housing Bill provides a tax credit for First Time Home Buyers

Tue, 12 Aug 2008 22:56:19 -0500

For San Diego homebuyers, Richard Smith offers some great suggestions!

Via Richard Smith Mortgages Home Loans FHA TN GA AL:

The $7500 tax credit for first time home buyers is a significant incentive to purchase. It is a major positive provision in the Housing Bill that passed Congress over this past weekend. This is a credit not a deduction, which means it directly reduces the taxes owed - dollar for dollar.

This gives the new home owner directly as much as $7500 cash in the pocket at tax refund time.

The credit incentive is retroactive back to April 9, 2008 and continues through June 30, 2009. The incentive is 10% of the purchase price up to a maximum of $7500.

The actual legislation that implements this tax incentive is called the Housing Assistance Tax Act of 2008 HR 5720. It is included as part of the massive Housing Bill HR 3221, that is waiting to be signed into law.

The incentive is available to individuals who make less than $75,000 and to couples who make less than $150,000. Above these income levels the incentive is reduced and is completely phased out at $95,000 for an individual and $170,000 for a couple.

The tax credit must be repaid over the next 15 years, and more quickly if the home is sold or is no longer the primary residence. Repayment is made by increasing the tax owed in the year the home status is changed (sold or no longer the primary residence). For more details on the tax credit and repayment provisions, please see a tax accountant.

A first time home buyer is defined as not having an ownership interest in a principal residence in the previous 3 years.

This credit can be good news for many first time buyers. Some reports indicate that over 2 million first time home buyers last year, and a large percentage of them would have qualified for such an incentive it had been offered last year.

It may offset some of the less good news for home buyers in the Housing Bill with the loss of seller funded down payment assistance

Richard Smith
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.

7 Tips for Crack Real Estate Negotiators

Tue, 12 Aug 2008 11:06:07 -0500

If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best buying opportunities in a lifetime as well.

We are seeing smart money aggressively buying in our San Diego real estate market, and hear reports of the same elsewhere.

The properties are being bought as primary homes, as fix-and-flippers --or are being held as longer term rentals.

We receive inquiries about these homes almost daily; but more recently, we are being consulted about strategies for buying real estate at bargain prices. These buyers may or may not have to sell their existing home to buy another--and may also be open to exchange possibilities.

Listed below are 7 strategies we use to help our home buyers (and others) get some of the best bargains on the market.

Study Market Time: Homes in general may take longer to sell these days because of pricing, percecived seller value and a more cautious pool of buyers. But that doesn’t mean sellers are any less motivated to move on with their lives. At one time, we thought little of homes sitting on the market for 90 days or more. These days, we seek buying opportunities if a home has been on the market over 60 days-- and are seeing some heavy price discounting from our buyers if days on market goes over 90 days.
Check Tax Records and other Sources: Is there more debt on the home than what it is worth? Has a Notice of Default been filed that would indicate a looming foreclosure? If so, and if this is a home of interest for our buyer, we submit an offer contingent upon the successful negotiation of a short sale (where the lender sells the property for less than what is owed). In this case, either we or professional negotiators deal with the lender(s) to reach the best possible price for our buyer.
Did Owners Pay Cash or Have They Owned Their Home for Longer than 10 Years? These sellers may be in a position to sell at a discount or may be motivated to do so due to life transitions or other investment opportunities. They may also be open to owner-financing for all or part of the home mortgage. Become knowledgeable about installment sales and other creative financing strategies.
Are You Open to Remodeling? Homes sold in as-is condition are more likely than others to sell at a substantial discount. Owners, especially when the home has been on the market for some time, are often overwhelmed with the thought of remodeling and updating–and fearful that their decor choices will not suit potential buyers. In many markets, older or outdated homes are sometimes sold at land value.
Foreclosure Sales: The f-word (foreclosure) is occurring even in the luxury home market. Highly leveraged homes purchased in the last few years are more frequently ending up on the courthouse steps. Foreclosure purchases, which require cash and carry no disclosures or guarantees, offer both great potential for profit–and big dangers for the uninformed. Bidding should be non-emotional and it is best to have a professional bidding for you–but only after thorough-as-possible research has been done regarding the home’s condition, its history and resale potential. Cracked slabs, structural defects and boundary line encroachments are unwelcome surprises.
Home Exchanges: This is a rather novel strategy for those trying to sell their luxury home in a bloody market. Life transitions encourage luxury homeowners to make moves. Empty-nesters may wish to relocate from their large estate to something equally posh but far less demanding in upkeep. Others may have expanding families that crave acreage, pools, tennis courts or equestrian facilities. In the Southern California market, Owner-Broker Bob Dyson and Villa Sotheby’s International Realty have set up a property exchange platform that allows homeowners to directly exchange properties and ownership. It is a tactic that helps to support neighborhood values and removes many of the pressures involved in having a home on the market for an extended period of time.
If the property you want is listed, have your agent check the other real estate agent’s listing history. If that agent tends to have listings on the market for a long time, you may wish to lower your offer. On the other hand, if the agent prices properties aggressively and has short “days on market,” you may consider coming in near to, at, or over list price. You will likely find those listings already priced at or below market to attract multiple offers.

A combination of patience, perseverance and the ability to move quickly will serve all astute buyers of real estate these days, but the greatest potential of all may lie with properties whose replacement value could far exceed the purchase price--or those with exquisite locations.

Pricing Rollbacks to 2002?

Fri, 01 Aug 2008 17:46:23 -0500

San Diego real estate offers ripe opportunities for discovery and information indigestion digestion.

We have seen San Diego real estate prices plummet in its suburban communities of Chula Vista, National City, Escondido, San Marcos, eastern Oceanside, Fallbrook and others.

After all, these communities (and other like them throughout the country) are full of newer subdivisions--many of which were financed with EZ loans and fictional incomes.

Established San Diego neighborhoods with lower turnover have been largely been immune from steep price declines or so I thought--until recently.

We recently had a showing of a vintage and lovely 1927 home on a large corner lot in Point Loma that was offered as a bank foreclosure--and at a price that fell below its 2002 sales price.

The details?

The last owner purchased the property a couple of years at $910,000 with 100 percent financing. Neighbors say he tried unsuccessfully to sell it for over $1 million a year or so ago. The sale prior to that occurred in 2002, when this San Diego home was sold for $749,000.

Today this vintage Spanish home with gleaming hardwood floors and manicured landscaping is priced at just $725,000.

Point Loma neighbors and this Realtor are a bit stunned--and still trying to adjust to this new pricing realty.

I have no doubt that this wonderful single level 3-bedroom home with almost 1600 square feet of living space will sell quickly (if it hasn't already), but it will certainly cripple neighborhood comparables for awhile.

But perhaps this abrupt grappling with San Diego real estate realities is what is needed to bring somedegree of normalcy back to our real estate market.

Is 2002 an approximate benchmark for San Diego real estate pricing?

It is a sobering thought.

Kevin Boer for NAR President?

Sat, 26 Jul 2008 14:14:26 -0500

It's about time that someone like Kevin Boer steps up to the podium (of sorts) and offers to commit his considerable energy, wit and intelligence to improving the on and offline presence and perceptions of Realtors.

Kevin at lunch yesterday (after close of Inman Connect) buckled under pressure--and agreed to run for President of the San Francisco Association of Realtors. There also appears to be a groundswell of support for his presence at a national level.

Under Kevin's presidency, we can expect to see improved literacy and photographic resiults in the real estate profession--and the welcome burial of trite adjectives like cute, gorgeous and charming.

Kevin Boer's classic speech?

The F-Word in Luxury Real Estate

Tue, 10 Jun 2008 23:22:02 -0500

Forecl-----.

It’s a word softly whispered when luxury homeowners in luxe communities like Palm Beach (33480), Beverly Hills (90210), Greenwich (06831) and Rancho Santa Fe (92067) discuss their local real estate markets.

Real estate prices have been declining in many of these markets throughout the country, and some of the heavily mortgage homes are ending up as foreclosure sales. The most prominent foreclosure victim of late is Ed McMahon, whose $5 million Beverly Hills mansion was recently lost to foreclosure.

This morning, CNNMoney reports that three of the richest US zip codes saw nasty declines in home prices for the three-month period ending April 30, when compared with the prior three months.

The three biggest losers?

Continue reading for some interesting surprises!

San Diego Real Estate

Luxury Home News

San Diego Nude Beach Threatened

Sat, 07 Jun 2008 00:17:27 -0500

I’ve never really given much thought to San Diego County’s two nude beaches: Black’s Beach in La Jolla and San Onofre State Beach at the northern tip of San Diego County. Both are pretty remote-- and it appears the nudists are a pretty peaceable lot.

At least until this morning.

It was reported in this morning’s San Diego Union Tribune that San Onofre park rangers will start enforcing a ban on nudity September, 1, 2008. It seems there have been public complaints, and some park employees objected to working in a place where not everyone is clothed–which specifically targets the Trail 6 beach area at San Onofre.

And like other beach workers who object to picking up cigarette butts, used baby diapers and assosrted foul debris, maintenance workers at San Onofre State Beach object to occasionally having to pick up sex toys, condoms and other “paraphernalia.”

Guess it’s a long trek to carry those bags of debris up a remote and steep path that goes up a 60-foot cliff.

Can’t blame either group of park employees for their complaints–and many would personally campaign for users of all San Diego beaches to never leave any debris behind.

On the other side of this issue, nudists are proclaiming that their nudity is protected under First Amendment rights as “free speech” and the Naturist Society has issued an action alert, encouraging its members to email and send letters to politicians protesting the nudity ban.

It’s tempting to take my camera and authenticate this Active Rain blog article with photos, but I’ll pass on the assignment because I’m just not dressed for the terrain.

Search San Diego Real Estate

High School Break Up with Plastic Bottles

Tue, 27 May 2008 16:41:12 -0500

Trash cans at La Costa Canyon High School in Carlsbad, CA are emptier now that students, faculty and staff are switching to reusable water bottles.

And that is all because students with LCC's Social Justice Project came up with a plan that is succeeding beyond all expectations, according to students and Christopher Greenslate, the LCC Social Justice teacher who also teaches journalism and English at the school.

Students sent out emails and made posters on recyclable paper to educate fellow students on the hazards of plastic water bottles, which are disposed of at the rate of 60 billion per year-and is the leading source of plastic pollution in the United States. They also sold recyclable bottles, which student and faculty quickly bought.

When that supply sold out, reformed plastic bottle users found other off-campus sources. It is hoped that the ubiquitous plastic water bottle will be replaced with reusable ones that won't trash our planet so needlessly.

As a result of this successful effort, La Costa Canyon High School's video about their breakup with bottled water has been selected as a finalist in Quantum Shift's $50,000 contest for best environmental project.

Please, I beg you, visit this site and cast a vote for La Costa Canyon's Social Justice program.

Perhaps their efforts will spread to other area schools, colleges and workplaces. In addition to lessening environmental impact, there will be significant cost savings. Home filtered water put in glass bottles is not only healthier, but runs just 1/10 the cost of bottled water.

All of San Diego and the neighboring communities of Carlsbad, Encinitas, Olivenhain, Cardiff, and Rancho Santa Fe should be proud of La Costa Canyon High School and their very green project.

And perhaps it is a project that could be adopted by other schools as well!

Should I Pull the Trigger?

Sun, 18 May 2008 12:06:39 -0500

A Zillow questioner asks if he or she should wait to buy a home in San Diego--or until the market levels out.

It is a question that seemed to beg an answer from me, if only because we are personally struggling with that very issue as I write this post.

We have an opportunity to buy an Oceanside property that should yield a mildly positive cash flow with a 20 percent down payment. It is new construction, close to Oceanside beaches, and the only hurdle is finding financing that is reasonably acceptable for our circumstances.

(But that is another story.)

This Zillow questioner is asking about the advisability of buying San Diego real estate as his or her home in today’s market. So much depends on location and local market conditions.

My advice?

You may want to explore home financing options available today that might not have worked just a couple of years ago--primarily because San Diego home prices have become so much more affordable.

The ACORN loan (available through Bank of America and Chase) is great for buyers earning less than $92,000 per year and who own no other real estate. The down payment is low and there is no PMI (private mortgage insurance). Loans are available up to $500,000, and buyers must attend a one-day class on home ownership prior to receiving an eligibility certificate.

FHA loans in San Diego are also making a recent strong appearance, and we are using them with a number of our buyers (even with new homes). These loans offer 3 percent down payments on mortgages up to almost $700,000. There are additional fees involved with FHA loans, but motivated sellers may be willing to assist with these costs–and may also be willing to reduce the home price to meet FHA loan maximums.

The best strategy is to find a very well-priced home (compare to area comparables)–or perhaps even a San Diego foreclosure– and secure the best available mortgage financing.