Feb. 25, 2009 - Buying Central Coast Foreclosed Properties at Auction

I attended a foreclosed home property auction hosted by Hudson & Marshall in Ventura last evening (February 24, 2009). Fortunately, my client was successful in his bid so it was worth the trip down for both of us. He was also able to save about $80,000 off the list price of the property. It was an exciting event and we were both still on a high while we waited with the other winners to sign contracts. All the winning bids are subject to investor/bank approval which will take about 5-7 days to obtain, so we will know if the deal will stick in about a week. More banks are turning to auctions to sell slow moving REOs; it is a method which allows them to quickly clear inventory off their books.

Often I am asked by clients about buying properties at auction, but usually after hearing the details about how property auctions work, they decline to participate. Indeed, you have to be a serious buyer willing to accept a certain degree of risk to buy at auction. The terms of sale usually include no contingencies for inspections or financing. What does this mean? It usually means you have no opportunity to inspect the property. However, in some cases, the properties are listed on the local MLS, and you can view them prior to the auction. And, if the listing agent allows, you could have a home inspector check the property out prior to the auction date. But, you would be paying for an inspection without knowing if you were going to be the winning bidder. (Also keep in mind that I have experienced another auction company deliberately restricting access to a property immediately prior to auction).

Buying without an inspection contingency does mean that if you were to discover a problem with the property and wanted to cancel the sale, you would have to walk away from your deposit and you could be pursued for more if the seller showed additional damage by your default (up to 3% of the purchase price if a liquidated damges provision was included in the contract, or more if no liquidated damages provision was included). Also, buying without a financing contingency means that if your financing falls through, or the property doesn't appraise, and you then cannot perform, you cannot back out of the deal without losing your deposit. This particular auction required buyers to bring a $5000 cashier's check to the auction for the deposit.

If you decide that you want to buy at auction, a real estate agent can help you properly prepare for the event. Auctions typically pay the buyer's agents commission, so you wouldn't be adding to your expense by having representation. In addition to helping you view the property prior to auction, an agent can help you through the pre-approval process, obtain an advance copy of the auction company's purchase contract and a preliminary title report on the property. If you would like a list of Central Coast properties currrently on the MLS that are up for auction, send me an email at tni@mintprop.com. You can also search for properties on my websites: www.CentralCoastRealEstateSearch.com, & www.BuyCentralCoastForeclosures.com (map based search). If you have questions about a specific property, I can be reached at (805) 878-9879.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLovetheCentralCoast.com
www.SellMyCentralCoastHome.com
www.BuyCentralCoastForeclosures.com
www.CentralCoastRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

Feb. 20, 2009 - Village of Northpoint Condos, Orcutt CA Market Update

Village of Northpoint Condos

The Village of Northpoint condominium community offers residents a tucked away feel in the heart of Orcutt. Located just off Foster Road and within walking distance of both Righetti and St. Joseph’s High Schools, this development boasts a pool, clubhouse and tennis courts. Mature trees line the blacktopped streets dotted by clusters of townhomes with blue tinted tile roofs. There are 3 and 4 bedroom plans, each with the bedrooms upstairs and the main living space and half bath downstairs. Units have a patio, and a balcony off the master suite. Monthly association dues range from about $220 - $250 per month.

Entrance to Village of Northpoint

Looking at sales in the 3 month span from November 2008 - January 2009, there have been 4 sales in Northpoint, with an average selling price just under $200,000. All of the units were bank owned. Interestingly, all these sales took place in January. The highest re-sale was a 3 bedroom unit on Shady Lane which sold for $209,000. The only 4 bedroom unit sold was on Northpoint and went for $205,900. The least expensive unit sold was on Parkview and sold for $185,000.

Clubhouse & Pool at Northpoint

If you would like information or a list of available Orcutt condos, foreclosures, or short sales send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveSantaMaria.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

Feb. 19, 2009 - Santa Maria CA & Orcutt CA New Home Buyer Alert - $10,000 California Tax Credit

Feb. 17, 2009 - Bank Owned Bidding Wars in the Santa Maria - Orcutt CA Foreclosure Market

Feb. 16, 2009 - Santa Maria CA & Orcutt CA Short Sale Buyer Information

With the majority of single family homes and condos being listed as "short sales" in the Santa Maria CA and Orcutt CA market, buyers are considering this type of listing more often. A "short sale" is a property listing where the owner owes more than the homes' current value, but still desires/needs to sell. Unfortunately, this is not an uncommon position for sellers in Santa Maria CA. Due to the wild swings in property values caused by the housing boom and bust, many homeowners find themselves in this position. While many attempt loan modification, for owners who must sell due to divorce, job loss, or job relocation, a short sale is often a better option than foreclosure or sometimes bankruptcy.

After listing as a short sale, the owner accepts offers subject to lender approval. The lender must then approve less than the loan balance as payoff and allow the transfer of ownership to the buyer. The trickiest part of the short sale is obtaining lender approval. Many times that process can take as long as 90 days. And even though you may have waited 90 days, the short sale still may still not be approved by the lender. There are many factors that could affect whether the bank accepts the short sale. And buyers should keep in mind that in this market, even the short sales are garnering multiple offers. Typically, the best time to step into a short sale is when it first hits the market, or right after another buyer walks away. Often, a short sale can look a lot like musical chairs with buyers getting tired of waiting and new buyers slipping into their seat.

Due to the stressful situations that many short sale sellers find themselves in, many buyers will discover that although the properties are listed as active or contingent, the seller is not motivated to show the property. This can happen because the process can take a long time, and sellers simply get worn out from all the showings; it can also happen because the seller has already presented an offer to their bank and has no motivation to keep presenting the property until the other buyer loses interest. Or, they may simply not be happy about essentially losing their home and are merely using the short sale process to forestall a foreclosure. Whatever the reason, buyers should be prepared for the fact that many short sellers are not overly enthusiastic about showing their homes, especially after it has been on the market for a long time.

Buyers should analyze likelihood of success before getting caught up in a short sale. They should get a preliminary title report on the property to determine if there are any additional liens on the property besides the mortgage loans, as this may complicate matters. They should be aware that if there is more than one loan on the property with different lenders, the short sale may also be difficult to accomplish. An experienced short sale agent can help guide you through this process.

If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveSantaMaria.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

Feb. 13, 2009 - Santa Maria CA Foreclosure Buyer Alert - $8000 First Time Home Buyer Credit Approved

If you are sitting on the fence about buying, Congress just gave you another reason to jump into the market for foreclosures in Santa Maria, CA. According to James Liptak, President of the California Association of Realtors, the recently passed stimulus bill modestly increases the first time home buyer credit from $7500 to $8000. But more importantly, buyers now do not have to pay the credit back as long as they stay in the home a minimum of 3 years. The bill also extended the time period for this credit through the end of the year. This is fantastic news for first time home buyers in the Santa Maria CA market, where they can benefit from significant price recessions in a foreclosure driven market, interest rates at historical lows, and now a substantial tax credit available through the end of 2009.

Buyers should take note that even though prices are declining and and it is a buyer's market; it is still incredibly competitive to buy Santa Maria CA foreclosures. Lots of people think it is a great time to buy. There are only 440 available homes and condos on the market in Santa Maria - Orcutt CA and only 85 are REOs (about 20%), while there are 239 properties in escrow and 166 of them are bank owned properties (about 66%). So, the bank owned foreclosures (REOs) are the hot item right now; they also tend to offer the best prices and garner multiple bids from buyers.

I would advise first time buyers to begin looking long before the Fall season if they want to be sure that they close escrow before the end of the year. Often it can take 2-3 months for a suitable bank owned property to become available, and since most first time buyer's use FHA or VA financing, it can then take 45-60 days to close escrow given the requirements of these loan programs coupled with the bureaucracy of dealing with a bank seller. So, buyer's should make sure they have enough lead time to meet the deadline.

If you would like a list of foreclosure properties in Santa Maria CA or Orcutt CA, please send me an email request at tni@mintprop.com, or call me directly at (805) 878-9879. You can also search for properties on my websites: www.iLoveOrcutt.com, www.iLoveSantaMaria.com, www.BuySantaMariaForeclosures.com (map based search), www.SantaMariaRealEstateSearch.com.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveOrcutt.com
www.iLoveSantaMaria.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market

Feb. 11, 2009 - River Oaks Market Update & Santa Maria CA MLS Home Listing Search

 

River Oaks

River Oaks is a newer subdivision of homes located in northeast Santa Maria. Building began around 2001 and there are at least 5 different floor plans. The subdivision is home to Taylor Elementary School which lies at the center of the development, a man made lake, and direct access to riverbed adjacent biking and walking trails. There are two one story plans, both are smaller 3/2 homes at about 1400 sq.ft. and 1600 sq.ft.; the two story plans begin at about 1900 sq.ft. and go up to at least 2700 sq. ft., depending on the options the original owner selected. Some of the 2 story models have 3 car garages, one plan has a downstairs master bedroom, and at least one of the other plans has a downstairs guest bedroom option. Looking back at the 3 month period from November 2008 - January 2009, 17 homes sold in the River Oaks subdivision, with an average selling price of about $284,000, and an average list price of about $294,000.

 

 

Walking Trails at Riverbed

Sold listings were on the market an average of 77 days, were about 1900 sq.ft., and sold for about $155 per square foot. 12 of the 17 sold homes were REOs, 3 were closed short sales, and only two were regular sales. 88% of the sold activity in this neghborhood was forelcosure related; so, like many other developments that were built during the housing boom River Oaks is now overloaded with foreclosures during the housing bust. The smaller one story models sold for between $250,000 - $268,900; the larger two story models sold for between $284,000 - $338,000. Currently in River Oaks, there are 14 homes that are active, contingent or pending. 5 active listings, 1 contingent listing, and 8 pending listings. 7 are REOs (bank owned) and 7 are short sales — so all the current listings are either foreclosures or pre-foreclosures. Current listings have been on the market an average of 116 days, and have an average asking price of $293,000.

 

 

Lake at River Oaks

If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: iLoveSantaMaria.com, SantaMariaRealEstateSearch.com, & BuySantaMariaForeclosures.com (map based search), If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at SellMySantaMariaHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

 

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveSantaMaria.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market

Feb. 9, 2009 - Mission Creek Village Condos vs. Oak Creek Villas (Santa Maria CA & Orcutt CA Condos)

 

Oak Creek Villas

The Mission Creek Condos and Oak Creek Villas were built by local builder, Inland Pacific, who is also currently finishing up Pacific Crest in Westgate Ranch. Oak Creek and Mission Creek offer the same basic floor plans and amenities; however, there are subtle differences for buyers to consider. Oak Creek Villas condos are slightly older; they were built beginning around 2001. Mission Creek condos are slightly newer as building began around 2004. Both offer two floor plans: a 2 bedroom/2 bath unit and 3 bedroom/2 bath plan, each with room for a stackable washer dryer. The square footage of the 2 bedroom and 3 bedroom units are essentially the same, somewhere between 1100 - 1200. However, the 2 bedroom unit has a larger living space than the 3 bedroom plan. Downstairs units have patios, and upstairs units have balconies, each with an extra outside storage closet. Both condo developments offer a pool, and a community clubhouse. Oak Creek also features a tot lot.

 

 

Walkway at Oak Creek Villas

Mission Creek Village and Oak Creek Cillas are located on the south end of Santa Maria. However, for those who want to get out and walk to restaurants and shops, the Oak Creek condos, which sit on McCoy (directly across from Arborwalk), may be preferable. Another important distinction is that the Mission Creek condos previously sat on the dividing line of the Orcutt school district. (Buyers are advised to consult with the local school district offices to determine current boundary lines for school district attendance.) There is also a slight difference in the monthly dues of each development. Oak Creek charges about $180 per month, and Mission Creek’s monthly dues are about $150. Asking prices currently range between $169,900 and $199,900 in these communities. Recent sales include a 3/2 unit in Oak Creek which sold for $168,000, and a 2/2 unit in Mission Creek which sold for $175,000.

 

 

Tot Lot at Oak Creek Villas

If you would like information or a list of available condos in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.SantaMariaRealEstateSearch.com, www.iLoveOrcutt.com, & www.BuySantaMariaForeclosures.com (map based search), If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at www.SellMySantaMariaHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

 

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveOrcutt.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

Feb. 8, 2009 - Arroyo Grande CA 2008 Market Update & Free MLS Listing Search

In 2008, a total of 276 homes and condos sold in Arroyo Grande, CA. 243 were single family homes, and 33 were condos or in planned unit developments. Average home price was approximately $648,000, $331 per sq ft., and sold after 130 days on market. 54 of the sales were bank owned properties (REOs), and 10 were closed short sales. So, a significant amount of sold listings (a little over 20%) were foreclosure related.

The lowest resale home price was a 2 bedroom, 2 bath, bank owned twin home in an age restricted community that was 1064 sq. ft. and sold for $190,000. $650,000 would have purchased a new 3 bedroom, 4 bath, 2330 sq. ft. lakeside home with granite countertops and a golf cart bay in the gated golf course community of Cypress Ridge.

The average price for condos and PUDs was about $320,000, $276 per square foot, with 91 days on market. The lowest priced resale was a 1 bedroom, 1 bath, REO (bank owned property) condo unit on Brisco which stayed on the market for 222 days and finally sold for $154,500. $330,000 would have purchase a 3 bedroom 2.5 bath townhome with 1589 sq.ft. and an attached 2 car garage; that listing sold after 56 days on market.

If you would like a list of golf course, REO (bank owned), condo, or short sale properties in the Arroyo Grande area, send an email request to me at tni@mintprop.com. Or search the MLS on my websites: www.iLoveFiveCities.com (map based search), or www.CentralCoastRealEstateSearch.com. If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at www.SellMyArroyoGrandeHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Tni LeBlanc, JD, M.A., e-PRO
Mint Properties, Broker/Owner
(805) 878-9879, tni@MintProp.com
www.iLoveGroverBeach.com
www.SellMyGroverBeachHome.com
www.CentralCoastRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

Feb. 4, 2009 - Lompoc CA & Vandenberg Village CA 2008 Market Update & MLS Listing Search

There were a total of 400 homes sold in the Lompoc and Vandenberg Village areas in 2008. 346were detached dwellings, and 54 were attached residences. Of the 400 sold, 226 were REOs (bank owned) and 31 were short sales. So, a total of 257 out of 400, or 64% were foreclosure related sales. Thus, the Lompoc market is thoroughly dominated by foreclosure activity; it is the primary force moving the market.

On average homes sold for $278,000 with 78 days on market. Average price for REOs was about $234,000 with 48 days on market. Closed short sale average was about $286,000 with 112 days on market. So, short sales stay on the market over twice the amount of time as REOs, and this reflects the additional time needed to obtain lender consent to the sale.

Currently, there are 128 active listing with an average asking price of about $315,000 and 152 days on market, 64 of those listings are short sales, and 23 are REOs. In Vandenberg Village, there are 28 active listings with an average asking price of approximately $396,000.

If you would like a list of forelcosure properties in the Lompoc or Vandenberg Village area, just send me an email at tni@MintProp.com, or search the MLS on my sites: www.iLoveLompoc.com, www.VAFBRealEstateSearch.com, or a map based search at www.BuyCentralCoastForeclosures.com. If you are ready to jump into the market, give me a buzz at (805) 878-9879 and I’ll set up a personalized tour of Lompoc CA and Vandenberg Village CA properties. Those interested in selling can send me a request at www.SellMyLompocHome.com.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveLompoc.com
www.SellMyLompocHome.com
www.VAFBRealEstateSearch.com
www.BuyCentralCoastForeclosures.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

Feb. 1, 2009 - Buying Bank Owned Homes (REOs) in the Santa Maria CA & Orcutt CA Market - Should I Use FHA/VA or Conventional Financing?

Currently, the market for bank owned properties in Santa Maria CA and Orcutt CA is very competitive. In the last couple of weeks, I placed offers for well priced listings where there were at least 10 other offers. REO listings fly off the market with multiple bidders in just a few days when they are offered in good condition and at the right price. You will tend to see the most intense competition where the bank-seller chooses to fix up properties before they list them. Not many are doing this - but it is happening more and more. "Fixing up" can be as simple as recarpeting and repainting a home. And even though these finishing touches don't cost much they can set a cash strapped buyer's heart on fire as most foreclosure listings need paint and carpet at a minimum. Good asset managers know this, so they do cosmetic repairs to the property, price it at the low end and then sit back and cherry pick the best offer.

When the bidding gets competitive, buyers are often left to wonder how asset managers make their decisions about which offer to choose. If you have 15 offers how do you select one over the other? The obvious selection would be based on the net to the seller, but there are other factors. In particular, time and time again, I see FHA buyers passed over for buyers using conventional financing. That is not to say that FHA financing is not being used in this market- it is. However, when the situation turns competitive FHA and VA buyers have difficulty edging out conventional buyers even when they offer more money for the property.

Some asset managers view an offer with more down payment as more substantial, and most FHA buyers are putting down only the minimum of 3.5% down and VA buyers are usually putting nothing down. Another reason why FHA (or VA) offers are sometimes disfavored is because the FHA or VA appraiser may indicate repairs to meet their standards; those repairs must be made in order for the transaction to close. Bank-sellers usually want to sell foreclosed properties with as little expense as possible, so many asset managers do not want to take the risk that the buyer will demand that the seller make repairs to the property in order to close. Of course, FHA buyers could pay for these repairs, but most are first time buyers who have just scraped together enough for their down payment and some closing costs.

Unfortunately for buyers, conventional financing is more difficult to obtain in this market. Some lenders require 10% down for conventional financing, but at a minimum the lowest figure I've heard lately is 5% for a home (not a condo). Also, if you are putting less than 20% down on a conventional loan, the requirement for your credit score could be as a high as 720. This leaves FHA as the only option for many buyers, even if they have more money to put down than the 3.5% FHA minimum requirement.

If you have any questions about how to succeed in buying bank owned properties with FHA or VA financing in this market, please feel free to give me a call at (805) 878-9879, as I have a great deal of experience helping FHA/VA buyers into homes in this foreclosure driven market. Also, if you would like a list of foreclosed properties in the Santa Maria or Orcutt areas, send an email request to tni@MintProp.com, or search for properties on my websites: www.iLoveSantaMaria.com, www.iLoveOrcutt.com, www.BuySantaMariaForeclosures.com, www.SantaMariaRealEstateSearch.com.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveOrcutt.com
www.iLoveSantaMaria.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.