Oct. 7, 2008 - Buying Bank Owned Properties (REOs) in the Santa Maria/Orcutt and Lompoc/Vandenberg Village Foreclosure Market

The Santa Maria and Lompoc real estate markets are currently dominated by foreclosure listings. Of the 663 active listings for homes/condos in the Santa Maria - Orcutt area, approximately 25% (165) are bank owned properties (REOs), and about 50% (339) were short sales. Similarly in the Lompoc - Vandenberg Village active market for homes and condos, there are 198 total listings, and 20% (39) were REOs and 40% (81) were short sales. This means that 75% of the active market in Santa Maria and 60% of the active market in Lompoc and its surrounding areas could be classified as either a foreclosure or a pre-foreclosure. Certain trends or practices are becoming fairly routine in this market (and in many cases contributing to buyer fatigue):

1) Properties listed as "active" that are not actually available. The local boards have taken the position that unless a written contract signed by both the parties is in the broker's hands, the property should still be listed as active. Because of the bureaucracy of dealing with a bank, it can take weeks to receive signed documents back. During that time the property is still being marketed as active, but in fact they have a verbal acceptance on the property. I disagree with the decision to leave these properties active; but that does not change the practice. This is very frustrating for buyers as they research active properties that are not truly available.

2) Underpriced listings. Yes, properties are actually being listed too low by some banks to attract an intense amount of interest. Two recent examples come to mind, in both instances the bank priced a property almost $100,000 below its current market value and as a result received over 25 offers. This is becoming fairly common tactic, although to a lesser degree than the example given, and many times results in REOs being bid up slightly past the reasonable market value. It is a smart tactic for banks, but it creates a frenzied atmosphere for buyers.

3) The "Highest & Best" counter offer. Instead of countering to buyers individually, (which many times would be impractical with so many offers), banks will simply issue a request for a buyer's "highest & best" offer. This puts the buyer in the position of bidding in the dark against their own first bid. For all they know, they are the highest bidder, and are simply increasing their bid even more. This has also contributed to a stressful environment for buyers. Sometimes, the "winners" of these highest & best contests walk away from their winning bid simply because they don't feel like a winner after they've won!

4) Sitting on an offer until multiple offers are received. When the techniques above don't work, sometimes banks will try to create a competitive situation by sitting on an offer until they receive multiple offers, and then issue a "highest & best" call. I've witnessed situations where there was one buyer and that buyer could not receive a response to their offer for 2 weeks until another offer came in, and the bank then requested both buyers to sign multiple counter offer paperwork. The buyer was understandably furious. Some banks are upfront about the practice and disclose in their listing information that they will not look at any offers the first week their listing is active.

Overall, these effective tactics work for bank sellers but burn out buyers very quickly. Many buyers simply drop out of the foreclosure market. It is a difficult market to buy, but not an impossible one. I have tips and strategies to help you navigate the current market for foreclosures in the Santa Maria and Lompoc areas. Please feel free to give me a call at 805-878-9879; I would be happy to answer any questions you may have about the local real estate market.

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

www.MintProp.com
www.YourMonthlyMint.com
www.SantaMariaRealEstateBlog.com
www.VAFBRealEstateSearch.com
www.CentralCoastRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS & Lompoc Valley 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

Sep. 12, 2008 - How to Buy HUD Home and Condo Foreclosures on the Central Coast

San Luis Obispo and Santa Barbara Counties have seen a dramatic increase in foreclosure and pre-foreclosure listings. Bank owned and short sale listings currently dominate and/or drive many of the local markets here on the central coast, and along with that we are beginning to see more HUD homes for sale. HUD homes (or condos) are properties that have gone through foreclosure and been taken back by the federal agency "HUD" (U.S. Department of Housing and Urban Development) which insured the original defaulted mortgage.

HUD properties are not marketed through traditional channels and are not placed on our local Multiple Listing Service. You have to search for them on their agent's website. Only real estate brokers who have been qualified by HUD to sell their properties can show you a HUD home. Bids are placed electronically, and the status of those bids can also be checked online. I am a HUD selling agent, and I can show you any listed local HUD home or condo.

Buying a HUD home offers particular advantages. They are usually priced to offer significant discounts to the buyer, and the earnest money deposit required is nominal, with the minimum being between $500 - $2000. HUD homes are also set up to work hand in hand with the FHA loan program which is designed to get first time home buyers (who are usually cash strapped) into homes. In some cases, HUD gives advantage to bidders who intend to occupy a residence over an investment buyer. Owner occupants must certify that they haven't purchased another HUD owned property in past 24 months as an owner occupant, and that they will occupy the residence for at least the next 12 months.

HUD also orders a thorough inspection of the property before it is listed. The results of that inspection are publicly available for review online even before you place a bid on the property. Many times, HUD will wait 10 days before taking any bids. This allows sufficient time for buyers to personally inspect the property, get their pre-qualification in order, get the certified check they will need for earnest money deposit, and complete the HUD sales contract. This 10 period can be very helpful, such as in in the hustle and bustle of the current Santa Maria market, where many times choice foreclosed properties are snapped up the same day they hit the market by investors who sit ready and waiting to pay cash. In certain instances, when bidding for a HUD property, owner occupants are allowed to bid before investors even get a chance to place bids. So, there are opportunities for first time buyers with HUD homes that you will not find in the larger foreclosure market.

Overall, I believe HUD properties offer an excellent avenue for first time home buyers to get into the local housing market. If you have any additional questions about buying a HUD home here on the central coast, or have a property you would like to view in person, please feel free to give me a call at (805) 878-9879

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

Sep. 7, 2008 - Rice Ranch Master Planned Community in Orcutt California

On Labor Day, I visited the models at Rice Ranch in nearby Orcutt, California. Rice Ranch is a master planned community which will have new single family homes, high end condominiums, and a 26 acre sports complex and community park. The Orcutt California community will have over 300 acres of preserved open space. After viewing the master planned community, "Summerlin," in Las Vegas over the Labor Day weekend, I was sold on the concept of a master planned community and curious to see how Rice Ranch was turning out. I also read the recent article in the Santa Maria Sun regarding how sales were going well. Unfortunately, many new home developers are filing bankruptcy, and leaving those who have already purchased homes questioning when or how their developments will be completed, so it was encouraging to hear that Rice Ranch was prepared to deal with the market in its current form. This project was a long time in the making (15 years), and they are prepared for sales to last through the current market downturn. Price information on the high end condominiums was not on display -- and it appears that they are not yet selling those units. However, the Sun article indicated that they would be priced around $300,000.

I viewed the single family home models. One stories lined up on one side, two stories on the other. The first one story I viewed stood out as my favorite. Most of the models featured the dark hardwood flooring that buyers tend to prefer. The prices began at $485,000 for the 1777 sq. ft. model and topped out at $665,000 for the 2878 square foot model. Inevitably, most home buyers want to compare these prices to what you can get on the resale market. However, I would note that there isn't anything on the local existing home market which offers what Rice Ranch promises to be; a 500+ acre master planned community. That said, you can definitely get a lot of bang for your buck on the "newer" home market. For example, check out my listing built in 2007 in La Ventana, a premier development in north east Santa Maria which features single family homes with generous floorplans, high end townhomes, and a gorgeous community clubhouse and pool. www.203Orie.com, www.203OrieCt.com, www.203OrieCourt.com. 203 Orie Court was the most popular plan and offers 2500 sq. ft. on one story with 3 bedrooms, 3 baths and a 3 car garage.

Importantly, Rice Ranch does allow you to bring a buyer's agent as your representative. That agent will be paid by the builder as long as they accompany you on your first visit to the sales office. Since the builder will pay for you to have representation, I would highly recommend that you employ a buyer's agent when viewing the models. It is important to have an experienced professional working on your side when buying a home, you don't simply want to rely on the sales staff who work exclusively for the builder. When buying a new home, I typically provide the following services for my clients; I attend contract signing and the walk through inspection, provide comparative price per square footage information for other new home developments, provide comparative information on the newer home resale market, provide comparative incentive information with other local new home builders, and provide advice on options that will have the most impact on future resale. It makes sense to have representation. If you had a friend who viewed, bought and sold hundreds of homes, wouldn't you ask their advice when buying a home? Having an experienced buyer's agent is the same thing. I've looked at more homes than you would ever care to view, and I would be happy to take you on a tour of local new home developments.

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

Aug. 17, 2008 - Santa Maria California Luxury Home & Executive Home Market

When looking at the Santa Maria California and Orcutt California market overall, currently there are approximately 700 homes on the market, and approximately 60% of single family homes and condos are either short sales (sometimes referred to as pre-foreclosures) or bank-owned properties (REOs).  And, in the past 30 days, approximately 130 single family homes have closed escrow, and about 60% of those were REOs, and around 15% were short sales.

Contrast that with the luxury and executive home market where there are only about 50 homes priced above $500,000 or more in the Santa Maria California and Orcutt California market, and only 20% of them are short sales or REOs.  The executive and luxury home market consists mostly of homes in the Orcutt area and includes developments such as Elkhorn Estates, Deerfield Estates, Oakhill Country Estates, Lake Marie, and Foxenwood Estates.  But there are also executive homes in Santa Maria proper in the Country Club area and in Hancock Park which is close to Marian Hospital.

Currently, of those homes, only one is priced over 2 million.  The average square footage is around 3000 square feet and the average price hovers around $700,000.  Although this segment of the market has not been as decimated by the housing crisis as the first time home buyer market in Santa Maria, there have been significant price decreases and your money will certainly buy a lot more than 3 years ago.  The key is weeding through the listings and finding the perfect combination of the right seller and the right home.  I can help you with this process.

If you are interested in receiving a list of executive, luxury, and golf course homes in the Santa Maria, California, and Orcutt, California area, please send an email to me at tni@mintprop.com, or give me a call at (805) 878-9879.  Local association rules prevent posting this information, but I will be happy to provide it to you upon request.

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

www.MintProp.com
www.YourMonthlyMint.com
www.VAFBRealEstateSearch.com
www.SantaMariaRealEstateBlog.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

Jul. 6, 2008 - Selling Your Home as a Short Sale in the Santa Maria CA & Orcutt CA Market

Short sales dominate the Santa Maria and Orcutt CA market. Simply put, short sales are sales where the owner owes more than the house is currently worth. Currently, 50% of the active listings in Santa Maria and Orcutt are short sales. However, 60% of the homes sold in the past 30 days are bank owned homes (REOs), and only 10% of sold homes in the last month were short sales.*

Many homeowners ask -- why the disparity? Or, is a short sale a real possibility for me? Now certainly, those figures have something to do with the inherent difficulty of a short sale. Short sales are a marathon, not a sprint. And one of the most important decisions you will make as a homeowner short selling in this environment is the agent you employ. However, I continue to believe that selling your house as a short sale is an option that homeowners in distress should explore. Short sales can help owners avoid foreclosure and in some cases bankruptcy.

Homeowners who purchased or refinanced at the height of the market (end of 2005 / beginning of 2006) often owe much more than their home is currently worth. For example, homes purchased in the Santa Maria or Orcutt CA area during the peak for $500k are often only worth $300k in today's market. Due to job transfer, divorce, or economic factors outside of their control, many homeowners must sell their home now even though it is not the most opportune time. Short sales can work. There are several tactics that will help the odds of a successful outcome for your short sale:

1) Do the background work before you list your home. I recommend to all my short sale sellers that they employ an attorney before beginning the short sale process. You need advice as to whether a short sale is your best option, review of your initial loan documents, assistance compiling your short sale package, and someone to handle negotiations with your bank. Most people believe they cannot afford to hire an attorney. However, there are some attorneys who now specialize in handling shorts sales and work on a transactional basis instead of a per hour basis. I can also provide you with an attorney referral.

2) Obtaining an "approved price" from your lender. By beginning the dialogue with your lender early, you increase the odds of obtaining an approved price for your listing. The market is currently flooded with short sales and those with an "approved selling price" stand out from the crowd. Buyers and buyers agents are encouraged by this as it means that the lender has agreed to accept an offer at that price and the transaction will likely close in a reasonable amount of time. Buyers are beginning to understand what short sales are, either through their own experience or through the experience of their friends and colleagues who have sat through a short sale. As a result, you have to be able to articulate a reason why short sale will work where others will not. So, the key to marketing your short sales lies in both properly displaying the features of your home and telling buyers why your home is worth waiting for. I can help you market your short sale in order to obtain the purchase offer you need.

3) Price your home correctly. I cannot emphasize this enough. If an approved price cannot be obtained from the lender you must consult with your agent to list your home for a reasonable price. I've seen one too many short sales where the listing agent overpriced or underpriced the listing. Many times an owner listing their home as a short sale bases their listing price on what they owe on the home rather than what the market is saying. If you overprice your short sale in this market, you will get no showings much less any offers. At the other end of the spectrum, is the under priced short sale listing -- priced at a "fire sale" price. This is not an advantage to the short sale homeowner because many times they will fail to obtain a reasonable offer and instead only attract low ball offers. The selling price still has to be accepted by the bank and they are not likely to accept an offer that is obviously below current market value. I can help you price your home correctly in this market at a level that will both obtain offers and be considered reasonable by the bank.

4) Pick the right agent. This is obvious but often overlooked in this market. Homeowners who would have thought long and hard about who to choose as their listing agent during the boom are simply throwing their homes at "short sale mills" and feeling thankful that any agent will take their short sale listing. There is a great deal of shame and avoidance that anyone in financial distress goes through. However, this can be disastrous for a short sale seller. In my efforts working on behalf of buyers, I routinely see short sale listings that have not been properly marketed, costly short cuts taken, and I have submitted offers on short sales where the agent never even bothers to respond. Often this occurs because agents have taken on more short sale listings than they can service in an attempt to increase their odds of closing a deal. My goal in selling your short sale is to give you the best possible shot at getting an approved short sale. I put the same amount of time and effort into my short sale listings (if not more) as I do regular listings. Sellers in distress deserve the best possible chance to avoid foreclosure and/or bankruptcy. Please contact me today at (805) 878-9879 for a short sale consultation. Let me give you expert advice on selling your house as a short sale in today's Santa Maria and Orcutt CA market.

Sincerely,

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

www.MintProp.com
www.YourMonthlyMint.com
www.VAFBRealEstateSearch.com
www.SantaMariaRealEstateBlog.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.

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Mar. 15, 2008 - Vandenberg Air Force Base Buyers VA 100% Financing Home Buying Tips

Now that home prices have declined significantly on the Central Coast, we are beginning to see the return of VA financing. VA financing limits the purchase price of a home to $417,000, which was the previous FHA limit as well. So, with the decline in home prices, VA financing has become a viable option again, and many potential VA buyers, real estate brokers, and mortgage lenders have begun re-educating themselves on VA financing requirements.

This is especially important to the Central Coast as we are home to Vandenberg Air Force Base, which is home to the 30th Space Wing, which manages missile and space testing for the Department of Defense. So, we have a great deal of active duty and retired military in the local area who are eligible for a certificate for the VA home loan guaranty program. This post offers a few tips for those buyers. Also you can start your home search on my website, where you can search for Central Coast homes, and also for homes immediately adjacent to Vandenberg Air Force Base.

Importantly, the loan limits for VA financing were not raised with the recent legislation which raised FHA limits to $729,500 in high cost areas, so VA buyers are still limited to a maximum of $417,000. I have mixed feelings about the FHA limit being raised especially since the median home price in California has now almost slipped below the previous $417,000 limit, but I'll address that in another post. Currently, the California Association of Realtors indicates that as of January 2008, the median home price in California is approximately $430,000. So, VA financing is again a viable alternative for many, and especially for first time buyers who are spending a lot less than that amount for their first home.

First things first, military personnel who wish to use VA to finance a home purchase must obtain a certificate of eligibility through the Department of Veteran's Affairs. usually, an experienced lender can obtain a certificate almost instantly by using an automated system VA set up just for that purpose. In some cases, you may need to submit a form and wait for a certificate to be mailed to you in order to establish your entitlement to this benefit.

The next step is qualifying your income and credit. Again, this is where your lender comes in. From my discussions with lenders, I've learned the most important aspect of qualification for VA loans beyond income is not the credit score of the applicant, but their most recent credit history. Namely, whether they have made timely payments in the past 12 months. Nothing sinks a VA buyer quicker than recent late payments made on their accounts. If there is more than one late payment in the past 12 months, you may still be able to get the application manually underwritten; however, the more "lates" you have on your credit, the less likely the possibility of squeaking through becomes. So, if you want to buy with VA financing concentrate on keeping current with your payment obligations. I've experienced VA approving buyers with credit scores in 500's, and I've also experienced other buyers being rejected for late payments. So it seems that your overall credit history (or lack of credit history) will affect you less than being late on your car payment for the last 2-3 months.

Also be aware that when you make an offer with VA financing, it may not be as strong as an offer from a buyer using conventional financing. Part of this is dependent upon whether you ask the seller to pay closing costs and/or make other concessions. Closing costs with VA loans tend to be a bit higher than for conventional loans. If you don't have closing costs saved, you can request that the seller pay them, but of course that will impact the strength of your offer. You can also stack them on top of the purchase price in your offer, and that way the seller gets their full price and you don't have to pay the costs out of pocket. This also assumes that the home will appraise at the higher value; sellers who are asking a price close to a reasonable estimate of their appraised value will take this into consideration as well. Lenders I've spoken with estimate about 4% of the purchase price for closing costs on a VA loan. Conventional lenders will typically only allow buyers to request closing cost help from the seller of up to 3% of the purchase price (because they fear fraud if a lot of money is being given back to the buyer), but VA will allow up to 6% of the purchase price to be paid by the seller as closing costs and/or other concessions to the buyer.

The other major hurdle with VA offers is typically the timeline. Most lenders will tell you that it is difficult to close a VA loan in under 45 days. This is primarily due to the VA appraisal process. VA uses their own appraisers and there are fewer appraisers that are qualified to do VA appraisal work. As a result, their workloads are heavy and they cover larger geographic areas than other appraisers. For example, in my experience with non-VA appraisers, I can usually get an appraisal completed within one week. On a VA transaction, it may one week just to get an appointment for the appraisal! Also, the appraisal may indicate that additional work must be completed which can throw a wrench in the works late in a transaction. And, of course, this can be very tricky when you're buying a bank owned property and you have a seller who will make NO REPAIRS. Therefore, at the outset if the buyer has no additional funds, you should make sure to ask for seller concessions that will cover closing costs, active infestation termite work (this will be a guess unless a termite report is on file), and any other repairs VA might require (another guess until appraisal is done and estimates for the work have been completed). But again, asking for more money back from the seller, or stacking the costs on top of the purchase price can also impact how attractive your offer is. So, there are a lot of variables, and experienced listing agents know that and as a result many are wary of buyers using VA financing.

All of the above is based on my experience as well as informal and anecdotal interchanges with loan officers. You should do your own research on these issues, as none of it is meant to be a guaranty of what it will take for you to qualify for a loan or successfully complete a transaction. It is offered merely to give potential VA buyers an indication of the possible pitfalls involved with using the VA home loan guaranty program.

If you are transferring to the area, retiring from service, or have too many dogs to live on Base, I would love to help you find a home using your VA eligibility certificate. These transactions can be challenging, but I'm up to the challenge. Please feel free to give me a call today, I make it a point to be available to my clients by cell (805) 878-9879, so please give me a call today so we can begin the process of finding the perfect home for you.

Sincerely,

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

www.MintProp.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateBlog.com
www.CentralCoastRealEstateSearch.com
www.VAFBRealEstateSearch.com

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Mar. 9, 2008 - The Short Sale Housing Market in Santa Maria California

A little while back I promised to write an entry on buying short sales. I have many clients who have the notion that they want to buy their next or first home this way, and these days my first conversation with potential buyers always includes a discussion of these types of sales. Last time I took a peek, there were approximate 800 single family home listings in the Santa Maria area, and about 40% of them were short sales or at least potential short sales. So, the current market for homes in Santa Maria and Orcutt is inundated with these listings.

First things first. What is a short sale? A short sale listing is one in which the owner owes more on their loan than their house is currently worth. And, due to any number of factors, they are trying to sell their home. Many of the current short sales are caused by a home owner's interest rate adjustment making payments unaffordable. Other homeowners could make their payments but they must sell because they have to move (due to job transfer, etc.) and they cannot currently sell their home for what they owe. Even others are simply walking away because they do not wish to make payments on homes that are not worth what they paid for them. When it is apparent at the outset that a home will not sell for what the homeowner owes it is listed as a "short sale."

Typically, when I'm showing potential buyers homes in Santa Maria and Orcutt they fall in love with a short sale. Many of the short sale listings in Santa Maria show very nicely, especially when you compare them to similarly priced foreclosed and bank owned properties. In a short sale situation, you have a motivated seller in the home and they present the home very well, as compared to a bank foreclosure where appliances may be missing, carpet is stained or torn out, projects unfinished, or even apparent deliberate damage inflicted by a homeowner who was unhappy about losing their home. So a short sale can be a great bargain because they may require less repair for the same price as a foreclosure. But as with most things, the details make the difference.

How is buying a short sale different from buying another home? A short sale contract, if accepted by the seller, will be conditioned upon the seller receiving approval from the bank. That is the tricky part. Obtaining bank approval can take 3-4 months. And, at the end of that 3-4 months the answer can be "no," and the bank can just proceed to foreclose on the property (where a Notice of Default has already been filed), or they can request more money from the potential buyer (even though the seller has agreed to a lower price), or the bank can throw a wrench in the works by demanding more money from the seller's other resources or assets in order to make up the difference between the loan balance and the offer.

Once an offer is accepted by the seller, and presented to the bank for approval, the bank will conduct its own appraisal and solicit broker price opinions from other local brokers to make sure that the offer is in line with the market. But even if they agree that the offer is fair, the bank will still try to get the seller to assume a note (debt) for the difference between the offer and what that seller owes on the property. Ultimately, the seller and the bank may not be able to agree to terms, and bank approval will not be obtained. And while all of this is being negotiated, the buyer must simply just wait, often hearing nothing in response for weeks at a time.

It is very difficult to wait through this process because of the obvious uncertainty involved. I usually advise Santa Maria buyers to write on short sales when this is the ONLY house they want and they want NO OTHER. Because it takes that type desire to make it through the process. Santa Maria short sales may also make sense if you are buying a home for investment, and you are not waiting through this process to move into the home. Most buyers simply can't deal with the uncertainty, they want to know when they can schedule movers, when they can lock their interest rate, and most of all, they want to know if they have a deal or not. Waiting 4 months and getting a "no" for an answer is exhausting to most, and during that time most buyers usually find another home that they would like to pursue.

There is some advantage to trying to pursue short sales as the Santa Maria real estate market currently has a shortage of inventory, in my opinion. Believe it or not, I have plenty of buyers who can't find anything they want to buy! This is because they've ruled out short sales and overpriced listings, and bank owned properties that are priced correctly are receiving multiple bids. Sometimes, by focusing on a short sale they are able to get a home in good condition that they like without having to compete with so many other buyers.

The current market for short sales in Santa Maria and the surrounding areas is complex. I would be happy to discuss the best approach to finding the right home for you here on the Central Coast. Please feel free to give me a call at (805) 878-9879, I make a point to be directly available to my clients. Also, feel free to search for properties on my website.

Sincerely,

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

www.CentralCoastRealEstateSearch.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateBlog.com

Feb. 17, 2008 - Buying Foreclosures in Santa Maria, California

The number one question I'm asked by new clients is "Tni, how can I buy a foreclosure?" The Santa Maria and Orcutt market is full of foreclosed properties right now making it an excellent time to buy. I specialize in helping people buy these types of properties. I am a certified HUD buyer's agent, and I am the exclusive agent for RealtyTrac in Santa Maria, Nipomo & Oceano.

There are, however, several misconceptions about buying foreclosures. Many people want to buy homes on the court house steps at auction believing they will be able to purchase a home for pennies on the dollar. Indeed, there are people that buy homes for pennies on the dollar, but those type of "professional buyers" often buy homes sight unseen, in bulk, and pay all cash or do not use conventional financing, i.e., they use cash from private investors. In my experience, the biggest discounts are reserved for those who are taking the most risk.

Most people simply cannot or do not want to buy a home this way. For most, buying a home is the single largest investment of their lifetime, and they cannot afford to take that much risk with it. Accordingly, home buyers want an opportunity to inspect a home. They do not want to buy it without looking at the the interior floorplan, having a home inspection, termite inspection, and the like. Further, most first time home buyers have little cash up front and must use conventional financing which takes a little more time to put into place. I've found that the best way for home buyers to take advantage of the recent price drops in Santa Maria and Orcutt is to buy a bank owned home using a buyer's agent. These homes are significantly discounted, and their prices are the current force driving home prices downward in Santa Maria and Orcutt.

Another misconception is that because it is a buyer's market (and it is) that you have your pick of any home in Santa Maria and Orcutt. It is true that there is a lot of inventory on the market right now. But most of it I would classify as difficult to buy. It is difficult because if it is not owned by a bank, you are many times dealing with a home seller in denial or distress. Many home sellers are simply in denial about the true value of their property in today's market. Prices have fallen so quickly that it is simply too painful for some to accept that their house is now worth $200,000 less than just 2 years ago.

For many others, their mortgage balance exceeds the market value of their home and their adjustable rate loan is going up. So, they have listed their home as a short sale. The short sale process is not for the timid and weak willed. It is a viable option, but it is also a process. And, in my experience it is a process most buyers have a hard time with because it includes a lot of waiting and uncertainty. (I will blog on short sales in the near future). So, in my experience, most people trying to buy foreclosures in the Santa Maria/Orcutt real estate market are only considering bank owned properties. This is due to the fact that you are more likely to get significant price reductions from banks as many sellers can't or won't give you the price reductions that banks can stomach easily. But, there is significant competition for these listings. Many are receiving 3-4 offers the first day they are listed. Some are being bid up past their list prices. So, it is important to use a buyer's agent that can help you effectvely navigate through the process.

If you are interested in receiving e-mail alerts on newly listed bank owned properties in the Santa Maria and Orcutt market, fill out a request on my website and indicate "bank owned" in the "comments" section. I will create a "Client Portal" where these bank owned Santa Maria and Orcutt listings will be freshly delivered as they appear on the market. Bookmark your client portal and sort the properties into your "saved" and "rejected" folder. This is a great resource for buyers, you won't have to look at the same listings again and again. Once you've rejected a listing, it will not be presented to you again. Sign up today! This is a complimentary feature offered to all Mint Properties' clients.

Also, I make it a point to be available to my clients directly. So, feel free to contact me on my mobile at (805) 878-9879.

Sincerely,

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner of Mint Properties
(805) 938-9950 (main)
(805) 878-9879 (mobile)
tni@MintProp.com

www.CentralCoastRealEstateSearch.com
www.BuySantaMariaForeclosures.com
www.MintProp.com

Nov. 28, 2007 - Tni LeBlanc of Mint Properties, Local REALTOR e-PRO® Agent Utilizing Technology To Provide Consumers With State-of-the-Art Services

Nov. 27, 2007 - Free Grover Beach Property Search & Market Update

Bookmark and search for Grover Beach Listings on my website.

Market update for Grover Beach California - The news does not look that great for sellers in Grover Beach. In the past 30 days, I have only one reported residential sale in the MLS. That was this 3 bedroom, 2 bath, 1248 square foot home on a 5,000 square foot lot which sold for $530,000 on October 31, 2007. What does this means for buyers? Well it is a great time to be a buyer in Grover Beach -- you have plenty of sellers willing to work with you.

In Grover Beach news, the Times Press Recorder reports that the Grover Beach City Council has agreed to repair portions of North 12th street from Atlantic to El Camino Real. This area has generated many citizen complaints. A report issued by city engineer, Jim Garing, indicates that the steep angle of the street causes faster pavement deterioration than other surface streets. Repaving will help with further deterioration.

Contact Tni LeBlanc of Mint Properties for all your Central Coast real estate needs. I would love to assist you in taking advantage of recent market conditions. Please contact my office today at (805) 938-9950. Also, feel free to search for Central Coast properties on my website, and check my blog for up to date market information.

*Based on the information from the Central Coast Regional MLS for the 30 days prior to this posting, November 27, 2007. 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.

Nov. 26, 2007 - Nipomo Delays Water Decision Making Due to Blacklake Residents' Concerns

According to the Adobe Press, Blacklake residents turned out in great numbers to the Nipomo Community Services District ("NCSD") meeting in response to a proposed plan which would require an equitable contribution of $1672 from each Blacklake homeowner in order to merge the water systems. Blacklake residents argue that the equitable contribution should not be required of them because the systems were combined, in effect, when NCSD annexed Blacklake in 1993.

In short, NCSD wants to combine the Blacklake Division and Town Division water funds. Blacklake's fund comprises 58 percent of the 2.5 million currently managed by the Service District. Instead of moving forward on the initiative, NCSD voted 3-2 to further study the capacity of the existing Blacklake system, as well as the financial impact of a merged system versus a stand alone Blacklake system.

Contact Tni LeBlanc with Mint Properties today for all your Central Coast real estate needs. I would love to assist you in taking advantage of recent market conditions. Please contact my office today at (805) 938-9950. Also, feel free to search for Central Coast properties on my website.

Nov. 25, 2007 - Santa Maria Homeowners Receive Flood Insurance Reprieve

As reported by the Santa Maria Times, FEMA has decided that the new maps which are expected to place most of Santa Maria in a flood plain, will not be issued until September 2008 at the earliest. These maps had been expected this fall.

This provides a small reprieve to Santa Maria property owners, who would be required to purchase flood insurance, if they hold a federally insured mortgage. Homeowners who purchase flood insurance before the maps become effective may be able to receive a discount on the cost of insurance. Of course, city and county officials are still trying to work with the Army Core of Engineers to get the levee fixed which would remove the concern altogether.

Remember to contact Tni LeBlanc with Mint Properties for all your Central Coast real estate needs. I would love to assist you in taking advantage of recent market conditions. Please contact my office today at (805) 938-9950. Also, feel free to search for Central Coast properties on my website. www.MintProp.com

Nov. 13, 2007 - First Blog Entry

Here is my first blog entry. I hope to get up and running on here shortly.

I also blog on www.tnileblanc.wordpress.com