Sep. 16, 2008 - Orcutt CA Condo Foreclosures (REOs & Short Sales)

There are approximately 34 active or contingent condo listings in the Orcutt CA area, and the average list price centers around $220,000. This does not include HUD properties, which are not listed on the local MLS, or for sale by owner units. The most expensive Orcutt condo currently listed is a 2 bedroom 2 bath luxury townhome unit in Foxenwood Garden Villas which is selling for about $699,900. Contrast those prices with the nearby Santa Maria condo market which has about 52 active or contingent listings with an average price around $140,000, with the most expensive being a luxury townhouse in Somerset Gardens listed at $385,000.

So, the prices in Orcutt tend to be higher than in Santa Maria. Buyers and local residents cite higher test scores in Orcutt schools as one reason the area is preferred over others. Some Orcutt locations offer more of a rural or rustic feel than in the City of Santa Maria. Orcutt is also close in proximity to Vandenberg Air Force Base. Typically, when newly transferred personnel are searching for off base housing, they consider both the Lompoc and Orcutt areas as they both offer a short commute time to Vandenberg AFB.

Of the 34 units on the Orcutt condo market over half (18) are short sales, and 9 are bank owned properties. So, this market is currently dominated by foreclosures and "pre-foreclosures." This offers special opportunities for buyers. The condo market has seen tremendous price recession locally as the prices must compete with first time home buyer homes which now begin in the mid $200,000's in the Orcutt area. For example, in the Village of Northpoint, which offers residents a lovely secluded setting, a tennis court and pool, there are currently two bank owned units. A 4 bedroom bank owned unit in escrow with an asking price of around $215,000, and a 3 bedroom REO which is still sitting on the market for about $240,000 with no takers thus far. The monthly HOA fees in this gorgeous development range around the mid $200s.

If you would like a list of Orcutt condo foreclosures delivered to your email account, send a request to email@mintprop.com, or if you are coming for a visit to look for housing, I can arrange a personal tour of Orcutt's condo developments, please contact me at (805) 878-9879, I will be happy to assist you.

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. 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

Jun. 28, 2008 - Santa Maria CA & Orcutt CA Bank Owned / Foreclosure Market Update

The Santa Maria/Orcutt CA market for foreclosure properties is certainly not unique. However, because of media reports on overall trends in the national real estate market, many who venture into the local home buying market are under the misimpression that there are hundreds of cheap houses sitting out there for the picking. That is not exactly how it is currently working. I might say that about the local condo market -- but not the market for homes. That is not to say that there are not bargains out there. There clearly are. But, the local market for foreclosed properties is extremely competitive. On one particularly choice recent bank owned listing, the listing agent reported 28 offers in 5 days.

At present, there are plenty of buyers who have not had success buying a foreclosure. That is because out of approximately 700 single family residences currently on the market, about 300 are short sales. Some are referring to these short sales as "pre-foreclosures" although the term is not altogether accurate as not all will end up in foreclosure if they do not sell. Indeed, some sellers will simply remove them from the market and suffer through, but it is true that the vast majority are trending toward foreclosure.

Short sales are listings where the seller offers the home contingent upon the lender approving the sale at that price because the seller owes more than the house is currently worth. In my experience, short sales take about 3-4 months to close and at least 2/3's of the time they fail, i.e., the seller cannot come to terms with their lender to accomplish the sale. This seems counter intuitive in many cases as often the lender ends up taking less for the property as a bank owned home than as a short sale. However, there are competing interests involved in a short sale including the lender's interest in trying to get more money out of the distressed seller, appeasing sometimes unrealistic investors who are in denial about the extent of their loss, and the fact that the extent of the loss in this unique market many times outweighs the cost savings of avoiding a foreclosure (some estimates place this at $30k-$50k at maximum). Short sales have their advantages for buyers in that you are dealing with a seller who is VERY motivated and the property is usually in better condition than the average foreclosure. But, in my experience buyers get terribly frustrated with them and the success rate is low. This puts an almost laser like focus on the properties that pop up as bank owned as these sales have more certainty -- if you get an accepted contract you will get the property at the end of the process. The tricky part is getting an accepted contract. Currently there are about half as many active bank owned properties as short sales on the market (about 150) in the Santa Maria/Orcutt market. In my view, this reflects the fact that the bank owned market moves FAST. When bank owned properties, i.e., properties that have completed the foreclosure process, are placed back on the market at competitive prices they are under contract quickly. The days on market reflected may prove deceptive to this trend as many times a deal is all but accepted but still reflected as active in the MLS as the contract makes its way through a bank beaucracy for final signatures and approval. However, every bank owned property I have written on for buyers this month except for one -- has had multiple offers.

The tactic many bank sellers are undertaking is to list the properties low, refuse to consider offers until they collect a number of offers over a couple of days or weekend and then "counter offer" back to all potential buyers with a request for their "highest and best" offer. Nice -- now buyers are in the position to bid against themselves -- blindly. I have a technique to aid in this situation -- one that will keep you from overpaying. However, it is still an ugly position to be in. As a result, some properties are being bid up slightly -- which is contrary to what many buyers expect and what the media portrays about the real estate market. Take into account that each bank owned home has to make its way through the foreclosure pipeline, a process which takes months. So, when they hit the market they are a hot commodity -- when priced right. Be ready when you step onto this foreclosure highway -- be prepared for the fast lane.

I specialize in guiding people through this process. You need an expert. Call me today to take advantage of this market (805) 878-9879.

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

*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.



Add to Onlywire

May. 11, 2008 - Buying a Bank Owned Beach Home in Shell Beach CA, Pismo Beach CA, & Grover Beach CA

The Central Coast of California offers a wide range of housing for those who want their own little piece of the coastline. From a one bedroom "beach shack" in Oceano or Grover Beach to a million plus beach estate with panoramic ocean views in Pismo Heights; everyone can find their perfect vacation beach home on the Central Coast.

"Beach shacks" as they are dubbed locally, or "beach bungalows" start as low as $200k and go upward depending on their condition and location. At the lower end, many beach bungalows are priced without the value of the home considered, as structural issues make some borderline "tear downs." Potential purchasers should be prepared to put between a 20%-33% down payment on this type of house, as some lenders will see this as the purchase of a lot (and thus a riskier investment) with the home having no value at all. Some property owners have improved these shacks and updated them, but many in their existing states would not qualify for the low down payment government backed financing programs such as VA or FHA.

Beach bungalows in Grover Beach, Pismo Beach, and Shell Beach are usually no more than 2 bedrooms and one bathroom and the square footage is typically less than 1000 square feet. Of course, pricing is heavily influenced by condition and the location. There are beach bungalows available in tony Shell Beach, CA; however, I find much of the inventory there has been improved and updated as compared to the inventory in Grover Beach or Oceano. Due to the location which offers direct walking access to the popular beach areas, and the typically better condition of the properties, the prices of beach bungalows in Shell Beach start at around $500k and go upward.

Because of the housing downturn, we are just beginning to see bank owned beach house inventory on the Central Coast. This is very exciting as new opportunities abound for buyers to find the vacation house of their dreams at a significant discount. Those wishing to buy a bank oned beach house are in for some challenges. Indeed, some buyers are not up to it, as there are definite delays when buying homes from a bank. However, bank owned homes offer some of the best discounts in the current market, and it may turn out to be worth your wait. In my experience, these delays can occur at any part of the transaction.

I've had bank owned transactions where it took almost 3 weeks for a bank to accept an offer, two weeks to sign the contract, 3 weeks to choose an escrow company, or one week to sign their estimated settlement statement. These types of delays can cause difficulty when financing rate locks are involved. Some of these delays are less brutal on vacation home buyers because they do not need to coordinate a move into the home immediately. The good news is that the bank owned pricing environment has spilled over and affected even the prices that private sellers are asking for beach homes. They must compete with bank owned inventory in order to obtain offers. This translates into an especially opportune time to pick up a beach house.

My background as an attorney lends itself easily to a specialty in helping others buy bank owned (REO) and "pre-foreclosure" homes. I would be happy to show you all the Central Coast has to offer for your second home purchase, including golf course communities with ocean views such as Cypress Ridge in Arroyo Grande, hilltop ocean view homes in Pismo Heights, and beach front bungalows in Shell Beach. Call me directly on my cell at (805) 878-9879, or send me an email at tni@mintprop.com, and I'll set up a "Client Portal" for you where you'll get alerts about newly listed bank owned beach homes. Or you can simply search for free 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.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateBlog.com
www.CentralCoastRealEstateSearch.com
www.VAFBRealEstateSearch.com