Wednesday, January 26, 2011
Most Foreclosed Homeowners Not Attempting Short Sale...Why?
Today we had an office meeting where I learned some interesting facts that I wanted to share. Many banks have released the next round of foreclosed homes onto the San Diego market. This means there is more inventory for buyers to choose from, which is good for buyers. Unfortunately, this same news is not so good for the sellers. If your home is on the market, you now have more competition. Make sure your home is priced very competitively or the buyers are going to pass it by. Buyers do not care how much you owe, how much you want to net or that you think the paneling in the living room increases the value. They are going to compare it to what else is available. Also, if you think you will just wait until the other houses sell and then are able to get what you want; it isn't going to work that way. You see, as other homes in the area sell for less, you have to understand that these are the numbers the appraisers are going to use when appraising your home for the future buyers.
Another interesting fact is that most of the homes that have been foreclosed on and are now on the market were not previously listed for sale. The distressed homeowners did not attempt a short sale prior to being foreclosed on! I find this remarkable and disturbing. Why would the homeowner just give it up to foreclosure? If the home had been sold through a short sale prior to the foreclosure the owner's credit would not have been hit as hard and they would have positioned themselves to purchase another home sooner into the future. Yes, a short sale requires paperwork and some effort on the homeowner’s part but it would be well worth avoiding the foreclosure.
So what is the main reason people do not do the short sale? It is actually because they are counting on a loan modification to rescue them so they can keep their homes. But the reality is that only 10% of all loan modifications that are requested actually go through and this is up from 5%. So what does this mean to the distressed owner? I recommend that you try a loan mod but do NOT beat a dead horse. If you do not get the results you want in a reasonable amount of time move on to the short sale. Do NOT keep waiting for the rescue that is never going to come while the bank files the NOD, Orders the trust sale, forecloses and then kicks you out.
Another interesting fact is that most of the homes that have been foreclosed on and are now on the market were not previously listed for sale. The distressed homeowners did not attempt a short sale prior to being foreclosed on! I find this remarkable and disturbing. Why would the homeowner just give it up to foreclosure? If the home had been sold through a short sale prior to the foreclosure the owner's credit would not have been hit as hard and they would have positioned themselves to purchase another home sooner into the future. Yes, a short sale requires paperwork and some effort on the homeowner’s part but it would be well worth avoiding the foreclosure.
So what is the main reason people do not do the short sale? It is actually because they are counting on a loan modification to rescue them so they can keep their homes. But the reality is that only 10% of all loan modifications that are requested actually go through and this is up from 5%. So what does this mean to the distressed owner? I recommend that you try a loan mod but do NOT beat a dead horse. If you do not get the results you want in a reasonable amount of time move on to the short sale. Do NOT keep waiting for the rescue that is never going to come while the bank files the NOD, Orders the trust sale, forecloses and then kicks you out.
Friday, January 21, 2011
Instant Cash Flow
If you are considering buying a rental property, here is a good one. Located in Villa Monte Vina in Rancho San Diego. This 1 bedroom 1 bath condo is listed for $130,000 and it is currently rented for $1,100 per month. Let's crunch some numbers...
$130,000 @ 4.75% is $678 per month. (of course you would need a downpayment to get a loan so the actual loan amount would be less.
$678 (mortgage and interest)
$200 (HOA fees)
$70 (insurance)
$135 (taxes)
_____________________
$1083 per month and it is currently rented for $1,100.
Call me if you are interested in this property or any other.
$130,000 @ 4.75% is $678 per month. (of course you would need a downpayment to get a loan so the actual loan amount would be less.
$678 (mortgage and interest)
$200 (HOA fees)
$70 (insurance)
$135 (taxes)
_____________________
$1083 per month and it is currently rented for $1,100.
Call me if you are interested in this property or any other.
Wednesday, January 5, 2011
Monday, January 3, 2011
Alpine Real Estate Market Report - December 2010
Here is the Alpine real estate market report for December 2010. I have included the active, pending and sold properties for detached homes only. If you would like further information or a different are, please feel free to give me a call.
There are currently 80 active listings currently on the market, ranging from $215,500 for 2 bedrooms, 1 baths, 840 square feet to $2,995,000 for 3 bedrooms, 3 baths, 3000 square feet.
18 properties are pending, currently in escrow.
8 properties SOLD (closed escrow) in December, ranging from $175,000 for 2 bedrooms, 1 bahs, 936 square feet to $539,500 for 4 bedrooms, 3 baths, 3085 square feet. The average market time for the properties that sold was 131 days.
There are currently 80 active listings currently on the market, ranging from $215,500 for 2 bedrooms, 1 baths, 840 square feet to $2,995,000 for 3 bedrooms, 3 baths, 3000 square feet.
18 properties are pending, currently in escrow.
8 properties SOLD (closed escrow) in December, ranging from $175,000 for 2 bedrooms, 1 bahs, 936 square feet to $539,500 for 4 bedrooms, 3 baths, 3085 square feet. The average market time for the properties that sold was 131 days.
El Cajon Rea Estate Stats - December 2010
Happy New Year everyone! Here is how the El Cajon real estate market looked for December 2010. I have included statistics for all three zip codes. This is for detached homes only.
Zip code 92019
There are currently 134 active listings currently on the market. Ranging from $175,000 for 3 bedrooms, 2 baths, 1014 square feet to $2,595,000 for 4 bedrooms, 6 baths, 5890 square feet.
36 properties are pending, currently in escrow.
17 properties SOLD (closed escrow) in December, ranging from $185,000 for 3 bedrooms, 1 bahs, 945 square feet to $810,000 for 5 bedrooms, 5 baths, 4847 square feet. The average market time for the properties that sold was 76 days.
Zip code 92020
There are currently 100 active listings currently on the market. Ranging from $174,900 for 1 bedrooms, 1 baths, 1000 square feet to $1,195,000 for 4 bedrooms, 5 baths, 3519 square feet.
38 properties are pending, currently in escrow.
21 properties SOLD (closed escrow) in December, ranging from $168,000 for 2 bedrooms, 1 bahs, 994 square feet to $690,000 for 4 bedrooms, 5 baths, 3856 square feet. The average market time for the properties that sold was 72 days.
Zip code 92021
There are currently 115 active listings currently on the market. Ranging from $170,000 for 2 bedrooms, 2 baths, 1100 square feet to $1,200,000 for 3 bedrooms, 2 baths, 1500 square feet.
37 properties are pending, currently in escrow.
22 properties SOLD (closed escrow) in December, ranging from $167,000 for 2 bedrooms, 1 bahs, 904 square feet to $1,175,000 for 4 bedrooms, 4 baths, 6100 square feet. The average market time for the properties that sold was 59 days.
Zip code 92019
There are currently 134 active listings currently on the market. Ranging from $175,000 for 3 bedrooms, 2 baths, 1014 square feet to $2,595,000 for 4 bedrooms, 6 baths, 5890 square feet.
36 properties are pending, currently in escrow.
17 properties SOLD (closed escrow) in December, ranging from $185,000 for 3 bedrooms, 1 bahs, 945 square feet to $810,000 for 5 bedrooms, 5 baths, 4847 square feet. The average market time for the properties that sold was 76 days.
Zip code 92020
There are currently 100 active listings currently on the market. Ranging from $174,900 for 1 bedrooms, 1 baths, 1000 square feet to $1,195,000 for 4 bedrooms, 5 baths, 3519 square feet.
38 properties are pending, currently in escrow.
21 properties SOLD (closed escrow) in December, ranging from $168,000 for 2 bedrooms, 1 bahs, 994 square feet to $690,000 for 4 bedrooms, 5 baths, 3856 square feet. The average market time for the properties that sold was 72 days.
Zip code 92021
There are currently 115 active listings currently on the market. Ranging from $170,000 for 2 bedrooms, 2 baths, 1100 square feet to $1,200,000 for 3 bedrooms, 2 baths, 1500 square feet.
37 properties are pending, currently in escrow.
22 properties SOLD (closed escrow) in December, ranging from $167,000 for 2 bedrooms, 1 bahs, 904 square feet to $1,175,000 for 4 bedrooms, 4 baths, 6100 square feet. The average market time for the properties that sold was 59 days.
Jamul Real Estate Stats for Dec 10
Happy New Year everyone! Here is how the Jamul real estate market looked for December 2010.
There are currently 47 active listings currently on the market. Ranging from $199,000 for 5 bedrooms, 5 baths, 2070 square feet to $2,350,000 for 6 bedrooms, 5 baths, 6264 square feet.
9 properties are pending, currently in escrow.
7 properties SOLD (closed escrow) in December, ranging from $250,000 for 4 bedrooms, 2 bahs, 1356 square feet to $790,000 for 4 bedrooms, 3 baths, 3758 square feet. Average market time was 72 days.
If you need further information or would like me to check another zip code, please feel free to give me a call.
There are currently 47 active listings currently on the market. Ranging from $199,000 for 5 bedrooms, 5 baths, 2070 square feet to $2,350,000 for 6 bedrooms, 5 baths, 6264 square feet.
9 properties are pending, currently in escrow.
7 properties SOLD (closed escrow) in December, ranging from $250,000 for 4 bedrooms, 2 bahs, 1356 square feet to $790,000 for 4 bedrooms, 3 baths, 3758 square feet. Average market time was 72 days.
If you need further information or would like me to check another zip code, please feel free to give me a call.
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