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Posts Tagged ‘bank owned homes’

How Many Homes are for Sale in April 2012?

26 Apr

It’s been a very busy couple of months.  March came in like a lion with Buyers buying houses in the Inland Empire at a ferocious pace.  April has followed suit and there’s no end in sight!

It’s a good time to check the housing inventory. Did the foreclosures, bank owned (REO homes) come on the market as anticipated?  Are short sales on the rise?  What about standard sales?

Upland has a total of 181 homes for sale – 121 are standard sales, 41 are short sales and 16 are REO.

Rancho Cucamonga has 327 total homes for sale – 185 standard, 119 short sales and 22 REO.

Claremont has 89 total homes for sale – 67 standard, 16 short sales and 3 REO.

Fontana has 340 total homes for sale – 137 are standard, 149 short sales and 51 REO

Ontario has 269 total homes for sale – 109 are standard, 119 short sales and 37 REO

Pomona has 209 total homes for sale – 97 are standard, 115 short sales and 14 REO.

Montclair has 48 total homes for sale – 25 are standard, 16 short sales and 7 REO

That gives us a grand total of 1463 homes for sale in 7 cities in the Inland Empire.

575 short sales in all or 39% are in some state of foreclosure.

150 bank owned (REO) or 10%.  And standard sales are at 741 or 50% of the market.

Looking back 3 months at my January 19th post, there were 2297 total homes for sale – WOW – inventory is down 64%!!  3 months ago short sales made up 43% of the market and REO’s were at 11% – not much change there.

But the most indicative number that shows us where we are going is the standard sales inventory.  3 months ago they were at 43% and they have jumped up 7%!  That is the best news I can give you.  Regular, standard sales are on the rise which means that the real estate market is stabilizing and the general public is feeling confident enough to put their homes on the market.  When the number of homes for sale reaches a low point, then the simple business concept of supply and demand goes in to effect.  With fewer homes on the market, prices will stabilize and we could possibly see an increase in prices.  But don’t get carried away yet, in 3 months I’ll give you the statistics and we will have a better idea of the housing trend.

 

 
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Posted in Home inventory, Homes For Sale, Real Estate Update, REO, Seller's market, short sales

 

Real Estate – Myths or Facts?

28 Feb

This past week I heard so many real estate stories from Buyers and Sellers so I wanted to talk about some myths or facts that are being told about real estate.

Fact or Myth?    My FICO score will go down if too many mortgage lenders run my credit to approve me for a home loan.

Myth – Your FICO credit score will go down maybe a couple of points but not significantly enough to jeopardize you unless you are barely qualifying to purchase a home.  If your score is in the high 700′s a small drop will not effect you that much.  However, if you barely have the minimum FICO score to qualify for a home loan and your score goes down, yes, you might not be able to get a loan.  If you are that close to the minimum score, then maybe you should spend more time building your credit before embarking on the biggest purchase of your life.

Fact or Myth?   If I price my house at market value, then I won’t have any negotiating room

Myth – In the Inland Empire communities at this time, Buyers are hungry to buy and they are smart!  If you price your home too high in order to have “wiggle” room then you have made the biggest mistake of real estate 101.  Buyers are all over the internet and out every weekend looking at homes and Open Houses, they know the right price for your home.  I guarantee that if you price your home at today’s market value, you will have multiple offers within a week!  What a nice problem to have!

Fact or Myth?  The economy is in the dumpster so I can offer 20% less for a bank owned foreclosure and the bank will be happy to take my all cash offer.

Myth – The banks have already taken big losses on foreclosed homes so when you see the list price, the banks have done their homework and had several appraisals done already.  The banks want the list price or more!  That’s right – and there are many, many cash buyers willing to pay it!

Fact or Myth?  If I wait till this summer to buy a home, the bank foreclosures will hit the market and prices will drop some more.

Myth – Inventory is being gobbled up as I write this.  The demand is high because of the low interest rates and rent prices are going up.  Even new home builders are reporting an increase in sales.  Waiting is a bad idea.  Sellers are starting to see that prices are stable and if inventory continues to shrink – not enough homes for Buyers to buy – then prices might go up and we will have a Seller’s market.

Fact or Myth?  Is now a good time to buy?

Fact – Yes, prices have been bouncing along the bottom for a year or more.  Interest rates are unbelievably low.  The real estate market is begging to come back to “normal”  Buying now is the best advice I can give you!

 
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Posted in Home inventory, Homes For Sale, market value, Real Estate Update, REO, Seller's market, short sales, total listings

 

How Many Homes are for Sale?

19 Jan

Its been a while since I posted the number of homes for sale in the Inland Empire/Foothill corridor area of Southern California.  We are two weeks in to 2012 and the news is that home sales are up.  Is inventory up too?  Well not yet but we are about 6 – 8 weeks from the start of the Spring selling season so let’s take a look at how many homes are for sale right now. Why is this important?  For the same reason you get a checkup at the doctor’s office, it’s good to know how healthy you are.

Upland has 207 homes for sale – 61 are short sales and 29 are REO’s (bank owned)

Rancho Cucamonga – 454 homes for sale – 220  short sales and 47 REO

Ontario – 377 homes for sale – 199 short sales and 52 REO

Montclair – 56 homes for sale – 28 short sales and 3 REO

Fontana – 574 homes for sale – 301 short sales and 67 REO

Claremont – 89 homes for sale – 21 short sales and 5 REO

La Verne – 86 homes for sale – 26 short sales and 7 REO

Pomona – 355 homes for sale – 175 short sales and 47 REO

San Dimas – 99 homes for sale – 29 short sales and 11 REO

Total homes for sale – 2297.  Short sales – 1060 and REO – 268

Overall, 46% of homes for sale today are short sales and only 11% are REO, 43% are standard sale.

But wait, didn’t the banks foreclose on 1000′s of homes in southern California the last week of 2011?  Yes, but they have not hit the market yet.  At the end of the 1st quarter we will take another look at the numbers.  Real estate has always been a numbers game,  by keeping track of the numbers we will have a good idea about the health of the real estate market.

 

 
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Posted in Buyer's market, Escrow, FHA, Home inventory, Homes For Sale, market value, Real Estate Update, REO, Seller's market, short sales, Title, total listings

 

Fix It!

05 Jan

This seems like a no-brainer.  If something needs repair such as a curtain rod, trim around a door or a sprinkler hitting a window – then it is wise to fix it.   Sprucing up your home to show it off can bring you extra $$.

Now there is a fine line here.  I’m the type of Listing Agent that does not recommend installing new carpet, granite counters and any other high dollar improvement.  Most times the Buyer will have their own ideas and style about home improvements and it is too hard to guess what they want.  About 4 years ago I had a Seller who was insistent on updating her deceased parent’s home before putting it on the market.  It took her about 9 months and $50,000 to accomplish this.  We put the house on the market and it sold for much less than I had predicted 9 months earlier due to declining values.  If she had put it on the market without any improvements she would have sold it for a higher amount and not went through all the improvement drama and money.

Now if you are dealing with electrical, heating or roof problems and you know they are in need of repair or upgrading then by all means have these attended to right away.  These can be expensive but a Buyer will automatically put a high dollar amount on fixing them.  Plus you can give the new Buyer the receipt when you close escrow so that they know who to call if they have trouble in the future.

One other thing that I advise Home Sellers is to have a professional home inspection.  For about $350-400 a home inspector will tell you if any of the major systems of the house need attention.  This is especially a good idea if you find yourself selling a parent’s home.  It might have been your childhood home but since you haven’t lived in it for 20 or more years, you might not know if your parents have been keeping up with repairs.

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Title

 

Happy New Year 2012! Is This the Year to Sell Your Home?

03 Jan

It is a hopeful time of year – New beginnings are on all of our minds as we start this first week of the new year.

Is this the year to sell your Home?  Have you been “waiting out the market” hoping for better prices?  Five years have come and gone since the “good old days” of high prices.  Reality has set in and we now know that a house is a Home first and foremost.  Everyone needs a place to call Home.

So if you are thinking about selling in 2012, here are 5 things to do to get ready:

1.  Clean up – no one likes a dirty house.

2.  Fix anything that is broken.

3.  Figure out what is your next step – will you down-size, move up, rent?  Get your plans together

4.  Hire a Real Estate Agent that you like and that understands Your needs.

5.  Price your Home at Market Value – don’t be tempted to go higher – it does not work anymore.

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Uncategorized

 

Top 5 Blogs Posts of 2011

30 Dec

  2011 was my first full year of blogging.  I kept my resolution and posted sometimes twice a week!

I learned a lot about what my audience is looking for when it comes to real estate information.  You want to know the steps for buying a House!

In January 2012  I will start blogging about Selling a House giving step by step information on what to expect in this ever changing market.   I think 2012 will be the year that Sellers finally “get it”.  Meaning that prices are not what they were 5 years ago and they won’t be for many years to come…..sorry about that!

Here are the top 5 blogs of 2011:

5.  12/5/11 Walk Thru

4.  9/23/11  House Hunting – Short Sales

3.  9/5/11  Find A Realtor

2.  9/2/11  What do I need to know when Buying a House?

1.  7/23/11  Not All Homes listed for sale are for sale?

p.s.  If you haven’t already seen my intro video – here it is!

Thanks for following me this year – see you in 2012!

 

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update

 

Close of Escrow

09 Dec

Step 16

Congratulations!  Escrow has closed!

You’ve been waiting for your Realtor to say this for the last 30 days!  Your lender has “funded the loan” for your new home and escrow has reported to your Realtor that the grant deed has been recorded at the county recorder’s office.  That event signals that Escrow has closed!

It seems that this time period has lasted forever but soon it will be a story that you will be sharing with your friends and family for years to come – you survived buying a Home!  You have accomplished the All American Dream of Home Ownership!

Hope you have been packing because tomorrow is moving day!

 

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Title, Uncategorized

 

Signing Loan Documents

21 Nov

Step 14

So at this time you are about 3 weeks in to the escrow process. The home inspection has been completed and any repairs needed to the home have been agreed upon by the you and the Seller. The lender has ordered an appraisal and it has come in at the agreed upon price and the conditions of the loan are being taken care of by the lender. You have approved the disclosures and signed all escrow documents. You have scheduled your tentative move date.

Escrow will call you approximately 5 days before the close of escrow date to schedule an appointment to sign the loan documents. It is always nice to have your Buyer’s agent present for this appointment so don’t hesitate to ask. Many agents will try to coincide the “walk thru” on the same day as you sign loan docs. That way you know that you are about 5 days away from closing your escrow.

 
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Posted in Escrow, Homes For Sale, Real Estate Update, Title, Uncategorized

 

Multiple Offers

09 Nov

I sort of skipped over the multiple offer situation but would like to talk about it now.

For most of my career in real estate in the Inland Empire I have been more of a Buyer’s agent. During these years what I have experienced is multiple offers on most homes for sale.

There is a huge demand for homes and the proof is the fact that every time, and maybe you think I’m exaggerating but it is true, every time I write an offer there are other offers on the same house. It doesn’t matter the price of the home, it can be $125,000 or $950,000 and there are more than one offer that my Buyer has to compete with. So that is the word I want you to remember – compete.

Because the number of homes for sale is low, the demand is high, there is no place for low-ball offers. If the house proves to be well priced, then offer your best. Especially when you are dealing with a bank owned home. The bank will always come back to the listing agent and ask for “Highest and Best”.

Yes, I know you say you don’t want to get in a “bidding war” but if you want to buy a home in this area, you will be competing. Read some of my earlier posts and you will find that competing is not only about price but the terms of your offer.

 
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Posted in Homes For Sale, Real Estate Update

 

Contingencies

28 Oct

Step 11

I thought I would go a little more in depth about the contingencies that are a part of the California Purchase contract.

Inspection contingency – If there is a problem with the house such as something not working properly, you as the Buyer will be advised by your Buyer’s agent to ask for repairs to that item. This works for a standard sale, not a short sale or bank owned home, they for the most part will not repair anything. Also, the Seller will give you disclosures about the property. Read them all as the disclosures are very important. If there is something disclosed by the Seller of the property that you do not agree or like, then tell your Realtor that you want to withdraw your offer. Be sure to do this by the 17th day, after that you might lose your deposit money.

Appraisal contingency – the property must appraise at the value (price) agreed upon. If the appraisal comes in higher, then you are lucky but if it comes in lower then it opens up negotiations again. Hopefully this won’t happen but if it does, your Buyer’s agent will need to go to bat for you. This is a critical point. Sometimes the Seller will not accept a lower price.

Loan contingency – the lender that you have chosen to give you a loan is doing their part to obtain financing on the home. They are also concerned with the appraisal. If there is a discrepancy in the value then the lender will have to wait to see if you and the Seller can agree so they can proceed with the loan process. During escrow the lender checks and double checks again just before the close of escrow on your employment and FICO scores – so stay employed and don’t run up any bills!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 
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