San Diego Realtors Seeing Double Offers
February 7th, 2008 Categories: Market Trends, Oceanside, Rancho Santa Fe, Real Estate News, San Marcos
The San Diego real estate market has been swirling with dismal reports about short sales, foreclosures and inventory gluts.
The markets are particularly bad in San DIego suburbs like Eastlake, Otay Mesa, San Marcos and Oceanside where so many new subdivisions were built in the last six years. Buyers swarmed into these communities, lured by granite countertops, stainless appliances and liar EZ loans. Most buyers assumed they would be able to sell at a profit as soon as the builders next phase was released.
Fallout from this real estate mess has left no community unscathed. Even the Rancho Santa Fe real estate market has a few foreclosures pending. But more than a few San Diego Realtors are starting to whisper about the return of multiple offers.
These arent the same kinds of multiple offers we saw in 2004 and 2005, when San Diego home prices were reaching new highs each month, and we were being honored by the news media as having one of the hottest real estate markets in the US. Todays multiple offers come from home buyers and investors who have been waiting in the wings for what they see as a market bottom. Or something close to that buyers heaven.
San Diego homes attracting multiple offers are generally priced substantially under market. They also make the Realtor grapevine:
Did you hear about the 4-bedroom home in Oceanside listed at $180,000?
What do you think of that cute vintage Spanish bungalow near San Diego State at $249,000?
How about that gorgeous 2100 square-foot remodel in Lake San Marcos at $300,000?
The bottom of the San Diego real estate market is both muddy and bloody:
Buyers and investors have a sense that their toes are touching a muddy bottom. Home prices could sink a little lower, but better to buy while selection is so good and rates are low.
For most San Diego home sellers, the real estate market feels nothing short of bloody unless one is well-situated west of I-5 near the beach. For the bloodied sellers, profits have been slashed, if not lost altogether.
The multiple offer phenomena is also being noted in other decimated real estate markets, including Denver, where outstanding Realtor Kristal Kraft notes the same thing happening.
Read also:
San Diego Real Estate in the Tank: Fact or Fiction?
San Diego Luxury Builder: 2007 Worst in 40 Years
Where is the San Diego Market Bottom?
How to Create a Market Bottom in Real Estate: Part One
January 3rd, 2008 Categories: Encinitas, Real Estate News, San Diego Market Trends, San Diego Real Estate, San Marcos
There are no shortage of buyers in the San Diego real estate market, but most are sitting on the sidelines waiting for what feels like a market bottom. It is a scenario that is likely repeated in real estate markets throughout the country.
Through a process of trial and error, we have learned to attract serious and qualified buyers utilizing value range marketing, with very alluring bottom pricing. Using value range pricing, we establish a price range which will be acceptable to the seller.
Here are three recent examples:
Case One: An older 1900 square foot home in San Diegos Clairemont Mesa. The home was clean and vacant, but in dire need of updating. Other unsold homes in the neighborhood were priced in the mid $500s to low $600s. Our seller was motivated and did not wish to be bothered with updating the home We knew there would be buyers who would be happy to remodel a home to their own desires if the price were attractive enough. We priced this property with a value range of $479,000 to $525,000. Within a week we had two offers and ended up settling on a price of $465,000 in as-is condition. The buyers are delighted with their buy and the sellers is relieved to have sold her home with no required repairs.
Case Two: A home in Encinitas Ranch is rented to uncooperative tenants, who refuse to allow the home to be shown to anyone. It languished on the market at $950,000, in danger of going into foreclosure. We reduced the price to $700,000 to $800,000 and within five days had six offers. The top negotiated price is $50,000 over the high end of the range and the bank is delighted. The buyer is also ecstatic to be buying a home in upscale and coastal Encinitas Ranch at such a reasonable price and is willing to collect rent and await lease expiration in April.
Case Three: This home in Lake San Marcos gathered few lookers when priced at the high end of the market: $499,000 to $525,000. Destined to be a short sale, we slashed the price to $300,000 to $400,000 and currently have two offers in mid range with others promised in the next few days.
None of these offers come from buyers seeking 100 percent financing. All are putting down a minimum of 20 percent and a couple are all cash offers. These are serious home buyers who have been waiting for San Diego buying opportunities such as these. They are not looking at homes with yesterdays pricing; they are seeking below market pricing and the security that brings in turbulent real estate markets.
Stay tuned for Part Two, where we will reveal an innovative real estate pioneers plan to free locked-up equity in homes whose owners are wishing to move up or down in the San Diego real estate market.
San Diego Loan Fraud: Kickbacks and Consequences
December 6th, 2007 Categories: Carlsbad Real Estate, Coronado, La Jolla, Market Trends, Mortgage News, Real Estate News, San Diego, San Diego Communities, San Marcos
Opportunities for real estate fraud couldnt have been more ripe than in 2005 and 2006, when real estate prices started to quietly soften especially in fertile markets like San Diego, Phoenix, Las Vegas and Miami.
Home prices in these areas had rocketed to unsustainable levels, and some of the micro markets within these areas had already started to stall as early as 2005. By 2006, market time and days on market for San Diego real estate had begun to climb, to the discomfort of many sellers.
Many had listed their properties, hoping their homes could sell for at least as much as the recent neighborhood comparable sales or their own refinance appraisal and perhaps even more. Some of these sellers were more motivated than others, and reduced their listing prices substantially to attract more buyers.
The stars were perfectly aligned for the real estate crooks:
- The San Diego housing market was declining, and there was general confusion in pricing;
- Mortgage money was easy, especially with stated income loans.
- Many of these shady real estate agents also wore the hats of loan brokers and vice versa. This allowed better control of the transaction.
For example, we had an Imperial Beach home listed at close to $500,000, based on the owners 2005 refinance appraisal. Because the property needed so much work, the motivated absentee seller agreed to reduce the price to $399,000 and sell the home in as-is condition. Almost immediately, we had an offer for $500,000 (100 percent financing) with $120,000 to be credited back to the purchaser at close of escrow. The South Bay agent assured us the buyer was approved by their crooked in-house lending operation.
We presented the offer to the seller, and advised to him reject it outright. It was an obvious case of loan fraud.
A few months later, we had another fraudulent purchase attempt on a home we had listed in Carlsbad. It was a lovely listing in Rancho Carrillo that had also had a substantial reduction in price. We received a verbal offer from an out-of-area contractor who had never seen the property. His loan broker called from Northern California, and explained that their offer (100 percent financing again) required over $100,000 back because of all the work this contractor would have to do. They wanted me to write the offer, believing perhaps that if I double-ended the deal, I would be more cooperative.
No dice.
We shot back a quick rejection. This newer home, by the way, was already in pristine condition and was sold shortly thereafter to very qualified buyers.
This time, though, I called the San Diego office for the FBI, and reported all the information I had regarding this attempted fraudulent purchase. I provided names, telephone numbers and email addresses and never heard anything more.
Since then, we have seen countless cases where San Diego County homes were sold at highly inflated prices in 2005 or 2006 with 100 percent financing. That can be an immediate red flag for either buyer and borrower misrepresentation or possible loan fraud.
There is also the technique of hiding a kickback in inflated commission, because lenders arent privy to real estate commissions paid. Though not exactly illegal, it is a practice that should be examined. I am inclined to think commission kickbacks should be considered a lender disclosure issue.
The untallied costs of these real estate and lending crimes and schemes have contributed enormously to the current real estate crisis.
In the meantime, the US Department of Justice (DOJ) has wasted huge amounts of time and resources the past few years pursuing the National Association of Realtors (NAR) over ownership of MLS data and other obscurities. Their time, I believe, would have been far better spent pursuing organized and fraudulent real estate practitioners. Had they, the FBI and other law enforcement agencies been more aggressive in this arena, the real estate market might be in a different position today.
North County Wine Company: Fine Wine Tasting in Your San Marcos Neighborhood
August 17th, 2007 Categories: Real Estate News, San Marcos
Can anything located between a Tom Thumb Nursery and an R.V. Storage facility be worth visiting? The resounding answer is YES! The NORTH COUNTY WINE COMPANY is definitely a wine lovers destination.This North County find stocks over 417 wines, with 207 under $25–and 72 under $10! What more could you ask for? I know, how about a tasting room. North County Wine Company has that too. Recently, though, this wonderful meeting spot has had some problems with a little expansion they are planning. The San Marcos laws and regulations governing the serving of alcohol state that wine can only be served directly in front of the wine bar. The owners wanted to add a patio area immediately off the bar area in order for their patrons to be able to kick back and leisurely sip their wine in a casual setting. After petitioning the city, they were given permission to expand to the patio, as long as they came up with $3400 just to apply for the permit! It makes you wonder if all those restaurants in “Old California Restaurant Row” had to pay $3400 in order for their customers to be able to sip their drinks on their patios. Regardless, make it a point to visit this fabulous addition to the ever-growing list of unique and wonderful retail destinations in San Marcos. Located at 1099 San Marcos Blvd, San Marcos, CA 92069 760-744-2119 Hours of Operation: 10-8 Tuesday to Saturday, 12-6 Sunday, and closed on Mondays. Right across the street from San Marcos’ “Old California Restaurant Row.” Go in and enjoy a friendly wine tasting across the street and dine at your restaurant of choice. In the surrounding area you will find Lake San Marcos, Discovery Hills, Discovery Meadows, Cal State San Marcos and the up and coming San Marcos Creekside Development. For more information on San Marcos Real Estate– or if you hear any juicy gossip about our great city give me a call 760-518-2264.
The Pampered San Marcos Home
August 10th, 2007 Categories: Real Estate News, San Marcos
Once upon a time, a persnickity home buyer decided to compete with every model home in San Diego County. She felt she could improve on their offerings, and decided to create a masterpiece of her own in lovely San Marcos, just north of San Diego.
Rose had a list of demands that had to be met.
First of all, the lot for her proposed home would have to be large enough to host the proverbial outdoor Greek wedding–and with enough room to discreetly park big toys such as RV’s, boats and jet skis. The property also had to be close to Twin Oaks Golf Course and near miles of hiking trails. Prestigious Sage Canyon provided precisely what she was seeking. The handpicked 20,000 square-foot lot offered the space Rose was seeking as well as a perfectly-designed 3200+ square foot home.
So with lot and location resolved, this determined and tasteful woman decided:
1. A magnificent flagstone entry with embedded lighting should lead to the entry door, which when opened, would reveal…
2. Flooring finished like fine furniture. Ordinary hardwood flooring would never do. This decorator demanded cherry floors with a sheen that would rival museum quality furniture. And rising above this magnificent floor in the lovely living area is a…
3. Grand rock fireplace that was likely modeled after one found in a luxurious Aspen or Gstaad ski lodge. Located in a wing off the living area is…
4. The spacious downstairs master suite, which boasts a closet for the clothes horse and a large garden bath that invites spa retreats.
The gourmet kitchen, of course, has granite surfaces and upscale appliances. Upstairs is a roomy bonus room large enough to host a pool table, bar and various arcade games as well as three other bedrooms.
Rose never planned to move from this pristine, polished and recently-completed Sage Canyon masterpiece, but sometimes life has other plans. Family demands are calling her out of the area and she has priced her home to sell quickly at just $775,000, which is well below area comparables.
One person’s loss will become another’s gain. If you are interested in such a real estate opportunity, please call Eve Sieminski at 760-518-2264.
