Blackberry Harvest

On the hillside in our Carlsbad back yard are a couple of giant philodendrons that have grown to the size of prehistoric monsters.  Four years ago, we noted a tall prickly weed with white flowers that had sprouted tall above the fence and deep within the monster plants. I seem to recall Mike asking one of the boys to cut it down– which never transpired.

Meanwhile the monsters continued to grow and three years ago, I decided to weed around the philodendrons and plant butterfly bushes.  While sitting on the hillside pulling weeds, I caught a glimmer of red in the corner of my nearsighted eyes.  Further inspection revealed lots of stickers and lots of blackberries–some of which had already ripened.

Oh joy!  That May and June blessed us with buckets of berries, which went into smoothies, oatmeal and muffins. As we picked seeds from our purple teeth, the family wondered how we had been gifted with such an unexpected blackberry patch. All agreed that the vines likely came from our composter with seeds transported by birds–or other critters.

It was truly an accidental garden–and one that blesses us/me with berries, scratched arms and seeded teeth each spring.  This afternoon yielded the bowl pictured and I am thinking of making this blackberry freezer jam with kind acknowledgement to Mrs. Warren, who lives somewhere in Georgia and courtesy of this lovely and this very Southern blackberry site.

San Diego Home Inspection

Not too long ago, we represented one of our clients on the purchase of a new home in San Elijo Hills. It was a beautiful home, offering all the standard features they wanted. The only obvious catches:

• Builder wanted clients to use their lender, even though Bank of America at that time offered lower rates and closing costs.  In exchange for using their lender, they agreed to pay FHA closing costs and provide some minimal upgrades.
   
• For some reason, the builder’s contract would not allow any outside inspector to enter the home on behalf of the buyers prior to close of escrow. (?)

With significant negotiation, we were able to prevail with lender issues and upgrade incentives, which saved our client a few thousand dollars. The home inspection, though, proved to be a more difficult challenge. While the builder’s staff was sympathetic to our wish for an independent inspector to go through the home prior to close of escrow, they said it was the builder’s policy to disallow professional home inspection prior to closing.

Once recovered from our shock, we encouraged our clients to have a professional inspection–as we do in all our San Diego real estate transactions. They agreed, and their professional inspector posed as a relative who had come to see the home–and a truncated inspection was accomplished (no exterior ladders were brought out to inspect roof or eaves).

This inspection turned out relatively clean, but other new home inspections have revealed electrical wiring pierced by metal staples, stoves not bolted to the wall, leaks and other items that warranted repair before buyer closed on the property.

Our recommendation? NEVER, ever close on a property without a professional inspection–even if it is a new home.  The inspector may discover issues that may not haunt you until years later, when recourse against the builder may not be possible.

And as our wise mothers always advised: Better to be safe than sorry!

And for what it’s worth, our son Mark Murphy recently returned from extensive training in Canada with Pillar to Post Professional Home Inspections and relishes the idea of catching builder boo boos and flaws. He can be reached at 760-828-8828.

Scott Murphy recently focused my attention on a Yahoo Finance article, The Myth of Good Debt–originally posted on US News and World Report. It’s a good reminder for us all.

In short, the author says all debt is basically…debt. It’s an obligation one owes to another, and that’s not necessarily a good thing. Still, most of us wouldn’t be able to buy a home in San Diego if we weren’t able to get a mortgage or loan to do so.  For most, it is also necessary to obtain financing when buying a car.

These are probably better loans than ones used, say, for shopping excursions, dinners out, entertainment and the like.  Most would agree that this is stupid an unwise use of debt–and a trap into which many young people and students fall.  Some are even wondering about the wisdom of student loans that take around two lifetimes to repay.

I’m a San Diego Realtor and wouldn’t be doing much business if mortgage loans weren’t available. The ability to buy and sell homes is largely dependent upon mortgage financing–just as car dealers depend on competitive auto financing and leasing.

Good debt may be a myth, but with mortgage interest rates at all time lows and San Diego home listing inventory contracting, it might be the time for even the most debt-shy buyers to consider buying real estate. When mortgage payments are less than rental costs–especially in coastal Southern California–it’s the potential opportunity of a lifetime.

NOW is the time to buy San Diego Real Estate

Inventory levels in the San Diego real estate market have been steadily shrinking–which means that our market (at least near the coast) has likely reached more normalized conditions. Add to that today’s announcement that mortgage interest rates have reached an ALL TIME LOW and buying signals for San Diego real estate couldn’t be much stronger. Moreover, we now have clients whose total mortgage payments are now less than the rent they were paying.  That alone is cause to celebrate!

Will average or median prices go down further?  Perhaps they will, but that’s not the way the wind is blowing–here and elsewhere.  We speak with brokers throughout the country on a regular basis, and  almost all are seeing the same thing: Strong buying activity and a shortage of good inventory.

If you are interested in exploring current home availabilities and listings,  just go to our San Diego Home Search where all current listings can be seen. And if you would just like to chat about neighborhoods, schools and what your budget can afford, feel free to give us a call at 877-818-8197.

–Roberta Murphy–Carlsbad, CA

Blog Theft

by: Roberta Murphy

Yesterday, when writing about Zillow,  I was alerted that another San Diego real estate site had lifted the article in its entirety. But imagine my surprise when I visited the domain and discovered that not only one article, but all of our copyrighted articles and blog material going back to 2011 had been swiped.

True and obvious confession: I’ve not been a very active blogger in last three years–primarily because I decided to spend more time face-to-face with clients, realizing that online chatter can supplement, but not replace, human interaction. Additionally, I was still recovering from the death of my father.

But I digress.

A certain San Diego short sale site has illegally borrowed Prudential Real Estate’s logo, uses a fictitious agent name (not licensed as a California real estate professional), a phony license number, an out-of state IDX home search, and a photo that is actually one of a famous Indian actress and, I believe, the former Miss India.  

This post is more a test than anything else–and if you are reading it on any site other than http://SanDiegoPreviews.com you can count on it being stolen and copyrighted material.

My next call will be to Prudential to advise them of their logo misuse, an email to Google, and likely an email to the broker at Solutions Real Estate, whose agent owns the offending site. Finally, I have paid for almost all photography used on our site, and to lift them is also a theft. That will additionally be reported to the photography vendor.  

Finally, a huge thanks to a wonderful group of techy Realtor friends on Facebook, who had the mystery solved within two hours.  The first call, though, came from Anila Whitney with Prospect Mortgage in Orange County. Thank you Anila!

Copyright 2012

Zillow Unzipped

I am angry…and tired of trying to explain to our San Diego listing clients how Zillow can be so far off in its valuations–and then having to educate buyers that Z’s information is faulted and frequently not much better than a carnival guestimate of age.

We currently have a listing at 347 Shore View Lane that is truly singular. It’s a single level Encinitas pool home that has a wide ocean view and is West of I-5 (a BIG deal in San Diego). Forget that this home has been remodeled, has a gourmet kitchen and sits on a huge level lot at end of quiet cul de sac.

Instead, try searching our San Diego MLS for a single level, ocean view, pool home under $1 million anywhere from Carlsbad down to La Jolla and you will find one: 347 Shore View Lane priced at $959,000.

So what does Zillow show? A Zestimate for over $100,000 less that fails to consider premier location, pool, ocean view or anything else that truly sets this home apart.  My discussion with sellers this evening? Whether to pull the listing from Zillow altogether.  Then, I will be contacting our other sellers and see if they wish to do the same.

I have a hunch we will be pulling our listings from Zillow altogether, not only because of faulty valuations but because the only way Z can survive is to sell ad space to agents who know nothing about my listings–and may not even know the neighborhood.

One thing needs to be clearly understood:

Zillow does not sell homes. Zillow sells advertising. 

Our decision to unzip from Zillow is not made in a vacuum. San Diego’s Jim Abbot with ARG Realty Group eloquently states the case for not only pulling out from Zillow, but Trulia and Realtor.com as well.

Phoenix writer and Realtor Jonathan Dalton also clearly states his intent–and determination to serve his Arizona clients.  And just this morning, Jim Lee, a well-known New Hampshire Realtor and a bulldog with issues, shared this on Facebook:

Received this missive from Zillow:
“Jim,
To ensure home buyers can contact you, we need to periodically verify that your email address is active. Our records show you have not verified your email address, and therefore, your contact information has been temporarily removed from parts of Zillow.”

Dear Zillow:
Thank you for your email. Could you make my removal permanent and while you’re at it please also remove all my listings from Zillow and don’t steal anymore of them in the future?

Thanks, your friend Jim

cc: Trulia, Realtor.com

My assessment?  Zillow is about to get….unzipped.

The survival and success of these “listing aggregators” depends upon integrity of their data. If agents and sellers start pulling their listings, the data they publish will be even more corrupted–and could come to resemble Swiss cheese. Not exactly a reliable place to search for homes–when more reliable sources are available. And fewer eyeballs = fewer advertising dollars from Realtors and others.

Is Wall Street listening?

–by Roberta Murphy

Bidding Wars for San Diego Homes

Our sellers are receiving multiple offers, and many buyers are surprised to learn that they are competing with other folks for the same homes.

It doesn’t matter whether the listing is a short sale, REO or lovely equity sale. If the home is fairly priced and in good showable condition, it is likely to sell far more quickly than it might have in the past few years.

Ever so slowly, news media are awakening to the fact that real estate is on the mend and the San Diego real estate market is the most lively we’ve seen in years.  Here are some recent articles we are forwarding to our prospective home buyers. Better to be prepared than blown out of the proverbial saddle!

Fewer Houses on Market Ignite Bidding Wars
Something Crazy is Happening in the Southern California Housing Market
Bidding Wars Reflect Housing Market’s Confused State

I just don’t know why the media isn’t headlining this issue week after week and coast to coast. The loss of this federal protection will certainly impact distressed homeowners in San Diego:

The Mortgage Forgiveness Debt Relief Act expires December 31, 2012

This means that homeowners who delay until after 2012 to complete short sales on their homes may be liable for income taxes on the “forgiven debt.”  This “forgiven debt tax” can also dog foreclosures and other types of loan workouts.

Unless this protection, enacted January 1, 2007, is extended unwitting homeowners could walk into a very expensive IRS trap. Here’s an example: 

The Parsons purchased a home in 2006 for $500,000 and using 80 percent financing, put down $100,000.

Today, their home San Diego home is worth only $250,000 and the Parsons need to sell. If that sale occurs after 2012, income taxes will be due on $150,000 in “forgiven debt” That would be the difference between the $400,000 mortgage and the $250,000 sales price. Now, if the Parsons used 100 percent financing as so many did during the bubble years, the “forgiven debt” would balloon to $250,000–and the taxes that go with that type of income

This is an over-simplified example, but we hope it illustrates the dilemma facing so many people who are already in financial hot water–and may not realize where they are heading.

This is a serious issue that our political representatives need to address IMMEDIATELY. But ultimately, the choices are our own. If you owe more than your home is worth and anticipate the need to sell, we would recommend doing to as soon as possible to avoid falling into that dreaded tax trap.

To discuss your options, please call Mike or Roberta Murphy at 877-818-8197 or 760-402-9101/9102.

For Sacramento Short Sales, Gena Riede, is the expert to call!

This home at 347 Shore View Lane has it all. With 4 bedrooms, 2 baths, this remodeled ranch style home has spectacular sit-down ocean views and is situated on a quiet cul de sac west of I-5 within walking distance of Encinitas beaches and restaurants.

It is an easy care home on on a quater-acre lot and offers deep granite surfaces in the kitchen, stainless gas range, beamed ceiling in spacious living area, fireplace, new doors and windows, and an additional unpermitted “hut” with loft bed and bathroom. The pool is solar-heated and offers a spa, tropical foliage and spectacular ocean views.

Priced in the high $900′s, this home is not only a bargain, but offers a world-class lifestyle and location.

For additional information, call Roberta, Mike or Scott Murphy at 877-818-8197 or 760-402-9102.

Foreclosures Ahead

REO’s and bank-owned homes are a “congested” area of the real estate market in San Diego–and bidding strategy is required.

Foreclosure and short sale listings in our coastal climes are coming to resemble e-Bay transactions. It’s so frustrating for a buyer to submit a bid, only to find out there are 12 other competing bids on the table. But don’t give up. Here are some of the things you can do to increase your chances for successful foreclosure (as well as short sale) bidding:

1. Prior to submitting an offer, we speak with the listing agent to “seek guidance” for our buyer’s offer–especially when we are in a competitive situation. It doesn’t always work, but when we know how other offers stack, we stand a much greater chance of winning the bid.

2. Be thoroughly pre-qualified with a direct lender and have that letter on hand to submit with your offer. If a cash offer, be prepared to show proof of funds that can be submitted with your offer. Feel free to black out account numbers.

3. Propose a fast closing date with no contingencies. Lenders like speed and certainty–at least from you. Lenders may or may not reciprocate.

4. Present a strong earnest money deposit. For example, we recommend at least $5,000. on almost any offer of substance. That deposit, if your offer is accepted, goes towards down payment and/or closing costs. Any excess would be refunded to you. A strong deposit indicates a strong buyer.

5. Finally, and most importantly, do not get emotionally involved with the transaction and the home until you know your offer is accepted.

Another thing we suggest–and when there are no other offers on the table–is to ask the listing agent to place the property as “pending” if you submit a reasonable or full price offer. It’s a long shot that occasionally works–and helps insure a successful transaction. No buyer feels secure with the prospect of overbids possibly trumping his or her offer. We have had this happen on a couple of occasions and watch listing status carefully.

We have found that foreclosures generally close more quickly, compared to short sales in the San Diego market. Lenders are also more demanding with foreclosures and will frequently insert hefty per diem charges into their counters for any delays that result from buyer’s side. We have a transaction now, where lender wants a 3-week closing and $100. per day for any delays beyond that time. Buyer will likely need an extra 15 days and will gladly pay the additional $1500. because the deal still makes a great deal of $en$e.

Good luck in finding your San Diego dream home, whether it’s a short sale, equity sale or foreclosure. Your timing could hardly be better with record low interest rates and healthy inventory levels.