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.

The Great Recession has hit almost everyone everywhere, and charities that serve those stricken with poverty and hunger at the proverbial “Ground Zero of need” have been hit exceptionally hard.

San Diego has a number of charities serving the poorest, but one especially close to our hearts would have to be Brother Benno’s missions. It is they who provide showers, hearty breakfasts and showers for homeless children and their families. It is the volunteers for Brother Benno who provide hot meals for the elderly and disabled, provide shelter for women and children, and run recovery homes for sober living.

In prior years, Brother Benno Charities also provided rental assistance to needy families–but hard times and rising food costs have eliminated that aid.

How Can You Help?

Donations (including money) are urgently needed NOW and might come from any corner of your San Diego home. Have extra food in your pantry? Outgrown children’s clothing, toys, school supplies, diapers, cribs or linens? Also welcome are furniture, household items, cars–and even recyclables that might be sold to help raise cash for needed supplies.

And in case you are wondering how much goes to administrative overhead, the answer is “very little>” The organization is run largely by volunteers and the executive director draws a hefty $1 per year salary, while a small staff known as “servants of the poor” receive room and board and $300 per month salary. It’s an organization with lots of heart and one that runs on a very lean budget.

Over the years, we have donated two automobiles to Brother Benno and I have committed to go through pantry, closets and garage in search of goods that might help this wonderful charity. And if you would like to support Brother Bennos Center, they are located at 3260 Production Avenue in Oceanside, off Airport Road, while ltheir Thrift Shop is located at 3965 Mission Avenue in Oceanside, open from 10 a.m. to 4 p.m. Monday through Saturday. For additional information, call 760-439-1244 or visit www.brotherbenno.org

San Diego Short Sale

If so, you are not alone.

The percentage of short sale listings that we take in our practice now approaches 50 percent in our San Diego real estate practice. Without revealing names or addresses, rest assured it is a painful acceptance and process for the burdened homeowners, who have often exhausted savings, 401k’s and other assets in an attempt to keep house payments current on their over-mortgaged homes.

They are faced with one of two choices: Short sale or foreclosure.

More than a few times, I have shared their tears–as well as their relief, when the burden of debt has been lifted from shoulders and the path is cleared for new beginnings.

If you have fallen behind on your mortgage payments and aren’t sure what to do, just watch this brief video. You’ll discover whether or not a short sale for your San Diego home may be a solution for you–or not. If you would like additional information or would like to see if a short sale would be right for you, please give us a call at 877-818-8197 or email Mike@SanDiegoPreviews.com

In the meantime, the video below explains the process well:

San Diego Creative Financing

What is Creative Financing?

It’s been a long time since San Diego real estate investors have had so much inventory from which to choose. Inventory levels are high, interest rates are low and rents are rising throughout the area. It’s a depressed market and San Diego has become an investor’s dream-come-true.

Unfortunately, obtaining a conventional mortgage loan from a bank, credit union or savings and loan can be a difficult proposition. If the real estate buyer is self-employed, has a low FICO score and/or doesn’t have substantial liquid assets and verifiable employment, getting conventional or government financing may be very difficult. That makes it a tough market for both sellers and buyers.

The is hope, though, when sellers, buyers AND real estate agents understand the options and possibilities of creative financing, which refers to non-traditional means of real estate financing. This financing is generally used to purchase or finance a property with the home buyer or investor using as little of his or her money as possible. This is sometimes jokingly referred to as using OPM or “other people’s money.”

Types of Creative Financing

As the name implies, the possibilities and ways to finance real estate are almost limitless when it comes to creative financing. Below are four ways that the San Diego real estate investor might want to creatively finance a particular property.
Installment Sale: If property is owned free and clear, the owner might want to carry the mortgage or note and collect the interest–instead of that money going to the bank. For example, a seller might sell a home, pay income taxes on part of the gain and then stick the balance of the proceeds into a CD that pays 1 percent interest. Instead, the seller might carry the note at 5 percent interest and pay taxes on a lower amount as the money is received each month. This would also benefit the borrower, who might not be able to qualify for a conventional loan.
AITD or Wrap-Around Mortgage: An All-Inclusive-Trust-Deed or Wrap-Around mortgage occurs when the seller carries the note and “wraps” it around existing underlying financing, which remains in the seller’s name. This is one way the real estate seller can make money on OPM. For example, if the seller has an original mortgage in the amount of $100,000 at 4 percent interest with 14 years remaining on the note, he or she might sell the home for $300,000 with $30,000 or 10 percent down payment. He might then carry a note for 20 years in the amount of $270,000 at 6 percent interest. In that case, seller would make 2 percent interest on $100,000 for 14 years and 6 percent interest on the balance for the 20 years. At the end of 14 years, seller would receive 6 percent interest on the full balance.
Lease Option: With this form of financing, title to the property remains in the seller’s name and does not transfer to the buyer until a mutually-agreed upon event happens at a future date. That “event” might include, for example, the buyer obtaining financing to cash out the seller, at which time title would go into the buyer’s name. Option money is generally non-refundable, but may go towards eventual purchase money for the home.
Subject-To Financing: If a seller’s underlying financing will allow for the loan to be assumed, then a buyer might compensate the seller for his or her equity and then assume the underlying loan–or taking title to the home “subject to” existing financing. The seller might also agree to “carry the note” on a second or third trust deed or note. These loans are reportedly difficult to find in today’s market because most conventional loans are not assumable.

As a Certified Investor Agent Specialist (CIAS), I am constantly on the search for good investment real estate in San Diego County–and the timing has never been better. Inventory levels of homes, condos and units are bountiful and prices are the best they have been in years. Moreover, many sellers are starting to come around to the idea of owner financing, which can help solve the potential problems related to investment property financing.

Many of our clients are surprised to find that they can even use IRA and 401k funds to purchase real estate as long as the investment is a segregated one.

Interest rates are at historic lows and there are some amazing real estate bargains available in San Diego. More and more of our clients are investing their money in real estate, as they tire of the wild stock market swings and the dreadfully low rates being paid on savings and CD’s at the banks.

Want to know a bit more about real estate investment and how you can take advantage of current market conditions? Just view this short video below and find out how almost anyone can get started today with with careful research and (relatively) very little down!

Have questions? Feel free to contact me at either 877-818-8197 or 760-613-6190 Then just call or email (Scott@SanDiegoPreviews.com)for a FREE, no-opbligation consultation and to get a list of investment properties currently available in your area.