I get a lot of questions about real estate, but right now the number one question I am getting is what is going on with the market, I understand that it is a pretty hot sellers market?
Here is just how hot it is:
Out of 54 homes recorded on 3/14/13 as sold listings only 11 of them were sold for under asking… and I bet you ANYTHING that if I investigate why there will be reasons such as issues with the home that were discovered which required some negotiations, like section 1 damage from a pest report or perhaps roof repair issues that may have been discovered, etc.
Take a look at the closed data and see for yourself:
For an overview of the data in spreadsheet format CLICK HERE
For actual pictures of the homes CLICK HERE
Just got another very much appreciated review on Yelp by a wonderful couple that I had been working with for some time now. It is commentary like this that make all the long hours and hard work worth it for me!
What can I say about David that hasn’t been said before? Anyone who has ever worked with David will tell you, HE IS THE BEST! (that needs to be in bold with several underlines)
We started out with another agent, and being first time home buyers we didn’t know a lot about the process, however it didn’t take us long to figure out we weren’t in very good hands. Buying a home can be a long and often frustrating and occasionally discouraging process. If you expect to make it to the other end of this bumpy road with the occasional dark tunnel you need to have a realtor who you trust, someone who can shine light on the things you don’t understand and tell you when it’s time to take a detour. You need to be able to trust in your realtor to help you through what can be a very stressful process, if we didn’t fully trust David to take care of us we wouldn’t be the proud homeowners we are today!
We didn’t have the easiest budget to work with, we didn’t have the easiest loan to work with, we didn’t have the most convenient areas we were looking in and David never made us feel that we weren’t at the top of his priority list. The property we got into contract on was a headache from the very beginning, it wasn’t your typical sale, but David navigated us through until the very end calm and reassuring all the way! I could go on and on about how great David is to work with, but I’ll be honest it’s all been said before..we found David here on Yelp and the glowing reviews can’t begin to do him justice! He really is THE BEST! I will recommend him to my family and friends and anyone else who asks because I can’t imagine them going through this process with anyone else! Thanks again David!!!!
This was my first HUD purchase and it was quite the learning experience (overall very positive but a lot of difficult obstacles.) I really want to thank the listing agent that I worked with for being a consummate professional and very much appreciate his openness and willingness to be a resource for myself and my clients throughout the process working with HUD to get the property and close escrow. My clients had been working with one of the big named institutional lenders before they came to me, and we did end up having to scramble once the underwriter on their loan basically shut down the process. My lender stepped right in and got my buyers going without a hitch. While challenges were faced an overcome… I am at the end of the process just very thankful that we were able to get my buyers settled in a nice home that they can live in and raise their family.
Sorry for not being diligent about posting… it has been a while. I have more recent postings on my FB business page should anyone be curious (go there and “like” me!)
I wanted to give people an idea of what the current real estate market is like and one of the best ways to illustrate this is just by some data… you will find the link below, and I suggest that when you take a look at the individual properties that have sold (and this is just the closings from Friday 3/8/13) that you pay careful attention to the list price to actual sold price… for the most part there is a LOT of over bidding and people are pay way over the asking price. I have a lot of people who are diligently putting in offers and doing their very best with what they can afford, but with so much competition out there it is a real battle. Feel free to contact me about the factors facing the home buyer today, or even better… if you or anyone you know of is considering selling a home, I would love to help them with the process.
Call me or e-mail me for any questions you might have concerning the current real estate market!
Checkout Brian Stevens and Frank Garay’s video that share a bit of history about how the LIBOR rate was rigged leading to financial disaster.
Recently a relative of mine who purchased a “townhouse” a little while back with another realtor friend of his was asking me to find out why he was not able to get an FHA reverse mortgage due to owning a condominium… he thought he had purchased a “townhouse.”
I said I would look into it for him, but I explained to him that if the ownership type said that it was a condo, it could very well still be called a townhouse because that is very common. Often people think of townhouses as being units that have a number of stories and they think of condos as being one level where there could be a number of stories to the building. They assume with a townhouse you automatically own the land, while a condo you only own the physical space of the unit and not the land. This can understandably be confusing, so I thought I would dig up some info to help explain the differences between condominiums and what are known as “planned unit developments” or PUDs. I was taught to remember that the difference between a Planned Unit Development and a condominium development is, “With a PUD you get the mud!”
The following information was graciously provided to me by one of my favorite title company reps from Chicago Title and I hope it will help to clarify some of the intricacies of condo vs PUD ownership:
California’s builders, in an effort to combat the dual
problem of an increasing population and a declining
availability of prime land, are increasingly turning to
common interest developments (CIDs) as a means to
maximize land use and offer homebuyers convenient,
The two most common forms of common interest
developments in California are Condominiums and
Planned Developments, often referred to as PUDs. The
essential characteristics shared by these two forms of
Common ownership of private residential property;
Mandatory membership of all owners in an
association which controls use of the common property;
Governing documents which establish the procedures
for governing the association, the rules which the
owners must follow in the use of their individual lots or
units as well as the common properties; and A means by
which owners are assessed to finance the operation of
the association and maintenance of the common
properties. Before continuing further, it may be helpful
to clarify a common misconception about Condominiums
and PUDs. The terms Condominium and PUD
refer to types of interests in land, not to physical styles
of dwellings. Therefore, when homebuyers say that
they are buying a townhouse, that is not the same as
saying that they are buying a Condominium. When
homebuyers say that they are buying a unit in a PUD,
they are not necessarily buying a single-family detached
home. Though the townhouse is the most common style
of structure found in common interest developments
in California, a townhouse might legally be a
Condominium, a unit or lot in a Planned
Development, or a single-family detached residence.
The terms Condominium or PUD will say a great deal
about the ownership rights the buyer will receive in the
unit and the interest they will acquire in the common
properties or common areas of the development.
Common interest developments offer many
advantages to homebuyers-low maintenance and access
to attractive amenities-however, there are restrictions and
duties which come with ownership of a Condominium or
PUD that buyers should be aware of prior to purchase.
To acquaint you with various aspects of ownership in
common interest developments, the California Land
Title Association has answered some of the questions
most commonly asked about Condominiums and PUDs.
What are the basic differences between ownership
of a Condominium and ownership of a PUD?
The owner(s) of a unit within a typical Condominium
project owns 100% of the unit, as defined by a recorded
Condominium Plan. As well, they will own a fractional
or percentage interest in all common areas of the
The owner(s) of a lot within a PUD own the lot which has
been conveyed to them-as shown in the recorded Tract
Map or Parcel Map-and the structure and improvements
thereon. In addition, they receive rights and easements
to use in common areas owned by another-frequently
a homeowner’s association-of which the individual lot
owners are members.
The above are basic descriptions and should not be
considered legal definitions.
Besides ownership of my unit, what other
amenities (common areas) will I be acquiring use
of and how will I own them?
Common interest areas may span the spectrum from
the ordinary-buildings, roadways, walkways and utility
rooms-to the extravagant-equestrian trails and
golf courses-with more usual amenities including
community swimming pools and clubhouse facilities.
Your ownership rights in common areas will be spelled
out in your project’s Declaration of Covenants, Conditions
and Restrictions (CC and R’s). The subject of CC and R’s
will be expanded upon later in this brochure.
As we stated in the answer to the previous question,
Condominium owners own a fractional or percentage
interest in common with all other owners in the
Condominium project, in all common areas. PUD owners
receive rights and easements to use of common areas
through their membership in a homeowner’s association,
which typically owns and controls the common areas.
Some PUD projects, however, provide that the individual
homeowners will own a fractional interest in the common
areas. Again, in this case, a homeowner’s association will
have the right to regulate the use of the common areas
and to assess for purposes of maintaining the common
Check your CC and R’s and association Bylaws (basically,
rules governing the management of the development)
to insure that you understand your rights to use of your
unit and common areas.
What services will my homeowner’s assessments
help to finance?
Your homeowner’s assessments support not only the
easily recognizable-building and swimming pool upkeep,
landscape maintenance-but also the unseen-association
management and legal fees and association insurance.
As well, reserves must be factored into your
assessments, including reserves for replacement of such
items as roadways and walkways. In the case of Condominiums,
where ownership is usually limited to airspace
within the walls, floors and ceiling of the unit, reserves
will frequently fund replacement of such items as roofs
Each member of the homeowner’s association, upon
purchasing their unit, must receive a pro forma
operating budget from the association. Basically, this will
be a financial statement of the income and obligations of
the association, which must include an estimate of the
life of the obligations covered under the assessments and
how their replacement is being funded.
What happens if I fail to pay my homeowner’s
Delinquency fees will be added onto the unpaid assessments.
Should your delinquency continue, the association has
the right to place a lien upon your property. The lien may
lead to a foreclosure if the delinquency is not paid.
Of what importance are CC and R’s and Bylaws?
CC and R’s and Bylaws are the rules and regulations of
the community, meant to guide the use of individual
properties and common areas. Buyers should be aware
that CC and R’s and Bylaws may be written so as to
restrict not only property use, but also to restrict
owners’ lifestyles, for instance, spelling out hours during
which entertainment, such as parties, may be hosted.
CC and R’s and Bylaws are highly important and should
be thoroughly examined and understood prior to
purchase. They bind all owners and their successors to
the rules and regulations of the community. Failure to
follow those rules and regulations can be considered a
breach of contract. Legal action may be taken against the
homeowner for any such breach.
At what point in the real estate transaction will I
be allowed to review a copy of my CC and R’s and
Legally, it is the responsibility of the owner to
provide the prospective purchaser with the governing
documents of the development (CC and R’s and Bylaws),
the most recent financial statement of the homeowner’s
association and notice of any dues delinquent on the
The law states that these items should be delivered
as soon as practicable; however, the prospective
buyer should request to see them as early as
possible. If you do not fully understand what is
stated in these documents, consult a real property
Should I object to items included in the CC and
R’s and/or Bylaws, will I have the opportunity
to terminate those items prior to taking ownership?
No. The process required to terminate these restrictions
is often complex and costly. Termination of restrictions
will require, at least, a majority vote by members of the
homeowner’s association, and may require litigation.
What if I have further questions regarding
Condominium and PUD ownership?
Ask any questions you may have before you buy! Don’t
wait to take ownership to find out about restrictions
and regulations affecting your homeownership rights.
The questions and answers on this article are
provided to you by the CLTA and are intended to
provide a brief overview only. Should you have further
questions or seek more extensive information about
Condominium and PUD ownership, consult a real
property attorney or your licensed real estate agent or
I’ve been in several deals fairly recently that have had appraisal issues with values coming in much lower than they should have based on the neighborhood data, and comparable homes that supported a much higher price. In many areas we are seeing home values on the rise, yet appraisers not reflecting the change in their official opinions of value. I know first hand from speaking with several appraisers about their low valuations that when pressed for an answer, the answer is not satisfactory. In my opinion these appraisers are not willing to do their job and take into account a market place that has rising values if there are lower comparable homes that they can use. It is appalling, and in most cases costly for both buyers and sellers.
Renting vs Owning — a no brainer.
If you have a rental that costs you $1500 per month over 1 year you’ve just spent 18K. Multiply that by 7 years and you’ve spent 126K. That money is GONE. If instead you had a mortgage even if it was a higher amount than your rental, at say $2000 per month and you have to pay for taxes and insurance — with the tax benefits of home ownership (providing you didn’t buy in the last real estate bubble and pay 150K over the value of the home just to get it in the multiple offer arena) do you think you might be at least break even? Once we get back to a historic curve equity gain becomes more predictable, but the chances that you could be up by 126K over a 7 year period vs being down for sure seems to me like good incentive to start thinking about getting approved for a loan and makin’ a call to yours truly to go out and take a look at a few properties.
One question that comes up a lot is how does the foreclosure process work as far as the homeowner defaulting on their loan and the bank taking the property into their portfolio of REO’s (“Real Estate Owned”) — Here is a quick breakdown of how the process will proceed once the mortgage is in default after missing 3 or more payments:
Notice of Default is filed with the county recorder, along with a signed
Declaration (if required). This Declaration is to acknowledge that
appropriate steps to contact the borrower were made at least 30 days
prior to recording the Notice of Default.
Within 10 Business Days
Mail Notice of Default to borrower(s) at the property address and any
Notice of Default also sent to those who recorded a Request for
Notice (normally junior lienholders).
Within 1 Month
Mail Notice of Default to any parties that have a recorded interest in the property.
After 3 Months
Set Trustee Sale date.
25 Days Prior To The Trustee Sale Date
Send notification to the I.R.S (if applicable)
20 Days Prior To The Trustee Sale Date
Property is posted with a copy of the Notice of Sale.
Mail Notice of Sale to any parties that have a recorded interest in the property.
Resident/Occupant of the property is sent notification and property is posted
with “Danger/Warning Notice” in five languages, advising of the Notice of Sale.
Begin publication of Notice of Sale. Must be published in newspaper of general
circulation where property is located. Publication runs once a week for 3 consecutive
5 Business Days Prior To Sale Date
Expiration of the borrower’s right to reinstate the loan. The Beneficiary
can deny reinstatement and require payment in full to stop the foreclosure.
Public auction is held. The foreclosing lender generally opens the bidding for an
amount less than or equal to the outstanding debt. The property is sold to the
highest bidder, which will be the lender if there are no third party bidders.
Third party bidders must have certified or cashier’s checks up to the total
amount that are bidding. The trustee will require the total amount at the sale,
all cash (or equivalent).
Sales can be postponed by the Trustee or the lender for up to 365 days
from the original sale date.
(I want to thank Linda Moss from First American Title for clearly breaking down this timeline for me so that I could effectively share it.)