The Lund Team Real Estate Blog

Just Listed – $143,900 – Bank Owned Deal!!

Garrett Lund — Thu, 04 Feb 2010 20:10:36 +0000

Great Room

Wow… 209 Westlake Drive #2, 92069 – Westlake Ranch

If you are looking for a deal here you go. This will hit the MLS later today.

2 bed/ 2.5 bath, travertine, granite, wood cabinets, private patio, townhome, end unit, super clean and ready to go. Close to Cal State San Marcos.

Call Lund Team ASAP at 760.438.0800 or email reo@lundteam.com

Just Listed In Carlsbad

Brandon Soule — Tue, 02 Feb 2010 23:57:17 +0000

Received this home to sell on behalf of the bank about a month ago, now the home is listed on the MLS and ready for showings!

$30K OFF!!! The same model unit was just sold in the 4th quarter of 2009 for $365,000. Several other comparable units have recently sold within the past six months fro well above the asking price of this home. Large townhome in a great location, close to La Costa Resort and Spa, freeway access and beaches, good neighborhood and Carlsbad Schools!

2569 Navarra Drive #C, Carlsbad, CA, 92009

2 Bedroom, 2.5 Bath, and approx. 1,545 sq. ft. Listed at $335,000

Contact The Lund Team at (760) 438-8000 or REO@LundTeam.com

What’s going on in Bressi Ranch of Carlsbad…?

Garrett Lund — Mon, 25 Jan 2010 18:56:45 +0000

Sales. Currently only 2 active properties for sale in Bressi Ranch. Over 8 properties pending sale or contingent upon sale and 16 closed sales in the past 6 months. Stats based on Sandicor MLS data.

*Update – HOA fees are set to drop from $225.00 monthly to $191.00 on February 1st, 2010. ;)

With such low inventory, we expect prices to begin gradually increasing. Simple supply and demand for one of Carlsbad’s more desirable areas. With the recent completion of the Bressi Shopping Center, the upcoming Boys and Girls Club, numerous restaurants, Carlsbad schools and new Carlsbad park - all within walking distance.

** We have an upcoming property for sale – on Garden House Road – Street of the models across from Bressi community park and pool area. ** It is a 4+ bedroom home with an OVERSIZED yard!

Please email Garrett@lundteam.com or call 760.438.0800 for a sneak peek before this one hits the market.

: Bressi Ranch of Carlsbad

Home Sales Decline in December? Bad Stats

Tyson Lund — Mon, 25 Jan 2010 17:52:41 +0000

Here is an example of biased stat making not painting the whole picture.

———–

WASHINGTON (MarketWatch) – Sales of U.S. existing homes plunged 16.7% in December to a seasonally adjusted annual rate of 5.45 million from 6.54 million in November as a popular tax credit was set to expire, a national real estate trade group estimated Monday. The 16.7% percentage decline from November to December was the largest on record, the National Association of Realtors reported. The decline was larger than the 11% drop to 5.80 million that was expected by economists surveyed by MarketWatch. Sales in December were up 15% compared with December 2008. The median sales price rose to $178,300 in December, up 1.5% compared with a year earlier. It’s the first year-over-year increase in prices since August 2007. Link To Article

——–

You know this bias play on Stats. But why pick the ‘Decline’ stat? These are positive numbers. Here’s what I read of the sales drop in December.

- True lack of available property unlike any year previous. Less homes = fewer sales. Fewer homes than ‘economists expected’ – but UP 15% over same time period in 2008.

In most areas of the country, home sales decline in December. Banks, lenders and appraisers have almost 1/3 less time in the month to get the homes processed and closed. North County home sales have declined as much as 30% – even in the go-go years of 2002-2004. I would like to see year on year comparison for the past decade of the same time period.

And I would like to see the sales figures put up against # of homes for sale. If the ‘months of inventory’ nationally is similar to North County figures of 2-3 months…then low sales figures is a function of lack of available inventory. The headline would suggest a decline in sales; which infers less demand and a softening market.

The headline could read

“Home Sales up 15% – Prices push higher”

“Home Values Inch higher: Sales up 15% over 2008″

A sales decline is more relevant when sellable inventory is above 12 months; or a changing pace is leading that direction. Price declines can be expected when property competes.

Just a thought. Tyson Lund

Little to buy as market stages a comeback

Tyson Lund — Fri, 15 Jan 2010 20:11:02 +0000

“Real estate has always been about supply and demand. When there is no supply, there is no resistance to rates. When there is supply, there is resistance to rates.” Samuel Zell, billionaire real estate investor, Interview with Greg Miles – Bloomberg Television August 21st, 2008.

And Zell followed in the interview to predict a turnaround in the broader real estate market : “I think the direction of the real estate market will change in the first part of next year (2009)”. (video below)

His contrarian prediction has since proven true.

And Zell’s larger macro-concept of restricted supply articulates clearly the current real estate market in Carlsbad. A restricted supply of Carlsbad housing halted the downward trend in pricing in 2009. In 2008, Carlsbad had 12+ months of sellable homes. Buyers had a number of choices and were demanding steep discounts off already lower prices. But as fewer homes came onto the market in 2009. Sellable inventory shrank to 2.5 months of supply. Buyers would search for months and find the same few “dog” or undesirable properties. More desirable homes in the $800’s and under had multiple parties willing to bid near full asking price to be the winning bid. In mid-2009, the ‘bid’ to ‘asking-price’ went from a 96% average in 2008 to 99%.

The final three months of the 2009 Carlsbad real estate saw an increase in sales and lower market time when compared to the previous year. Over 206 homes went under contract and/or sold from October to December. A 36% increase in sales when compared to the same period in 2008. The average time to sell a home decreased from near 90 days down close to 60 days. And even as buying activity is comparatively stronger than the previous year, prices have stayed relatively flat. Conservative appraisals are keeping housing appreciation low and steady. Buyers should not feel pressured to buy because of low rates or tax credits. Buyers should take their time and focus on the area they want to live and find a home that fits all of their needs.

But if you are waiting for prices to decrease further, it could be a long wait.

Housing bears are hoping for a double dip in housing prices. This is predicated on the sudden release of large amounts of “shadow inventory” from banks and a sharp increase in mortgage rates. Banks have shown that, although they do have an unknown number of homes sitting vacant and unsold, their intent is not to flood the market with their own property and compete with themselves. And mortgage rates will rise when federal stimulus ends and the government withdraws from the secondary mortgage market. But as of January 15^th 2010, the Federal Reserve plans continued stimulus until the broader economy shows clear signs of sustainability and recovery. And with recovery comes confidence and income. And according to Zell, since inventory is expected to remain restricted, buyers will reluctantly pay the higher cost associated with increased mortgage rates.

The Best of Portico at Rancho Carrillo – Bank Owned.

Garrett Lund — Tue, 12 Jan 2010 23:14:09 +0000

Just completed CFK’s!! Not yet on the MLS but coming online soon. Model-like interior with stunning views to the ocean. Large patio yard with open space on the north side.

3 bedroom, 2.5 bathroom and approx. 1,538 sq. ft. – Price likely in the low $400s. We are excited to see!

Call today to join interest list and to schedule a private tour at reo@lundteam.com

Stunning Views To Pacific Ocean

Gourmet Kitchen

Front of 6426 Terraza Portico

The Luxuary Foreclosure Market

Brandon Soule — Fri, 08 Jan 2010 00:59:28 +0000

Most often bank-owned properties being sold are thought to be all rundown homes in the less desirable areas of the county listed at prices usually no more than a few hundred thousand dollars and often even under $100k. Buyers look for and want to buy bank-owned properties because they think they will get amazing deals and a lot of the time buyers do get the good deals they are looking for. Sometimes these buyers can save anywhere from fifteen to forty percent off previous sale prices occurring during the height of the market in 2004 and 2005. However, there is a large unrecognized market with limited availability where buyers can still make the same 20% savings, but applied to a much larger amount. Borrowers who own large homes close to and well over the $1,000,000 mark are defaulting on their loans, leading banks to list the property as Real Estate Owned (REO’s). As of today January 7, 2010, in the County of San Diego, there are 8,442 homes listed for sale with only 779 as REO’s, 9.2% of the total market. Out of every listed REO in San Diego, 88% of the inventory is listed below $500,000 and 97% under $1,000,000.

The remaining 3% of the bank owned inventory goes to high-end homes in the most desirable areas of the county such as La Jolla and Rancho Santa Fe. The highest priced REO home at 18117 Aliso Canyon is located in Rancho Santa Fe and listed for $5,495,000. One property at 18787 Heritage Drive in Poway is currently on the market for $2,595,000. This same home was sold less than one year ago on 7/2/09 for $3,400,000, equaling a total savings of $805,000 or 23.7% from the July purchase price. In the Bay Collection (community in the Aviara area) of Carlsbad two properties have recently closed near the 1,000,000 mark. 7089 Marsh Wren Street (5 bedroom, 4.5 baths, 3484 square foot home) sold for $1,551,000 in 2005. The next time this property was sold on 6/26/09 as a bank owned foreclosure the price would be $976,000, a 37% savings. Also, in the Aviara area, 1372 Corvidae Street sold for $785,000, other like properties listed as regular sales are priced at $1,029,000 and $1,150,000. Buyers purchasing bank-owned properties can get amazing deals and it needs not to be forgotten that these same deals are also widely available in the luxury home market.

Best Bank Owned Deal in Mira Mesa “The Villas of New Salem”…

Garrett Lund — Tue, 29 Dec 2009 20:09:28 +0000

Just got the list price last night. Already one cash offer in hand. Another reason to keep an eye on the blog constantly as these deals move quickly. 2 bed/2 bath in a very nice community with low $180 per month HOA fees. Single level. Bank in process of adding new stove, carpet cleaning and full interior paint.

List at $169,900 – great rental or owner unit. Call us ASAP at 760.438.0800 or email reo@lundteam.com as this will not last long. Thanks.

The Villas at New Salem - REO

FHA Buyer’s 6 Month Seach Ends with Smiles

Jennifer Lund — Mon, 28 Dec 2009 20:06:02 +0000

Being a first time home buyer in today’s market has it’s pros. You can take advantage of both FHA financing (only requires you to put 3.5% down) and the $8,000 first time home buyer tax credit.

However, if you have been looking then you know finding and securing a property can be extremely frustrating. Not only is inventory low in North County, but many sellers are turning down higher FHA offers and accepting inferior all cash or conventional financing offers.

Also, FHA financing requires the property to be in good condition. This rules out foreclosures that have been stripped or properties with any missing appliances. Investors are also purchasing low priced homes in poor condition and then fixing them up and putting them back on the market. This is commonly known as “flipping” a property.

These properties are also not options for FHA buyers because FHA financing requires that the property not have transferred ownership within the last 90 days. This is known as the FHA anti-90 day flip rule. All these factors combined make for a frustrating first time home buyer market.

Buyers stick with it because there is light at the end of the tunnel if you have an experienced agent who is on top of the new inventory.

Above is a picture of my very happy clients. They spent 6 months looking for their perfect first home. They had made two previous offers on other properties, but lost out to competing all cash offers. In their search they learned a lot about the different areas they were interested in and decided that for a little bit more money a month they could get a lot more house. It was a learning process and in the end they secured a wonderful detached home in Shadowridge, Vista. They couldn’t be more excited with the end result and the night after escrow closed they got engaged in their new home!

So, if you are a first time home buyer experiencing some heart ache, don’t give up! As long as you have good representation and a little patience you too will find your home sweet home in time to take advantage of the tax credit and today’s great financing opportunities.

The Pros and Cons of Purchsing a Foreclosure

Jeff Pashby — Mon, 28 Dec 2009 00:40:09 +0000

I was amazed to discover that the “down market” started almost four years ago. We closed our first REO in June 2006. It was a small cottage on a large lot in Vista. We worked with Countrywide (remember them?) and sold it in record time. Not because it was a good deal per say, but because it was a foreclosure.

There is some weird perceived value with foreclosures. Throw “bank owned” up on any sign and people swarm. It could be overpriced, dilapidated, or both, but Buyers gravitate toward these REO’s like bees to honey. Foreclosures can be purchased below market, yes, true, but more often than not Buyers pay close to (or above) what recent comps indicate the value to be.

Pros to purchasing a foreclosure:
The property can be purchased below market. This is especially true on properties that must be sold to cash Buyers due to condition.
You are dealing with an entity (bank) that is in the market to lend money, not own real estate. The bank is motivated to move the property quickly.
The bank usually responds to offers within 3-5 business days. No wait game like short sales.

Cons to purchasing a foreclosure:
What you get is what you see. Most REO’s transfer in AS-IS condition. This means no repairs and no termite.
Limited disclosures. The former owner/occupant is long gone so the limited disclosures provided are completed by agents and/or asset managers. Banks are exempt from many of the statutory disclosures. This makes thorough home inspection critical.
Multiple offers and bidding wars.
Accelerated due-diligence period. Most banks want the Buyer to conduct their inspections within 10 days after Acceptance, not the standard 17 days. There is usually less time provided to secure loan approval as well.