The Lund Team Real Estate Blog » Opinion

Detached Single Family In Escondido

Brandon Soule — Tue, 06 Apr 2010 21:54:32 +0000

Spacious detached residence located in the Kent Ranch neighborhood at the north end of Escondido. Below ground pool and spa, hardwood flooring, upgraded kitchen with white tile counters and dark stained cabinetry, panoramic north facing views of mountains and canyon. Large master suite and bath with fireplace, dual sinks, soak tub, and private view deck.

1314 Ward Place Escondido, CA 92026

5 Bedroom, 4 Bath, and approx. 3,309 square feet

For pricing and more information contact The Lund Team:

REO@lundteam.com or call (760) 438-0800

Investment Opportunity In East County San Diego

Brandon Soule — Tue, 06 Apr 2010 21:51:12 +0000

This property was listed for sale at the end of last week and is ready for a new owner! Large townhome in the Santee area of San Diego County. Awesome investment opportunity for an investor or anyone looking for a steady income property. Private outdoor living area, two car attached garage, wonderful interior features, large kitchen, light and bright unit, very quiet location.

Awesome investment opportunity for an investor or anyone looking to purchase a steady income property:

11.8% monthly return for cash buyers
Approximately $500 – $700 per month cash flow for credit buyer with 30% down

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 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.

Carlsbad’s Aviara Hold’s its Value

Garrett Lund — Sun, 27 Dec 2009 03:03:21 +0000

We at The Lund Team, Inc have been involved with selling Aviara since its inception. And even as the Four Seasons sat uncompleted and the area was mostly unbuilt, we pushed a constant stream of positive arguments for the value of the area. Sandy and Carlton purchased in Mar Fiore in 1995. And this years sales numbers show that the value of Aviara has held up amidst one of the toughest real estate markets in decades.

And the results:
2005: Average sale price = $959,453 – 86 homes sold (detached) – at $355 per sq. ft.
2009: Average sale price = $810,952 – 69 homes sold (detached) – at $285 per sq. ft.

An Aviara home purchased in 2005 decreased roughly 15% in value off peak figures. There are a number of areas and neighborhoods locally that have lost between 40% and 50% off their peek selling price.

Sell and Rent Option: House owned fee and clear to $900,000 value.

Selling cost of $54,000: 5% selling cost with 1% title and escrow

$4,000 a month rental fees x 12 months = $48,000 a year x 4 years = $192,000

Total cost: $54,000 + $192,000 = $240,000

No Loan = $10,000 year in property taxes x 4 years: $40,000 (write-off of taxes from income maybe $8,000 to $10,000 in value). = $32,000.

Total cost: $32,000 + $148,000 in lost principle: $180,000

This does not account for other expenses of homeownership or what you could of invested your gain in. But hindsight is 20/20.

The rental option also has some non-monetary downfalls. First, there are very few higher-end rentals in the Aviara area. They are costly at upwards of $4,200 to $4,500 a month. What you pay in rent is non-deductable. And there is value to living where you want to live with the stability of your owning your own home.

But having the sales figures show the modest 15% decline is great to see on paper, what we see and feel everyday in the area.

We’ll take you to The Argyle restraunt in Aviara and tell you why Aviara is one of the best places to live in San Diego. Maybe the world.

Feature home for Sale: 1364 Corvidae Street , Carlsbad 92011 - http://www.firsthometour.com/10689.

Aviara - Home of Four Seasons