Real Estate Trends in Alamo, CA: 2012 Year in Review

This blog caters primarily to people interested in Real Estate Trends throughout the areas I've lived in and continue to service; Walnut Creek, Brentwood, Oakley, and Alamo, California.  However, most of the information posted on this site really applies to all markets.  If you have any questions that the content inspires, please drop me a line.  I'm happy to reply in a timely manner.  If you'd like more specific information about real property in your area, please don't hesitate to ask...

...That's why I'm here.

  

Real Estate Trends in Alamo, CA 

2012 Year In Review

The table below simply illustrates the List Price (LP) and Sale Price (SP) High, Low, Average, and Median for the time spanning 1/1/12 through 12/31/12.  There were 243 homes sold in Alamo in 2012.

Compared to 2011 (below) there were only 165 homes sold, with a median home price roughly 10% lower than in 2012.

Days on Market and Sales Price vs List Price

The blue line graph below illustrates the Sale Price vs List Price ratio.  For example, if a home was listed for $2m and sold for $2.1m, the ratio would be 105%.  You'll see that in Alamo, the asking price has been higher than the selling price, on average, leaving the ratio below 100%.  Simply put, on average, homes in Alamo are listed higher than the market will support.

The yellow bars indicate the Average Cumulative Days on the Market.  Keep in mind that in an smaller, more intimate market such as Alamo, one or two sellers holding out for the perfect buyer can skew these results by quite a bit.  

Comprehensive Real Estate Market Data for Alamo, CA 2012

The table below is a truly comprehensive view of important data as it relates to the Real Estate Market in Alamo, CA.  Note: Decreasing number of homes "For Sale" and the correlation between Days On Market and Median Price.

As stated in the header, if there's more specific information that you'd like to see, up to and including a complete Comparative Market Analysis for your own property, please drop me an e-mail or give me a call. There are several ways to reach me immediately below.

As always, I'll leave you with a little taste of wisdom:

“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”

~ Albert Einstein

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

You've lassoed your bank! Now don't get stuck with the "bull!"

 Short Sale Strategies for Sellers and their Agents

Getting your short sale approved is irrelevant...

...if it doesn't close!

The seller found a buyer! The buyer found a seller!  We're in contract!  

Fantastic! Just make sure that you don't leave yourself with a bunch of bull in the process!

Walking into Starbucks or _______________ (fill in the blank) I continually hear "My house got foreclosed on! I thought the short sale was going to go through, but it didn't!"

After processing short-sales for several years I've seen quite a bit!  Have I seen it all?  Nope! Nobody has, but these tips will not only help sellers get their homes sold, but from the other side will help buyers write offers strong enough that even with a soft listing agent you'll have an excellent chance of holding the keys to your new home at the end of it all!

Here are a few common situations that buyers, sellers, and their agents unnecessarily encounter far too often:

• Our buyer had written several offers and 'forgot' to tell us that they bought another house two weeks ago.
• When our short sale got approved, the buyers no longer wanted the property.  When we re-listed it, it was too close to the trustee sale date to get it closed.
• I think my real estate agent wasn't giving all my updated information to the bank in a timely manner.
• We got approval from both lenders, but when the buyer did his inspections a few things turned up that he wasn't willing to fix, and I certainly couldn't afford to fix it! (or it was an FHA buyer who wasn't able to make necessary repairs to close) so it foreclosed.
• The first loan said yes but the 2nd lender wanted too much to close.  The second just wouldn't cooperate.
• ...and on and on.

PLEASE, I implore you...
if you're going to write an offer on a short sale OR your are listing your home as a short sale...use an expert!

So let's get to the punch!  How can you best avoid having your short sale...fall short?

1. SELLER - Make your initial submission of your short sale packet P E R F E C T ! ! ! ! It will show the negotiator or single point of contact that you and your agent are ON IT!  These folks are people too, and making their lives easier will in turn make yours easier too!
2. SELLER - Keep in contact with your lender(s). If you KNOW that your Realtor is phenomenally successful at the short sale process, good for you!  You've got a real pro who cares and will follow through, good for you!  If you aren't   absolutely certain, advocate for yourselves. Keep in direct contact with your lender.  You may find that the bank is waiting for documentation that your agent never even asked you for.  I call all lenders...on all short sale listings...every Tuesday and Friday morning.  I do this regardless of how 'dialed in' the negotiator is.  It's happened more than several times where my single point of contact, "um...yea...she doesn't work here anymore!"  You want to know this NOW, not a month down the road.
3. SELLER - After your property has an offer that you agree to, list the property as "Pending, show for backup offers" not "Pending Subject to Lender Approval."  It's smart to keep at least one strong backup offer in the bull pen; two would be better.  As you get close to estimated close of escrow, make sure that your backup buyer is still interested.  If not...get another backup 'warmed up'. This eliminates a time gap in the event that your first buyer backs out.  
4. SELLER & BUYER - Make contingency periods start the day that the offer is accepted by the seller rather than approved by the lender. As a seller, you know your buyer is vested.  Does the buyer want it?  Then inspect it, or don't...but release all contingencies within 17 days of contract date. If your buyer isn't willing to do this, in this market, get a new buyer who is. As a buyer, the bank and your seller sees that you're willing to 'ride it out'.  Why wait until two weeks before your auction date to start inspections. Show them that you're the right buyer during the offer process and you'll have a higher likelihood of having your offer accepted.
5. SELLER & BUYER - Deposit earnest money deposit into escrow within 3 days of accepting the offer. This again shows both sides, and the bank that you're all vested in getting this closed. 
6. SELLER & BUYER - Make sure that your property is listed for sale "As Is."  Unless you have a unique circumstance, you're not going to want to make repairs on a house with which you stand to net $0 at close. As a buyer, don't expect your offer to be accepted with the expectation that concerns discovered upon inspection are going to be remedied by the seller.  Write it up "AS IS" even if the seller isn't asking you to.  Do your inspections.  If you don't want to continue after inspections, that's your safety net. Use it!
7. SELLER - If your short sale is fully approved, make sure to follow up with the buyer's agent regularly that the loan process is going as planned.  You don't want to find out that your buyer thought it would be funding in time but the lender (all of whom seem to be grossly understaffed at this point) dropped the ball and now you're facing foreclosure.
8. SELLER  - BUYER - Don't hesitate to contact me to discuss a possible short sale or if you are upside down or having other financial difficulties  Click here if you have any questions.

Updated market trends to come...

As always, I'll leave you with a little taste of wisdom:

“Trust is the glue of life. It's the most essential ingredient in effective communication. It's the foundational principle that holds all relationships.” 

― Stephen R. Covey

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Short Sale 101: BTW...What is a short sale anyway?

When you're up to your elbows in jargon, idioms, and the practical vocabulary of any specific industry, you can forget the fact that not everyone on earth knows what you're talking about.  So here's a bit of an introduction to short sales for those of you who are (rightly so) confused about the terms and ideas you may hear around the water cooler.

What is a short sale?
A short sale is a sale of real property (typically your house) from which proceeds are less than the balance of debts secured by liens (your mortgage or mortgages) against the property. If the property owner cannot (or isn't willing to) afford to completely repay the liens, and the lien holder(s) agrees to release it's lien on the property and accept less than the amount owed on the note, you have an approved short sale.

If it was that simple, they'd all be done and gone.  The short sale process is certainly not that simple...nor that easy. Although short sales have been part of the real estate industry forever, they can be quite complicated.  Today's real estate market, still heavily weighted with short sales, demands a much, MUCH higher level of expertise than in the past.  It is your agent's job to keep you informed, advised, and most of all protected.  If you don't think you're receiving that level of service...fire them!

I've seen many, many homes that should have closed as a short sale (or short pay transaction) not get approved, ultimately resulting in the foreclosure of the listed property.  There are far too many people I've bumped into over the last few months who've obviously had their short-sales mishandled. This failure to close  and subsequent foreclosure is often accompanied by buckets full of heart-ache and resentment by all parties involved.   After your deal is botched is NOT the time to start asking questions.  That's why I'm here.  Click here to e-mail me a questions directly.

• What is a short sale
• Banks -vs- Investors
• Why do banks take so long to approve the seemingly misnamed "Short Sale?"

First let me start out by reiterating very crudely and simply that a short sale is when a property is sold at a price that leaves the seller "short" on funds to close.  Example: The seller's mortgage balance is $655,000 but the home's current market value is $415,000.  There's a $240,000 deficiency which makes this a short sale; a sale short of the balance of the debt.

Secondly, let's clear up the difference between a "Bank" and an "Investor".  B of A, Chase, Citi, Wells Fargo.or J.P. What's his name...(whatever name they've slapped on the front of your branch at the local strip mall)...may or may not be the investor behind your mortgage(s).  These enormous multinational corporations 'service" the loan for the investors.  Who are the investors?  You've got a better chance of having a dinner on Beale St. with the Elvis than ever learning who the investors are.  OH...but if you did...your debt would probably be sold to another 'investor' before you got approval for the servicing bank anyway.  It's best to just drop it.  Do what the servicing bank says, do it now, and do it right the first time.  The bank will, in turn, smile and move things along smoothly.

Lastly, a short sale is a complete misnomer.  They are typically not short.  That said, I've have them approved in as few as 8 days, and as long as several months.  The length of time it takes for approval depends on many things including the competency and speed of the following:

• The listing agent
• Possible third party negotiators
• The servicing banks' document collectors
• Your single point of contact at each bank
• The time it takes for internal approval
• The time it takes for final review and a decision by the investors
• Possible counter offers
• Changes on HUD statements from Title
• and on and on and on.

These are just a few thoughts that will help you get up to speed with the terms and complex nature of the short sale process.  With all of this in mind, remember this: Getting your short sale approved is completely irrelevant if you can't get it to close!

Tips and Strategies for getting your short sale to close will follow this post.

As always, I'll leave you with a little taste of wisdom:

“You will get all you want in life, if you help enough other people get what they want.”

~ Zig Ziglar RIP

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

California Homeowners Bill of Rights: A small victory for the underdog!

Happier New Year to come?

Kamala Harris, our State's Attorney General really does seem to be fighting against the monster banks on behalf of the citizens of California!

The Homeowner Bill of Rights builds upon and extends reforms first negotiated in the recent national mortgage settlement between 49 states and leading lenders. Attorney General Harris secured up to $18 billion for California homeowners in that agreement, and has also built a Mortgage Fraud Strike Force to investigate crime and fraud associated with mortgages and foreclosures.

“The California Homeowner Bill of Rights will give struggling homeowners a fighting shot to keep their home,” said Attorney General Harris. “This legislation will make the mortgage and foreclosure process more fair and transparent, which will benefit homeowners, their community, and the housing market as a whole.”

The Homeowner Bill of Rights goes into effect on January 1, 2013.

More than one million California homes were lost to foreclosure between 2008 and 2011—with an additional 700,000 currently in the foreclosure pipeline. 

• Seven of the nation’s 10 hardest-hit cities by foreclosure rate in 2011 were in California.

The California Homeowner Bill of Rights marks the third step in Attorney General Harris’ response to the state’s foreclosure and mortgage crisis. 

1. The first step was to create the Mortgage Fraud Strike Force, which has been investigating and prosecuting misconduct at all stages of the mortgage process. 
2. The second step was to extract a commitment from the nation’s five largest banks of an estimated $18 billion for California borrowers. The settlementcontained thoughtful reforms but are only applicable for three years, and only to loans serviced by the settling banks.
3. The California Bill of Rights

Two key bills of the Homeowner Bill of Rights contain significant mortgage and foreclosure reforms. The major provisions of AB 278 (Eng/Feuer/Mitchell) and SB 900 (Leno/Corbett/DeSaulnier/Evans) include:

·                     Dual track foreclosure ban: Benefit ~ Mortgage servicers will be required to render a decision on a loan modification application before advancing the foreclosure process by filing a notice of default or notice of sale, or by conducting a trustee’s sale. The foreclosure process is essentially paused upon the completion of a loan modification application for the duration of the lender’s review of that application.

·                     Single point of contact: Benefit ~ Mortgage servicers will be required to designate a “single point of contact” for borrowers who are potentially eligible for a federal or proprietary loan modification application. The single point of contact is an individual or team with knowledge of the borrower’s status and foreclosure prevention alternatives, access to decision makers, and the responsibility to coordinate the flow of documentation between borrower and mortgage servicer.

·                     Enforceability: Borrowers will have authority to seek redress of “material” violations of the California Homeowner Bill of Rights. Injunctive relief will be available prior to a foreclosure sale and recovery of damages will be available following a sale.

·                     Verification of documents: The recording and filing of multiple unverified documents will be subject to a civil penalty of up to $7,500 per loan in an action brought by a civil prosecutor. Enforcement will also be allowed under a violator’s licensing statute by the Department of Corporations, Department of Real Estate or Department of Financial Institution.

The content of this blog was pulled 

directly from the Office of the Attorney General 

website which is a fantastic resource.

As always, I'll leave you with this taste of wisdom:

"Any intelligent fool can make this bigger, more complex, and more violent. It takes a touch of genius, and a lot of courage to move in the opposite direction."

~ Albert Einstein

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Only 34 active homes for sale in Oakley! + Listings for East County Properties and Beyond

If you're doing a little 'window shopping' for a home in Oakley, Brentwood, Discovery Bay, or beyond...

...why not start here!

Fetured Property - 70 Vella Circle, Oakley, CA

Offered at $249,900, this 'traditional' sale won't burden you with drama from big banks, negotiators, or short-sale delays.  Simply make an offer, and we'll give you our respectful a realistic response in a timely fashion.

This 4 bedroom property was built in 2006 and shows little to no wear.  At 1908 sq. ft., you'll enjoy the benefit of fantastically large family and living areas without the fantastically large utility bills that often accompany the many homes of today.

Click here to see the complete listing:
Click here with any Real Esate related questions, to schedule a showing, or to discuss the details of a potential offer:

Now for a little browsing ; )

Below are links to homes currently on the market in the areas I most frequently service:

Homes in Oakley
Homes in Brentwood
Homes in Discovery Bay
Homes in Alamo
Homes in Walnut Creek

As always, I'll leave you with this taste of wisdom:

“The best way to predict the future is to create it.”
–Dr. Forrest C. Shaklee

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

WAIT!!! "Back Up" to go forward?: How to get your offers accepted!

Are your offers still being rejected?

Submitting a backup offer

 is far more effective that most buyers and agents think.  

It's certainly easier than "backing up" a trailer full of rhinos!

First, for those interested, here are active real estate listings (as of noon on Voting Day! 11.6.12) in the four areas I service most often:

Real EstateListings in Brentwood, CA

Real EstateListings in Walnut Creek, CA

Real EstateListings in Alamo, CA

Real EstateListings in Oakley, CA

These listings INCLUDE properties listed as “Pending, Show For Backup Offers”.  Including these “PSLA” listings increases your likelihood of having an offer accepted as many, many Realtors don’t bother to write ‘back-up offers’.  Fewer agents writing back-ups = less competition. That means more happy buyers for me! 

Do back up offers actually work?  If you’ve read my previous posts, you know that there’s no crystal ball.  With that in mind, backup offers are only awarded a contract…IF YOU WRITE THEM!  So I do!  Even if the listing agent isn’t ‘accepting’ backup offers, push for it anyway.  There are hundreds and hundreds of investors writing a dozen offers each week hoping to get themselves a couple of strong income properties.  Yes, unethically, many of the agents for these buyer's agents don’t disclose that they’re writing offers on more than one property.  So when one or two of the offers are accepted and actually close escrow, the other deals that are in escrow “Fall Out”  of escrow. Typically the listing agent frantically lists the property as “Back On Market”!  If your offer had been in place, in back-up position, then you would be in escrow.  Does it happen?  Let’s see…

Properties listed as "BOM" in the areas I service: Click Here to see 7 homes listed as Back On Market including a phenomenal $1,000,000 listing at 3885 Arbolado Drive, Walnut Creek; nestled between Mt. Diablo and the Boundary Oak Golf Course. 

Additional tips to help get your real estate offer accepted:

• Do your best to truly understand the seller's motivation.
• Demonstrate to the seller that you are not just willing, but able to close
• Offer the right price
• Offer your maximum down payment
• Offer to close quickly
• Put your money into escrow prior to approval on a short-sale offer
•  Limit Contingencies
• Offer a Significant Earnest Money Deposit
•  Write a personal letter.
•  Hand deliver your offer to the listing agent
•  Accommodate the sellers Close of Escrow Period
• If you don't NEED closing costs covered, don't ask
•  Submit an as-is addendum
• Ask if you can submit a back-up
• NEVER count out negotiation with a builder

As always, I'll leave you with this taste of wisdom:

" Be the change that you wish to see in the world."

 ― Mahatma Gandhi

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

We're buying what we can, rather than what we need, and it's gonna cost us again!

What is the cost of peace? 

 

Ask a Buddhist monk. There is no price.  

It appears, regardless of how much digging I do, that the real estate market is truly recovering.  At this point in the time, many of us have 'learned our lesson' having overextended ourselves. We've paid the price, financially as well as emotionally. In fact, we didn't just buy our dream home...we had encumbered our peace.  So what now?  

Right now, tens of thousands of people throughout the US are ready and eager to re-enter the real estate market.  So, buyers talk to lenders, determine how much they can afford, then start shopping for their new home.  Lenders are looking at, among other things, the buyers "ratio".   

Debt to income ratio is just that; a ratio or percentage of income that will go toward debt after a mortgage loan is funded.  For example, a buyer's income is $5,000 per month.  If, including the new mortgage payment, the buyers monthly debt is $2,500 the 'ratio' is 50%.  Personally, I have a 'magic number' that gives me peace.  That number is a number that is much, much lower than most others. I'm suggesting an alternate point of view.  Don't buy what you can afford! Buy what you need, and with that...your peace of mind.

Various mortgage programs, interest rates, etc. are determined in part by this ratio.  So what?  What does this have to do with peace, needs, and wants?  Just this: Lenders approve loan applications to a limit at which they feel comfortable that a client will be able to repay the debt.  There is one world in that sentence that doesn't really jump out, but it really needs to, and that is limit.  So buyers start looking for a home at or near their limit!  They then determine which home, at or near their economic threshold, would be best.  In my eyes, that process or sequence is backward.  Let's try something new:

1. Talk, listen, think, and determine what features you need in a home.  
2. Differentiate what you need from what you want or would 'like to have'.  
3. WRITE IT DOWN! It's simple: Must Have vs. May Have. Writing helps to distill your thoughts. 
4. Get with a lender that you trust. Learn what you qualify for. Set your budget. Stick to it.
5. Go buy your home. 

You may discover that by sticking with what you need...you can move into the neighborhood that you love.

You may discover that by sticking with what you need...you can afford to have your spouse work less.

You may discover that by sticking with what you need...you can afford...your home!

Just because you CAN buy at a certain price point; just because you CAN afford a particular monthly payment doesn't mean that you should.  In my list of needs vs. wants, peace and security are at the top. After that, I start thinkin' about bedrooms, bathrooms, and living space.

I'll leave you with these little tastes of wisdom:

“It is the preoccupation with possessions, more than anything else that prevents us from living freely and nobly.” 

― Bertrand Russell

“Normal is getting dressed in clothes that you buy for work and driving through traffic in a car that you are still paying for - in order to get to the job you need to pay for the clothes and the car, and the house you leave vacant all day so you can afford to live in it.” 

― Ellen Goodman

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.