Orange County Housing Inventory is Creeping up – Fullerton Housing Too!

The push to get everyone in escrow by April 30^th to qualify for the federal tax credit has ended and it seems the mad rush is over.  So what’s been happening since?  People must want to know because everyone has been asking me!

Inventory is creeping up, that’s what’s happening!  Even though our interest rates are at historic lows, we are still seeing a little less buyer activity. The serious buyers are still out there but they expect a lot for their money.

If you’re a potential seller, don’t worry! Homes are still selling!  Buyers are savvy and though they aren’t receiving the federal tax incentive, the serious ones are out!  There are plenty of ways to ensure your home sells for the highest possible price.  If you would like any tips or hints, I am happy to help!

Check out what the Fullerton housing inventory has been doing for the past year.

Fullerton Inventory is Creeping Up

Fullerton Real Estate – No Bobby, The Appraiser is NOT the Devil…..

When I took a listing on in the highly sought after Downtown Fullerton area, I knew I had my work cut out for me. This lovely home on Jacaranda showed wonderfully and though we listed it right at Christmas time when most buyers typically stop shopping. We were able to get it sold right away with multiple offers.

The work wasn’t so much in the listing, but in getting the Appraiser to see the value too! I mean I had just sold a home for the highest price in quite some time in the neighborhood and now I had to make sure the apprasier agreed! 

The dreaded words….Appraisal!  I have heard appraisers referred to as “deal killers” for brining the value in too low.  Since the fall of the real estate market, it is tougher than ever for them! 

This is not the appraiser!

Sure, we listed on the high side.  I was confident we could get what we were asking for.  At our open house, the residents of this lovely Downtown Fullerton neighborhood all came by and echoed the same sentiment, “We hope you can get the value, it will be so good for the neighborhood”.   I must admit, I got nervous…for about a minute.

Lucky for me, I worked for a major lender years ago and had extensive appraisal training. I would work closely with what we called the Appraisal Review Department and learned exactly what they were looking for and how they wanted the value justified.  Trust me, I did not forget.

When the appraiser called about appraising the home, I made sure I made it as easy as possible for him.  Often times, Realtors just show up and unlock the door.  I guess that is one way to do it but by making sure they understand the upgrades, the neighborhood, how you came to the value, the offers….etc….you would be surprised at how much they appreciate the help and in UNDERSTANDING WHY THE VALUE IS THERE!

Appraisers have a tough job right now.  They have much stricter guidelines now and are held accountable for every little thing. Their job is stressful to say the least!   This was just reiterated by an appraiser that called me (because the home on Jacaranda has now closed and is showing as a comparable sale).  She was trying to justify the price on something else in the neighborhood and she was floored when she saw how much my home sold for.  We talked a long time about how hard it is for them right now.  Since I know every single home in the neighborhood, and what they all sold for, I was able to help her and explain how we were able to justify the sold price on our Jacaranda home.

Appraisers are not trying to be bad guys or deal killers. Sometimes they just need a little help in justifying the value. The least we can do is try to help! It is good for them…..and our sellers!

If you are interested in hearing more about values and appraisals or anything else relating to Fullerton real estate or real estate in North Orange County, please contact me.

Regular Sale – Short Sale – REO – Corporate Owned – What does it all mean to a Buyer?

Let’s face it; buying a home is the single largest investment that most people will make in their lifetime.  It is scary and overwhelming at times!  There are so many terms and types of listings!  Do you know what they all mean?  Make sure you have a good buyer’s agent that does!

According to my handy-dandy Eighth Edition Real Estate Dictionary, here are a few terms, their meaning and what they potentially mean to you; the buyer!

Regular or Equity Sale- (Ok, this one is not in my dictionary) but this is a traditional sale in that there is a seller that has some equity and it is his or her home to sell outright.  They may or may not have a loan to pay off and they are the decision maker!

This is my favorite type of sale! There is a real person that knows the history of the house and by law, must disclose what he or she knows about the property. You get a person to ask questions and the negotiations can be smoother.

Short Sale (Pre-Foreclosure)-A sale under which a lender allows a borrower to avoid foreclosure by selling the mortgaged property for an amount less than the the amount necessary to pay off the mortgage loan.

My Translation?  This could take a very long time!  From my experience the bank is not typically in a big hurry to lose their money.  If there is a good listing agent and a cooperative bank, there are some deals to be found here but it could take potentially two to eight months to get to the end.  Even then, the bank sometimes says, “no”.  Be ready for just about anything when dealing with a short sale! For more in depth short sale info; click here:  So What’s All This Talk About Short Sales?

RE0 (Real Estate Owned) – This most commonly refers to a property owned by a lender from foreclosure.

This is where many think the deals are to be had and sometimes they are!  However, buyer beware!  Most banks sell their homes “as is”.  They are exempt from many disclosures that protect buyers so it is really important to have a good agent representing you and a great inspector!  You really want to make sure you know what you are getting into!

Corporate Owned – (No entry in my dictionary for this one either) but we are seeing more and more of these.  Corporate owned typically means investor owned.  An investor (or group of) may have purchased the property from the bank or at a foreclosure sale.  Often times they will fix it up and sell it for a profit.  This is very similar to a bank owned property and is often times sold as is.

IMPORTANT NOTE- This type of property may NOT qualify for an FHA loan so it is important to find out how long the corporation has owned the property. FHA has a minimum time requirement that a corporation must have owned the home.

Some other things to remember:

• Always get an inspection!  Some people think that since it is “as is” and the bank won’t pay for repairs, they shouldn’t bother.  This makes it more important than ever!  Don’t you want to know what you are getting into?
• Have a Realtor that can negotiate for you! There are so many things that can come up (especially at inspection) and you want to make sure you have proper representation.
• Have fun!  Buying a house may be overwhelming but it is also so exciting! 

There is nothing more rewarding to me than helping someone find their very first home and helping to make home ownership a reality!  If you have questions or are thinking about dipping your toe in the market, please call or shoot me an email. I would appreciate the opportunity to earn your business!

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Cristal Drake – Realtor (R)…At Your Service for all your Fullerton area real estate needs!   Re/Max North Orange County – 714-423-7525.  I am not an attorney and all information here is my opinion. Copyright 2008 all rights reserved. 

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Are You Sitting On The Fence? Fullerton Buyers, Sit No Longer!

Interest rates are down!  What does this mean to you?  It means that you can buy more house or it could be that you are finally able to get off the fence and become a homeowner!

Home prices are down too!  Many first time home buyers that that thought they “missed the boat” a few years back are finding that they are back in the game!  Some thought the dream of home ownership would not become a reality.  It is becoming real now.

Not sure where to start?  Start at the beginning….and here you are!  If you are reading this article then you are in the right place.  You need a Realtor that can explain the process step by step and make sure you are taken care of an protected every step of the way; someone who understands that taking the step towards home ownership can be scary and overwhelming.

If you think you might be ready to see what is involved with becoming a home owner, give me a call or shoot me an email. We can just have a conversation and see if you are ready to take the next step.  No pressure. I am sure you have lots of questions and my job is to get you the answers.

When you talk to a Realtor (R) that understands the market and has your best interest at heart, you would be surprised about some of the options available to you:

• $7500 first time home buyer tax credit
• Possible seller assistance with costs
• Holidays are a great time to shop – less competition from other buyers

Check out some of my other articles to get to know me little better and then give me a call…I would appreciate the opportunity to be of service and to earn your business.  

My Buyer Became My Friend

Are You Trying to Time the Market?

My Buyer Became my Friend. I Just Love it When That Happens!

Are You Trying To Time The Market to Buy at the Bottom or Sell at the Top?

People are always asking me if it is a good time to buy or sell.  My answer is usually, “Well, do you need a place to live or do you need to move?”

Crystal Ball

I have a lot of buyers that are really nervous about buying for fear the market may go down.  I also have sellers that are afraid to sell because they are hoping it will come back up.

Guess what?  Both may happen.  Real Estate is a cycle that will always come up and go down.  We had a huge upswing in years past and now are in the downturn. 

So what is a buyer to do?  Well, you have a lot of options right now.  One thing it is really tough to do is to find a home for your family AND buy at the very bottom of the market.  Many buyers tell me that they want to be at the very bottom.  My name may be Cristal but unfortunately; I have no crystal ball. One thing I can tell you is that starter properties are now affordable and often times I am seeing buyers get into one for right around what they are paying in rent!

It is really tough to know where the bottom is and it is very likely that you will not even know we have hit it until the prices start creeping back up and the inventory starts to diminish.   Then the race is on!

So, here are my questions to you as a buyer:

• How much are you paying for rent?
• Where is all the money going?
• Do you like the home you are in now?
• Do you need to move?
• Are you looking long term?
• Will it matter in 10 years when you are 1/3 of the way through your mortgage?

These are just some of the things to think about.  Regardless if you buy now or later, you may miss the bottom.  Why not start putting some of what you are paying on rent towards paying off a home of your own?

And Sellers?  There are lots of people buying now if the home is priced to sell and shows well.  People are selling in this market for a variety of reasons and if you would like to know more about how this may (or may not) benefit you; I would love to answer any questions you may have.  It is all about what your needs are and what works best for you.

Cristal Drake – Fullerton Area Realtor – Re/Max North Orange County – 714-423-7525