Filing a Form to Reduce Your Property Taxes is FREE!!

August 31, 2009
I received a notice that looked official and allegedly came from the Property Tax Review Board. Based on several phone calls that I received from friends and former clients, this mailing was quite widespread. Just as it caught my attention, it caught the attention of the folks who called me. Apparently a number of folks also contacted the San Bernardino County Assessor's office as the Sunday morning Sun newspaper had a brief notice on the front page of the Business Section warning residents of "unscrupulous companies."
The mailing that I received suggested that I could save $546 in property taxes and they would file the appropriate forms for a fee of $189. Putting aside the fact that I could file for a reassessment from the San Bernardino County Assessor's office for absolutely no charge, the property referenced in the letter is presently assessed below its present market value as we have owned it 32 years.
If you think the your property might be eligible for a lower assessed value, you could call your professional real estate agent and request a market analysis. You might even try http://www.realestateabc.com/ for an estimated value.
For straight from the government information go to http://www.sbcounty.gov/ and the home page has a great description of the reassessment process.
The scammers are always out there and I must admit the notice that they sent truly looked official.

Starlab and Moon Party

August 28, 2009

Saturday the public is invited to observe the waxing gibbious moon at a Moon Party hosted by the San Bernardino County Museum and the San Bernardino Valley Amateur Astronomers.

Most every month the amateur astronomers bring their telescopes to the parking lot of the museum, set them up and assist visitors in looking through their telescopes to observe the skies. This Saturday it is anticipated that the craters of the moon will be easily visible. A bonus according to Chris Clarke who has been coordinating the museum's moon and planet parties, will be the planet Jupiter which will be rising in the southeast. Viewers should be able to see Jupiter's four Galilean moons. This free event will begin at 8 p.m.

Throughout the day the museum will be featuring the inflatable planetarium, Starlab, that people can crawl into and gaze at the night sky. Starlab programs will begin at 11 a.m. and continue until 3:30 p.m. with timed Starlab passes available at the museum's front desk beginning at 10 a.m. The Starlab shows run for about a half hour.

Museum admission is from $4-$8. For more information you can call 909-307-2669 or on the web, http://www.sbcountymuseum.org/

Property Taxes - The Annual Public Notice of Delinquencies

August 27, 2009

This morning in the San Bernardino Sun newspaper, there is a section D which contains 21 pages of properties in San Bernardino County that have property taxes that were declared to be defaulted as of 12:01 a.m., July 1, 2008. The declaration of default was due to non-payment of the total amount due for the taxes, assessments and other charges levied in the fiscal year 2007 that were a lien on the real property. You can search the list by Assessor's Parcel Number (APN) to see if you have taxes owning. You may have and actually should have received a notice of delinquency. We have discovered that new homeowners throw away this notice in the belief that all taxes were prorated and paid through the escrow at the time of the sale. This belief is true for current taxes, but not for supplemental taxes that may be levied after the sale. Word to the wise: Don't ignore notices, check them out immediately. The penalties for non-payment are substantial and continue to accrue until payment is made.

If taxes are unpaid after December 10, a 10% penalty is charged on the first installment. If the delinquency continues after April 10 another 10% is charged on the second installment along with a $10 cost fee.. If the taxes remain unpaid after June 30, they are charged an 18% interest (1.5% per month) and a flat $15 redemption fee.

If taxes remain unpaid for a five year period, the property will be subject to a sale at public auction.

While the print in the newspapers is small and difficult to read, the defaulted parcel numbers are there along with the amount owed. Check it out.

It's Hard to Know the Reality of Today's Real Estate Market

August 26, 2009

This morning I was listening to Bloomberg News and they were interviewing a number of experts regarding the just released real estate data. New home sales were reported up for the month of July, prices were up (I'm not certain whether they were referring to median or average prices.), and the interviewers wanted the interviewees to comment on what this data means to the overall housing market.

One says: "Housing seems to have bottomed out."

Another says: This may be a temporary change."

Another says: "Until the glut of homes on the market is absorbed, housing will continue to be depressed."

Another refers to the backlog of foreclosed properties that could flood the market with low priced homes thereby depressing prices once more.

Etcetera; etcetera; etcetera;

It is extremely difficult to know where reality lies.

Housing markets are generally local phenomenons. One area may be seeing rising prices; another may not. I try to post the data for the 14 communities in Riverside and San Bernardino counties that I have been tracking for 2 years and hope that the data is reflective of the trends occurring in the housing market in those communities.

There was a full page ad in the Wall Street Journal this morning that had nothing directly to do with the housing market, but it spoke to may belief about the current real estate market :

"OPPORTUNITIES PURE AND SIMPLE"

Bank Owned Properties

August 25, 2009

A significant segment of the properties presently being offered for sale are owned by banks. These properties are often the source of extreme frustration for buyers as they often have offers as soon as they show up on the multiple listing service (MLS) - often not just one offer but many offers. Perhaps a look at how these properties are being processed by the banks will ease a bit of the frustration, not eliminate it, but ease it.

1. A bank is not attached to the properties that it takes title to through the foreclosure process. They have developed their systems for selling, that are basically unemotional and somewhat rigid.

2. An employee of the bank usually having the title of "asset manager" is assigned the property.

3. The asset manager has a contract with a real estate company/agent who does a "broker price opinion" (BPO) as to the fair market of the property.

4. Once the fair market value is established, the asset manager places the listing with the real estate agent who puts the property into the MLS.

5. Offers are presented through the listing agent to the asset manager. (Very often the asset manager will not look at any offers until the property has been on the MLS for at least 5 days.)

6. Usually in the form the bank has developed, the offer that is selected is "countered" with a reiteration of the terms and conditions for the banks acceptance; short escrow, short time for inspections, per diems if not closed on the date set, no repairs, etc.

Since both the real estate agent and the asset manager maybe handling a large number of properties, frustration arises when they are difficult to reach and when they are adamant that there is no flexibility once the contract has been agreed to. (They really do not need to be flexible as there seems to always be another buyer waiting in the wings.)

Buying a bank-owned property requires patience and the help of an agent who can assist with a BPO for the buyer to determine a fair price to offer that will be competitive in this very competitive market place.

What's Driving Real Estate Sales?

August 24, 2009

Last week I did a quick survey of the Century 21 Lois Lauer Real Estate agents to find out into which of the following categories our buyers fit.

1. First Time Home Buyers

2. Move-up Buyers

3. Down-sizing Buyers

4. Investors

5. Transferees

6. Already Own- Not Selling

The survey confirmed what my sense of this real estate market. Low home prices, $8,000 tax credit for first time home buyers, low interest rates have indeed stimulated the desire to become a homeowner rather than a renter.

Here are the results of this non-scientific survey.

51% of our buyers were first timers.

21.5% were investors.

13 % were move-up buyers

7.7% already were homeowners and were not selling their present homes.

4.4% were transferees

1.5% were homeowners that were downsizing.

In all 85% were buyers because they found that this real estate market offered real opportunities.

The Wild West Comes to Big Bear

August 21, 2009

The 10th annual Big Bear Cowboy Gathering kicked off Thursday evening with a "Ranch Dinner" and music and campfire tales. Tonight, there will be a performance of poetry and music with entertain errs Belinda and Curly, Nancy Lee, Les Buffham, and Gary Allegretto. Just check out the PAC (Performing Arts Center. Also wander around and check out the vendors.

Saturday, John Wayne will be wandering around. Not really, but a look-alike impersonator will give you pause to wonder if folks do really return from the dead. Harmonica workshops, rough riders, gun slingers, all the trappings of a true cowboy gathering. In the evening dinner is available for purchase and there will be more shows.

Sunday morning get up all, have some grub and attend the Cowboy Church service. During the day there will be a screening of the John Wayne movie "The Shootout".

This is a unique event and more information can be obtained from http://www.bigbearcowboygathering.net/

How Our Senses Might Influence Our Choice of a Home

August 20, 2009

The three senses that usually come into play in the home finding process are sight, smell and hearing.

Sight is an obvious factor since a buyer nowadays looks on the Internet at all the beautiful pictures posted by the real estate agent on the various web sites that feature homes for sale.

Homes are selected or rejected by buyers based on what is seen in these pictures. Once a selection is made and a buyer contacts a real estate agent to show the homes. The look of the neighborhood (sight) (maybe hearing), curb appeal (sight), condition (sight). All this viewing will influence whether to keep the property on the possible purchase list or reject it.

Smell will become an impact as the buyer walks through the home. There is nothing like pet smells or even some cooking smells that create a negative impression and cause a buyer to reject the property. It has been a long time tactic to create pleasant smells by baking a loaf of bread, a cake or cookies. Often homeowners are so used to the ambient smells that they are totally unaware of their impact on a potential buyer.

Sounds can also make an impression. In staging a home it has sometimes been recommended that soft music be playing. Soft is the important word. The viewing buyer should not be distracted with unnecessary noises - TVs playing, dogs barking, etc. The sounds caused by exterior factors that cannot be controlled (the neighbors barking dog or loud stereo) are important and can also be factors in a decision to consider a property or to reject a property.

As a seller, you might drive up to your home, park in the street, shut off your engine and note your sensory impressions. You can bet that a potential buyer will be doing just that.

When is a "Short Sale Offer" Accepted?

August 19, 2009
Short sales have indeed been a bug-a-boo in this real estate market. Due to the high prices that homes were commanding 3 to 5 years ago and due to the availability of 100% financing, many homeowners have found themselves with loans greater than the present value of their homes. For personal reasons and sometimes to sell to avoid a foreclosure, sellers have offered their properties for sale at prices less than the amount owed to their lender. This creates a need for the lender to agree to accept less than the full debt owed in order that a property can be sold.
Thus a property is offered for sale at $350,000, but the mortgage is $400,000. The seller accepts an offer contingent on approval of the lender to take a lesser amount to satisfy the debt.
Lenders have been incredibly slow to respond even though the short sale process has been in play for at least 2 years. Often from the time the seller "accepts" the offer from a buyer until the lender "accepts" or "declines" the short pay-off can be 3 to 6 months. During this time, the buyer has an accepted offer since the seller has accepted it and the seller is still the owner of record. However, there is an outstanding contingency. Not that the buyer obtain financing, but rather that the seller obtain approval of the short pay-off.
Many multiple listing services require that the pending sale be reported either in the pending category or in a back-up category. Any other offers the the seller might receive would be in a back-up position since the seller is already under contract to a buyer. Complicated, isn't it?
The federal government has recently added an element to its "Making Homes Affordable Program" that is designed for "a quick private sale or voluntary transfer of property..."The expectation is that the new procedures will permit sellers, buyers and lenders to complete the sale of underwater homes in a more timely manner so that when a buyer's offer to purchase is accepted by the seller, the contingency on loan pay-off reduction will be removed in a timely manner.

Is the Upper End of the Real Estate Market Recovering?

August 18, 2009

As the data-wonk that I am, I have begun to track in the IMRMLS the real estate transactions in the over $400,000 category. This is a segment of the market that has been impacted by lender's tightening of qualifying standards, and by the conforming loan limit of $417,000 in our region. To obtain a "jumbo" loan a buyer needed to be willing to accept interest rates that were at least 1 percentage point higher than conforming rates, sometimes 2% higher and sometimes no loans at all were being offered by lenders.

Here are some numbers that reflect this segments stagnation.

Closed in the month of July 2009

Banning Beaumont........over $400,000/1 out of 137..From these numbers it is clear that......Listed over $400,000/30 out of 535

Bloomington...................over $400,000/0 out of 44..........Listed over $400,000/4 out of 78

Colton..............................over $400,000/0 out of 69..........Listed over $400,000/9 out of 127

Fontana..........................over $400,000/4 out of 400........Listed over $400,000/21 out of 515

Grand Terrace..............over $400,000/0 out of 10...........Listed over $400,000/0 out of 18

Highland........................over $400,000/3 out of 87............Listed over $400,000/16 out of 182

Loma Linda...................over $400,000/2 out of 22...........Listed over $400,000/11 out of 58

Mentone........................over $400,000/0 out of 13...........Listed over $400,000/3 out of 24

Moreno Valley..............over $400,000/0 out of 409.........Listed over $400,000/9 out of 592

Redlands........................over $400,000/8 out of 61............Listed over $400,000/89 out of 224

Rialto..............................over $400,000/0 out of 168.........Listed over $400,000/1 out of 260

Riverside.......................over $400,000/40 out of 512.......Listed over $400,000/207 out of 1079

San Bernardino............over $400,000/0 out of 366.........Listed over $400,000/21 out of 829

Yucaipa/Calimesa.......over $400,000/3 out of 55............Listed over $400,000/70 out of 233



With so few transactions taking place in this segment of the real estate market, appraisals also become a challenge as the comparable sales are very scarce. It will be interesting to watch these numbers to see if an upward trend is occurring.

Median Prices for July 2009

August 17, 2009



Of the 14 communities that I have been tracking, 7 have median prices that are less than the median in 2002 and 6 still have medians that are greater than 2002. The price tracking from 2002 to 2009 forms a wonderful bell curve. If only we could have predicted!



Banning/Beaumont.......2009/175,000.....2008/235,000......2007/320,000.....2006/325,000


.........................................2005/325,000.....2004/235,000.....2003/147,000.....2002/130,000


Bloomington...................2009/127,500.....2008/190,000.....2007/385,000......2006/370,000


.........................................2005/309,000.....2004/270,000.....2003/170,000.....2002/138,000


Colton..............................2009/91,800.......2008/194,000......2007/265,900.....2006/336,000


.........................................2005/314,000.....2004/225,000.....2003/170,000.....2002/119,500


Fontana..........................2009/180,000.....2008/275,000.....2007/414,000.....2006/420,000


.........................................2005/399,500.....2004/315,000.....2003/212.000.....2002/168,000


Grand Terrace..............2009/200,000.....2008/275,000.....2007/348,000.....2006/366,000


........................................2005/342,000.....2004/292,000.....2003/249,900.....2002/169,900


Highland........................2009/138,000.....2008/280,000.....2007/336,000.....2006/392,000


........................................2005/346,000.....2004/272,000.....2003/207,000.....2002/166,500


Loma Linda...................2009/231,000.....2009/308,000.....2007/388,000.....2006/495,000


........................................2005/397,000.....2004/315,000.....2003/225,000.....2002/165,000


Mentone........................2009/139,000.....2008/189,000.....2007/345,000.....2006/385,000


........................................2005/245,000.....2004/298,500.....2003/238,000.....2002/183,500


Moreno Valley..............2009/140,000.....2008/198,000.....2007/347,000.....2006/390,000


........................................2005/340,000.....2004/275,000.....2003/190,000.....2002/152,000


Redlands........................2009/219,900.....2008/284,000.....2007/420,000.....2006/428,000


........................................2005/362,000.....2004/335,000.....2003/370,000.....2002/195,000


Rialto..............................2009/130,000.....2008/190,000.....2007/360,000.....2006/391,000


........................................2005/340,000.....2004/279,000.....2003/190,000.....2002/150,000


Riverside.......................2009/175,000.....2008/255,000.....2007/400,000.....2006/430,000


........................................2005/400,000.....2004/330,000.....2003/230,000.....2002/186,000


San Bernardino............2009/73,000........2008/150,000.....2007/299,000.....2006/313,000


.......................................2005/275,000......2004/212,000.....2003/142,500......2002/115,000


Yucaipa/Calimesa.......2009/210,000......2008/260,000.....2007/355,000.....2006/395,000


.......................................2005/360,000.....2004/314,000.....2003/216,000......2002/167,000

The Third Annual Dragon Boat Races

August 14, 2009

This is a treat you don't want to miss. Saturday and Sunday, August 15 and 16, Lake Gregory Regional Park in Crestline will be alive with the rhythmic sounds of dragon boat drummers setting the cadence for their crews.

Dragon boats are 40 foot long canoe-like boats with a green dragon's head on the bow and a spiked tail on the stern. Saturday's races are crewed by amateurs and Sunday's are crewed by professionals.

The Awakening of the Dragon begins the novice races at 12:30 p.m. on Saturday. The drumbeats bring the dragon to "life" and the ceremonial "painting of the eyes" will begin the festivities. A weapons presentation by Shozen Martial Arts will be presented as part of the opening ceremony.

This is a great opportunity to highlight a different cultural experience in San Bernardino county. Proceeds will go to the San Bernardino County Regional Parks.

If you would like to participate in the races on Saturday, registration is $5 per person. Participants must be 8 years of age or older and be physically fit.

Park entrance fee is $3 per person. If you are a professional dragon boat crew person, the registration is $200 per boat with a maximum crew of 20.

In the beautiful scenery of the San Bernardino mountains, these exciting races offer an escape from the valley heat and will transport you to another time and another culture.

The Crepe Myrtle Trees are Brilliant This Year !

August 13, 2009

I am always amazed by the wonderful summer flowering trees that enhance our Inland Empire landscape. This year the crepe myrtle trees seem to be more loaded with blossoms than in the past. It may be that my memory is faulty, but take a look and see these glorious trees.

Speaking of Home Mainenance....

August 12, 2009



One of the most used loans in today's real estate environment is the standard FHA insured loan. With a 3.5% down payment, a buyer can obtain financing up to a jumbo FHA of $500,000. Since the majority of our transactions in the Inland Empire fall in the FHA price range, we are seeing more FHA financing than in the past 5 years.



In the past, sellers did not relish a buyer using FHA financing because of the requirement of the seller to make repairs that would not have been necessary for conventional financing. My sense of it is this is no longer the stumbling block that it once was since every buyer will have a physical inspection and will request many of the repairs that are required by FHA. True, the seller can refuse to do these repairs for a conventional buyer, but will have to do them for an FHA buyer to obtain the loan.



Here is a list of the most frequent repairs required by FHA.



Broken windows must be replaced.



Large holes in the drywall will have to be repaired.



If a furnace, wall heater, etc is not in proper working order, it will have to be repaired or perhaps, replaced.



Gas leaks must be fixed.



The property must have a working hot water heater.



The property must have toilets, sinks, tubs or showers and the plumbing must be functional.



Exposed electrical wiring must be in conduits or behind dry wall.



Chipping and peeling paint must be scraped and a coat of paint applied.



Exterior doors must be present and functional.



If the property has security bars on the windows, these bars must have a quick release mechanism.



As mentioned in yesterday's post, the appraiser will look at the roof for signs of leaking and for signs of deterioration.



Any foundation or structural problems must be corrected. A common foundation problem that can be seen in our older (70 years or more) homes is the rock foundation. A house with a rock foundation is probably not a candidate for FHA financing.

Now is a Great Time to Check Your Roof

August 11, 1009



You may not think that the heat of the summer is the best time to check out your roof, but waiting for the rainy season (and someday we will have one) is clearly not the time to discover that your roof needs attention.



Roofing companies have time now to perform an inspection and make appropriate maintenance recommendations. If you have a tile roof, it is important that the tiles remain in place and that cracked tiles are either sealed or replaced.



If you have a composition roof, often the ridge lines are damaged by our hot sun and may need replacing.



If you have a "rock" roof, or what is know as a tar and gravel roof, you need to check to see whether the roofing felt is exposed. The gravel is a protective covering and when the gravel shifts or comes off in a heavy rain, this roofing felt is exposed and can disintegrate when exposed directly to the weather - hot sun in particular.



Good roof maintenance can be a true money saver as the maintenance can prevent leaks and damage to the interior of a home.



Roofs are easy to ignore, but expensive to replace. A roofer will probably do an inspection for under $100 and right now you may find that an appointment is easily obtained.

Closed Transaction July 2002 - 2009 Reported in the IMRMLS

August 10, 2009

With the exceptions of Grand Terrace, Redlands and Yucaipa/Calimesa, the number of closed transactions for the month of July 2009 is greater than any month of July from 2002 to 2009.

It is great to see the volume of sales increasing in the 14 communities that I follow. The lowest July volume in most communities was 2007.

Here are the numbers.

Banning/Beaumont.......2009/137......2008/115......2007/56.......2006/84......2005/105

.........................................2004/100......2003/67.......2002/75

Bloomington...................2009/44........2008/23........2007/13.......2006/20......2005/23

.........................................2004/37........2003/26........2002/15

Colton..............................2009/69........2008/38........2007/15.......2006/64......2005/51

.........................................2004/44........2003/36........2002/53

Grand Terrace...............2009/10........2008/12........2007/2.........2006/7.........2005/14

.........................................2004/8..........2003/9..........2002/16

Highland.........................2009/87........2008/68........2007/30.......2006/46.......2005/70

.........................................2004/59........2003/53........2002/51

Loma Linda....................2009/22........2008/13........2007/16.......2006/20.......2005/11

.........................................2004/16........2003/11.........2002/10

Mentone.........................2009/13........2008/7...........2007/4.........2006/5.........2005/12

.........................................2004/6..........2003/7...........2002/8

Moreno Valley...............2009/409......2008/386......2007/84......2006/226.....2005/289

.........................................2004/301......2003/261......2002/293

Redlands.........................2009/61........2008/55........2007/45.......2006/69.......2005/72

.........................................2004/95........2003/89........2002/82

Rialto...............................2009/168......2008/116......2007/38.......2006/83.......2005/122

.........................................2004/119......2003/117.......2002/117

Riverside........................2009/512......2008/426......2007/180.....2006/376....2005/458

.........................................2004/426......2003/414......2002/449

San Bernardino..............2009/366......2008/242......2007/96.......2006/203....2005/218

.........................................2004/220......2003/259......2002/274

Yucaipa/Calimesa.........2009/55.........2008/40........2007/36.......2006/61......2005/71

.........................................2004/66........2003/73.........2002/69

Antique Appraisals, Little League Tournament and Festival Theatre

August 7, 2009

Today the Little League Majors returns to San Bernardino. Last year the the Little League West and Northwest regional tournament attracted 70,000 spectators. This year even more are expected. The tournament opens today and ends on August 16. The Alaska team arrived Monday night and teams are expected from as far as Hawaii and Montana. The tournament is held at Al Houghton Stadium, 6707 Little League Drive in San Bernardino. Admission is free. Games start at 9:30 a.m. and continue throughout the day with the final game today at 8 p.m., tomorrow at 7:30 p.m. and so on. you can get additional info at http://www.eteamz.com/

On Saturday, August 8 from 10 a.m. to 4:445 p.m., Precious Times Antique Mall and Nursery Gardens is hosting an Appraisal Faire. The cost is $5 per item with all proceeds going to the Redlands Family Service Association. Precious Times is located at 1740 Redlands Blvd. in Redlands. http://www.pantiques.com/

Continuing throughout the month of August, the Redlands Theatre Festival will be presenting plays at the Prospect Park venue. Go to http://www.rtfseason.org/ for a schedule of the shows.

Solar Energy is a "Hot Spot" in Today's Economic Scene

August 6, 2009

There was a big headline in Sunday's Los Angeles Times that stated "You Can Go Solar Without Going Broke". It was a very informative article. If you would like to read it in full you can find it on http://www.latimes.com/. The reporter was Maria Dickerson.

The rebates available for homeowners installing solar power have been widely publicised. There are both State of California and Federal rebates available. For customers of the state's three large investor owned utilities, rebates started at $2.50, but these rebates shrink each year and by the time the rebate program ends in 2016 they are expected to be only 20 cents per watt . This is meant to be an incentive to go solar now rather than at some future date. The big rebate comes from the Federal government and is approximately 30% of the cost of the system after the state rebate has been deducted. Still, these systems are pretty pricey, $20,000-$30,000.

It was interesting to note that the number of residential solar applications are up with the month of June being a record month for applications.

There are now companies who will install a residential system and lease it back to the homeowner. Up front costs for a leased system are said to be minimal and there is no maintenance expense since the leasing company is responsible to keep the system in good working order. However, the lease is lengthy, typically from 15 to 20 years.

There is also a bill approved by the state legislature last year that grants California cities and counties the ability to offer low-interest loans to residents, who then repay them through assessments that appear on their property tax bills. So far, in our area, only Palm Desert has set up the program.

It seems that homeowners are investing in their homes even in this depressed real estate environment.

The Inland Empire is Still Citrus Producing

August 5, 2009

A small news item in the San Bernardino Sun newspaper this morning caught my attention. Dateline: " Riverside: University creates new citrus variety". The University of California (UCR), Riverside campus have releases a new mandarin or tangerine, for commercial production.

While many of our Riverside/San Bernardino county citrus groves have disappeared and become residential or commercial developments, UCR has continued to be a worldwide leader in citrus research and development. Most citrus producing regions of the world have benefited from the existence of the UCR and California Citrus Variety Collection. This collection has two trees each of more than 1000 different citrus types. This collection is used extensively to solve citrus disease problems and to improve commercial varieties.

In 1907, UC established the Citrus Experiment Station at the foot of MT. Rubidoux to support the then growing Southern California citrus industry. In 1917, the station moved to what is now the A. Gary Anderson School of Management. The station became the foundation of the UCR campus in 1954.

The new citrus fruit is named the "DaisySL" and is finely textured, sweet and almost seedless. It took approximately ten years of development and will probably take another five before it becomes available for commercial sale. UCR's Office of Technology Commercialization filed for a U.S. patent for 'DaisySL' in June 2009.

Established to assist our local citrus industry, it now serves citrus growers where ever they have a need.

The Blogosphere is Hot About Appraisals

August 4, 2009
The interesting phenomenon that is influencing real estate sales is the new "Home Valuation Code of Conduct" (HVCC). These new appraisal processes are keeping the normal pressures of low supply, high demand from having a significant effect on the price of houses.
The blogosphere is full of tales of multiple offers - anywhere from 2 -above 20- on properties listed. Short sellers and banks seem to be using the strategy of listing low and letting buyers bid the price up. Normally this movement toward higher selling prices would help stabilize and even improve values. But - the new HVCC has had the opposite effect. Appraisers are selected at random and, according to blogs, often not familiar with the local real estate market place. Since sales in previous months, particularly in some price ranges, were very limited, the appraisals often come in under the selling price. The HVCC was designed to protect consumers from fraudulent appraisals, but instead has caused sales to be cancelled because buyers can no longer get a loan. One blogger renamed the HVCC "HaVoCC" which is somewhat appropriate for what it has done to real estate transactions.
Even though a field appraiser may appraise the property at the selling price, a "desk" appraiser or underwriter will review the appraisal and without seeing the property, reduce the price. This review is just before the closing date and does cause havoc.
Unless a buyer is an investor with cash or a buyer willing and able to pay over the appraised value, appraisers are controlling the market value of real estate sales. While appraisers have always had a role in confirming market value, market value was typically set by a willing seller and a willing buyer, ready and able to perform.
Lets hope that the proposed bill to put a moratorium on the HVCC will be passed by Congress.
The HVCC is clearly a law with unintended consequences.
Just google HVCC Appraisals and you will turn up some articles on the problem.

Listing and Pending Statistics - August 1, 2009

August 3, 2009



As I continue to track the activity reported through the IMRMLS, I have little doubt that the real estate activity in the 14 communities that I follow has increased substantially.

Here are the number for the single family properties that are currently active on the market and pending (Accepted sales agreement).

Banning/Beaumont............Listings/541.........Pendings/261..........Ratio/.482

Bloomington........................Listings/89...........Pendings/86............Ratio/.966

Colton...................................Listings/124.........Pendings/101..........Ratio/.815

Fontana................................Listings/532........Pendings/762..........Ratio/1.432

Grand Terrace....................Listings/17...........Pendings/23............Ratio/1.353

Highland...............................Listings/170........Pendings/102..........Ratio/.60

Loma Linda..........................Listings/59..........Pendings/35............Ratio/.593

Mentone...............................Listings/24..........Pendings/12............Ratio/.50

Moreno Valley.....................Listings/593........Pendings/817..........Ratio/1.377

Redlands..............................Listings/221.........Pendings/116..........Ratio/.525

Rialto....................................Listings/505.........Pendings/323.........Ratio/.64

Riverside..............................Listings/1105.......Pendings/920........Ratio/.833

San Bernardino...................Listings/857.........Pendings/595.........Ratio/.694

Yucaipa/Calimesa..............Listings/246.........Pendings/91............Ratio/.37

It is interesting to note that the ratios of pendings to listings range from 1.432 in Fontana to a low of .37 in Yucaipa/Calimesa. On August 1 of 2008 the ratios ranged from a high of.43 in Moreno Valley to a low of .161 in Yucaipa/Calimesa. The other interesting datum is that the number of active listings on August 1, 2009 in most communities is half the number that were active on August 1, 2008. This reduced number of active listings has created frustration among potential buyers as they find themselves in a bidding competition with other buyers. This bidding competition has created an interesting phenomenon which I will address in tomorrow's blog.