Sellers want "Top Dollar"; Buyers want "A Deal".

"Top Dollar" in a changing real estate market is not really different than "Top Dollar" in any market. It is what a willing, ready and able buyer will pay for a property. Overpriced homes do not sell in any market and in a market that has changed, there is no margin for erring on the high side. In most markets, slightly underpricing often leads to multiple offers and the seller may be able to realize the best possible price.Buyers who want "A Deal" look for properties that have been on the market a while and then write offers that are considerabley under the listing price. Most Sellers will not accept these offers and will either completely reject them or counter with a much higher price than they might have considered. The best strategy is always to consider an offer only slightly below comparable property data.Buyers who are serious about buying another home at the best possible price, need to select a professional real estate agent, ask for comparables and get pre qualified with a lender. Knowing the market and being guided by a professional can very often lead to "A Deal"Sellers need to make their property clean and crisp. The most profitable improvements include painting, cleaning and repairing. Sellers' goals need to be to make the residence as close to a"model home" as possible.
Original post date December 12, 2006.

Whats the best asking price for your home?

The blog's author, Shirley Harry, has gone to England for the royal wedding In her absence, we will re-visit blogs from several years ago which are still true today, in spite of the changes in the market.

In determing your asking price it is important to consider why you have chosen to put you home on the market. In most cases, the higher the asking price, the longer it takes a home to sell. Here are some important considerations in determing your price:If you are relocating, what's the timing of your move? Is there a company buyout? Are you trying to better that?Have you found another property, the purchase of which is contingent on the sale of your home?Is the home you are selling your principal place of residence? Do you have an alternate residence giving you more flexibility?Are home sales in your area currently increasing, decreasing or remaining stable?No matter what the market conditions are the well priced homes do sell.
Origially posted November 28, 2006

"Accessibility" A New Word in Home Building and Remodeling

April 26, 2011
"Accessibility" What does this mean in relationship to home building and remodeling? Contractors who were polled by the National Association of Home Builders said that making homes more accessible for the elderly and disabled would be on of the top future trends in remodeling. Many present home owners want "age-in-place" and may need to make sure that they are able to comfortably and easily navigate their homes. Perhaps younger folks are not quite so attracted to the trend for "accessibility" but they may have parents who visit or even come to live with them.
Being cognizant of how one might navigate a home with a wheel chair or a walker may help with a remodeling project. Wider halls and doorways are generally aesthetically pleasing as well as helpful should the time come for handicapped access. They are also useful if you are moving larger pieces of furniture.
Step in showers that have no lip or tub wall separating them from the rest of the bathroom can add to a "spa" feeling. Extra lighting can also make a home feel brighter and help with the real estate agent's mantra of "light and bright".
An often overlooked improvement is changing the doorknobs from knobs to lever-style handles.
Take a walk around your home and check out some of these accessibility characteristics.

California State Goverment Still Hoping to Cut Foreclosures

April 25, 2011


From the California Association of Realtors' "Market Matters" comes this analysis of a news release that came for the California Housing Finance Committee. The announcement stated that people who cashed out equity on their home are now eligible for three of the four "Keep Your Home California" programs.


* Keep Your Home California is a state run program funded with $2 billion from the U.S. Treasury's Hardest Hit Fund. It is designed to help low and moderate income people who are unemployed or owe more than their home is worth to pay their mortgage.


*There are four individual programs that fall under Keep Your Home California. Eligible homeowners can get up to $50,000 in assistance from one or more of the four programs combined


*Under the new rules, people who took equity out of their homes will be eligible for the unemployment mortgage assistance, mortgage reinstatement assistance, and transition assistance programs if they meet all the other program requirements. Homeowners who cashed out equity will NOT be eligible
for the principal reduction program.


* Under the program revisions, homeowners who originated mortgages after Jan. 1, 2009 also are eligible for the same three programs.


* To qualify for any of the four programs, homeowners must fall below certain income limits, must be living in the home, cannot own a second home, among other criteria.


For additional information visit http://www.keepyourhomecalifornia.org/


It does seem that to date, there are a limited number of people who meet the eligibility requirements. Both the state and the federal governments keep putting forth programs to alleviate the pain that people feel when they owe more than their property is worth. Based on the anecdotal data that we hear, most people are turned down by these programs.


Do any of you readers have suggestions for a solution?

Earth Day- Reduce, Reuse, Recycle

April 22 , 2011


Today is Earth Day. The first Earth Day was founded in 1970 by Gaylord Nelson, a U.S. Senator from Wisconsin after witnessing the damage of the 1969 oil spill in Santa Barbara harbor.. This first Earth Day led to the creation of the United States Environmental Protection Agency and the passage of the Clean Air, Clean Water and Endangered Species Acts.


In 1990, Earth Day went global and put environmental issues on the world stage.
In 2010, the Earth Day Network claimed to have amassed 40 million environmental service actions towards its 2012 goal of "A Billion Acts of Green".


Today, in Highland, at the Sam J. Racadio Library and Environmental Learning Center, 7863 Central Avenue from 2-5:20 p.m., folks can bring recycling items such as bottles and cans and create their own tote bags. They can also explore the rooftop gardens.


At 4:30 p.m., author Rebecca O'Connor will make a special presentation to discuss her book, "Lift: A Memoir" in which she discusses the life lessons learned as she engaged in the sport of falconry.


For more information you can call 909-425-4700.


Here is a fun ditty to learn and sing to the tune of the "Eensy, Weensy Spider".


Reduce, Reuse, Recycle - words you all know


We have to save our planet so we can live and grow


We are all inhabitants, so we will try, you'll see


And we can save our planet - it starts with you and me!

Federal Reserve Requesting Public Comment

April 21, 2011


On Tuesday, April 19, the Federal Reserve Board requested public comment on a proposed rule under Regulation Z which implements the Truth in Lending Act (TILA). The proposal would apply to all consumer mortgages (except home equity lines of credit, timeshare plans, reverse mortgages or temporary loans).


As an aside, wouldn't it have been clearer to spell out which loans it would apply to since clearly it does not apply to "all" loans?


Lenders will be required to make sure prospective borrowers were able to repay their mortgages before giving them a loan. The rule would establish minimum underwriting standards such as requiring the lender to verify a borrower's income, the amount of debt they have and whether they have a job. Apparently in the wild boom days of real estate, lenders did not do this sort of qualifying and with the collapse of the real estate market, some borrowers sued lenders on the grounds that the lender did not take the "proper steps" when they approved the mortgage. These new rules would protect the lenders from liability if the "qualified mortgage" does not violate the payment provisions.


If you wish to learn more about the Fed's proposal you can go to
http://www.federalreserve.gov/

The rules also address the refinancing of "non-standard mortgages"
to a more stable "standard mortgage".
The rules will be implemented by the new Consumer Financial Protection Bureau which opens on July 21, 2011.

Fannie Mae REO Buyer Incentives

April 20, 2011


Fannie Mae, the government sponsored entity that owns many of the toxic loans and therefore many of the foreclosed properties is offering closing cost assistance to buyers who purchase a home out of their REO inventory. REO is real estate owned.


Buyers who put an offer in on a Homepath listed property on or after April 1, 2011 and close on or prior to June 30, 2011, will be eligible to receive up to 3.5% in closing cost assistance. The offer is only good for buyers who intent to occupy the home as their primary residence. Offers submitted before May 15 have the best chance of qualifying as Fannie Mae has some concerns that offers made after that date may have a difficult time meeting the June 30 deadline.


To locate homes owned by Fannie Mae you can go to the http://www.homepath.com/ website. The agents at CENTURY 21 Lois Lauer Realty can also assist you in searching out the available Fannie Mae properties. Financial 2000, a lender affiliated with CENTURY 21 Lois Lauer Realty can also assist with processing your loan.


With prices competitive and interest rates at almost a 40 year low, this is a great opportunity for folks to begin their path to home ownership.

The Potential Seller's Dilemma (Cont)

April 19, 2011

There are folks who want to move to other living quarters who are faced with a different dilemma financially than the dilemma facing the underwater home owner. These home owners may have lived in their homes for many years and over time paid off their home loans or paid them down. They saw their neighbors sell at the height of the real estate boom and may have thought that their homes had appreciated to those levels. The dilemma for these folks involves the choice to sell now at a 30 to 40% discount off the prices of homes that sold in 2005-2006 or to wait for the real estate market to recover. Some of these folks, due to age or health conditions really do want to make a move. What is one to do?

Renting can sometimes be an option, but renting may involve managing the property. Just leaving the home vacant could also be an option. However, both of these ch0ices will involve maintaining the property, repairs, gardeners, etc.
There is also the question as to how long will it take for the property to recover its value. Most economists believe that it may be more than 2-5 years before home prices approach their past values. (Typically the real estate cycles run 10 to 11 years peak to peak which suggests that the next peak will be 2015,20016 or 1017.)

If a home owner sells now the proceeds may be put to a better use. If a homeowner keeps the property these monies are tied up and only appreciate when the real estate market recovers.

It is a real dilemma. Over the long term, holding on to the house may be a wise choice, but one will only know that once the long term is past. Selling now relieves the home owner of the responsibility of maintaining the property and may still produce funds that can earn more in other investments.

As an aside: At the present time, a home owner who has lived in a property 2 of the last 5 years gets the benefit of a $250,000 capital gains exclusion (if a couple, $500,000). The government can always change the rules and with all the deficit reduction talks, this capital gains exclusion may not always be with us.

Obviously folks who want to move have a great deal to consider.

The Potential Seller's Dilemma

April 18, 2011
There seems to be a dilemma facing current homeowners. Actually there are probably a number of dilemmas facing a homeowner who wants to move to another place. The dilemma involves the reality of the current real estate market - home prices are not what they were 4 years ago - or even 2 years ago. As a result, you have folks who may owe more than the current market value or folks who are not underwater but who have yet to accept that the equity in their property is less than they had planned. For the underwater home owner, the choices include: continuing to make payments on the loan that is greater than the value; stop making payments; putting the property on the market as a short sale; do a deed-in-lieu; or letting the property go to sale on the court house steps as a foreclosure. Other than the first choice of continuing to make the payments, the other choices will have a negative effect on the home owner's credit. The home owner would be able t0 purchase another home if the payments continue to be made, but there will be no equity, and in order to sell the property, the homeowner would be obliged to put money into the transaction. In these cases, the homeowner may realistically decide to rent the property if the desire to move is financially feasible. Another group of home owners who may want to sell in this real estate market because of personal issues or because they have found a home better suited to their current needs also are faced with a dilemma. (To Be Continued)

A Springtime of Activities

April 15, 2011 There are so many events occurring this weekend in the Inland Empire that it is difficult to choose what one or ones to mention . Because it is Spring and the flowers are blossoming, I will mention the annual (99th) Redlands Horticultural and Improvement Society's flower show and home garden tour. You can pick up tickets and maps at the ESRI Cafeteria, 380 New York Street in Redlands. They will have flower arrangement displays. They will also have uncommon plants for sale at the plant propagation yard in Prospect Park. The hours are 2 6 p.m. on Saturday and 10 a.m.to 5 p.m. on Sunday. For additional information you can call 909-793-1016 or visit their website http://www.rhis.org/ In San Bernardino this weekend features "Railroad Days". This weekend, anyone can ride a historic steam locomotive to Los Angeles or the other way around. The trip is part of the San Bernardino Railroad Days at the Santa Fe Depot. Activities will include music and historical displays. The hours are 9 1.m. to 5 p.m. Saturday and 9 1.m. to 3 p.m. on Sunday. The Santa Fe Depot is locate at 1170 Third St in San Bernardino. Admission to the depot is free but the round trip tickets to LA average about $100 and these tickets are limited. Information available at 909-388-2934 or http://www.sbrailroaddays.com/

Pay Attention - Changes to Mortgage Rules Are in the Works

April 14, 2011 The Dodd-Frank financial overhaul law has added to requirements for banks. Banks are to be required to hold %% of the credit risks of loans that are bundled together and sold off as securities. The belief behind this new regulation is that if banks share some of the risk, they will make "better" loans. The regulations allow certain "gold-standard" residential mortgages to be exempted from the risk-retention requirement. As I understand it, these regulations have not yet been enacted and debate has become widespread. The real estate industry and consumer advocate groups have entered the fray as they contend that the rules will raise borrowing costs and that the "gold standard loans" will be available to only a small portion of prospective home buyers. These "gold standard" loans will require a 20% down payment and according to CoreLogic, Inc, a real estate data firm, about 46% of all homeowners with a mortgage had less than 20% equity in their homes in 2010. This is not surprising since the favorite loan of 201 was an FHA insured loan which only required from 3-3.5% down payment. At the present time, the regulations exempt government agencies and also Fannie Mae and Freddie Mac from these risk-retention guidelines. Reworking the financial marketplace is a complex endeavor and paying attention to the various twists and turns of the debate may well be limited to the government representatives, the government bureaucracies and various special interest groups. However, loans are the important component of home ownership in our country and making loans affordable affects how many citizens will be able to purchase a home in the future.

A New Statistic to Follow - $400,000

April 13, 2011 Back in the days of the real estate "boom", 2005-2006, the median price for home sales reported through the then IMRMLS reached into the $400,000 range. While I am not anticipating a return to that range in any time soon, It would be nice to see at least some activity in the $400,000+ range. Thus I thought I would begin tracking it on a regular basis. The first quarter of 2011 is now behind us and there was a bit of $400,000+ activity in at least 5 of the 14 communities that I regularly track. Here are the numbers. Probably no trend yet. Banning/Beaumont.......Jan/0.......Feb/0.......Mar/0 Bloomington..................Jan/0.......Feb/0.......Mar/0 Colton.............................Jan/0.......Feb/0.......Mar/0 Fontana..........................Jan/3.......Feb/2.......Mar/4 Grand Terrace...............Jan/0.......Feb/0.......Mar/0 Highland........................Jan/0.......Feb/2.......Mar/0 Loma Linda...................Jan/0.......Feb/0.......Mar/0 Mentone........................Jan/0.......Feb/0.......Mar/0 Moreno Valley..............Jan/0........Feb/0.......Mar/0 Redlands.......................Jan/6........Feb/6.......Mar/5 Rialto............................Jan/0........Feb/0.......Mar/0 Riverside......................Jan/11.......Feb/10......Mar/16 San Bernardino...........Jan/2........Feb/0........Mar/1 Yucaipa/Calimesa......Jan/2........Feb/2.........Mar/3 There are the numbers. Let's hope that communities such as Riverside and Fontana continue the upward trend.

Median Home Prices - Solds - January-March 2011

April 12, 2011 Here are the median prices as reported though the CRMLS for the months of January, February and March of 2011. This report as not based on economic analysis but on the simple method of dividing in half the number of properties reported as sold through the CRMLS. I then list the selling price of the property at this halfway point. Banning/Beaumont......Jan/175,000......Feb/155,000......Mar/155,000 Bloomington.................Jan/130,000......Feb/130,000......Mar/149,000 Colton...........................Jan/93,000........Feb/122,000......Mar/120,000 Fontana........................Jan/196,000......Feb/195,000......Mar/211,000 Grand Terrace.............Jan/203,000......Feb/242,000.....Mar/200,000 Highland......................Jan/162,000......Feb/180,000......Mar/155,000 Loma Linda.................Jan/250,000......Feb/219,000......Mar/220,000 Mentone......................Jan/157,000.......Feb/80,000........Mar/85,000 Moreno Valley.............Jan/155,000.......Feb/154,000......Mar/148,000 Redlands......................Jan/218,000......Feb/203.500......Mar/205,000 Rialto...........................Jan/160,000......Feb/165,000.......Mar/152,000 Riverside.....................Jan/190,000......Feb/195,000.......Mar/187,000 San Bernardino..........Jan/122,000......Feb/105,000.......Mar/95,000 Yucaipa/Calimesa.....Jan/210,000......Feb/190,000.......Mar/181,500 It will be interesting to watch these numbers as the year progresses.

Closed Transactions - March 2011-2003

April 11, 2011 Here are the numbers for the closed residential real estate sales for the month of March as reported through the CRMLS. It is interesting to note that the smaller municipalities have fairly consistent numbers from 2009-2011. Banning/Beaumont.......2011/147......2010/112......2009/137......2008/89 ........................................2007/62......2006/98.......2005/99.......2004/89......2003/72 Bloomington..................2011/20.......2010/20.......2009/25.......2008/6 ........................................2007/7........2006/24.......2005/23.......2004/23.......2003/21 Colton.............................2011/38.......2010/38........2009/66......2008/20 ........................................2007/23......2006/67.......2005/52......2004/48.......2003/36 Fontana..........................2011/265.....2010/284.....2009/357.....2008/97 ........................................2007/142....2006/270.....2005/301.....2004/238.....2003/229 Grand Terrace...............2011/11........2010/5..........2009/7.........2008/6 ........................................2007/2.......2006/7..........2005/13.......2004/10........2003/10 Highland........................2011/58......2010/67........2009/87.......2008/27 .......................................2007/39.....2006/67........2005/75.......2004/69.......2003/67 Loma Linda..................2011/15.......2010/15.........2009/13........2008/9 ......................................2007/15......2006/17........2005/7..........2004/11........2003/16 Mentone.......................2011/12.......2010/5..........2009/9..........2008/8 ......................................2007/4.......2006/9.........2005/6..........2004/10.......2003/2 Moreno Valley.............2011/273.....2010/308.....2009/505.....2008/175 .....................................2007/120....2006/333.....2005/340.....2004/279.....2003/229 Redlands.....................2011/55.......2010/57........2009/55........2008/48 ....................................2007/63......2006/76.......2005/100......2004/85......2003/75 Rialto..........................2011/132.....2010/122......2009/132......2008/48 ....................................2007/53......2006/118......2005/127......2004/102....2003/89 Riverside....................2011/368.....2010/417......2009/530......2008/207 ...................................2007/259....2006/487.....2005/427......2004/371.....2003/359 San Bernardino.........2011/213.....2010/261......2009/338......2008/96 ...................................2007/139....2006/255.....2005/241......2004/241......2003/224 Yucaipa/Calimesa....2011/66.......2010/65.......2009/62.......2008/40 ...................................2007/54......2006/67......2005/79........2004/81........2003/60 It is interesting to note that in many areas, the number of units sold peaked the year after the boom ended. With the substantial decline in home value, buyers, many of whom were investors, took advantage of the lower pricing. With prices having stabilized, the numbers seem to have returned to normal volumes.

More Spring Cleaning _ Household Hazardous Waste

April 8, 2011 This Saturday morning beginning at 9 a.m. (Wastes brought before 9 a.m. will not be accepted.) San Bernardino County residents may bring their household hazardous wastes to the county collection facility at 2824 East "W" Street in San Bernardino. Wastes must be accepted by the County Fire Department personnel. You will be required to show identification. To transport your household hazardous waste, be sure that: 1) the waste is properly labeled or in its original container; 2) the contain is no larger than 5 gallons; 3) the containers are sound and not leaking; Wastes are place securely in the vehicle for safe transport. This is an opportunity to bring 1) Motor oil/used filters 2) Auto and household batteries 3) Paint Products 4) Household cleaners 5) Pesticides and fertilizers 6) Medications and home generated sharps and needles in approved container 7) TV and Computer Monitors 8) CPUs and Printers 9) Fluorescent tubes 10) Microwave ovens 11) Cell/Mobile phones and other telephones 12) Space heaters, Stereos, Radios 13) VCRs/DVD players 14) Musical cards, Clothes Irons This collection is for household hazardous waste and is bot for business waste. It is an opportunity for home owners to legally dispose of the above items.

Compling With the New Carbon Monoxide Detector Law

April 7, 2011 I have been asked the question 'Where Do You Place Carbon Monoxide Detectors?' The law is not very clear, except to state 'in accordance with manufacturers instructions.' I visited the First Alert company web site and they suggest one unit centrally located outside the bedrooms and 1 detector for each level of the house, including basement. If you do visit the First Alert web site, you'll find a nifty coupon good for 10% off the purchase. The site with the coupon is: http://www.firstalertstore.com/store/california-carbon-monoxide-alarm-offer.htm?gclid=CJbX4KT4iKgCFQE2gwodOwktsw . The law becomes effective June 1, 2011 for all residential real estate.

Home Inventory

April 6, 2011 If you have never done it before, this Spring might be a great time to inventory your possessions. As you are cleaning out closets and cupboards, jot down the "stuff" you are putting back on the shelves. Then there are all your dresser drawers to inventory the "stuff". This inventorying process may lead you to give away items that are no longer useful or meaningful to you. Another method of inventorying your possessions is to use a video camera and take photos of your rooms. You could even lay out "stuff"n a bed and take a photo. There are benefits of knowing what possessions you have. In the case of any kind of loss, having documentation can prove to be valuable in establishing a claim. An inventory may also lead you to add a rider to your insurance policy to insure some of your more valuable possessions that would not ordinarily be covered. While the process of doing an inventory may seem more time consuming than you believe it to be worth, folks who have completed one have ended up enjoying the process. Start small, one closet or one drawer at a time. Then complete one room. It is much easier to do it in small bites. Once completed, you will only need to update it as you add new items or get rid of old ones. It is easy to procrastinate, but having a home inventory can prove to be a valuable document.

Have You Heard

April 5, 2011 I do not know whether I am super sensitive to repetition, but of late there are two phrases that the media seems to enjoy using. The first is "the new normal" and the second is "the next level". If you follow editorials about the current state of real estate sales, you have certainly heard the phrase "the new normal". Suggestions are made that the high percentage of bank-owned or short sale properties is "the new normal". Or perhaps, that buyers asking for the seller to pay closing costs is the "new normal". I looked up "normal n the dictionary and found that it is an adjective that is defined as "conforming to a standard" or "serving to establish a standard". It would seem that in the present usage of "normal" the users are suggesting that current conditions in real estate transactions are establishing a new standard. Some discussion of what that new standard really is might be a useful post. The second phrase "the next level" is often found in commentary on the stock market, on sports teams and on current economic trends. Apparently it is felt that we have achieved improvement up to a certain level and that it is time to be successful at "the next level" whatever that may be. Again, perhaps a discussion describing the characteristics of "the next level" could be enlightening. When you are reading or listening to the media, check and see if these phrases are as prevalent as they seemed to me.

Listings, Pendings and Back-ups as of April1, 2011

April 4, 2011 As we start a new month, here are the numbers for the active listings, the properties currently in escrow with either pending or back-up status. I also post the ratio between the active number and the number of properties in escrow. Banning/Beaumont......List/606.......Pend/221.......Back-up/77…….Ratio/.492 Bloomington..................List/69.........Pend/57.........Back-up/16......Ratio/1.058 Colton.............................List/137........Pend/86........Back-up/35......Ratio/.883 Fontana..........................List/776.......Pend/515.......Back-up/185.....Ratio/.902 Grand Terrace...............List/27.........Pend/23.........Back-up/4........Ratio/1.000 Highland........................List/196.......Pend/105.......Back-up/40......Ratio/.740 Loma Linda...................Lisr/70.........Pend/26.........Back-up/17......Ratio/.614 Mentone........................List/32..........Pend/10.........Back-up/4........Ratio/.438 Moreno Valley...............List/898.......Pend/491.......Back-up/179.....Ratio/.746 Redlands........................List/308.......Pend/86........Back-up/62.......Ratio/.481 Rialto.............................List/341........Pend/225......Back-up/74.......Ratio/.877 Riverside.......................List/1399......Pend/732......Back-up/343......Ratio/.768 San Bernardino............List/784........Pend/432......Back-up/118......Ratio/.702 Yucaipa/Calimesa........List/242.......Pend/103.......Back-up/62.......Ratio/.682 If you were to compare these numbers with April 2010, you would see that the ratios were slightly higher. The number of active listings was lower and the pendings and back-ups were higher. Speculation has it that the first time home buyer incentive caused prospective buyers to make a buying decision more quickly. Today, these prospects are willing to take a more "look and see" attitude.

"Celebrate Citrus"

April 1, 2011 Yesterday I posted comments about the sweet smell of the citrus blossoms. Tomorrow you will have the opportunity to join the Inland Orange Conservancy's annual "Celebrate Citrus" event. From 1-4 p.m. attendees can sample unique varieties of locally grown citrus. The event is held at Redlands' Prospect Park grove at Highland Avenue and Cajon Street. There will be a citrus themed art show, musical entertainment, activities for children including an afternoon art project. Olive Avenue Market will offer citrus flavored cookies, cupcakes and scones along with fresh lemonade and other citrus beverages for sale. Attendees will learn how they can play a role in saving local citrus groves through the conservancy's programs. Purchasing a "Share the Crop" entitles buyers to receive 10 pounds of citrus each week during the 14 week growing season. Oranges can be picked up at one of 18 pickup locations throughout San Bernardino and Riverside counties. For more information go to http://www.inlandorange.org/