Building Permits - A Necessary Part of Any Remodeling

August 31, 2011


Gone are the days of Do-It-Yourself. Well, not really as many adds use the initials DIY when advertising building supplies. However, governments have stepped into the remodeling arena in a very big way. For almost any changes made to a home's electrical, plumbing, heating, cooling, roofing or structure, a permit is required.


Now when a lender appraises a property copies of permits may be one of the conditions for obtaining financing.


It is important that a homeowner check with the local building authorities and check out the requirements. If using a contractor, make permitting the work part of the contractor's bid.


The rule of thumb is: Anything that can fall on a person or harm a person in any way should have a permit and the appropriate inspections as the work progresses.


You will be glad that you followed the rules!

The Nice Thing About Late Summer Hot Weather

August 30, 2011


We've experienced fewer over 100 degree days this summer than seems normal. However, we are now having some really hot, and I might add, dry days where temperatures are peaking over the 100+ degree mark. The really nice advantage of having a late summer hot spell is that temperatures cool down when the sun sets and we experience nighttime temperatures in the 60 degree range.


The secret of cutting your home cooling costs is to open wide your windows in the evening and closing them and pulling the blinds in the morning. If you have followed this routine in the past, you know that it can be effective. Usually your home will stay comfortable until late afternoon and you will have saved on your electric bill.


These wide temperature swings are one of the great advantages of a desert climate. Enjoy!

"Green" Homes

August 29, 2011


An piece written by Kenneth R. Harney in the Los Angeles Times on Sunday, August 28 was entitled "Do green homes sell better?" As a real estate agent, I was quick to read what Mr. Harney had to say. I have been noticing more and more homes with solar panels mounted on the roof which has led me to believe that homeowners are investing in solar electricity. Yes, this major investment says on utility costs, but does it also add market value to a home?


The data is still very limited, but it did seem to indicate that "green" amenities and certification in new construction does add some additional value.


According to Mr Harney's article, researchers examined a sampling of home sales in the $500,000 range in the San Diego and Sacramento markets. They found that , on average, solar panel installation did add an increase in appraised value.


There are still some issues as lenders approach "green" sales. One is the qualification of the borrower process and give credit for less utility expense. The second is bringing appraisers up to speed in recognizing the added value of solar panel electricity.


Slowly the real estate market place is learning to appreciate "green" houses.

A Good Weekend for a Laugh

August 26, 2011


Starting this evening the LOL Comedy Festival will begin a three day run at the California Theatre of the Performing Arts in San Bernardino. The festival opens at 6 p.m. this evening, 6 p.m. Saturday evening and 6 p.m. Sunday evening. There are three different performers each evening. Admission is $25 for a single show or $63 for the each day's presentations.


Willie Barcena will take the stage this evening at 9:30 p.m. He is returning after a great reception at last years LOL Comedy Festival. The show is being taped for Showtime TV.


Sunday evening at 6 p.m. Rita Rudner & Four Potential Ex-Husbands will be doing stand up comedy in her trademark softspoken witticisms.


For information you can call the box office at 909-885-5152 or go online to http://www.californiatheatre.net/

Short Sale Fantasy

August 25, 2011


After three years of a real estate price adjustment and short sales being a significant part of the current inventory of homes for sale, one might think that the lending institutions would have set up a system to process them. It is possible that they have, but in spite of government incentives meant to speed up short sale approval, it remains the case that a buyer may have to wait three or more months for an aye or nay from the lender.


I have this fantasy that once an offer is accepted by the owner of a property and necessary documents submitted to the lender(s), the procedure might go as follows:


1) The lender reviews the offer and the financial ability of the prospective purchaser to obtain the required financing.


2) The lender orders an appraisal. (The same as the buyer's lender would do in order to make the loan)


3) If the appraisal comes in within some established percentage of the amount of the offer (possibly 5%), the lender approves the purchase and the transaction opens escrow and proceeds to a timely closing.


Here is some more fantasy:


The government, instead of just giving lenders bail-out monies reimburses them for the loss on the loan.


What a concept. The short sales take place, the upside down homeowners move on and the market stabilizes.


One can dream.

Time to Check Your Earthquake Preparedness

August 24, 2011


Folks on the East Coast had a shock yesterday - a 5.8 earthquake centered in Virginia. It was a reminder that I needed to check my earthquake preparedness. With our Southern California region experiencing a lull in earthquake activity it is easy to let one's preparedness slide.


Time to check the batteries in your flashlights. There are now many flashlights on the market that you either wind or shake and these may be good pieces of equipment for your earthquake supply kit.


Is your water supply adequate? It is recommended that you have on hand a week's supply of 1 gallon per person per day .


Are your first aid supplies easily available? Do they contain gauze, antiseptics, etc.


If you have a baby, do you have formula, clothing, blankets, food and diapers?


A good site for an emergency supplies checklist is the California Governor's Office of Emergency Services. http://www.oes.ca.gov/

This August is a Great Time for Buyers

August 23, 2011


Why would anyone say that any particular month is a great month for Buyers? Possibly because those of us who pursue the profession of real estate sales see some positive incentives for prospective buyers.


1) Interest rates for 30 year fixed rate mortgages are at 50 year lows.


2) You can still get a loan with a 3.5% down payment. With talk of new regulations wanting at least a 10% down payment, acting now may be a wise move


3) Home prices are almost half of what they were just 4 or 5 years ago.


4) (Here is an interesting incentive) Sellers who have been offering their houses for sale for 3 to 6 months may be ready to deal.


Yes, a number of homes offered for sale are short sales, but after three years of dealing with short sales, lenders and the government may be figuring out how to get them completed in a reasonable amount of time.


If you are some one who would like to own a home, contact a real estate agent and at least check out the inventory.


If you are thinking of making an investment, do the numbers; the rent may pay the mortgage.


If you have picked a location where you would like to retire some time in the future, check out the houses for sale. Buy one, rent it and when you are ready for retirement, convert it to your primary residence.


Just some thoughts on why this August may be a great time to buy a property.

How Are Your Documents Stored?

August 22, 2011


If you needed a copy of your Life Insurance or your auto's pink slip or the deed to your property, how quickly could you find these documents? Do you have a file where they are all labeled and easily found? Or are they in a drawer somewhere?


For first time home buyers starting out right with a document organizer will make your life less complicated if you ever have need of the purchase documents. For tax purposes it is important to have evidence of the purchase price that will provide the basis for any future capital gain. Adding any improvements to the property should also be collected in this file during the course of home ownership. Homeowners insurance papers are also a good thing to file in your homeownership file.


I read in the newspaper about a portable file case that is designed to aid in the gathering of documents that ought to be kept and that may prove important.


This case is called LifeinCase and was developed when the co-inventor had to find documents upon the death of her father. It has folders that list the documents that are important in five category labeled folders.


If you have an interest in getting organized you can research this document case at http://www.lifeincase.com/

StarLab Inflatable Comes to Town

August 19, 2011


This Saturday, August 20, the StarLab inflatable planetarium comes to the San Bernardino County Museum. Tickets may be purchased at the museum's front desk starting at 9 a.m. with the 30 minute shows beginning at 12 noon. Seating for each of the 30 minute shows is limited to 25 persons. The cost of a ticket to the show is $1 plus regular museum admission. These programs are best suited for families and children older than 4.


First presentation 12 noon.


Next at 12:45, 1:30, 2:45, 3:30 and 4:15 p.m.


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

The Digital Living Room - What???

August 18, 2011


I saw a reporting piece yesterday on Bloomberg TV about the "Digital Living Room". It was an eye opening piece about digital electronics and the changes that are occurring. Innovators are developing ways to convert video games, movies and just about every electronic gadget into being compatible for viewing on your digital television. The "digital living room" seems to be referring to a space in your home where all of these "streaming technologies can be and will be enjoyed,


What dawned on my consciousness was that home buyers have added the location of the flat screen TV to a needed requirement for the home they might want to purchase. I actually had experience visitors to open house expressing this need. They look around at some of the homes and comment "There is no place to put my flat screen (sometimes very large) television."


Many homes built in the 1980s and 1990s and even the 2000s had wonderful media cabinets so that all the Nintendos, x boxes, TVs and stereo equipment.


Today's flat screen TVs no longer fit inside these cabinets. It has also become popular to hang them on the wall like a painting - but there must be a wall that is viewable from the sofa. So add a wall for the flat screen to the granite counters and stainless steel appliances.

Don't Let Your Lawn Turn Brown

August 17, 2011


With water conservation still being a major topic, many who want to help the environment limit the length of time the sprinklers run. However, it is important to keep a close watch on the results of this limited watering. If you have not converted your lawn to a Xeroscape, you will want to keep your grass healthy and green.


If you notice that your lawn is developing brown spots, check your sprinkler system. Maybe some of the sprinkler heads are broken. Sometimes they are twisted and miss certain areas. (I saw a rainbird nicely watering the street the other day.) During the month of August when we experience very hot and very dry weather, it might be necessary to increase the amount of time your sprinklers run.


Putting a weekly check, or perhaps a daily check, may be a good idea. Keeping your watering adequate but not excessive is probably a good way to conserve water.

Headline - Wall Street Journal - August 12, 2011

August 16, 2011


On Friday, August 12, 2011, there was a headline on the front page of the Wall Street Journal that read "Judgement Call: Appraisals Weigh Down Housing Sales". A fallout of the housing bust is the revamping of the appraisal process.


Admitting that during the boom years there were appraisals that inflated the value of a property, the regulators have established a system that often deflates the value of the property. Appraisers are assigned from a central appraisal management company and may or may not be familiar with a particular local real estate market. Since the process was put into place, the system has mostly rectified this flaw, but real estate sales are still subject to the opinion of value of the person assigned to the task of valuing the property.
Appraisals are part science (comparison to recent sales) and part art (valuing amenities). Appraisers and lenders need to judge whether a particular real estate market is in a declining mode, a stable mode or a rising mode. Generally lenders and appraisers consider most markets to still be declining. A low appraisal can mean a cancellation of the sale if the buyer does not have the funds to make up the difference or the seller will not or cannot come down in value.


At one time a willing and capable buyer and a willing seller would negotiate a selling price that was considered to reflect market value. Now no matter how willing a buyer is to pay a price or a seller is to take a price, the lender, based on the appraisal, has the determining voice in establishing market value. Perhaps this determining voice has held back any appreciation that might exist. We have been though a major readjustment in home values, and it would be helpful if we could put a bit more weight on the willing buyer and willing seller.

Speaking of Bumpy Rides....

August 15, 2011


If you watched the stock markets last week, you were not watching a bumpy ride, you were watching a roller coaster ride. If you watch my blog posts with median prices and units sold, you see a bumpy ride. Back between 2007 and 2009 you probably saw the steep fall of the roller coaster ride. Real estate, unlike stocks, historically does not fall steeply and then rise steeply. Real estate, when it experiences a steep decline in value, takes several years to find its bottom and to begin its recovery.


Where are we now? Zillow posted that we are experience a bumpy bottom with a true bottom in 2012. 24/7 Wall St feels that we will experience more declines, and even steep declines in some regions. 15.6% in the Riverside San Bernardino region.


I can only comment that the median prices and the volume of units being sold seem to reflect a fairly narrow trading range and perhaps even a bottom. Since the market collapse in 2007 and 2008, I have held the position that we will not see any uptick in value until late 2012. After that we should see some steady value increases and by 2016, we should again experience some serious appreciation. My prediction is based on past history. It will be interesting to see if all the changes in the packaging of mortgages and in the global financial markets influence our local real estate history. I remain optimistic that history will prevail.

Slow Food In Redlands

August 12, 2011


This Saturday, August 13, Slow Food Redlands and Hangar 24 are sponsoring a Slow Food Festival. If you are not acquainted with the slow food movement, this is an opportunity to learn more about. it. It began in Italy as a reaction to "Fast Food". It's main purpose is to encourage using fresh foods and preparing them in a healthful way (less fat and less sugar and less chemicals).

The event will be a "Cook Off" for all ages. There will be information boots and cooking demonstrations as well as two cooking contests. at 4 p.m. Hangar 24 will host a brewery tour and tasting of the special event brew and a non-alcoholic orange soda. At 5 p.m. there will be a slow food dinner with cooking with local foods contest and the cooking with beer contest.

The price of admission is $20 for adults and $10 for children with the beer and soda being sold separately. Tickets may be purchased at the door or from http://www.brownpapertickets.com/ Event code is 190881. Doors open at 4 p.m and the event continues until 9 p.m.

Hangar 24 Craft Brewery is located at 1710 Sessums Drive in Redlands. For more information www.slowfoodredlands@gmail.com or call 951-500-6968
Celebrate summer by feasting on locally grown foods.

Single Family Homes sold over $400,000

August 11, 2011
As you might have noted in yesterday's post of the median prices of homes sold in July from 2011 back to 2003, in the boom years of 2005, 2006, 2007 the median price in some communities reached $400,000 and slightly above. Will that median return? I track now the $400,000 volume just to see the activity in that higher end of prices. The volume had fallen to zero, but this year there have been a few transactions. Here are the numbers from July back to January 2011.
Banning/Beaumont............July/1......June/0......May/0......Apr/1......Mar/0
.............................................Feb/0......Jan/0
Bloomington.......................July/0.....June/1......May/0......Apr/0......Mar/0
.............................................Feb/0......Jan/0
Colton..................................July/0.....June/0.....May/0......Apr/0.....Mar/0
.............................................Feb/0......Jan/0
Fontana...............................July/3.....June/4......May/0......Apr/4......Mar/4
.............................................Feb/2......Jan/3
Grand Terrace....................July/0.....June/0......May/0......Apr/0......Mar/0
.............................................Feb/0......Jan/0
Highland.............................July/2.....June/1......May/0......Apr/0......Mar/0
.............................................Feb/2......Jan/0
Loma Linda........................July/0.....June/0.....May/0......Apr/1......Mar/0
............................................Feb/0......Jan/0
Mentone.............................July/0.....June/0.....May/0......Apr/0......Mar/0
............................................Feb/0......Jan/0
Moreno Valley...................July/0......June/1.....May/0......Apr/0......Mar/0
...........................................Feb/0......Jan/0
Redlands...........................July/4......June/8.....May/8......Apr/7......Mar/5
..........................................Feb/6.......Jan/6
Rialto................................July/0......June/0.....May/0......Apr/0.....Mar/0
..........................................Feb/0.......Jan/0
Riverside..........................July/20....June/24....May/18....Apr/22...Mar/16
..........................................Feb/10.....Jan/11
San Bernardino...............July/0......June/0......May/0......Apr/0.....Mar/1
.........................................Feb/0.......Jan/2
Yucaipa/Calimesa..........July/1......June/4.......May/4......Apr/7......Mar/3
.........................................Feb/2.......Jan/2
I especially watch the activity in Riverside as it has the largest number of active listings in the communities that I track. It also is somewhat influenced by what is happening in Orange County. It is a long way from the median $400,000+ prices obtained in 2005, 2006, 2007, but the numbers do show that there is activity, however small that activity might be.

More Statistics January to July Median 2011

August 10, 2011


Yesterdays post traced the median prices in July for the past nine years. Today the post will show how we are doing in 2011. Again the data comes from the CRMLS and is non academic - simply the price of the property at the halfway point of reported closed transactions for single family residential. Add three 000 to obtain the price.


Banning/Beaumont.............Jan/175......Feb/155......Mar/155......Apr/155


..............................................May148......June/165....July/161


Bloomington........................Jan/165......Feb/130......Mar/149......Apr/150


.............................................May/125.....June/150....July/155


Colton..................................Jan/93........Feb/122......Mar/149.....Apr/110


.............................................May/117.....June/130....July/110


Fontana...............................Jan/194......Feb/195......Mar/211......Apr/200


............................................May/185......June/215....July/205


Grand Terrace...................Jan/203......Feb/242......Mar/200.....Apr/205


...........................................May/180......June/165.....July/220


Highland...........................Jan/162.......Feb/180......Mar/155.......Apr/165


...........................................May/185......June/182....July/163


Loma Linda......................Jan/250.......Feb/219......Mar/220......Apr/200


..........................................May/235......June/250....July/220


Mentone...........................Jan/157.......Feb/80.........Mar/85........Apr/129/154


..........................................May/95.......June/95.......July/144


Moreno Valley.................Jan/155.......Feb/154........Mar/148......Apr/148


.........................................May/148......June/153.....July/157


Redlands.........................Jan/218.......Feb/203.......Mar/205......Apr/202


........................................May/220......June/225....July/205


Rialto..............................Jan/160........Feb/165......Mar/152.......Apr/160


........................................May/164.......June/158....July/165


Riverside........................Jan/180........Feb/195......Mar/187.......Apr/189


........................................May/190......June/189.....July/190


San Bernardino.............Jan/122.......Feb/105.......Mar/95........Apr/109


.......................................May/105......June/99.......July/123


Yucaipa/Calimesa........Jan/210.......Feb/190.......Mar/181......Apr/198


.......................................May/180......June/188.....July/195


Check for yourself. It seems that we are trading in a very narrow range. Median prices are generally influenced by the mix of properties sold. The smaller communities experience a wider range because the number of solds can be extremely small.

Median Prices for July 2011-2003

August 9, 2011


Here are the median prices for the fourteen communities that I track as taken from the CRMLS. This is not a sophisticated determination of a median price. It is simply taking the total number of reported closed transactions, dividing in half and posting the selling price of the property at the halfway point. You will need to add 000 to the numbers posted.


Banning/ Beaumont..............2011/161......2010/170......2009/172......2008/235


................................................2007/320.....2006/325.....2005/325......2004/235


................................................2003/148


Bloomington..........................2011/155......2010/129......2009/120......2008/185


...............................................2007/438....2006/370......2005/309.....2004/265


...............................................2003/170


Colton....................................2011/110......2010/105......2009/96........2008/194


...............................................2007/260....2006/336.....2005/314.......2004/225


...............................................2003/170


Fontana.................................2011/205......2010/200.....2009/180......2008/274


..............................................2007/414.....2006/420.....2005/400.....2004/315


..............................................2003/212


Grand Terrace.....................2011/220.....2010/190......2009/203......2008/275


.............................................2007/348.....2006/365.....2005/342.......2004/292


.............................................2003/250


Highland.............................2011/163......2010/170......2009/130.......2008/280


............................................2007/336.....2006/392.....2005/346.......2004/272


............................................2003/217


Loma Linda.......................2011/220......2010/190......2009/230......2008/308


...........................................2007/429.....2006/495.....2005/397.......2004/315


...........................................2003/225


Mentone...........................2011/144......2010/195......2009/170........2008/189


..........................................2007/170


................................................../344....2006/385.....2005/245.......2004/298


.........................................2003/238


Moreno Valley................2011/157.......2010/150......2009/140.......2008/198


........................................2007/355......2006/390....2005/340.......3004/275


........................................2003/190


Redlands........................2011/205......2010/201......2009/220......2008/284


.......................................2007/420.....2006/425.....2005/362.......2004/330


.......................................2003/270


Rialto............................2011/165.......2010/150.......2009/130.......2008/190


......................................2007/360.....2006/391......2005/340.......2004/279


......................................2003/190


Riverside......................2011/190......2010/190......2009/175........2008/255


.....................................2007/400.....2006/430.....2005/400......2004/330


.....................................2003/230


San Bernardino..........2011/123.......2010/107......2009/75.........2008/150


....................................2007/299.....2006/311......2005/275.......2004/212


....................................2003/142


Yucaipa/Calimesa.....2011/195.......2010/170......2009/199.......2008/260


....................................2007/355.....2006/390.....2005/360.......2004/314


...................................2003/205


It is interesting to note that only the Banning/Beaumont area has a higher median price in 2011 than it had in 2003. Perhaps this is because so much new housing was built and the current housing stock is much improved from what it was in 2003.

Closed Sales - July 2011-2003

August 8, 2011




In the fourteen communities that I track, the July numbers for closed sales in the Beaumont/Banning area stand out when compared to the past 9 Years. 152 is the highest volume of closings since 2003. These sales may well be influenced by the really attractive prices for the many homes built in the 2003-2006 era. These homes have the amenities that buyers seek at prices that are very affordable; two characteristics that drive buying decisions.




Here are the closed sale numbers 2011-2003




Banning/Beaumont...........2011/152.....2010/111.....2009/142.....2008/115




............................................2007/56......2006/84.....2005/105.....2004/100




............................................2003/67




Bloomington......................2011/25.......2010/27......2009/44......2008/23




...........................................2007/13......2006/20......2005/23......2004/27




...........................................2003/26




Colton................................2011/49......2010/57.......2009/76.......2008/38




...........................................2007/15......2006/64......2005/51........2004/44




...........................................2003/36




Fontana.............................2011/228....2010/259.....2009/413.....2008/273




...........................................2007/94.....2006/221.....2005/245.....2004/235




...........................................2003/244




Grand Terrace..................2011/10......2010/6........2009/12.........2008/12




...........................................2007/2.......2006/7........2005/14.........2004/8




...........................................2003/9




Highland...........................2011/55......2010/57.......2009/87........2008/68




..........................................2007/30.....2006/46......2005/70........2004/59




..........................................2003/53




Loma Linda......................2011/14......2010/20.......2009/23........2008/13




..........................................2007/16.....2006/20......2005/11..........2004/16




..........................................2003/11




Mentone...........................2011/11......2010/4..........2009/15........2008/7




..........................................2007/4......2006/5.........2005/12........2004/6




..........................................2003/7




Moreno Valley..................2011/249...2010/272.....2009/435......2008/386




..........................................2007/84....2006/226.....2005/289.....2004/301




..........................................2003/261




Redlands..........................2011/56......2010/56......2009/63........2008/55




.........................................2007/45.....2006/69......2005/72........2004/95




.........................................2003/89




Rialto...............................2011/111......2010/105.....2009/172.......2008/116




.........................................2007/38.....2006/84......2005/122.......2004/119




.........................................2003/117




Riverside.........................2011/371.....2010/434.....2009/532......2008/427




........................................2007/179....2006/376.....2005/458......2004/426




........................................2003/414




San Bernardino.............2011/197.....2010/241......2009/382......2008/241




........................................2007/96......2006/203....2005/218.......2004/220




.......................................2003/259




Yucaipa/Calimesa........2011/49.......2010/59........2009/58........2008/40




.......................................2007/36......2006/61........2005/71.........2004/66




.......................................2003/73




It is interesting to note that most of the communities took a severe downturn in volume in 2007, but came back with bigger numbers in 2008 and then rather leveled out the past three years.

Air Fair and Blues Music

August 5, 2011


Escape the heat and head for the mountains. Big Bear is the happening place this weekend. Tomorrow, Saturday, August 6 from 9 a.m. to 4 p.m. the Big Bear City Airport is hosting an Air fair. Entitled Transportation Then to Now, it will feature planes of many types. The admission fee is $2.00 for 12 years and over and $1.00 for 11 and under. Lots to see and enjoy with the air planes from World War II, Skydivers, and much more. To view the schedule of events go to www.BigBearCityAirport.com or call 909-585-3219


Then gates will open at 1 p.m. when Moonridge Animal Park celebrates with the "Blues for the Zoo" concert. Fine food, local artisans and bring along your beach chairs and blankets for festival seating. 3 p.m. to 7:30 p.m. at the Swim Beach Outdoor Amphitheater, Big Bear Lake. For more information http://www.bigbear.com/

Ant Control

August 4, 2011




I entered my kitchen yesterday morning and found my countertops crawling with itsy bitsy brownish ants. There was no food for them to be after, but there they were coming up from the floor in a steady stream. I remembered that I had read in one of the Jerry Baker books about household tips that cinnamon would deter ants. Fortunately I had a jar of ground cinnamon and after I wiped off the ants with wet paper towels, I lavishly sprinkled it on the countertop and on the on the spot where it looked as though they were entering. Since cinnamon is a wonderful smell at breakfast time, I hoped that it would in fact rid my kitchen of the army of ants.




When I returned home for lunch there was not an ant to be seen. I don't know how the cinnamon works, but it was a pleasanter solution that insecticide. Of course, I have to wipe up the dry brown powder. Let's hope that the ants do not reappear.




I am going to try another one of Jerry Baker's formulas. Put peppermint extract in a spray bottle with water. Spray my counter and the entry points and watch to see if no ants invade.

Short Sales May Define the Real Estate Market

August 3, 2011


In a quick check of the number of short sales in the active listings posted in the CRMLS for the fourteen communities that I have been tracking for several years, I found that the short sale inventory in most of these communities represents 50% of what is for sale. Moreno Valley still has the highest percentage at 59.4%. Redlands has the lowest percentage at 28.2%.


Buying a short sale property may prove to be an excellent value. However, prospective buyers need to recognize that going from the initial offer to a completed transaction may require patience and perseverance.


While the lender will ultimately decide on the price, terms and conditions of an acceptable offer, the seller/owner must decide whose offer to accept to be submitted to the lender for approval.


It can take a long time to receive lender approval. The more straightforward the offer, the better the chance of approval.


Also, most lenders will not pay for repairs or for termite work, septic inspections, homeowners past dues, etc, etc. If the appraisal calls out repairs that must be made, chances are the buyer will have to pay for them as often the seller has no money to contribute which is why the property is a short sale in the first place.


Buyers should do inspections while they await a response from the lender. Buyers need to know what they may be getting into in extra costs.


Short sale rules and regulations have come a long way since 2008 and lenders, sellers, buyers and agents are adapting to this segment of real estate sales.

Interesting Characteristics Of Today's Real Estate Market

August 2, 2011


In any market, there is a product that folks want to buy and folks want to sell


Sometimes there are more buyers than sellers and sometimes there are more sellers than buyers. If you check the numbers I post of listings and pendings, I believe that you would find that over the past months they reflect a fairly consistent volume of both listings and pendings. However, a characteristic of this real estate market is that there are seemingly a large number of potential buyers who attend open houses and who are working with an agent, but who are reluctant to write up offers. When they do write an offer, it will generally be lower than the asking price and will include a request that the seller pay the buyer's costs. Buyers asking the seller to pay their costs has become almost routine.


Another characteristic that sellers need to prepare themselves for is that buyers will have a professional inspection and will expect the sellers to make repairs of almost all the items called out by the inspector.


A third characteristic is that a potential buyer will generally not be willing to enter into the usual back and forth negotiations about price and terms. They submit an offer and seem more than willing to walk away if it is not accepted.


Probably all of these characteristics are rooted in "fear" rather than "desire" the two emotions that enter into a selling scenario.

Listing, Pendings and Back-ups as of August 1, 2011

August 1, 2011


As is my custom, I check the number of active listings, pending sales, back-up sales and calculate the ratio between what is still available for sale and what has entered escrow. The back-up category typically reflects those properties that have an accepted offer, but the offer has significant contingencies.


Banning/Beaumont.......List/530......Pend/209......Back-up/89.....Ratio/.562


Bloomington...................List/65........Pend/56........Back-up/20.....Ratio/1.169


Colton..............................List/115.......Pend/100......Back-up/47.....Ratio/1.336


Fontana...........................List/675......Pend/507......Back-up/215...Ratio/1.070


Grand Terrace................List/37........Pend/18.........Back-up/8.......Ratio/.703


Highland.........................List/174......Pend/112........Back-up/58.....Ratio/.977


Loma Linda....................List/45........Pend/34.........Back-up/16......Ratio/1.111


Mentone.........................List/25........Pend/14..........Back-up/10......Ratio/.960


Moreno Valley................List/768......Pend/485.......Back-up/221....Ratio/.919


Redlands.........................List/245......Pend/95.........Back-up/71......Ratio/.678


Rialto..............................List/292......Pend/255.......Back-up/66......Ratio/1.099


Riverside........................List/1271.....Pend/763........Back-up/410....Ratio/.923


San Bernardino.............List/687......Pend/399........Back-up/109....Ratio/.739


Yucaipa/Calimesa.........List/238......Pend/105........Back-up/67......Ratio/.723


As I look back to August 1, 2010, the numbers have remained within a fairly consistent range. No glut of active listings and ratios pretty similar to what they were at that time. I wonder....if we had more active listings would the ratios go up or down?