It's a Holiday Weekend - Picnic Anyone?

August 31, 2012
On Monday, we have a holiday that began as a way to pay tribute to the contributions and achievements of American workers. Over time it has also come to symbolize the end of summer and is often a time for families to gather for picnics.
This weekend is also the time when the San Gorgonio Wilderness Association will hold its final Mill Creek Cleanup Day. Bring your family and your picnic on Saturday to the Thurman Flats Picnic Area on Highway 38 approximately 3.5 miles northeast of the Mill Creek Ranger Station. From 9 a.m. to 1 p.m., volunteers will remove trash and weeds from the picnic area and along the creek. There will also be an opportunity to learn about the "Leave No Trace" program which is designed to minimize human impact on the forest and other outdoor recreational areas.
The cleanup is sponsored by the U.S. Forest Service, REI, TheSnowmelt.org and the San Gorgonio Wilderness Association (SGWA).
For more information contact sgwa@earthlink.net

Sorry, Sellers, It Has Become a Common Condition

August 30, 2012
Homeowners who have not been home sellers in the past 5 or so years can be surprised when they receive an offer. Not because offers from buyers have been somewhat scarce, but because the buyers are asking the sellers to pay their closing costs. Lenders allow sellers to pay a buyer's closing costs up to an amount equal to 6% of the purchase price depending on the type of loan.
Why do buyers ask? Probably because they can. As we are all aware, the past several years have been tough ones for sellers and, to a degree,  for buyers. Lenders have tightened their standards and buyers have been short of cash. If the only way a buyer can come up with the necessary funds to purchase a property is to have the seller pay some or all of their costs, a seller, however unwillingly, may rather do so than to lose a sale.
In reflecting on how commonplace the request for buyers' costs has become, I also trace some of the practice back to when lenders changed the rules about credits to buyers. Once upon a time, buyers asked for a carpet allowance (and sellers even offered allowances in the listing) or a roof allowance, etc. Lenders decided that buyers did not always use this additional money for the sated purpose and the improvement to the property was never completed. At that time real estate agents changed a carpet allowance into a request for closing costs. Then lenders set rules as to how much such credits could be and here we are.
Sellers can always counter out such requests or buyers can pay a little more and have the seller agree to credit.
In the end for both parties, the issue is the bottom line - how much cash the buyer will need and how much the seller will net out of the sale.

Maybe It's Time to Think About Selling

August 28, 2012
For those homeowners who have been waiting for the real estate market to improve, we may be just about at that point. This morning the Case-Shiller reports announced that home prices had actually seen an upward tick It is important to remember that an "upward tick" is not a jump to pre-recession levels. Our numbers show that the lack of homes for sale and the number of potential purchasers has made multiple offers common again. Multiple offers tend to push prices upward.
If you are thinking about downsizing or up sizing your living quarters, call a professional real estate agent and ask for a market analysis. In our market are of Inland Southern California, the fall season can be a favorable time to sell. The weather is generally beautiful, the scenery can be breathtaking and for can be motivated to be in a new home for the holidays. All of this elements work in a seller's favor.
If you are not ready to make a move quite yet, take this fall to make any repairs that would enhance the saleability of your property. Consider replacing windows. Consider cleaning the garage. Consider stripping any wallpaper and repainting walls. Have a heating and cooling company check out your systems. Have a licensed roofer check your roof. Have a structural pest control company check for termites and dry rot. Even if you do not want to sell in the near future, these are all good maintenance activities. If you do decide to sell, you will not be surprised when a buyer asks for repairs to be made.
Obviously, those of us in the business of selling real estate would love for homeowners to put their homes on the market. As a homeowner, you can make a decision as to what is the best decision for you - sell or stay put.

Presenting Offers in Today's Real Estate Market

August 27, 2012
It seems that we have entered a very competitive real estate market. In more and more instances, real estate agents are writing offers only to discover that the listing agent has already received an offer or more. All agents need to remember that the Department of Real Estate regulations require that all offers be presented to a seller unless the seller has specifically been instructed by the seller to not present other offers. In the case of bank-owned properties the bank may have directed the agent to only present one offer and no others until that offer has been accepted, rejected or failed to meet the datelines in the purchase agreement. In standard sales, the duty to present all offers continues until the sale is completed (Escrow is closed.)
It is frustrating for a buyer and for a buyer's agent when they receive no response from a seller. However, a seller is not required to respond to offers that the seller is rejecting. When there is no response, written or verbal, buyers sometimes wonder whether their offer was presented. For that reason, it is good practice to have a seller initial the offer showing that the seller has seen it.But again, this is not a legal requirement.
If a buyer's agent so desires, he/she can request that they participate in the presentation. A long time ago, before e mails and FAXes, it was common practice for an appointment with the seller to be made by the listing agent and both agents would sit down with or conference call with the seller. In todays real estate practice this is an exception to the usual procedure.
As a buyer's agent, making sure that your buyer knows the comparables, has a preapproval letter, and writes the best offer that the buyer is able to submit is probably the best way to compete.

A Walk In the Morning for a Purpose

August 24, 2012
This Sunday, August 26, 2012, the Ontario Convention Center will be the site of the World of Wishes Festival Area and the inaugural Inland Empire Walk for Wishes. The event will benefit the Make-a-Wish Orange County and the Inalnd Empire. The registration fee today through midnight is $35. You can register on-line  at http://facebook.com/events/158937854240079/ You can register on-site on Sunday for $40.
The time of the event is 8:30 am to 12:00 noon.
The walk is a half mile walk and the event will have entertainment, inspiration and lots of family fun.
It will be an opportunity to learn more about the Make-a Wish Foundation and to meet some of the recipients of their grants.

Check Out This Real Estate Market Data

August 22, 2012

Dave Coy, President of Century 21 Lois Lauer Realty, recently did an analysis of data reported though the CRMLS.. I thought that you might find this data on listings and sales of interest.

How do Home Buyers Find Their Home?

August 21, 2012
The California Association of Realtors (C.A.R.) recently did a survey of the home buying process. They surveyed home buyers by asking "How did you find your home?" I do not know the controls that might have been used in the survey process, but it definitely showed that professional real estate agents are valuable in the home buying process.
The ssurvey showed that 80% of those surveyed attributed their finding a home to a real estate agent. 13% said that they found the home on a website. 4% found their home from seeing a sign on the property and 3% found their home at an open house. Interestingly, it seems that an insignificant number found their home from an ad in the newspaper. It seems that searching the web has overtaken searching for properties in the newspaper ads.
In the current real estate market of 2012, agents who work full time are most likely to know when a property that meets a prospects requirements comes on the market. In this super-competitive environment, having professional eyes looking for a home for you can certainly enhance your chances of finding a home. Often, by the time a property is on a wbsite it may already have offers.
The best advice for the serious buyer of 2012 is to select a compatible agent and be sure that they can reach you quickly.

"Time is of the Essence"

August 20, 2012
" Time is of the Essence" is a phrase found in the California Association of Realtors contracts. Some folks think it means that it is important to complete the contractural agreements as quickly as possible. Such an interpretation is not quite correct. The phrase "Time is of the essence" in contracts is a legal phrase which carries with it the obligation of the parties to the agreement to complete any actions described in the contract in the amount of time that the contract states. Since sometimes the time frames were left blank, the C.A.R. contracts have preprinted default times. These contracts do allow for these preprinted time frames to be extended or shortened to suit particular situations. However, once a contract is fully signed by the contracting parties, it is important to fulfill the actions referred to in the stated time. If a party fails to meet the time frames, the other party has actions that can be taken to cancel the agreement.
In the past several years, when the market had so few buyers, sellers were inclined to let some time frames slide. We are seeing that sellers are now wanting buyer to perform as stated in the agreement. With multiple offers and sometimes another buyer waiting in the wings, understanding the phrase "Time is of the essence" becomes important.
Legally, however, the parties to the contract must allow a "reasonable" amount of time for an action to be performed. It is always preferable to have the "reasonable" time printed in the contract. To state no time frame allows "reasonable" to be interpreted and one partiy's interpretation may differ from another.
When writing contracts, clarity is always important so that all parties are clear about their obligations.

Where is the High End Selling in Our Market Area ?

August 14, 2012
I have been posting the numbers for the closed single family sales over $400,000. Remembering that many of the fourteen communities that I track had median prices at $400,000, it is a market segment to watch as real estate recovers.
For the year, over $400,000 sales have remained non-existent in  Bloomington, Grand Terrace, Mentone, Moreno Valley and Rialto. Redlands, Riverside and Yucaipa have shown some improvement  Colton, Fontana and San Bernadino have had one or two sales reported to be over $400,000.
This numbers for this market segment in Redlands, Riverside and Yucaipa have been remarkedly consistent. Redlands from 5 in January to 13 in July; Riverside from 18 in January to 22 in July; Yucaipa from a low in March of 2 to a high in July of 7.
Are the upper end buyers beginning to enter the real estate market?

Wait No More !

August 13, 2012
If you are planning to purchase a single family hoome in 2012, It is time to be prepared. I was showing property on Saturday in the $250,000-$300,000 price range and it was almost like an open house. Agents with clients were making appointments one right after the other. Prospective buyers were a bit overwhelmed by the fact that a property new on the market in the morning might have an accepted offer by the afternoon - and the accepted offer might be over the listed price. The competition for properties has become a challenge for buyers and their agents.
If you are in the real estate market to purchase a property, it is important to meet with a lender and become "pre approved" This means that you have applied for a loan, the lender has run your credit and checked your FICO scores. You must also have copies of your bank accounts in order to show that you have the funds necessary for your down payment and the costs of sale. If you do not have a lender in mnd, your agent can supply you with names of lenders with whom they have succesfully done business. When you make an  offer, some listing agents might also require you to be prequalified by a specific lender. You do not necessarily need to use this lender, but the agent has trust that they will properly judge your ability to complete a purchase.
While the inventory of homes for sale is as low as it is in our market area, the competition for homes is likely to remain fierce. Be prepared.

A Trip to Big Bear For the Weekend

August 10, 2012
While we are experiencing record breaking heat, this weekend will be a great time to visit the cooler mountain air.
The Big Bear City Renaissance Faire opens Saturday and Sunday from 10 a.m. to 6 p.m. The Faire celebrates all things Elizabethan this weekend and next weekend.
An Enchanted Shire will have knights jousting on horsseback, archery contests, battles, games and four stages of continuous concerts.
Come in costume or not and enjoy crafts, food and alla the special events.
The site of the Faire is located at 39115 Rim of the World Drive, Fawnskin. General admission is $15 for a single day; general weekend pass is $20.
Visiting the Renaissance Faire will be a "cool" way to excape the summer heat.
For additional information: www.bbvrsi.org or 1-800-424-4232

Median Prices - July -January, 2012

August 9, 2012
We still have a "bouncy" market.One month an up tick, next month a down tick. No trend as yet. Here are the numbers. Remember that this is not a scientific determination. It is simply taking the number of properties reported sold, dividing by two and selecting the reported selling price of that property.
Banning/Beaumont.......Jan/156,000......Feb/145.000......Mar/158,000......Apr/160,000......May/151,000
.........................................June/158,500......July/149,000
Bloomington..................Jan/110,000......Feb/132/140......Mar/175,000......Apr/145,000......May/129,000
........................................June/149,000.....July/159,000
Colton.............................Jan/125,000......Feb/121,500......Mar/114,000......Apr/120,000......May/139,000
........................................June/110,000.....July/125,000
Fontana..........................Jan/210,200.......Feb/210,000.....Mar/197,000......Apr/215,000......May/220,000
........................................June/198,000.....July/216,000
Grand Terrace................Jan/179,000......Feb/145,000.....Mar/199,000......Apr/170,000......May/182,000
........................................June/194,600.....July/185,000
Highland........................Jan/160,000.......Feb/145,000.....Mar/184,000......Apr/157.000......May/225,000
........................................June/181,000.....July/175,000
Loma Linda....................Jan/230,000.......Feb/185,000.....Mar/295,000......Apr/230,000......May/189,000
........................................June/185,000.....July/270,000
Mentone........................Jan/115/130.......Feb/140,000.....Mar/129/155......Apr/118,000......May/180,000
........................................June/80,000.......July/110/170
Moreno Valley..............Jan/147,000.......Feb/144,000......Mar/153,000......Apr/149,000......May/152,500
........................................June/158,900.....July/160,000
Redlands........................Jan/178,000.......Feb/186,000......Mar/220,000......Apr/190,000......May/220,000
........................................June/223,000......July/245,000
Rialto..............................Jan/163,000.......Feb/165,000......Mar/165,000.......Apr/175,000......May/160,000
........................................June/163,000......July/165,000
Riverside........................Jan/195,000.......Feb/180,000......Mar/190,000.......Apr/190,000......May/189,000
........................................June/208,000......July/204,000
San Bernardino.............Jan/110,000.......Feb/100,000......Mar/105,000.......Apr/110,000.......May/114,200
........................................June/117,000......July/120,000
Yucaipa/Calimesa.........Jan/189,000.......Feb/160,000......Mar/170,000.......Apr/180,000.......May/154,000
.......................................June/179,000......July/181,500
There you have it. Certainly these numbers are better thaan a year ago. Check the blog posts of August 2011. It will be interesting to watch the numbers as we begin to experience a real estate market where demand seems to be greater than supply. Multiple offers are already pretty common and buyers are more willing to offer over the listed price. When lenders get on board perhaps we will see an upward trend. At the moment, appraisals are still a challenge when a sale goes higher than the past three months comparable sales.

Sold Single Family Homes - July 2012

August 8, 2012
For those of you who have an interest in numbers, I post each month the number of closed transactions as they are reported though the CRMLS. I add the numbers for last year (2011) and for the peak of the boom market (2006) just for comparaison. It is always interesting to note that the volume does not change substantially. The one time it did was between 2007 and 2008.
Banning/Beaumont..........2012/111......2011/152......2006/84
Bloomington.....................2012/20........2011/25........2006/20
Colton................................2012/29........2011/49........2006/61
Fontana.............................2012/207......2011/228......2006/221
Grand Terrace...................2012/16........2011/10........2006/7
Highland............................2012/54........2011/55........2006/46
Loma Linda........................2012/13........2011/14.......2006/20
Mentone............................2012/11........2011/11........2006/5
Moreno Valley..................2012/209......2011/249......2006/226
Redlands............................2012/67........2011/56........2006/69
Rialto..................................2012/111.......2011/111......2006/84
Riverside............................2012/402......2011/371.......2006/376
San Bernardino.................2012/154.......2011/197......2006/203
Yucaipa/Calimesa.............2012/61.........2011/49........2006/61
There you have it. A factor that we see influencing the number of transactions going forward is the low inventory of homes for sale. When you are receiving more than one offer on a property, you have other possible transactions that will not be taking place. For example: if ten potential, qualified buyers write offers on the same property, nine of them will not show as having purchased a property. Demand has returned to the market. Now, where is all that "shadow" inventory?

Once More - Are You Prepared?

August 6, 2012
I have posted information about disaster poreparedness many times. Some of the important information included knowing how to contact other family and friends, having water and food available, having at least one flashlight and making sure the battery is still working. You can google "disaster preparedness" and get complete lists of supplies that should be kept on hand.
Well...Saturday night we experienced a power outage. It began around midnight when lights went dim but not totally out. However, every electronic system that has a back-up battery began beeping. Has anyone every told you how to stop this incessant beep, beep,beep?
The computer plugged into a back-up battery is beeping. The FIOS back-up battery is beeping. These two I could silence by unplugging. The oven and microwave for some reason started beeping. Nothing on the control panels would permit me to turn them off. Ultimately, I went to the circuit breakers and turned them off. Then there was the alarm system. I had no idea what to do or if there was anything that could be done. (I will be checking with the monitoring company today.) Groping in the dark, I set off the fire alarm which added a new noise to the beeping going on throughout our house. The alarm company tried to call us bt, of course, the phone didn't work. We had turned off our cell phnes for the night so those didn't work either. We had a nice visit from the fire department when they arrived.
I am suggesting that another item be added to one's list of disaster preparation actions - knowing how to turn off the beepers that let you know your electronics are now running on their back-up battaeries.
It certainly is a different world today!

Arts and Crafts Fair in Temecula

August 3, 2012
Sunday, August 5, 2012 the Maurice Car,ie Winery will be host to an arts and crafts fair. The lovely grounds of the winery will be the site of craft vendors, painters, potters, jewelery6 makers and other handmade items. Bring a picnic and browse the booths and sample the wine.
This is a fun way to enjoy a summer Sunday!
Maurice Car34225 Rancho California Road. Temecula
www.mauricecarriewinery.com

Is Buying Better Than Renting?

August 2, 2012
Is buying a home a better financial option than renting? This has been a debated questions for as long as I have followed the real estate market. The answer is "It depends". Some of the factors to be considered are :
1) How long do you plan to be in a particular location?
2) What are local rent prices versus mortgage payments?
3) What other costs are associated with home ownership? property taxes, upkeep,
4) What are the non-financial benefits of owning one's own home?
The Internet housing site, Zilllow, just published a report analysing more than 200 metropolitain areas and 7,500 U.S. cities. Interestingly, Zillow found that buying is a better option in the Riverside-San Bernardino area if you live in the home for at least two years.
This analysis took into consideration the low home prices, low mortgage rates as well as the rising rental prices.
If you are presently a renter and are thinking of buying a home, you can do the calculation. This calculation cannot predict whether a real estate market will see rising home prices or falling home prices. However, it can estimate whether your monthly housing expense is better, worse or the same if you buy or rent.

Listing, Pendings and Back-ups - August 1, 2012

August 1, 2012
This month it looks as though our real estate markets have made a change. The ratio of properties with accepted offers has grown and the number of still active listings has shrunk. This reflects the fact that new listings are quickly viewed by prospective purchasers and often receive multiple offers on the day they appear in the CRMLS.
Check the numbers for yourself.
Banning/Beaumont..........List/251......Pend/249......Back-up/135......Ratio/1.959
Bloomington...................List/18........Pend/57........Back-up/13........Ratio/3.8898
Colton............................List/37........Pend/91........Back-up/39........Ratio/3.514
Fontana..........................List/235......Pend/526......Back-up/244......Ratio/3.277
Grand Terrace................List/18........Pend/25........Back-up/13........Ratio/2.111
Highland.........................List/74........Pend/120......Back-up/120......Ratio/2.459
Loma Linda....................List/26........Pend/31........Back-up/22........Ratio/2.038
Mentone.........................List/3..........Pend/25........Back-up/11........Ratio/12.000
Moreno Valley................List/196......Pend/529......Back-up/287......Ratio/4.214
Redlands.........................List/139......Pend/122......Back-up/66........Ratio/1.353
Rialto..............................List/87........Pend/222......Back-up/90........Ratio/3.586
Riverside.........................List/465......Pend/842......Back-up/379......Ratio/2.626
San Bernardino...............List/285......Pend/422......Back-up/167......Ratio/2.067
Yucaipa/Calimesa...........List/107......Pend/132......Back-up/81........Ratio/1.991
The numbers come from the property information posted in the CRMLS. Just compare them to 2011 when Riverside had over 1000 active listings and most of the fourteen communities had at least twice as many active listings as they do in 2012. The highest ratio of accepted offers to listings was .828. When the media reports that the number of units sold has decreased, some of the decrease is the result of the low inventory. When a property receives ten offers in the first twenty-four hours that it is posted, you have nine potential sales that cannot take place.