California Real Estate Sales

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La Jolla, CA—Southern California’s housing market continued its step-by-step climb up from the January-February bottom as both sales and prices saw gains last month, a real estate information service reported.

A total of 19,181 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 13.3 percent from October’s 22,132, and up 14.7 percent from 16,720 for November 2008, according to MDA DataQuick of San Diego.

Sales almost always decline from October to November. The year-over-year increase was the 17th in a row. In DataQuick’s statistics, which go back to 1988, the average November had 22,312 sales.

Sales of newly built homes saw an unexpected jump last month. A total of 2,039 new homes were sold, the highest of any month so far this year, and 25.5 percent ahead of 1,625 for November 2008.

Sales have been stoked in recent months by several factors: A federal tax credit for first-time buyers, which had been set to expire last month before it was extended and expanded; robust investor activity, especially inland; super-low mortgage rates; the availability of government-insured, low-down-payment mortgages for first-time buyers; and the allure of a potential “deal” on a distressed property.

“This market is still really lopsided. Foreclosures and short sales are huge factors. There’s still not a lot of discretionary buying and selling outside the more affordable markets. Anybody who can sit tight is doing just that. The market won’t fully rebalance itself until financing becomes available for the higher price ranges,” said John Walsh, MDA DataQuick president.

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If you are investing in Real Estate in the Los Angeles Foreclosure Market you need to have your agent follow these 8 tips to help you win more deals. See below for more tips and to get a list of foreclosures near you.

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Lee Williams is a Los Angeles South Bay Area Real Estate Agent who has appeared on MSNBC, the Oprah Winfrey Show and TechTV. Dedicated to serving investor, first time and move up buyer clients with one simple rule, you come first.  Lee Williams is a Realtor(r) primarily serving Palos Verdes, Rancho Palos Verdes, Torrance, San Pedro, Lomita, Carson, Manhattan Beach, Hermosa Beach, and Palos Verdes Estates.

Contact Lee at (310) 882-5428 email: LeeWilliams@KW.com or visit http://LeeWilliams.YourKWAgent.com

DRE# 1726182

Representing buyers through REO transactions can provide an extensive education that they never told you about in your Realtor training classes! Our team has written hundreds of offers and have been successful because we do things right the first time.  Here are a few tips adapted by Lee Williams from an article written by Carl Medford for anyone looking to increase the number of offers you get accepted.

1. Don’t expect the REO listing agent to communicate with you if you haven’t sent in an offer. That means answering their phone, emails, carrier pigeons or visits to their office. They get hundreds of calls from Realtors® ”looking to submit an offer”. Talk is cheap, put your offer in writting, if it is too low they will be more willing to help you make it more competetive once you’ve shown them you and your buyer are serious. If you do reach out, send an email and be brief or get right to the point.

2. You will need to plan on writing your offer blind. Do your homework and submit an offer that makes sense to your buyer based on the data you give them.  Lising agents want your highest and best offer up front and if there is a lot of competition, you may miss your chance to raise it later on. 

 3. Competent REO listing agents will provide Instructions for Writing an Offer. These differ with every bank and can be a little frustrating but are there for a reason. Exact instructions HAVE TO be followed, or your offer can be flat out rejected. Fill out EVERY associated document and have your buyers initial EVERY page, even if there’s no specific place to do so.  Make it easy for the listing agent to like doing business with you based on your complete offers and attention to detail.

 4. Write in REAL projected close of escrow dates. Give yourself at least 45 days in the current market. If you can close sooner, great. If you don’t close on time, your buyer will end up paying per-diem charges of up to $150.00 a day for being late to the closing party, regardless of who is causing the delay.  

5. Banks want to see 1%-3% for the good faith deposit. Educate your buyers – a $500.00 check won’t cut it.

6. Ask for standard 17 days contingency time periods – they will probably be changed in the banks Addendum (Counter Proposal), but at least ask.

7. DO NOT ASK FOR ANY SECTION 1 REPAIRS!! Not only will they say no, but if you have an FHA loan, you will TOTALLY mess up your transaction. Leave the Section 1 fields blank.

8. DO NOT STATE ANYWHERE IN THE CONTRACT THAT YOU WILL BE ORDERING INSPECTIONS. You automatically have the right to do so and can do so at any time. However, in you have an FHA loan, anything in writing that says there may be Inspection Reports could scuttle your deal (see the point above). Pay for all inspections at the time of the inspections and DO NOT pay them in escrow. Do not send them to the title company or the lender. I am NOT saying to hide them – they are a part of the discloures for the transaction.

9. Know the law when selecting a Title Company.  This is a big area of contention because Assembly Bill 957 (Signed in Oct 2009) protects consumers from REO companies forcing buyers to use the Bank/Seller selected escrow company. Not all REO listing agents are aware of this new requirement. However, should you choose to go with the bank’s prefered provider, they must send your buyer an Addendum explaining their rights to select their own title company and they must sign to waive this right.

10. Ask for a home warranty. They’ll probably counter it out, but sometimes they leave it in! Always ask – they can only say no. Your buyer will appreciate the effort.

11. Ask them to cover any and all applicable HOA fees. They might do it. Then again …

12. Ask them to cover County and City transfer taxes. And, as explained in the points above, they just might do it. And maybe not. Doesn’t hurt to ask. If they won’t, their Addendum will automatically counter it out. Some do. Some don’t. Ask.

13. Don’t ask for any personal property in your offer. Banks cannot convey personal property. This includes appliances. You can state, “All items as per the MLS.” Anything that’s in the property when it closes is a bonus!

14. Completely fill out the Liquidated Damages and Dispute Resolution sections. Make sure all parties sign and initial EVERY place required. They may sign them. They may counter them out in their Addendum. You do due diligence on your part, then they will do whatever they are going to do …

 15. Write “PROPERTY TO BE PURCHASED AS-IS” into the contract. Usually on page 6, Section 25.

 16. You can ask for closing cost credits from the seller. Specify the amount required and make it very clear. Keep in mind the bank is interested in net pricing, so set your offering price accordingly.

 17. Make sure that all Documentation required by the listing agent is included.

• Offer docs
• Copy of the deposit check
• Pre-Approval letter
• Verification of Funds
• FICO Scores, etc.
• Addendums
• Transaction Cover Sheets
• Disclosures

EVERYTHING they ask for. Take time to make sure they are properly filled out, signed and initialed as required. Your offer will most likely be rejected if everything is not filled out perfectly and something they ask for is not included.

 18. Email the offer to the REO listing agent. They want offers in email format because they need to upload them to the asset manager’s websites. Make it easy for them. Put all the signed docs together, scan and email them to the REO listing agent. USE THE ADDRESS THEY TELL YOU TO USE. If you don’t have a multi-page scanner to make this easy for you, it’s time to get one. You’ll also need a program to convert the docs into .pdf format. Scan everything at no more than 300 dpi in BLACK AND WHITE. You have to be able to email the docs – large files will jamb the listing agent’s box and may not get there at all. *Extra points for sending seperate PDFs for the cover sheet w/ offer, bank docs and pre-approval letter, escrow check with account number crossed out and a PDF with the remaining disclosures.

19. ASK FOR CONFIRMATION OF RECEIPT! Include the words, PLEASE CONFIRM RECEIPT OF THIS OFFER in your email with the offer docs. If you are lucky, they will!! If not, bug them until they respond. Don’t EVER take for granted they have it.

20. Prepare to wait. For up to a week. And DON’T CALL!! You may end up with a very rude person telling you that they will notify you when they get a response to your offer. And then, don’t expect them to do so. Your only notification may be the listing going pending on the MLS. Which is a clue that your offer was rejected. Don’t take it personally. Listing Agents aren’t there to teach you. Coming to the table 110% prepared with make you shine in this business.

Lee Williams is a successful agent in Los Angeles real estate working investors, first time home buyers and higher end properties. The internet is great but no substitute for working with a professional in tune with your specific situation.  Contact Lee at (310) 882-5428 or email LeeWilliams@KW.com

6 Marguerite Drive
Rancho Palos Verdes, CA 90275

7 Bedrooms
9 Bathrooms
Approx 10,000 sqft
Lot. Approx 1.14 acres
List Price: $6,975,000

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PERFECTION IN PALOS VERDES! Spectacular designer estate on over an acre of usable land with panoramic ocean, Catalina and whitewater views! This special home is in better than new condition and is located on the beautiful Palos Verdes Peninsula with award winning schools, clean air, no traffic and very little crime. Enter the gated estate through an electric gate and know that you have arrived at a very special residence reserved for the very few. The main residence is close to 10,000 SF and then there is a separate, just as nice guest house. The property features a home theater, a game room with wet bar, a library, his & hers offices, a gym and the most dramatic entry you could imagine flanked by a grand double staircase w/ 30′ ceilings. The grounds are complimented by a sparkling pool with fountains, a cascading spa, enormous flat lawn area, a large BarBQue island with 3 Viking grills, a refrigerator, ice maker and a custom granite “fire table” to keep you cozy on cool evenings.

Listing Courtesy of Bill Ruth, Keller Williams Palos Verdes

Buyers Contact: Lee Williams (310) 882-5428 or LeeWilliams@KW.com

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Good discussion of the rules for Main Street being different from the rules of Wall Street. Often it makes financial sense to walk away.  From a business stand point most companies wouldn’t think twice. They make their decisions based on dollars and cents.  The factors that affect us as home owners involve social consequences that reach much deeper on a personal level. 

I found it interesting the same folks who defend big business (Banks and Mortgage Lenders) over job cuts, executive bonuses and low instance of loan modifications are the same folks who besmirch a home owner’s honor for walking away.  Who’s right?