Home Seller Tips
2021 Real Estate Market Predictions for Orange County, CA
Today one of our favorite forecasters, Steven Thomas, gave his thoughts on closing out the crazy 2020 Covid real estate market and what we expect to see here in 2021. If you love stats, be sure to subscribe to our email list, as we send out Reports on Housing statistics monthly. These reports will keep you on top of exactly what is happening right now with property prices, average days on market, and demand.
We’ve had a really interesting year in real estate, almost flipped from our normal Orange County trends. We were slower in the spring, obviously due to quarantine and virus setbacks (coined ‘The Pandession’). Then we heated up in summer and are still going strong here in fall, when things usually cool.
The pandemic really made people think about what they wanted in a home. And now, they are going out to get it. Sometimes it’s a larger yard, other times a pool, being closer to loved ones, or relocating to a rural environment. Change is brewing in all levels of our housing market.
2020 has seen a SURGE in Luxury demand and sales, and we are seeing it in our team deals as well. Here’s a visual for a better picture:
Demand far outweighs supply, so almost every listing is selling with multiple offers at this point in time. Will it continue? Read on…
One of the factors that will affect our market significantly is Coronavirus numbers and which way they are swinging. If we end up in quarantine again, it WILL affect all markets, including housing, so keep that wild card in mind as we enter into 2021.
Foreclosure Predictions for 2021
Should you be worried about foreclosures? Waiting for that screaming deal on one??? Not really. Less than 6% of homeowners are on forbearance or late on their mortgage. That’s not enough to create a ‘foreclosure wave’…even if ALL of them get foreclosed on. This chart helps to tell part of the story. In 2006, owners didn’t have much equity. In 2020, owners have a LOT of equity.
Due to this equity, the forbearance options, and the rates driving buyers, Steven does NOT expect any wave of foreclosures in 2021.
What about the Rental Moratorium?
Approximately 20% of renters are late on their rent. At first that number seems like WOW…but…rewind to Oct 2019… and the tardy-on-rent number was ALSO…20%. So landlords aren’t hurt that bad, even though renters are on a break until Jan 31st 2021 with the rental moratorium here in the state of California.
Will Housing Demand Stay High in 2021?
Demand is strongest it’s been since Sept 2012 – eight years. If you think we’ve been busy hustling homes, this year is even busier. Demand is expected to slightly drop during the holiday season for November and December, but it will still be higher than the last 8 years. If you have a home to sell before Dec 31st – get in touch – it’s totally a possibility!
Inventory is the lowest it’s been since 2013 – pushing the average days on the market in OC to under 40. A hot seller’s market is under 60 average DOM….so we are in a hot HOT seller’s market, which not even the election division is extinguishing.
Should I buy a home in OC before 2021?
Short answer: Yes. Interest rates are LOW. Demand is high. Prices continue to go up. Lucky for our buyers, even with these prices.. the payment is more affordable than it would have been a few years ago. Check out this comparison:
Interest rates drive affordability. Right now your payment is SO affordable. If you can qualify to buy, it is a fabulous time to make a purchase. In Steven’s words…’You’ll be kicking yourself if you don’t’ LOL. We know, you don’t have the down payment saved. But let’s have a conversation with a parent or grandparent who has equity, or get you crowdfunding your down payment with Vow2Save.
2021 Forecast according to Reports on Housing
Uncertainty with Covid, vaccines, Washington DC, travel, and employment can all make things sticky. If we continue to experience the same demand, things can get sticky.
- Prediction: Real estate will enter 2021 strong and remain that way for at least half the year.
- Prediction: Appreciation 4-7%. Prices are NOT expected to go down at all in 2021
- Prediction: Upper ranges will continue to rise
- Prediction: Closed sales should double what they were in 2020. (from 4 to 8%)
Want to stay up to date on the Orange County real estate market? Simply fill out the form below and we’ll start sending you Steven’s Reports on Housing via email!
History and Current Rules of Fair Housing
It’s important to remember and understand where we have been, to have the best future possible. Today I had the pleasure of attending Young Professionals’ Network webinar on The History of Fair Housing.
Equality is an important topic of discussion in our country right now. One of the best ways we can honor our Constitution stating ‘all men are created equal’ is through housing.
For the purpose of learning and growing, let’s start with a summary of
Where we went wrong with discrimination in housing:
- ‘Men’ in the quote above meant white men who owned property; not women, nor men of color
- Real Estate boards prohibited women or blacks in the early 1900’s
- Redline (racially segregated) areas where residents could not get a mortgage were established
- Racially restrictive CC&R’s
- Federal Fair Housing Act was not passed until 1968
- Realtor Code did not prohibit discrimination until 1974 (that’s under 50 years ago…)
- Protected class of marital status only recognized since 2005 in California
- Gender identity was not protected until 2012 in CA
- AFFA Rule is rescinded in 2020 by POTUS. This took the teeth out of Fair Housing enforcement.
Yes, we went horribly wrong, but there are many ongoing efforts to bring about equal housing in the last few decades and today. This includes lobbying efforts from the National Association of Realtors, and California Association of Realtors to bring back the important elements in AFFA.
Did you know that nationwide there are 7 Fair Housing protected classes? In CA, there are 24 Fair Employment & Housing protected classes. When it comes to Fair Housing, the greater of regulations apply, not the lesser. So… if you are a landlord in California, you have 24 classes to remember to truly make unbiased decisions with your tenants. To help you, there is a new Fair Housing disclosure that is now included in each California purchase or lease agreement.
Sometimes discrimination can be subtle, or without malice. Here are just a few examples of Discrimination in Housing…some may come as a surprise to you.
What Discrimination in Housing Looks Like:
- Treating anyone unequally
- Failing to show a home or lease
- Offering unequal terms
- Advertising specific terms or preference
- Inquiring about a protected status
- Refusing to accomodate a disability (aka emotional support animals)
- Denying a family with children’s offer because you don’t think your pool or busy street is safe for them
- Refusing to rent an upper unit to an elderly tenant because you feel stairs are too dangerous
- Showing preference for one protected group above another (i.e. preferring a family with children over a gay couple)
- Not renting the home to a family with multiple kids because ‘the children will destroy the home’.
- Not treating everyone with the same professional courtesy (greetings, returning calls, tonality, response time)
- Buyer or agent ‘love letters’; especially those with photos
Up until this year, I was an agent sending & receiving love letters. I had no idea they were an indirect method of discrimination; and our stories previously helped my clients get the deal. 2020 brings about many changes, and I am happy to adjust course to assist in offering a better opportunity for all. Please, encourage other professionals in the industry and owners to practice making selling and leasing decisions based on criteria that does not exclude. I will recommend future sellers do not read letters during the decision making process. We can all improve from here and be better at this.
Here’s an interesting infographic with the most common Fair Housing complaints from 2018:
If you know someone who has been party to discrimination in housing, it’s important to educate, and to speak up. Here’s a link to submit a violation:
The only way we change the cycle and truly offer equal housing to all humans is through a system of ethics, awareness of implicit bias, and accountability measures. Feel free to comment your thoughts or experiences below – let’s bring about some positive acknowledgment to build better, stronger, more diverse communities together.
Read Full Post | Make a Comment ( None so far )Endorsed by NAR for Foreclosures and Short Sales
Short Sale & Foreclosure Resource
Struggling to make your mortgage payment?
Today we sharpened our short sale and foreclosure sword – YES, it’s a battle! Armed with a new designation from the National Association of Realtors (NAR); called Short Sale & Foreclosure Resource (SFR), now we’ve got the most recent tools to fight a foreclosure and win.
There’s plenty of talk about a potential foreclosure wave once all the COVID forbearance terms have come to an end.. so its important to stay fresh on bank policies, foreclosure timelines, and tools to use to save your property from foreclosure, right?!
Yes, we made it through the recession of 2007-2011 closing plenty of bank owned properties and short sales, but that was 10+ years ago. Platforms and policies have changed.
REO stands for ‘Real Estate Owned‘, and is a common term for a property that has been foreclosed. REO’s are property the bank comes to own because the borrower defaulted or could not financially afford to remain in the property. As a foreclosure resource, we can help you STOP your property from becoming a foreclosure, and we can also assist banks in selling off their REO inventory.
Who’s involved in distressed property situations
Servicer – who you make your mortgage payment to, they may or may not own your loan.
Investor – beneficiary entity who owns the promissory note & mortgage or deed of trust on a property.
Borrower – party in distress; typically struggling to make payments or need to sell when equity is negative.
Buyer – potential purchaser of the home
GSE – Government Sponsored Enterprises (Fannie Mae, Freddie Mac, and others in the secondary money market)
Important Foreclosure Terms to Know
Deed in Lieu – Involves swapping your keys in exchange for relief on the mortgage. Sometimes this will lead you to a 1099 for the money returned. Never do a deed in lieu before you understand the tax ramifications.
Loan Modification – Loan Mods are a permanent change in one or more of the terms of your loan. These must be approved by the investor, servicer, and you. It typically reorganizes the mortgage into something more affordable so you are able to stay in your home.
Notice of Default (NOD) – Official notice of default, and begins your foreclosure timeline. All borrowers have at least 90 days to bring a loan current after a NOD is filed.
Notice of Trustee Sale (NOS) – Official notice of when the foreclosure or auction will take place.
Foreclosure Sale – The actual sale of the property where the title is transferred. Homeowners become tenants upon sale, and lose rights to property ownership.
What are my options to avoid foreclosure?
There are many, but you need to act fast and regularly. One place to check is the Consumer Financial Protection Bureau (CFPB) to help you resolve any shady practices in your loan.
Another option is HHF – Hardest Hit Fund which has been extended through Dec 31st 2020. This program is in 18 states and it helps struggling homeowners with mortgage assistance.
MakingHomeAffordable.gov has many trusted routes you can take, be sure to research so you know your most up to date options. Here are their current tips to avoid foreclosure.
Furthermore, there are local nonprofits in many areas who can connect you with the right resources to save your home. Contact Angie by text at 949.338.7408 ASAP if you would like an Orange County referral.
Reinstatement vs Redemption period
Reinstatement is the 90 days you have to reinstate your loan after you’ve received your official Notice of Default (NOD). Redemption periods do not apply to all states, and they begin after the property is sold in a judicial foreclosure. California is NOT a redemption state with judicial foreclosures…once the property is sold at auction it is gone.
How long does it take to foreclose on a property?
Every state is different, and has different laws. It usually takes anywhere from 90 days to 3 years, depending on the condition of the market.
Short Sale to Avoid Foreclosure
In order to complete a short sale, you must show hardship. Every bank defines this differently; but it can include illness, job loss / unemployment, divorce, 50+ mile job relocation, business failure or natural disasters.
Most banks have a ‘Short sale package‘ available on their website, and this includes a list of the documents you need to submit in order to be considered for a short sale. Some of the common items requested in a packet are:
Listing agreement
Short sale disclosure form
Listing agreement addendum
Authorization to release info form
Federal & State disclosures
Before you fill out the paperwork above it’s important to check for recourse in your state, or you could owe a tax bill on the amount you’ve been forgiven. If you’re unsure about this, check with your CPA.
Furthermore, you must get approval. Approval is a gift.. even though it doesn’t feel like it 😦 Not only do you need approval from your mortgage company, you’ll also need approval from any and all junior lienholders including 2nd mortgage, HELOC, & other liens. If you do not have approval from ALL liens then the short sale will not happen, which is why you need to communicate with your debtors early and often!
Sometimes additional costs will be paid by the investor, but you have to know how to work this into your Estimated Closing Statement (HUD1).
Short sales and foreclosures are TOUGH to navigate. Please reach out to us if you need help. Angie keeps everything confidential and will always help you with creative thinking so you have the most options with your home. Contact her at 949-338-7408!
Furthermore, Angie would love to connect with Asset managers, outsourcers, distressed property managers, and others in the banking industry who are looking for a quality agent who effectively works bank systems to get REO properties sold.
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Looking to Buy or Sell a Home? See You January 18th!
8th Annual OC Home Fair
Looking to buy or sell a home? Investment property? Just curious about becoming a homeowner? Renting and want to own? WE have an event for you!
5 OC Home Fair Class Highlights
#2 Finding up to 90K to Buy Your Home – Down Payment Programs
#3 Real People – Real Estate Success Stories
#4 How Student Loan Debt Can Fit Into your Home Buying Picture
#5 Home Buying 101 – Pre-Purchase Counseling
Click here to register, just enter your information and select the class you want to attend!
Homeownership Day 2020 – Register Today!
Looking to buy or sell a home or investment property? Homeownership Day has a class for you!
Our annual Homeownership Day & OC Home Fair is coming soon! We are hosting at Chapman University for the 8th year in a row on Saturday, January 18, 2020.
The Southern California Home Fair is an event open to the community designed to provide home owners, home buyers, renters, and seasoned investors with free, personalized and comprehensive information from some of the leading experts in real estate.
OC Home Fair is for Everybody!
Attendees have a variety of choices from many classes offered throughout 3 sessions 
covering a variety of topics! Some of the topics include:hassle-free home buying, investing to be an automatic millionaire, buying a home under your business umbrella, and much more.
Twelve classes are available this year, spread out over three sessions – pick from four during each time slot! When you register online at OC Home Fair you are able to choose which class you want to be in during each time slot. Some of the highlighted classes this year include:
- Investing to be an Automatic Millionaire
- What to Expect With New Home Builds
- Buying with Cryptocurrency – What You Need to Know
- How Veterans Buy with Zero Down
Click here to register to attend this year’s OC Home Fair, held Saturday, January 18, 2020!
Zillow Offers: Not The American Dream
Zillow Offers provides sellers the opportunity to “skip the hassle and sell your home directly to Zillow.” Zillow Offers targets sellers who want to sell their property as fast as possible. The houses are sold quick and without the “hassle” of a traditional sell (no open houses, repairs are ‘taken care of’, you chose your move and closing date).
You might have seen Zillow advertised on billboards, commercials, or even on personalized yard signs. Zillow promises sellers an instant cash sale for their homes. It sounds great for sellers on a tight timeline, but what’s the catch?
Zillow Offers Are Below Market Value
While Zillow does provide a fast sale and near-instant cash to the seller, this comes at a cost. While your Zillow Offer is providing you instant cash by cutting out the hassle – you are paying for this convenience by selling your house lower than market value.
Zillow offers you a below market value Zestimate because they are taking on the responsibility of selling, fixing, and putting your home on the market. By selling your home for a lower market value, you are able to sell faster. However, Zillow is able to re-sell your home at the actual market value (after making repairs that were technically paid by you by selling the home for less).
What Your Zestimate Actually Costs You:
Zillow provides you with a Zestimate: the estimated market value. It is not an appraisal. After they provide the Zestimate they factor in information they receive from the seller (recent renovations, the current condition of the home, etc.), the opinion of a local real estate agent and fees. Zillow weighs whether renovations will be needed and the cost of holding and reselling the home. This is important to understand – while you do not have to make the necessary repairs and updates to your home, you are still paying to have those repairs completed (the cost is subtracted from your Zillow Offer).
While Zillow says they’ll take care of repairs these will often be priced above market value. This means you will be paying more for repairs than if you hired a contractor yourself. Additionally, you will not be benefiting from the equity that these repairs will bring to the cost of your home. Which means you are PAYING for the repairs by selling your home for less AND not earning anything from it.
Keep In Mind:
According to Zillow’s Offers page – once the Zillow Offer is confirmed, it may be adjusted when an in-person inspection is performed on the home. Just because you received the offer and it sounds appealing, this amount can still be adjusted.
Once Zillow purchases the home, they will make “necessary repairs and updates” and then put the home back on the market. By taking the burden of preparing your home to be listed off the seller – Zillow will earn the equity on your home (that you paid for).
It is important to note – you will still need an agent to determine an offer when using Zillow Offer. If a seller is represented by an agent and they accept a Zillow Offer, the agent still needs to be paid a commission by the seller based on the agreement between the seller and agent.
Sell Your Home Fast Without Losing Equity
Part of being a homeowner means you have invested in a property that will provide you with a return on your investment when you decide to sell. A fast sale should not compromise your investment and result in a below market value offer. We understand you want to sell your home fast – working with a real estate agent doesn’t mean that is an impossible ask.
Real estate agent commissions are between 5-6%, if you are listing your home for 10-15% less than market value you are spending MORE money. Real estate agents have resources to find you a buyer quickly.
If you are determined to move quickly, work with your real estate agent on setting a price that works for you and a buyer. Working with your real estate agent helps you receive better offers because your Agent is negotiating a deal on your behalf, one that will put money into your pocket! Real estate agents can sell your home quick without compromising your equity in the process.
If you have received your Zestimate and would like to compare the offer to market value, reach out to Angie today at: 949-338-7408. Comment below if you have a Zillow Offer Experience!
Read Full Post | Make a Comment ( None so far )Assuming A Property After The Death Of A Relative
Losing a relative can be a very difficult time. We are very sorry for your loss. As you are figuring out your next steps, you may have questions about handling existing mortgage affairs. It is important to remember that you have options and we are here to help you consider the best options for your situation. An assumable mortgage is a home loan that can be transferred from the original borrower to the subsequent homeowner.
Determine if you are permitted to assume the loan
Not all mortgages are assumable – you can check the language in your note and mortgage. Certain types of government-backed loans are easier to assume than conventional loans. Typically you must meet the qualifications of the government agency in order to assume the loan. If you are not sure if you qualify – check with the lender of the loan as well as a real estate professional and a lawyer to ensure you will assume the loan properly.
Lean on professionals to help you determine if you should assume the loan
There are many benefits when assuming a mortgage. When you assume the mortgage, you keep the interest rate that the original owner had on the loan. This could increase the marketability of the property especially in a market where interest rates might be rising. Assumptions typically take less time. If you were listed on the note or in the trust agreement, the process could take only 30 days.
A properly recorded deed is public record. This means once an individual inherits the property – it becomes public record if a trust agreement was not in place. It is important to stand by your trusted professionals during this time to ensure you make the best decisions for you and your family. Offers will come your way that might encourage you to sell the home, it is important to make this decision based on what is best for you. Making sure you have the right people beside you during this difficult time is crucial to ensuring you make the best financial decisions.
Decide if selling the property would benefit you
It is important to remember that you have options. Selling the home might seem appealing and marketable however owning the home could provide an income for your family. Assuming the mortgage allows you to inherit a property at a lower cost, with potentially lower interest rates. If you assume the loan, you will have to pay taxes and assumption fees. While selling the home provides you with an advantage as a seller (lower rates, quicker closing) you could lose a valuable asset. Assuming the mortgage provides you with an opportunity to use the property as an investment. If you do not wish to reside in the home, you could consider using the property as an investment to provide a monthly income to you and your family. Real estate is an imperishable asset with an increasing value. You can learn more about how to turn a property into a source of income here.
If you have additional questions and are seeking help from a trusted professional, contact Angie at 949-338-7408. You can also fill out a contact form if you would like to discuss how you can begin the process of assuming a mortgage!
Read Full Post | Make a Comment ( None so far )Is Seller Financing Right For You?
Seller financing is an agreement in which the seller handles the mortgage process instead of a financial institution. Seller financing cuts out the middleman and some of the red tape that comes with real estate transactions. The seller is the lender in this type of transaction, this allows the buyer to make payments without the hassle of a loan.
Seller financing is a better option in a buyers’ market however this benefits both the buyer and the seller of the home. Here is some quick facts about seller financing!
Pros for the Buyer!
- Faster Closing Process – skip the bank lines. You won’t have to wait on a loan officer, underwriter or legal department to review and approve the loan application
- Saves Money – no bank fees or appraisal costs
- Seller financing lets people who might not be able to secure a mortgage buy a home
- The down payment is based on an agreement between you and the seller
Pros for the Seller!
- Sell quicker – you have the potential and ability to negotiate to sell the property “as is” without making costly repairs
- Investment! Earning money from the lending process
- Retain the title: if the buyer defaults – the seller keeps the down payment and the house – rather than the bank
Take Aways:
- Working with a real estate agent in addition to a real estate attorney is necessary. They will write the sales contract and the promissory note
- Sellers should (and can) run a credit check
- Buyers should offer a 10% down payment
- Don’t forget about your credit score – it is still important and considered in the transaction
Learn more about the seller financing process here:
https://www.nolo.com/legal-encyclopedia/seller-financing-home-sales-30164.html
Read Full Post | Make a Comment ( None so far )Spring Cleaning – Orange County Tree Trimming Services
The birds are chirping and days are getting longer – spring has sprung! Whether you’re selling your home soon or just want to spruce it up – we wanted to share with you our favorite tree trimming service here in Orange County! Tree Trimming Team – TTT is fast, professional, and knowledgable.
Lets Talk Trees
Properly maintained trees will help you get top dollar for your home, and ‘tree hacking’ by beginners is a real struggle. You don’t want your car squished or someone falling out of the tree on your property. We wanted to provide you with a quick post supporting a small business that will help make your life easier!
Tree Trimming Team can do regular pruning, trimming, unsightly stump removal, palm tree skimming, and more. Since these jobs are tough and frequently require a team, they can turn good buyers away! If you’re planning to sell for top dollar then it’s important to have top dollar curb-appeal.
Meet The Experts (for free!)
Bob is the teams Arborist with 49 years experience! Just priceless if you have a precious tree that you want brought back to life. They offer free consultations so that you can have a true expert come out! The team is bilingual with license, insurance, bonding and workers comp. You can find their raving reviews on Yelp, Instagram & Facebook. They do commercial too.
Our contact is Amir Sharafi with Tree Trimming Team info@treetrimmingteam.com 949 874-7538 – please let him know that we referred you! You can learn about other spring cleaning professionals in our LeTip group: http://ocletip.com/
Read Full Post | Make a Comment ( None so far )Ringing in 2019 with Real Estate Goals
What will your 2019 look like?
We have some big goals for 2019 – one of them being helping our clients achieve their real estate new years resolutions! Whether it’s buying internationally or crowdfunding a down payment for an engaged couple, we can help you accomplish them all. Every year our whole team writes down their goals for the new year and we try to help each other accomplish them. This year, we want to do the same with all of our clients. Writing them down and being able to cross them off when they are accomplished really makes you feel good and it will make us feel good to be able to help you do that.
AskAngie Team’s Goals
Our team has a few things were really excited for this year! This year we plan to really grow our Vow2Save program. We are looking forward to helping a lot more engaged couples crowdfund a down payment so that they are able to buy a home after their wedding. This has been a goal of ours for a few years, and after a lot of work in 2018 we know it is really going to be taking off this year and we can’t wait to see the things it can do for people! We also plan to travel more this year in order to have the best information in helping our clients buy overseas. Last year we went to Spain and met with Realtors there, but we want to be able to do that in many more countries.
So much more we can do for you!
If you need help selling or buying a home after a divorce or identifying a good AirBnB investment we can help with that and everything in between. We have various services that we are experienced in. Another goal we know some of our clients have is to stop renting and own their first home and we are so excited to help many people achieve that this year especially with the current rent prices in OC. We can help you figure out what your home is worth and how you can sell it fast and for top dollar! We truly value our time with our clients and being able to help them grow their real estate profile and accomplish their goals. If you have any questions or want to share your goals with us so we are better able to help you please fill out the form below or contact Angie at 949-338-7408!
Tis’ the Season – it’s now an even Market in Orange County
Finally a NORMAL market in OC
If you are have been considering buying, but were reluctant due to the market – the times have changed! For the first time in 7+ years, our market in Orange County is even. This makes it a great time to consider buying, especially because we never know how long it will last. For quite a while it has been a sellers market due to low inventory of houses. This left buyers frustrated due to not being able to find the home they had been dreaming of. Many people were putting multiple offers in on whatever homes were available even if it wasn’t their dream place, just to be turned down because of all the competition in the market. This Spring it quickly started to become a more balanced market where both sellers and buyers had the opportunity to be successful. The active inventory has more than double this year, which is the fastest the market has changed since 2008. This does not necessarily mean it is favoring buyers more than sellers now, but is much more favorable towards buyers than it had previously been which is a huge plus for Orange County and clients who have been wanting to buy for awhile.
Until this Spring, houses were flying off the market at higher than normal prices due to demand, now this is what is sitting on the market due to the change in demand.
Luxury homes are still in demand
Even though it is a much more balanced market at the moment, luxury homes are still being sought out for and there isn’t enough inventory for those luxury buyers. Anything over $1.25 million is needed in the market. Every year luxury demand goes down a little more. So all our luxury owners who are reading this – its your time to make the most money for your home, and possibly upgrade to something even more luxurious 😉
Importance of listening to your Realtor
You all know that we are always advising to find a good real estate agent and sticking with them and their advice, this has not changed. We think it is so important for both buyers and sellers to be properly represented in order to give them the most smooth home purchasing or selling experience. In a balanced market it is almost more important to really listen to your Realtor. We have become so accustomed to the market we have been stuck in that people have a hard to adjusting back to a normal market. In a more balanced market there is no room for error, which is when a Realtor really comes in handy. In a sellers market it is easier to stretch the price because buyers are desperate, but in an even market overpricing leads to failure. It is important to have a Realtor help you decide on upgrades and pricing. Careful and well thought pricing is crucial for the remainder of the year now that it is no longer a sellers market.
If you would like to subscribe to regular market reports, email us at successinweeks@gmail.com. If you are interested in selling or buying a home in the new balanced market, contact Angie at 949-338-7408 so she can help you with all your real estate needs.
Read Full Post | Make a Comment ( None so far )Fight Foreclosure & Win – Orange County Real Estate Stories
This week we had the unfortunate task of stopping a foreclosure sale. Long story short, the buyer’s wire didn’t get to escrow in time for escrow to move the funds to title, & title to pay off the existing loan. This put our divorcing sellers in a terrible hands-tied position and at risk of losing the 150k+ in equity they still had in their home. We had to basically drop everything & work all day & night long to save this property from being sold at auction.
I want to share how things unraveled and how we stopped the foreclosure sale, in case other Realtors or homeowners need tips on how to stop their own foreclosure or auction sale.
It Takes a Team to Fight Foreclosure
First off, I want to point out this is never a one person job. At least TWENTY people were involved & acting fast (or slow) to help pull this off. I will be giving credit where credit is due as you read on. There were at least 10 people CC’d on every email. Outside consultants who had nothing to do with this deal were called. LinkedIn connections & messages were sent. Social media posts were fired off.
It all started with an incorrect payoff demand that had Friday’s date instead of Monday or Tuesday. The property auction was scheduled for Tuesday 8/7 at 1pm. The bank HAD to be paid off before that time. Escrow brought this to my attention the previous week, stating the attorneys who were acting as the trustees for Flagstar Mortgage were not getting them the updated payoff demand. For the record, the buyer was SUPPOSED to bring his funds to escrow on Friday, but he was ‘too busy’. Gee, thanks. Attorneys moving slow, cash investors moving slow…us prodding cattle.
Come Monday, I was told at 9am by the buyers agent Clay Matthews of New Western Acquisitions that the wire had been sent. Great, we made it in the nick of time! We thought. Until escrow calls me at 11am stating they still don’t have the funds. I call Clay again, and he stated the funds have been wired, he will call B of A. Well, in his call he discovers the girl who sends out all the wires for B of A was supposedly on vacation, so the wire did not get to escrow until 1pm.
Foreclosure Sales are ALWAYS messy
This still should have been ok, but enter in technicalities, wire cutoff times, & paranoid high ups at Corinthian Title. Although escrow got the wire to title, title refused to ‘pay off’ the loan because Flagstar Mortgage would not receive the funds until Tuesday morning, and their ‘payoff demand’ expired Friday. They had an ok from Flagstar to press the payoff until 5pm on Monday, but not a moment afterward.
So, we need an updated payoff demand then. But escrow had been asking the attorneys representing Flagstar at Zieve, Broadnax & Steele since last week, & they had not given it to us. Now when we call & email 3x on Monday we get a response….it was ‘too close’ to the sale date; they refused to give us the updated document, and said they needed permission from Flagstar. How. Convenient.
I called Flagstar, and in traditional foreclosure loophole fashion, they proceed to tell me that the attorneys at Zieve must stop the sale, they have no control anymore. I get the name & extension of the rep & proceed to call back Zieve, Broadnax & Steele, who never answer the phone and have a lovely one star review on Google. I go on their website & find out who the partners are, and I email their Foreclosure Attorney along with our rep. Katherine Walker emails me back a bunch of legal mumbo jumbo but states if I can get Flagstar to request a postponement, then she will postpone the sale. An inch of progress.
I know I’m out of time and this finger pointing / permission needing / document requirements will go all the way up to the foreclosure if I can’t cut through the BS and get to a decision maker. I start with my partners first.
Begging, Borrowing & Pleading to Stop a Foreclosure
I call Teresa at Corinthian Title and she advises me that there is no way to record title if a wire is still out, absolutely none. I say fine, just pay it off tomorrow very first thing, and she advises me no, that can’t be done either, because the demand expires today. I request that she simply pad the payoff with additional funds so even if more money is owed for this one day, we still get the proper payoff over, even if it’s too much. I plead my clients case to her and still get nowhere. I realize she is just doing her job…but SOMEONE over there should be able to help me, so I ask her to connect me with an individual who CAN authorize this.
She puts me in touch with Mike Godwin, CEO of Corinthian Title, who I plead with further. Mike explains he ‘cant insure’ the title when it is in this risky of a position, and he can only record it IF we get the payoff demand AND if we now get a sale date extension. (Basically perform a freaking miracle so he can CYA) I asked him what the real risk is here and I still don’t understand what it was. I reminded him my clients have 150k in equity in this house and the bank is drooling to take back this property…and he has the power to help them, or to devastate them right now. He still refuses to record the title. Eff. I have exclusively used Corinthian for ALL my title deals since our reps moved there & this is what we get for it??? Seriously!?!!! Shame on you, Mike Godwin.
I literally hang up with policy-pushing Mike & cry. But I have to keep moving on. This is SO unfair. I can’t leave it like this. Please know…..this is where MOST Realtors would have thrown up their hands. It’s 4:45pm & no chance of a title recording today anymore. The sale is mid day TOMORROW.
Fine. If my partners wont’ help then maybe I can network. I then reach out to a real estate attorney I know to see if he knows the attorneys at Zieve, because attorneys all seem to be in the same ‘bro’ club. No luck. I ask him what for SURE way we can stop the sale at 1pm tomorrow, & he advises my clients would have to declare bankruptcy. I can’t recommend THAT to them. They are already so beat down from their divorce. I call my client with an update and he reaches out to a well connected attorney HE knows. They also email and leave a message for Katherine Walker with no reply.
Delay Foreclosure with Social Media
Sigh……..the clock ticks on… so I guess it’s time to swallow my pride & go social. I had already tweeted Flagstar on my own a couple times with nothing yet.
I proceed to search Flagstar Mortgage on LinkedIn to find someone in loss mitigation. Sweet, they are in Michigan. I’m from there, so maybe these people will show some love. I send out connection requests and nice customized emails to all of them pleading my case. While doing that…LinkedIn pops up an alert that states ‘Your connection with the most connections to Flagstar is Desiree Patno’. I know her from Homeownership Day & NAWRB. She’s BEYOND busy. I decide not to bother her.
I humbly create an Insta message recruiting my friends to help. I ask them to send a specific tweet Flagstar. I know that banks HATE being pounded on Twitter. They care more about their reputation than they do your case, so I’ve gotta pelt that to get your case handled.
I smile through my tears as friends & other do-gooders tweet out my message. I ask the buyers agent Clay to help….crickets. Oh, but he did manage to give the keys to the property away & his clients started moving in. Before close. My clients asked me about it and I literally had to tell them that I cannot focus on who is moving into your house right now…I have to stop your foreclosure. How embarrassing….status = sh*tshow.
Engage National & Local Organizations to Postpone Foreclosure
It’s about midnight, and I still can’t sleep. I decide it’s my ego that is causing me not to contact Desiree, so I email her & her trusty assistant Lucille begging for Flagstar contacts & email addresses.
I set my alarm for 5am, because thats 8am in MI, when Flagstar opens. I fall asleep praying.
I wake up at 5am & see that 12 friend tweets later, I have a DM from Flagstar that someone ‘will call me’. Excellent. Waiting. Desiree also emailed me back at 3am wanting more details. I sent them to her at 5am.
At 7am I call one of my clients and ask him to call Flagstar again & plead. We still don’t have resolution, & this sale is happening in 6 hours.
Desiree Patno calls me at 8am & gives me her contacts. YES….now I have two email addresses, and one appears to be a C level! Score for Women in the Housing & Real Estate Ecosystem being a truly VALUABLE resource to be a part of. If you’re a female reading this, join NAWRB. Now we’ve got real progress. I send both of them LinkedIn connection requests with a private message.
Another outside consultant who is an attorney advised me I must get a Flagstar email, and CC all, not just all the attorneys. He said copy EVERYONE on EVERYTHING. I usually hate doing that, but I do know it’s effective in knowing exactly where the buck stopped for accountability. I’ll do whatever I have to in order to get this closed, I can’t have a foreclosure looming on my record, or my heart, for that matter.
I send an email to Zieve & CC the new Flagstar emails, even though I have no idea if they can help or not. Zieve, Broadnax & Steele reply VERY quickly. Ooh, we must be on to something here. We have a few more back & forth & they try to take the Flagstar email addresses off the string. I add them right back on. It’s 10am and we are still going back & forth without resolution, but making small steps of progress. Will it be enough, though?
Meanwhile…Still pelting Twitter. I try CCing OC Register, Orange County Association of Realtors, and use #homeownershipmatters. This is what you call ‘making a stink’. Why haven’t they called me back yet??? Will @flagstar be a zero or a hero????? Is it seriously going to end like THIS?
11:08am Flagstar’s C level Alessandro Dinello accepts my LinkedIn request. No response, but I know he read it, and that’s all I needed. Someone who can make a decision to press a button.
At 11:57am I receive a call from David Woods with The Office of the President at Flagstar Bank. They advise me they cannot speak to me unless I get a client on the phone. I call him, no answer. I call her, no answer. SERIOUSLY??! I text him & ask the nice man on the phone if I can try to call him again. He finally picks up, and confirms it’s ok to speak with me. The Flagstar person explains that because of Twitter, our case was escalated to the Office of the President and it is now being constantly monitored. We explain to him that we need Flagstar to advise the attorneys at Zieve to postpone the sale. He says he won’t keep us in suspense any longer, that they have just done this, and will give us a 7 day extension. I would have cried of happiness but my client was still on the phone. I receive an email from Zieve while David was still on the line that they have received the request to postpone the foreclosure, and will oblige. I tell David he is my hero, and I get his direct contact info as he promises to quarterback any lagging parties for me. I wish I could find him personally on social but I can’t find him anywhere?! Regardless, I tweet out a success & thank you to my social outlets, so everyone knows Flagstar did the right thing.
The attorneys at Zieve, Broadnax & Steele sent the extension and updated payoff demand to Corinthian as Flagstar advised them to do. Corinithian closed the deal by the end of the day now that they had the miracle documents they requested of us. All that work just to buy a few needed hours of time.
Reflecting back, I honestly don’t know if this was saved by Twitter, or by NAWRB email contacts, by random attorneys calling Zieve for me, or a combo of all of the above. I DO know the grace of God was definitely involved!!!!
I want to take a moment to thank the following people who helped me on Twitter, please consider following them:
- Natalie Newman – @NikNatNew
- Brian Kimball – @brianjkimball
- Jerra Morris – @JollieJ
- Keely Crum – @crumbelievableO
- Mike Langgle – @Langgle
- Lisa Combs – @LisaBethBrush
- Liz Lewis – @lizlewisnhb
- Steve Gould – @stevenrgould
- Nicki Walsh – @SignEase
- Angela Collins – @absolutelyang
- Nancy Bau – @NancyBau
- Natalie Duarte – @NatalieduarteMM
If you are an agent, know that Twitter is your secret weapon when you’re fighting foreclosure. It’s like Yelp though, you have to be in the space already to get somewhere. Signing up for a twitter account on foreclosure day won’t cut it. You’ll need your army of followers to help you out.
If you’ve found this post helpful or resourceful, please comment! If you’ve got more foreclosure delay tactics, please comment those as well. If you need help fighting foreclosure, do NOT wait, text Angie at 949-338-7408 immediately. This one was saved with one hour and 2 minutes to spare, maybe we can save yours too!
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Homeownership and Divorce: What To Do About Your House
The evil D word, nobody wants it, but it happens to 50% or more of us. Orange County sky rockets the national divorce average from 50% to 72%. Did you know that divorces spike in August and January? As summer winds down, we thought it would be a good idea to give you some pointers on this super touchy subject.
Listing your home during a divorce
MANY of our listings are divorce sales, and we strive to provide solutions to better protect our clients. It’s a HARD time, and we want to make it as easy as we can when it comes to the most important asset. For this reason, I just earned my RCS-D designation with Professor Kelly Murray, who has degrees from Stanford & Harvard Law. Watch this video to find out some important tips to a successful resolution of the house during a dissolution:
Real Estate Collaborative Specialist – Divorce
Did you know that less than 50 Realtors in Orange County, CA have this prestigious designation? Did you know the standard in divorce when it comes to real estate is an appraisal and a mortgage statement?? That’s IT.
- NO inspection reports
- NO previous title search for liens or secret mortgages
- NO insurance search to confirm the property can be refinanced
- NO preapproval to make sure the home can *actually* be refinanced by one party or the other on their own
Property division is permanent, and not all divorce attorneys are stellar when it comes to real estate handlings. Things you sign in mediation are binding, and sometimes you feel rushed into these decisions. CONTACT US for a no obligation conversation on how you can protect yourself before you ever walk into court or mediation.
Hard Scenarios You MUST Consider During Divorce
Scenario 1: “Oh, just let them keep the house.”
Are you sure about that? One late payment can be 100 credit points! Do you care about your credit score? Ask yourself: Can you or your ex ACTUALLY qualify for the refinance?
- For example: Can you use your alimony or support payments, and if so, how soon? Many banks have a 6/36 rule. They want to see 6 months consistent income, and receive evidence that 36 months of income will continue before they will lend.
Scenario 2: “It’s ok, I’ll just go buy another house.”
ASK: If you allow your ex to keep the house, will YOU still qualify for with your name on the old mortgage? Can you start your next chapter?
- For example: In the eyes of a lender, both parties don’t have 50/50 responsibility on a loan……you each have to pay 100% if the other defaults. Does this ruin your chances of qualifying for a second home in your name? Make it a point to find out before you make a promise you can’t keep.
Scenario 3: “I lost my job / health & I can’t pay.”
Consider what might happen in a worst case scenario. Would you be able to carry two homes to save your credit? Or possibly be willing to sell in a down market?
- UNFORTUNATE FACT: Only 25-30% of individuals regain homeownership 7-10 years after foreclosure. Don’t let your divorce put you into this pool.
If you need help deciding what to do with your house during a divorce talk to the proper Divorce Professionals who can give you the protection, tools, and timeline to make your future a success. We have an entire team waiting to assist you, from moving out all clutter for free to pulling the necessary paperwork to know what you truly owe and own on your properties.
Please reach out to Angie via phone or text anytime at 949-338-7408. Always confidential, always caring, always at your service.
Read Full Post | Make a Comment ( None so far )How to sell your home fast and for top dollar
Thinking of selling your home?
Are you thinking of selling your home but the process seems too overwhelming and hard? Maybe you have already decided to sell your home but aren’t sure about the process and how to get started. The AskAngie team has all of the answers for you in either situation. We know deciding to sell your home is not an easy decision and can be a very stressful time in your life. Most people want to sell it quickly in order to purchase the next place and everyone wants to get the most money they possibly can out of their home. We have all the tips to help you do just that.
Declutter and bring in the light
One tip we always recommend to our clients is to declutter before listing your home for sale. Having a lot of clutter around your home or on counter tops can really take away from the big picture of what you’re selling. Most buyers want to be able to come into your home and picture it as their own in order to decide whether or not they want to make an offer, seeing your items everywhere might make it hard for them to picture themselves and their family living there. We also suggest removing any dark drapes or window coverings to really brighten up the space and make it more approachable to a buyer. Bright areas and natural light catch buyers attention every time.
An example of a light and bright living room
Changing perspective
In order to get top dollar for your home you have to mix it up and change buyers perspective of what they are looking at. One way to do this is using drone photos for your online postings and MLS site. This allows possible buyers to see the area around your home including the neighborhood, parks, or schools nearby. It also provides a different look at the home itself. We also always suggest that our sellers invest in a stager for their home. Making it look its absolute best is a stagers job – and we have some really good ones! This will help you get top dollar because buyers are seeing it at its best.
Without this drone image you wouldn’t be able to see the AMAZING surroundings this home has. What a change in perspective 🙂
Knowing the market
We believe educating yourself via your Realtor about the current market before listing your home is a good way to prepare yourself for what is to come. Being prepared and knowing what you’re up against is a good idea for selling your home quickly. It is currently a sellers market here in the OC, and we are always looking for people wanting to sell their homes. There’s a lot of buyers looking but never enough houses for them to buy. Knowing this information before posting your home for sale can be very motivating and encouraging as you begin your journey with your house on the market.
Bring the whole package from day one!
We always bring our sellers perfect package to the MLS day one of its listing. In order to do this you need a good Realtor, good photos, and be completely ready to sell. If people have online searches saved they are only sent properties via email the day it’s added and if the price drops, because of this you want to have your pictures and postings perfected before it is listed on the MLS. We also provide a property website for each listings that you are able to share on social media and with any buyer who is interested in your property.
29 more home selling tips waiting for you!
These are just a few additional tips that we added on to share with you. but our team has created a report, 29 Essential Tips That Get Homes Sold Fast (And For Top Dollar). If this report is something you are interested in reading or you know someone who is thinking of selling their home and could use some tips just fill out the form below to have it emailed to you! If you need any additional advice or are looking for someone to help you sell your home quickly contact Angie at 949-338-7408!
Organizing Your Family’s OC Move & Memories
Do you have precious memories you want to save digitally?
With Memorial Day around the corner we wanted to help you with one of your most precious items to move – MEMORIES! We have just the company to help you keep all those memories and pictures safe during a move. Mike Helsper and his team at Digital4Keeps organize and digitize photos and paperwork for easier keeping for you and your family. They offer a mobile scanning service that they can do for you in your home or in your office. This is used to archive all your important documents into safer keeping than just inside the drawers of your desk or filing cabinet in your home. Their passion is to preserve your families memories.
Preserving Memories
Digital4Keeps offers affordable simple flat rate, inclusive pricing, and packages. They have high speed scanning and organize those in a digital format so they are safer. They transfer memories and provide you with a DVD, flash drive or storage on a hard disk for your own computer. They can also touch up photos after scanning to ensure the best photo for safe keeping and offer to introduce clients to the cloud for better keeping. Have greeting cards that need scanning? They do that too.
Safety for Important Documents
They will protect your important documents and files from fires or any other disaster you wouldn’t expect to happen. They do this by scanning and filing your documents so that they are available in the digital world only for you or family members to have a copy of. To see more of what they have to offer check out digital4keeps.com
If you’re about to move and want your things organized before doing so or if you just want to make sure all of your memories and documents are in safe keeping for your future get a hold of Mike Helsper at Digital4Keeps – 714-814-1648.
If you need help finding that next home to make more memories in, we are always honored to assist! Angie’s standing by at 949-338-7408 to help you find the home of your dreams 🙂
Read Full Post | Make a Comment ( None so far )Add Thousands to Your Property Value!
Easy Spring Upgrades Can Add Thousands to Your Property Value
Spring is here, and it’s a great time for some quick and easy home upgrades that, for less than $1000, can add thousands to your property value! With clear days, sunshine, and wonderful opportunities to spotlight your property and its curb appeal—along with the chance to add to your property value and help make that sale!
Based on the local average home prices of $717,100 in Mission Viejo, this means as much as $28,684 in potential profits for many local home sellers, while also providing home buyers with the little extras and details that can make such a
difference to comfort and peace of mind.
Easy upgrade list for your home!
To help you maximize that appeal, here’s a checklist of upgrades to your home that are relatively inexpensive (most of those listed here can be accomplished for well under $1,000), but that can add significant property value and return on investment.
1. Replace Your Front Door. A beautiful new front door, preferably one that’s reinforced steel, will not only immediately add curb appeal, it’s also a bonus to home safety (and insurance rates), as well as to air quality. To stretch your budget, you can also simply do a nice repaint of the door instead.
2. Add a New Coat of Paint. A new paint job for the entire interior of the property (after covering and filling imperfections or holes in drywall) is a time-honored, popular and accepted method of adding newness and brightness to a home and instant appeal to homebuyers. However, don’t stop there. An exterior paint job can give new life to a home’s appeal, emphasizing its best features and providing home shoppers with a pleasing first glimpse of your property at its best. Just don’t indulge yourself in crazy shades and keep color choices tasteful and neutral.
3. Upgrade Your Garage Door. Your home’s garage door can take up as much as 35 to 40% of a property’s overall façade. It’s no wonder, then, that a new garage door is one of the best ways to increase a home’s visual impact while also increasing return on investment (as noted in the 2016 “Cost vs. Value” report). A new garage door also adds safety and security, and upgrading to an automatic versus a manual garage door is a big plus with home shoppers, according to many experts.
4. Inspect, clean and paint moldings, built-in bookcases and trim. Moldings can help to frame a room and show off its bones. Clean and neatly paint your moldings to show off a room at its most beautiful.
5. Professionally Clean Your Windows (Inside and Out). It’s amazing the effect clean and sparkling windows can have on the appeal of a property. From outside, they twinkle in the sun and provide a pleasant introduction to the home itself. From inside, and framed only minimally with draperies or blinds (keep them open when buyers visit) they maximize light and air, contributing to an overall impression of warmth and cleanliness.
6. Clean Carpets. Far too many overlook this simple, easy way to show off a home to its best advantage, freshen up for Spring, and give new life to old carpets when the budget doesn’t allow for them to be replaced outright with hardwood floors. This task also contributes to overall air quality and can make a huge difference in homes where smoking or pets were also a factor.
7. Install a New HVAC System. A new HVAC system improve air quality and energy efficiency, and can add tangible value to your home’s asking price. It’s also a great way to add an instant edge if you find your home competing with others in your area.
8. Fix and Repair External Gates and Fences. This is a repair that is both useful cosmetically, as well as being a big plus for home shoppers who are both safety-minded or who may be pet owners. You may also want to consider adding on a fresh coat of paint or varnish.
9. Upgrade or Install External Motion Sensor or Safety Lighting. According to many industry pros, now more than ever, the biggest single concern for most homeowners today is safety, so visible and tasteful, well-installed external lighting will go a long way toward giving home buyers peace of mind. Ring doorbells only cost about $100 and it’s a huge comfort when it comes to security.
10. Upgrade Your Water Heater. By upgrading to a better (and professionally installed) water heater, you’ll not only be adding to your home’s safety features and energy consumption, you’ll also be adding one more highly desirable element for today’s home shoppers. Make sure your water heater is properly strapped, too!
If you need help accomplishing these tasks, or want to find a Home Repair Professional to assist with them, the SERVIZ app can be a great resource.
Just a few of these basic home repairs and upgrades can be worth their weight in gold for home sellers and real estate pros, and can increase the value of your home overall by potential thousands.
As the Spring sunshine returns, there’s never been a better time to add value to your investment. So what are you waiting for? Contact Angie at 949-338-7408 if you want help on adding to your homes value and getting the most for your home sale!
Read Full Post | Make a Comment ( None so far )Orange County Realtors Annual Meeting
Every year we make a point to attend the annual OCR meeting. This 3 hour event is filled with great information about what’s happening in our association and community, and it helps us stay on the pulse of the everchanging real estate market.
Did you know over 51% of real estate transactions in Orange County are completed by a member of OCR? We are the largest local association in CA and the 9th largest in the nation. We’re a huge group and have over 10,000 Realtors. Yes, there are THAT many agents in our county & we all work differently 😉 Thankfully OCR puts on this event yearly so we can all be on the same page with the expectations of the market.
Chris Thornberg Presents the OC Economic Outlook
Chris, a famous forecaster with Beacon Economics, warns to be careful of weapons of mass distraction.. like the current president’s tweets… and focus on the true story. There isn’t a weather report for democrats & republicans. There’s just a weather report. That said…here is the real estate report 😉
LIFE IS GOOD. But not without it’s challenges. We are not expecting a correction for at least 2 years.
WE ARE NOT IN A REAL ESTATE BUBBLE. Bubbles happen when we overbuild, and when we overborrow. Neither of those things are happening right now.
THE ECONOMY IS STRONG. Wages are rising, unemployment is low, jobs are available.
RATES WILL RISE. We’ve had 5 recent hikes and are expecting more. No need to freak out though….rates will still be lower than they were in 2006. Keep everything in perspective.
CA RANKS 8TH FOR ECONOMIC PERFORMANCE. We’re adding workers (and need more), and we have a large number of high income households. 18% of CA households make over 150K/yr!
WE NEED MORE HOUSES FOR SALE. The reason our prices continue to go up is our huge lack of supply. Builders need to build more… (they are only building half as much as we currently need yearly) and owners need to sell more (the average time owners hold a home has significantly increased the last 20 years).
All in all things are still looking really good for California Real Estate – comment your thoughts below! Ready to jump in? Text Angie at 949-338-7408 if you’d like to surf the wave!
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2018 Tax Reform & Housing Market Update with YPN
Hey everyone!
Today I’m at the Orange County Young Professionals Network breakfast; and Tony Capitelli, Government Affairs director at OCR, gave us the update on taxes and our housing market. If you’d like in on the scoop….read on 🙂
Not Fake News – Orange County Needs Housing Inventory
As previously stated in our post with Steven Thomas, we don’t have enough people selling their home in Orange County right now. Our current estimated time on the market is just 24 days – it’s a strong seller’s market. Furthermore, the ‘affordability’ factor in OC is around 20%, and prices continue to rise with the lack of inventory. Student loan debt keeps renters longer and longer.
Tony doesn’t believe we’re in another bubble, so this is our new normal in Orange County. The median sales price is now $800K. The prices continue to creep so high because of inventory, inventory, inventory. People are staying in their homes longer and longer. It also costs more to build here in OC, so that pushes up new home prices.
Consequences of our inventory drought are less housing, longer commutes, more traffic…people are having to move outside of the city or county.
Even though all these updates aren’t great (especially to renters), please keep perspective. Homeownership is the still the best way to generate wealth for ‘the average Joe’.
What’s Up With 2018 Tax Reform
DISCLAIMER: This is information on what is in the new tax bill. This is not tax or legal advice…contact your CPA for that or ask us for a referral!!
Harmful tax provisions
- Raising the standard deduction
- Single filers – 12K / Joint filers 24K
- eliminates homeownership incentives for most
- Lowering the mortgage interest deduction
- Cap lowered from 1M to 750K
- Can only deduct HELOC remodeling
- Limit on State and local tax deduction
- Eliminates entertainment deduction
- Businesses can no longer deduct expenses for entertainment purposes. Sorry…less spoiling my clients and more giving it to Uncle Sam.
- Historic tax credit
- repeals moving expense deduction
- Except for military
Helpful tax provisions
- 20% passthrough for a business entity under 157K (single)
- Exclusion of gain on sale of principal residence
- We kept the 2 out of 5 year qualification 🙂
- Like kind exchanges
- 1031 exchange is still available
- Low income housing credit
- Child tax credit increased
- Medical expenses deduction remains
- Student loan interest deduction remains
- Keeps deduction for casualty losses
We’ve basically de-incentified homeownership and charity, which IMO sucks. The good news is that millennials still see the value in Homeownership and they are pretty darn charitable anyway 🙂 45% want to buy homes in the next 5 years. It’d be cool if we could vote for more benefits to support homeownership incentives in the future you guys! Follow NAR’s #HomeownershipMatters tag if you’d like to stay in the know there.
If you’d like to download Tony’s full presentation, just LIKE Orange County Young Professionals Network on Facebook – we’ll be posting it soon – or email Angie@AskAngie.com.
Read Full Post | Make a Comment ( None so far )2018 Housing Market Forecast by Steven Thomas
Always love to hear Steven Thomas’ yearly real estate forecast – he’s locally famous here in Orange County for his great quantitative economic forecasts. Today he spoke at Orange County Association of Realtors and gave us the scoop….here goes!
It’s a HOT Seller’s Market in OC. Already.
The average OC resident moves every 21 years. This is creating a seller draught for all homes on the market under 1.5M. On the other hand, if you’re lucky enough to own a property over 1.5M, that’s a buyer’s market right now. Typically the Orange County market is slow from Nov – Jan, heats up after Super Bowl, and stays hot well through May. Last year, our market was hotttttt the.whole.year. And it’s continuing into 2018 here.
I’m Going to Wait to Buy….Famous Last Words.
Buyers….please don’t wait for more inventory or prices to go down. Neither is projected to transpire anytime soon. The next trend that comes will be higher interest rates, and that will only compound your issues. Yes, it’s rough to find a home right now. You’ll have to compete with multiple offers, but the good news is that you’re buying a solid long term investment at historically low interest rates, so keep on it! With the right agent you will secure your dream home.
Good News Graph: Interest Rates Over the Last 50 Years
These interest rates are an absolute GIFT. Steven’s words: “Don’t look a gift horse in the mouth”. It’s ridiculous not to consider buying while you’re trashing at least 25K/year in rent. That’s like….a significant portion of your down payment. Because you can get in with just 3.5% down now 😉
Buyers, it’s time to suit up in your battle gear and plan to write at least 4-5 offers. It’s not you. It’s not your agent. It’s INVENTORY. We had 6% fewer homes come on the market in 2017 than the year before. We’re below 4,000 homes on the market, and our long term average is 8,000. We’re starting out this year similar to 2013, which was the lowest inventory in 5 years. There are only 91 condos active right now below 250K, so the low end is literally disappearing. And you can’t blame it on the foreigners, either. International buying is an insignificant 3%. Get in while you still can, PLEASE!
Homeowners, you’ve got the upper hand because you’re just not selling. Below is a comparison of 2016 inventory vs 2017 inventory. Almost everything is down. Yet the population and OC relocations continue to grow. Which are causing prices of our skimpy inventory to grow.
Where Are All of Our Property Sellers?
Why isn’t everyone selling right now? We’re in an up market…right? Well, there’s a slew of reasons, and here are some of them:
- refinanced into a 3% loan they just don’t want to lose
- it’s ‘cool’ to stay put right now
- not enough building to entice the move
- property taxes are grandfathered in low
- watching HGTV all day & remodeling instead
- nothing to buy (such a VICIOUS cycle)
Some people are literally becoming prisoners in their own homes, especially with the new tax laws. 64% of baby boomers literally plan to die in their home, following the hugely popular ‘aging in place’ trend. Until some of these boomers start to sell…or croak.. our market will be stalled.
If you’re considering selling… please do your fellow OC residents a favor & just do it! You’ve literally got buyers in line waiting to see your home. Here’s an inventory & demand year to year comparison:
Scared to sell? What about Taxes & Tax Reform?
Now that the max deduction is $12,000 for singles, and the max property tax deduction is $10,000, will that affect our market? It will absolutely affect many, because the median home price in Orange County is now over $700,000. Some buyers will not be able to write off everything they used to. Steven admits, It may NOT be a tax benefit to own a home in some in the upper ranges. But…It’s still way better than trashing 3-5K/mo on renting, though. And luxury rent is even higher than that. Steven doesn’t think the tax laws will have an adverse affect on our pricing at all this year; we are still projecting appreciation.
Steven Thomas’ 2018 Housing Market Forecast:
- Low distressed inventory
- return of the unrealistic overpriced seller
- normal housing cycle
- anemic inventory to start the year
- increase in number of move up sellers
- mild appreciation 4-5% (perspective. the ‘average’ home is due to increase 30K or more in value)
- interest rates to land at 4.25%
Only time will tell if these projections are right – but Steven’s usually on point. Feel free to comment your opinions and we’ll revisit this post in about a year 🙂 If you’d like more updates like this throughout the year, just fill out the form below or text ‘subscribe’ to Angie at 949-338-7408.
Consider Paying Property Taxes Early – Big Tax Changes are Coming to Town
As you’re hearing on the news and seeing on social media…the way we are taxed and the things we can write off will be changing a lot within this next year! As a Realtor I can’t legally give tax advice…. so I’ll preface this post by saying it’s best to consult your CPA before the end of every year and be a proactive advocate for the lowest possible taxes! If you need a CPA referral, just ask 😉
That said, we wanted to make sure our CA friends and clients were aware of this before the end of 2017 – which is fast approaching!
GOP Tax Bill
The LA Times wrote about changes the GOP tax bill will have for California residents. The wealthier areas along the coast are going to suffer more than others due to this. Currently, state and local tax deduction is unlimited. However, in the final GOP plan, people will only be able to deduct up to $10,000. At the beginning the house only wanted the deduction to be on property taxes, but the final bill is for any state and local taxes to be deducted. Property, income, or sales taxes will qualify. An article from The Washington Post says, “The move is widely viewed as a hit to blue states such as New York, Connecticut and California, and there are concerns it could cause property values to fall in high-tax cities and leave less money for public schools and road repairs.” Since the average California homeowner pays 10K or more per year in property taxes, this affects YOU.
Pay Early & Still Get Your Deduction
How can you stay safe from the deduction cap? One way is to pay your second installment of your property taxes (which are usually due in April) before the end of the 2017 year so that you can avoid the amount restriction for 2018 deductions. You can pay online, by e-check, or credit card.
What if My Taxes Are Impounded Into My Mortgage?
If you call and check, most lenders won’t be able to guarantee the payment will get sent before the end of the year, but don’t worry…you’re still ok. You can simply pay your property tax online and then just send the proof of payment over to your lender for an escrow account refund. That way you can still write off your full property tax and state income tax before you get stuck only being able to write off $10k combined next year.
Stay Proactive…Stay Informed
We want you to know that we reply to all Real Estate tax alerts on our client’s behalf. We care about you and want you to get maximum benefits from being a homeowner. Here’s a recent reply from Luis Correa to one of our requests:
Ultimately we all need to watch elections big and small to fight taxes together! Please subscribe to our blog or email us to join the list for regular updates on how to protect your real estate investments.
We hope you have a Happy & prosperous 2018!
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