Real Estate Values in Yucaipa - 2nd Quarter of 2014 to 2nd Quarter of 2015

"So Mr. Realtor!  How's the Real Estate Market?"

Well...the facts don't lie, so let's look at the facts. Let's compare apples to apples...to apples.

First...let's take a quick look at the 2nd quarter of 2014 as compared to the 2nd quarter 2015.

Q2 - 2014: 144 homes sold with an average sale price of $313,723
Q2 - 2015: 154 homes sold with an average sale price of $319,116
That is a modest 2% increase in home prices.
Now, consider Q2 - 2013 when we saw 168 homes sold with an average price of just $278,623 and we'll see that from 2013 to 2014 Yucaipa showed nearly 13% growth in home values.

Why does this matter?

Most of the public is still expecting huge growth, but that's not happening right now.  Modest, real, sustainable growth is happening.  However, as a result of the prior year's exaggerated growth rate, many home sellers and their agents (who probably don't 'geek out' on market data like I do) believe that their homes are worth more than they actually are. As a result homes are often listed above market pricing and sell at market pricing, but below the original asking price.  Over the past 30 days alone, 65% of the homes sold in Yucaipa sold at a price lower than the original asking price.  That's 38 of the 58 homes sold actually sold for less than the asking price compared to only 10 which sold at asking and 10 which sold above asking.

And what do I want you to take from this?  Whether you're looking to buyer or sell, don't put so much weight into the asking price of a home.  Trust a real estate professional to run comps on a home you may be interested in. Make sure that they're putting much more weight into "Sold" data than they are into Active or Pending prices.  The "Sold"  price is a fact.  The "Asking" price is a wish.

As always, if you know someone who may be looking to buy or sell real estate, I'd love the opportunity to provide them with the very best service.  If you know folks in a area I don't personally serve, let me find an agent in their area of interest. I'll ask that agent some really tough questions in order to improve the chance that you're exclusively and meticulously represented by an ethical and professional Realtor.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Real Estate in Yucaipa; The Data Doesn't Lie!

"Oh...you're in Real Estate?  So how's the market?  It's good. Right?"   

 

If I had a nickle for every time I heard that remark...I'd be a rich man.  But, what is "Good"?  If you're an investor looking to snap up distressed properties for pennies on the dollar, you might think a down market is "Good". If you own a home and hope that the equity you're building becomes your retirement, an increase in home values is "Good".  Data, on it's own, isn't inherently good or bad.  It's just the truth.  So here's the simple truth. 

We're often inundated with News, but more often than not this news has nothing to do with us or where we live. For this post, I personally pulled this local, Yucaipa specific market data in an effort to give homeowners in Yucaipa accurate, concrete market information.  This is not my opinion.  It's not some random journalist out of Washington regurgitating someone else's ideas.  It's not good or bad.  It's just the truth.  

First, let's take a look at the general trends, then I'll point out a few items that I see as important with regard to home values in Yucaipa...and where things are headed in the near term.  

The above listed data is for Detached, Single Family Residences in Yucaipa, California only. 

There are several things I'd like to point out about the graph above.

1. Red is (median) what people ASKED for their homes.  Blue is (median) what they actually received.
2. The beginning of the graph illustrates a decrease in home values; the 'end' of the housing bust.
3. In 2011 and beyond we see aggressive recovery of the local real estate market.
4. When the market was "bad" people listed their homes more realistically.  The gap between Asking and Sold was closer. As the market increased...so did home sellers' optimism and aspirations.  Note the increase in the gap between the blue and the red as median home values increased.
5. At NO point was the median asking price at or below the median sold price.  (sellers virtually always think their homes are worth more than they are.)
6. If you had to forecast the where the blue curve was heading over the next 1 to 5 years where do you see it going?

Finally, below is the proof.  If you want to geek-out on data, the screenshots below show the criteria used to secure the data needed for the simple line graph above. 

I say and write this often, "Don't wonder! ASK!"  

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Honey!!! Stop the car!

Isn't home shopping fun?  Heck, my wife and I still love looking at open houses even though we're not in the market to buy right now. "Just browsing" is an exciting thing to do!  

We love seeing the upgrades, stealing new decorating ideas, and just being inspired to keep our home looking its best.  

"Honey!  Stop the car!  I LOVE this neighborhood!  I'd love to live here!"

However, if you are actually in the market to buy a home, please take a moment to pause and think about this: Before you walk into that Open House, fall in love, then write your very best offer...stop. Stop for just 30 seconds and think.  Who does the agent holding the home open work for?  Does he or she work for you, or does he or she actually have a fiduciary responsibility to the sellers? Below is a statement taken directly from the National Association of Realtor's website, briefly touching on the fiduciary duties of Realtors.

The image above is taken directly from the National Association of Realtor's website.

Now that you've paused and put a little distance between the emotion of the moment and making intelligent decisions for your future, simply ask the agent this question.  "So...is this your listing?"  If the agent says, "No!" then there's no reason (taking for granted that they're experienced and effective) not to use that agent.  If the agent holding the Open House says "Yes.", then his or her loyalty goes first to the home sellers.  The agent is representing, protecting, and negotiating on behalf of the home sellers.  How can he or she give you that same level of service?

Look at it this way for a minute.  When you walk into the Ford dealership and you're going to spend $40,000 on a new SUV, you know that the salespeople works for Ford.  They represent Ford and Ford's interest.  The same holds true for a listing agents.  He or she represent the sellers and the sellers' interests.  If that agent tells you that they can advocate and negotiate for each of you equally...is that agent actually, ethically representing the sellers?  Meeting in the middle is NOT negotiating.

So what should you do?  Simply walk away and call another Realtor; a local area expert who does NOT have an ethical and professional loyalty to another party.  Go ahead.  Look at the property. Grab a flier. Fall in love with the place.  Even decide you want to buy it.  But don't move forward until you have someone in your corner, representing you, exclusively.

Click here to read the Realtor's fiduciary duties directly from the National Association of Realtors website.

Yes.  I too hold Open Houses.  In fact, its one of my favorite parts of my job.  That said, whenever possible, I hold a colleague's listing open, and I make that known as soon as folks walk through the door.  "Hi!  I'm Andy.  This is not my listing.  It's in the capable hands of one of my colleagues.  I, however, would love to exclusively represent YOU in the event that you like what you see."

I believe that the home buying process will be safer, more effective, and more efficient with your own Realtor on your team!

I say and write this often, "Don't wonder! ASK!"  

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

How much do I have to put down to buy a house?

Trying to get your foot in the door…literally?

If you're tired of paying rent; tired of paying so much in taxes; tired of paying someone else’s house payment…let’s get you a place of your own.  With that goal in mind, the process so often starts with the same question: "How much do I need to put down? What can I do now? I can't save $50,000-$90,000 for a 20% downpayment!"

Well, even if your wallet is empty, you may have enough to put down on a house of your own.  How much do you have to put down if you want to buy a house? That depends on countless factors, but the real answer is...20%, 10%, 5%, 3.5%...or...yes, even nothing down. 

“But aren't these Zero-Down programs a just a gimmick to get me to buy?”  

No.  Absolutely not.  

• There are communities; in fact there are entire towns that that fall under USDA guidelines, with 0% down financing available.  
• FHA loans allow for a seller to credit buyers up to 6% toward closing costs.
• VA loans allow for up to 4% seller's credit, but will loan up to 100% of your new home's value. 

True story.  The first time that I looked into buying a house I learned pretty quickly that I just wasn't going to be able to make it happen...

...until...

...I talked to a Realtor.  The agent that I met with put me in touch with a lender whom I learned that I could trust. I put my faith in the experts; my agent and my lender, and before I knew it...I was moving in!

Looking back, the only thing I regret is that I didn't do it earlier.

Our first home. Oakley, CA 2004

I ended up writing a full price offer, allowing the seller to stay in the house for an extra month...IF...they agreed to cover all of our closing costs; 100% of ‘em.  They agreed, leaving me needing only to come up with $9,975 of down payment money.  Well, I didn't even have that.  I really only had about $1,000 in my bank account.  I asked my parents for a few thousand dollars (yes, I was very fortunate) and they were really happy to help me get into my very first house and start growing roots in my new community.  The entire process took 40 days...from the day I met my Realtor until the day I closed escrow.

I say and write this often, "Don't wonder! JUST ASK!"  Ask an expert.  They're either going to give you good news...or good guidance. Both are in the right direction!

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

How long after a Short Sale, Foreclosure, or Bankruptcy do I have to wait?

Did you get caught up in the housing bubble that burst?  Almost everybody did!  In the Riverside, San Bernardino, Ontario metro areas nearly 50% of all homes sold in 2012 were foreclosure related sales. That was just 2012.  Add to that, all of the other distressed homes sold between 2007 and today, and you get a pretty good idea of the scope of that bubble bursting.

Here's the good news though.  If you've survived the stresses of going through a foreclosure, a short sale, or a bankruptcy, you're probably closer than you think to getting back into the market.  How close?  Let's take a closer look.

Below I outline typical wait times for various loan programs based on which financial circumstance you went through.  

• Short Sale 
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Deed in Lieu of Foreclosure
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Foreclosure
• FHA Loan - 3 years. As little as 1 year if borrower qualifies"Back to Work" program. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 7 years
• USDA Loan - 3 years
• Chapter 13 Bankruptcy
• FHA Loan - 1 year if payment period has elapsed. 
• VA Loan - 1 year if payment period has elapsed. 7 years on loans > $417,000
• Conventional Loan - 2 years from discharge date, 4 years from dismissal date
• USDA Loan - 1 year if payment period has elapsed. 
• Chapter 7 Bankruptcy 
• FHA Loan - 2 years from discharge date. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years from discharge date, 4 years from dismissal date
• USDA Loan - 3 years from discharge date. 

I often advise my clients NOT to wonder.  Don't wonder if you're ready.  Find a lender you trust and find out if you're ready.  If you're not ready, the worst thing you would walk away from this experience with is the truth and a plan.  Sounds like a win/win to me.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

A Case Study in Effective Home Pricing

In January of 2014 I completed a CMA on a 4 bedroom 2 bath Single Family Residence.  I advised the prospective seller that the home's value was just under the $400,000 mark at about $385,000.  I thought that $399,500 was definitely on the high side, but not high enough to be completely unrealistic.  There were comps that closed above that price so appraisal wouldn't be an issue. The prospective sellers realized that they had a few financial items to get sorted out before they made a move so they chose not to list at that time.

In January of 2015, one year later, I completed a second CMA on the same home.  This time the property value came in at just above $400,000 at $412,350.  We listed the property for sale at the exact same price I had suggested earlier; $399,500.  I had proven to these clients that I knew what I was doing and reassured them that if they'd never have to sell at a price that they weren't comfortable with.

On February 18th, 2015 we listed the home at $399,500.
On February 23rd we reviewed 7 offers, two of which came in at $420,000. We went pending on the 23rd with an estimated Close of Escrow (COE) date of March 20th, 2015, with the right to possibly rent back until the sellers closed on their new home.

I am virtually certain, although there's no way to turn back time and test it, that we would have been lucky to broken the $400,000 mark had we listed the property for sale at an overly optimistically price of something like $425,000. I believe that home buyers, first time buyers, and investors cap their search criteria at numbers like $300k, $350k, $400k.  These number are, for statistical purposes, absolutely arbitrary, but psychologically...they matter.  Knowing that we'd capture more prospective buyers under the $400k mark than we would over the $400k mark paid dividends.

Receiving 7 offers gave me and my sellers the confidence that if one buyer scoffed at a possible counter offer, we had 6 more in the running.  If we'd overpriced the house and received only 1 or 2 offers, we'd not have had the security to negotiate strongly.

At the time of this post, the property discussed above is "Pending."  We won't know if it's going to close until it does!  That, however, has nothing to do with the pricing and everything to do with the property inspections and the current condition of the home.  The pricing strategy worked...again.

We'll update this post once we've closed escrow. Stay tuned!

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  

If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my services.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com