Ross on Real Estate

Can You Afford A Second Home?

2012-03-11T19:26:00.000-07:00

Did you know that here in Carmel by the Sea, as of 2010 we have 48% of our homes that are owner occupied? That leaves over half that are either rented out or left vacant a good part of the time. A great place to find a second home, right?

Most of us have dreamt of having a vacation home. It could be on the beach in New England, somewhere tropical, or even somewhere foreign. Many consumers don’t realize that with the proper research, their dream vacation home might actually be in reach. Instead of visualizing how relaxing vacations and weekend getaways could be, why not try to make your second home a reality?

The first step to purchasing a second home is organizing your finances to make sure you can afford it without compromising the security of your other assets.

These tips can help you assess whether or not you are ready to invest in a second home.

Figure out what you can reasonably afford by looking closely at your income, savings, and spending habits. Future expenses need to be factored into your budget, such as the likelihood of replacing a car or adding to your family.
Check each of your three credit reports well before you start looking at houses or shopping for lenders. If your credit score needs improvement contact a credit counseling agency or ask your mortgage company for advice.
Create a budget. A budget not only clarifies your current financial situation, but it also helps you identify places where you might cut back to save for a down payment.
Consider tax implications. Purchasing a second home has its benefits, but you should make sure you consider funds for property taxes on the second home as well as additional income tax if your home will be rented out. You should research the area’s property taxes because some locations have significantly higher or lower property taxes. Ours here are approx. 1.1% of the purchase price.

If your research proves you are not quite ready to start looking for your vacation home, try not to get discouraged. It’s better to wait than to put your financial security at risk. If you feel that you are financially stable enough to take on a second mortgage, now is a better time than ever because interest rates are extremely low.

One of the most sought after areas for 2^nd home purchases is the Monterey Peninsula. Carmel, Pebble Beach, Monterey, and Pacific Grove, all for somewhat different reasons. Each has their own separate personality. This is considered one of the most beautiful spots on earth, and we have a mild, Mediterranean climate, never too hot or cold.

A lot of second-, third- and fourth-home owners come here from Arizona or Texas for the summer. The population is small, but for a community this size we have a disproportionate amount of restaurants and cultural events. The most important collector-car show in the world is here, the Bach Festival, Big Sur Marathon — there is always something going on. The Pebble Beach Resort hosts a famed food and wine festival and an annual PGA tournament, in addition to huge events such as the U.S. Open.

Carmel has upscale beach-town flair and the most restaurants; it attracts those who want to be on or near the beach and walk to shops and eateries. Monterey is the biggest city; it has more full-time residents and a "mini-San Francisco” feel. It also is the least expensive; second homes start around a half-million. Pacific Grove, on the northerly tip of the peninsula, is kind of a quaint Victorian town. It's the last 'dry' town in California, and priced between Carmel and Monterey.

Carmel Valley is completely different, agricultural and rural, with a few wineries. People go there for the sun. We get this coastal fog and 'June gloom,' and there you don't.

Pebble Beach has the highest prices. The limited number of ocean front lots on the famed golf course are among the most desirable pieces of real estate anywhere, the choice of second-home owners like Charles Schwab. It is a very small universe — there are only 28 such properties and the tear-down value is $10-20 million just for the lots. Four years ago, you couldn't find anything in Pebble Beach under a million. Now there are 18 properties in the $500,000’s to $900,000’s."

The peninsula has long been popular with artists and actors, and more recently with second-home owners from Silicon Valley. We have a lot of international buyers, but the bulk has always been Silicon Valley, San Jose and San Francisco. And it looks like we’ll be getting a new wave of millionaires soon with the Facebook kids!

A look at three Monterey Peninsula neighborhoods:

Pebble Beach Resort: The Pebble Beach Co. owns 5,300 acres that contain three hotels, four golf courses, spas, an equestrian center, beach club, tennis and a variety of residences. While the handful of ocean view lots are the province of the ultra-rich, there is a range of single-family homes, condos and townhomes all throughout the resort, and just last month a home sold for only $555,000! There are several listings under $1 million. Of 90 properties now for sale, more than half are priced over $2.5 million, and more than third are over $4 million. Properties near the two large resort hotels also command a high premium: Condos behind the Inn at Spanish Bay run from $2 to $3 million, and townhomes at the Lodge at Pebble Beach are $3 million to $4 million.

Carmel-by-the-Sea: It long has been home to famed visual and performing artists and writers. Carmel has the most dining options on the peninsula. The desirable second-home area is downtown, where you can walk to shops and the beach. You can get a nice cottage in that prime area for $1.3 to $2 million. Of the 100 or so properties for sale, most are in the $1-5 million range. Only five true oceanfront homes exist; there’s one on the market now for $19.2 million.

Golf Communities: While Pebble Beach Golf Links and Cypress Point are not part of true golf communities, several other courses are. Tehama and The Preserve are upscale, inland developments with members-only courses. Carmel Valley Ranch is a golf resort with homes and townhomes for sale. It is in the midst of an upgrade. Former Fort Ord is being redeveloped, eventually, into a 400-acre community with a hotel and spa, 125 homes and 175 condos. The project already has two highly regarded golf courses, Bayonet and Black Horse, open to the public. The first residential neighborhood, The Enclave at Cypress Grove, just began selling 29 lots in a gated development with views of Monterey Bay. Unlike Pebble Beach, residents can get golf memberships. Lots go for $380,000-$500,000.

This month's pick property:

1131 ARROWHEAD ROAD, Pebble Beach $740,000 Beds: 4 Baths: 2.5

Move-in condition in this price range in Pebble Beach is hard to find. But, here it is, and it features an eat-in kitchen as well as a separate formal dining room. To supplement the spacious kitchen is an adjacent inside laundry with lots of additional cabinet space. The home is located on a quiet lane in the PG school district. SqFt: 2,025 Lot: 10,600 Sqft lot Check out my website for photos. Pretty.

® Patty Ross, KRXA Radio Show #226 3/2/12

Five Issues for Housing in 2012

2012-02-09T09:51:00.000-08:00

Trying to figure out where the housing market is headed in 2012 offers a strong sense of déjà vu: The market feels just as it did at the beginning of 2011, when many pundits optimistically predicted that housing would finally hit bottom.

The housing market didn’t deteriorate in 2011, but it didn’t firm up either amid an economic recovery that struggled to find its footing.

So what does 2012 hold? For one, the story will be local. While many housing markets rose together during the boom and fell together during the bust, they’re exiting the downturn at different speeds, and so it’s not very useful to talk about a “national” housing market.

With that caveat in mind, here’s a look at five key issues that will help determine whether prices stabilize and sales improve in the coming year:

1. Confidence and jobs: The housing market badly needs the economy to add more jobs to stimulate demand for home purchases and to prevent mortgage delinquencies from rising. The good news is that with prices down by 30% from their peak and mortgage rates at their lowest recorded levels, housing is more affordable than it has been in decades. But many would-be buyers are worried about buying today if prices are going to be lower tomorrow. Others don’t want to buy a house until they have more evidence that they’re not going to get laid off or see their hours cut back.

2. Foreclosures: Whether home prices hit a floor this year also relies on how banks manage a huge overhang of foreclosed homes that they haven’t yet taken back and resold. Banks and other mortgage investors own around 440,000 foreclosed properties, but there’s another 3.4 million loans in foreclosure or serious delinquency, according to estimates by Barclays Capital. Because banks are faster to cut prices to unload inventory than are mom-and-pop sellers, home values can fall further as the share of distressed sales rises.

This is one by reason why policymakers at the Federal Reserve and elsewhere are talking about converting some of those foreclosed homes into rental properties. Look for some pilot programs where government entities test the concept this year.

3. Rents: Apartment rents are rising as vacancy rates drop to levels that are already lower than the low point in 2006 during the previous economic cycle. If low mortgage rates aren’t enough to give urgency to would-be buyers, rent hikes could accelerate buyers’ decisions to take the plunge.

4. Mortgage credit and rates: Federal policymakers have taken extraordinary steps to keep mortgage rates low and federal-backed entities are responsible for backing nearly 9 in 10 new mortgages. But it’s still hard for many buyers to get a loan because banks are demanding lots of documentation of borrowers’ incomes, and appraisals are tanking some deals. When appraisals come in below agreed upon sales prices, sellers must drop prices or buyers must put down more cash. Banks will need to put their legacy-loan problems behind them before there’s much easing in lending standards.

Other wildcards remain on the lending and rates front: will the Federal Reserve initiate another round of buying mortgage-backed securities—a step known to some as “quantitative easing”—to lift the economy? Will continued litigation and demands that banks buy back defaulted loans from mortgage titans Fannie Mae and Freddie Mac lead them to be more stingy with mortgage credit? And will other lenders move in to fill that void? Will the government do more to juice up refinancing programs? Will rates rise as the government attempts to draw back private capital by raising the fees that Fannie and Freddie charge to lenders? Whew! Lots of questions!

5. Regulation: Many analysts don’t expect Congress to make major changes to Fannie Mae and Freddie Mac during the election year, but several major regulatory changes could significantly reshape the future of the lending landscape in 2012. Dodd-Frank Act lending rules that have yet to be spelled out by regulators will influence how banks price loans that are bundled and sold into securities. Another set of rules will determine how banks must satisfy provisions for them to determine that a borrower has the ability to repay a mortgage.

Meanwhile, the regulator that oversees Fannie and Freddie is revamping the way that mortgage companies are paid for collecting loan payments. This could lead to a broader shakeup in the mortgage industry that ultimately influences how much borrowers are charged for mortgages and how banks handle loans that fall into delinquency.

So what does all this point to? Now is the time to buy a home!

Carmel home sales and prices end 2011 on a high note as sales across the Peninsula were on the rise

2012-01-26T05:44:00.000-08:00

Overall, 2011 brought us more home sales and slightly lower home prices according to a recent article in The Monterey Herald. (Monterey Herald, Lance Wallace, January 20, 2012). In fact, prices, interest rates and inventory are all lower than they were a year ago, which has many people feeling a little more optimistic about the market.

Carmel experiences the sharpest increase in both sales and prices, which were up for the year.

Sales jumped from 167 a year ago to 204 in 2011. The average sale price rose $30,000 to $1,356,000.and that's good news! Here are some of the other highlights of the article:

Sales increased in Carmel, Monterey, Pacific Grove and Pebble Beach, the Multiple Listing Service reported.

There were slight decreases in Carmel Valley and Marina.

At the end of 2011, there were 1,293 homes on the market, down from 1,574 a year earlier.

What agents call distressed properties — short sales, where the lender accepts a discounted payoff — and foreclosures accounted for 43 percent of the sales last year, said the Association of Realtors.

In Salinas and the Salinas Valley, 72 percent of the sales last year were foreclosures or short sales.

Five Great Things about Homeownership

2012-01-10T10:08:00.000-08:00

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (down payment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $2000 today, then it will still be $2000 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a down payment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Here’s how the declines in prices size up for our local market:

2007 2011 Total Decline

Carmel $1,887,487 $1,356,130 29%

Monterey $901,595 $522.080 43%

Pebble Beach $2,702,385 $1,851,635 32%

Pacific Grove $925,837 $610,845 35%

Seaside $636,138 $299,372 66%

Carmel Valley $1,525,000 $861,420 44%

SMH $1,173,063 $752,694 36%

Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!

© KRXA Radio Show #221 January 6, 2012

Live, Work and Play in Monterey

2011-12-11T09:38:00.000-08:00

Looking for a good reason to make the move to Monterey County? Here's a few...

Morgan Winery, Bernardus Windery and Pierce Ranch Vineyards were recently recognized for their award-winning wines. Morgan Winery received a prestigious accolade for their 2009 Metallico Chardonnay in Wine Spectator's "Top 100 of 2011." SF Gate named 2010’s Bernardus Griva Vineyard Arroyo Seco Sauvignon Blanc and 2009’s Leojami Pierce Ranch Vineyard San Antonio Valley Grenache on their "Top 100 Wines of 2011."

Condé Nast Traveler readers gave high marks to Monterey County in the 2011 Readers' Choice Awards. Our beautiful city of Carmel once again took honors as one of the top ten cities in the United States.

L'Auberge Carmel

Big Sur and Carmel Valley also received recognition, appearing on the United States Top Hotel List with entries for Ventana Inn and Bernardus Lodge, while the Post Ranch Inn, L'Auberge Carmel, Hyatt Carmel Highlands and the Green Gables Inn all made the cut for the Top Small Hotels in the US. Carmel's own Mission Ranch was ranked as a favorite among the nation's Small Resorts and The Inn at Spanish Bay was ranked as one of the country's Top Resorts. And last, but not least, The Lodge at Pebble Beach was honored as one of the top 100 properties in the world!

The communities of Monterey County are a great place to visit...and an even better place to call home!

Housing Affordable for More Californians

2011-12-09T09:34:00.000-08:00

According to a recent report from the California Association of Realtors® the combination of lower home prices and lower interest rates has resulted in an increase in home affordability for the third quarter of 2011.

The percentage of California households that could afford to purchase a median priced home of $292,120 rose to 52% in the 3^rd quart up from 51% in the 2^nd.

Regionally, housing affordability rose in most counties in the Bay area, but was lower in Los Angeles and Fresno counties. Most affordable was San Bernardino County in Southern California and the least affordable was San Mateo County in Northern California.

5 Tips for Efficient Downsizing

2011-12-07T11:12:00.000-08:00

There is a lot of downsizing going on in the real estate market today. Baby boomers realizing they don’t need the big house anymore and are trading down to that little Carmel cottage by the Sea. And with that comes getting rid of lots of stuff to accommodate the smaller space. Get a fresh start before the New Year begins by lightening your load!

The organizational benefits of downsizing can be very rewarding. You can save time, restore order, relieve stress, free up space, and perhaps most importantly, save money. It’s important when you’re organizing and downsizing to try to keep your emotions out of the process. The process may seem overwhelming, but you can do it, and here are some tips that will help you accomplish the task:

1.) Try not to focus on the entire house at once. Break things down room by room. Take on one project at a time and don’t allow yourself to get overwhelmed. If the room itself seems to be too much to take on, just focus on one area at a time, like a closet. Accomplish something before moving on to another area. Small steps yield big rewards. Set realistic goals about the amount of time you need, and create a timeline that works for you. Kind of schedule it, like a doctor appointment!

2.) Evaluate what you have. Everyone has extra stuff. Ask yourself: Do I use this? Need it? Love it? Is it in good condition? If you haven’t used or thought about something in over a year, it’s probably safe to get rid of it. Sell valuable items that you no longer need. E-bay and Craigslist are both great online tools that will help you cash in on things that you don’t need anymore. Or donate. There’s no shortage of organizations that take in the things you don’t use and distribute them to people in need. What a great feeling that is! I’ll plug CASA of Monterey County here, a great organization to help kids who have been abused or neglected. Call me for that number. At 236-4513

3.) Properly store irreplaceable items. Meaningful items such as old photos, yearbooks, wedding dresses, and christening gowns should be properly stored in sealed containers in order to protect them from the elements. You may even want to go one step further with old photos and convert them to a digital format to ensure that they will always be safe. If your children have grown and moved out, as hard as it may be, remind yourself that you are not responsible for providing storage for your adult children. Someone please tell that to my children…

4.) Stay positive. Getting rid of items that remind you of your past can be an emotional process. At first it might seem difficult to part with those masterpieces that your children created when they were small, but there’s no reason to keep every scrap of paper your child has ever brought home. Instead, concentrate on what’s important you, and visualize what your home will look like when you have de-cluttered and re-imagined your space. I have found that after de-cluttering, most people wish they had done it sooner.

5.) Hire a REALTOR ® who specializes in working with downsizers. This type of move is a specialty and requires a unique set of skills and a great deal of planning and patience. You will need someone who works well with you. You might find yourself needing the services of others, such as stagers, de-clutterers, and junk removers, as well as a storage plan for the things you can’t bear to part with or want to keep safe. With the right connections, you’ll be able to find someone who is not only familiar with your situation, but who has existing relationships and can assure that the process moves smoothly from beginning to end.

You know, in my last life I was a retailer and part of our services was closet re-organization which I’m still really good at and include it as part of my listing services so call me on that…

Dispelling the 20% Down Payment Myth

2011-11-07T07:16:00.000-08:00

In the past, I have received questions regarding my comment about down payments not necessarily having to be 20%. There is a government proposal that could have significant impact on the future of the housing industry: the QRM, or Qualified Residential Mortgage, as part of the Dodd-Frank Act. According to the proposed QRM definition, lenders must hold 5% of the risk of any given residential loan unless it is considered a QRM, which is a loan that has a 20% down payment and meets other debt-to-income and borrower credit history requirements.

While QRM would not automatically preclude loans from being originated with less than a 20% down payment, these loans will cost significantly more, as the lender will be required to hold a percentage of the risk.

So it seems the speculation and debate surrounding QRM is causing some low-down payment home buyers to believe they will not be able to obtain financing. These prospective home buyers are hearing that lenders will no longer approve them for a mortgage unless they have at least a 20% down payment. It appears this belief stems from misinformation from recent media stories and even some loan officers and real estate agents.

This is simply not true. Mortgages are available for low down payment buyers, both through the FHA and through conventional loans backed by private mortgage insurance. I’m working with a buyer right now who’s getting a conventional 3% down loan!

While news stories continue to emphasize nothing but “doom and gloom” scenarios, the reality is that market conditions have changed for the better in recent months. While the housing crisis has led to an increase in underwriting risk considerations, a more “normal” lending environment has resumed in a majority of U.S. cities and mortgage rates are some of the lowest in years. (3.87-4.87% today) These low rates, combined with good deals on home prices, equal a time of unprecedented opportunity for potential home buyers.

But potential home buyers need credible, reliable housing finance information and they can find this information through partnerships that we have established with mortgage loan professionals who are up-to-date on the best possible options for buyers. As real estate agents, we are one of the most powerful influencers in the home-buying process, with the ability to provide clarity on misconceptions surrounding the current market and to encourage potential home buyers who may have put their home purchase plans on hold to resume house hunting at full speed.

Otherwise, qualified buyers with low down payments may turn away from the market based on a misconception, which is a lost opportunity for them to purchase a home at a time of high affordability. This is the last thing anyone wants at a time when new buyers are needed to help the market recover.

© Patty Ross, KRXA Radio Show #218 November 4, 2011

Refinancing sees modest boom thanks to falling mortgage rates

2011-11-04T10:22:00.000-07:00

In the November 4th edition of The Monterey Herald, reports out of Washington show the average rate on a 30-year fixed mortgage has fallen to 4 percent this week. This drop nearly matches the all-time low hit one month ago.

According to the article, "Freddie Mac said Thursday the rate on the 30-year loan dropped from 4.10 percent last week. Four weeks ago, it dropped to 3.94 percent — the lowest rate ever, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage fell to 3.31 percent from 3.38 percent. Four weeks ago, it too hit a record low of 3.26 percent."

(Source: Monterey

Playing and Surviving the Interest Rate and Appraisal Game

2011-10-07T11:24:00.000-07:00

5 Ways to Get A Lower Interest Rate and The Appraisal Game

Interest rates right now are at an all-time historic low- below 4%, even for a jumbo loan. So many folks out there are wondering how to go about taking advantage of this situation.

Research your home’s value. Looking at your home’s tax value, checking online estimates, or asking a real estate agent for a price opinion can help you determine how much your home might be worth. The only way to know for sure if a refinance is in the cards is to order up a $400 appraisal. Call me for referrals for your specific area. 831-236-4513
Check your FICO credit score. It’s the most widely used score in the mortgage industry. If you are concerned about your credit, buy your FICO score from one of two credit bureaus for $19.95 ($39.95 for both) at www.myfico.com. You can also estimate your score at the site, or at www.creditkarma.com .
Call your current mortgage holder to see if they can offer a better deal without an appraisal and major paperwork. Compare any offer with at least one bank and credit union before ordering an appraisal. It may also pay to work with a mortgage banker who has access to multiple lenders. Of course I have great referrals for those as well. Email me at pattyross@kw.com.
Consider the term. Many families are switching from 30-year mortgages to shorter terms. Some are even throwing cash into the mortgage at the closing table. But, since only 24 % of Americans have at least six months of emergency savings, paying the mortgage faster may not be the best choice for many. I really like the idea of starting a housing fund in a savings account that could be used for a down payment when it’s time to move, a remodel, or just a cash cushion.
Create a plan for the money freed up by a lower monthly payment. Will you take the savings and throw that money back into the mortgage to reduce principal faster? Will you start saving for college or retirement or finally pay off that credit card debt? Come up with a plan. Otherwise, you risk whittling that money away with nothing to show for it.

5 Ways to Fight a Low Appraisal:

What do you do when the appraisal on the dream home you want to buy comes in below the price in the offer the seller has accepted—even as much as 10 to 20 % below?
Chances are that raising the cash for your down payment and closing cost has tapped you out. Finding thousands more to make up the difference between the appraised value and the contracted amount is out of the question. However, you don’t have to walk away. You can fight back. You have options, and chances are you can find a way to make the deal work without increasing your down payment.

Get the seller to lower the price. By far, this is the easiest solution, especially if your appraisal comes in less than 10 % of the contract price. So why would a seller go along? In July, 2011 the average home in America took about 88 days to sell, about right for the under $1M market here, 133 days for the over $1M market. Demand is soft and time is money. Lowering the price might be a cheaper option for the seller in order to get the deal done on time. Sometimes a bird in the hand is best.
Ask the seller to offer to carry a second mortgage for the difference. This solution doesn’t cost the seller anything but the buyer incurs greater debt. If the buyer really wants the home but can’t come up with the difference in cash, making payments or a lump sum payment at a later date to the seller is an option.
Do your research and dispute the appraisal. You have the right to get a copy of the appraisal from your lender and to find out who did it. If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal.
Ask the lender for a new appraisal. Should you find that you have a good case that the appraisal wasn’t fair or accurate, ask your lender for a new appraisal. Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely.
Get your own, independent appraisal. If you order your own appraisal and your loan is an FHA loan, ask the lender for a list of approved appraisers. Usually the bank will review your appraisal and ask the previous appraiser if they agree or disagree with the newly submitted one.

If the first appraiser disputes your appraisal, the bank may request a third appraisal, or they may just reject your appraisal. However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.

If these tactics fail and you can’t make up the shortfall in the appraised value, you may find yourself moving on. If so, be sure that you were protected by a contingency clause in the sales contract, stating that the transaction can be terminated if the home doesn’t appraise at, or above, the sales price. And of course any good agent knows that.

© Patty Ross, KRXA Radio Show # 217

Monterey County Sees Average Home Sale Price on the Rise

2011-09-27T11:06:00.000-07:00

Have we finally seen the bottom of the market in Carmel?

It's very possible, based on recent stats published in the Monterey Herald ("Average home sale price rises 10 percent," Lance Wallace, 9/24/11)

Monterey County real estate sales were up slightly from July to August, with the average sale price rising 10.4percent to $441,707.
There were 269 homes sold in the county in August, up 12 from July, the Association of Realtors reported. The August total was off five from a year ago.
Sales in Carmel, which have been strong all year, dipped from 16 in July to 11 in August, although the average sale jumped from $1.33 million to $1.65 million.

Carmel Valley sales were down from 12 to eight, while the average sale price jumped from $607,000 to $775,000.

Sales in South County, which has the lowest prices in the county, rose from 43 to 55. Sales were up by two in East Salinas, which has the second-lowest prices.

In Pacific Grove, there were 13 sales in July and 18 in August. There was an average of 11.3 sales a month for the first half of the year.

So remember, while it's been said before, real estate really is all about location. So before you buy or sell, make sure you are working with the right information for your local market.

The Eternal Question...Which is a Better Investment -- Stock or Real Estate?

2011-09-25T13:47:00.000-07:00

Writing in the Wall Street Journal, USC Economist, Robert Bridges tells us that “a dollar used to purchase a median-price, single-family California home in 1980 would have grown to $5.63 in 2007, and to $2.98 in 2010. The same dollar invested in the Dow Jones Industrial Index would have been worth $14.41 in 2007, and $11.49 in 2010.”

Timing
Bridges makes a carefully constructed comparison which includes 2007, the top of the real estate market. According to the Federal Housing Finance Agency, home prices this April were down 19.3 % from the 2007 peak.

Surely the comparison would have been far more interesting if it looked at stock values and compared Oct. 12, 2007 with March 6, 2009. During this period the Dow went from 14,093.08 to 6,626.94. As this is written the Dow stands at 11,493.57.

So, if you pick particular times you can truthfully say the Dow fell more than 50 percent in a given period or that prices actually doubled, depending on what you want to prove.

Reality
Bridges offers an interesting comparison of economic results: “If a disciplined investor who might have considered purchasing that median-price house in 1980 had opted instead to invest the 20% down payment of $19,910 and the normal homeownership expenses (above the cost of renting) over the years in the Dow Jones Industrial Index, the value of his portfolio in 2010 would have been $1,800,016.”

The reality is very different. Few buyers purchase with 20 % down — that's why the marketplace is dominated by conventional loans backed with private mortgage insurance as well as FHA- and VA-insured financing. Moreover, even if investors buy stock they still have “normal homeownership expenses” assuming they prefer to live indoors.

Segmentation
No less important, Bridges does not look at national home prices, he looks with laser-like focus at California, one of the hardest-hit foreclosure centers.

But just as Bridges has picked one particular real estate market for his comparison, we could also pick a stock or two. For instance, we might pick GM, a long-time member of the 30 companies which made up the Dow Jones Industrial Average. Or, at least was a member of the Dow until 2009 when it was replaced by CISCO systems.

Such changes mean the Dow is not a consistent measure because the index evolves to include a changing cast of corporate characters. Imagine where the Dow would stand if it continued to include the results of such past index members as Standard Rope & Twine (1896), Federal Steel (1899), Studebaker (1916), Woolworth (1924).

The Dow components of 2007 and 2009 are different from the Dow components in 2011. If the same companies were kept in place then the index results would be different. This is the equivalent of looking at home values in 2007 and 2011, but excluding 2011 short sales and foreclosures — something not done by appraisers, lenders, investors or homebuyers.

Perspective
A segment of the population believes things are in such bad shape today that the only way to preserve economic value is to stockpile gold, tent pegs, and sandwich makings. In this view, nothing else has value, and it's entirely possible that values will fall further — including both stock and real estate values.

Given events in Iceland, Ireland, Greece and Portugal — and looking at U.S. job erosion and the budget debate — it's hard to dismiss those who believe our economy is contracting and with it much of our wealth, influence and social stability.

Yet, as dim and dark as things are for many Americans, there's also a case to be made that selected real estate remains an attractive investment option.

We have a massive internal market, an established infrastructure and much to do. We need to improve our roads and bridges, become energy independent and better educate our children, among many other needs. When we inevitably undertake such projects there will be a new round of job growth and economic development.

Moreover, our population is growing. We now have more than 311 million people inside our borders — that's about 10 million new people since 2007 and they all need housing.

Want more? Mortgage rates are below 5 %. Mortgage interest is deductible. Investment real estate is depreciable. Home prices are down. Home prices in major foreclosure centers — including areas with wonderful climates — are way down. Foreclosure prices are down most of all — distressed properties are selling with a 20 % discount nationwide according to the National Association of Realtors.

Options
And what about alternatives? Yes, the stock market is alluring but can you really compete against the computer programs which make most of today's trades in microseconds?

Or, how about a low-risk certificate of deposit? A five-year CD will now yield about 2.15 %. That's great, except that the inflation rate reached 3.6% in May. Your CD will lose buying power each month the rate of inflation is higher than the interest rate.

Meanwhile, what about rents? While home prices have swooned rental rates are rising. According to REIS, Inc., apartment rents were up 2.4 % during the past year and vacancies were down.

Large numbers of people have been foreclosed but they still need shelter. While ownership may not be affordable and credit has been damaged, many such households can readily afford a good rental and that's important to investors.

Toward The FutureIn the end I'd say Mr. Bridges is half right: Individual stocks have sometimes been better investments than specific pieces of real estate and sometimes particular parcels of real estate have been a better option than selected stocks. He does also say “Owner-occupied homes will always be the basis for healthy and stable neighborhoods”.

And let's just leave it at that, shall we?

© Patty Ross, KRXA Radio Show

Homeownership Matters - Now More than Ever!

2011-08-30T18:23:00.000-07:00

According to Real Estate Magazine, we are a nation of homeowners—67% of American households are owner-occupied. And housing is a key driver of our economy, accounting for 15% of our Gross Domestic Product in general. The article goes on to say:

"Research shows that for every home purchased, $60,000 is pumped into the economy for furniture, home improvements and related items. Plus homeowners pay 80-90% of individual federal income taxes, contributing to federal programs that benefit all Americans.

Despite media rumors to contrary, homeownership has a significant, positive impact on net worth, educational achievement, civic participation and overall quality of life. Owning a home is one of the best ways to build long-term wealth. In the past 12 years, a typical homeowner’s net worth has been 31-46 times that of a renter. Plus, most homeowners enjoy stable housing costs. In fact, studies show that fixed rate mortgage payments typically stay the same, while rent has increased at an average rate of approximately 3% per year in the last 10 years.

The National Association of Realtors contends that homeowners contribute more to their communities by voting and volunteering more. They do not move as frequently as renters, bringing stability to neighborhoods, which helps reduce crime and support upkeep.

And it has been shown that homeowners enjoy a better quality of life. They tend to be happier and healthier, and feel a greater sense of control over their lives. They are free to redecorate, renovate and modify their homes as they wish. And their children tend to do better in school and stay in school longer, according to a recent white paper by NAR titled “The Social Benefits of Home Ownership.”

So far this year, we have seen plenty of highs and lows in our local, national and global economy. So this informatin is good news, because right now, we need good long term investments now more than ever.

Remember...Spread the word...Homeownership DOES make a difference!

Ch-Ch-Ch-Changes in Loan Limits: What They Could Mean to Buyers and Sellers Like You

2011-08-24T08:00:00.000-07:00

New research from NAHB (National Association of Home Builders) examines the scope of impact on housing markets from the scheduled October 1, 2011 decrease in the GSE (government sponsored enterprises) and FHA(federal housing administration) loan limits.

These loan limits determine what types of mortgages may be securitized by the GSEs, Fannie Mae and Freddie Mac, or insured by the Federal Housing Administration. Loans that fall outside of these limits would be subject to tighter credit conditions, including higher interest rates and larger down payments.

This increase in the cost of credit for such loans could mean weaker demand for homes in the affected price ranges, which could result in downward price pressure in many areas of the country, particularly high cost markets (like us). As home sales are inter-related (for example, starter homes are sold to first-time home buyers by move-up buyers), this pressure on prices could spill over on other homes in the affected areas.

Using reasonable assumptions concerning down payments and Census data of housing values, the new analysis finds that the scheduled declines in GSE loan limits will affect 204 counties, containing 1.38 million owner-occupied homes (5 % of homes in the U.S. in the affected price ranges.)

Adding this number to the number of homes that are currently outside the temporary mortgage loan limits produces an estimated total of 5 million homes (7 % of U.S. homes) that will not be eligible for GSE-backed funding if they were put on the for-sale market. The 204 counties affected contain 27 % of all homes in the nation.

The effects for the scheduled declines in the FHA limits are more expansive. These declines will affect 620 counties, adding 3.87 million homes (11% of all U.S. homes) to those outside the temporary loan limits, for a total of 12.2 million homes (16% of U.S. homes) ineligible for FHA-insured mortgages. The 620 counties affected contain 59 % of all homes in the United States.

Given the potential to weaken housing demand for homes that in October would fall outside of the present-law loan limits, plus spillover effects due to inter-related sales, the expiration of the present-law loan limits will be a negative factor weighing down housing in the Fall.

This analysis also suggests concern with respect to a recent proposal to eliminate the floor, or nation-wide minimum, for FHA loan limits nationwide. Under present law, and counting U.S. territories like Puerto Rico, 2,475 counties have FHA-loan limits at the floor ($271,050). As of October 1, 2011, this number will grow to 2,773 as the counties described earlier experience a drop in their applicable FHA loan limit.

Under a proposal to eliminate the FHA floor, the vast majority of these counties, comprising about 85% of all counties, would experience a decline in the number of homes eligible for FHA-insured mortgages, increasing mortgage costs for a significant number of home purchases in the United States and adding to downward price pressure.

After October 1^st here in Monterey County our new loan limit for GSE backed loans are going from $729,750 to $483,000. A recent article in the Monterey Herald, published on August 20th, noted "that number is determined by the median sale price for the county, even though there's a big difference between the Peninsula and Salinas. Many other areas, including Santa Cruz County, will see a $625,000 limit. The Monterey County Association of Realtors is seeking legislation that would put it in with the others at $625,000."

So what this all mean to us, or more particularly buyers and sellers, is that the time to get your house on the market or buy a house is before October 1^st.

© Patty Ross - KRXA Radio Show #212

Talks to Settle Foreclosure Probes Could Take Months

2011-08-22T13:00:00.001-07:00

Talks to settle state and federal investigations into botched foreclosure paperwork will be going on for a long time, according to government officials after holding their first face-to-face meeting with top bank executives, in June of this year. They cautioned that they are looking at months, not weeks or days.

Representatives of the five largest mortgage servicers—Bank of America Corp., JP Morgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. have been meeting with government officials in Washington.

But according to the Sunday Wall Street Journal, "Efforts to reach a settlement that would end the long-running probe of foreclosure practices are snagged over whether banks will get broad legal immunity from state officials for mortgage-related claims."

Previously, there was discussion of a settlement of investigations into problems in the foreclosure process, including bank employees signing documents without reading or understanding them, a practice called robo-signing.

Iowa Attorney General Tom Miller, who is leading the negotiations for the states, says that the session was a good first meeting but that no agreement was imminent. Attorneys general of all 50 states and representatives of seven federal agencies are investigating the foreclosure troubles.

The two sides have exchanged draft proposals covering new guidelines for foreclosures and mortgage servicing. Banks could be forced to pay as much as $25 billion in a settlement and might be required to allow homeowners to sell their houses for less than what is owed on their mortgages.

So, what does all this mean to us? It means that as long as there are no or limited new foreclosures coming on the market, prices should be stable and not continue to decline, good news for sellers for a change!

Carmel Home Sales are on the Rise

2011-08-21T22:40:00.000-07:00

The auction gavels have fallen silent, the roar of the engines has faded into the night, and there were definitely some big winners at this year's Pebble Beach Concours d' Elegance. Congratulations to all the winners and participants and a big thank you to the local communities for all their support. It was great to see the Concours on the Avenue return to downtown Carmel-by-the-Sea this year, too.

The Monterey Peninsula definitely made news this week, with highlights of the events and auctions being televised nationwide. (This beautiful Bentley was definitely headline worthy!)

But cars aren't the only thing making news right now in our local market. Contrary to the gloom and doom real estate news on a national level, we here in Carmel are seeing a boom in sales. While home sales in other areas of Monterey County continue to lag behind last year's figures, Carmel is up by 35% with some buyers even paying "above asking price."

According to the most recent figures from the Monterey County Association of Realtors, there were 122 homes sold in Carmel through July 31 this year, up from 90 for the same period last year. The average sale price for a home in Carmel for the first half of 2011 was $1.34 million.

And that really is good news! To read the full text of the Monterey Herald article, click here.

Coming to town next...the Monterey Jazz Festival. . . Here's to real estate continuing to hit just the right notes!

The Monterey Peninsula Revs Up for Classic Car Week

2011-08-17T14:31:00.000-07:00

What's world famous and a draw for locals, tourists and celebrities alike? The answer... it's the annual Pebble Beach Concours d' Elegance, which has officially motored into town. And with it comes plenty of opportunities to see beautiful automobiles set against stunning backdrops at locations across the Peninsula -- from the Pacific Ocean to Carmel Valley.

Here's a quick look at what's coming up:

Thursday 8/18

Pebble Beach Tour d'Elegance | 7am - 3pm | Cars on display on Ocean Ave in Carel from 12-2pm

Friday 8/19 - Sunday 8/21

The Quail, A MotorSports Gathering | 10am - 4pm | Quail Lodge, Carmel Valley

Rolex Monterey MotorSprts Reunion | Fri - Sun - 8:45am - 5:00pm | Mazda Raceway, Laguna Seca

Concourso Italiano | 9am - 5pm | Laguna Seca Golf Ranch, Monterey

Sunday 8/21

Pebble Beach Concours d'Elgance | 9am - 5:30pm | 18th Fairway, The Lodge at Pebble Beach

And who knows, maybe while your touring the town, you'll see something that would look great with a sporty little number (like the one I posed for a photo with) parked in front!

Here are my top picks:

56 YANKEE POINT DRIVE | Carmel Highlands | Offered at $7,499,000

One of the newest homes on the Ocean front for the entire peninsula. 3 BR, 3.5 BA, 4,268 sq. ft. Whitewater views, professionally designed, meticulously maintained. Decks accompany the spectacular landscaping overlooking Yankee Point and private beach.

30560 AURORA DEL MAR | Carmel Highlands | Offered at $6,195,000
A rare opportunity to acquire ocean front property in the exclusive gated oceanfront enclave of 18 homes, Otter Cove. This 3 BR, 3 BA, 4,357 sq. ft. home is sited to take advantage of the dramatic white water views and close proximity of Otter Cove, the clean architectural lines of this private home on 1.1 acres sets the stage for the rocks, the white water and the ocean to be the centerpiece. A place to experience.

26230 DOLORES STREET | Carmel | Offered at $2,950,000

Gorgeous 3 BR, 2.5 BA, 2,500 sq ft house-outstanding white-water ocean view-3 levels w/ decks! Large lot w/ garden and outdoor FP. Steps to Mission Ranch/blocks to beach.Open floor plan, high ceilings/wood floors/fireplace. Fabulous kitchen w/ granite, Viking appliances & dining area. Beautiful stairway to 3rd floor loft w/ deck-view. Master suite w/ luxurious bath, plus room for gym/wine cellar/media. Great design.

2876 OAK KNOLL ROAD | Pebble Beach | Offered at $1,698,000
Short Sale Opportunity. This 5-year-new custom built home boasts spectacular white water ocean views from nearly every room. Located one block from famous 17-mile drive and Spanish Bay. Enjoy the view of the surf as it crashes to shore from your master bedroom suite and view deck. Professionally landscaped grounds are perfect for entertaining. Pebble Beach at its finest.

Debunking Today's Common Foreclosure Myths

2011-08-16T16:12:00.000-07:00

You shouldn't let emotions or misinformation stop you from keeping your home. People fear foreclosure almost as much as they fear death. But unlike death, foreclosure can be prevented.

Unfortunately, just as some people ignore an illness' symptoms in hopes that it will just go away, some troubled owners are afraid to confront their problems and take the necessary actions to save their homes. But with so much misinformation flying about, who can blame them?

Here are some common responses and misconceptions.

Dread: "If I tell the mortgage company I'm having a problem, it will speed up the foreclosure process."

Contacting your lender is an important first step, and the sooner, the better. It provides you with an opportunity to explain your situation and what steps you are taking to deal with it. Yes, your lender can be your adversary, but that's much later in the process. Right now, the lender can be your best ally. So call the lender early.

Fear: "If I miss just one payment, I'll lose my home."

The foreclosure process doesn't even begin until you are at least 90 days delinquent on your mortgage. But by that time, you are three months behind, and that's a deep hole from which to try to dig out.

It's much easier to get back on track after missing a single payment, so reach out to your lender and ask for help in making up your deficit. Even if you think you might miss a payment or two, let your lender know what's up. Lenders have a financial interest in keeping you in your home and may be willing to modify the terms of your loan or devise a repayment plan.

Regret: "I'll rob Peter to pay Paul until I can get back on my feet."

Many people try to ride out their financial difficulties by depleting their savings or even dipping into their retirement accounts. Although using your mattress money may be the right step, pilfering from your IRA or 401(k) plan should be the last thing you do, if you do it at all. Long before that drastic step, seek help. Otherwise, by the time you do seek help, you could be in even more desperate straits and your options will be fewer.

Ignorance: "What choice is there but to lose my home?"

There are plenty of choices, but most people don't know what they are. And they won't until they speak with a lender. Yet many delinquent borrowers think they can handle their problems on their own without help. Most can't.

Panic: "I'm receiving so many offers from people who say they are trying to help me save my home that they all must be scams."

Yes, there are a lot of dishonest people offering false promises. And if you take up with one, it could make your financial situation much worse. At the same time, lenders are hiring all sorts of companies to try to make contact with borrowers who won't answer their mail or pick up their phones. So how do you know the good guys from the bad?

Beware of cold callers who don't already have your loan number. If that's missing, the deal is probably bogus. According to Freddie Mac one of the country's largest mortgage investors, the companies it hires to deal with delinquent borrowers will know that number.

Other tip-offs include upfront fees and pressure to sign something immediately. You shouldn't have to pay anything in advance. Pay only for services rendered. And don't put your signature on anything, especially something that's incomplete, until you have a chance to run it by a financial advisor, your tax preparer, or someone you trust.

Terror: "My lender isn't responding to my inquiries."

Don't give up. Never give up. Again, this is a process, and it takes longer than you think. So be patient.

At the same time, keep detailed records of all your calls. Once contact is made, write down the name of the person with whom you spoke, his or her identification number, the date and time of your conversation and a summary of what was said. Also make copies of all your correspondence and other paperwork. Lenders tend to lose things.

Alarm: "To get my lender's attention, I should stop making my payments."

You don't need to be behind to get help. Millions of owners are in the same boat as you. Lenders are absolutely swamped. Even years into the housing crisis, they still don't have the staffing with the training and experience to handle the onslaught. So be patient — and keep trying and trying to reach your lender.

Keep making your payments, too — to your lender, no one else. If you stop, it will hurt your credit and increase the possibility that you will lose your home. And if someone wants you to mail the payments to him or her instead, you almost certainly will lose your home if you do.

Alert: "If I've been turned down for a loan modification, there is no point in seeking further help."

Just because you didn't qualify before doesn't mean you won't qualify now. Look at the federal loan-modification programs as well as your lender's. Besides, program parameters change all the time, so the rules might have been liberalized since you last sought help. Or your situation may have changed for the worse.

A housing counseling agency can help at any time, but it can be particularly helpful if you've been rejected. The Consumer Credit Counseling Service of Monterey County says many owners are refused because they did not provide proper documentation or failed to consider all their expenses.

Also, the lender may have made a processing error or not followed the rules. You won't be able to spot these miscues, but an experienced counselor will. You can find a government-approved counseling agency at http://www.hud.gov./

© KRXA Radio show #213, August 5, 2011

Understanding Buyers Closing Costs – Who pays what?

2011-06-20T09:00:00.000-07:00

With home prices so low and as a consequence, so many 1^st time buyers, I thought this tutorial about closing costs might come in handy.

What Are Closing Costs?

Closing costs are fees paid when completing the sale of a home. The closing is the process that finalizes all legal documentation and results in transferring property ownership to its new owner. Some costs are one-time fees and others are recurring fees that will be paid over the life of the home loan.

Who Pays for Which Fees?
The seller and buyer each pay a share. Some costs are negotiable and regional customs may determine who pays what. Lenders are required to provide a good faith estimate of what the total closing costs will be, but that is just an estimate. Closing costs generally total about 3 to 5 percent of the total sales price of the property.

The buyer pays one-time, or non-recurring, fees relating to the property and the loan. Property-related fees include the down payment, property appraisal, home inspection, natural hazard disclosures, deed recording and purchase of a home protection plan. Non-recurring charges relating to the loan usually include fees for the loan application, credit report, loan origination, points (also called loan discount fees), private mortgage insurance (PMI) premium, title insurance policy premiums, deed recording, transfer of city, county and state taxes, escrows for homeowner's insurance and property tax, and the buyer's share of pro-rated costs for utility bills and property taxes. The buyer also pays clerical fees for courier and notary services and general processing and document preparation fees.

Recurring costs are the monthly payments. PITI—principal, interest, taxes and insurance—are paid by the buyer each month. These costs are best paid in cash if possible, as rolling them into the loan will burden these fees with additional interest charges.

Points / Loan Discount Fees
A point (or loan discount fee) is a sum paid by the purchaser to buy down the interest rate of a loan. Another way to look at points is as pre-payment on the loan's interest. Each point equals 1% of the loan amount.

Important Documents
Both the buyer and the seller will have signed a thick collection of important documents by the end of the process. When the transaction is complete, the buyer should have the deed (proves ownership), the mortgage and note, insurance policies, affidavits (binding statements made by either party), contract riders (anything that alters agreements in the sales contract), the Truth in Lending statement, and the HUD-1 settlement statement. The settlement statement spells out precisely what closing cost fees are being paid.

It is important to store all property sales or purchase documents in a safe but accessible location, as these papers will come in handy for preparing taxes and for other purposes through the years. I provide a CD now of the entire transaction to those who don’t want all that paper.

(c) Patty Ross, KRXA Radio Show #209 - Aired June 3, 2011

Green Homeowner Tip: How to Dispose of Hazardous Waste Properly

2011-06-16T09:00:00.000-07:00

We all have one—that shelf or cabinet with leftover paints, old bug killers and unwanted cleaners. You don’t want that toxic stuff near your kids or pets so you keep it out of reach.

It’s equally as important to keep those dangerous chemicals out of the environment. So when it’s time to get rid of hazardous household items, make sure you do your part and dispose of them the right way.

It’s estimated that every American home has an average of 100 pounds of hazardous household waste. This includes everything from paint and thinners to used motor oil, pesticides, bleach, cleaners and even batteries. Compact Fluorescent Light Bulbs (CFLs) are also considered hazardous waste due to the small amount of mercury they contain.

Let’s start with what not to do when getting rid of all this stuff. Pouring hazardous household waste down any drain sends the toxins directly into our water supply.
Drains include the ones inside your home and the storm drains outside. Pollution flowing into storm drains is called storm water pollution and it’s the leading cause of fresh water pollution in America.

You should also never put hazardous household waste in the trash. Whether it’s sending it to a landfill or burning it in a trash pile, both can release toxins directly into the air, land and water. Hazardous household waste needs to be disposed of properly. This means taking it to a qualified recycling center. You can also contact your county waste collection office for recycling information. Our is in Marina at the Monterey Regional Waste Management District. Many communities hold hazardous household waste collection events throughout the year so be looking for those too.

Another way to reduce the amount of hazardous household waste in your home is to start buying less of it. Many times there are natural alternatives that work just as well. Eco-friendly cleaners and pesticides are more widely available on store shelves and while they may cost more to purchase, keep in mind the true cost of an item is always more than just the money you spend.

Just because the hazardous household waste may be out of sight in your home, it shouldn’t be out of mind. Identifying it, disposing of it and reducing the amount in your home are all easy ways to do your part for everyday green living.

(C) Patty Ross - KRXA Radio Show #208 - Aired May 27, 2011

Bankrupt homeowners shed second mortgages

2011-06-14T09:00:00.000-07:00

Some struggling homeowners are using a little known, but increasingly popular, provision of the bankruptcy code to eliminate second mortgages and avoid foreclosure.

Bankruptcy laws prevent homeowners from eliminating the debt of a first mortgage if they plan to stay in their home. But second mortgages are treated differently. Second mortgages can be declared unsecured debt when there is no equity to cover them.

When that happens in a personal bankruptcy proceeding, the second mortgage is put on hold and no payments are required while the homeowner completes a repayment plan for other debts, which typically takes three to five years. At that point, the second mortgage is eliminated.

While this strategy has gained in popularity among homeowners, mortgage bankers are not in favor of the practice, and have called it “a troubling phenomenon.” However, there is little the mortgage industry can do, aside from seeking to change the law, which could be difficult given the current partisan lineup in Washington.

The law has been like this for years, bankruptcy lawyers say. It's just never been used as much because in the past there was usually enough equity in a home to cover the second mortgage.

Brette Evans, a San Jose bankruptcy lawyer says "We're having great results using the rule. In one recent case, a small-business owner was able to hang on to her home by setting aside a $240,000 second mortgage”, she said.

That put the borrower in "a safe zone" where she could work out a modification of her first mortgage.

(c) Patty Ross - KRXA Radio Show #207 - Aired May 20, 2011

Home buyers and mortgages – many flunked the test!

2011-06-12T14:48:00.000-07:00

A new survey indicates that many home buyers are ill-prepared to take out a mortgage, answering basic questions about mortgage information incorrectly nearly half (46%) of the time, according to Zillow Mortgage Marketplace.

More than 1,000 home buyers were asked to respond true or false to eight mortgage-related statements, including “The rates of 5/1 adjustable-rates mortgages always increase after years.” Although the correct answer is false, because 5/1 ARMs do adjust after five years, but the rates could go up or down, 57% of people surveyed answered this question incorrectly.
45% of home buyers surveyed also incorrectly stated that home buyers should always buy mortgage discount points. The fact is the decision hinges on how long the borrower plans to own the property, and in some situations, buying mortgage discount points is not worthwhile.
An additional 1/3 of respondents don’t understand that lender fees are negotiable and vary by lender, incorrectly thinking lenders are required by law to charge the same fees for credit reports and appraisals.
Survey respondents also believe that pre-qualifying for a loan means they have secured financing. With a pre-qualification, which is the earliest step in the mortgage process when a lender approximates the amount the borrower can afford, the lender does not run the borrower’s credit or request any documentation to verify the information provided by the borrower.
Slightly less than 1/2 of the polled prospective home buyers also didn’t understand that Federal Housing Administration (FHA) loans are available to all buyers, but instead believe only first-time buyers qualify. In reality, FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20%.

Reverse Mortgages Lead to Foreclosures

2011-05-03T08:30:00.000-07:00

Last month, AARP sued the Housing and Urban Development Department over a handful of reverse mortgages gone awry. Lenders, following the letter of one of HUD’s rules, are requiring newly widowed people who want to stay in their homes, to pay off the balance of their loans quickly, even if it is much more than the value of the home. Because they can’t (or won’t), the lenders are foreclosing.

This is happening only to a small number of people who did not have their names on the reverse mortgage for a variety of reasons. Some spouses did not put their names on the applications in order to qualify for a bigger loan, without necessarily realizing that they were putting themselves in jeopardy.

In 2008, HUD, worried about falling housing prices, issued what it called a clarification. The upshot of HUD’s notice is that the home is subject to foreclosure upon the death of the borrower if the estate or heir (say a spouse who was not on the original reverse mortgage) wants to keep the home but is unable to pay off the balance. The heir would have to pay that amount, no matter what the home was worth.

Here’s the practical result of all this: Let’s say a widowed spouse who wasn’t a party to the reverse mortgage loan inherited the home. She could sell it without having to pay the lender anything more than the prevailing market price (or a even little less) as long as she followed a few simple rules.

But if she wanted to stay in the home, the HUD rule would force her to pay off the entire original balance fairly quickly, even if it was for way more than what the home was actually worth because of declining home values.

And why might a spouse not be on the reverse mortgage loan? If her husband is 64 and she is under 62, she wouldn’t be eligible. Or one spouse may have owned the home and taken out the reverse mortgage before the marriage.

A more likely possibility, however, is that lenders encouraged younger halves of a couple not to put their names on the mortgage. Why? Well, when the older half of the couple applies alone, he or she qualifies for more money.

As complicated as this particular legal dustup appears, there is a simple moral. If you’re a couple with plans to take out a reverse mortgage — and it really ought to be a last resort, only for those who can’t make ends meet any other way — both of you ought to be on the reverse mortgage so you don’t end up in this predicament. Always talk to at least 2 counselors from 2 different organizations, 1 preferably an elder law attorney with reverse mortgage experience.

How Do Property Tax Rates Work?

2011-04-30T18:18:00.000-07:00

Tax time has come and gone...but some of you may be expecting your property tax bill for the first half of 2011. If that’s the case, then you’ll probably be wondering just how the government calculates property tax rates and why your bill seems to change every year. Well, here’s an answer to your question.

First, there is a difference between property tax rates and a property tax assessment. The rate is an overall percentage at which your property is taxed. The assessment is a valuation of your property’s worth, so that the government can determine how much money it is taxing.

States have different rules for conducting a property tax assessment, but the goal is to get an accurate value for the taxable property. This is usually determined by the replacement cost of structures and property, or the market value of the property calculated via comparison to similar properties.

Keep in mind that reassessment happens every few years, directly impacting property tax rates.
Once a property tax assessment has been conducted for an entire region, the local taxing entity then determines property tax rates.

Tax rates are determined in one of two ways, but are subject to percentage caps imposed by the law.
The taxing authority can choose to divide its yearly projected expenditures by the assessed value of all property in the region, assigning a portion to each property. It may also choose to estimate its budgetary needs based on different tax rates until it finds a reasonable rate.

Though no one enjoys fluctuating property tax rates—or taxes in general—they serve an important function. Taxes pay for local services, such as police and the fire department, as well as maintenance of infrastructure. They also pay for schools.

So complain all you want, but please pay your property tax bill.

Make Tracks to Eco-Carmel for Products with a Healthy Footprint

2011-04-12T19:40:00.000-07:00

This year I launched a newsletter designed to give people a look at Carmel life from a local's point of view. With Earth Day fast approaching...it's April 22nd...I wanted to take a moment to introduce you a local shop that is focused on global success.

Nestled among the shops in Stonehouse Terrace, Eco Carmel offers its customers an array of environmentally friendly and socially responsible products.

Owner Kristi Reimers opened the store in August, in a property her family has owned since the 1930s. Among the items shoppers will find in her store include paint, hardware, fixtures, home and garden materials, and baby products.

Eco Carmel carries Fire & Light Originals, which produces glassware from recyclables. The Arcata, Calif., based business has taken recycling to a high art form, and offers a stunning array of dinnerware, drinkware and decorative bowls and vases.

Another product, the People Towel, are 100-percent organic cotton hand towels for use on the go, whenever a paper towel would be used, like a public restroom. The towels come in an array of designs and colors on an ecological theme.

The Kill A Watt plugs into any outlet to gauge how much it costs to run any electric appliance, even when not in use. The easy-to-read LCD screen displays electricity costs by week, month, and year.
Eco Carmel also raises money for Save Our Shores, the Carmel River Conservancy and StepUp2Green by not using a bag. The store charges 25 cents for recycled paper bags to encourage shoppers to bring their own reusable bags. Reimers helped sponsor a screening for the documentary “Bag It” this past November at the State Theatre in Monterey; it tells the story of a man who stops using plastic bags at all cost, and how their prevalence impacts the environment.

Eco Carmel is located in Stonehouse Terrace, San Carlos Street between 7th and 8th Avenue
Hours: 10 a.m. to 6 p.m. | (831) 624-1222 | www.ecocarmel.com

Recasting -- A New Way to Cut A Mortgage

2011-04-05T20:22:00.000-07:00

Whether you have a jumbo loan or a conforming loan, you might be able to use a little known strategy called recasting to lower your payments for a small fee. Recasting or re-amortizing allows a borrower to lower their monthly payment on an existing fixed rate loan without having to apply for a new loan and without having to pay a reappraisal fee. Here’s how it works.

Recast in this context, is a fancy way of saying recalculate. An even more fancy way of saying recalculate is to say re-amortize. No matter how you say it, they all mean the same thing.

When a mortgage is recast, the lender works out a new amortization schedule, usually with the same interest rate, after the borrower has made a large payment on the loan to pay down the principal balance. Typically, this type of recasting can only occur once during the life of a loan.

Though it is possible for recasting to occur after someone comes into a large sum of money and pays down their home mortgage, it most frequently occurs when a borrower is in financial distress and needs to refinance to lower monthly payments. It works almost exactly like refinancing wherein the lender pays off the previous mortgage and re-issues a new loan for a lower amount, but there is a twist.

The amount of the new loan is lower because the borrower must take a portion of the equity he got out of refinancing and put it towards the loan instead of a boat or remodeling or college tuition, making a significant payment of principal. So, the payments drop because there is a reduction in the principal amount owed, but they also drop because the amortization schedule has been lengthened to allow more time to pay the principal. If a mortgage is recast instead of refinanced, there are no closing costs and fees, usually just a small flat fee.

The bad news? Banks don't advertise the strategy, perhaps because it is less lucrative than refinancing a mortgage. And not all loans are eligible. To find out more, you will have to ask your lender directly. Of course, always check with your financial advisor for direction on what works best for you.

25440 VIA CICINDELA , Carmel Valley MLS #: 81109561 $1,895,000 Beds: 4 Baths: 3 (2/1)
Dramatic Carmel Valley and Santa Lucia mountain views from this beautifully remodeled Tierra Grande masterpiece. Completely remodeled - Viking, LG, granite, marble, 4 fireplaces, custom finishes and extensive Carmel stone work. New carpets in family room and upstairs bedroom. Large sunny south-facing patio and deck. 3 car garage SqFt: 4,594 Lot Size: 43,560 Sqft Come see me Sat and Sun 2-4!

26225 ATHERTON PLACE, Carmel MLS #: 81029734 $998,000 Beds: 4 Baths: 4 (4/0)
1970's ranch style home needs updating. Large Lot with lots of water and water credits. Good rental history with three units. Distant ocean view. Great place for the right person. SqFt: 3,013 Lot Size: .92 Acres

4 YANKEE POINT DRIVE, Carmel Highlands MLS #: 81051778 $849,000 Beds: 3 Baths: 2 (2/0)
Best value in Carmel Highlands. Yankee Point Home under $1.0M! Views of the ocean, key to beach, many fresh details, best of appliances, fruit trees in a large side yard, very private, nestled among the trees. Decks with plenty of outdoor area to entertain. Home shows pride of ownership in all respects. Everything is in wonderful move-in condition. Regular sale. SqFt: 1,808 Lot Size: 19,084 Sqft

14 SKYLINE CREST, Monterey MLS #: 81021350 $450,000 Beds: 3 Baths: 2 (2/0)
Major price reduction! Attractive condo in sought after Skyline Crest complex Monterey. Preferred location backs up to the Pebble Beach forest. Enjoy the city lights and forest views from this well maintained, little used vacation home! Coveted Skyline Crest is centrally located in Skyline Forest and is close to everything the Monterey Peninsula has to offer. SqFt: 2,040 Lot Size: 1,836 Sqft

Busting the Green Building Myths - Part 2

2011-03-24T18:13:00.000-07:00

Continuing to review the myths that are associated with "building green"
Myth #5: You need solar panels to be truly green.
Solar panels were once the universal symbol for green building. But the reality is that sustainable building means integrating a variety of energy efficient solutions that work together -- from heating systems to interior finishes.

When building green, focus on the house as a whole, not just particular green features like solar panels. Everyone working on the home, from the architect to the HVAC specialist to the electrician, should be involved in the green strategy. After all, will you be getting the most out of your solar hot water collectors and panels if you have leaky windows and poor insulation?

Myth #6: Low-flow toilets don't work well.
After the federal government limited toilets to 1.6 gallons of water per flush, early models of the low-flow toilet were a flop. Times have changed, and homeowners have more options. Today's redesigned low-flow models work as well or better than older water-guzzling models. High-efficiency toilets use even less water than standard low-flow models, some as little as 1.1 gallons. Dual-flush toilets, which have separate flush modes for solid and liquid waste, are another water-saving option.

Myth #7: McMansions can be green.

Whether or not a big house is green depends on how the building's materials and resources are being allocated. For instance, a 10,000-square-foot house built for a family of four can't be considered green, no matter how many sustainable features it has. But it would be green if 20 people lived in that same house. Lowering consumption is an important benchmark in sustainable building, and that thinking extends to the materials that go into a house as well as the energy that's required to heat and cool it.

Myth #8: "Green" is just a passing fad.
From kitchen cabinets to skylights to siding, consumers are looking for eco-friendly features for their homes, often paying premium prices for the extra value. High energy costs, limited natural resources, awareness of global climate change, better understanding of building science and growing health concerns are all contributing to a lasting green movement.

The fact is that sustainable houses last longer, have fewer problems, are cheaper to live in and keep people healthier and happier. And who doesn't want that to last forever.

My Current Picks:
7422 ALTURAS COURT, Salinas Monterey Highway MLS #: 81110755 $3,995,000 Beds: 4 Baths: 6 (4/2) SELLER FINANCING! Stunning & one-of-a-kind behind the gates at Monterra Ranch, this custom home is a work of living art: picture windows in every room show off glorious views; French limestone floors; gourmet chef's kitchen; incredible master suite w/ views, fireplace & inspiring spa-like bathroom. Library, wine Cellar, rec Room & sprawling patios top off this elegant estate. Understated elegance! SqFt: 6,266 Lot Size: 3.17 Acres

234 DEL MESA CARMEL , Carmel Valley MLS #: 81110005 $595,000 Beds: 2 Baths: 2 (2/0Great location, light & bright! Attractive Del Mesa "C" model condo, 2 bed, 2 bath w/den & separate dining room, 1,600 sq. ft. Nicely remodeled in '06 - Jenn Air, Bosch, Corian, marble fireplace, carpet, tile and paint. Expanded dining room and guest bedroom. Inside washer/dryer hookups and attic access. Very close to club house, pool and parking. Prestigious 55+, gated, active adult community. SqFt: 1,600 Lot Size: 1,646 Sqft

121 REAMS COURT, Marina MLS #: 81110015 $375,000 Beds: 3 Baths: 2 (2/0)

Super clean & spacious move in ready home in north Marina- close to shopping, bike trails & the beach. Single level & newly renovated with new flooring, appliances, light fixtures & granite counter tops. Dual pane windows throughout, large 2 car garage, beautifully landscaped backyard with patio and arbor. Large bedrooms, formal dining room, light filled rooms, family room has fireplace. SqFt: 1,594 Lot Size: 6,137 Sqft

5 PRIMROSE CIRCLE, Seaside #: 81110587 $350,000 Beds: 3 Baths: 2 (2/0) Seaside charmer located on quiet circle. Immaculate home, truly shows pride of ownership. Clean, bright & cheery. Wonderful deck outside for entertaining, with a low maintenance yard. This is a great starter home, turn key!! SqFt: 1,142 Lot Size: 4,907 Sqft

Busting the Green Building Myths, Part 1

2011-03-12T14:42:00.000-08:00

Myth #1: Green homes cost more than other homes.

Sustainable building often requires more expensive building materials, smarter technology and complicated systems than conventional building. But when thinking long-term, green building actually saves money because the materials won't have to be replaced as often. So while initial costs may seem like a lot, green building offers better value when you consider the life-cycle costs.
For instance, upgrading to energy efficient windows might cost more up front, but the reduced load on your heating and air conditioning system will help offset that cost over time.

Myth #2: Green homes look weird.
In the early days of green building, builders focused on features that touted self-sufficiency and lower costs, which often detracted from a home's design or architecture. These days, green homes don't have to look strange unless you want them to. Virtually any home, regardless of home style, can have sustainable features. Solar shingles, for instance, can be incorporated directly into the building's structure so they're virtually invisible.

Myth #3: You can't make an existing home green.
Altering your home's structure and operating systems -- foundation, framing, wiring, plumbing -- can be very expensive. But "greening" an existing home doesn't have to be a complete overhaul.
Upgrading windows and HVAC (heating, ventilation and A/C) equipment, putting more insulation into the walls or attic, sealing air leaks, and installing energy-recovery ventilation equipment are all examples of upgrades that will make a house more energy efficient.

Myth #4: Green houses can be too insulated or too tight.
Some traditionalists argue that houses need to breathe, and they caution against "too much insulation" and "building too tight." But in reality, these are the least of our concerns.
Most homes have uncontrolled air movement that wastes energy and increases the risk of long-term damage to building components. This can be alleviated by identifying and sealing air leaks and adding insulation. To offset this tightness, homes need mechanical ventilation to ensure that a supply of fresh air is circulated.

More myths next week but now let’s take a look at some homes for sale some of which have green features and some, not so much, yet.

25440 VIA CICINDELA , Carmel Valley MLS #: 81109561 $1,895,000 Beds: 4 Baths: 3 (2/1)
Views! Views! Dramatic Carmel Valley and Santa Lucia mountain views from this beautifully remodeled Tierra Grande masterpiece. Remodeled from the ground up - Viking, granite, marble, 4 fireplaces, custom finishes and extensive stonework. Large sunny south-facing patio and deck. SqFt: 4,594 Lot Size: 43,560 Sqft Open house Sat 1-3

26225 ATHERTON PLACE, Carmel MLS #: 81029734 $998,000 Beds: 4 Baths: 4 (4/0)
Big Price reduction. 1970's ranch style home needs updating. Large lot with lots of water and water credits. Good rental history with 3 units. Distant ocean view. Great place for the right person. SqFt: 3,013 Lot Size: .92 Acres

661 MADISON STREET, Monterey MLS #: 81107062 $719,000 Beds: 3 Baths: 3 (2/1)
Spacious original home built by contractor owner. Big rooms, hardwood floors under carpet, fireplace. Upper level has 2 beds, 1 1/2 baths, sun room, formal dining. Downstairs is legal 1/1 plus 2 finished storage rooms. New paint in and out. HUGE workshop with 2 car garage. Easy walk to town. Mountain, airport views. SqFt: 2,000 Lot Size: 5,200 Sqft

810 SPRUCE AVENUE, Pacific Grove MLS #: 81046315 $525,000 Sale Price: Beds: 3 Baths: 2 (2/0)
Looks like a model home. Close to town on a corner lot w/fenced yard. , remodeled from the ground up. A perfect starter or retirement home. If you are looking for charm and trouble free, check this beauty out. SqFt: 945 Lot Size: 2,700 Sqft

Banks push home buyers to put down more cash

2011-03-03T21:52:00.000-08:00

Many economists and housing analysts blame lax lending standards – including no-down payment, no-document loans – for contributing to the challenges in the current real estate cycle. As a result, most lending institutions have increased minimum down payment requirements.

Now, a new proposal by the Obama administration calls for gradually raising down payments to a minimum of 10 percent on conventional loans – those that can be bought or guaranteed by Fannie Mae and Freddie Mac.

Banks have found that larger down payments discourage delinquencies by increasing the buyers’ exposure to loss and reducing the impact of declining prices. According to a study by the Federal Reserve Bank of St. Louis, buyers who made smaller down payments were more likely to default during unfavorable economic circumstances, such as a housing market slowdown or job loss.
A recent analysis showed the median down payment in nine major U.S. cities rose to 22 percent last year on properties purchased with conventional mortgages. That percentage doubled in three years and represents the highest median down payment since the data were first tracked in 1997.
Higher borrowing costs and larger down payments could cause housing prices to decline further. For now, borrowers who can’t afford such amounts are turning to alternative programs, such as loans for veterans or those backed by the Federal Housing Administration. Some industry experts say this has created a nonconventional mortgage market for riskier borrowers and those who don’t qualify for conventional loans.

I just heard this week about a company looking to take advantage of this situation. It’s called Lenderline who claim to be offering “no income documentation loans”. I say be wary, but if you want more info you can call me at 831-236-4513.

0 LOPEZ AVENUE, Carmel MLS #: 81107296 $1,685,000 Beds: 4 Baths: 3 (3/0)  LEASE OPTION POSSIBLE. Lovely ocean views from the living room of this home on popular Lopez St. Large floor to ceiling windows let the sunlight in all day. It is just a short walk to the beach or downtown Carmel. This home has plenty of room for the family to visit and is perfect for enjoying the Carmel lifestyle and entertaining friends! SqFt: 2,000 Lot Size: 4,000 Sqft I’ll be there this Sat and Sun 12:00-2:00

1089 HARRISON STREET, Monterey MLS #: 81106904 $749,000 Beds: 3 Baths: 3 (2/1)  Gorgeous, turnkey home in Old Monterey. Set on a hill to provide privacy from neighbors sits this completely remodeled home w/ Bamboo flooring & gourmet kitchen w/limestone counters & stainless appliances. The master suite is huge w/ tree top views & tons of windows for light. The tiered back yard has great patio, lush gardens & secluded hot tub. Not a thing needs to be done, truly move-in ready! SqFt: 2,026 Lot Size: 5,100 Sqft

4513 SEA CLIFF COURT, Seaside Highlands MLS #: 81106561 $649,000 Beds: 4 Baths: 3 (2/1)  Not a REO or Short Sale - ready to sell NOW! Beautifully upgraded home in Sunny Seaside Highlands. Kitchen has upgraded cabinets, tile floors, granite countertops & stainless steel appliances. Newly painted interior. Level and fully fenced backyard backs up to lovely greenbelt. SqFt: 2,593 Lot Size: 4,789 Sqft

120 NORTH 1ST, Spreckels MLS #: 81106206 $525,000 Beds: 3 Baths: 3 (3/0)  Gorgeous Craftsman-3 years old- many thousands in upgrades ! Built-in study. The kitchen, with its large island, granite counters and stainless appliances, is really beautiful! The baths are elegant. There are hardwood floors, built-in cabinetry, French doors, upgraded floor coverings! Everything is done and ready for you! SqFt: 2,170 Lot Size: 6,000 Sqft

© Patty Ross, KRXA Radio Show #195 February 25, 2011

Most Asked Question About Real Estate – How’s the market?

2011-02-03T17:52:00.000-08:00

We all know that real estate is a local phenomenon. One area can be doing great and another not so great, even only blocks apart.

Here are a few statistics, very telling in terms of whether the market has picked up or not by area here on the peninsula over the last 12 months:

Homes sold avg price sold homes under contract

Carmel up 42% down 9% up 38%

Pebble Beach up 17% down 7% up 2%

Carmel Valley up 79% down 7% up 73%

Monterey up 18% down 2% down 1%

Pacific Grove up 41% up 1% up 40%

We can see by the numbers that asking how the market is around here or anywhere for that matter is a difficult question to answer. I’d be happy to send anyone out there these stats. Just call 831-236-4513 or shoot me an email at pattyross@kw.com.

When will housing come back in California? Five experts offer their views

2011-01-25T08:00:00.000-08:00

They are the questions on everyone's mind... Has the real estate market hit bottom? Is the real estate market going to get better? Worse? Stay the same? Is now the right time to buy? Sell? Wait?

So, when will housing come back in California? Five experts weigh in on the subject.

Although the steep decline of home prices in California ended in spring 2009, the weakness in the housing market after the expiration of federal tax credits for home buyers last year has led to some speculation as to whether the recovery is sustainable.

Five experts, including Leslie Appleton-Young, the chief economist for the California Association of Realtors were asked to provide their view on the state of real estate and what they think is needed to get the housing market moving again. 

In terms of home prices, the experts differed slightly with the majority predicting that home prices will remain flat throughout 2011. Ms. Appleton-Young predicts home prices will rise 2 percent this year, while a foreclosure expert predicts housing prices to decline 5 percent in 2011.
According to Appleton-Young, there is little chance of home prices returning to their previous peak levels anytime soon. She said, “We are in a slow-moving recovery with prices stabilized at the moderate and low end. We are still seeing price attrition and price softening at the upper ends of the market.” I can attest to that.
California’s recovery will hinge on location, according to Richard Green, director of the USC Lusk Center for Real Estate. Areas between El Centro and Sacramento likely will not see a return to peak prices for a long time. However, places like La Jolla, Laguna, Huntington Beach, Atherton, Palo Alto, the city of San Francisco, and Marin County could experience a return to their peak prices within the next five years, according to Mr. Green. I would add Carmel, Monterey, Pacific Grove and Pebble Beach to that list as well.
Foreclosure expert Bruce Norris of the Norris Group believes the market is being artificially boosted by government programs and is set to fall further this year. Mr. Norris believes the demand for housing is most-needed for a sustainable recovery.
California’s coastal markets will make a return once the job market improves, according to Emile Haddad, chief executive at FivePoint Communities Inc. In turn, that will lift consumer confidence. However, California’s inland areas are more likely to lag behind, and builders will have to reconsider the kind of product they offer in certain places.

With that market info in mind, let’s take a look at some product we have around these parts, all looking good in terms of price.

18773 CACHAGUA RD. Carmel Valley – not on MLS yet- $2,995,000
This is a secure fenced communication satellite site. Extraordinary opportunity to own a piece of history. The Jamesburg Earth Station received the first images from the moon in 1969 and was a fully functional communications station operated by AT&T until 2002. The antenna, the accompanying 10,000 square foot secure structure and heliport are on a 103 acre parcel located in Carmel Valley approximately 25 miles from Carmel by the Sea and the Monterey Peninsula. The adjoining two parcels which consist of 46 acres of vacant land and 12 acres with a 3 bed 1 bath home plus a barn may be purchased with the Earth Station site. 160 acres total There’s an online registration to view the property 1 time only on 2/26/11. You'll need to call me for the details on this one!

3265 MARTIN ROAD, Carmel MLS #: 81038995 $1,199,000 Beds: 3 Baths: 2.5  Price just reduced $100K Fully remodeled 50's contemporary quality home, top of the line appliances, directly borders Carmel Mission Trail Preserve with expanse of open land. On quiet cul de sac with views of Pt. Lobos. Large lot almost half acre with plenty of privacy. Move in condition with hardwood floors & two cozy fireplaces. Bonus is plenty of outside decks with views. SqFt: 1,488 Lot Size: 21,000 Sqft

517 12TH STREET, Pacific Grove MLS #: 80954886 $723,500 Beds: 4 Baths: 2  This charming Victorian home is an historic landmark in PG. It has been extensively remodeled yet still maintains the original feel of the home with 100 year old virgin redwood floors, a quaint parlor and a wonderful upstairs porch with views of the ocean. Historic Preservation Award Winner! Short Sale, lender approved. SqFt: 2,238 Lot Size: 4,300 Sqft

1313 ADAMS STREET, North Salinas MLS #: 81101895 $185,000 Beds: 3 Baths: 2  This is a Probate Sale. Ready to Go! Nice size backyard with lots of potential. Would make great home or investment property SqFt: 1,470 Lot Size: 7,000 Sqft

© Patty Ross, KRXA Radio Show #191 January 21, 2011

Fannie Mae Launches “WaysHome” Interactive Video Tool to Help Struggling Homeowners

2011-01-18T08:00:00.000-08:00

I found this news fascinating as an ex drama school teacher. Fannie Mae recently launched WaysHome, a free, interactive multi-media tool designed to educate homeowners about their options to avoid foreclosure, empower them to make informed decisions and motivate them to take action and seek help in 2011.

As part of Fannie Mae’s “Know Your Options” initiative to help struggling homeowners, the WaysHome video uses innovative technology to allow homeowners to put themselves in real-life situations, make informed choices and immediately see the outcomes of those actions.

Unique to the other industry-wide foreclosure prevention efforts, WaysHome was developed by Fannie Mae to educate distressed homeowners on the short- and long-term impact of their decisions. Through video reenactment, WaysHome allows homeowners to experience scenarios that address a range of options for avoiding foreclosure that include repayment plans, forbearances, modifications, deeds-in-lieu, and short sales.

Here’s how it works. The video is set in a neighborhood that has been hurt by the foreclosure crisis. Real actors play three residents of the neighborhood—each in financial distress. Homeowners select to play one of the residents and, as their stories unfold, make important financial decisions for them and see how the consequences of these decisions play out. Fannie Mae provides helpful tips, tools and links during the process and users have the ability to go back and revise their decisions should their choices lead to a negative outcome. Most choices lead to an immediate consequence followed by a related teaching point. Go to www.KnowYourOptions.com and check it out.

Market Highlights from Friday, Jan 14th's radio show included:
1410 MANOR ROAD, Monterey MLS #: 81056834 $1,525,000
Beds: 3 Baths: 4 (3/1)  Walking into this primarily single story home, you notice the luxurious amenities through out. The incredible gourmet kitchen opens to the dining & family room surrounded by huge picture windows that show a big, private backyard w/outdoor kitchen. The master suite boasts private patio, 2 large walk-in closets & spa-like bath. Upstairs is a full apartment w/kitchen & separate entrance. 5 car garage is a great perk!   SqFt: 3,255 Lot Size: 77,305 Sqft

833 QUAIL RIDGE LANE, Salinas Monterey Highway MLS #: 80782197 $1,575,000
Beds: 5 Baths: 4 (3/1)  Stunning valley views surround this Southwestern estate on 2.5 acres. Completely remodeled from top to bottom, this private home has 4 bedrooms in the main house + an apartment w/separate entrance. The chef's kitchen not only boasts granite & stainless steel appliances but also 3 huge, panoramic windows full of gorgeous views... not a bad way to cook dinner! Every detail has been considered & included. Horses OK. SqFt: 2,728 Lot Size: 87,120 Sqft (allows 2 horses)

9150 CARMEL VALLEY ROAD, Carmel Valley MLS #: 81101286 $850,000
Beds: 4 Baths: 3 (3/0)  Lovely Tuscan Ranch home with beautiful finishes inside and out, featuring an office, wine room, along with an outdoor fireplace and bocce court. Perfect for entertaining! There is an unfinished addition with plans and permits available...   SqFt: 4,121 Lot Size: 43,740 Sqft

3007 INDEPENDENCE AVENUE, Marina MLS #: 81101499 $419,000
Beds: 3 Baths: 2 (2/0)  Beautifully remodeled in 2010. Located on a quiet cul de sac. Hardwood floors, crown moldings, granite countertops, stainless steel appliances and a cozy wood burning fireplace in the den. Fenced yard with back patio. 2 car garage.   SqFt: 1,374 Lot Size: 7,246 Sqft

© Patty Ross, KRXA Radio Show #190 January 14, 2011

What low home prices and low mortgage rates mean to the Monterey Peninsula real estate market

2011-01-17T22:34:00.000-08:00

Last week, the Wall Street Journal reported mortgage rates had declined to a 4-week low. The article is included in this blog, but what does this information mean to our local real estate market. On the Central Coast, home prices continue to decline in the high end areas of the Monterey Peninsula and inventory is still high. This coupled with the historically low interest rates make this the 'sweet spot' in the real estate purchasing department.

From the Wall Street Journal . . .
Home-mortgage rates declined for a second straight week, according to data released Thursday by Freddie Mac, but the housing market continued to face headwinds from a supply glut and the struggling employment situation.

The average 30-year fixed-rate mortgage fell to 4.71% in the week ended Jan. 13, reaching a four-week low, Freddie Mac said. The rate was 4.77% in the prior week and 5.06% in the prior year, according to Freddie Mac, a buyer of residential mortgages. To obtain the latest rate, the mortgage required payment of an average 0.8 point. A point is 1% of the mortgage amount, charged as prepaid interest.

The 15-year fixed-rate mortgage averaged 4.08% in the latest week, with an average 0.7 point, down from the prior week's 4.13% and the year-ago rate of 4.45%. Low rates could help a still-troubled housing market, which has been hobbled by persistent employment weakness and a large supply of homes.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.72% in the latest week, with an average 0.7 point, down from 3.75% in the prior week and 4.32% last year. Also, one-year Treasury-indexed ARMs averaged 3.23% in the most recent week, with an average 0.6 point, down from 3.24% in the prior week and 4.39% a year ago.

(Source: Mortgage Rates Decline to 4-Week Low by Ruth Mantell, Wall Street Journal Digital Edition, Jan 14th, 2011)

When Borrowers Default on Second Homes

2011-01-10T19:02:00.000-08:00

With the high number of second homes here on the peninsula this topic should be particularly interesting to many. Today we are talking about Strategic defaulting – where the homeowner has the ability to pay the mortgage, but chooses to stop making payments. Among affluent homeowners with second homes and investment properties, this is increasing.

• Homeowners who strategically default are likely to find their credit will be negatively impacted and they should expect to be prevented from getting another mortgage loan for 7 to 10 years.

•    Many homeowners are concerned about the possibility of the lender suing for the amount of money owed on the loan when a house goes into foreclosure. Whether or not the lender has legal justification to do so depends largely on where the property is located.

•    In “recourse” states, a lender can go after the homeowner, and usually other assets like a primary residence, for the full mortgage amount. Examples of recourse states include Maine, New Jersey, and Hawaii.

•    In “nonrecourse” states, a lender agrees to accept whatever the property fetches at a short sale, foreclosure sale, or deed-in-lieu, and generally can’t sue for the full loan amount. Florida, Connecticut, and Arizona are among the nonrecourse states.

•    California is in a third category called “single-action” or “one-action,” which allows the lender either to foreclose on the owner or file a civil lawsuit for the full loan amount. Other single-action states include New York and Idaho.

•    Homeowners should be advised that even in a nonrecourse state, those who opt for a strategic default on a previously refinanced property may not be protected from lenders, because the mortgage is not in accordance with a first purchase.

•    Although California is a single-action state, lenders can still sue homeowners for repayment of a second mortgage or home equity line of credit.

We’re going to look at all condos today as these constitute many of the 2nd homes here on the Peninsula.

15 SPANISH BAY CIRCLE, Pebble Beach MLS #: 81025267 $2,700,000 Beds: 3 Baths: 4 (3/1)
Fabulous...Fabulous... Front line unit ... Golf course, ocean, crashing surf, that is all you see! What a view!! Enjoy the amenities of Spanish Bay from your very own unit. SqFt: 3,567

47 DEL MESA CARMEL , Carmel Valley MLS #: 81054184 $649,000 2 Baths: 2 (2/0)
Views! Views! Dramatic ocean, golf course, Carmel Valley & Santa Lucia mountain views from this nicely updated Del Mesa "B" model condo, 2 bed, 2 bath with den. New kitchen appliances & countertops, carpet, tile, paint & deck plus countertops & sinks in baths. Complete with washer & dryer and attic access. Large sunny south-facing deck. Prestigious 55+, gated, active adult community. SqFt: 1,469

15 OCEAN PINES LANE, Pebble Beach Active MLS #: 81036881 $500,000 Beds: 2 Baths: 2 (2/0)
Views abound from this condo in Ocean Pines. New carpet, paint, wet bar. Patio off living room and master bed with crashing waves below.   SqFt: 1,272

14 SKYLINE CREST, Monterey MLS #: 81021350 $495,000 Beds: 3 Baths: 2 (2/0)
Attractive condo in sought after Skyline Crest complex Monterey. Preferred location backs up to the forest. Enjoy the city lights and forest views from this well maintained home! Coveted Skyline Crest is centrally located in Skyline Forest and is close to everything the Monterey Peninsula has to offer. SqFt: 2,040

(c) Patty Ross, KRXA Radio Show #189 January 7, 2011

California Realtors Offer Mortgage Assistance for Unemployed

2010-12-22T08:00:00.000-08:00

The California Association Of Realtors recently launched a new program that allows home sellers to purchase mortgage protection coverage and offer it as an additional incentive to home buyers who purchase their home. 

The “Home Payment Protection Program” (HPPP) is available through California realtors who offer it to sellers at the time the property is listed. HPPP is optional, is paid for by the seller, and costs either $200 or $275, depending on the amount of coverage the seller elects to purchase.
The program covers both first-time and repeat buyers for 12 months from escrow closing. If the home buyer loses his or her job as a result of a layoff during the qualified time period, HPPP will pay the buyer up to six monthly payments of up to either $1,000 or $1,500, depending upon the level of coverage the seller chose at the time of the listing.
The payment for HPPP is made at the time of closing, per the seller’s escrow instructions. HPPP remains on the property for as long as it is listed with the REALTOR® under the original listing contract. The buyer cannot renew, extend, or enhance the coverage under the HPPP, nor purchase it independently.
Sellers who would like to offer the Home Payment Protection Program should ask for an application from their realtor who can find information about the program and an application at www.cynosurefinancial.com/car.

Let’s take a look at a few Christmas presents you can buy yourselves from the extreme to the affordable. . .

1218 PORTOLA ROAD, Pebble Beach MLS #: 81056618 $3,750,000 Beds: 4 Baths: 5 (3/2)  Gorgeous estate with outstanding OCEAN VIEWS overlooking Cypress Point Golf Course. Completed in 2008, home exemplifies the best of classical features w/ modern conveniences. Open floor plan, cathedral ceilings, Brazilian Cherry floors, radiant heat, slate roof, custom fireplaces, gourmet kitchen, 3 car garage, 2 fully fenced acres, short distance from the Lodge, perfect blend of privacy & convenience. SqFt: 6,000 Lot Size: 91,955 Sqft

1410 MANOR ROAD, Monterey MLS #: 81056834 $1,525,000 Beds: 3 Baths: 4 (3/1)  Walking into this primarily single story home, you notice the luxurious amenities throughout. The incredible gourmet kitchen opens to the dining & family room surrounded by huge picture windows that show a big, private backyard w/outdoor kitchen. The master suite boasts private patio, 2 large walk-in closets & spa-like bath. Upstairs is a full apartment w/KIT & separate entrance. 5 car garage is great perk! SqFt: 3,255 Lot Size: 77,305 Sqft

501 TOYON DRIVE, Monterey MLS #: 81057556 $530,000 Beds: 3 Baths: 2 (2/0)  Attractive Toyon Heights home. Large deck in back overlooks the canyon. Freshly painted & carpeted--just move in. Hardwood floors under carpeting. SqFt: 1,250 Lot Size: 17,226 Sqft

46 LOS ENCINOS DRIVE, Del Rey Oaks MLS #: 81056342: $449,000 Beds: 3 Baths: 2 (2/0)  Beautiful home with hardwood floors throughout main areas and custom tile in kitchen. Large "eat in" kitchen, inside utility room, newer double pane windows except kitchen. French door, newer roof, newer furnace and dishwasher, lots of skylights, and a huge rear yard. Beautiful views from living room. Fireplace. Home is in lovely condition! "tree house" in rear yard. SqFt: 1,241 Lot Size: 14,500 Sqft

300 GLENWOOD CIRCLE,#302, Monterey MLS #: 81056346 $200,000 Beds: 1 Baths: 1 (1/0)  Top of the line one bedroom condo. Granite counters, hardwood floors, stainless steel appliances. Largest one bedroom floorplan. SqFt: 760

© Patty Ross, KRXA Radio Show #187 December 17, 2010

Sellers Not Liable to First Lien Holders After a Short Sale

2010-12-16T16:14:00.000-08:00

We all know that a short sale is when the bank forgives the difference between what the seller owes and what they sell the house for. A new law, SB 931 which goes into effect January 1, 2011, provides that lenders who approve a short sale on a residential (1-4 unit) property where they are the primary lien holder, have no right to pursue the borrower/seller for any deficiency or loss as a result of consenting to and accepting the short payoff.

This is huge, as up to now there has been the unanswered question, can the bank come after us for the difference between what we owed and what they made from the sale.

Some details:

1. The consent of the first deed of trust holder to a short payoff obligates that holder to accept the short sale proceeds as full payment, and to fully discharge the remaining amount of the indebtedness on the note secured by at deed of trust.

2. This new law applies to ALL first deed of trust holders, whether purchase money, refinance, investor, etc.
3. The law does not apply if the borrower/seller is a corporation or political subdivision of the state.

4. This law does not apply to any junior lien holders; e.g., second or third lien holders.

Effective Date:
While the law itself goes into effect on January 1, 2011, it does not specify what happens as of that date. Is it new contracts ratified after that date? Is it contracts that close after that date?   etc.
While not clear, it is LIKELY, but not a certainty, that this law applies to written consents received by short sellers from lenders after that date. However, in every case you MUST consult your own attorney on this point.

We’re going to take a look at all short sales today, all good values, so listen up…

91 CORONA ROAD, Carmel Highlands MLS #: 81006931 $1,400,000 Beds: 3 Baths: 3 (3/0)
$400,000 price reduction! Park-like setting and early California Architecture, this Highlands home has it all. High end kitchen, lush mature gardens, plenty of privacy and recent complete remodel. Turn key potential. SqFt: 2,900 Lot Size: 40,510 Sqft    check out photos on site www.pattyrosscarmel.com   | short sale

24309 SAN PEDRO LANE, Carmel MLS #: 81029730 $775,000 Beds: 2 Baths: 2 (2/0)
Comfortable Carmel Cottage in Carmel woods. Upgraded master bedroom suite, plus separate entrance home office. Large lot next to Pescadero Canyon greenbelt for added privacy. Granite kitchen counter tops. Located on top of Carmel Woods surrounded by decks and nature. SqFt: 1,600 Lot Size: 7,000 Sqft    | short sale

779 ALICE STREET, Monterey MLS #: 81051072 $479,000 Beds: 3 Baths: 2 (2/0)
Top-of-the-hill New Monterey home; spacious reverse floor plan w/vaulted ceilings & lots of light upstairs w/open family room-kitchen w/balcony for bbq; master upstairs, 2 beds, 1 bath & laundry on first floor; level lot is ideal for low-maintenance gardening w/private deck in back yard; quiet street is perfect walk to DLI; quick trip to downtown PG, Cannery Row, Monterey Bay and Aquarium! SqFt: 1,438 Lot Size: 2,500 Sqft |    short sale

1663 LAGUNA STREET, Seaside #: 81055524 $400,000 Beds: 4 Baths: 2 (2/0)
Bank has extended time to submit offers until 1/2011 & receive bank approval for short sale of $400K Unbelievable views, ocean, mountain & city lights! Spacious & open floor plan, great for entertaining around the fireplace in living room under the soaring ceilings or step out on to the deck & enjoy the views! Reports available for your review. SqFt: 2,147 Lot Size: 3,750 Sqft | short sale

© Patty Ross, KRXA Radio Show #186, December 10, 2010

The Real "Price" of a “No-Cost” Loan

2010-11-14T18:57:00.000-08:00

Just a quick mention about my previous post about the show...Last week we talked about the “Keep Your Home California” program. One of the logistical complications that has caused the delay is the fact that Fannie Mae and Freddie Mac last week instructed their loan servicers to participate in the program, dramatically increasing the number of potentially eligible homeowners. Will keep you posted on that. . .

This week, we look at the real costs associated with a "no-cost" loan

Some homebuyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate.

However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.

Making sense of the story
    •    One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.

    •    With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement.

    •    Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.

    •    Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan. The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.

574 WATSON STREET, Monterey MLS #: 81015217 $1,995,000 Beds: 5 Baths: 4 (3/1)  One of the most unique & beautiful homes in Monterey. This Craftsman Cape Cod style home has been completely remodeled. Spectacular views of Monterey Bay, mountains, and city lights from the master bedroom and viewing room. The home's luxurious interior is spacious and the workmanship is something to marvel at. SqFt: 4,900 Lot Size: 34,557 Sqft

384 CORRAL DE TIERRA , Salinas Monterey Highway #: 80828203 $1,530,000 Beds: 1 Baths: 1 (1/0)  Seller Financing or partial Property Trade for navigable waterfront property! 16 yr old guest house on gated 10acre parcel. Can be purchased separately or with adjoining three 10 acre parcels for a fabulous 40 retreat/estate!! SqFt: 1,488 Lot Size: 10 Acres

4041 EL BOSQUE DRIVE, Pebble Beach MLS #: 80941855 $1,495,000 Beds: 3 Baths: 3 (3/0)  This single story, unfinished Mediterranean Style home, offers an open & spacious floor plan high ceilings & beautiful , custom windows. Extra wide front entrance Door. Living room, casual dining rooms & family room with fireplace, a spectacular gourmet kitchen. Plan has radiant floor heating with tiles/granite. Great value in PB, owner will complete the home at this price SqFt: 3,300 Lot Size: 12,870 Sqft

0 SW CORNER OF MONTE VERDE AND 12Th STREET, Carmel MLS#: 81050665 $1,150,000 Beds: 2 Baths2 (2/0)  Here's the perfect Carmel getaway. All freshly painted and updated and all new granite kitchen. Located on a corner lot in the Golden Rectangle. SqFt: 1,342 Lot Size: 4,000 Sqft Come see me this weekend Sat 2-4 & Sun 1-4.

461 DELA VINA AVENUE,#205, Monterey MLS #: 81052880 $189,000 Beds: 2 Baths: 1 (1/0)  Conveniently located in Monterey, close to shopping and restaurants, this condo has so much to offer! Large closets, sky lights to let in natural light, in-unit laundry, surplus of storage and covered parking. The large patio is a great place to enjoy the peace and quiet this complex offers & the kitchen/dining/family/great room is large, inviting and oh so cozy! SqFt: 970 Lot Size: 921 Sqft

Keeping Your Home in Challenging Times

2010-11-09T10:00:00.000-08:00

The U.S. Treasury Department has approved CalHFA's plan to use nearly $700 million in federal funding to help California families struggling to pay their mortgages.

Keepyourhomecalifornia.com

The Keep Your Home programs are focused on assisting low and moderate income families stay in their homes, when possible, and leveraging additional contributions from lenders and mortgage servicers.
Primary objectives for the Keep Your Home Programs include:

Preserving homeownership for low and moderate income homeowners in California by reducing the number of delinquencies and preventing avoidable foreclosures
Assisting in the stabilization of California communities

Each of the Keep Your Home programs is designed to address one or more aspects of the current housing crisis by doing the following:

Helping low and moderate income homeowners retain their homes if they either have suffered a financial hardship such as unemployment, have experienced a change in household circumstance such as death, illness or disability, or are subject to a recent or upcoming increase in their monthly mortgage payment and are at risk of default because of this economic hardship when coupled with a severe decline in their home's value.
Creating a simple, effective way to get federal funds to assist low and moderate income homeowners who meet one or all of the objective criteria described above. Speed of delivery will be balanced with fulfillment of the specific program's mission and purpose.
Creating programs that have an immediate, direct economic and social impact on low and moderate income homeowners and their neighborhoods.

The program was due to begin Nov. 1^st but has been delayed several weeks due to logistical issues – more on that next week..

MY TOP PICKS FOR THE MONTEREY PENINSULA REAL ESTATE MARKET:

4 YANKEE POINT DRIVE, Carmel Highlands MLS #: 81051778 $949,000 Beds: 3 Baths: 2 (2/0)
Yankee Point Home under $1.0M! Views of the ocean, key to beach, many fresh details, best of appliances, Fruit trees large side yard, very private nestled among the trees. Decks with plenty of outdoor area to entertain. Home shows pride of ownership in all respects. Everything is in wonderful move-in condition. Regular sale. Estate sale everyone is motivated. SqFt: 1,808 Lot Size: 19,084 Sqft

4235 CANADA LANE, Carmel 93923 MLS #: 81021878 $629,000 Beds: 3 Baths: 3 (2/1)
MOVE-IN READY SPACIOUS HOME ON A QUIET CUL-DE-SAC IN AWARD-WINNING CARMEL SCHOOL DISTRICT. NEW CARPETING & INTERIOR PAINT THROUGHOUT, NEW STAINLESS STEEL APPLIANCES, VAULTED CEILINGS, LIGHT, BRIGHT & SPACIOUS 3 BEDROOMS, MASTER BATH HAS SEP TUB & SHOWER, DUAL SINKS, ALL BEDROOMS OPEN ONTO DECKS TO TAKE IN THE FORESTED VIEWS. LARGE 2 CAR GARAGE + CIRCULAR DRIVE. SqFt: 1,880 Lot Size: 17,859 Sqft

38350 LAUREL SPRINGS ROAD, Carmel Valley MLS #: 81027147 $595,000 Beds: 1 Baths: 1 (1/0)
The Magic Kingdom - 40 acres of complete privacy, mature oaks & madrones, open meadows. Wonderful mountain views, well-built cabin in like-new condition. Energy self-sufficient property. Gently rolling meadow - ideal for construction of new home, horse barn, and paddocks. Locked security gate, video camera system on property. Located about 50 minutes' drive from Carmel. Live close to nature. SqFt: 840 Lot Size: 1,743,358 Sqft

1077 AMADOR AVENUE, Seaside MLS #: 81028692 $198,888 Beds: 2 Baths: 1 (1/0)
Bay views from front yard. Sale to be "As Is"--major fixer upper subject to short sale approval. SqFt: 864 Lot Size: 5,000 Sqft

Breathe Easier: 5 Tips to Banish Mold from the Home

2010-11-02T15:24:00.000-07:00

I hesitated talking about this issue (not uplifting) until I found actual mold under the floor in the bathroom of my very own house this week! I live in a 1932 cottage in Carmel. Living on a peninsula opens us up to a bit more of this issue than in dryer areas. Often, our first encounter with mold at home occurs in that infamous spot between the shower curtain and tub. It’s pretty disgusting, but it’s easy to wipe up. Unfortunately, in most homes, this isn’t the extent of the mold—the more problematic mold is the insidious kind, hiding behind walls and in floorboards, and potentially contributing to a range of allergies and other illnesses.

What causes mold? Surprisingly, advanced building materials are one of the main culprits. An aging home is at even greater risk, as normal occurrences like window and roof leaks bring in even more moisture—and moisture is a direct cause of mold. Limited ventilation or sunlight only makes the problem worse.

How do you find the mold in your home? Sometimes it’s easy—it may be right in front of you, or you’ll find it by its distinctly musty smell. Though it’s harder to find hidden mold, you can do so by looking behind and beneath fixed materials and appliances: refrigerators, dishwashers, sink cabinets, washer/dryers, carpets, vinyl flooring—anywhere near where water flows or where air doesn’t penetrate readily. Also, look for signs of discoloration on walls and ceilings; this can denote a moisture buildup behind which mold may lurk.

Once you find the mold, remove it with a store-bought anti-fungal solution, or get rid of it with a weak bleach solution—1 cup bleach in 1 gallon of water. But even more important than removing it is eliminating as many of its causes and sources as possible.

Follow these 5 tips to drastically reduce the mold in your home:

1. Call in a home inspection professional to assess water-damaged areas.

2. Keep humidity low. Humidity levels should be under 40% in order for mold to stop its forward march.

3. Replace any carpets and furniture that have ever been significantly damaged even if they look OK on the outside.

4. Carpet in the bathroom or basement? Don’t even think about it. And if you have it, get rid of it.

5. Provide adequate ventilation in hot areas. The kitchen and bath are two of the highest-risk rooms for mold. Install exhaust fans in both.

There are at least 5 more tips so call me for the long list 831-236-4513..

And for this week's top picks in the Monterey Peninsula real estate market:
0 SW CORNER OF MONTE VERDE AND 12Th STREET, Carmel MLS #: 81050665 $1,150,000 Beds: 2 Baths: 2 (2/0)

Here's the perfect Carmel getaway. All freshly painted and updated with 2 bedrooms, 2 baths and all new granite kitchen. Located on a corner lot in the Golden Rectangle. SqFt: 1,342 Lot Size: 4,000Sqft open this Sat 1-4 & Sun 2-4 Come see me

16091 BALFOUR LANE, Salinas Monterey Highway MLS #: 81051596 $549,000 Beds: 3 Baths: 3 (2/1)

Single story Serra Village home at a great price! This lovely home is filled with light and set on a large, corner lot. The 3 bedrooms are all good sized with updated bathrooms. The living room/dining room combo has a large & beautiful brick fireplace with French doors leading to a large backyard with patio & lush lawn. Lovely front yard & patio. Great home, Great price & truly turn key! SqFt: 1,667 Lot Size: 10,365 Sqft

1255 MESCAL STREET, Seaside MLS #: 81051436 $430,000 Beds: 3 Baths: 2 (2/0)

Short sale opportunity. Very nice single-story home in upper Seaside. Enjoy the city light and airport views from the back and rolling hills from the front. Sales price subject to lender approval. Home is in move-in condition. SqFt: 1,719 Lot Size: 7,800 Sqft

1925 BRADBURY STREET, North Salinas MLS #: 81050619: $225,000 Beds: 3 Baths: 3 (2/1)

Beautiful 3 bed 2 1/2 bath home in the Cottages at Miramonte. Very well cared for and maintained and in great condition. High Ceilings, fireplace, nice tile counters, and a large back patio. Short sale subject to lender approval. SqFt: 1,397 Lot Size: 2,580 Sqft

© Patty Ross, KRXA Radio Show #182 October 29, 2010

A Real Estate Story: A Brief History of the Home Mortgage Interest Deduction

2010-10-27T08:00:00.000-07:00

How did the home interest deduction come about?

The First Income Tax - In 1894 Congress passed the first income tax, which was challenged and later struck down by the Supreme Court. So, government got into gear and in 1913 the Sixteenth Amendment was ratified granting Congress the power "to lay and collect taxes on incomes, from whatever source derived."

The Second Income Tax - Congress quickly imposed an income tax starting at 1% and rising to 7% on incomes over $500,000. This resulted with less than 1% of the US population paying any income taxes. This was the beginning of the modern graduated income tax.

Enter The Tax Deduction - The tax was offset with a deduction of any interest paid. Rental income was offset by the interest paid to finance the rental property and interest became a tax deduction.
Prior to WWI, home owners typically owned their homes outright. With the exception of financed or leased farm land, homes were purchased with cash. So at first, the mortgage interest deduction did not benefit homeownership.

Soon, local Thrift & Loans (Savings & Loans) were created to provide access to home financing.

Subsequently, programs through the FHA, VA, and later Fannie May and Freddie Mac facilitated broader homeownership. Finally, the creation of the conventional loan and the mortgage back security market brought financing to the masses. Along with homeownership came the mortgage interest deduction.

Of course home ownership today still makes sense in terms of deductions so let’s take a look at some good options here on the peninsula.'

25850 PASEO DE LOS ROBLES , Salinas Monterey Highway   MLS #: 81050150 $2,175,000 Beds: 4 Baths: 3.5
This gated, single story estate in Pattee Ranch has 1st class quality of craftsmanship & attention to detail. Follow the flowing floor plan to the enormous master suite w/ office, fireplace, his & hers walk-in closets, private patio & views of Castle Rock. The gourmet kitchen was completed in summer of 2010 w/granite, stainless steel & wine fridge. Backyard boasts a stone fireplace, bocci court, pergola, putting green & incredible views! SqFt: 4,708 Lot Size: 2.76 Acres Check out photos on site www.pattyrosscarmel.com

109 17TH STREET, Pacific Grove   MLS #: 81050655: $899,000 Beds: 2 Baths: 2 (2/0)
Newer home, move-in ready & just steps to Lover's Point and Monterey Bay Coastal Trail in the heart of PG. Eric Miller designed, contemporary Mediterranean retreat w/ground level master suite w/private patio. Elevator takes you to the great room w/fireplace, kitchen w/ample granite countertops, Maple hardwood floors. Cathedral ceiling & windows fill rooms with light. Peeks of Bay, 2 car garage. SqFt: 1,593 Lot Size: 2,100 Sqft

129 WHITE OAKS LANE, Carmel Valley   MLS #: 81050838 $660,000 Beds: 2 Baths: 3 (2/1)
Completely remodeled condo in 1999. New roof 2 years old. This beautiful light & bright unit has the most desirable floor plan and view location. Spacious south facing deck surrounded by private landscaping. SqFt: 2,090 Lot Size: 3,570 Sqft

779 ALICE STREET, Monterey   MLS #: 81051072 $549,000 Beds: 3 Baths: 2 (2/0)
Shining top-of-the-hill New Monterey home; spacious reverse floor plan with vaulted ceilings and lots of light upstairs with an open/inviting family room-kitchen with balcony for the barbeque; master upstairs, two beds/bath and laundry on first floor; perfect spot to get to DLI on a quiet street;   size level lot with room for gardening/plants off of back deck; ready for new owners now! SqFt: 1,438 Lot Size: 2,500 Sqft

© Patty Ross - KRXA Radio Show #181 October 22, 2010

4 Reasons Why Vacation Property Owners Should Put Their Rental Fears to Rest

2010-10-21T18:00:00.000-07:00

Many vacation property owners would like to rent their home out when they’re not using it themselves. Problem is, they let their worry about the “what-ifs” override the benefits of collecting all that glorious rental income. Let’s take a look at some of the most common objections as to why vacation property owners don’t rent out their homes.

Objection #1: I am uncomfortable with strangers staying at my house. 
Perhaps you’re worried about renters trashing your property or stealing from you. This almost never happens. Even in the unlikely event that it did happen, that’s why you have insurance and ask for a security deposit upfront. And if you rent by owner, you really decrease the likelihood that something bad will happen.

Objection #2: I want flexibility for personal use. 
You have complete control over when you rent your home out and when you don’t. You can rent it out during peak season and enjoy it yourself in the off-season. You can live in it during the winter and rent it out in the summer. You can reserve a few weeks out of the year for your own use and rent it out the rest of the time. You can even rent it out for two weeks without having to claim that income on your taxes (IRS Publication 527). Except in Carmel of course where we have a 30 day minimum.

Objection #3: Financially, I don’t need to rent.
Think about it this way, if you have stocks and they are paying dividends, do you say no thanks to Microsoft? Of course not. So why would you leave real estate investment dividends on the table?

Objection #4: No one would want to rent my vacation home, anyway.
If you just bought a far-from-luxurious suburban house for $150,000, you might assume that few people would want to rent it. Think again. Look on HomeAway.com and you’ll see listings for homes that range from rustic cabins to majestic castles.

Here are my latest picks for great buys:
3538 GREENFIELD PLACE, Carmel 93923 High Meadows $1,750,000 Beds: 4 Baths: 4 (3/1)  Dramatic Ocean/white water views, Point Lobos, Monastery Bay, Santa Lucia Mountains, to Carmel Valley!! Surrounded by windows, the living/dining room and the master bedroom have "knockout" white water views(on a sunny day)! Beautifully updated with superior materials. Wood floors throughout, skylights, loads of windows, guest quarters or 4th bedroom and bath, meandering paths, front patio. SqFt: 2,700 Lot Size: 9,583 Sqft

19652 WOODCREST DRIVE, Salinas Monterey Highway MLS#81048705 $1,075,000 Beds: 5 Baths: 4  Gorgeous, spacious home behind the gates of Prominence in Las Palmas II. 2 story & upgraded thru out. Gourmet chef's kitchen w/SS appliances, granite, breakfast bar & large pantry. Lovely master suite w/balcony, fireplace, huge walk in closet & spa-like bath plus 4 large bedrooms. Downstairs bedroom & bathroom for guests. Backyard has sprawling lawn & fireplace perfect for entertaining or staying in! SqFt: 4,307 Lot Size: 49,222 Sqft

4970 PENINSULA POINT DRIVE, Seaside MLS #: 81048624: $550,000 Beds: 3 Baths: 2 (2/0)  A beautifully upgraded & desirable Avocet Model with custom Travertine stone floors, tray ceiling in main bedroom with French doors to lovely paver-patio garden. Don't miss the gigantic walk-in closet in main bedroom. Spacious kitchen with Corian counter tops & molded sink. Stainless steel appliances too. Huge corner lot with "no-work" front & side yards maintained by HOA. Across from greenbelt. SqFt: 2,115 Lot Size: 6,037 Sqft

208 CARMEL AVENUE, South Salinas 93901 Maple Park MLS #: 81049400 $399,000 Beds: 3 Baths: 2  Charming remodeled, spacious home in desirable Maple Park neighborhood. This beauty offers refinished hardwood floors, a quaint dining room with built-in china cabinets, sunny kitchen offering new appliances & granite counter tops, new bathrooms, 2 attics for storage and a well maintained yard with fruit trees. This home won't last long--it's a regular sale. SqFt: 1,729 Lot Size: 5,500 Sqft

© Patty Ross, KRXA Radio Show #178 October 15, 2010

5 Reasons Why Now is a Good Time to Invest in the Housing Market

2010-10-12T17:49:00.000-07:00

Foreclosures spiked in August 2010, with banks seizing 95,364 homes, according to RealtyTrac, a housing research firm. They were up 25% from August 2009 and at their highest level since the company started tracking this data in 2005.This is frightening news for homeowners, home sellers and home builders who may feel like they are barely hanging on, because it signifies continuing weakness in the housing market. But all of the news isn’t bad, since this may signify that the worst is over.

Here are some reasons why now is a good time to invest in the housing market:

The trend may reverse. Actual foreclosures lag defaults and foreclosure notices, and both of these latter categories are going down. Default notices peaked in April 2009 at 30% below their year-ago level.

The government programs have disappointed. Lots of foreclosures are coming now, because it took some time for folks trying to modify their mortgages under the government’s Making Home Affordable program to wash out. Some homeowners didn’t qualify, others did qualify but then fell behind on their modified mortgages. The Obama Administration mortgage relief program is now estimated to be able to help only 1/6th of the three million homeowners it had intended to aid.

Homeowners who are current may have options. Last week, the Obama Administration launched its latest effort, which would help homeowners who are underwater (they owe more than the house is worth) with their mortgages but are making timely payments by reducing the amount owed. That’s good for folks who want to refinance but haven’t been able to, but there are ramifications. One, it will lower their credit score. And any secondary debt, such as a home equity line of credit, will greatly complicate any modifications, or make them impossible.

It’s all regional, remember? Some housing markets are doing just fine. The biggest trouble spots in August probably sound familiar: Nevada, Florida, Arizona, and California. If you think you want to retire to one of those previously popular locales, it’s a good time to go shopping for your next home; you’ll get an excellent price.

Bargain hunters have plenty of time to catch the auctions. There’s going to be a lot of inventory for a long time. Foreclosed homes actually put up for auction reached 147,003 properties in August, and that number can be expected to go up before it goes down. There is already more than year’s supply of existing homes on the market now.

The properties we’re going to look at today are all bank owned and ready to go:

91 CORONA ROAD, Carmel Highlands MLS #: 81006931 $1,400,000 Beds: 3 Baths: 3 (3/0)
Park-like setting and early California Architecture. This Highlands home has it all. High end kitchen, lush mature gardens, plenty of privacy and recent complete remodel design, turn key potential. SqFt: 2,900 Lot Size: 40,510 Sqft Check out photos on site www.pattyrossacarmel.com

409 OSO D'ORO COURT, Salinas Monterey Highway MLS #: 80909546 Beds: 4 Baths: 3 (2/1) $1,009,000 Open floor plan & gorgeous views at this private home at the end of the cul-de-sac. Sunny & warm. Spacious patios take advantage of lovely golf & valley views. Gourmet kitchen (with upgraded appliances & materials) & family room combo make this home not only cozy for quiet nights in but also great for entertaining. Great deal! SqFt: 3,455 Lot Size: 37,055 Sqft Call me for private showing 831-236-4513

24438 SAN MATEO AVENUE, Carmel Active MLS #: 81042589 Beds: 3 Baths: 2 (2/0) $769,000
Hardwood floors in LR and sep DR. 2 fireplaces. 2nd story master suite w/ large tub, separate shower, closets. French doors to private deck. Downstairs 2 bed and bath, entry, charming study/den w/ FP, Saltillo tiles & doors that lead to patio and garden. 2 car garage. This property needs short sale approval. Large lot! SqFt: 2,050 Lot Size: 8,500 Sqft

3020 VERA LANE, Marina MLS #: 81040592 Beds: 3 Baths: 3 (2/1) $349,000
Newer home in good condition on a corner lot. Everyone can live in a single story. Nice size yard. SqFt: 2,035 Lot Size: 8,398 Sqft

(c) Patty Ross, KRXA Radio Show #179, October 2010

Popular online real estate appraisal sites are not as accurate as you may think

2010-09-29T10:56:00.000-07:00

The do-it-yourself systems online make it very tempting for buyers to try to research homes without consulting a realtor first. This has always confused me as it’s the seller who pays the commission and with all the liability involved with a home purchase it’s rather penny wise and pound foolish to make that mistake.
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.

As a matter of fact to prove that point, there’s an estimate right now on Zillow for a lot in Carmel that shows a house on it and there is no house and never has been a house yet they are calling it a 3 bed 2 bath.. and estimating the value at $1.2, in reality it was just appraised by a licensed appraiser for $130,000.
The thing is, online home appraisal Web sites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located. Some Web sites offer a price range of $20,000-$40,000 more or less than the actual value of the home.

Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value. Working with a local realtor can help minimize inaccuracies in home values. Realtors can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.

While some agents report that Web estimates can educate clients and provide a reasonable assessment of market conditions and the home-buying process, working with a local realtor is the best option.

Let’s take a look at some newly researched homes especially for you…

24936 VALLEY WAY, Carmel MLS#: 81020038 $1,899,000 Beds: 4 Baths: 3 (2/1) Bank owned a Saroyan home meticulously restored to perfection. Hand hewned pecan/walnut floor, custom sinks, top of the line appliances, three fireplaces situated on a totally fenced and gated lot. Bonus guest studio, electric gates, professionally landscaped, stone patios, outdoor entertainment area and more. SqFt: 2,600 Lot Size: 10,400 Sqft

25390 TIERRA GRANDE DRIVE, Carmel Valley MLS #: 81046903 $849,000 Beds: 3 Baths: 3 (2/1) Beautiful Carmel Valley Views from this very well maintained home one sunny lot. Vaulted, beamed ceiling in living room with fireplace, expanded dining room, family room, updated kitchen and large utility room. Enjoy all that Carmel Valley has to offer from the sunny, south facing deck, the large outdoor patio or the sunny screened-in porch. SqFt: 2,308 Lot Size: 38,588 Sqft

810 SPRUCE AVENUE, Pacific Grove MLS #: 81046315 $533,000 Beds: 3 Baths: 2 (2/0) Shows like a model home. Close to town on a corner lot w/fenced yard. Totally remodeled under City Senior Program. Cute as a doll house and ready to move in. if you are searching for the perfect starter home or vacation home, this is it. 2 of the Bedrooms & 1 Bath have separate entrance. SqFt: 915 Lot Size: 2,700 Sqft

0 4th STREET, Salinas Monterey Highway MLS #: 81045817 $425,000 Beds: 2 Baths: 1 (1/0) Cute as a button Spreckels home. Great curb appeal and great location. Very clean and cute inside & out, nice quiet street location. Remodeled in 2008, great working kitchen with all new appliances. Large backyard with tons of potential! New roof & hardwood floors in 2008 & new exterior paint in 2010. Move in ready! SqFt: 586 Lot Size: 6,127 Sqft

(c) Patty Ross, KRXA Radio Show #176 September 24, 2010

Signs point to a US real estate market stabilization

2010-09-19T16:26:00.000-07:00

Positive news appears to be on the horizon...According to Bloomberg.com in a September 18th. 2010, "Home sales probably increased in August, a sign the U.S. real estate market is stabilizing after the expiration of a tax credit caused demand to plunge, economists said before reports this week." Read more...

Housing Remains Highly Affordable for Sixth Consecutive Quarter

2010-09-19T14:39:00.000-07:00

Bolstered by favorable interest rates and low house prices, housing affordability remained near its highest level nationwide for the sixth consecutive month since the series was first compiled nearly two decades ago, according to the National Association of Home Builders.

The HOI (housing opportunity index) indicated that 72.3% of all new and existing homes sold in the second quarter of 2010 were affordable to families earning the national median income of $64,400.

Homeownership is within reach of more households than it has been for almost a generation, Interest rates continue to hover at historic low levels, the economy is beginning to rebound and with house prices starting to stabilize, conditions are beginning to draw home buyers back into the market, which is a positive step on the path to recovery.

Syracuse, N.Y., was the most affordable major housing market in the country.
Among smaller housing markets, the most affordable was Springfield, Ohio, where 96.6% of homes sold during the second quarter of 2010 were affordable to families earning a median-income of $56,800.

New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as its least affordable major housing market during the second quarter of 2010.

You’ll be interested to know that the other major metro areas near the bottom of the affordability scale included San Francisco-San Mateo-Redwood City; Santa Ana-Anaheim-Irvine, Los Angeles-Long Beach-Glendale, Calif.; and Honolulu, all metro areas that have lingered among the bottom rankings for several quarters.

San Luis Obispo-Paso Robles, Calif., was the least affordable of the smaller metro housing markets in the country during the second quarter. Others near the bottom included our very own Santa Cruz-Watsonville, Calif.; Ocean City, N.J; Santa Barbara-Santa Maria-Goleta, Calif.; and Napa, Calif.

So let’s take a look at some affordable homes in this neck of the woods.. .

55 LA RANCHERIA ROAD, Carmel Valley MLS #: 81017814 $995,000 Beds: 4 Baths: 3 (2/1)  Price reduction...MOTIVATED SELLER...Newly constructed home conveniently located off Los Laureles Grade. Enjoy easy access to both Monterey Peninsula or Carmel Valley. Shopping, golf and schools are all nearby. Spacious home with natural light and breathtaking views of the Valley and a peak of the ocean. SqFt: 3,358 Lot Size: 21,836 Sqft (almost 1/2 acre)

489 TOYON DRIVE, Monterey MLS #: 81028892 $649,000 Beds: 4 Baths: 3 (3/0)  Very spacious Toyon Heights home with separate living unit and 3 car garage. Features include new windows, hardwood floors, paver driveway, updated kitchen & baths, bonus workshop and/or office space. Very well maintained. Downstairs guest unit. SqFt: 2,275 Lot Size: 16,800 Sqft
1339 DAVID AVENUE, Pacific Grove MLS# 81031499 $569,000: Beds: 3 Baths: 3 (2/1)  Spacious, sunny & bright newer home overlooking PB forested area, large master suite, new carpeting and paint throughout. All new appliances, newly tiled bathrooms. Located at the end of a quiet CUL-DE-SAC, very private setting, low maintenance yard. Large garage + offstreet parking, patio area. All conveniently located close to shopping and schools. SqFt: 1,859 Lot Size: 6,500 Sqft
36 CASTRO ROAD, Monterey MLS #: 80922987 $2,995,000 Beds: 5 Baths: 6 (4/2)  One of the most unique & beautiful homes on the Monterey Peninsula! This Spanish Colonial embraces The Old Del Monte Golf Course as it has for 60 years. Superior craftsmanship, terraced landscape, pool, Jacuzzi, wine cellar, office, radiant heat, BBQ entertaining area and 3-car garage barely describe this opportunity for resort living at its finest in Monterey. SqFt: 4,400 Lot Size: 39,208 Sqft (just short of 1 acre)
I’ll be there Sunday 2-4. Come by after the jazz festival, mention the show, and there’ll be a treat in store for you!

(c) Patty Ross, KRXA Radio Show #174 (September 17, 2010)

How to Budget for Home Maintenance

2010-09-16T17:14:00.000-07:00

New homeowners oftentimes stretch themselves financially when having to pay the initial costs that come with purchasing a home. While it is important to focus on these preliminary expenses, homeowners must be aware of the financial requirements that come with maintaining the home.

Enthusiastic new home buyers hopefully have the funds to cover a home’s initial deposit, closing costs and any cosmetic touchups.

However, buyers frequently focus only on those first costs, overlooking the financial requirements of maintaining the home over time.

According to industry standards, homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses. While this minimum will help ease through maintenance costs, a 2-3% cushion is even better.

A home inspection will help buyers better understand the condition of the house. They will estimate the age of major structural components and systems, providing the buyer an indication of each item’s anticipated lifespan. Understanding the current age of any particular system will allow buyers to calculate approximately when they’ll be due for major repairs or replacement.

LivingWithMyHome.com offers a list of approximate life expectancies of home components as well as cost estimates, useful as a tool for financial planning of homeownership.

Home buyers should plan for big-ticket costs across a five-year timeline, budgeting for major expenses, such as roof repairs, new air conditioners or plumbing upgrades. The best plan is to sock away those funds, rather than relying on borrowing from banks. As the credit crunch has deepened, banks have nearly stopped offering home equity lines of credit, so counting on a loan for needed repairs is a risky strategy.

Many people, particularly former renters, are accustomed to paying rent and likely utilities, phone, Internet service and cable.

As a homeowner, however, there will be other utility costs such as water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and possible homeowner’s association dues.

(c) Patty Ross, KRXA Radio Show #173 September 10, 2010

Three Lessons from Three Years of Recession

2010-09-08T16:00:00.000-07:00

If there’s one thing that time consistently does, it’s move forward. So, as this Great Recession continues to wear us down, it may be time to cast our eyes towards the horizon as well as take stock in what we’ve learned so far, three years into this latest economic slump.
Here are three lessons we have learned within the last three years, with a glimpse to what the future holds for the new real estate.

1. A house is a home, not a piggy bank
The great agents always knew this, but it has become—and will continue to be—a truism that will linger with us for a long time to come: a house is a home, not a short term investment.

Too many Americans have lost too much to think of their homes as a siding-clad ATM. Instead, the best agents will be apt at matching houses with clients to find a perfect fit. A home, after all, is more than just crown moldings, copper wiring, and bay windows—it’s a sense of place, of community and of comfort. It matches who you are and fits seamlessly within your daily life.

2. The old way is not going to cut it I’m sorry to say but, like your car phone, your fax machine is obsolete. It’s amazing how quickly our world has changed within the last three years. Just think, back in 2007, Twitter was still in its infancy, Facebook was just a trend, and the first iPhone had just come out, with the app craze still months away.

As this Great Recession has taught us, however, we agents can no longer afford to simply leave a message after the beep.

3. It really is all about people. As with any great crisis, the Great Recession has reminded us of that one ideal that real estate was always about, but somehow got buried underneath the deluge of offers and listings: it all comes down to people.

Real estate is one of the last industries that cannot be automated. No matter how many websites, laptops, or smart phones are out there, no computer program can tell you that you can get the best lunch at the little cafe on Ocean or that the old man at the house next door will always be willing to lend you his ladder. A home, neighborhood and community can never be quantified into ones and zeros. It’s our job as agents to be the expert of your area, and to make sure that we’re putting the people we’re serving ahead of everything else.

It’s only natural to want to get rid of this Great Recession, to tear away from this downturn and go back to “normal.” But the new normal will not be like the old normal. Three years from now, we most likely will be recovered, but we’ll also be changed—for the better.

My latest picks:
131 LAS BRISAS DRIVE, Salinas Monterey Highway 93940 MLS #: 81043273 DOM: 1 Beds: 4 Baths: 3.5
$1,400,000
Exceptional Golf Villa with rare corner lot within the gated and private Pasadera! Wonderful opportunity to own the perfect Golf Villa! Featuring a Gourmet Kitchen and luxury living with beautiful details and amenities along with many upgrades. Separate Guest Casita and outdoor entertaining patio with fireplace and views. SqFt: 3,305 Lot Size: 7,700 Sqft
24438 SAN MATEO AVENUE, Carmel 93923 MLS #: 81042589 Beds: 3 Baths: 2 (2/0)
$799,000
Would-be treasure in Carmel Woods. Hardwood floors in LR and separate dining room. 2 fireplaces. 2nd story master suite w/ large tub, separate shower. French doors to private deck. Downstairs 2 bed and bath, entry, charming study/den w/ Fireplace, Saltillo tiles & doors that lead to patio and yard w/ garden possibilities. 2 car garage. A great project-restore this special house to the beauty it once was. SqFt: 2,050 Lot Size: 8,500 Sqft
28082 BARN WAY, Carmel Valley 93923 MLS #: 81040897 Beds: 2 Baths: 3.5
$750,000
Gorgeous remodel at the Ranch in sunny Carmel Valley. End unit townhome with mountain views, new kitchen and baths. Tile floors throughout, gourmet kitchen with all new appliances, large sunny deck, two master suites, one with an adjoining study that could be made into a third bedroom. SqFt: 2,412 Lot Size: 2,792 Sqft
2442 NORTH MAIN STREET,#F, North Salinas 93906 MLS #: 81042536 DOM: 3 Beds: 2 Baths: 2 (2/0)
$99,000
Attractive condo overlooking the adult pool in gated complex with many upgrades including newer kitchen appliances, newer tile and laminate floors, ceiling fan in family room, newer paint, full size indoor laundry room, newer light fixtures and newer replaced hardware in bathrooms and kitchen. SqFt: 1,150
(C) Patty Ross KRXA Radio Show September 3, 2010

Patty Responds to A Caller About Her Commercial

2010-08-31T10:08:00.000-07:00

In response to a caller:

I’ve been doing this show now for about 5 years (amazing). In that time I’ve received a few calls, mostly about the properties I highlight, some just wanting to chat about real estate, some who have problems or issues they want answers to.

This week I received my first “hate” call.

This guy was clearly angry and although he didn’t leave his name I did capture his number on my voicemail and did attempt to call him back, hoping for an opportunity talk and get at the root of his apparent anger.

Haven’t heard from him yet.

He was absolutely livid about my commercial. Said all kinds of very uncomplimentary things the least of which was that I was stupid and the reason for our current down real estate market. Of course this points to the fact that he doesn’t listen to this show or he would realize that not only is this not a ‘down’ market but a very opportunistic market for people who never dreamed they could own a home here on the Peninsula. My recent buyers include teachers, nurses, policemen and women, a fireman and single mothers.

But that aside, he was particularly angry about the part in the commercial that refers to wealth building through real estate. He indicated that I suggested that people cash out and invest all their money in a home.

I have listened to the commercial very carefully and never at any point do I suggest that, but simply that historically real estate investments have been the #1 reason for wealth in this country. With the decrease in prices now, it continues to be a good time to invest, providing you have excellent credit, a good job and a substantial down payment.

Yes, we (and I mean primarily the lending industry) were largely responsible for eliminating that criteria for too many years and that resulted in a long overdue crash and I’m sure that a few realtors were in cahoots with some of those lenders and made lots of money at the expense of their buyers but I was not one of them. As a matter of fact, I got in to the business just as things started to spiral downward (figures).

Anyway, I’m hoping that Mr. Caller hears this show and now has a clearer picture of my commercial intent. And if he is listening, I would like to invite him to lunch to continue to discuss. OK I feel much better now.

This week's top picks:
85 MOUNT DEVON ROAD, Carmel Highlands 93923 Beds: 3 Baths: 4 (3/1)  $3,495,000  Property is located at what is known as "The top of the world". Very private setting, gated and dramatic ocean views!! All of Pt. Lobos, PB and Carmel. Turn key setting. SqFt: 3,376 Lot Size: 87,120 Sqft

25565 PASEO DE CUMBRE , Salinas Monterey Highway 93940 Beds: 5 Baths: 5 (4/1)  $1,475,000  Welcome home to expansive panoramic bay views from Pacific Grove to Santa Cruz from all the main rooms of this gorgeous estate located in gated Bay Ridge. Enjoy the warm sunbelt location from the sparkling pool, Jacuzzi, fire pit & built in BBQ. Built with the finest materials & craftsmanship on 1.5 acres, this estate is what dreams are made of! SqFt: 4,400 Lot Size: 65,775 Sqft

820 CASANOVA AVENUE,#53, Monterey 93940 Beds: 2 List Price: Baths: 1 (1/0)  $269,000  Condo with upgrades - granite counters, stainless steel appliances, washer & dryer, new tile and carpet. Located near shopping, restaurants and access to Hwy 1. This charming ground floor condo is priced right and ready for you to move in. SqFt: 820

1835 LONDON WAY, North Salinas 93906 Beds: 3 Baths: 2 (2/0)  $260,000  House sits on a large lot. Single level. Many upgrades. Walking distance to schools. Must see to appreciate. SqFt: 1,748 Lot Size: 6,113 Sqft

(c) Patty Ross KRXA Radio Show_171 August 27, 2010

The Top 5 Most Common Reverse Mortgage Myths

2010-08-24T22:31:00.000-07:00

Because so many Americans over the age of 62 are facing significant financial stress due to dropping retirement and savings account balances, as well as higher healthcare costs, many groups are targeting seniors under the guise of helping them. HECM (home equity conversion mortgage) reverse mortgages are Federal Housing Administration-insured products and are heavily scrutinized by regulators and legislators looking to protect seniors’ best interests.

As a result, more than 600,000 American seniors have obtained reverse mortgages that have enriched their lives by allowing them to stay in their homes and pay off their bills.

Myth: If I take out a reverse mortgage the lender will own my home.
Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the house is maintained and property taxes and homeowners insurance are paid, the loan cannot be called due.

Myth: My children will be responsible for the repayment of the loan.
Fact: False. Reverse mortgages are non-recourse loans. That means, if the property is sold to pay-off the loan when the homeowner passes away or decides to leave the home for other reasons, there will be no mortgage debt for the family and heirs to repay. The maximum amount owed is the current market value of the house. If the homeowner’s heirs want to keep the home, they would pay the balance in-full to the reverse mortgage lender.

Myth: I can’t get a reverse mortgage if I have an existing mortgage.
Fact: False. With enough equity, you may be able to pay off your existing mortgage or other debt with the reverse mortgage. The reverse mortgage must be in a first lien position, so any existing mortgage must be paid off. Seniors who take out reverse mortgages are free to do anything they want with their reverse mortgage proceeds. Paying off an existing mortgage is the number one reason most seniors take out a reverse mortgage.

Myth: Only low-income seniors get reverse mortgages.
Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

Myth: If I outlive my life expectancy, the lender will evict me.
Fact: False. Reverse mortgage lenders put no time limit on how long seniors can stay in their homes. Since homeowners still own the property, lenders cannot evict them, provided they follow the program guidelines.

Patty's Top Picks:
51410 PARTINGTON RIDGE ROAD, Big Sur MLS: 81039421 DOM: 7 Beds:3 Baths:3 $2,950,000
A dream home on the Big Sur coast. Huge ocean & south coast views. New kitchen appliances, Miele dishwasher, Jenn Air range, 2 fireplaces, outdoor hot tub. Mature redwoods, oaks & madrones. Plans for pool & guest house addition. SqFt: 1,650 Lot Size: 5-7 acres

301 PASADERA COURT, Salinas Monterey Highway MLS #: 81040083 $2,948,000 DOM: 4 Beds: 4 Baths: 5 (4/1)
Stunning single story custom home at Pasadera Country Club. Located on the 2nd green, this home boasts 4 large bedrooms all with walk in closets and en-suite bathrooms, a library w/ beautiful built-ins, a gourmet kitchen that will leave you breathless and views that are beyond compare. Every detail has been thought of and every amenity included. SqFt: 4,484 Lot Size: 43,560

9 ANTELOPE LANE, Monterey MLS #: 81039457
$945,000 DOM: 7: Beds: 4 Baths: 3 (3/0)
Truly beautiful home with hardwood floors, updated kitchen with granite, stainless, maple cabinets. Separate family room with fireplace. Very large flat rear yard with patio, deck, lots of grass and it backs onto greenbelt. Complete window replacement and new roof within the last several years. Big master with updated bath. SqFt: 2,461 Lot Size: 9,147

3020 VERA LANE, Marina/ MLS #: 81040592
$349,000 DOM: 0 Beds: 3 Baths: 3 (2/1)
Newer home in good condition on a corner lot. Nice size yard. SqFt: 2,035 Lot Size: 8,398 Sqft

(c) KRXA Radio Show, Patty Ross, 8-20-10
831-236-4513
pattyross@kw.com
www.pattyrosscarmel.com

6 Reasons to Buy a Vacation Home Now

2010-08-17T02:12:00.000-07:00

As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.

Whether you’re looking for a charming beach bungalow or a high rise condo with spectacular views, a host of market conditions have come together to make buying a vacation home a smart move. The drop in home prices, incredibly low interest rates and the increase in demand for vacation rentals make it an optimal time to explore a second home purchase.

1. Prices down 20-50%. Whether you’re looking for a weekender in Seaside or a second home in Carmel or Pebble Beach, now is the time to take advantage of the reduced prices.

2. Interest rates. Rates, of course, are at historic lows. Lock in a good rate, buy a vacation home in a desirable location, and watch your asset appreciate over the long-term.

3. A relatively safe investment. Real estate has proven itself to be a safe place to park your money for the long-term. (Long-term is key). Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold.

4. Make a profit. Or, better yet, make your vacation home pay for itself. Only planning on using your vacation home a few months out of the year? Rent it out short-term to vacationers looking for a great place to stay. Many homeowners make a killing listing their homes on VRBO.com. (Vacation Rental By Owner). When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Take this week for example with The Concours De Elegance in town.

5. Vacation rental demand is heating up. Overall, vacation rentals are less expensive than hotel rooms, especially for longer visits and for families. Savvy travelers know this. In addition, the weaker dollar makes U.S. destinations attractive to travelers from countries with stronger currencies.

6. The pressure of bidding wars is off. Sure, you may not get bargain basement prices on a beachfront cottage—but you might if you’re willing to buy a few blocks away. Houses aren’t exactly flying off the shelves these days, but buyers now have less pressure to make a hasty decision. Buyers looking for deals on vacation homes can really do their homework.

And now...here are some of the area's best buys:

3538 GREENFIELD PLACE, Carmel 93923 MLS #: 81035536 Beds: 4 Baths: 4
$1,750,000
Dramatic Ocean/white water views, Point Lobos, Monastery Bay, Santa Lucia Mts, to Carmel Valley. Surrounded by windows, the living/dining room and the master bedroom have "knockout" white water views. Beautifully updated with superior materials. Wood floors throughout, skylights, loads of windows, guest quarters or 4th bedroom and bath, meandering paths. 2 car garage SqFt: 2,700 Lot: 9,583 Sqft

25850 NORTH MESA DRIVE, Carmel 93923 MLS #: 81021334 4 Baths: 5 (4/1)
$1,650,000
If you are looking for unique, if you are looking for large, if you are looking for a great location, a great school district, a master bedroom to "live in", then look no further. The house is surrounded by lush landscaping, Satillo tile floors, separate downstairs guest quarters, peeks of ocean. 2 car garage. Definitely not a drive by. Come and experience. SqFt: 4,160 Lot: almost an acre

15 OCEAN PINES LANE, Pebble Beach 93953 MLS #: 81036881 Beds: 2 Baths,2
$500,000
Views abound from this cute condo in Ocean Pines. New carpet, paint, wet bar. Patio off living room and master bed with crashing waves below. SqFt: 1,272

702 REDWOOD LANE, Pacific Grove 93950 MLS #: 81036484 Beds: 2 Baths: 2
$459,500
Fresh, lovely and open, yet private. New carpet, vinyl, and just-painted walls. It has a very private patio and there is a large 2 car garage. All you need to do is just move in and enjoy this conveniently located home in its beautiful and tranquil oak and pine studded setting. SqFt: 1,156 Lot: 1,582 Sqft

831-236-4513
pattyross@kw.com
www.pattyrosscarmel.com

(C) Patty Ross - KRXA Radio Show August 13,2010

4 Important Tips to Keep in Mind when Seeking Senior Housing

2010-08-07T19:10:00.000-07:00

People are living longer today due to dramatic advances in medical science and health lifestyles. Currently, 13% of the U.S. population is 65 and older, up from 4% in 1900.

As Baby Boomers turn 65 in high and higher annual numbers, it is estimated that one in five Americans will be over age 65 and about 5% over 85.

The senior housing industry has been growing dramatically over the last 15 years as many adult children, especially daughters who have usually been the main caregiver for aging parents, are now in the workforce and unable to provide the attention to their parents’ needs, whether physical or social.

There are a number of things to be considered when choosing lifestyle alternatives:

-Location. Keeping your parents close to home should not be the number one consideration. Although it is important that the community be convenient for family and friends to visit, being close to amenities they need and trust will make their senior living experience rewarding and more fulfilling.

-Type of community. Visiting to make sure the current residents have similar interests, backgrounds and values will allow for a more enriching life in the golden years. Many communities invite prospective residents to tour their community and enjoy lunch with the community which is a wonderful way to know if the culture is a fit. Some even offer a weekend stay to experience more fully what the community has to offer.

-Staff. Is the staff appropriately dressed, personable and outgoing? Do the staff members treat each other in a professional manner? Does the staff call residents by name and interact warmly? The answers to these questions will determine quite a bit toward whether the community is right for your loved one.

-Medical needs. Does the community have on site medical supervision? If not, is there an agency that is associated with the community that can help when needed?

Let’s take a look at some various local properties that may work for retirees who can still fend for themselves.
12 MAL PASO ROAD, Carmel Highlands 93923 MLS #: 81037205 DOM: 6 Beds: 3 Baths: 4 (4/0) $2,495,000
Highlands at its best! Perfectly functional home w/beautiful form. Nestled onto site w/mesmerizing ocean/canyon views from every room. Exquisitely landscaped gardens, multi-level decks complete outdoor living areas. Separate dining/family rooms, spacious LR w/lots of windows, French doors & wood-burning stove. Kitchen is warm, inviting & fully-equipped. 2 garages hold 6+ cars. 3098 sf 49,450 lot

10600 SADDLE ROAD, Salinas Monterey Highway 93940 MLS #: 81038104 DOM: 2 Beds: 3 Baths: 3 $1,195,000
Remarkable unobstructed bay and valley views. A beautiful, open, rather traditional interior all wrapped up in a geodesic dome exterior. Very high ceilings, French doors leading to a wrap-around deck, hardwood floors throughout the main level and a really great contemporary kitchen with all the upgrades you will want! 3rd bedroom on lower level is perfect for separate guest quarters. 2995 sf 87,120 lot

1169 PROSPECT STREET, Seaside 93955 MLS #: 81038153 DOM: 0 Beds: 2: Baths: 1 (1/0) $299,000
Amazing house. Fully landscaped with decking, natural vegetation. End of cul de sac. 1028 sf 11,000 lot check out photos on my site www.pattyrosscarmel.com

86 DEL MESA CARMEL, Carmel Valley 93923 MLS #: 81033965 DOM: 27 1 Bed: 1 Bath
$390,000
55+ development. Light & bright, spacious, condo. Easy walk to Club House with no steps. Great views of canyon & forest from sunny deck. Extensive remodel--kitchen with custom cabinets, granite, stainless steel appliances, vanity, bathroom, wall-to-wall/bamboo/tile floors and inside washer/dryer. Retirement living at its finest! 953 sf

236-4513 | pattyross@kw.com | www.pattyrosscarmel.com
(c) Patty Ross - KRXA Radio show, Friday, August 6, 2010

The Green Home Market – “Cash For Caulkers”

2010-08-03T08:09:00.000-07:00

Once home construction rebounds you will find a significant increase in certified green homes or those with green features. This increase will come as more local governments incentivize green homes or, in some cases, mandate them.

For example, the California Building Standards Commission unanimously adopted the first mandatory Green Building Standards Code (CALGreen), requiring that all new buildings in the state be more energy efficient and environmentally responsible. The new code will take effect January 1, 2011 and includes all new residential structures.

In terms of the existing home market, there is proposed federal legislation called HOME STAR, also known as ‘Cash for Caulkers’ that will incentivize homeowners to make their homes more efficient and durable.

This 6 billion dollar program would stimulate construction jobs and provide direct rebates to homeowners who invest in qualifying home energy improvements. Rebate amounts can be deducted from overall job costs and paid directly to the contractor or product retailer after the retrofit work has been completed (for more information visit www.efficiencyfirst.org).

If this legislation passes, homeowners are certain to take advantage and when they go to sell they need to call me!

This week's picks:

22400 MONTERA COURT, Salinas Monterey Highway 93908
$800,000 4 Beds 2 Baths DOM 0 MLS #:81037243
Toro Park house located in a cul-de-sac next to park. Single story home with upgraded kitchen. Pretty flower gardens in front yard and nice lawn in back yard with fruit trees galore. Located in the sunbelt of the Monterey Peninsula with great hiking and biking close by. 1928 sf 15,127 lot

5062 SUNSET VISTA DR, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$715,888 Beds: 5 beds Baths: 2|1 baths DOM: 221 MLS: 80956406
Wonderful Sanderling model sitting high on the hill in Seaside Highlands, Granite counter tops, hardwood floors, tile floors, and some carpeting, some views of ocean, great opportunity to own one of the largest homes in Seaside Highlands. Front yard maintained by Home owners association. 3639 sf 8616 lot Short Sale

4530 PENINSULA POINT DR, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$649,888 Beds: 3 beds Baths: 2|1 baths DOM: 88 MLS: 81019577
Upgraded Sand Dollar model with granite countertops, stainless steel appliances, mini-bar area between living room/kitchen, kitchen dining bar, dining nook + formal dining area, fireplace in family room, low maintenance back yard, coved ceiling in master bedroom, deck off master bedroom w/french door access, laundry inside, dual pane windows, near greenbelt, tot play area, close to beach/golf. 2952 sf 4595 lot Short Sale

4792 PARADISE COVE CT, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$611,888 Beds: 3 beds Baths: 2|1 baths DOM: 46 MLS: 81026940
Bay Views from Master Bedroom, wonderful upgraded Anemone Model with coved ceiling in Master Bedroom, light & bright interior, custom fireplace mantel, landscaped backyard with lots of usable space for your enjoyment, convenient location to golf, beaches and all that Monterey Bay has to offer, perfect opportunity for investor or new buyer. 2337 sf 5793 lot

For more information contact Patty Ross
236-4513 | pattyross@kw.com | www.pattyrosscarmel.com
(c)Copyright Patty Ross, KRXA Radio Show 167, July 30th, 2010

5 Tips to Save Money for First-Time Home Buyers

2010-07-19T13:18:00.000-07:00

Those who missed taking advantage of the first-time buyer tax credit but who are still planning the purchase of their first home, continue to have a wealth of opportunities in today’s marketplace. A few smart steps can save first-time buyers thousands of dollars. Here’s a look at some of the ways how:

1. Don’t buy if you don’t plan to stay.
 If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Start by shoring up your credit .
Since you probably will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate .
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector .
A home inspector can let you know if you’re about to buy a lemon of a house or warn you about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major, unexpected problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help .
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

If you have questions about real estate, call me for the answer, or visit my website to see just a few of the great deals out there right now!

831-236-4513
 pattyross@kw.com 
www.pattyrosscarmel.com

Copyright KRXA Radio Show, Patty Ross, July 16, 2010

Good News: Stated Income Loans to Return in 2010

2010-06-29T19:40:00.000-07:00

There's good news in the lending arena. House and Senate Leaders have introduced an amendment to the newly passed  Financial Reform Legislation to bring back stated income loans for residential lending with the following conditions:

1) The loans will only be used for foreclosed properties
2) They will first be offered to liquidate Fannie Mae and Freddie Mac inventory  
3) They will be available with 30% down payment
 4) The borrower must have a minimum credit score of 740
 5) The property must be an owner occupied residence  
6) The borrower must be self-employed and in their field for five years  
7) Personal bank statements for the most recent 6 months will be used to cash flow income

So it seems the data shows that when it comes to stated income loans, the baby was thrown out with the bathwater in 2008. Many of the stated income loans were terribly designed loan programs during the Sub-Prime heyday but didn't start that way. After looking at the historical data they found that when the down payments were kept high as in the early years of these stated income programs, along with higher credit scores, stated income loans were very well performing loans.

In the early 2000's these well performing stated income programs were undermined when many Sub-prime lenders entered the market. These Sub-Prime mortgage companies lowered the down payment requirements to zero and lowered the credit score requirement into the mid to high 500's. At this point, many mortgage analysts knew it was only a matter of time before the market would implode due to its own greed.

Once the implosion occurred, the bank regulators, Congress and various state entities rushed in with draconian efforts to do away with all stated income programs -- good or bad. And with a series of unwise measures, 35% of the home buyers in the nation -- self-employed borrowers, were pushed or locked out of the housing market at a time when the market needed them most.

So there you have it, another indication that the real estate market is slowly shifting back to “normal."

This week's Best Picks by Patty:

26225 ATHERTON PL, Carmel 93923 (Carmel) $1,300,000 Beds: 4 beds Baths: 4|0 baths DOM: 7   MLS: 81029734 Large Lot, almost one acre, distant pt lobos views, located on great street private and Cul-du-sac, lots of water credits too, 2 wood burning fireplaces, Almost 2700 sq ft of living spaceplus bonus private rental unit, great investment potential in more ways than one. 3010 sf .92 acre

1 DEER STALKER PH, Monterey 93940 (Monterey) $935,000 Beds: 5 beds Baths: 3|0 baths DOM: 4   MLS: 81030469 Beautiful home in Deer Flats Park, a solarium, full attic with pull-down stairs as bonus area plus full attic storage over 3-car garage. 2 fireplaces, large wet bar, separate family room, dining room, and breakfast room. Downstairs 5th bedroom or office/den. Hardwood floors in entry, kitchen, breakfast area. 3150sf 9710 lot

21 CUESTA VISTA DR, Monterey 93940 (Monterey) $950,000 Beds: 3 beds Baths: 1|0 baths DOM: 6   MLS: 81029954 The view is "drop-dead" gorgeous--the whole curvature of the bay & downtown Monterey. The house could use some updating. Very private setting. 1244 sf 11,800 lot

307 DEL ROBLES AV, Monterey 93940 (Monterey) $550,000 Beds: 3 beds Baths: 2|0 baths DOM: 5   MLS: 81030226  Newly redone home near Del Monte Beach & NPS. Carmel stone on exterior, updated kitchen with granite counters, distressed hardwood floors throughout. Travertine stone in bathrooms. Low maintenance yard. Conveniently located to beach, rec trails and shopping. 1320 sf 4200 lot short sale

Patty Ross
236-4513
 pattyross@kw.com
 www.pattyrosscarmel.com
KRXA Radio Show June 25, 2010

The Not-So-Clear Crystal Ball...When will the Maket "Come Back?"

2010-06-21T12:05:00.000-07:00

Probably the most asked question I get is, "When will the market “come back”?"

First of all, I’m not sure we want it to come back as it was, as it was so fraught with fraud and problems which led to the crash. And I’ve mentioned many times before that real estate is a local issue and needs to be evaluated based on local stats and considerations. We’re already seeing prices ease back up in Seaside, Salinas Monterey Highway, and Monterey.

But to give you an idea of what the experts are saying. According to the consensus of 92 economists and other housing prognosticators recently surveyed by MacroMarkets LLC, home prices will rise about 12% in the five years ending December 31, 2014. At the end of 2009 the index was down nearly 28% from its peak.

The predictions among the 92 participants swung the full spectrum of economic opinion. Joseph LaVorgan of Deutsche Bank projects home prices rising 37% by the end of 2014 while others including Anthony Sanders of George Mason University and Gary Shilling of A. Gary Shilling & Co., see declines of nearly 18%. That is a 55 point spread!

Forces that will influence the direction of housing prices include these economic considerations:  - The post-tax credit environment  - Working through the nearly 4.5 million distressed residences  - The Fed's budget deficit going forward.
The latter has international implications as the European Union rustles with the credit woes of Greece, Portugal, Ireland and others.
Who would have figured that Greece could affect the value of US homes? But, in this global economic environment you know that the US is being called upon to help bail out governments that haven’t disciplined their own economies. The more the US Treasury is called on, the more taxing it will be on the US economy and its taxpayers. The greater the economic drag, the greater its impact on housing.

My Picks for the Week...

23800 FAIRFIELD PL, Carmel 93923 (Carmel) $1,325,000 Beds: 4 beds Baths: 2|1 baths DOM: 6   MLS: 81028105  Views abound in this home above Monterey Bay. Peaks to the south and views of Monterey, Seaside, and across to Santa Cruz on clear days. Spacious master, separate living, family and dining. 3 separate decks all at the end of a quiet cul de sac. 3195 sf 1 acre check out photos on www.pattyrosscarmel.com

489 TOYON DR, Monterey 93940 (Monterey) $689,000 Beds: 4 beds Baths: 3|0 baths DOM: 3   MLS: 81028892  Very spacious Toyon Heights home with separate living unit and 3 car garage. Features include new windows, hardwood floors, paver driveway, updated kitchen & baths, bonus workshop and/or office space. Very well maintained. 2275 sf 16,800 lot call for private showing 236-4513

38350 LAUREL SPRINGS RD, Carmel Valley 93924 (Carmel Valley) $645,000 Beds: 1 beds Baths: 1|0 baths DOM: 12   MLS: 81027147  The Magic Kingdom - 40 acres of complete privacy, mature oaks & madrones, open meadows. Wonderful mountain views, well-built cabin in like-new condition. Energy self-sufficient property. Gently rolling meadow - ideal for construction of new home, horse barn, and paddocks. Locked security gate, video camera system on property. Located about 50 minutes' drive from Carmel. Live close to nature. 840 sf

1077 AMADOR AV, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City) $198,888 Beds: 2 beds Baths: 1|0 baths DOM: 4   MLS: 81028692 864 sf 5000 lot short sale

Source: Copyright Patty Ross, KRXA Radio Show 163 June 18, 2010

Celebrate National Homeownership Month -- Get the Information You Need to Become a Well-Informed HomeBuyer

2010-06-13T23:55:00.001-07:00

June is National Homeownership Month and consumers need to get informed as they prepare to buy a home. Today, there are a growing number of obstacles for home buyers, including a higher credit score standard and more restrictions on credit. Despite current challenges in the secondary mortgage market, home loans are available to credit-worthy buyers and banks stand ready to help prospective home buyers.
It’s crucial that you have a thorough understanding of the changing market when shopping for a mortgage. Here are seven tips to help you do exactly that:
1. Learn about first-time home buyer programs. Consider taking a first-time home buyers course or visit with your local banker to find out about programs available to you.

2. Get pre-approved. Know the difference between “pre-qualified” and “pre-approved.” Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified. Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home.

3. Be honest with the lender and yourself. You don’t want to borrow more than you can afford. Your bank can provide a calculator to determine if you can afford to borrow and if so, how much.

4. Look at the basics of the loan. Don’t get distracted by all the bells and whistles. Choose the type of loan that makes the most sense for you.

5. Know your credit situation. Obtain a copy of your credit report and FICO score or VantageScore at least six months before you apply for a mortgage. This should give you enough time to challenge and remove any errors on your credit report and take care of anything that’s hurting your credit score. To obtain a free copy of your credit report, visit www.annualcreditreport.com.

6. Consider all the costs. A lender will review costs like fees, closing costs, points, homeowner insurance, and taxes. But consumers should also consider repairs and maintenance costs. As a homeowner, you are responsible for those additional costs - there won’t be a landlord to call.

7. Organize your finances before you go to the bank. While each bank may require different documentation, at a minimum you will need:
- Pay stubs.
- Tax returns.
- Financial statements (one that is less than 60 days old).
- Copies of additional monthly payments such as car loans, credit cards, student loans, etc.
- Any additional information (such as proof of additional income) that you think will help your banker to positively evaluate your credit request.

Home ownership is still an integral part of the American Dream...get the information you need to unlock the door to your next home!

High-End Home Sellers Get Real

2010-04-30T12:00:00.000-07:00

Billionaire tax cheat Leona Helmsley loved a good bargain. So, were she still around, the late hotelier might appreciate recent happenings at her Greenwich, Conn. estate.

The 14-bedroom, 13 1/2-bathroom mansion, which came on the market priced at $125 million two years ago, has been reduced to $60 million. That’s a 52% price chop for the 21,897-square-foot manor on 40 rolling acres.

The Southern California real estate landscape, likewise, has been littered with its share of high-profile price drops. Nicolas Cage’s 11,817-square-foot English Tudor in Bel-Air has been reduced 50% to $17.5 million from $35 million when it first hit the market in 2006. The home of Suzanne Somers and Alan Hamel, started at $35 million more than two years ago and was eventually slashed to a reported $12.9 million—a 63% reduction.

When the housing bubble popped, the most dramatic declines hit the mid-priced and low-end markets, where home sellers had to compete with cheap foreclosures. Now, even the wealthy are facing the new reality as some luxury homes’ prices have dropped—and dropped again—over the last few years and agents are begging sellers to be realistic in setting an asking price.

The high end market here on the peninsula has seen larger than 50% drops in prices over the past few years so now generally sellers are getting the big picture and pricing their homes closer to value which is lessening days on market and even causing some bidding wars in Carmel by the Sea.
KRXA Radio Show #160 April 30, 2010

Relief arrives for some distressed homeowners in California with the lifting of state income tax on debt forgiveness

2010-04-23T12:00:00.000-07:00

Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law last week, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to pay off a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
Of course, always talk to your tax advisor.

(KRXA Radio Show #159 April 23, 2009)

Carbon Monoxide poisoning and your home - What you need to know

2010-04-16T16:55:00.000-07:00

This is a topic I really never gave too much thought to until I had a houseguest last week who told me she almost died from it.

Carbon monoxide (CO) is an odorless, colorless, poisonous gas. You cannot see, taste or smell carbon monoxide which makes it almost impossible to detect. For this reason every home should have a carbon monoxide detector. When inhaled, carbon monoxide enters the lungs and bloodstream where it eventually replaces your body's oxygen, resulting in suffocation. Exposure to high levels of carbon monoxide can cause death within minutes. Symptoms of carbon monoxide poisoning include headache, dizziness, lightheadedness, nausea, weakness and shortness of breath.

Should your carbon monoxide detector go off, or you suspect the presence of carbon monoxide, get outside into fresh air immediately. If you cannot get outside be sure to open as many doors and windows as possible. Then go to the hospital emergency room or call 911 for medical attention. Carbon monoxide can be produced by both wood and gas fireplaces and can be caused by blocked chimneys, leaking chimney flues, cracked heat exchangers or improper venting.

On average, about 170 people in the United States die every year from CO produced by non-automotive consumer products. These products include malfunctioning fuel-burning appliances such as furnaces, ranges, water heaters and room heaters; engine-powered equipment such as portable generators; fireplaces; and charcoal that is burned in homes and other enclosed areas.

In 2005 alone, CPSC staff is aware of at least 94 generator-related CO poisoning deaths. Forty-seven of these deaths were known to have occurred during power outages due to severe weather, including Hurricane Katrina. Still others die from CO produced by non-consumer products, such as cars left running in attached garages.

The Centers for Disease Control and Prevention estimates that several thousand people go to hospital emergency rooms every year to be treated for CO poisoning. With power outages being so common here on the Monterey Peninsula, this should be a concern for all. PGE will come out for free and check your house so give them a call.

(KRXA 540AM Radio Show, April 16, 2010)

Rental Markets are back!

2010-04-12T19:54:00.000-07:00

Real estate investors can buy foreclosures, of course, and they can also benefit from the displaced owners of the foreclosures. They now have "tenants" for their new purchases and their existing properties.

For the most part, from 2000 until early 2007, if you could fog a mirror you could qualify for a mortgage. This easy qualification process lead to two things:

1. The tenant base decreased causing higher vacancy rates and lower rental rates

2. It put so many people in a situation they couldn't afford

Many people had no savings and barely squeezed into a home with minimal down. Many people got put into the interest only adjustable rate mortgages. They qualified when it was interest only or a negative amortization loan, but when it adjusted, they found themselves way over their heads financially.

Also, now many renters are looking for a new place as the home they are living in is suddenly being pulled out from under them because the owner is in foreclosure. Many of them have little or no time to move. Some have only a few days notice, since they didn’t know the owner was even in foreclosure.

I ran into a lady at the carwash who told me she just bought a house in Soledad for $150,000 as an investment. With 20% down, her payments are $650.00 a month, rent is $1200. Nice profit.

So what does all this mean? It means that now is the time to invest in rental properties and we have some great ones, even for first time buyers to look at today.

Welcome!

2007-03-18T21:56:00.002-07:00

This blog is intended to help you to achieve your real estate goals. As a real estate professional I will share my expertise on the latest developments and trends in the market.