Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

January 28th, 2012

How accurate is Zillow’s Zestimate?

Categories: Buyers, Sellers

Real estate websites have transformed the whole experience consumers have of home buying or selling — they have made public what used to be private and difficult to get to — namely, listing and sales data about homes across the country.

Several of these sites offer nearby recent sales, with the promise that savvy sellers can go online, input your address and find out what specific homes in your neighborhood have sold for lately — some even go so far as to take the leap from what those homes have sold for to placing an estimated value on your home.

These sites try hard to do a lot of the work for you — surfacing the homes they see as comparable to yours.

However, these are just that – computer programs that rely on formulas, not necessarily all the facts.

So, what’s involved is a computer taking the description of your home from the public records (which usually reside at the county recorder’s office and in their databases) or from a recent listing (if your home has been sold in the past few years), in terms of the number of bedrooms, bathrooms and square feet, primarily, and pulling out the closest homes to yours that have sold recently that have similar data on record.

However, the computer can’t necessarily distinguish nuances in a property’s condition or aesthetics, nor does it always correct for whether the house two blocks over was a short sale or a foreclosure.

Depending on where you live, how similar homes are to each other in your area, the level of sales activity near your home and the level of accuracy found in the public records for your house and nearby homes, these sites can offer very comparable “comps” — or comparables that aren’t really comparable at all.

If you live in a fairly cookie-cutter subdivision where several homes just like yours have sold very recently, you’re likely to get a good set of comparables, and a value estimate that’s at least in the ballpark. But in many areas, lots of fairly common scenarios can come between you and a good set of automated comps:
• if your home is older and has had a lot of improvements and even additions that are not in the county records, you’re likely to get bad comps;
• if homes in your area are very different from each other, you might get bad comps;
• if you live in a neighborhood very nearby another neighborhood where homes have a much higher or lower value than your area’s (say, because they belong in a better school district or even on the other side of the city limits), you’re prone to getting bad comps;
• if your home is in an area where homes are dense, the algorithm might jump over many very nearby properties to get to a relatively dissimilar one even a half-mile away, and that can give you bad comps.

The listings provided by the sites can be very useful for homeowners trying to stay on top of what homes around theirs are selling for — not listed for, but actually selling for. They are less useful, in my opinion, at placing values on properties; the sites that do this usually have their accuracy rates listed somewhere on the site, and I haven’t yet seen one that’s impressive.

But when it’s time to actually list your home, or figure out what it is worth, no computer — no algorithm — is as accurate as a living, breathing local real estate professional who sees and sells all the different specimens of homes in your neighborhood and sees firsthand what ready, willing, qualified buyers actually pay for them, day in and day out.

This is a great way for you to do some initial research.  But one of the reasons that agents are so invaluable to the home buying and selling process is that they bring more, structured, valuable, precise information to their clients.

Posted by Mike and Amy Mewborn// Please leave a comment.

January 28th, 2012

Bank Owned Homes and Pre-Foreclosures sell at Lowest Prices

Categories: Buyers, Market Trends, Sellers

The share of bank-owned homes and homes in some stage of foreclosure dropped 5 percent from the first quarter to the second quarter, falling from 36 percent to 31 percent, but was up from 24 percent in second-quarter 2010, according to a report released today by foreclosure data provider RealtyTrac.

And distressed properties are selling at a larger discount these days, RealtyTrac reported:

• The average sales price of a bank-owned (also known as real estate owned or REO) home was $145,211 in the second quarter, which was about 40 percent below the average sales price of a nonforeclosure home. That compares with a 36 percent discount in first-quarter 2011 and a 34 percent discount in second-quarter 2010.

• The average sales price of a preforeclosure home (preforeclosures, which are homes in default or scheduled for sale at public auction, are often sold in a short-sale process) was $192,129 in the second quarter, which is 21 percent below the average sales price of a nonforeclosure home. That compares with a 17 percent discount in first-quarter 2011 and a 14 percent discount in second-quarter 2010.

There were 162,680 sales of bank-owned homes to third parties in the second quarter, RealtyTrac also reported, roughly flat compared with the 162,900 reported in the first quarter and down 10 percent from second-quarter 2010.

REO sales accounted for 19 percent of home sales in the second quarter, compared with 23 percent in the first quarter and 15 percent in second-quarter 2010.

There were 102,407 sales of preforeclosure homes to third parties in the second quarter of this year, up 19 percent from the first quarter but down 12 percent compared to second-quarter 2010. These sales accounted for 12 percent of sales in the second quarter of this year, flat with the first quarter and up 10 percent compared to second-quarter 2010.

“The jump in preforeclosure sales volume, coupled with bigger discounts on preforeclosures and a shorter average time to sell preforeclosures, all point to a housing market that is starting to focus on more efficiently clearing distressed inventory through more streamlined short sales — at least in some areas,” said James Saccacio, RealtyTrac CEO, in a statement.

“This gives distressed homeowners who do not qualify for loan modification or refinancing — or who are not interested in those options and want to sell — a better chance of completing a short sale to avoid foreclosure.”

Expedited short sales, he added, “also give lenders the opportunity to more pre-emptively purge nonperforming loans from their portfolios,” and avoid a lengthy foreclosure and REO process.

Tags: Home Prices

Posted by Mike and Amy Mewborn// Please leave a comment.

January 28th, 2012

No Increases in San Diego Home Prices Until 2014?

Categories: Buyers, Market Trends, Sellers

Two prominent home-price indices continued to show declines in September and October, with one outlook indicating no more than flat growth in the next two years.

A home-price index report from loan data aggregator Lender Processing Services showed the national average sales price for single-family homes fell 4.4 percent year over year and 1.2 percent month to month in September, to $202,000.

LPS’ Home Price Index, tracks monthly sales in more than 13,500 ZIP codes. Prices declined on a monthly basis in all ZIP codes covered by LPS. The top 20 percent of homes (selling for more than $317,000) saw a slightly smaller monthly decline, 1.2 percent, than the lowest 20 percent (selling for less than $102,000), which saw a 1.4 percent drop.

“Home prices in September were consistent with the seasonal pattern that has been occurring since 2009,” said Kyle Lundstedt, LPS Applied Analytics’ managing director, in a statement.

“Each year, prices have risen in the spring, but revert in autumn to a downward trend that has not only erased the gains, but has led to an average 3.7 percent annual drop in prices to date. The partial data available for October suggests a further approximate decline of 1.1 percent.”

A report released by property data firm CoreLogic bears out the monthly decline in October. For the third straight month, nationwide single-family home prices fell on both a monthly and yearly basis, dropping 1.3 percent from September and 3.9 percent from October 2010. Excluding distressed sales (short sales and real estate owned home sales, also known as REOs), October’s index fell 0.5 percent from a year ago.

“Home prices continue to decline in response to the weak demand for housing. While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance. Looking forward, our forecasts indicate flat growth through 2013,” said Mark Fleming, chief economist for CoreLogic, in a statement.

The index was down 32 percent in October from an April 2006 peak. Excluding distressed sales, the drop was 22.4 percent. CoreLogic’s index is based on 30 years of data for repeat sales transactions, and “price, time between sales, property type, loan type and distressed sales.”

Tags: Home Prices

Posted by Mike and Amy Mewborn// Please leave a comment.

January 21st, 2012

La Costa Oaks New Construction – Available Right Now

Categories: Buyers, Carlsbad, Communities, La Costa Oaks

Move in ready La Costa Oaks home available in Sandalwood at La Costa Oaks.  Lot 116  Plan 3 is available right now for $824,000.

Home Amenities:

• 3684 square feet
• 5 Bedrooms
• Bonus Room
• 4.5 Baths
• Outdoor Courtyard and Deck
• 3 Car Garage
• Front and back yard landscaping included (NOT typical in new construction)
• Upgraded wood flooring
• Gourmet kitchen with granite counter tops, and Bosch stainless steel appliances
• Access to La Costa Oaks amenities (clubhouse, two pools, fitness center, playgrounds)
• Encinitas and San Dieguito school districts

If you or someone you know may be looking for a fabulous home in La Costa Oaks, contact us!

Tags: La Costa Oaks, La Costa Oaks Homes For Sale

Posted by Mike and Amy Mewborn// Please leave a comment.

January 16th, 2012

Buying Your First California Home – Homebuyer’s Seminar

Categories: Buyers, Home Loans

Posted by Mike and Amy Mewborn// Please leave a comment.

January 15th, 2012

Should you make a back up offer?

Categories: Buyers, Real Estate FAQ

This is always a good question that is asked by buyers.  The answer isn’t always a simple one.

I guess the biggest differentiator is if it is a short sale or not.

If it is not a short sale, if you make a back up offer, and the seller has options, they can use the two offers against each other to drive up the price.  It also puts the first buyer in a position where they may accept the house under less than ideal circumstances solely because there is a back up offer that might take it if they don’t.  It gives the existing offer less bargaining power, giving the seller advantages over both of you!

If it IS a short sale, it may be completely different!  Because short sales typically take a very long time to get bank approval, it is very common that after making an offer, the original buyer may have found another property, and have moved on.  So the bank will often quickly move on to the back up offer.

Each situation is different, but when you find a home that you might like, talk to your Carlsbad real estate agent to discuss your negotiation strategy.  They will determine what might be best for your situation, especially based on how much you may want THAT house!

Posted by Mike and Amy Mewborn// Please leave a comment.

January 14th, 2012

Carlsbad New Construction – Viridian In La Costa Greens

Categories: Buyers, La Costa, La Costa Greens, Relocation

Carlsbad, CA – Viridian in La Costa Greens is one of the premier new construction communities in La Costa and Carlsbad.  This beautiful, amenity rich Carlsbad communities includes luxury features such as:

The La Costa Greens Presidio Club House
Tennis Courts
A Luxury Fitness Facility
A Competition Swimming Pool
Community Playgrounds
Community Walking Trails
Community Grills

In addition to all of these community amenities, Viridian at La Costa Greens is also on the La Costa golf course.

Viridian homes are between 2,800 and 4,200 square feet, starting with 3 bedrooms and 3.5 baths (with the three bedroom homes having either a bonus room or an optional fourth bedroom), going as high as five bedrooms, with a cabana for private living.

The Viridian at La Costa Greens homes are part of the prestigious, high ranking Carlsbad Union School District, going to Poinsettia Elementary School and Carlsbad High School.

Living in La Costa Greens will give you access to  some of the premier shopping, restaurants, fitness centers, and entertainment.

If you are interested in buying or selling a La Costa Home, contact The Mewborn Team.  We are experienced, full time agents, that live in La Costa and are La Costa area experts.

Tags: Carlsbad New Construction, La Costa Greens, La Costa New Construction

Posted by Mike and Amy Mewborn// Please leave a comment.