Buying a Short Sale in 2012 – A Revisit to 2007

I wrote Buying a Short Sale in late January 2007 to share my thoughts with consumers and encourage participation in an on-line dialog. I was 5 months into blogging.

Little did I know how many comments (well more than 400) this would inspire, and the extent to which consumers would share their stories, good and bad, and ask for advice on short sales. I’ve never had a post with this amount of buyer and seller participation, which is pretty cool.

This post has, for 5 years, continued to attract readers, with over 84,000 clicks to date.

“Buying a Short Sale” has also been popular with some AR and non-AR agents, too, a number of whom decided it was worth copying and using as their own. But that’s another topic.

I’ve thought, for some time, about updating this Buying a Short Sale post, given how the short sale landscape has changed…or has it??

And the challenge from AR to take a popular older post and rework it made this too good an incentive to pass up.

You can read the original “Buying a Short Sale” here…but I dare say the comments are much more compelling and interesting. You decide – I’d be curious what you think.

Short Sales

As a buyer watching the real estate market, you are undoubtedly aware there are many "short sale" properties on the market, in just about all areas and in all price ranges. Buyers often believe that these are the best deals, along with foreclosures [that hasn’t changed much, although I find more people know what these are about and many are kinda squirrelly about the potential wait].

Note – this is California. Things may differ in your state!

While you shouldn’t be scared off by short sale properties - they may turn out to be a great deal for you - there are a few things to be aware of you decide IF you want to pursue a short sale purchase:

• A short sale MUST be approved by the lender (but there is NO guarantee)
• The lender is looking for market value, too, and you cannot expect a short sale to be a fire sale (i.e., it may NOT be a great deal after all especially if there is a ton of work to be done)
• If there is one than one lender on the property things become more complicate, and potentially time consuming
• Lender will likely have a checklist of requirements and paperwork required for the short sale process
• Lender will likely demand the sale be "as is"
• Short sales take time (don’t be fooled by that name!) – it’s hard to know what time frame to expect. A few lenders these days can approve a short sale in a few weeks, or even less. Others have taken more than 6 months, or never approve them and the property is foreclosed.

If you are making an offer:

• Make sure you make the offer contingent on the short sale being approved by the lender in writing and set a time frame for approval
• A form (there is a new statutory Short Sale Addendum in California) is required to outline the short sale contingency terms and conditions
• Your buyer agent should interview or “qualify” the listing agent to gain a perspective that they know what they are doing, or not. If they don’t this might be a transaction you might want to avoid.
• In 2007 I said “There is a good chance there will be more than 1 offer.”  Hah, I have yet to come across a listing where there was ONLY 1 offer, except 5 minutes after it came on the market, or when it’s a high-end property. It’s not unusual for there to be 5+ offers and I've heard of more than 15
  
• It’s essential to conduct a home inspection even though the lender will probably require an "as is" sale - you still want to know what you are buying and what repairs need to be made so you can decide if you want to take them on

Be sure to discuss issues and questions with your agent before proceeding, preferably someone who has some experience with short sales.

You do NOT want to take on a short sale purchase without buyer representation by a qualified, knowledgeable licensed agent. There is too much at risk. I’ve never even heard of dual agency in a short sale.

The good news is that there is a ton of information here on AR, for agents and consumers alike, from loads of people who are highly experienced in short sales – Broker Bryant and Katerina and Nestor Gasset in Florida, Melissa Zavalla and Elizabeth Weintraub in California, the list goes on and on.

There’s even a Short Sales Superstars Group.

Carlsbad Arts – The Cannon Art Gallery 2012 Invitational Art Exhibit in Carlsbad CA

The Cannon Art Gallery continues its reputation for exhibiting outstanding works of art at the newest exhibition, the winter 2012 Invitational show running from January 22 until March 11, 2012.

Carlsbad has garnered quite a reputation as an arts community and the Cannon Gallery, a City-owned gallery, is certainly a vital part of that tradition, with multiple shows and events related to those exhibits (e.g., family open studios, live performances) throughout the year.

The Cannon Art Gallery 2012 Invitational showcases a wide range of work by Robert Ecker, Becky Guttin, Roy Jenuine, Robert Nelson, and Sasha Koozel Reibstein. Artists were selected by gallery director/curator Karen McGuire from the 2011 Juried Biennial exhibition.

While wandering through the Cannon Gallery the other day I was struck by the diversity of these works of art, and the talent displayed in their execution. And Director Karen McGuire, as always, has such a talent for assembling the Gallery’s exhibits in a meaningful, cohesive manner that is pleasing to the eye and the emotions.

The Cannon Art Gallery hours are Tuesday through Saturday 11 – 5; Sunday 12 – 5; Closed on Monday

Cannon Art Gallery

1775 Dove Lane (adjacent to the Carlsbad Public Library)

Carlsbad, CA 92011

(760) 602-2021

The Cardiff Kook Run in Cardiff-by-the-Sea, CA On Superbowl Sunday February 5th!

The 1^st Annual Cardiff Kook Run will be held on Sunday February 5, 2012.

The 5K and 10K run is named after none other than the infamous surfing statue in Cardiff on the Coast Highway, the Cardiff Kook (named the “Magic Carpet Ride” by the sculptor).

The Kook, as it is affectionately called has created quite a stir over the years for the numerous and varied costumes it adorns at holidays and for special events. There is a Cardiff Kook website where you can enjoy the Kook at its best, including a ton of photos, and there is even now a Kook’s Café in Cardiff (formerly the Beach City Café)

The Cardiff Kook Run is sure to attract some great athletes but also should be quite a bit of fun, even if you are just watching. No doubt a bunch of runners will be in costume in honor of the Cardiff Kook. There is even a costume contest!

The 10K race begins at Moonlight Beach in Encinitas and heads down the coast through Encinitas, past the Cardiff Kook, to a turn-around at Cardiff State Beach and back. The 5K is a portion of this course.

You can still register on-line for the Cardiff Kook Run.

The Cardiff Kook Run begins at 8:30 am so you will finish in plenty of time to enjoy the Superbowl!

OMG They’re Taking the Toilet Seat!!

MLS listings sometimes list items sellers are not leaving with the home at closing.

This is useful, and essential, particularly if the non-conveying items might be important to the buyers, or when normally they would be items left behind as standard practice (e.g., fixtures).

Better to know up front what things are not going to remain.

The issue of what conveys and what does not can often result in disagreements between the parties if not clarified, in writing, in the contract.

I expect this is true to some extent in other state contracts, but paragraph 8 of the CA Residential Purchase Agreement (RPA) addresses specifically the issue of “items included in or excluded from the purchase price.”

Whether washers, dryers, refrigerators and other appliances stay or not can often result in a dispute, but it’s not uncommon for chandeliers, hardware, wall sconces, hot tubs, and other things to be listed as non-conveying items.

I’ve seen, on rarer occasions, specific plants, for example, noted as being exclusions.

I had to laugh when reading a recent $700,000 listing this morning while searching for a view home for some Carlsbad buyers. The confidential remarks noted, among several other things, that the TOTO washlet toilet seat was, sadly, going with the sellers. Guess it’s good to be put on notice. [In case you’re really interested, the link will let you read more about this invention. What will they think of next?]

While the non-conveying toilet seat struck me as funny, the issue IS an important one - if you want to keep it, better to have it in writing so there is no question from the buyers.

Despite being in the MLS it also pays to have iexclusions in writing in the actuial contract in case there are discepancies.

Anyhow, I thought this might prove to be a humorous way to generate some discussion about the issue of items that convey or not, issues that arise about what conveys and what does not, funny or maybe not-so-funny stories, and your own thoughts.

I wonder what kind of seat the sellers will leave in Toto’s place? Uh, let's hope they leave one!

Let’s Talk Trash in Carlsbad – It’s Gonna Cost You More to Get Rid of It

Happy Valentine’s Day! February 14^th is the day in Carlsbad for the public hearing to discuss the proposed solid waste rate increases over the next 5 years, proposed by the City of Carlsbad.

The new rates, if approved, will be effective on July 1 of each of the next 5 years, beginning July 1, 2012.

Residents should all have received the flyer describing the proposed changes but you can review it below and download the flyer if you like.

The City’s solid waste hauler, Waste Management, will have a new contract that includes several new or enhances services so additional funding is needed.

The following are the general improvements offered by Waste Management in the new contract resulting in the proposed higher fees:

New “green” trash trucks mean less pollution

Single stream recycling – everything in one bin

Free rolling carts for trash/recycling/yard waste

Curbside bulky item/e-waste collection

New rates will vary with the size of the bins selected, and rates are proposed to change for multi-family and commercial customers.

Carlsbad residents/property owners have the right to complete and sign a written protest of the proposed rate changes for the City Clerk on or before the close of the hearing on Valentine’s Day.

For more information, call (760) 602-4646 or visit the City of Carlsbad website.

Public Hearing

City of Carlsbad, Council Chambers

1200 Carlsbad Village Drive

Carlsbad, CA  92008

Tuesday Feb. 14 beginning at 6 pm

Del Mar Home Decorating and Remodeling Show 2012 at the Del Mar Fairgrounds Starts Today

That’s right, today is the start of the annual Del Mar Home Decorating and Remodeling Show at the Del Mar Fairgrounds in Del Mar.

The Del Mar Home Decorating and Remodeling Show 2012 runs through Sunday the 29^th and is open 10 – 6 today, 10 - 7 tomorrow, and from 10 until 5 on Sunday.

And it’s FREE!! Except you do have to pay for parking ($9) as is true of most events at the Del Mar Fairgrounds.

The theme of the Del Mar Home Decorating and Remodeling Show this year is “green” so you can expect to find a host of businesses offering environmental products.

The largest home show in San Diego, this event will showcase over 450 vendors.

If you are thinking or remodeling, or sprucing up your home, then this home show is for you! As they say in their advertising...fall in love with your home again!

Del Mar Home Decorating and Remodeling Show

Del Mar Fairgrounds

2260 Jimmy Durante Boulevard (at the Interstate 5 and Via de la Valle exit)

Del Mar, CA

And if you are thinking of buying a new Del Mar home to fix up, start your search below:

SEARCH FOR DEL MAR HOMES FOR SALE

SEARCH FOR DEL MAR BEACH COLONY HOMES FOR SALE

A Winter Walk Through the Meditation Gardens in Encinitas CA

I had a few minutes the other day while out previewing homes for several sets of relocating buyers and running errands and found myself in south Encinitas at the Self Realization Fellowship.

The Meditation Gardens are a wonderful place to take a few minutes to relax and step away from the world while strolling through these beautiful gardens that sit atop the ocean bluff. The peaks of the ocean area spectacular, as is the beauty within, and even in the dead of a Southern California winter, the Meditation Gardens offer incredible beauty and tranquility, as they are clearly intended to do.

There is even a guard who walks around to remind those who are a bit too talkative or loud and disturbing those who are there to enjoy the peace and quite, or meditate.

It's hard to believe, while there, that you are only steps away from bustling downtown Encinitas. Enjoy!!

The area adjacent to the Meditation Gardens is also a wonderful residential neighborhood with an eclectic mix of single family homes and condos, just steps away from downtown Encinitas shopping and dining, and the world famous Swami's surfing beach. Another Encinitas landmark, the Boathouses, are just down the street.

There is not a lot for sale in this immediate area typically But you can live on the bluff with fabulous ocean views just steps from Swamis and the Meditation Gardens  for about $3.6 million in a gorgeous single story 4-bedroom home. Or live on the water (bluff top) about 3 blocks to the south for $7.9+ million. Or if your budget is a bit less, you can own an oceanfront 1-bedroom condo for $689,000.

Looking for Encinitas homes for sale on the water or near downtown Encinitas? Use the links below to find that perfect home.

SEARCH FOR ENCINITAS HOMES FOR SALE

SEARCH FOR WATERFRONT HOMES FOR SALE IN ENCINITAS

SEARCH FOR TOWNHOMES FOR SALE IN ENCINITAS

Encinitas Condos for Sale at West Hampton Cove in Encinitas CA

Encinitas condo buyers – want to be close to the beach (some might even consider it walking distance?), near downtown Encinitas shopping and dining, and even get an ocean view?

Well, you can, and for under $350,000 at West Hampton Cove in Encinitas.

It’s a little hard to believe there are Encinitas condos for sale at West Hampton Cove for under $350,000 (and even under $300K) anyhow, but having this sort of proximity is pretty special.

Of course at these prices there is a trade-off, as you might expect if you have been paying attention to pricing in Encinitas.

What Happened in the Encinitas Real Estate Market in December 2011

West Hampton Cove is located just east of the 5 freeway, on a high bluff which affords some residents with distant ocean views.

But the nearby freeway means cars and trucks, which means noise.

There are 4 West Hampton Cove condos for sale in Encinitas for $325K or less, 3 of which are short sales; 1 unit (in need of some fixing) is at the edge of the bluff with ocean (and freeway) views. Yep, it’s a trade off. But it might be worth it depending on your perspective and budget. HOA fees are approximately $275/month currently.

6 West Hampton Cove condos have sold in Encinitas in the last 6 months at an average price of approximately $275,000 (99% of list price).

SEARCH FOR WEST HAMPTON COVE CONDOS FOR SALE

SEARCH FOR ENCINITAS HOMES FOR SALE

SEARCH FOR WATERFRONT HOMES FOR SALE IN ENCINITAS

SEARCH FOR TOWNHOMES FOR SALE IN ENCINITAS

4^th Annual Brasil Jazz Festa to be held February 26, 2012 in Encinitas CA

The 4^th Annual Brasil Jazz Festa 2012 will take place at the Encinitas public Library in Encinitas on Saturday February 26, 2012. Having been to all the prior concerts, I can tell you it’s great fun and the music is terrific.

Read More – Brasil Jazz Festa 2009 in Encinitas CA (check out the videos)

You can also learn more about the 4^th Annual Brazil Jazz Festa on their Facebook page.

The Brasil Jazz Festa 2012 will begin at 1:30 and last until approximately 4:15 pm.

The Festa will feature a number of San Diego notable jazz musicians/artists, including Allison Adams Tucker, the Danny Green Group, and the David Scheid Group featuring Mark Lamson.

Tickets are only $20 (and worth it) and can be reserved on-line. This is a small and intimate venue so you can really enjoy these musicians up close. And the views of the ocean in the distance aren’t too shabby.

Don’t miss the 4^th Annual Brasil Jazz Festa on February 26, 2012.

Encinitas Public Library

540 Cornish Drive

(a couple blocks east of downtown and Coast Road/Route 101)

Encinitas, CA

Animate Your Relocating Buyers’ Interest with Animoto

I specialize in relocation, as a niche market, in part because I enjoy it, but also because I’ve made 4 major moves (over 1000 miles) with kids, cars, cats, dogs, and 2 jobs, so I know how to do it well.

I’ve also worked on relocation from a corporate perspective – setting up relocation programs, relocating employees in and out, and have used a couple of corporate relocation programs through my wife’s former companies when we moved to and from Minnesota. I get it.

But the point of my thinking here is generating interest and enthusiasm with your buyers who are relocating to your area. And using Animoto to create that enthusiasm and interest.

I’ve shared a recent slide show about Cardiff-by-the-Sea that I created in Animoto below. There are several great uses of this “video”.

*       *       *       *       *       *       *

Share it via email or send the link to a buyer who is relocating to give them an overall visual perspective on the area. This will say far more than you can ever say in words in just 20 – 30 photos, and if they know little or nothing of the area, this will tell the story they want to hear. And it demonstrates your knowledge of the area.

If you don’t already have photos in your database for the community or neighborhood, spend 30 minutes one day taking a bunch of photos. I now have about 10,000 photos of various communities, neighborhoods, complexes and so much more that I can use for creating slide shows, and of course using in Localism posts.

But don’t just think of this Animoto slide show as unique to that buyer. Once you have the slide show (it acts sorta like a video but isn’t) you can use it for others who are relocating without making any changes. But if you want to add or delete some pics, or add more text, it’s simple to do in just a few minutes.

Post your slide shows on community pages on your Wordpress website. And be sure to put them on YouTube, with keyword descriptions and an appropriate website you want viewers to visit.

Use your community Animoto shows for your listings, and be sure to show a prospective seller the show that you will use to help market their home!

Use your slideshows in your posts about the larger community, and in any Localism posts that relate to the community that you create (a restaurant, things to do, market reports).

I expect you can think of some other uses, as can I. Animoto gives you the option to include a clickable URL link (button) at the end  (for the Pro version) – I suggest you do so.

Have fun and be creative!

In case you are a reader who is interested in checking out the homes in this charming seaside community of Cardiff, you can do so using the link below.

 SEARCH FOR HOMES FOR SALE IN CARDIFF BY THE SEA CALIFORNIA