REALTOR® Magazine-Daily News-4 Keys to Selling in Today’s Market

REALTOR® Magazine-Daily News-4 Keys to Selling in Today’s Market.

4 Keys to Selling in Today’s Market
Home sales and prices are still dropping around the country as huge inventories of foreclosures and short sales continue to weigh on many markets. So how can traditional sellers stand out in a crowded real estate marketplace? CNNMoney.com recently highlighted several keys to getting a home sold in a tough real estate market.

1. Cut your price by a lot. Buyers nowadays want to feel they are getting a “steal,” real estate experts say. But some sellers may be tempted to list a property above fair market value just to test out the market and see if they can get a taker. In the past year, about 25 percent of sellers who initially listed their homes too high ended up having to reduce the price, according to Trulia.com.

“The first 30 days on the market are the most important,” says Elizabeth Kamar, a real estate professional in Norwalk, Conn. That crucial time is when the home gets the most attention and showings. For sellers who aren’t realistic about the price from the get-go, they often end up with less than they would have if they priced it right initially, Kamar says.

Experts also note that if after 30 days on the market there are still no buyers, sellers may need to make a big move.

“When a property sits, people start thinking it must be listed too high,” says Ellen Klein, a real estate professional in Rockaway, N.J. She suggests making a giant price cut–as much as 10 percent of the asking price–which may be extra motivation for buyers to take a second look or attract a new pool of potential buyers seeking a lower price range.

2. Play hardball in negotiations. Sellers shouldn’t feel they have to accept any lowball offer that comes their way. However, if a buyer is willing to negotiate, that’s when sellers need to try to set aside feelings of anger or insult and start to counteroffer, says Mabel Guzman, president of the Chicago Association of REALTORS®. Guzman says the ideal is that you’ll be able to negotiate within $10,000 to $20,000 of an acceptable offer. Using incentives–such as agreeing to leave the appliances–may get buyers to budge in agreeing to a higher price.

3. Stage it. Staging is becoming popular in trying to sell mid-range homes. Professional stagers will help home owners highlight key areas of a home and often rearranges furniture or bring new furniture in, repaint, and get the home looking like it’s ripped from a catalog. Real estate brokers say that proper staging can actually speed up a sale and increase the final sales price too.

4. Get the home in front of as many buyers as possible. The real estate professional needs to get creative in the marketing to make sure the home gets a lot of attention from buyers.“The more eyeballs that get on the listing, the better,” says Katie Curnutte of the real estate information web site Zillow.com.

Pricing Strategy – Why Price your Home Properly the FIRST Time?

How to price your home when you’re ready to sell…

My pricing strategy goes like this; “a properly priced home is practically sold.”  Price trumps all other factors, including marketing approaches, home conditions, market competitiveness, and sales approach.  I’d like to be able to tell you that I do a series of mission-impossible-fancy-shmancy-knock-your-socks-off-super-top-secret-ninja moves to sell your home, but that just wouldn’t be true.  I do as much marketing as any agent can do; open-houses, web, print, etc.  But price is king and my expertise is in determining the sales price that the current market will bear.

Sell Your House!

Pricing your home at its market value gets it sold quickly, which allows you to move on with your plans without the stress and agony of dealing with what you’re leaving behind.  Some agents like to pad their listing prices, adding 5 to 10 percent, to allow room for negotiation.  Negotiating price is an expected element of today’s transactions.  But let me give you a couple reasons why that may not be the best strategy; 1) whether you realize it or not, as a seller who naturally wants the most money possible for their home, you begin to think that some of that padded amount will end up in your pocket.  I hate the be the bubble-burster, but it’s not gonna happen. 2) A padded listing creates a real pricing advantage for homes that come on the market priced at their fair market value.  A home that’s listed at market value stands out from the competition.  Compared to all the overpriced options, it strikes buyers as a rare value and leads to traffic and a high number of showings by other agents.

The goal of a CMA (Current Market Analysis) is to determine a demonstrated indication of the true current value of your home.  It’s not to develop an opinion of what we may consider a reasonable value.  We’re working with facts to arrive at an objective, accurate valuation.

If you, or someone you know, is thinking about selling a home or piece of property, email me.  At no cost to you, we’ll put together a CMA that will tell you what your home can sell for today.

I look forward to our discovery!

Happy Friday!  Enjoy this wonderful weekend.  The weather is going to be amazing, the Big Sur Marathon is in town, the Pebble Beach Food & Wine Event is rockin the Peninsula…there’s endless fun to be had.  I hope to see you around.

~ Zach

What’s Selling in Monterey; April 27, 2011

What’s selling this year in Monterey, CA?  Let’s take a look at real estate figures in Monterey, dating back to January 1, 2011…

Single-family residential homes:

• # Active: 87
• # Sold: 38
• Absorption Rate: 9.5 per month
• Current Inventory: 9 months
• Average List Price: $580,797
• Average Sales Price: $546,792 (-6%)
• Median Sales Price: $451,500
• Average Days on Market: 127

Townhouse/Condo:

• # Active: 18
• # Sold: 16
• Absorption Rate: 4 per month
• Current Inventory: 4.5 months
• Average List Price: $292,275
• Average Sales Price: $283,331 (-3%)
• Median Sales Price: $251,450
• Average Days on Market: 136

About 9 single-family residential homes are selling per month in Monterey.  Homes are selling in just under 130 days for about 6% less than their asking price.  9 months of available inventory tells us that we’re still in a buyer’s market.

Condos and townhomes seemed to be more appropriately priced, selling for only 3% less than their asking price.

WHERE is selling on the Monterey Peninsula; April 22, 2011

Monterey Peninsula, CA –

What cities have the most sales on the Monterey Peninsula?  What price points are selling?  Where is the highest “home velocity”, speed in which a home sells.  Let’s see…

	# of Sales	Average Sales Price	Average Days on Market	Winner
Carmel	79	$1,368,438.00	135	X
Monterey	43	$514,010.00	116
Pacific Grove	52	$658,910.00	138
Pebble Beach	29	$2,629,638.00	214
Seaside	81	$287,938.00	91

Carmel is my WINNER!  It comes in 2nd place in Number of Sales, has a healthy Average Sales Price, and ranks third in Average Days on Market.  The public schools in Carmel are the best in the area, and it’s just flat-out a beautiful place to live.

Carmel Beach

I know the area well.  If you or anyone you know is in need of my assistance, please contact me.

Happy Friday!  Have a wonderful weekend

~ Zach

* Figures above are reflective of single-family residential sales over the past 6 months (October 22, 2010 – April 22, 2011)

Escrow, Part 2 – Impartialty & Escrow Instructions; April 20, 2011

Escrow, Part 2 – Impartiality & Escrow Instructions:

Impartiality – An escrow officer must remain completely impartial throughout the entire escrow process.  He or she will normally adopt a courteous but rather formal manner when dealing with parties to the escrow, keeping conversation to the matters at hand in the escrow.  This formal behavior is meant for the benefit of all concerned, since the escrow officer must follow the mutual instructions of both parties without bias.

Escrow Instructions – Escrow instructions are written documents, signed by the parties giving them, which direct the escrow officer in the specific steps to be completed so the escrow can be closed.

Typical instructions include the following:

• the method by which the escrow holder is to receive and hold the purchase price to be paid by the buyer.
• the conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
• the instruction and authorization to the escrow holder to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
• instructions as to the proration of insurance and taxes.
• instructions to the escrow holder on the payment of prior liens and charges against the property and distribution of the net sale proceeds.

Since the escrow holder can only follow the instructions as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.

What’s Selling on the Monterey Peninsula?; April 18, 2011

Monterey, CA –

We are three-and-a-half months into the year (2011).  Everyone is sitting on the edge of their seat, anticipating a perspective; some sort of idea as to where we are in this economic roller coaster.  The housing market plays a huge roll in our position.  I try to share information in this blog that helps you get a feel for where you can position yourself on your seat…on the edge or comfortably against the back-rest.

Monterey Peninsula

Today I’m reporting the status of single-family residential real estate sales year-to-date on the Monterey Peninsula (Carmel, Monterey, Pacific Grove, Pebble Beach).  Comparing the same time period in 2010 to 2011 is a nice way see where we were and where we’re going.  As you can see below, inventory is up 26%, number of sales is down 29%, Foreclosures are up 26%, Short Sales are up 47%, average and median sales prices have remained steady, and average days on market (DOM) has increased by 13%.

	2010	2011	%Difference
New Listings	322	435	26%
Sold Listings	148	115	-29%
Foreclosed Listings	31	42	26%
Short Sale Listings	31	59	47%
Avg Sales Price	$1,237,553	$1,245,040	1%
Median Sales Price	$797,500	$800,000	0%
Avg DOM	114	131	13%

Top to Bottom – Pebble Beach, CA; April 12, 2011

Pebble Beach, CA – from the top of the real estate market to where we are now (the end of 2010)…

 

Pebble Beach, CA - Real Estate Market Trends, 2000 through 2010

 

Pebble Beach is a highly desirable location to live.  Lot sizes are large, averaging 9,000 square feet.  It’s a gated community, 5 guard gates located around the perimeter.  The golf courses and the events played on them have brought Pebble Beach prestigious worldly recognition.  Many Pebble Beach homesites have incredible ocean views, there are hot spots above the occasionally foggy coast, there are wooded areas, there are country clubs, and boarding schools, and walking trails.

One may call Pebble Beach an isolated market due to these unique features, but the statistics show that Pebble Beach real estate has followed similar trends to that of other locations.  There are incredible values in Pebble Beach right now.  Building and remodeling property is less convoluted than other cities on the Monterey Peninsula due to the Pebble Beach Company water allowance and straight forward building requirements.

The graph above, translated in the figures below, show that the peak of the pricing market in Pebble Beach was in 2007.  The highest volume of sales occurred in 2000.

Review the numbers, consider living in Pebble Beach, call me to have a discussion.  Pebble Beach is a wonderful place.

Number of Closed Sales:

• 2000 (peak) = 135
• 2010 = 75
• Difference = -45%

Total Sales Volume:

• 2000 (peak) = $265,004,654
• 2010 = $159,179,850
• Difference = -40%

Average Sales Price:

• 2007 (peak) = $2,702,384
• 2010 = 2,122,398
• Difference = -22%

Median Sales Price:

• 2007 (peak) = $2,312,500
• 2010 = $1,100,000
• Difference = -53%

Now (2010) vs. the most recent Peak of the Real Estate Market – Carmel; April 7, 2011

 

Carmel, CA; Annual Real Estate Sales Figures

 

Carmel, CA –

Real estate markets are cyclical.  Historically, an entire cycle lasts 15 years.  In Carmel, we saw our peak 7 years ago in 2004 and 2005.  We are at the bottom of the trough, seeing current figures that resemble those of 2002 and 2003.

There were drastic increases in the market environment in 2004, which led to fearfully inflated market conditions from 2005 through 2007.  A steep decline in real estate ensued, leaving us in our current market, which I expect to last for a couple more years.

It’s a great time to buy, but also a good time to sell for those who’s needs have changed and who still have some equity in their current property.  You may be selling low, but you have the opportunity to buy lower, getting more for your money.

Number of Closed Sales:

• 2004 (peak) = 269
• 2010 = 167
• Difference = -38%

Total Sales Volume:

• 2005 (peak) = $435,718,251
• 2010 = 221,469,840
• Difference = -49%

Average Sales Price:

• 2005 (peak) = $1,962,694
• 2010 = $1,326,166
• Difference = -32%

 

Monterey Peninsula Real Estate – Where are we now? April 6, 2011

Monterey Peninsula Real Estate – Where are we now?

Below is a graph that shows us where our real estate market is now and where it has been over the past 10 years (2000 through 2010).  Each graph is for a particular city, including figures for single-family residential homes in Carmel, Monterey, Pacific Grove, Pebble Beach, and Seaside.  We follow the number of home sales, the average home sale price, median home sale price, and the average days on market (DOM).

The variables indicated, help us see where we are at right now, what we can expect to purchase a home for, and how we can reasonably price our home for sale.  For example, if my home was worth $1,000,000 in 2005 and the median sales price has decreased by 25% since 2005, then with all else remaining the same, I can expect to receive about $750,000 for my home today.   On the same, and more encouraging, front, if a home that I want to buy was purchased for $1,000,000 in 2005 and the median sales price of homes in the area has decreased by 25%, then I know that $750,000 is a reasonable asking price from the seller.

Carmel:

 

Carmel, California Real Estate Market Trends; 2000 - 2010

 

Monterey:

 

Monterey, California Real Estate Market Trends; 2000 - 2010

 

Pacific Grove:

 

Pacific Grove, California Real Estate Market Trends; 2000 - 2010

 

Pebble Beach:

 

Peabble Beach, California Real Estate Market Trends; 2000 - 2010

 

Seaside:

 

Seaside, California Real Estate Market Trends; 2000 - 2010

 

The line graphs above show us where the real estate market on the Monterey Peninsula is today and where it has been over the past 10 years.  I have the same statistics, including more detailed figures, in a spreadsheet format that I can EMAIL TO YOU UPON YOUR REQUEST.

Please enjoy this information and don’t hesitate to contact me to discuss it further.  I look forward to your inquiries, our discussions, and helping you and your friends with your real estate needs.

~ Zach

Quarterly Report – Q1, 2011

Monterey Peninsula Quarterly Real Estate Report – Q1, 2011

What’s Selling?

Welcome to The Goldman Report, Q1!

Below I have provided statistics about real estate that has sold on the Monterey Peninsula in the first quarter of 2011.  In gathering these figures, I included the cities of Carmel, Monterey, Pacific Grove, Pebble Beach, and Seaside.

As you can see, Traditional Listings still outnumber Distressed Listings (Foreclosures and Short Sales) by 5 to 1.  Traditional sales versus distressed sales came out 3 to 1, respectively.  Total home sales are up 3% from Q4 of 2010 and are up 26% from Q1 of 2010.  The highest number of homes have sold in the $300,000 to $500,000 price range, but the shortest average Days on Market is in the $700k to $1M price point.  Interest rates have risen and fallen over the last few months, but remain steady around 5% for a conventional 30-year fixed.

Thank you for taking the time to read my report.  Please don’t hesitate to reply with questions about the information that I’ve presented or requests for more detailed information on your city of choice.

	Q1 Market Report
	Monterey Peninsula
	New Foreclosures				52
	New Short Sales				56
	New Traditional Listings				248
	Total New Listings				356
	Foreclosures Sold				43
	Short Sales Sold				34
	Traditional Sales				117
	Total Sold				194
	# of Cash Purchases				52
	Total Homes Sold Q1 2011				194
	Total Homes Sold Q4 2010				188
	Total Homes Sold Q1 2010				143
					Homes Sold			Avg DOM
	below $300k				40			101
	$300k – $499k				46			103
	$500k – $699k				37			141
	$700k – $999k				25			98
	$1M – $2M				29			138
	$2M – $4M				12			186
	$4M +				5			180

My Goal…

My goal is to be your real estate expert.  I am here to help you and your friends with all of your real estate needs; including but not limited to the sale, purchase, and financing of a home.  I study market conditions closely and together we can construct a marketing and price plan that will get your home sold in a reasonable time frame.  Whether it be for investment or residence, I can help you analyze location, pricing, and product in order to find the best property available.

Have a wonderful Spring and I look forward to our next conversation.

~ Zach

Fast Facts about Homes For Sale in Pebble Beach, CA; March 30, 2011

Below you will find quick statistics on the number of homes for sale in Pebble Beach, the average list price of homes in Pebble Beach, the average home/lot square footage of homes for sale in Pebble Beach, the number of golf course properties for sale in Pebble Beach, and the number of ocean view properties for sale in Pebble Beach.

Please let me know if there are any figures that you would like me to provide you with.  I am happy to do so.

1.  Number of Single-Family Residential Homes For Sale in Pebble Beach – 106

2.  Average / Median (respectively) List Price for Homes in Pebble Beach – $3,437,707 / $2,222,500

3.  Average Building / Lot (respectively) square footage of Homes for sale in Pebble Beach – 3,810 / 34,730

4.  Number of Golf Course Properties for sale in Pebble Beach – 49 (click here)

5.  Number of Ocean View Properties for sale in Pebble Beach – 70 (click here)

~ Zach

 

Pebble Beach, CA - amazing golf and ocean views

 

 

What’s Selling in Carmel, CA; March 28, 2011

Carmel, CA –

What a beautiful weekend in Carmel.  We saw torrential downpours on Friday and Saturday, and were graced by the sunshine on Sunday.

Carmel Beach Beauty, Saturday, March 27th

54 homes have sold in Carmel since the beginning of the year.  That’s approximately 18 homes per month.  There are currently 145 homes for sale in the same area.  With an average of 18 homes selling per month, there’s 8 months of inventory available at the end of March versus the 10 months of inventory that we had at the end of February.

February is traditionally one of the slowest months of the year in Carmel.  Real estate sales have rebounded nicely in Carmel during the month of March.  The average sales price was $1,179,880.  This is 8% below the average asking price of $1,279,312.  The median sale price was $975k, 11% below the median asking price of $1,089,000.  The avg DOM (days on market) was 131 days, and the average PPSF (price per square foot) for homes sold in Carmel was just above $700.

I expect that sales trends will continue to improve through Spring and into the Summer.  I am seeing a lot of construction trucks throughout the neighborhoods of Carmel lately, telling me that people are buying and improving again.  This is great for the area!

Please feel free to share your thoughts or questions below.  I look forward to our discussion.

~ Zach

What’s Selling in Pacific Grove, CA; March 25, 2011

Pacific Grove, CA –

37 homes have sold in Pacific Grove since the beginning of the year.  That’s approximately 12 homes per month.  There are currently 70 homes for sale in Pacific Grove.  With 12 homes selling per month, PG has just under 6 months of inventory.  This is VERY exciting news for the area.

As I’ve shared before, 6 months of inventory is an indicator of a neutral real estate market.  Below 6 months is a sign of a “seller’s market“, above 6 months tells us that we’re in a “buyer’s market.”

For the first time since the first quarter of 2008, the Pacific Grove real estate market appears to stepped over the hump into “Sellersville.”  The market is still very delicate though.  Homes that are not priced properly sit on the market unsold until the seller is willing to adjust the price as necessary to attract today’s savvy buyers.

Here’s why I believe that Pacific Grove is seeing such progress in its real estate market: 1) It’s a great place to visit.  2) It’s scenery is beautiful. 3) Its people are friendly. 4) Its schools are great. 5) Its homes are priced affordably. 6) Its a great place for a family, for empty-nesters, for retired couples, and for tourists.

Pacific Grove fits right in between the lack of a high-quality school district in Monterey and the presence of a high-quality price point in Carmel, making it the perfect place for many people.

The average sales price of the homes that have sold since the beginning of the year is $643,238.  This is almost 97% of the average asking price, which was $665,917.  The median sales price for these homes is $$535k, versus a median asking price of $550k.  Again, a measly 3% difference.  DOM (average days on market) for the homes sold in Pacific Grove this year is 154.

In conclusion, the hot market in Pacific Grove are homes that are priced between $500k and $700k.  Such homes are selling in just over 5 months.

Please feel free to share your thoughts or questions below.  I look forward to our discussion.

Happy Friday!  Finish the week up strong and have a wonderful weekend!

~ Zach

What’s selling in Pebble Beach, CA; March 23, 2011

Pebble Beach, CA -17 single family residential properties have sold in Pebble Beach since the beginning of the year.  Only 1 of these properties closed in the last week.  These properties in Pebble Beach have sold for 88% of their asking price on average.  The average days on market is 183.

Pebble Beach, California...golf, ocean, forest, beauty

There are currently 102 homes for sale in Pebble Beach.  With an average of 6 homes closing per month in Pebble Beach, the area has over 17 months of inventory.  This is a huge sign that it’s TIME TO BUY IN PEBBLE BEACH!

Some homes are selling for less than what it would cost to build the structure on the property.  This means that the land is receiving very little value, if any, in the price.  A few of Pebble Beach’s strongest attributes are its average lot size of 9,000 sf, gated community providing security, ease of building due to straight-forward planning and development requirements, and the world-renown beauty of the area.

Our team is highly knowledgeable about Pebble Beach and excited to help you find the home that you’re looking for.

Enjoy the pitter-patter of the rain…it’s a beautiful sound.

~ Zach

Featured Listings; March 21, 2011

The list below is 9 of our featured properties for this week.  You can view details on each property by clicking on the address below, visiting www.ZachGoldman.com, or viewing all of our team’s listings at www.HomesofCarmel.com.  I will post our Open House schedule at www.ZachGoldman.com every Friday morning for your convenience.  Please don’t hesitate to contact me with questions, comments, or requests.

1.  44 Spanish Bay Circle, Pebble Beach

–  3 bed / 3.5 bath; 3400 sf; golf course property

2.  23 Spanish Bay Circle, Pebble Beach

–   3 bed / 3.5 bath; 3600 sf; golf course property with ocean views

3.  61 Companion Way, Pacific Grove

–  3 bed / 2 bath; 1173 sf; close to beach and downtown

4.  3179 Palmero Way, Pebble Beach

–  5 bed / 4.5 bath; 6000 sf; French Country living at its finest

5.  1113 Arroyo Drive, Pebble Beach

–  3 bed / 3.5 bath; 3560 sf; movie theatre, on the golf course

6.  6 SW of 8th on Santa Fe, Carmel-by-the-Sea

–  3 bed / 2.5 bath; 1588 sf; newly remodeled, close to downtown Carmel

7.  3243 Camino Del Monte Street, Carmel

–  8 beds / 6.5 baths; 6400 sf; 3 living areas, lots of space

8.  NE corner of Torres St & 5th, Carmel-by-the-Sea

–  3 beds / 2 baths; 1780 sf; duplex, income opportunity, walking distance to downtown Carmel, easily convertible to single-family residence

9.  2877 Sloat Road, Pebble Beach

–  3 beds / 2 baths; 1327 sf; great value in gated community of Pebble Beach

What’s Selling in Monterey; March 21, 2011

Monterey, CA

Fisherman's Wharf from the Recreation Trail

87 single-family residential properties have sold in Monterey over the past 6 months.  The average sales price is $752,171, 8% below the average asking price of $813,231.  Homes are selling in 153 days, on average. 

There are currently 125 single-family homes for sale in Monterey.  An average of 14 properties are selling Monterey per month.   This means that we have 9 months of inventory, indicating that we’re still in a buyer’s market in Monterey.  6 months of inventory indicates a neutral market.  Over 6 months is a buyer’s market, under 6 months is a seller’s market.

Enjoy the longer days!  I’m definitely going to play some golf this week.

~ Zach

Real Estate Market Matters; March 18, 2011

Real Estate Market Matters –

Home prices drop in February
Following three months of sales gains, California home sales posted a weaker-than-expected performance and declined in February, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The statewide median price of an existing, single-family detached home sold in California also declined in February.
MAKING SENSE OF THE STORY
• Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 497,660 in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.
• February’s sales were down 9 percent from January’s revised pace of 547,080 units, and down 4 percent from the 518,390 sales pace recorded in February 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
• The median price of an existing, single-family detached home sold in California in February declined 2.8 percent to $271,320, from a revised $279,140 in January, and was down 2.5 percent from the $278,190 median price recorded for February 2010. The February 2011 median price was the lowest since May 2009, when it was $263,440.
• “The market pulled back in February, following three months of sales gains, when the ramifications of the robo-signing delays from last fall pushed sales into the period from November of last year to January,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “February’s sales drop indicates the effects of the foreclosure freeze are diminishing, and the market is returning to a more moderate sales pace.”
• C.A.R. has posted median prices, unsold inventory stats, sales figures, time on market data, and more by county and region. To view this information, visit http://www.car.org/newsstand/newsreleases/feb2011salesprice/.
Read the full story:
http://www.pasadenastarnews.com/business/ci_17619755

In Other News… San Francisco Chronicle
Average rate on 15-year mortgage dips below 4 percent
Fixed mortgage rates tumbled this week and the 15-year loan dipped below 4 percent for the first time in three months.
Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/03/17/national/a070205D58.DTL The New York Times
A red flag on reverse mortgages
It is the saddest of paradoxes: A government-backed financial maneuver intended to free up extra money for struggling older people turns out to have left some widows and widowers on the brink of foreclosure.
Read the full story:
http://www.nytimes.com/2011/03/12/your-money/12money.html?ref=realestate Los Angeles Times
Home improvements can be funded but options are limited
The home-improvement sector, already benefiting from spending on rehabilitating foreclosed properties, can be expected to get an even larger boost in the coming months from owners who have deferred maintenance during the recession, and newly minted empty nesters who want to turn bedrooms into home offices.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-lew-20110313,0,7006590.story

The New York Times
More loan-modification options for the “underwater”
Struggling homeowners who owe more on their mortgages than their properties are worth have had few options to restructure their loans, but that may soon be changing for a few of them.
Read the full story:
http://www.nytimes.com/2011/03/13/realestate/13Mortgages.html?ref=realestate Los Angeles Times
Passing the test on canceled mortgage debt has tax rewards
With hundreds of thousands of homeowners having negotiated loan modifications or short sales or been foreclosed upon during the past year, the Internal Revenue Service has issued fresh guidance on how to handle canceled mortgage debt in the upcoming tax season.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-harney-20110313,0,6669801.story The New York Times
A swift deal may not be a sound one
One crucial reason the nation’s mortgage industry ran itself – and the entire nation – off the rails was its obsession with speed. Mortgage had to be approved chop-chop, loans pooled instantly. When it came to foreclosure, well, the quicker the better. So it is disturbing that the same need for speed is at work in the bank settlement being devised by state attorneys general relating to improper loan-servicing and foreclosure practices.
Read the full story:
http://www.nytimes.com/2011/03/13/business/13gret.html?ref=realestate Los Angeles Times
Bank of America offers mortgage relief for military
Bank of America, the nation’s largest bank, announced new initiatives intended to keep military families from losing their homes to foreclosure.
Read the full story:
http://latimesblogs.latimes.com/money_co/2011/03/bank-of-america-will-take-further-steps-for-military-families-facing-foreclosure.html

What you should know about the market:
• As home prices decline, mortgage rates rise, and more uncertainty about the housing market abounds, more would-be home buyers are opting for rentals. However, new costs associated with renting – not to mention the increase in rents – is making renting less than the bargain it appears.
• For former homeowners, renting often means living in a smaller space – which means larger furniture and non-essential items often end up in storage. At one popular storage facility, the popular 100-square foot unit can cost up to $270 per month, depending on location.
• Anecdotal evidence suggests that more landlords are requiring tenants to sign up for renter’s insurance, according to the Insurance Information Institute. A typical policy covers a tenant’s possessions and pays for hotel stays and additional living expenses in the event a rental is destroyed or seriously damaged. Premiums usually range between $100 and $300 per year, and vary based on location and amount of coverage.

What’s selling in Carmel, CA; March 17, 2011

Carmel, CA –

Below is a list of the number of single-family residential properties that have closed escrow in Carmel since the beginning of 2011.  I’ve broken down the numbers into 6 separate and distinct categories.

Under $500,000: 1 

$500,000 – $799,999: 14 

$800,000 – $999,999: 9

$1,000,000 – $1,999,999: 17

$2,000,000 – $3,999,999: 6

$4,ooo,ooo+: 0

The numbers above indicate that the most popular price point in Carmel so far this year is between $1,000,000 and $2,000,000.  62 of 142 properties currently for sale are listed in this popular price range.  There are currently about 9 months of inventory for homes between $1 million and $2 million in Carmel, California.

Enjoy the sunshine!

~ Zach

Escrow, Part 1 – What is escrow, What happens in escrow, and Who may hold escrows?

Escrow in Real Estate –

What ~ An escrow is an arrangement in which a disinterested third-party, called an escrow holder, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s mutual instructions.

People buying and selling real estate often open an escrow for their protection and convenience.  The buyer can instruct the escrow holder to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions.  The seller can instruct the escrow holder to retain possession of the deed to the buyer until the seller’s requirements, including receipt of the purchase price, are met.  Both rely on the escrow holder to carry out faithfully their mutually agreed upon instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.

An escrow is convenient for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments and funds, deeds and many other items, using the escrow holder as the central depositing point.  If the instructions from all parties to an escrow are clearly drafted, fully detailed and mutually consistent, the escrow holder can take many actions on their behalf without further consultation.  This saves time and facilitates the closing transaction.

Who ~ The escrow holder is a disinterested third-party (although some states require that certain escrow holders be licensed.)  There are two important reasons for selecting an established, independent escrow firm, an attorney, or an escrow officer with a bank, S&L, or title insurance company.  One is that real estate transactions require a tremendous amount of technical experience and knowledge to be handled smoothly.  The other is that the escrow holder will generally be responsible for safe-guarding and properly distributing the purchase price.  Escrow officers with established firms generally are experienced and trained in real estate procedures, title insurance, taxes, deeds and insurance.

What’s Selling in Pebble Beach, CA; March 15, 2011

Pebble Beach, CA – 15 single-family residential properties have sold in Pebble Beach since the beginning of the year.  The average sales price was $3,453,200.  The average list price was $3,931,400.  This is an 87% achievement rate.  Achievement rate is the percent of asking price that is achieved upon sale.

The highest priced property sold was $8,408,000, lowest priced was $900,000, median price was $3,000,000, the PPSF (average price per square foot) was $801.43, and the DOM (average days on market) was 208.  With 104 single-family homes currently active in Pebble Beach, and although 1.5 months is too short of a time period to give us a accurate figure, we’re currently looking at an attrition rate of 10.4 months.  This means we have about 10 months of inventory in Pebble Beach.  6 months of inventory is considered a balanced market.  Above 6 months puts us in a “buyer’s market” condition.

Feel free to post any comments or questions.  I look forward to your input.

~ Zach

Weekend Real Estate Results in Carmel, CA; March 14, 2011

Carmel, CA – 1 new property came on the market over the weekend.  It’s a spectacular hand-crafted home with amazing ocean views.  It has 2beds/2.5baths, 2436 square feet on a 6400 square foot lot.  The asking price is $5,495,000.  2 properties sold in Carmel over the weekend.  A Spanish Style Carmel home had an original asking price of $2,295,000 and sold for $2.1M, 8% below asking price.  The other home is a property on San Carlos that could use some updating.  Original asking price was $795k, and it sold for $775k, 2.5% below original asking price.

Homes sold in Carmel over the past 60 days (35) have sold, on average, for 8.5% below asking price.  This figure gives you a good idea of where you may want to start your offer on a property.  If you start at 15% below asking, you are likely to wind up somewhere in the middle when negotiations are through.

Have a wonderful week!  If you don’t love what you’re doing, do something else.

~ Zach

This Weekend’s Open House Schedule

Saturday, March 12th, 2-4pm:

 

2877 Sloat Road, Pebble Beach ~ $895k, 3bd/2ba

 

Sunday, March 13th, 2-4pm:

 

NE Corner of Torres St. and 5th Ave, Carmel-by-the-Sea; 4bed/3bath; DUPLEX; $1,295,000

 

 

Pacific Grove – Market Peaks and Pitfalls

Pacific Grove, CA – A common question that a Realtor is asked is “are we at the bottom?”  Almost as commonly, I get asked, “when was the peak of the real estate market?”  So today, and for the next couple days, I’m going to share some information about the Peaks and Pitfalls of the real estate market on the Monterey Peninsula.

Rather than generalizing the information I provide, which can be deceiving due to our unique micro-climates, I’m going to separate my reports by city.  In order to adequately answer the two questions proposed in the preceding paragraph, I have to offer insight on a couple different variables.  In answering the questions, we must know if we’re referring to sales volume (the total dollar amount of homes sold), sales price (the dollar amount of each home sold), or total number of sales.  So I’m going to provide 4 figures: 1) Total Sales Volume, 2) Average Sales Price, 3) Median Sales Price, 4) Number of Homes Sold.

Today we will focus on single-family residential property Pacific Grove over the past 10 years.

 

Pacific Grove, CA; 2000 – 2010; Real Estate Statistics (MLS results, 3.11.11)

The number of closed sales is an indicator of how active our real estate market is, how many people are interested in buying and selling property in our area.  The chart above shows us that the peak in the number of closed sales of single-family residential homes in Pacific Grove was in 2003, with 191.  That number decreased from 191, to 172, to 145, to 111, to 98 over the next four years, until finally bottoming out in the 5th year at 94 sales in 2008.  The difference between 191 sales in 2003 versus 94 sales in 2008 is a 51% decrease.  The number of sales jumped from 94 in 2008 to 118 in 2009 and 129 in 2010.  This is an increase of 21% and 9% respectively, following the “pitfall” year of 2008.

Average and Median Sales Prices of real estate are indicators of the value of real estate in our area.  Average and median sales prices appear to be directly related when studying the graph above.  These figures topped out in 2005 at a median sales price “peak” of $882,500, and an average sales price “peak” of $1,044,438.  It will difficult to tell until we have 2011 and 2012 results, but it seems that Median Sales Prices “pitfalled” in 2009 at $603,750.  This is a 32% decrease from the peak in 2005.  There is an increase of just over 4% in median sales price from 2009 to 2010.

Average sales price appears to still be descending, although if the past 10 years are a good indicator of what is to come, I expect the average sales price to rebound along with the median sales prices in 2011.  Average sales price in Pacific Grove “pitfalled” in 2010 at $703,230.  This is a 33% decrease from the peak in 2005.

 

Pacific Grove, CA - Total Sales Volume, 2000 - 2010 (MLS results)

The line-graph above shows the flow of Total Sales Volume (US Dollars) in Pacific Grove from 2000 through 2010.  It took 4 years to get from a low of $73,508,644 in 2001, to a high of $151,443,551 in 2005 (52% increase).  And 3 years to slide back down to $79,207,460 in 2008 (48% decrease).  We saw an increase of 8% and 6% respectively over the next two years, through 2010.

In summary, 2005 was the “Peak” in Pacific Grove and 2008 was the “Pitfall.”  It looks like things are on the rise.  Some people are speculating a second dip in the market.  I believe that 2011 and 2012 are very important years for real estate on the Monterey Peninsula.  There is a limited supply of homes here, which differentiates us from places such as Las Vegas and Arizona.  But the macro-outlook of the economy still has an effect on our market.

Please don’t hesitate to share your thoughts or questions.  And as always, if you know anyone who could use my assistance in selling their home, please let me know.

Happy Friday!

~ Zach

Current Market Comments – Monterey, CA; March 9, 2011

Monterey, CA – Today we’ll focus on single-family residential property in Monterey.  The information provided below excludes condos, town-homes, etc.

5 new sfr properties have come on the market in Monterey since last Wednesday.  The average list asking price is $735,600, with a high of $1,499k, a low of $350k, and a median of $550k.  My BEST BUY pick is the home priced at $550k.  It’s a 3bed/2bath home located in the family-friendly neighborhood called Fisherman’s Flats.  The home is over 1,300 square feet on an 8,000 square foot lot (according to the MLS).  This neighborhood was developed in the 1960’s and this particular home has an updated kitchen.  It’s located to one of the best elementary schools in Monterey, Foothill Elementary, and nearby roadways provide easy access into Monterey or Salinas via Highway 68.

Only 1 property has closed in Monterey over the past week.  The original asking price on the is property was $289,900 and it closed at $235k.  This is a 19% decrease.  This was a classic case of an overpriced property.  It was bank-owned, the previous owner stopped in the middle of their remodel, and there was much work left to be done.  In the neighborhood that this home is located, there’s no way that an unfinished home under 800 square feet should be priced over $250k under the current market conditions.

What do you think of my posts?  Is there anything that you would like that I’m not providing?  Maybe more pictures, or more graphs, or different statistics, or more BEST BUYS.   Please don’t hesitate to comment, give me feedback on what type of information you would like to see.  I do this every morning and my goal is to provide useful information to those interested in real estate on the Monterey Peninsula.  I look forward to hearing from you.

http://www.ZachGoldman.com

Also, please take a look at my website when you have a moment (www.ZachGoldman.com).  I’ve integrated a full MLS search with email notifications, map search, community information, and much much more.  I would love some feedback on this as well.  What would you like to see that’s not there?  Play with it for a while, then send me a comment and let me know what you think.  You can even translate the information into different languages such as Italian, Spanish, Japanese, Portuguese, and more.

Have a wonderful Wednesday!

~ Zach

Current Market Comments – Monterey, CA; March 8, 2011

Monterey, CA – 7 new properties have been listed in Monterey since last Tuesday.  All of them are still active.  There are 5 single-family residential properties, 1 condo, and 1 duplex.  The average list price of these properties is $625,000.  The highest priced property is $1,499,000 and the lowest is $350k.  I don’t see any fantastic deals in the bunch, but we’ll track them to see if the prices come down.

Whales of Monterey Bay

1 property, a semi-update fixer on Dela Vina, closed at $235k, only 2% off the initial asking price.  4 more properties in Monterey are scheduled to close today.  We’ll see what happens.

It looks like the sunshine is out today…enjoy!  And don’t forget to contact me if you know anyone who could use my assistance or if you have any real estate questions.

~ Zach

Current Market Comments – Carmel Valley & the Salinas Monterey Highway (the Sunbelt Regions); March 7, 2011

Carmel Valley & the Salinas Monterey Highway –

These two locations, located 5-20 miles inland from Monterey Peninsula, are traditionally the sunnier, warmer location in the area.  Lot sizes tend to be larger, horse property is common, and more of a rural setting can be enjoyed.  John Steinbeck wrote about this area in his short story cycle, “Pastures of Heaven“, which was published in the early 1930’s.  The land between Highway 68 and Carmel Valley Road is still commonly referred to as the “Pastures of Heaven.”

 

Pastures of Heaven

 

 

11 new properties have come on the market in this region in the past 7 days.  1 property, priced at $399k, is already in escrow.  The average asking price for these properties is $1,166,230, with a high of $2,895k, and a low of $210k for a small condo near Toro Park.  The median value of these 11 properties is $921,200.

5 properties have closed escrow in the last week in the same areas.  The average sale price was $490,250 versus and average list price of $524,667.  That’s a 7% decrease in achieved sales price over asking price.  The highest sales price of these homes was $975k, while the lowest purchase price was another condo by Toro Park, acquired for $240k.

Have a wonderful Monday, keep moving forward by taking one intentful step at a time.  And if you know anyone who could use my assistance, please let me know.  I would love to be helpful!

~ Zach

Current Market Comments – Pacific Grove, CA; March 4, 2011 + Pricing Tips

Pacific Grove, CA – 4 new properties have come on the market in Pacific Grove since last Friday.  One on Eardley, priced at $445k, has already gone into escrow.  8 properties are scheduled to close escrow by today, 5 of which have already closed, 3 more to close by days-end.  The average sales price of the closed properties is $932,500, with a high of $1,775,000, a low of $535,000, and a median of $710,000.

Pacific Grove, CA Coastline

Absorption rate is the number of units that will be sold over a particular period of time.  The absorption rate in Pacific Grove, calculated over the past 6 months, is 10 1/3.  The months’ supply of homes can be calculated by dividing the absorption rate into the current number of active listings.  There are currently 108 active properties in Pacific Grove.  So the current monthly supply is (108 / 10.33 = 10.5) 10.

Pricing of real estate is largely dependent upon supply and demand.  6 months of supply is considered a neutral market.  Less than 6 months of supply is a seller’s market, and more than 6 months of supply is a buyer’s market.  Being that there’s currently 10 months of supply in Pacific Grove, we are told that it is still a great time to buy.

If you know anyone who could use my help pricing their home or figuring out an appropriate price for a home in the market which they’d like to buy, please let me know.

Happy Friday!

~ Zach

www.ZachGoldman.com

Current Market Comments – Monterey, CA; March 2, 2011

Monterey, CA – 8 new properties have come on the market in Monterey since last Wednesday.  Escrow has closed on 10 properties in the same time frame.  8 new properties to 10 new sales is a good ratio, indicating a healthy absorption rate in Monterey.

Of the 8 new listings, one home priced at $295,000, has already gone into escrow.  The average listing price of these homes is $512,600, with a high of $699k, a low of $295k, and a median price of $555k.

My BEST BUY pick is a fixer on Major Sherman Lane.  My old piano teacher lived in this home for over 60 years.  It’s got a lot of personality and makes for a nice template.  It’s zoned commercial and has a good amount of water available, so it could be converted to an office building if desired.  But I like it as a Spanish Adobe with a welcoming entryway.

 

Spanish Adobe Style Remodel Potential

5 of the 10 properties closing escrow by March 2nd have posted on the MLS.  The average sales price of these 5 properties is $495,180.  The high is $899,900, low is $336k, and the median sale price is $415k.  The average days on market is 161, but this figure is pulled up drastically by a property on West Franklin that was on the market for 670 days.  Without this outlier, the DOM is 34 days.  This is another sign of a fast paced market for homes that are priced correctly.

Have a wonderful Wednesday Hump Day!  And please let me know if there’s anyone you know who may benefit from my knowledge about real estate.

~ Zach

 

Current Market Comments – February 2011 vs 2010

February 2011 vs 2010 – Real Estate Market comparisons

The Monterey Peninsula is comprised primarily of 9 cities.  Below is a table displaying Real Estate statistics and comparisons for Single-Family Residential properties in these 9 cities.  The statistics included are Number of Properties Sold, Average Sales Price, Median Sales Price, and Average Days on Market.  You may be interested in different parts of the table, depending on what your real estate goals are.  For instance, if you are an investor, you may be interested in DOM (days on market) and Median Sales Price, which would give you an idea of what price point is selling in what area and how quickly.

 

Monterey Peninsula Real Estate Figures 2011 vs 2010

Please feel free to contact me to discuss this data or to request information that I may not have included.

This is the last month of Q1 2011.  Let’s make it a great one!

~ Zach

Real Estate Tips – 3 things to consider when selling your home

3 Tips for selling your home:

1. Price your home right – know what comparable homes in the same neighborhood have sold for recently, know the trend of the market so you can decide how aggressively to price your home.

2. Consider a pre-sale inspection – lets you know what items need to be fixed before you put your home on the market. This is better than making concessions during the contract negotiation phase because concessions based on needed repairs or upgrades often cost more than completing the fixes before putting your home on the market.

3. Consider all offers – a lower offer from a buyer with solid financing is always better than a higher offer from a buyer who’s financing falls through. And a lower offer may be better than a higher offer that comes with more conditions. Make sure you take the entire offer into consideration when determining which offer is best for you.

For more tips on making the most of the sale of your home, talk to your local real estate professional, Zach Goldman.

Will it snow in Monterey today like they say it’s going to? Have a wonderful weekend!

~ Zach