Things are really heating up in the real estate market in San Diego. Encountering multiple offer situations is not uncommon these days, especially with properties that are priced well and are in good condition. So, is it a seller’s market?

To answer the question we need to divide the market into attached and detached homes.

Attached homes: In the attached market many areas of San Diego are officially in the seller’s market territory. What does this mean? It means that sellers are receiving multiple offers, prices are going up, and sellers are able to often drive prices higher and pick their choice of offers. This means that buyers do not have as many opportunities to submit lowball offers, even when they would realistically pay more but want to “feel the waters.”

Of course, long gone are the days of severely inflated prices, but I will take a thorough look at comparable sold properties, and advise my clients to stay as close as they can to those numbers (assuming the properties are similar to the one on which they are placing an offer). Slight increases from the comps are definitely justified, as the market is trending upwards in many developments.

Overbidding is often something a buyer may want to do to secure getting their offer accepted, and as a listing agent I have received multiple offers sufficiently over the asking price. However, as much as I would like my sellers to get the highest price possible for their home, when I doubted that the offered price would survive an appraisal I counseled my sellers to choose not the highest offer, but the one most likely to close (cash offers first, and then loans with very qualified buyers and nice downpayments). So, it is not just about the numbers, but buyers DO have to be aware that if they truly want a certain property they need to present their highest and best offer in today’s attached home market.

Detached homes: Detached homes are still in the buyer’s market category here in San Diego in most areas, but in reality it depends on the area, inventory and price range. In most north county coastal cities, such as Carlsbad, Encinitas and Solana Beach, we have seen prices stabilizing and little change in trending. As more inventory comes onto the market as we head into summer it just may create a trend toward higher prices, but we will have to see how strong demand is at that time.

Personally, I have seen that listings are going very quickly in the detached market. Three recent listings of mine all received offers within days of listing, including multiple offers. So my advice is that it really matters in which area the property is located, and that buyers still want to write offers as strong as possible, unless they know there are no other offers and they feel they have time for negotiations. It is important you work with a skilled buyer’s agent who knows the local market and can negotiate well on your behalf.

The bottom line is that if you are a buyer looking for a detached home, it is still a great time to negotiate. Have your agent do her research on the comparables, and come in with a strong offer…but there is no need to offer an amount sufficiently above comparable solds. If your agent knows there are other offers on the property of course you need to discuss how to present your offer in the best light to give it the highest chance of acceptance.

Happy house hunting, and please let me know if you have any market questions you would like to see answered here.

Photos courtesy of Dreamstime.

[ey•juhnt]  noun  1. a person or business authorized to act on another’s behalf  (via Dictionary.com).

Those who have worked with a good real estate agent understand the value such an agent adds to the purchase or sale of a home. Sure, you can sell your home by yourself, and you can search for homes on your own as well, but the skills of a seasoned agent can help you through tricky situations, where a decision can make or break a sale. Let’s look at some of the things a good agent can offer a buyer or seller.

Experience. An agent’s experience with multiple issues can be helpful to a buyer or seller. These issues can include how to negotiate with a particular agent, trends in a certain neighborhood, advice in tough situations, staging and showing advice in a sale, and numerous other issues that an agent may have encountered during her career. All this experience is a benefit to a buyer or seller.

Advice. This goes hand in hand with experience. Agents know their hyper local market well. They understand trends in different areas and neighborhoods, and can compare and contrast a property  to recent comparable properties. This is helpful in deciding at what price to write or counter an offer – such knowledge can be critical in multiple offer situations, where there is a big price discrepancy, or other issues regarding the home  that could alter the value. A good agent’s advice could mean the difference between a sale and a cancelled contract.

Legal issue avoidance. Many people seem to forget that selling or buying a home involves legal paperwork, and can lead to lawsuits if the paperwork is not filled out properly, or if things are not handled correctly. A good agent will not only make sure that you are doing everything correctly to avoid litigation down the road, but will be able to offer advice and discuss options so that this type of situation does not become reality. Think of it as someone looking out for your best interests.

Getting you in the door first (literally). If you are a buyer and work with an agent who is really in touch with the local market, you have a big advantage. In the last year I have helped several clients purchase homes before they came on the MLS, all because I either knew about an upcoming listing or because I did research and found distressed sellers who were about to sell their homes. These sales worked out great for my clients, because they made offers before the properties hit the MLS, with no competition from other buyers. It is another plus of working with an agent who is on top of things.

All in all, it is important to have a trusting relationship with your real estate agent. You should be able to discuss things with your agent and be aware of the ramifications of your decisions throughout the sales process, whether you are buying or selling real estate. Listen to your agent’s advice before making a decision – agents work for you, and with your best interests in mind.

Home prices are rising and have been doing so for the last three months.  According to Standard and Poor’s newest Case-Shiller index report, prices have actually showed a decline, but that fact has been disputed by other reports. In North San Diego, I agree that prices seem to be rising and market times, not including short sales, are decreasing.

The discrepancy between the Case-Shiller report and other reports that have studied markets across the country is that the other reports focus on when contracts are signed – it uses the prices agreed upon at that time, even though it could be months until the properties close escrow.  Case-Shiller uses the prices reflected at the close of escrow, so there is quite a bit of lag time, up to several months, which skews the results.

Market Trends: The general consensus is that if you focus on what is trending, rather than waiting until close of escrow down the road, you get a clearer picture of price increase. Of course, there is the possibility that some of these sales may not close escrow, or may not appraise at the agreed price, but there is still a valid argument that focusing on what people are WILLING to pay and do get into contract for is a more accurate measure of hyper-local market analyses.

North San Diego: From a personal standpoint, I agree that prices seem to be increasing in the North San Diego market. We are seeing a lot of multiple offer situations, especially in the lower price ranges (under $400,000) across the county. Also apparent is that that the days on market time seems to be decreasing. In Carlsbad alone the average market time (for all four zip codes combined) for detached homes is 76 days, but if you scroll through all the pending listings you will notice many that sold in under a week. For attached homes in all four Carlsbad zip codes the average market time is 84 days, but again, you will notice a handful of properties that went into pending status quickly.

Sales Time Trends and Short Sales: Another trend I am seeing is that short sales contracts are being presented and accepted faster, especially in the under-$400,000 price range, with both attached and detached homes. These sales go into contingent status (meaning an offer has been signed and accepted by the seller pending approval by the short sale lender(s)) much quicker these days, but the market times are longer because the parties await short sale lender approval. The wait time, which can take months, throws off the market time numbers and makes them longer, so that has to be considered when looking at the sale times.

All in all the news is positive that the market here in San Diego is improving,which is great news for homeowners and buyers alike. According to Altos Research, the statistics indicate that the tables have turned slightly in the condo market, making it a seller’s market for the first time in a long time; the detached home market is still a buyer’s market. Hopefully the road ahead will continue to bring us closer to a more “normal” market.

Please feel free to contact me if you would like any detailed market reports and statistics sent to you, and I will be happy to do so. Send your request to Rachel@LaMarRealEstate.org.

If you are looking for a home that is bright, clean, close to the beach and has been recently upgraded to the hilt, I have the home for you! My new listing at 1477 Sapphire Drive in Carlsbad is in the wonderful gated community of Mar Brisa, just moments from the beach, dining, shopping, walking trails and in the wonderful Carlsbad school district.

Here are some of the amenities this home offers:

•4 bedroom plus optional bedroom downstairs (or den/office), 2336 square feet, great floorplan

•  Granite kitchen counters

•  New Travertine flooring downstairs with decorative inlays

•  New custom stone floor-to-ceiling fireplace in family room

•  New hardwood flooring in master bedroom – which has ocean peek-a-boo views and plenty of closet space

•  New carpeting upstairs

•  Surround sound system downstairs with recessed speakers, and the family room is wired for Apple TV

•  3 car garage with built-in storage

• Private, nicely landscaped backyard with fire pit

• Newer kitchen appliances, and refrigerator, washer and dryer convey with sale

• Gated community with community pool, two spas, tot lot and exercise lot

If you would like to schedule a showing for this home, please call me at 760-310-9466. For more information and to view more photos and see the virtual tour, please click here.

I read an astonishing statistic today: Zillow reported that about 47% of homebuyers think they own a home once they have signed the purchase contract. Not only did this shock me, but it really made me upset. Someone – the agent – is not communicating. This is way too important to not discuss with buyers, and we have to have that conversation with them, every time!

After reading the statistic and tweeting about it, one of my colleagues responded that his clients changed the locks on their soon-to-be new house, before the close of escrow.

I decided to have a look at our residential purchase contract to find language that specifically states WHEN the buyer owns the home for which the contract was written. I could not find any, but there are numerous mentions of escrow and what happens during that period. I suppose those who drafted these contracts either assumed the buyers would figure it out that escrow must actually close before they become home owners, or assumed their agents would explain this.

While I think maybe the contract drafters may want to consider including a layman’s paragraph about actual ownership and and what point that is established, it is also extremely important for the agents to be sure to educate their buyers. Whether or not my buyers want to read it, I briefly explain what is on each page as they are signing, and always suggest they read it.

The lesson to be learned here is that if you are a real estate agent, you need to be candid with your clients. Explain everything, even if you think your clients already know it, or think it is silly you should do so. Buyers: if you do not understand something please ask your agent – that is their job, they have a fiduciary relationship with you and keeping you informed is of utmost importance.

I have had several clients recently ask how to purchase a foreclosure property, and it is a great question. Oftentimes buyers do not differentiate between the purchase of a foreclosure, a pre-foreclosure, and a post-foreclosure. Let’s take a look at the different ways to purchase property in various stages of foreclosure:

1. Auction (the one true way to “buy a foreclosure”). If you want to buy a foreclosure this is the typical way to do so. Auctions are definitely tricky and you need to understand the process and what you may be getting into. There are several things you really need to understand before going to auction – for explanation read this article. I usually do not recommend auctions to my clients, as there are some caveats (oftentimes you cannot inspect the property first, you do not receive any disclosures, you may be bidding against experienced auction-goers, etc.) If you do decide to go to an auction make sure you are well prepared.

2. Short sales (aka pre-foreclosures). A large percentage of foreclosure-related sales are sold via short sales or lender owned listings. Purchasing a short sale can be a good way to get a better price on a home, but the buyer has to have no aversion to waiting to close escrow – sometimes as long as 3-6 months. The good thing about a short sale is that you will get to inspect the property, and usually you will be provided with disclosures from the owner. For more information on short sales and how they work, you can visit the short sale information tab on my website. I have also written numerous blogs about short sales.

3. Lender-owned/REO (aka post-foreclosures). REO (real estate owned) properties are those that are owned by the lenders who hold the note. They have already gone through the foreclosure process and are now active in the market. Most often, these properties are priced below comparable sold homes, and often the price is reduced every so often if the property has not sold. Post foreclosure properties can also be owned by “flippers,” who purchased the property at auction, did some work, and are reselling it for profit.

The good news then is that many of these homes can be purchased at a savings. The not so good news is that buyers will not likely receive disclosures, as the bank obviously never lived in the property. However, the purchase process is like that of a normal sale – buyers are able to view the property, obtain inspections and reports, and exercise due diligence to their satisfaction with the property condition.

What about all those foreclosure websites? Foreclosure websites can be helpful, but honestly if you have an experienced agent s/he can do the research for you, saving you money in subscriptions. If you are focusing on a particular neighborhood, your agent can research the neighborhood via the public records, and find out who is delinquent, and which properties have notices of default or auction dates filed. If the property is not yet listed as a short sale your agent can see if the owner is open to doing so, allowing you to write an offer and have it presented to the bank. You can also find out auction dates (which often get postponed – the new dates do not necessarily list on the public records, but your agent can do further research). If you are a skilled auction attendee and purchase a lot of foreclosed properties this way, subscribing to one of these sites is a good idea.

There is no magic bullet that will get you a screaming deal on any of these properties. But if you do your homework you can likely acquire nice home at a savings. If you are not afraid of the challenge these can all be great ways to buy your next home. Make sure you have an experienced agent to help you if you are buying a short sale or REO property. If you have any questions about foreclosure please do not hesitate to post them in the comment section below, or email me at Rachel@LaMarRealEstate.org.

Once in a while a property comes along that is very special…that time has come. Welcome to 4029 Sunnyhill Drive in Carlsbad – a wonderful home on a large half-acre, unobstructed ocean view lot, just moments to the beach, shopping and dining.

Highlights:

• Ocean views! Expanded view potential with second story addition
• Updated kitchen with granite counters, stainless appliances
• Detached guest house and office, plus 3 greenhouses
• Outdoor kitchen with tandoori and pizza ovens, BBQ, kegerator
• Gated property
• Ranch style, single story home

• Large, private lot 23000 square foot lot
• 2565 square feet of living space (guest house and office not included in square footage)
• Resort-like pool and spa, recently resurfaced
• Basketball court, tennis backboard, large grassy area
• Mature landscaping with multiple fruit trees
• Moments to beach, shopping, dining, Carlsbad Village, schools
• No HOA or mello roos
• Carlsbad schools
• MLS number 120000115

To view this property or get more information please contact Rachel LaMar, Broker, at 760-310-9466 or Rachel@LaMarRealEstate.org. Visit property website for photos, information. CA DRE license 01399682. Property MLS number 120000115.

Welcome to 243 Azul Way! This new listing in the Pravada neighborhood of Oceanside offers a wonderful floorplan with almost 2400 square feet. With four bedrooms, a downstairs office and a sunny loft, this home has it all.

Features:

• 2392 square feet
• Light and bright
• Large living room/dining room combo with cathedral ceilings
• Downstairs office/den
• Upstairs laundry room
• Quaint backyard with stamped concrete
• 3 car garage
• Custom paint
• Fireplace in family room
• Kitchen/family room combo
• Large play area just steps away
• Upstairs loft
• Close to shopping centers
• MLS number 110068185

Located on a quiet cul-de-sac with a community play area, this home is waiting for you! For more details please visit the property website. Please contact Broker Rachel LaMar for more information at 760-310-9466, or Rachel@LaMarRealEstate.org. CA DRE license number 01399682

Happy Thanksgiving week, everyone! Here is some of the recent news in the real estate market.

More homes hitting the auction block. Auctions have been around a long time, but it seems more homes are now using this service to sell quicker, including higher end homes. There are arguments on both sides of the auction equation to consider. On the one hand, if you have a home that is not selling, or if you need to sell quickly, it could be a way to stimulate interest because the opening bid is much lower than comparable sales. It definitely creates the sense of urgency that is not present in the current market. The goal of course is to obtain multiple bids, leading to a higher sales price. Auction companies also claim to reach a wider pool of buyers.

On the other side of the coin, if the home doesn’t sell the listing history will show the drastically reduced price, which some homeowners feel will have consequences when they place their home back on the market. Either way, it is a great opportunity for buyers to get a great deal, and for sellers to possibly sell their homes faster. But the jury is out on the benefits to sellers…what do you think?

Unpaid mortgages in the U.S. fall to lowest level since 2008. Although their recent study shows just under 6,300,000 delinquent mortgages in the U.S., Lender Processing Services claims that this number has been steadily declining for the past two years. Loss mitigation services are apparently chipping away at this number, but with the potential for more to come will we ever truly see a return to affordable homeownership? With the foreclosure rate growing (and no end in sight), this remains to be seen.

Home price declines good news for buyers. The latest study by Fitch claims that home prices fell 7 percent this year, and will continue to do so. In fact, the prediction is that prices will drop another 13%. This may not sound so good, but it is great news for buyers. Price drops allow buyers to purchase in neighborhoods they likely would not have been able to afford a few years ago. With the number of distressed properties it also makes it a great time to be a buyer or investor.

Existing home sales rise in October. The good news is that existing home sales rose 1.4% in October to 4.97M, according to the National Association of Realtors. This number is above the 4.85M expected, and higher than the September number of 4.91M. Although this number is below the 6 million number that is associated with a healthy housing market, the signs are still good. So no matter how much negative real estate news you hear out there, there are still people out there buying and selling homes. If you are planning to do either, it is so important to work with a skilled agent.

It is official – Congress has voted to bring back the higher FHA loan limits. The measure, once signed by the President, will push the FHA conforming loan limit in the highest priced real estate markets (like California and New York) to $729,750 through 2013. The current limits cap at $625,500 in these markets; they were cut back as of October 1, because of Congress’ failure to extend them.

The limits had been temporarily raised for FHA and Fannie and Freddie during the financial crisis, when it became more difficult to obtain loans from banks.What does this mean for buyers? In the higher priced markets, it means buyers can get higher loans with lower downpayments, a move that prevents them from being locked out of certain neighborhoods due to lack of extra cash.

The new extension applies only to FHA loans, not Fannie and Freddie. FHA, which is a mortgage insurer (not a lender), provides mortgage insurance to buyers who do not have large enough downpayments to obtain prime loans. Borrowers with FHA loans can put as little as 3.5% down on the purchase of a home.