Blog

Santa Clarita Valley Short Sales

The Gregory Group — Tue, 02 Mar 2010 19:18:46 +0000

Here is a quick update on the Santa Clarita Valley real estate short sale market. Short sales make up 40% of the current active real estate inventory for the Santa Clarita Valley. These areas include Canyon Country, Saugus, Newhall, Valencia, Stevenson Ranch, and Castaic, but exclude Acton and Agua Dulce. There are 255 active short sales for sale with 163 being single family residences and 92 being condo's or town homes. Currently, there are 681 Santa Clarita short salesthat have an accepted offer and are being negotiated with the bank for short sale approval. Year to date, 112 Santa Clarita short sale listings have actually successfully closed escrow and transferred ownership. Santa clarita Valley short sales are not going away anytime soon. More and more homeowners are getting notice of defaults filed against their homes every single day. The majority of these homeowners that are behind in payments also owe a significant amount more on their home then it is worth in today's market. Thus, forcing them to make a decision. Most likely, a short sale!

Santa Clarita Valley Active Real Estate 3/1/10

The Gregory Group — Tue, 02 Mar 2010 00:12:40 +0000

Here are the current active real estate stats for the Santa Clarita Valley. These areas include Canyon Country, Saugus, Valencia, Castaic, Stevenson Ranch, and Newhall, but exclude Acton and Agua Dulce.

We currently have a total of 661 homes that are for sale.

475 detached residences

186 attached residences

47% of our market is actually a standard sale (310 total)

39% are short sales (259 total)

10% are bank owned (64 total)

4% other (28 total)

Santa Clarita Real Estate Homebuyer Tax Credit

The Gregory Group — Fri, 06 Nov 2009 19:22:10 +0000

Attention Santa Clarita Real Estate Buyers - President Obama has signed legislation to extend the Homebuyer Tax Credit. Passage of the bill was widely anticipated to further spur economic recovery in the housing sector, as more buyers are now eligible for tax breaks under the new law. The $8,000 first-time homebuyer tax credit was originally set to expire on November 30.

In addition to offering the $8,000 first-time homebuyer tax credit, the new law also allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more.

The tax credits are available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009, and April 30, 2010. Buyers would have until June 30 to close on their new homes.

There is an $800,000 price limit on all homes eligible for the credit. The income limits for all buyers are now $125,000 per year for individuals and $225,000 for married couples. Under the old program, the limits were $75,000 and $150,000 respectively. The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

If you are currently looking for a home in the Santa Clarita real estate market please feel free to contact Matt Gregory of Keller Williams VIP Properties with any questions regarding this tax credit. Matt Gregory can be reached at 661-713-4799.

Purchasing Santa Clarita Real Estate

The Gregory Group — Mon, 12 Oct 2009 19:48:42 +0000

When buying a home in Santa Clarita, it’s important to think carefully about your offering price, but also your offering terms. Most purchase offers define both. And in some cases, terms and conditions can represent thousands of dollars in additional value for buyers or additional costs.

Terms may include inspections, requests for specific property repairs, or timing considerations.

Determining a Price

Some buyers mistakenly believe there is a predetermined formula for offers—that offering prices should be X percent lower than the seller’s asking price or the amount they are really willing to pay.

In reality, your offer price actually depends more upon the basic laws of supply and demand. If many buyers are competing for homes, then sellers will likely get full-price offers and more likely even over the asking price. If demand is weak, then offers below the asking price may be in order. Right now, the Santa Clarita real estate market has a very low supply and a very high number of demand. This is causing multiple offers on homes often pushing the purchase price above the listing price.

How to make an offer

In most cases, you complete an offer that your buyer representative presents on your behalf. The owner, in turn, may accept the offer, reject it or make a counter-offer.

Because counter-offers are common (any change in terms can be considered a “counter-offer”), it’s important that you remain in close contact with your buyer representative during the negotiation process so that any proposed changes can be quickly reviewed.

Inspections

Inspections are common in Santa Clarita real estate transactions. Depending on your needs and where you live, they may include:

physical home inspections
“green” issues, including energy efficiency and eco-friendliness
surveys to determine boundaries
appraisals to determine value for lenders
title reviews
termite inspections

Physical home inspections are particularly important. During these inspections, an inspector evaluates the property for any material physical defects and whether expensive repairs and replacements are likely to be required in the next few years.

For a single-family home, these inspections often require two or three hours. You should plan to attend too. This is an important opportunity to examine the property’s mechanics (plumbing, wiring, etc.) and structure, ask the inspector questions and learn far more about the property than is possible with an informal walk-through

What is a Santa Clarita Short Sale?

The Gregory Group — Fri, 02 Oct 2009 20:22:22 +0000

Many homeowners are avoiding foreclosure in the Santa Clarita Valley by trying to short sale their home. There are currently 186 active Santa Clarita short sales on the market ranging in price from $72,000 to $1,999,000. With the number of short sales in the Santa Clarita real estate market continuing to grow, many buyers and sellers are asking a very important question. What is a short sale?

A short sale is a sale of real estate in which the proceeds from the sale do not cover the balance owed on a loan or loans on a property. Lenders accept a discounted payoff on the loan and allow the sale to close escrow. The lender will agree to discount the loan due to an economic hardship on the part of the mortgagor, and the homeowner will sell the mortgaged property for less than the outstanding balance of the loan, turn over the proceeds to the lender, most often in full satisfaction of the debt. A short sale is accomplished through negotiation with a bank's loss mitigation or workout department on the part of the real estate professional, but the lender has the right to approve or disapprove any proposed sale. Main factors contributing to the lender's decision are the borrower's financial situation and the current state of the real estate market.

A short sale, in short is a lender taking a loss to avoid larger costs. It is neither the lender doing the homeowner a favor nor an easy way out for the homeowner, but a process enabled by a real estate professional and homeowner when they are committed to avoiding foreclosure.

Santa Clarita Real Estate Active Inventory

The Gregory Group — Mon, 28 Sep 2009 16:53:45 +0000

Santa Clarita Real Estate - With a lack of inventory of Santa Clarita homes for sale, it has continued to be very tough for buyers to find a home and get it under contract. Here is a quick run down of the active inventory for the Santa Clarita real estate market according to the MLS in Santa Clarita.

Active Santa Clarita Homes For Sale - 510

Attached Condos or Townhomes - 127 (25%)

Detached Single Family Residence - 373 (73%)

Other - 10 (2%)

Out of these 510 Santa Clarita homes for sale:

Standard Sales - 46%

Short Sales - 40%

Bank Owned Homes - 10%

other - 4%

5 Common Myths Concerning REO Sales

The Gregory Group — Tue, 22 Sep 2009 18:48:50 +0000

Santa Clarita Valley Real Estate - Myth #1- Sellers of REO properties are exempt from all disclosures.

While many Sellers and Brokers who list REO properties stamp all the contracts and disclosures with the statement "Seller Exempt from all Disclosures," this is simply not the case. The California Association Of Realtors puts out an excellent chart that indicates which disclosures are required and which are not for REO properties. REO sellers are exempt from providing the Transfer Disclosure Statement and the Residential Earthquake Hazard Report. REO sellers are NOT, however, exempt from disclosing any material facts that they are aware of, concerning the property.

While they do not have to use a TDS to disclose any material facts, they are required to disclose these facts in writing to the Buyer. Further, while REO Sellers are exempt from providing a Buyer with a Natural Hazard Disclosure Statement, the law does not exempt them from disclosing many of the zones that are contained in such reports. While this law makes little sense, it is highly suggested that the Natural Hazard Disclosure Report be provided to all Buyers since the REO Seller has affirmative duties to disclose such zones and there is really no way to properly do so without the use of such a report.

Next, REO Sellers are not exempt from the lead-based paint disclosure on properties built prior to 1978. While the REO Seller is not required to pay for Smoke Detector, Water Heater Bracing and other local mandatory government retrofit requirements, they are not exempt from filling out the appropriate CAR Smoke Detector and Water Heater Disclosure forms. LA city also requires the Certificate of Compliance form to be completed regardless of who actually pays for the retrofit work. Providing these forms without Seller signature is not in compliance. Someone with authority to sign on behalf of the Seller should be signing these disclosure forms. Also, remember that both the listing and selling agent are required to perform a visual inspection of the accessible areas of all residential 1-4 unit properties and disclose the results of that inspection to the Buyer. There is no exception to this rule for REO properties.

Myth #2- Buyers should simply sign the REO Addenda provided to them without reviewing these documents.

This can be a very dangerous practice, both from a liability and expense perspective. Many of these addenda provided by REO Sellers are heavily weighted in favor of the Sellers. While the Buyer may have little choice in signing these addenda since the REO Seller may refuse to sell to them unless they are signed, that doesn’t mean that the Buyer should not carefully review them first to see how they impact the Buyer’s legal positions and expenses that they may incur. While it is traditional for the average Seller in Southern California to pay for the mandatory retrofit items and the Country and City Transfer taxes, these addenda often pass this responsibility on to the Buyer. These are negotiable items between a Buyer and Seller, but it is important for a Buyer to be aware of exactly what they are going to be responsible for since this could add up to thousands of dollars.

Myth #3- All Sellers provide Buyers with the Same Type of Title Insurance Policy.

While the CAR Residential Purchase Agreement calls for the Seller to provide the Buyer with an ALTA/CLTA Homeowner’s Policy, the REO addenda may change this to a Standard Policy of Title Insurance which provides less coverage than the above mentioned policy. Once again this is a negotiable item, but in such event, it would be wise for the Real Estate agent to counsel the Buyer on the possibility of the Buyer paying the difference between the Standard Policy and the ALTA/CLTA Homeowner’s policy. The cost is relatively low and it could prevent a major problem in the future.

Myth #4- REO properties are sold AS IS and the Buyer cannot ask the Seller to make any repairs after completing the home inspection.

While it is true that REO properties are sold as is, and while you will undoubtedly see quite a bit of language in the REO addenda indicating that the Seller will not make any repairs whatsoever, nothing prevents a Buyer from asking the Seller to make repairs as a result of the home inspection. The Seller can certainly say no, but often times the Seller will agree to certain repairs or to a credit or reduction in the sales price. You should certainly prepare your Buyers for the possibility that the Seller will say no, but, as they say, it never hurts to ask.

Myth #5- It is Illegal or Unethical for an REO Seller to require a Buyer to get prequalified or preapproved though a specific lender of Seller’s choice.

While this might be inconvenient for a Buyer, there is a good business reason for requiring such a prequalification or preapproval. Unfortunately, there are many lenders out in the field issuing prequalification letters that turn out to be worthless. In such cases, the property may be tied up for weeks only to find that the Buyer really isn’t qualified for the loan in question. The Seller has the right to have the Buyer evaluated by a Lender whom the Seller has confidence in to determine up front whether the Buyer appears to be capable of obtaining the loan in question. The Seller cannot, however, require the Buyer to obtain the loan through that particular lender.

As a final comment, it is always wise to prepare your Buyer ahead of time when dealing with an REO property. There may be time delays in getting an offer presented and accepted. There may be additional delays in getting documentation from the lender and there may even be delays in closing the escrow caused by the Sellers. Making the Buyers aware of these issues up front may help smooth the way a bit down the road. And don’t forget to use the CAR form entitled REO Advisory. This form is designed to provide the Buyer and Seller with important disclosures and information regarding the REO process.

The First-Time Homebuyer Tax Credit

The Gregory Group — Wed, 16 Sep 2009 00:02:47 +0000

Santa Clarita Real Estate - Do you or anyone you know qualify for the first-time homebuyer tax credit? If so, here’s how to take advantage of this lucrative incentive.
Qualifying first-time homebuyers can claim 10% of the purchase price up to $8,000, or $4,000 for married individuals filing separately. The credit is available for purchases completed on or after January 1, 2009, and before December 1, 2009. The credit is refundable, meaning recipients receive a check for any claim amount beyond what’s owed in taxes.
Eligibility for the first-time homebuyer credit is determined by the date of the completed purchase, not the date of occupancy. One exception is if the home is being constructed, then the date of occupancy is considered the date of purchase. The home must be used as a primary residence (generally defined as where an individual spends more than 50% of their time). To be eligible, the buyer, or either spouse, cannot have owned and used a home as a primary residence within the last three years. A taxpayer who owned a rental property but not a primary residence within the past three years is eligible for the credit.
The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years. There are some exceptions: homes sold as part of a divorce settlement, homes destroyed in a natural disaster, homes subject to condemnation, etc.
To be eligible for the credit, the home cannot be inherited, received as a gift, or purchased from a spouse or related person. The credit applies to any type of new or existing dwelling. Even some houseboats and manufactured homes used as primary residences are eligible. The $8,000 tax credit phases out for individuals with modified annual gross income (MAGI) of $75,000 to $95,000 and married couples with MAGI of $150,000 to $170,000.
With interest rates hovering at historic lows and housing affordability at its best level in more than a decade, this is a timely tax incentive. To claim the credit, fill out the IRS Form 5405 and claim this amount on line 67 of the 1040 income tax form for 2009. For more information, visit the IRS Newsroom.
The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor.

Homebuyer Tax Credit Provides Incentives for Buyers

The Gregory Group — Fri, 04 Sep 2009 18:02:22 +0000

Valencia Real Estate - With low interest rates and low inventory in the Santa Clarita real estate market many buyers are seeing that now is the time to buy. And for those who were previously on the fence, the approved 2009 first-time homebuyer tax credit is becoming the incentive they need, allowing buyers to save thousands on a new home this year.

“The $8,000 tax credit is available to first-time home buyers who purchase a principal residence between January 1, 2009 and December 1, 2009,” said Matt Gregory, Broker Associate of Keller Williams VIP Properties. “First-time homebuyers who qualify are those who have not owned a residence during the three years prior to the purchase. Unlike previous homebuyer tax credits, this credit does not have to be repaid and can be used as a down payment toward the purchase of the home.”

For many interested buyers, this tax credit not only provides financial support, but it allows many to realize the dream of homeownership that they may not have qualified for previously.

The details of the credit are similar to the one offered in 2008 and include the following requirements:

· Buyers must close on their home purchase by November 30, 2009
· Buyers must ensure that they are qualified first-time buyers under IRS guidelines
· Buyers must decide which year to file under, 2008 or 2009
· Buyers must file an amended 2008 return or choose to apply the credit to their 2009 tax return

The success of the tax credit thus far has increased support for legislation that would extend the tax credit beyond the current deadline, as well as that which would open it beyond first-time buyers. This is just one of many efforts under way to help buyers purchase Santa Clarita houses.

With all of the requirements and restrictions for this credit, the key is to work with a real estate professional that knows the local market and specializes in buyer representation – like an agent who has earned the Accredited Buyer’s Representative (ABR®) designation.

Matt Gregory is one of more than 50,000 members of the Real Estate Buyer’s Agent Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the Accredited Buyer Representative (ABR®) designation. As the world's largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is "The Voice for Buyer Representation," with more than 50,000 active real estate professional members of the organization throughout the world.

To contact Matt Gregory, and to receive a free copy of the REBAC-published Homebuyer’s Toolkit, visit www.MattSellsSCV.com or call 800-952-1105.

Santa Clarita Real Estate Prices Firming Up

The Gregory Group — Thu, 03 Sep 2009 20:54:15 +0000

Valencia, CA - Single-family homes sales during July in the Santa Clarita real estate market held even with activity reported a year ago and gained 16.3 percent over this June, the Southland Regional Association of Realtors® reported.

A total of 235 Santa Clarita homes for sale closed escrow, down two sales or 0.8 percent from a year ago, but up 33 sales from this June. The 237 sales were the second highest monthly figure since the low point of this market of 99 sales was reported in January 2008.

Condo sales increased 3.5 percent compared to a year ago. A total of 88 condos changed owners, up three sales from a year ago and off a single transaction from the 89 closed escrows reported this June. Condo resales also have been gaining momentum since the low-water mark of 31 transactions in January 2008.

Santa Clarita Realtors are reporting increased buyer interest across the board, although homes priced under $500,000 are the ones seeing the most activity and multiple bids. Inventory is half of what is was in 2008 while the pool of prospective buyers continues to expand as financing becomes more available.

Buyers are willing to compete for favorably priced homes, especially with interest rates still low and the availability of a federal and state tax rebate.

The active inventory of Santa Clarita houses continues to plummet with the 807 listings available at the end of the month off 54.6 percent from the 1,778 listings of July 2008.

At the current pace of sales, the activity inventory represents a mere 2.5-month supply. A year ago the supply at the then current pace of sales was 5.5 months. A balanced market occurs when there is a 5- to 6-month supply.

The median price of the 235 homes that sold last month in the Santa Clarita real estate market was $410,000, down 7.0 percent from a year ago and equal to the median reported in June.

The median has been above $400,000 in all but one month since the low point for this cycle of $385,000 was reported in December 2008.

Price declines from the prior year have been getting smaller with July being the second consecutive month the decline was in single-digit territory after 16 months of double-digit drops with the largest being 27.0 percent in December 2008.

The 88 condos that changed owners last month had a median price of $218,900, down 23.2 percent from a year ago and off 5.8 percent from the June 2009 median.

The median has been steadily rising since the record low median of $205,000 was posted this January.

Pending escrows - a measure of future resale activity - increased 11.0 percent from a year ago. There were 425 open escrows at the end of July; a year ago there were 385