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Single Family Residential
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Actives:
San Benito County-166 of which REO/Bank Owned-27 or 16%
Hollister-100 of which REO/Bank Owned-21 or 21%
Pendings:
San Benito County-200 of which REO/Bank Owned-35 or 18%
Hollister-162 of which REO/Bank Owned-29 or 18%
Absorption Rate:
San Benito County-.83 months supply of inventory or 25 days
Hollister-.62 months supply of inventory or 19 days
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Solds for the week: 11
High-$890,000 Equity Sale, New Conv. 1st
Low- $149,000 REO/Bank Owned, All Cash
Full-Price/Over-Asking: 3 or 27%
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Sale Type:
REO/Bank Owned-6 or 55%
Equity Sale-3 or 27% (1 was a investor flip)
Short Sale-2 or 18%
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Financing Type:
All Cash-5 or 45%
New Conv. 1st-5 or 45%
VA Loan-1 or 10%
FHA Loan-none
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Interesting week for the Solds. A couple of high selling properties both with more than $100,000 price reductions. Another interesting note is the number of all cash transactions! Wow…cash is still king!
It appears we are in the most difficult lending environment the industry has seen in a very long time if ever. Transactions almost never close on time. If you’re closing is only a couple days late count yourself as a lucky one. I have one transaction right now that has been in contract since May 15th and the buyer’s are just starting hope for loan docs to come next week!
Because of the difficult lending environment on my listings I’m now asking for the following:
1. BofA Pre-Qual (required on my BofA REO’s)
2. Pre-Approval from the buyers lender of choice including that lender’s DU Approval/DU Findings
3. Proof of Down-Payment/Funds to close
If a buyer can provide all of that…they’re serious about closing the deal!
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Single Family Residential
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Actives:
San Benito County-173 of which REO/Bank Owned-29 or 17%
Hollister -106 of which REO/Bank Owned-24 or 23%
Pendings:
San Benito County-196 of which REO/Bank Owned-36 or 18%
Hollister-156 of which REO/Bank Owned-30 or 19%
Absorption Rate:
San Benito County-.88 months supply of inventory or 26-days
Hollister-.68 months supply of inventory or 14-days
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Solds for the weeks: 10
High-$357,950 Short Sale, FHA Loan
Low- $105,000 REO/Bank Owned, All Cash
Full-Price/Over-Asking-8 or 80%
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Sale Type:
REO/Bank Owned-6 or 60%
Short Sale-3 or 30%
Equity Sale-1 or 10%
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Financing Type:
FHA Loan-7 or 70%
All Cash-2 or 20%
New Conv. 1st-1 or 10%
I know, I know, anyone reading this has got to be saying…yeah right..a painless short sale? But it is true that a short sale can be painless provided that rules are followed and a few tools are used.
One of the most important rules that I impliment is that my sellers are in the game. I explain that at times it may seem that I am demanding, and asking for more and more documentation (ie. paperwork), but I am just the messenger and at the mercy of the bank. If they want it, I am going to get it to them promptly. As long as my sellers know that up front before I even take the listing, that this may not seem easy for them…I will do everything I can to help them. But, they need to be ready to jump when I ask and they always need to be immediately available whether by email (preferably) or phone.
As far as tools…I have a number of them in my short sale arsinal. From brochures explaining the difference between a short sale and foreclosure, to my method for completing and submitting the short sale package.
And I must admit with my background in escrow…it helps to know the “lender lingo” and when the lender asks for something, if you get it to them NOW..your file will not go back to the end of the line, but proceed forward.
So what can be done to help make the Short Sale process run smoother?
The obvious answer would be to have the banks streamline their system. But I think that many banks have done that now, making the process easier than it ever has been. I think as agents we need to do what we can to make the process easier for them and our clients. That means having a complete package ready in our possession and being prepared to hand the lender what they need immediately. If the lender asks for an updated paystub…you should have that in hand unless it is not yet available. I instruct my sellers to deliver to me updated paystubs, bank statements, etc. as they receive them…so I don’t have to ask.
And the big question……Why do I want to do short sales?
We actually…I hate to date myself here, but back in my escrow days…. I have done short sales for over 20 years. At a time when escrow actually did the negotiating with the bank (how many of you remember that??) So short sales are nothing new, they are just more prevelant than they have ever been due to the drop in the market. But back to the question…plain and simple…I want to help people. This is a time when they need help the most. I have seen too many people that were “helped” by others, only to lose their homes to foreclosure. I can help them with the process and we can make the journey together to get their home sold. It’s also a good thing for our neighborhoods and communities…a sold sign is much better than a deteriorating foreclosed property.
Now for a market update….here are the stats:
Single Family Residential
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Active:
San Benito County-133 of which REO/Bank Owned-18 or 14%
Hollister-73 of which REO/Bank Owned-11 or 15%
Pending:
San Benito County-216 of which REO/Bank Owned-52 or 24%
Hollister-179 of which REO/Bank Owned-41 or 23%
Absorption Rate:
San Benito County-.62 month’s supply of inventory or 19days
Hollister-.41 month’s supply of inventory or 12days
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Solds for the week: 11
High: $820,000 New Conv. 1st, Equity Sale
Property appraised for $750,000! Buyer paid $70,000
over appraised value.
Low: $140,000 FHA Loan, REO/Bank Owned
Full-Price or Over-Asking: 6 or 55%
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Sale Type
REO/Bank Owned: 5 or 45%
Equity Sale: 6 or 55%
Short Sale: none
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Financing Type
New Conv. 1st: 6 or 55%
FHA Loan: 2 or 18%
All CASH: 1 or 9%
VA Loan: 1 or 9%
USDA Loan: 1 or 9%
Being new to Real Estate sales I am still surprised when I answer my cell phone and the person on the other side is surprised to hear my voice, thinking that they have reached my voicemail. I think most people in the business, including our clients expect to always receive a voicemail. These people are also surprised when their emails are immediately responded to. Now, first..I am not perfect, but if I am up and my phone rings..I answer it. If I have my email open on my computer, or my cell phone alerts me…I will try to immediately respond to my emails. Sure there are moments when I have a time sensitive project that I need to get out, or I am meeting with clients and will turn my ringer off. But when I am finished, if I have voice mails I will return them as quickly as possible.
But I have also met new people who have become my clients because their previous agent just didn’t work for them. They were the ones perusing Internet sites looking for property that fits the criteria of what they are looking for, then calling their “agent” to see if he or she can give them information or set up a viewing. When I have explained to these new clients of mine (thank you to their previous agent), that I can set them up on an MLS alert that will notify them as soon as a property hits the market with the characteristics they are looking for, their immediate response is “why didn’t our previous agent do that”?
When I first started working one of the first lessons my Broker taught me was that if a person called on one of our listings the first question I asked was “are you working with an agent”? I learned then that although the majority of the calls came from people who were indeed committed to an agent, they went on to say that they couldn’t get ahold of their agent, or their agent was attending a family function, or hadn’t even returned their phone call. And of course they have to see the property immediately! I even had one such person call me and I explained that if she was working with an agent, her agent could make arrangements to preview the property with her. Not five minutes later…her agent (who worked for a large local office) called me to say he was at swimming lessons with his kids and well, could I show his client my listing? Sure…I would be happy to provide excellent service to YOUR client, and actually showed her a couple of houses that day. By the way….that client is no longer his, but I don’t think he still knows that !
So, if your agent is not available, not answering their phone and checking their emails and just plain not working for you…..I am always welcoming new clients, and I am never too busy for any of your referrals!!
Single Family Residential
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Active:
San Benito County-134 of which REO/Bank Owned-25 or 19%
Hollister-70 of which REO/Bank Owned-16 or 23%
Pending:
San Benito County-215 of which REO/Bank Owned-50 or 23%
Hollister-180 of which REO/Bank Owned-40 or 22%
Absorption Rate:
San Benito County-.62 month’s supply of inventory or 19days
Hollister-.39 month’s supply of inventory or 12days
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Solds for the week: 7 (a light week for closings- another indication of our extremely low inventory)
High-$524,700 REO/Bank Owned, New Conv. 1st
Low-$210,000 Short Sale, FHA Loan
Full Price or Over Asking: 5 or 71%
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Sale Type
REO/Bank Owned-2 or 29%
Short Sale-4 or 57%
Equity Sale-1 or 14%
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Financing Type
New Conv. 1st-4 or 57%
FHA Loan-3 or 43%
All Cash-none this week
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As a seller don’t let scare you…it is an incredible time to sell property. Particularly if you are having financial difficulties and may be facing a short sale. For properties that are priced correctly they will sell immediately typically with multiple offers.
As a buyer this is an incredible opportunity to purchase. The economic forecasters are predicting that interest rates will soon rise, leaving many buyers that could afford to purchase no longer being able to do so.
Until next week…..
