Pasadena & South Pasadena Real Estate

South Pasadena First Quarter 2012 Home Sales

Doug Willis — Thu, 12 Apr 2012 18:38:59 +0000

You have been waiting for the right time. Interest rates are low and money is inexpensive, you’ve managed to save enough for a down payment and your long term employment prospects are the best they have been in years. You’re ready to buy your house and you have decided to call South Pasadena home. Only there is one problem, you cannot find the house you want because the current supply of homes for sale is very, very low.

If you thought the new iPad is hard to find, have you tried searching for a home in South Pasadena?

Lack of inventory is hurting home sales

We are seeing a marked contrast to this time last year when there was an abundance of homes for sale. The first quarter of the year is usually very slow in terms of home sales. Housing inventory typically builds while most home buyers put off a serious search until April. This year however, record low interest rates are just too appealing to ignore and home buyers are concluding that now is the time to sell and trade up because its unlikely that interest rates are likely to go any lower and home prices have flattened out.

South Pasadena Market Recap

As of today, only 11 single family homes are for sale with a median price of $799,000. Of the homes that are for sale, 7 of them have been on the market for over 3 months and trying to find anything under $600,00 has almost become impossible. Of the 24 recorded single family home sales in the first quarter, 5 were bank owned properties ranging in price from $580.0 to $1.2 million.

Where are the homes for sale? – shows the low inventory in the market for the first quarter compared to 2010 and 2011
Little change in first quarter – comparing the number of units sold is very similar to years ’10 and ’11
Inventory of homes – the second quarter is usually categorized by an increase in the number of homes available for sale, but will it materialize this year?

Who would have thought several months ago a housing rebound could be stalled by a lack of homes for sale? That may be just what we see.

Got a Story to Tell? We Want to Hear it?

Doug Willis — Wed, 04 Apr 2012 03:15:30 +0000

We want to hear from you

We need you to share your story? I would like to hear from and encourage you to share your experience. Stories are always more interesting if we can relate personal opinions and experiences, the obstacles you have faced, the triumphs you have gained or the ongoing saga if you are still in the midst and your outcome is uncertain.

Here are a few ideas to give you an idea of what I am looking for:

Loan Modification or Short Sale

loan mod

Remodeling or Adding on

Water to Waterless

xeriscape

Moved up or Moved down? – if you have recently sold your home, did you need more space and probably a more expensive home or did you move into a smaller abode? How long did you live in your previous residence and what finally made you decide to move?

Is Now a Good Time to Buy? – no experience necessary, everyone can chime in on this one. Do you think now is a good time to buy? If so, why? If not, why not? Do you prefer to rent or own?

Here is your chance to tell us your opinion. Email me with your comments and contact information. Your contact info will remain anonymous.

Frequently Asked Short Sale Questions

Doug Willis — Sat, 31 Mar 2012 23:21:05 +0000

Short Sales, loan modifications and Notices of Default can be a confusing process to navigate and understand. That is why we have developed our list of the Top 10 Short Sale Questions.

A Short Sale does not have to be an overwhelming process. More documentation is required to obtain your lenders approval, and the waiting time can be a bit tedious, but a well crafted presentation package can be a tremendous advantage to a successful sale.

The key or fundamental question in deciding to pursue a Short Sale is “Can you provide your lender with evidence that you have suffered a hardship and can no longer make your house payment?” The fact that the market has declined since you purchased you home is not gong to get you much sympathy, since everyone is in the same boat. However if you have lost your job, incurred some unforeseen expenses such as a medical emergency, experienced divorce or a job transfer or have an adjustable mortgage resetting that is going to escalate your payment, then chances are you have a hardship. This explanation provided to the bank is known as a “hardship letter” and is generally required to initiate the process along with:

two recent mortgage statements
two months worth of checking and savings statements
two most recent paycheck stubs
two years of tax returns
monthly expense budget

Underwater on your Home

For more information refer to the Pasadena Short Sale Guide.

To address the issue raised earlier…..if you happen to be upside down on your home and you find that it is worth a couple thousand dollars less than you paid for it, I am not implying that you cannot submit your case for a Short Sale. A new term has been coined called a strategic default. People are walking away from their property when they see no benefit in continuing to make the payment. Why bother, when you can go down the street and rent the same house for much less money than your mortgage payment? We know that a foreclosure is much more costly to a bank than a Short Sale, so in this instance you still may receive no sympathy, but you might obtain a Short Sale approval.

California Homeowners Need A New Tax?

Doug Willis — Tue, 27 Mar 2012 22:51:36 +0000

Can California Homeowners Afford More Taxes?

Last week, members of the California Association of Realtors received a notification of a new bill being introduced that would have a negative affect on California’s housing market. Senator DeShauinier (D-Concord) has introduced a transfer tax which would be used to establish an affordable housing fund. SB 1220 would set up a $75 tax per documnet on the sale or refinance of real property. California real estate transactions usually have a minimum of three documents; a grant deed, a release and reconveyance and a trust deed resulting in a total tax of $225

In these days of class warfare and political divide, will common sense ever prevail? Another recent article indicated Governor Jerry Brown’s proposed tax increases which would raise sales taxes and increase the taxes paid by higher income earners is gaining favor. Anyone surprised? If it doesn’t affect me, but raises taxes on other individuals, then of course lets pass it.

Majority rule in a democracy was never intended to allow a certain group of people to impose restrictions on other individuals which would be discriminatory and favor one over the other. Anyone here of Proposition 8?

Homeowners are already taxed enough. A homeowner in Los Angeles who sells a $500,000 property is ging to pay a LA County transfer tax of $1.10 per thousand or $550, plus a Los Angeles City transfer tax of $4.50 per thousand or $2250, a total of $2800. In the days of 15% a year appreciation, these high taxes were easy to overlook. Today however, is another story. With some of the highest gas prices in the nation, that $2800 could easily get you to your new destination as you drive east on the 10 and wave good-bye to California.

Let’s Tax California Pension Beneficiaries

California homeowners have suffered enough. I think a better idea would be to let the citizens of California vote on taxing the pensions of California State Employees. This seems to be the only sacrosanct item in the entire state, and also the source of so much available wealth. How far do you think that proposal would go? I bring this up only to show the abusrdity of allowing a group of people decide the fate of another. It’s just unfair.

Avoid Foreclosure by Becoming a Tenant in Your Home

Doug Willis — Sat, 24 Mar 2012 17:15:24 +0000

Bank of America has a new program targeted at homeowners who are in the foreclosure process. Only with this program there happens to be one big caveat. You agree to give up your home. No more modification attempts, no more endless submissions of paperwork. You sign a Deed in Lieu giving up any rights or claims you have in your property, returning it to your lender.

Would you sign a Deed in Lieu and rent your home?

With a simple stroke of the pen, you transcend home ownership.

Signed, Sealed, Delivered. Tenant.

The program will be administered by real estate agents who have been trained in the process and protocols. Homeowners will be preselected by Bank of America for participation in the program.

In these days of home ownership, there is no shortage of programs aimed at homeowners in default, only a shortage of programs that have proven successful.

Why This, Why Now?

As a real estate broker who has participated in a similar program I have contacted homeowners facing foreclosure. This program offered homeowners the opportunity to enter into a pre-approved short sale. No further authorizations or approvals needed. Sell the home, avoid foreclosure and earn $2500 after escrow closes as a relocation allowance. I have called them and left repeated messages. I have met them on their front porch and I have been invited to sit at the kitchen table. Most have been very courteous, some a bit hostile.

The consensus is participation rates are very low. The reason I believe is due to a false hope among homeowners. They feel as long as they are in a modification process there is a chance a solution will be achieved and they can keep their home. Some property owners who have been declined a modification have been encouraged to apply again.

The Devil is in the Details

With this new program, the homeowner will be offered market rate rents and can occupy the property for up to three years. It is also my understanding that B of A will make needed repairs to the property if needed. However if you don’t make the payment you can face a possible eviction.

The Big Question

Can the program be successful? I see three possible outcomes:

Will homeowners who have basically been living in the home without making a payment for 12 – 24 months now be willing to pony up a monthly rent check to cover their housing expense?
Or have property owners become so accustomed to living in the house without any monthly financial commitment balk at having a new monthly obligation?
Will the homeowner continue and stay in the house refusing to short sale or lease and say “Catch Me If You Can” ?

Kudos to Bank of America for introducing new solutions to the housing issues facing the economy. They have an insurmountable task.

Pasadena Deena, Skillful Negotiator & Market Savvy

Doug Willis — Fri, 23 Mar 2012 03:34:57 +0000

Pasadena Deena will help you buy or sell your next home in Pasadena, South Pasadena & Altadena!

Most post home buyer studies indicate consumers are generally happy with their real estate agent and would use them again, if, if, if only they could remember their name. Quick, what was the name of your agent?

Buying or selling real estate, or need help? Call Pasadena Deena @ 626-432-4615

Recall and name recognition are two key components to the success of the real estate agent. Referrals which are critical in our industry are highly dependent upon your clients, your sphere of influence and even a casual acquaintance remembering your name.

Pasadena, South Pasadena, & Altadena

If you are in the banking business, wouldn’t it be great to have the name “Cash”? And how about your friend “Joe” that works at Starbucks. Don’t forget Dr. Molar, the dentist. And if real estate is your profession and you sell homes in Altadena, Pasadena & South Pasadena, what better name to have than Deena!

Deena Willis is a real estate broker with RE/MAX Property Concierge in South Pasadena. She makes her home in Pasadena and her latest home sale was just last week in Altadena.

Need to buy or sell in The Dena? Who you gonna call? Pasadena Deena.

Not only does she have one of the best names in the business, she has an excellent ability to connect with her clients and find them that special home. Home sellers quickly appreciate her comprehension of how to market and sell their home on the internet. When 85% of home buyers begin their search online, shouldn’t your agent know how to find them? She does.

Make your next real estate transaction enjoyable and memorable, exciting and fun. Call Pasadena Deena today at 626-432-4615.

The Real Estate Tag Line

Doug Willis — Wed, 21 Mar 2012 03:54:27 +0000

Trying to come up with something creative and memorable is the challenge of anyone in business. Marketing departments all over corporate America experience consistent turnover because they can’t summarize who they are and what they do in a succinct statement. Or they put together a belief or a creed that manufacturing and sales just can’t live up to, resulting in a bad consumer experience, because what was stated and implied was not the result from using the product or service, ending in dissatisfaction.

Think about every real estate agent you’ver ever met. Didn’t they brag about and promote their exceptional, unbelievable, premier, outstanding, and memorable service level? After all, you wouldn’t want to work with someone who offered poor, unforgettable, average terrible or lousy service would you?

But what “service” means to you and me, maybe different things. There is a tendency in this industry to take the broad and ambiguous and run with it.

What is the adjective du jour and the latest buzz words?

It’s very hard to summarize who you are or what you do in a catchphrase. Imagine every real estate agent as an independent contractor, an entrepreneaur. Trying to define your business in a few memorable words is an impossible task. There is not enough money available to create a brand of an individual. Service cannot be defined in a tag line. It is created over time just like a reputation, word of mouth or very happy and satisfied clients.

The Real Estate industry needs to do a better job of describing what they offer and what separates them from their competitors. In consumer products its called market segmentation. There is no shortage of some new product or category that addresses a particular need or desire that solves a problem, either real or imaginary.

Short Sales and Distressed Properties are a perfect example. Too many agents who have never had any additional training are taking listings of homeowners whose financial future may be dependent upon a successful short sale. The agent is tossing up a Hail Mary hoping they get the home sold. If you need knee surgery, do you go to your General Practioner or do you see the Orthopedic Surgeon?
There are far too many agents who take bad pictures and cannot write a complete sentence attempting to sell houses. But how do you blame the agent with a half ass-ed attempt, when the homeowner won’t hold the agent or the Broker accountable? Would you take your kids to a photographer who takes blurry or poorly lit pictures? Of course you wouldn’t, but you would be surprised how many homeowners trust their biggest investment to some clown with a real estate license, a cheap camera and a bad eye.

If we were in an industry that had more homes to sell than agents to sell them, then you would understand the mediocrity, but that’s not the case.

There are many professionals in this industry who do understand their fiduciary responsibilities and do a fantastic job. I tip my hat to them. For you other wannabe’s out there, keep talking about your superior service.

Short Sale Listings For Sale in Pasadena

Doug Willis — Sat, 17 Mar 2012 01:35:23 +0000

We spend a lot of time here discussing short sales and distressed properties. The focus is usually from the Sellers perspective and what needs to be done or what options are available to avoid foreclosure. We’re going to flip the coin and examine it from a homebuyers perspective.

Like everything else, buying a Short Sale has its pros and cons.

Don't Overlook Short Sales

The big advantage is price. You may be able to purchase the house for a little less than the market value. You may also find the listing agent is eager to accept an offer and submit it to the lender for approval. The bank may come back and refuse to pay for some things which were originally accepted by the seller, but the bank does have final approval. After all, they are absorbing the loss. Don’t expcect the Seller to pay for anything the bank excludes. You as the buyer will probably pick up the tab.

Banks typically may limit the amount of the termite work that needs to be completed and many times they will refuse to pay for a home warranty. You may also find that since it has been listed as a Short Sale, many buyers will avoid it for various reasons.

These include:

uncertainty – no one knows if the bank will accept the offer
time – approval from the bank can take a few months. Shorter response times are more common, but it can depend on other factors. Have the sellers submitted all of their financial information beforehand or does the bank require it with the purchase offer?
lenders – how many lenders have to approve the sale? If more than one, is it the same lender or different banks?
the agents involved – are they familiar with the procedure and have they communicated to and educated their client on the proess? Patience is a virtue.
your mortgage – since a buyers contingency period begins after written acceptance from the bank, you may not be able to lock in your loan rate for several weeks.

There may also be a misconception that Short Sales are only available “For Sale” in the lower priced homes. As you can see from the homes displayed below, they are available in all price ranges.

To see more Short Sales currently For Sale, click the following links:
Pasadena Short Sales
South Pasadena Short Sales
Altadena Short Sales

Pasadena Short Sales Currently For Sale

Pasadena Home Sales Begin Early

Doug Willis — Thu, 15 Mar 2012 04:26:36 +0000

From all indications, February was a good month for the Pasadena real estate market. Sales of single family homes were up 47% over this time last year. Homes going into escrow also increased by 26%. But is the news all rosey?

Depends on your perspective. If you are selling your home all indications point to a sellers market. You may remember that term. It was used quite often between 2002-2006. It may come as a surprse to you that the term has resurfaced and is in vogue again. Many of us thought the phrase was destined to find its place in history next to words such as “typewritter” or “landline”.

Where is the Inventory?

The number of homes available for sale is down by almost 50%. If your in the market to buy a home, your choices are limited at this point and it’s only the beginning of March. As you move around from home to home, you may find yourself competing with the same buyers. Which by the was is very similiar to trying to enroll your child in private kindergarten here in Pasadena. So many kids, so very few available openings.

The Outlook for Spring

We haven’t entered the peak home buying season yet. Normaly there would be more inventory available because homes usually sit unsold in January and February. Not the case this year. You have to wonder if low interest rates have accelerated the Spring selling season?

I went back and looked at the last 5 years for only the month of February. The results indicate we have recovered very well from just a few years ago. One thing to consider in terms of the median price, distressed property sales now makeup approximately 25 to 30 % of our market. These consist of bank owned and short sales.

Pasadena Short Sales and Bank Owned properties For Sale

	2008	2009	2010	2011	2012
# Sold	26	40	48	36	53
# Pended	51	58	57	57	72
months supply inven	22.1	8.1	6.5	6.8	3.7
avg price square foot	492	358	359	394	394
median price ($000)	724	488	508	602	519

Highland Park Kitchen Opens For Business

Doug Willis — Mon, 12 Mar 2012 22:44:00 +0000

Located at 5137 York Blvd. is Highland Park’s newest restaurant serving lunch & dinner along with a weekend brunch. The Highland Park Kitchen opened in late February and has quickly become one of our favorite places to visit for lunch. This is a great gathering place for local residents and I can see it quickly becoming the place to meet friends and associates for a drink or dinner. There is a full cocktail bar along with comfortable outdoor patio seating which just happens to be pet friendly since so many of us don’t dare venture out without taking the family pooch.

On a recent trip, I had the mix & match sliders consisting of one braised short rib and one Angus beef sandwich, both of which were excellent, cooked to perfection and very flavorful. My guest had the steak sandwich and pretty much agreed with my results, pronouncing it tender and delicious. They also have a Kids Menu, so they have all of their bases covered with several selections at $5.

The staff was very friendly, eager to please and they made you feel very welcome and they were glad to see you. How many restaurants can you visit these days and say that? Sometimes when I have finished a meal at certain establishment, after paying the check I have a feeling of being underwhelmed. Here at the Highland Park Kitchen, I left looking forward to my next visit.

And yes, they do have a Happy Hour! It’s Tuesday through Sunday from 3 – 7pm. We look forward to seeing you there!

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