Anaheim Hills, CA

The good news is that 4,706 short sales were closed YTD in Orange County. These homeowner avoided foreclosure, lenders were able to minimize their loses and buyers were able to enter the market.

The distressing news is that 5,759 short sales were canceled, expired and withdrawn in the same period. In other words. That means that over 50% of all short sales attempted this year - failed.

The why is easy ... the process is ridiculous. It usually goes something like this:

First, agents typically under price the property to attract buyers who would otherwise stay away from short sales. Then, dozens of buyers place offers on this and many other properties at the same time. Next, the lenders take months and months to even consider the offers. In the meantime, most of the buyers have moved on to other properties ... except the buyer with the lowest offer. But unfortunately, his offer is 20% below the comparables and the lender says "no".

So then, the agent goes back on the market and tries to get another offer at this possibly, but not guaranteed "approved" price. Then maybe this time, if they are lucky, they'll find a reasonable offer, if the negotiator hasn't closed the file yet, they get the highly coveted approval letter.

Unfortunately, the approval is only good for 30 days and as we all know, it's almost impossible to get a loan closed in 30 days in today's market. So, on Day 28 the buyer's agent sends over an urgent extension request and the negotiator responds that this delay is unacceptable and someone is going to have to pay a per diem for them to even consider an extension.

But remember, the glass is almost half full and despite this process, we are able to get 45% closed.

So, how do we fix it? Based on my inexperience with our current process, here's the easy solution to get about short sale success rate up to 95%.

1. First, the seller submits a standardized hardship financial package to the lender

2. The lender has a negotiator assigned to the property within 7 days

3. The negotiator orders an appraisal and 2 Broker Price Opinions within 7 days

4. The lender evaluates the package and the market value, and gives the homeowner an approved price with a 90 day window to get the property under contract

5. The homeowner hires an experienced Realtor who lists the property as an "approved short sale" that can be closed within the same time frames as a standard or REO sale.

If the answer is "yeah, but ... they don't have the resources" - that's crazy nonsense. This process would save them a fortunate in time, administration, personnel and eventually foreclosure costs.

Have a great week!

Seven Gables Real Estate

License #01727426

www.TheOCExperts.com

www.OCMarketUpdate.com (blog)

Direct: 714 276-7006

Fax: 714 917-2293

"If You Can't Explain it Simply, You Don't Understand It Well Enough"

~ Albert Einstein

The following statistics include real estate transactions for Anaheim Hills as of Friday, November 13, 2009.

Single Family Residences

Total Homes on the market, detached and attached is 99

All other statistics for Single Family Residences are for detached homes only

Median List Price:

92807- $689,000 with the average price being $1,357,452

92808- $834,950 with the average price being $1,264,352

Total Houses Available for both zip codes: 83

Least Expensive:

$429,000 for a single-story home of approximately 1,516sq.ft. off of Santa Ana Canyon Rd and Pinney. This 4BR, 2BA was built in 1965 and has a lot size of 7,632sq.ft. Close to parks, schools, shopping centers and the 91fwy. This short sale has been on the market for 26 listing days.

Most Expensive:

$5,950,000 for an extraordinary built custom estate high in the hills. This magnificent estate is comprised of a single level main house, separate bonus room with bedroom and bath, and a private guest house with bedroom and bath; approximately 8,284sq.ft. of living space on 95,007sq.ft. of sprawling grounds. This home is complete with separate family and living rooms, great room with built in wet bar, putting green, 60' infinity pool, built-in BBQ, double island chef's kitchen, 8-car garage, complete indoor/outdoor surround sound system, private road with gated entry at the bottom of 400' drive and panoramic views of the city. This home has been on the market for 121 listing days.

Price ranges of available detached houses:

$400,000-499,999: 9

$500,000-599,999: 6

$600,000-699,999: 19

$700,000-799,999: 11

$800,000-899,999: 3

$900,000-999,999: 4

$1,000,000-1,499,999: 7

$1,500,000-1,999,999: 8

$2,000,000-2,499,999: 0

$2,500,000-2,999,999: 3

$3,000,000-3,499,999: 7

$3,500,000-3,999,999: 2

$4,000,000-4,499,999: 0

$4,500,000-4,999,999: 0

$5,000,000+: 2

Average on Market

Available: 83

List Price: $1,317,071

Bedrooms: 4

Bath: 3

Square Feet: 3,596

Days On Market: 106

Dollar Per Sq.Ft.: $366.26

Average for Closed Sales:

Closed Sales: 0 closed sales between 11/6/09-11/13/09

Averages for Escrow:

Homes in Escrow: 55

List Price: $667,704

Bedrooms: 4

Bath: 3

Square Feet: 2,621

Days On Market: 73

Dollar Per Sq.Ft.: $254.75

Single Family Residences: Attached

There are 16 Active listings with an average of 82 listing days, listed at the average price of $587,343. There were 2 closed sales with average 3BR, 2BA, 1,598sq.ft. for $453,750. There are 16 properties in escrow with an average of 103 listing days, listed at the average price of $450,525.

Condominiums

Total condominiums, attached and detached 18

All other statistics for Condominiums are for Attached condos only

Median List Price

92807- $370,000 with the average price being $378,333

92808- $327,500 with the average price being $321,270

Total Condos Available for both zip codes: 13

Least Expensive:

$186,000 for approximately 800 sq.ft. built in 1980. Located off of Riverdale and Tustin. This condo is a 2BR, 1BA with a 2-car detached garage. Home Association dues are $200/month including access to association pool and spa. This property has been on the market for 131 listing day.

Most Expensive:

$579,000 for a 4BR, 3BA two-level condo with 2,943 sq.ft. built in 1974. This condo has a 2-car attached garage with direct access. Located off of Canyon Rim. and Anaheim Hills Rd. HOA dues of $337.00. This condo has been on the market for 161 listing days.

Price ranges of available condominiums:

$100,000-199,999: 1

$200,000-299,999: 4

$300,000-399,999: 7

$400,000-499,999: 0

$500,000-599,999: 1

Average on Market:

Available: 13

List Price: $334,438

Bedrooms: 2

Bath: 2

Square Feet: 1,230

Days On Market: 87

Dollar Per Sq.Ft.: $271.90

Average for Closed Sales

Closed Sales: 3

List Price: $308,300

Bedrooms: 2

Bath: 2

Square Feet: 1,272

Days On Market: 68

Dollar Per Sq.Ft.: $242.37

Average for Escrow

In Escrow: 25

List Price: $324,678

Bedrooms: 3

Bath: 2.5

Square Feet: 1,257

Days On Market: 9

Dollar Per Sq.Ft.: $258.30

The following statistics include real estate transactions for Anaheim Hills as of Friday, November 6, 2009.

Single Family Residences

Total Homes on the market, detached and attached is 93

All other statistics for Single Family Residences are for detached homes only

Median List Price:

92807- $694,000 with the average price being $1,314,586

92808- $925,000 with the average price being $1,357,781

Total Houses Available for both zip codes: 79

Least Expensive:

$429,000 for a single-story home of approximately 1,516sq.ft. off of Santa Ana Canyon Rd and Pinney. This 4BR, 2BA was built in 1965 and has a lot size of 7,632sq.ft. Close to parks, schools, shopping centers and the 91fwy. This short sale has been on the market for 19 listing days.

Most Expensive:

$5,000,000 for an 8BR, 7BA, 7,888sq.ft. exclusive mansion located in the highest possible point of Anaheim Hills off of Hidden Canyon and Serrano. This luxurious multi-level estate sits on a 108,777sq.ft. lot. The owner spent over $900,000 in amenities such as custom wood work, dancing club, rare art collections, luxury granite pieces and much more. This property is new on the market with 45 listing days.

Price ranges of available detached houses:

$400,000-499,999: 6

$500,000-599,999: 6

$600,000-699,999: 19

$700,000-799,999: 11

$800,000-899,999: 3

$900,000-999,999: 4

$1,000,000-1,499,999: 9

$1,500,000-1,999,999: 8

$2,000,000-2,499,999: 0

$2,500,000-2,999,999: 1

$3,000,000-3,499,999: 8

$3,500,000-3,999,999: 2

$4,000,000-4,499,999: 0

$4,500,000-4,999,999: 1

$5,000,000+: 1

Average on Market

Available: 79

List Price: $1,332,629

Bedrooms: 4

Bath: 3

Square Feet: 3,677

Days On Market: 115

Dollar Per Sq.Ft.: $362.42

Average for Closed Sales:

Closed Sales: 4

Sold Price: $697,500

Bedrooms: 4

Bath: 3

Square Feet: 2,797

Days On Market: 77

Dollar Per Sq.Ft.: $249.37

Averages for Escrow:

Homes in Escrow: 51

List Price: $707,195

Bedrooms: 4

Bath: 3

Square Feet: 2,662

Days On Market: 79

Dollar Per Sq.Ft.: $265.66

Single Family Residences: Attached

There are 14 Active listings with an average of 94 listing days, listed at the average price of $624,035. There was 1 closed sales with 3BR, 3BA, 2,343sq.ft. for $579,000. There are 17 properties in escrow with an average of 91 listing days, listed at the average price of $450,494.

Condominiums

Total condominiums, attached and detached 17

All other statistics for Condominiums are for Attached condos only

Median List Price

92807- $370,000 with the average price being $378,333

92808- $328,700 with the average price being $320,460

Total Condos Available for both zip codes: 13

Least Expensive:

$186,000 for approximately 800 sq.ft. built in 1980. Located off of Riverdale and Tustin. This condo is a 2BR, 1BA with a 2-car detached garage. Home Association dues are $200/month including access to association pool and spa. This property has been on the market for 124 listing day.

Most Expensive:

$579,000 for a 4BR, 3BA two-level condo with 2,943 sq.ft. built in 1974. This condo has a 2-car attached garage with direct access. Located off of Canyon Rim. and Anaheim Hills Rd. HOA dues of $337.00. This condo has been on the market for 154 listing days.

Price ranges of available condominiums:

$100,000-199,999: 1

$200,000-299,999: 5

$300,000-399,999: 6

$400,000-499,999: 0

$500,000-599,999: 1

Average on Market:

Available: 13

List Price: $333,815

Bedrooms: 2

Bath: 2

Square Feet: 1,254

Days On Market: 84

Dollar Per Sq.Ft.: $266.20

Average for Closed Sales

Closed Sales: 5

List Price: $348,980

Bedrooms: 3

Bath: 2

Square Feet: 1,144

Days On Market: 46

Dollar Per Sq.Ft.: $305.05

Average for Escrow

In Escrow: 23

List Price: $332,063

Bedrooms: 3

Bath: 2.5

Square Feet: 1,309

Days On Market: 94

Dollar Per Sq.Ft.: $253.68

Good news for buyers and the housing market. These changes are effective when the President signs the bill. The credit offers several new features, including a $6500 credit for people who are not "first time" homeowners and a binding contract rule which will take away some of the pressure in April, 2010 when the credits are scheduled to expire. See the chart below for a summary:

October is birthday month around our house. Bonnie, Kenneth (14) and Gina (11). We make a sincere effort to make sure everyone feels special on their birthday, but I never pass up a chance at having some fun. As a result, the preparation for Gina's birthday party gave me a great chance for a practical joke.

Earlier this summer, Gina and Kenneth spent the day at the Swap Meet with Nana and Grandad. They came home with PVC blow guns designed to shoot small marshmallows. I thought they were kind of silly, but they were a huge hit with the kids and their friends. They're just ½" PVC pipe, assembled as a blow gun. They are spray painted different colors to make them fun. Everything is painted except the mouthpiece which is personal to each player.

For her birthday party; Gina told us she wanted to have a slumber party and make marshmallow blow guns with her friends. We spoke with the parents of the kids we were inviting and everyone was fine with it, so we said that was okay.

Now we had to build the blowguns.

I relied on my friends Jim and Brandon Volivitch at Lincoln Ace Hardware. We had a lot of fun figuring out how much PVC I needed and picking out the accessories and the paint we needed to have fun building the blowguns. There were to be eight guests, so I asked for eight paint colors.

When I got home, Gina was thrilled with everything except the green and the blue paint we had selected. She asked me if there weren't brighter colors. I told her there were fluorescent colors and I would go back and get them, but she had to go with me if that was what she really wanted. She accepted my terms.

As I walked into Lincoln Ace Hardware, I made a trumpet out of my hands and sounded the announcement. Then I said, "Announcing Princess Gina! Her Royal Highness is here to pick out her own paint colors!" I had a big grin on my face and my tongue firmly planted in my cheek, but I could not believe what happened next. I couldn't have planned it better.

Jim and a customer stepped out of the plumbing aisle in the back of the store. They were both grinning. Then the customer did the coolest thing; he put his hands to his mouth and trumpeted in return! Jim and I were both laughing. Gina was refusing to come into the store at this point, but Jim's cashier Cyndi came to the rescue. She offered to help Gina while the men chortled.

I was still chuckling as we exchanged the colors at the register with Cyndi. She shook her head at me and winked at Gina in commiseration for having dorky Dads. It was a great afternoon that I won't soon forget.