About Del Norte County, CA

No, I don't mean that people are driving less, they are just driving to where the gas is cheaper!

I'm sure you drive to places like Costco where you get a break on gas--and then stay to shop for groceries and other items, which is also less expensive. That means a lot of local grocery and other stores don't get your business.

Here in Crescent City in Northern California, we are about 20 miles from the Oregon border. Oregon does not have sales tax. Their gasoline is also 56 cents a gallon cheaper at Fred Meyers in Brookings. Fred Meyers has fantastic groceries and other items much like Costco. AND DID I SAY NO SALES TAX?

And this morning you could see the long line of California license plated cars gas up there as I did.

I feel badly for our local merchants who miss out on all this business because, obviously, you don't want to drive 40 miles round trip to then not also purchase other items that can be had cheaper.

We are a little different here since we are so close to Oregon where they have NO SALES TAX, did I mention that? So this might be an advantage to come and live on our beautiful coast but still be in California.

It's been an amazingly mild winter here in Del Norte County and that translates into phone calls from buyers out and about looking at properties. Or can it be that we've turned the corner on the real estate market?

With properties listed at lows not seen in a decade, buyers don't even ask me to find "a deal", they assume that everything is priced low. And those that are not? I don't even recommend them knowing that they won't appraise.

And sellers who had been holding out about lowering their sales price, have finally realized that if they don't, they might as well take it off the market. And that is what I recommended to several of them this past year. None did.

Now it is 2012, and I won't take on overpriced listings. It's just too hard for everyone, the seller trying to be optimistic, the buyer being disappointed when he falls in love with a property that won't appraise.

And when a buyer show up with cash, another dynamic comes into play. The buyer is looking for a deal! That can be tough if the property he wants has a loan, because the "short sale" aspect is pretty much the only option. And, in every case, I can't make that decision for the seller, or even attempt to sway him. PLEASE TALK TO YOUR LAWYER MR. SELLER.

Much easier to negotiate, obviously, is for a property that has a low or no loan on it. Then the seller has to make the decision to accept, usually, a very low offer and just get out from under. This seller usually has already moved somewhere else and the property is empty or rented. It sounds easy to say "well, it's paid for so keep it until etc...". But when you consider property taxes, insurance, problem tenants, repairs, etc. is it really such a good idea to keep it. Maybe get your cash out and invest in other opportunities.

Whether buying or selling, let me help you navigate the rocky waters of the real estate market this spring.

Not every buyer appears wanting to buy a 3-bedroom, 2-bath home plus a family room for their 2.5 kids. Not every buyer that comes across your threshold looks at 6 homes and says, that's the one I want, where do I sign. And, oh yes, I am, of course, pre-qualified for the exact amount of the sales price. That would make it too easy!

No, chances are a high percentage of the ones that call us need some help "out-of-the-box." How many sales would you lose in a year if you had firm rules about helping only those "easy" ones mentioned above? I bet a lot. We are in an economy where we need to stretch ourselves a bit. Here are some examples from just the last couple of days:

A. A young lady called me wanting assistance in buying a property that she had found through my website. After a few sentences I THOUGHT she said that she had an agent, but needed a loan. I am not a loan broker and told her so. After we hung up, I replayed the conversation again in my head and I realized that I had made the ASSUMPTION that that's what she said. So I called her back to clarify what she asked me. What she actually asked was that she did, indeed, find a property she was interested in, but she needed help in finding a lender. Once I had looked up the property, I realized that it was a REO and that they actually INSISTED that pre-qualification needed to be done by their company. I then explained to her that she would have to do that, but she, by law, could choose her own lender when then actually going through with the purchase. RESULT: I have a new client.

B. A buyer with excellent credit wants to purchase a multi-plex that has issues. Again, it's a REO that needs a lot of work. The buyer needs to get a loan in order to make it happen. Unfortunately no one will lend on this property, not even a rehab loan. The answer? Find a private lender, which we are now doing. RESULT: I have a new client.

C. A buyer called all excited because her son is looking for an investment property that she can live in. The price range that they are looking for is low, what can I say, especially the area she's looking at. The upside is that she won't need a big house, the ever-popular 3 bedroom/2 bath ones, so that is a definite plus. I did some searching, and, yeh, I think I found one that she will love. And, no, I did not ask her to have her son send me a pre-qualifying letter. This lady was so "high" that her son would do this for her, I was not about to burst her bubble. I will do everything possible to make this work for her! RESULT: I have a new client.

D. An out-of-town buyer called me about finding a beach cottage for them that they want to buy as an investment property. I wasn't so sure about this one because they weren't sure how far away we were, obviously had not been to our area. On the other hand, he was very specific about coming up for a weekend this coming month even after I told him how long it would take to drive here from there. Did I ask him for a pre-qualification letter? Nope! I figured if he and his family are coming up here all that way, I will extend myself for a day for them. If I had been hard to deal with, would they have gotten a good feeling about their venture? I don't think so. RESULT: I have a new client.

Would you have played it any other way? My feeling is, bring them on. I know I can help them. And if the last few days are any indication, this will be a GREAT year.

Snow is not something we get much of here in Del Norte County, at least not near the Redwoods which grow between the ocean and about 10 to 15 miles inland. Rain, lots of it, is much more likely to be our weathern pattern during the winter months. But it's been an especially dry winter so far until last night. And then, wow, there was actual snow on the ground.

And it looks like it's going to stay cold for the next few days, going into the 30's at night and only in the 40's during the day and rain is a-coming. Slightly inland that will probably turn into more snow. And if you go further east just across the California border to the Cave Junction, Oregon area, now THERE it is really cold. Trees, I understand, are iced over, and there is ice snow. No not slush, ice. Brrr....

Don't forget to take your chains with you when traveling through the mountains east and south of Crescent City.

Yesterday we drove Highway 199 between Crescent City and Grants Pass, a very scenic road that winds itself along the beautiful Smith River. And then we came to the place where a car had gone over the edge straight down into the river probably about 100 feet (no guard rails even though the drop-off was only a foot or two from the road). The emergency crew was there including a truck with a heavy duty winch to pull the car up the steep slope. No sign of the people. We didn't stop to ask what happened but continued our trip. Our newspaper tomorrow will tell the tale.

When we got to Grants Pass the first thing we did was go to a tire place and bought new tires. A good set. Oh, and if you purchase them in Oregon, there is no sales tax.

Don't take chances. You think you are an excellent driver, but there can be a lot of distractions and, in the blink of an eye, your life can change.

CHECK YOUR TIRES.