Michael A. Caruso ~ Orange County Real Estate

There are many homes for sale in California and it's important to remember that so many other things can be negotiated besides price. If a home is priced right there are still other items to consider negotiating such as closing cost credits, inspection fees, repairs, and even the length of escrow.

But if you are looking for the best deal you might consider that the homes newly listed may be priced more in line with the market and those homes that have been on the market for long periods of time may be the best deal... if you go after them. Sellers on the market for a long period of time may have been in denial with their original value analysis and perhaps are now coming to grips with the market. Maybe those homes that have been on the market for a long time will accept an offer price they never thought they would have many months ago. That is because seller motivation can increase over time and there are seasonal considerations which can also create a negotiating advantage.

In any event, please be sure to look at a "comparative market analysis" prepared by a Realtor to assist and support you in making your offer. Working with a professional is the first step toward success.

Thank you for making me Your Orange County Real Estate Connection.

Best regards,

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

Does moving to a smaller home always have to do with growing older? Let's talk about some of the reasons to downsize...

Sure, some people downsize to save money but what about the following:

1) Less stairs to climb

2) Single level living

3) Life style change

4) Shorter commute

5) On site amenities

Now, if you think about the hot points listed above, don't they sound like a condo? A low rise, mid or high rise development? Facts are that despite opinions about condos or mid and high rise developments, they do offer a very viable life style alternative that can be enjoyed by all ages. And I really mean enjoyed...not just saving money! Newer condo developments have numerous amenities that make them like a "condo-tel". That is a fancy word for condos with hotel amenities like a theatre, a fitness center, a business center, a wine cellar, a clubhouse, a billiard room and concierge services. And, they are usually within walking distance to shops, markets and restaurants.

I'm suggesting that condos are, and always will be a good lifestyle and an investment opportunity. What are your thoughts? Please send your comments.

And thank you for making me Your Orange County Real Estate Connection.

Best regards.

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

I'm pretty good with math. But when it comes to gas prices I'm pretty sure that everyone is pretty good! And for me, the numbers don't add up. Let's take a look...

When oil was $147 a barrel, gas prices at the pump were about $4.59 in Orange County for regular grade fuel.

Now, oil is at about $92 - $97 per barrel depending on which day it is (and which financial institution is crying out for help). My math says this is a $50+ decline in the price of oil which is about 40% off the high and gas costs $3.69 which is about 90 cents lower or a 20% drop in cost.

Why don't we get a 40% drop in fuel costs if oil drops by 40%? Do you know the answer?

What's happening in your area? Please send in comments.

And thank you for making me Your Orange County Real Estate Connection.

Best regards, Michael Caruso Broker ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

By now most people know there is no perfect ride in the real estate market. There are up's and down's in real estate, some more protracted than others but overall, the average "market" moves in approximately 4 year cycles.

NAR (the National Association of Realtors) has tracked statistics and tells us that the average home nearly doubles in value every 10 years. I believe that statistic is for the last half century, so it is not a snap shot. And, we all know that over the long term, real estate shows to be a great investment. Plus...think of the tax advantages and peaceful enjoyment of home ownership.

July 2008 showed buyers returning to the marketplace despite facts that show us the "crisis" (be it financial or housing, or both) may not be over just yet. What that shows is the yearning to own a home outweighs the predicament of trying to guess the "bottom" and wait to own a home. July sales were at the 2003 pace in Southern California...and 2003 was a very good year.

Barron's magazine said recently "Home prices are about to bottom". The chief economist for the California Association of Realtors (Leslie Appleton-Young) said recently "Anyone who tells you they know what the next 2 years look like, really doesn't know...Nobody really knows".

So, it's safe to say there is no perfect ride in real estate. But it is great to come home to a home you own. Think long term and think home ownership. History still shows it's a great way to live!

Your comments are welcome.

Thank you for making me Your Orange County Real Estate Connection.

Best regards,

Michael Caruso Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

By now, everyone has heard the news. Merrill Lynch & Company will be bought by Bank of America.

The Bloomberg news just reported that the CEO of Merrill, Mr. John Thain and two former colleagues he recruited to join him from Goldman Sachs may reap almost $200 million for their year (and what a year it was) if they leave or are given a lesser role after Bank of America completes its acquisition of the brokerage.

Thain, who got a $15 million bonus when he was hired in December, stands to get an additional $11 million in accelerated stock payouts if he doesn't stay after the deal. His friend and Trading chief Thomas Montag may get $76 million inclusive of bonus and accelerated awards. And Strategy head Peter Kraus was given $95 million (nice strategy there) including bonus and stock awards.

A Merrill spokesman declined to comment on this additional $200 million in what I call additional carnage for the company and the acquiring company.

To me, this is incredulous! I'd love to hear your comments.

Thank you for making me Your Orange County Real Estate Connection.

Best regards, Michael Caruso Broker ABRM CRB CRS

2007 President, Orange County Association of Realtors