Cristal Drake, Realtor Fullerton Real Estate

Any buyer that has been looking for a starter home in Fullerton or in Orange County for the past few months knows exactly how fierce this market is! 

If you are lucky enough to win the offer war as a buyer, then your next hurdle is with the appraisal.With values coming in so low because of out of area appraisers, short sales sold extremely below market value and everything else. We often bite our nails off hoping to get the "all clear" on the appraisal.  I was having a conversation with another Realtor today and she had a perfect way to explain it to our poor buyers and sellers who are just exhausted by the whole situation!

Market Value - This is the price that the market will bear.  When you have 40 buyers for a home, this will drive the market value up. If you end up with 10 buyers that are willing to pay $400,000 for a house, this becomes the "Market Value".

Appraised Value - This is the value that the appraiser will assign the property. Lately, I am hearing that lots of "appraised values" are coming in EXTREMELY low and it is hurting home owners that are trying to re-finance or sell their properties.

What it was worth in 2006 - Unfortunately this is the toughest. Every single seller (and I mean EVERY one) knows what their house WAS worth at the peak; yours truly included. No one is immune to this and it is really tough to sit down with a seller to talk about listing their home for hundreds of thousands less than it was worth then; especially if that is when they bought it. It can be heart breaking. 

That market will go up, it will go down and right now, it is just darn crazy!  The bottom line is that if you can make your mortgage, make it. At some point, it will go back up. It always has!

If you are a home owner and can't make your mortgage; there are resources available.  I am one and it won't cost a thing to have a conversation about it and it is completely confidential!________________________________________________________________

Cristal Drake – Fullerton Realtor (R)...At Your Service for all your Fullerton area real estate needs! Prudential California Realty - 714-423-7525. DRE#: 01272061. All information in my blogs is believed to be accurate but is not guaranteed. Copyright 2009 all rights reserved.

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Ideally, we want home owners to stay in their home and one option is to try to get a loan modification.  When that doesn't work, we are usually faced with a couple of other options.  Foreclosure or Short Sale.  Short Sale is the far better choice for everyone involved. Most people seem to understand this.

What I do not understand is why so many listing agents list short sales FAR below market value.  I was just uploading a great EQUITY listing and as I was doing this, I noticed a brand new listing in the same neighborhood.  It was almost twice as large for $100,000 LESS!  It was a short sale.

I know the area and this particular home. I have not been inside but from what I can tell, buyers will be clamoring over it and it will most likely get bid up $150,000 or more than the list price.  I am trying hard to understand the rationale here.  Here are my questions/comments to the listing agents doing this.

1.  This particular Fullerton Neighborhood is HOT!  Buyers want to live in it!  The first time home buyer credit is running out!  This home doesn't need to be listed for $235,000 when buyers will pay $400,000 or more for the same house!  It will easily appraise.

2.  Do you ever want another listing in this neighborhood again? I just watched short sale transaction happen on the same street and out of 20 offers, the seller took the LOWEST so she could sell it to her neighbor.  Therefore shorting the bank the additional $80,000 it could have received and further driving down the values.  We are having enough trouble getting the appraised value.  Why drive the neighborhood down more?

3.  Buyers qualified for $235,000 really think they have a shot at this house!Is that why you are doing it; to attract $235,000 buyers? Or is it to get more leads for the lender you are requiring they qualify through? I am just wondering.  These buyers are tiered, they are beat up and exhausted from going against 30 plus offers on a house they had NO SHOT AT!

4.  You are making the local Realtors' jobs harder because we are continually have to try to explain why this home is listed at $235,000.I mean, they see it on the Internet at that price so that must mean they can get all that house for such a little price, right?

5.  How do you think the bank would feel if they see that you are listing it for $150,000 less than it should be? 

6. You are really hurting current sellers.  This is the second time that this has happened to one of my sellers in the last month.  Buyers see the lower listing and though it will not sell for that (unless of course it gets sold to a friend or neighbor) it hurts the other sellers!

I didn't even get into how this will affect YOUR seller. I have heard of sellers in tears because of short sales listed so far below market that it caused crowds of people outside. They were so overwhelmed!!!

These are serious points and questions that I really would like answers to so please comment. I am a Certified Distressed Property Expert (CDPE) and this is just not the way I do it.  How I do it will be in a post to follow.

PS - Usually I am actually really nice but I am seeing this way of doing things just hurt way too many people!  So, i fyou have the answers,  I would really, really like to hear them. :o)

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Cristal Drake – Fullerton Realtor (R)...At Your Service for all your Fullerton area real estate needs! Prudential California Realty - 714-423-7525. DRE#: 01272061. All information in my blogs is believed to be accurate but is not guaranteed. Copyright 2009 all rights reserved.

Search The MLS Here!

I love this time of year! Fall in Fullerton is so much fun! Our trees may not turn colors and lose their leaves but so many fun events come up in the fall and this weekend is probably my favorite.....Fullerton Uncorked!

Why do I love it so much? First, it is located at the beautiful Fullerton Arboretum. It is great opportunity to tour these beautiful grounds in the Cal State Fullerton parking lot.

Second - The food! Pretty much every great restaurant in town is there serving up tastes from their menu's! This year over 45 local restaurants will be there, along with numerous wineries and breweries.

And that brings me to three - Wineries and breweries! Your friends (and mine) from the South Fullerton Rotary will be there to pour! And pour they will!

Did I mention that it is a fundraiser and supports two great causes? Proceeds go to support the Fullerton Arboretum and the Fullerton Boys and Girls Club!

This is pretty much the best party in Fullerton and that is just what it feels like, a big party with all your friends! The venue is just the right size and I almost everyone in Fullerton will be there (or so it seems).

Tickets are $55 at the door or $45 in advance and include: All you can eat and drink, and live music, everything included in your price. Purchase in advance at:

The Complete Package- 1400 N. Harbor Blvd., Suite 130 - Fullerton, CA 92835 - (714) 446-0330

RE/MAX of North Orange County- 1441 Brea Blvd, Fullerton, CA 92835 - (714) 525-0900

I hope to see you Saturday at the Fullerton Arboretum! It starts at 5:00 and only lasts until 8:30 so don't be late!

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Cristal Drake – Fullerton Realtor (R)...At Your Service for all your Fullerton area real estate needs! Prudential California Realty - 714-423-7525. DRE#: 01272061. All information in my blogs is believed to be accurate but is not guaranteed. Copyright 2009 all rights reserved.

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Take a moment to write your Congressman about this important measure! You have heard local Realtors(r) talk about what a different the first time home buyer tax credit has made.

It is set to expire on November 30th, 2009 further fueling the local first timers frenzy to open and close escrow by November 30th. In Fullerton, there is NO INVENTORY in this price range and most first time home buyers are at a complete stand still watching the few homes that are on the market get bid up over what AN APPRAISAL WILL SUPPORT!

Congress, give our first timers a chance to keep fueling the economy and even more importantly; GIVE IT TO ALL BUYERS! The "move up" market continues to suffer locally and it may free up some that are on the fence about taking the leap to the move up home that they would like to get into!

Look at the numbers for Fullerton for the starter market (homes below $500,000):

Let's free up some starter homes by giving the incentive to the move up buyers too!

REALTORS AND BUYERS, WRITE TO YOUR CONGRESSMAN!

Click Here to Take Action!

The other day I posted a blog and a graph about what is happening with inventory in Fullerton. Fullerton Real Estate - Supply and Demad - The Facts. The fact is; it has decreased. Someone asked a great question in response and it was, "What are the home prices doing in Fullerton?" Great question, here is the answer, in graph form. (Funny, I think I might be becoming a graph person after all.)

Fullerton Home Prices Per Square Foot (All Homes Sold)

I don't have the option to list the actually prices in my software (source is the So. Cal. MLS) but you can see that the per square foot price has started to increase in Fullerton. This is for all price points.

After pulling these stats, I was curious to see what the inventory was like in the super hot price point of below $500,000 in the city of Fullerton.

The numers are shocking!

This graph (source So. Cal. MLS) indicates the inventory in Fullerton for homes less than $500,000. This is what is hot right now and you can see that there is practically no inventory and that the pending escrows almost equal what was was for sale! Wow!

And the price range for these? Here is the per sq. ft. for this price range.

Prices have started inching up. April was really a turning point in the area. People really started looking in the early part of the year and this is when the demand started to increase.

If you would liketo see the numbers for something more specific, let me know. I am kind of getting into these graphs!

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Cristal Drake – Fullerton Realtor (R)...At Your Service for all your Fullerton area real estate needs! Prudential California Realty - 714-423-7525. DRE#: 01272061. All information in my blogs is believed to be accurate but is not guaranteed. Copyright 2009 all rights reserved.

Receive my blogs via email! Click here: Subscribe in a reader

Search The MLS Here!