Lorraine or Loretta Kratz-Certified Negotiation Experts,

Reason #1. Auctions Are Growing!

Sales of assets by live auction have grown significantly, with the value of goods sold by U.S. auctioneers exceeding $350 billion in 2008, and increase of 9.3 % over the prior year. According to NAA (National Auctioneers Association) real estate represents the fastest growing categories.

Reason #2. Auctions Work Well In Slower Markets:

Auctions can be a particularly important tool in slower real estate markets. Auctions bring all interested parties to a single event, auctions allow the market to "speak" to the seller, determining the current value of a property and producing a transaction. Motivated sellers who can accept that "the Market has spoken" are rewarded with a speedy conclusion -their assets, which have been tied up in the property, are quickly available for investment else-where.

Reason #3. Buyer's Reps Can Earn Commissions:

Since auction companies represent the seller of a given property, they can't represent the buyer. Most auction firms can and do compensate buyers representatives they want you to bring your buyer-clients to their sales.

Reason #4. Auctions, provide a clean fast transaction.

In many ways, auctions reverse the traditional selling process, where the seller sets the price and the buyer determines the contingencies. In an auction it's just the opposite. The seller says "here are the conditions under which I'm willing to sell-what's your price?" Auctions are also backwards in that the date of sale is one of the first things that are determined, instead of the last. And in terms of negotiations, buyers are negotiating with each other on price-no one negotiates with the seller.

Reason #5: Buyers Determine Price:

Auctions provide tangible evidence of market dynamics at work. Buyers see it as an opportunity to purchase property at their price. "It's not a price that's been set by the seller, or an appraiser. The price is set by them-the buyer. Cover all the bases with a buyer before attending an auction.

Reason #6: Myth-Auctions Aren't Limited To Distressed Properties:

It's a common misconception that an auction is a distressed sale. While that may have been the case during the Great Depression of the 1930's it's certainly no longer true today. Multi-million-dollar luxury properties are regularly sold by auction as the owner's first preference. The same is true for rural properties, where the auction tradition has a long-established history. Increasingly, property owners across the nation recognize that taxes, maintenance, financing and other costs, can significantly erode equity, especially if the property sits idle for many months. As a result auction sales have been gaining traction in all categories of real estate.

Reason #7: Buyers Can Find Substantial Values:

Buyers readily recognize that an auction seller is sending a strong signal that they're motivated to sell, creating the perception that buyers can find substantial values. That said, the type of auction method chosen by a seller provides additional clues about just how motivated they are. For example in an absolute auction, typically most attract to buyers, sellers set no minimum price and simply transfer title to the highest bidder. Other sellers will require a minimum bid, published in advance. Still other sellers use reserve auctions, which allow them to accept or reject the highest bid, often including a buy-back fee designed to compensate the high bidder if their bid is rejected and encourage other buyers to participate in the auctions.

While all real estate auctions offer the possibility of finding good values, bank-owned foreclosure properties can present even better buying opportunities. However, buyers should exercise extreme caution with foreclosure properties because the rules are much more relaxed and the risks are inherently greater. In these cases, buyer's reps should take additional precautionary steps, including warning their clients about possible "hazards" such as hidden liens on the property title. Also, home-owners encountering a forces sale may unfortunately, inflict damage upon the property or refuse to leave cooperatively, further delaying or complicating legal transfer of title and or occupancy

Reason #8: Buyer Should Be Represented:

Most buyers participating in auctions are not represented, although they probably should be. Because your compensation is typically arranged through the auction company, representation shouldn't cost buyers a penny more. What do buyers need, in terms of representation? First, you should help your client review the disclosure package, accompany them to any presale inspections and talk to the auction personnel. If the auction company isn't already providing inspections, arrange to conduct your own to address any critical concerns.

Reason #9: It is Easy To Find Auction Properties:

It's relatively easy to find properties offered by auction. Although some MLS's don't accept auction listings, for the most part you'll be able to find these properties co-mingled with traditional listing. www.Auction.MLS.com. Sponsored by the NAA. Or Google --Auctions -San Diego, California.

Reason #10: Auctions Aren't That Different From Traditional Brokerages:

So, in investigating auctions, it's helpful to recall that the auction model involves most of the same components as traditional brokerage sales-but to also understand how those same "pieces of the puzzle" come together in a different manner. Once you become comfortable in your knowledge regarding how auctions work, and how to use them to your advantage in representing buyers, it comes increasingly clear that auctions can provide attractive opportunities.

Homeowners who find themselves struggling with mortgage payments and unsure how to handle the situation-short sale, foreclosure, or walk away-are advised to consider the impact of each on their credit scores.

Loan modifications that roll late payments and penalties into principal debt owed on the house can actually increase borrowers' scores modestly, while refinancing underwater mortgages may have little or no negative effect on credit scores, according to Vantage Solutions, a scoring company created by the three national credit bureaus.

Short sales on the other hand can trigger large declines in credit scores, according to researchers. A homeowner with an excellent credit score might see a 120 to 130 point decline after a short sale.

Homeowners who choose to walk away from the home and stop payments altogether should expect their credit scores to fall 140 to 150 points, plus negative marks on their credit bureau files for up to seven years.

People filing for bankruptcy protection covering all their debts will get hit with an average 355- to 365-point drop in their scores. Bankruptcies remain on borrowers' credit bureau files for 10 years.

But there is good news. Homeowners facing financial stress can experience minimal declines to their scores if they contact their loan servicer or lender when they first discover that they may have trouble making their monthly payments.

The California State Senate passed a bill Wednesday preventing lenders from requiring the use of a specific title or escrow service provider for a buyer of real estate-owned (REO) property.

AB 957, or the Buyer's Choice Act, passed the senate, 33-4, after lawmakers adopted an urgency clause on Sept. 1. The legislation awaits Gov. Arnold Schwarzenegger's signature and will take immediate effect upon being signed.
After its introduction in February, the senate passed the bill on May 13, 77-0. Amendments were attached, and the bill went back to the senate for its enrollment in September. Current federal law prohibits a seller of property to be purchased with federally assisted mortgage loans from dictating to the buyer to purchase insurance from any particular company. The Buyer's Choice Act expands that policy to single-family REO property until Jan. 1, 2015. The Act does not prohibit a buyer from accepting a title insurer or escrow agent recommended by the seller if written notice of the right to make an independent selection is provided. Sellers caught violating the Buyer's Choice Act are liable to the buyer for three times the amount of all charges made for the title or escrow service.

Call Crescent Moon Realty, & Land N Sea Auctions. @1-888-882-1198 Ext 111.

A new study says that homes located in more walkable neighborhoods command a price premium over similar homes in less walkable areas.

The study, "Walking the Walk: How Walkability Raises Home Values in U.S. Cities" was commissioned by CEOs for Cities and conducted by Joe Cortright using data from Walk Score and ZipRealty.

Key findings include:

•· In 13 out of 15 metro areas (sales data provided by ZipRealty), higher levels of walkability were directly linked to higher home values.

•· In the typical metropolitan area, a one point increase in Walk Score was associated with an increase in value ranging from $500 to $3,000. Gains were larger in denser, urban areas and smaller in less dense markets.

•· In the typical areas studied, the premium commanded for neighborhoods with above-average Walk Scores ranged from $4,000 to $34,000.

A key asset of cities is the relative ease with which people can access a wide range of jobs, goods, services and opportunities for social interaction. People and businesses value city locations for the accessibility they provide. Places that are walkable-that have a variety of services and destinations in close proximity to one another-are more convenient and more lively.

Walking is a largely unmeasured and grossly under appreciated component of the urban transportation system. Transportation data often focus exclusively on car and transit trips, ignoring pedestrian travel, even when it is an important component, i.e., walking to a transit stop or from a parking area (Litman, 2007). Consequently, walkability has been under emphasized or ignored as a vital form of urban transportation

To locate new home subdivisions in San Marcos, California -- one must travel to the northwest portion of this community. San Marcos is situated approximately 35 miles northof San Diego and about 95 miles south of Los Angeles, San Marcos is bisected by California State Highway 78. Adjacent to Interstate I-15, San Marcos has easy access to I-5 and I 805.

The following are easy to find new homes divisions that offer a great selection of homes for the person that would like to find a brand new home.

Mahogany at Old Creek Ranch--- Nestle in the San Elijo Hills. Builder is Brookfield Homes. Price is in the mid $600,000. San Elijo is a master planned community. Incentives are available. Up to 5 bedrooms.

Atherton at San Elijo Hills.Builder is Richmond America. Starting prices are in the $600,000. Incentives are availalbe. Up to six bedrooms

Venzano. Builder is Standard Pacific Homes. This community starts in the low $600,000. Incentives are available. Bedrooms up to 7.

If you are interested in more information --- please contact us @ 1-888-882-1198 Ext 111.