Linsey Planeta - Your 'OC Real Estate Voice'

There has been much discussion about the big bailout. But in case anyone with any influence is listening - I have an idea that could make a big contribution to our market recovery. Just call anytime and I'll share my insight with you - from the trenches. I'll be waiting for your call.

For the rest of you that might be curious about what I have in mind, I'll share with you some of what happened to me this week. Brace yourself because I feel a rant coming on....

As I have said countless times on this blog, short sales are a HUGE factor that is driving our market prices and inventory in Orange County. For example, 64% of the active homes on the market today in Rancho Santa Margarita, under $500,000, are short sales! In Mission Viejo, 50% of homes active on the market today under $500,000 are short sales.

These short sales have offers that have been submitted to banks and are just awaiting approval. They may have multiple offers. This is buyer demand that is waiting and the last thing we need in this market is pent up buyer demand waiting.

I'd like to share with you a story about one of my short sale listings. Within 72 hoursof listing the home back in May, I had 4 offers for asking price, and over. We submitted them to the bank, along with the package from my seller that clearly qualified for a hardship. The following dialogue is from this week between my short sale coordinator and the the banking institution's (a very common and well known lender) negotiator.

My Short Sale Coordinator:

"We now had 4 buyer's who have cancelled, including the last offer we submitted due to the fact that this process has taken almost 6 months. We just can't keep buyers around that long and we can't keep the value the same for that period of time. Values are dropping. We do have another offer, but it is lower than any offer we have received.

"At this point we, as long with the seller, are at a loss as to what to do. Do you have any suggestions, or any time frame that we can tell buyers?"

The Bank Negotiator:

"I will have to cancel this file because the buyers are no longer interested. I suggest faxing in the new offer. Because it is a new offer it will be considered a new file. Anytime you have a new buyer it starts all over. A short sale can take 4 - 6 months. When you send in a new contract the time frame starts all over. "

The negotiator goes on to say that they are trying to make time frames shorter and the last response time was 30 days. But in my experience, that response is inconsistent at best and clearly, they aren't willing to commit to anything better than 4 to 6 months.

So what's my big idea? Let's save a big bailout expense. Forget giving money to banks with no accountability for how they use it. Instead, let's create an efficient, streamlined method of handling the massive number of properties that are in foreclosure and that are short sales.

In the case of my listing, it may take one year to get a buyer in that property and a closed sale. In the meantime, values are detrimentally impacted, inventory remains misleadingly high, property condition deteriorates, and suffering sellers can't restart their lives. If you shorten this process to 90 days, can you imagine the positive impact on our market? Just think, 6 months ago I had 4 buyers that wanted to pay full or over list price. Today's buyers are thinking about 20% less than that. THAT is a huge reason prices continue to decline in Orange County and in many parts of the country.

Maybe this is too simplistic. Maybe this addresses only part of the problem. But, if we are looking at some of the real, on the ground solutions for the much touted 'Main Street,' this seems like a great place to start. Like I said, to those influential individuals and government institutions dying to hear my Bailout alternative, I'll be standing by waiting for your call.

Orignally posted on www.OCRealEstateVoice.com

October 25th, from 2:00 to 5:00, the Orange County Great Park in Irvine will host their first Great Park Pumpkin Harvest. Bring the whole family for all kinds of fun with a pumpkin patch, pumpkin decorating, games, petting zoo, and mask making. At 3:00 there will be a Monster Mash and at 4:00 there will be marching in the Great Halloween Costume Parade. Click here for directions.

The event is sponsored by the Great Park Neighborhoods, the Second Harvest Food Bank and the Great Park Conservancy.

Second Harvest Food Bank recently opened its new Orange County headquarters at the Great Park. A food drive will be underway at the Great Park Pumpkin Harvest. They are looking for canned fruits, vegetables and meat products, dry and packaged goods, refrigerated and frozen products, prepared and perishable foods, and fresh produce. They will also accept non-food items such as personal care products, paper products and diapers.

This is also a neat opportunity to get a peek at the wonderful plans that are being initiated for the park and the upcoming neighborhoods.

If you take a look at some of the neighboring counties in So. California, it's interesting to map their history.

Take a look at Riverside County (Light Blue) or San Diego County (Purple). Both of these areas are back to early 2003 pricing. Where is Orange County (Dark Green)? We're still at May 2004 pricing.

Suppose we found ourselves at early 2003 pricing in Orange County; that could put us under the $400,000 mark for a median home price. Interesting...but is it possible? Given the current housing and mortgage climate, I think so. Stay tuned....

For the original post go to OC Real Estate Voice. Source: DataQuick.

As agents, we are continually hearing our clients request a 'good deal'.

But I understand the thinking. For a buyer, if they have to stand around a water cooler and justify jumping into this crazy real estate market, the best defense is 'I got such a great deal!'

But where are the great deals in Orange County? I recently responded to a question on Trulia Q & A about where to write an offer on an Orange County REO. The first answer was from an out of area agent stating that 30% under asking was a good place to start. It may very well be in her area, but in Orange County and Riverside County, first time home buyers and investors are out in force. Asking price, or over, is common and multiple offers is the rule rather than the exception.

At OC Real Estate Voice, I detail the pros and cons of the various types of purchases in Orange County. Surprisingly, some of the best deals are the realistic, traditional sellers that are motivated to price their homes to compete with the inventory. For the buyers focused only on foreclosures, they may be missing some great opportunities.

One week ago, I went to my mailbox to find the local Orange County celebrity and Saddleback Pastor, Rick Warren on the cover of my weekly Time Magazine discussing his international PEACE plan and church.

There is no questioning Warren's international influence. He's sold 30 million copies worldwide of the Purpose Driven Life and has grown the Lake Forest Saddleback Church into the largest church in the country with 28,000 members. If you've ever driven down the 241 Toll Road and seen this church, you know that it really resembles a campus more than a church, and the parking is reminisent of going to a concert or Disneyland - and that's on just a normal day.

Tonight, John McCain and Barack Obama, our 2008 Presidential hopefuls, were there for the Saddleback Civil Forum on the Presidency, hosted by Warren. It has been much anticipated and widely covered on the stations this evening.

My initial impression was that given the venue, McCain would likely be favored. It does seem that his message garnered the audience response that I anticipated. But, I also heard from an active member of the congregation at Saddleback saying that this would be a forum that would be less about rhetoric, and more about getting to a sense of who these men were as individuals - as men.

While listening to the news coverage that followed, one articulate caller expressed distain for the venue and sited the separation of church and state. I've wondered about that myself. How significant is it that a conservative religous leader moderated this event? Do you think the candidates should have participated? And I'm curious about the impression that was left after watching it?

We all have individual political views, but I am curious about how this particular evening was perceived by the national population.

Would love everyone's opinions and insights after watching!