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Ted Mackel Simi Valley Homes For Sale Simi Valley Real Estate Agent

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Widow's Bond - Social Networking helping Widows

04-01-08
Ted Mackel Simi Valley Homes For Sale Simi Valley Real Estate Agent
Widows Bond Michele & PhilOne of the most rewarding and (at the same time) difficult parts of my career is when I am called to help a widow with her home; usually a couple years after her husband has passed. The difficulty lies in that many times estate planning was not complete or in some cases not yet considered. The rewarding part is working through these difficulties and helping my clients reach their next goal. Not only is the home a source of financial security (when there is high equity), but the home is also the place a husband and wife have raised a family and shared many years of marriage together. The memories are deep and rich and the process of selling and moving can be highly emotional.

A close friend Michele Hernandez lost her husband Phil in August on 2005. All of us who knew Michele and Phil (pictured above) were devastated. Not only were we all close in age with young families, but the immediate thought of losing someone so close makes you step back and look at your own life. Through this tragedy a beautiful project was born. Michele's quest to write a book has become an incredible connection point for widows to interact with each other and work through the most difficult time in their lives. If you know a widow or are working with one, Michele has created Widow's Match, "Widow Match is a program designed to provide an opportunity for widows of similar circumstances to offer each other support and understanding through internet correspondence."

Please visit Widow's Bond for more information.
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Historical Existing Home Sales Paints An Important Picture

03-31-08
Ted Mackel Simi Valley Homes For Sale Simi Valley Real Estate Agent
Undergoing MyBlogLog Verification Existing home sales
As an adjunct to my Perfect Storm Blog post.  I went to NAR's website and looked at the historical sales data to study the trends as I am constantly asked how long will a recovery take or when will the bottom hit.  Those waiting for the bottom will likely miss it as the laggards in every business cycle always do.  Sure there is probably some hold out time left, but if mortgage interest rates rise, then the rise in rates will washout perceived gains in timing the bottom.  The issue of mortgage rates is critical as in the Simi Valley Moorpark area, a typical home is well above the FHA preferred rate limits and the increased conforming limits under Fannie and Freddy just require a large down payment.

The volume of  sales has been declining, but declining from what?
NAR Stats Chart The following decades show the volume trends nationally:

Decade Low Average High
1970s 1.6 mil 3 mil 3.9 mil
1980s 2.2  mil 3.3 mil  4 mil
1990s 3.1 mil 3.9 mil  4.9 mil

In 2005 the Volume reached an all time high of 7.1 million homes sold in the united states.  40% of these homes were non-owner occupied  compared to  a typical year where only 12% of the volume would yield to non-owner purchases.  The market was so hot the Fed jacked the interest rates to cool off the speculation.  

NAR is forecasting 4.5- 5 million units to be sold in 2008.  Does this mean that the market will continue to decline?  Different areas will have opposite reactions, for Simi Valley  Moorpark, we will most likely see more of the same until the REO/short sale market begins to lose steam.

Let's face it, the banks were giving money away and now they are holding on to their money with very restrictive lending requirements.  Easy money will no longer drive our market.
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Simi Valley - Moorpark Homes, Buying REOs

03-28-08
Ted Mackel Simi Valley Homes For Sale Simi Valley Real Estate Agent
REOs Buying an REO in Simi Valley or Moorpark? I have bought two in my lifetime. Probably more down the road. Now that this will be a more regular course in our business for a while, here are some of the important issues to consider when purchasing an REO.

Who are you getting your Financing through? This may be the most important issue, because the lender you choose could cause you penalty fees if escrow does not close on time or your earnest money if they can't get you the loan they promised you. Loan brokers tend to have greater flexibility, but because the loan prospects have dried up with the declining markets, loan brokers are split into two camps.
  • The first, REPUTABLE HARD WORKING AGENTS, that will tell you up front the truth and they will not tease you with rates and terms just to get you to make application. I have quality referrals to this group.
  • The second, are THE CHEATS (scumbags). These agents are so far between paychecks that they will tell you ANYTHING. They will tell about incredible deals just to get you tied up with them. By the time you figure it out, it is usually too late and the loan docs you go to sign have rates and terms far different than what they told you or your loan is rejected after you have waived financing contingencies. I will turn this group into the Ventura County District Attorney's Real Estate Fraud Division
Direct Lenders can be slower and delays can cause you penalties to the Seller/Bank if you cannot close on time. Direct Lenders are quoting retail rates which are typically higher than the wholesale rates provided to loan brokers. Direct Lenders cannot shop your package to other sources if they cannot qualify you. A loan broker has the flexibility to go to multiple money sources.

A lender/loan broker that is willing to tell you the challenges of financing up front rather than throwing around teaser rates and specials may seem sexy (sexy is trouble); is where you should be. Real Estate investing should not be sexy, it should be a sound business. Remember, if it sounds too good to be true....it probably is a bunch of smoke and mirrors. Lending requirements are extremely tight and there are no Houdinis out there.

Inspections - Most REOs have winterized their properties. This is funny term for Simi Valley and Moorpark. This usually means that the water is turned off, gas is off and sometimes even the electricity is off. It will be hard for a Home Inspector to do a complete check with the utilities off.

Repairs - REOs are sold as is and usually priced low enough that repair requests fall on deaf ears.

Termite/wood destroying pests - If there has been an inspection done the Seller/Bank probably has not done the work and will leave it to the buyer. Simi Valley and Moorpark are areas where termites, dryrot, wood fungus and other wood destroying organisms can be a concern.

Unknowns - The Seller/Bank does not know the true condition of the property. Was the owner that lost the property to the bank upset enough to damage the property? The Seller/Bank does not know the anecdotal information that is native to certain tract, builders and neighborhoods in Simi Valley and Moorpark.

These are just a few of the things to consider when purchasing an REO. If you have been looking for a REO in the Simi Valley Moorpark areas, then give me a call, TEXT, email or Twitter
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Simi Valley - Moorpark Homes Market Report

03-27-08
Ted Mackel Simi Valley Homes For Sale Simi Valley Real Estate Agent
Market Stats
Simi Valley - Moorpark Market Statistics
Year to Date 3-27-08

SIMI VALLEY:
TYPE SINGLE FAMILY DETTACHED ATTACHED (Condos, townhomes, etc.
Active Listings 583
 128
Pending Sales 119 16
Closed Sales (Year to Date)
 132
More than 50% were 4 bedroom homes.
More than 50% were under $500,000.
15 Were Short Sale, NOD or Lender Approved.
16 Were REO.		 30
Majority were 2 bedroom models.
Half were under $300,000.
6 Were Short Sale, NOD or Lender Approved.
3 Were REO.
Cancelled Listings 133 44
Expired Listings 191 32
Unsold Inventory Index 13.25 months 12.8 months
Notes: Of the total existing homes in Simi Valley roughly only .5% (half of 1%) are in trouble. As a percentage of the existing inventory 6.5% are REOs and 26.0% are Short Sales, NODs or need Lender Approval.


MOORPARK:
TYPE SINGLE FAMILY DETTACHED ATTACHED (Condos, townhomes, etc.
Active Listings 169 44
Pending Sales 27 4
Closed Sales (Year to Date)

 30
More than 60% were 4 & 5 bedroom homes.
More than 55% were under $600,000.
4 Were Short Sale, NOD or Lender Approved.
None Were REO.		 9
Most were 3 bedroom models.
More than 60% were under $400,000.
3 Were Short Sale, NOD or Lender Approved.
None Were REO.
Cancelled Listings 29 11
Expired Listings 36 17
Unsold Inventory Index 16.9 months 12 months
Of the total existing homes in Moorpark roughly only .5% (half of 1%) are in trouble. As a percentage of the existing inventory A fraction of the same number for Simim Valley are REOs and 26.3% are Short Sales, NODs or need Lender Approval.

THE NATIONAL FORECLOSURE RATE IS 1.033%. Simi Valley and Moorpark are running at HALF THE NATIONAL AVERAGE.

This is a buyers market, if you plan to move up, invest or are a first time buyer, now is the time.

I can help you navigate through this market and find the right home for you and your family. This market provides CHOICES. Call, text or email me today!
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Home Inspection Nightmares!

03-23-08
Ted Mackel Simi Valley Homes For Sale Simi Valley Real Estate Agent
home Inspection I promise not to completely trash the home inspection industry, but I think it is very important that everyone understand that there is NO REGULATION on this industry.  If I want to be a home inspector:
  1. I can have business cards printed up and some letterhead,
  2. Buy a few basic tools, a clipboard and I am good to go.
  3. If I have a few bucks to fund this experiment, then I can buy all the inspection forms online and look a little more professional.  
  4. If I decide to really make this a business, then I can sign up for classes and work to get CREA and ASHI certified.

CREIA Logo  CREA - The California Real Estate Inspection Association (CREIA) is a voluntary, nonprofit public-benefit organization of real estate inspectors.

ASHI logo ASHI -  The American Society of Home Inspectors

Looking at the construction industry (where many of these inspectors come from) the average length a contractor's licenses stays active in California is 18 months.  With over 300,000 licenses in the state and 650 applications coming in per week the turn over in the business is high.  

Here are a few of the problems I have encountered with inspectors.  (Please note these were inspectors brought by the buyer when I was representing the Seller).  

Case #1
  1. The inspector called for an anti-siphon cover on the pool drain and call out exposed wires in the pool light socket (pool light had been removed).  
  2. The inspector never removed the skimmer cover to inspect the skimmer.  Had he done his job he would have seen that the drain line was plugged permanently with cement, so a anti-siphon cover was not needed. More importantly his clients should have been notified on his report of the plugged drain line.
  3. If the inspector knew the mechanics behind pool lights, he would have known that this would have been impossible.  Pool lights are hard wired with a very long wire to reach the junction box.  The entire wire goes with the light when installed or replaced.  The Seller abandon the use of the pool light years ago. There were no exposed wires
Case #2
  1. On another home I had, the inspector claim the HVAC was broken, yet the inspector never turned it on because he could not locate the thermostat.
In these two instances the buyers were dis-serviced by the inspector they paid and the the sellers were harmed because the buyers started to make demands based of the faulty inspection.

Another problem these inspectors make is calling out new code on older homes.  As long as it is not a governmental mandatory retrofit standard then an older home does not have to be brought to current code.  The inspector should explain this to his clients.

Last I do have to put some heat on the agents.  Here in my trade area the two governmental mandatory retrofit standards are bracing the water heater and smoke detectors.  KNOW THE LAW.
  • There is a certian type of state apporved material to strap a water heater,  Rope is not approved.
  • Smoke detectors are not required in every bedroom on homes built before 1992 unless more than $1,000.00 of permitted improvements have been done to the home.  I had a 25 year veteran Broker try to make my selllers put smoke detectors in every room in the house.  I felt funny having to show him the current regulation.
I have two inspectors I work with and trust. Here is the criteria that is important when helping buyers find a good home inspector.
  • Time in the business.  How many inspections have they done?
  • Area they work?  If they have been working your trade area for many years, then they will know the idiosyncrasies that are common with certain tracts, developments or builders.
  •  Member of ASHI and CREIA?
  • References
  • Bonded  and Insured (E&O)
DON'TS when hiring and inspector
  • He is the popular guy everyone uses at the office.
  • No construction background.
  • No Certification
  • Might have long experience but is from out of the area.
  • Creates his report in Microsoft Word with no letterhead.
Please add to my List.  I'd  love to see what everyone has experienced!
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