Tere Rice

Well today was a first for me. My buyer absolutely refuses to cross qual with Bank Of America or any other lender for that matter. She has shared her information with one lender and that's that. End of story. I understand BAC wants to know for sure she is qualified to complete a transaction. And I do ask my buyers to check GFE from at least two lenders to get the best loan deal out there. But not this buyer.

It really is ridiculous to have to cross qual on the bank owned properties. I had asked for a buyer to cross qual on a listing I have to be sure they can complete the deal and they also refused. Their lender did call me to guaranty they can complete the transaction. And honestly I am good with it. There are no kick backs to the RE agent from lenders, but I also have lenders I know can do the deal and get it closed.

Maybe the banks, now in the selling side of Real Estate should back off and stop forcing people to cross qualify? I wouldn't want my information out there on the Internet either, With identity theft rampant. But then again the differences in the bottom line for lender fees varies greatly.

The best deals I have seen is with Credit Unions, but they also do not get into FHA or VA loan. Conventional 5% down with MI. So that pretty much means a loan from the Big Three. Loan Brokers charge higher fees, not as high as Hard Money Loans 12% with 50% down. Talk about price gouging!

So maybe if the Realtors made a big enough stink the Big Three would back off.

That's my rant for the week. Happy Closings to all!

Ah, the new wave of how to buy a house in the sea of toxic assets. Also known as someones gonna be Dreamhome. If you have yet to venture into purchasing an REO aka Bank Owned, this is what "as is" IS! You make the offer it gets accepted by the Bank aka toxic asset servicer.

But before you get a fully executed contract in hand the buyer will have to sign 30 pages written by a lawyer (to cover the banks a$$) and this document will basically tell you they are selling "as is" with no repairs! OK the good news is you will hire a home inspector to find out exactly what repairs will need to be done and the current state of the home.

The out come of the home inspection, always have one, will show what needs to be done to bring the house up to standard. When the Request for Repairs is submitted please do not be surprised when they hide behind, we will only complete repairs required by the buyers lender. And who notes these repairs? The appraiser, really he is not a home inspector and can only see the obvious. A clear termite, no worries the List agent had the termite inspection done when he took the listing. And the repairs have been completed, or have they? After the Home Inspection I will usually recommend the buyers have a second opinion, termite inspection done. This has saved my buyers thousands in repairs.

The second termite companies opinion may not get the work because the first termite company has guaranteed their work. Great go back and recheck here is a report that documents you missed a few things and the spot treatment has not done the job! This has been great for my buyers. Not to put anyone down but after the bubble and downsizing some not all Termite Companies have elected to over see a few things in order to get contracts with listing agents who have toxic assets to disburse.

Human nature? I don't care what you call it, it is wrong and not all termite companies are created equal. The war cry now is don't rely on seller contracted repairs, do the investigation, get a second opinion and make them be accountable. I work hard to be ethical, and complete my due diligence for my buyers and so should all agents.

When my dear Friend sent me this link I was really impressed. I started coming to Temecula in 1993 for the Paint Horse Shows held here. At first the name really got me. Temecula like Dracula? What kind of name is that? Pronounced Ta-Mec-U-la not Temy-Kula! The vineyards stretched for miles winery offering tastings of their latest production. Hot air balloons coloring the morning sky. And old town Temecula with it's rich cowboy wild west heritage. And the convenience one hour to the beach, or to the sky resorts of Big Bear. I loved everything about Temecula and noted if I ever got the chance that is where I would want to live!

Well it just so happened my then husband took an early retirement and in 2002 my dream came true, we bought and moved to Temecula. And so did about 50,000 other people. Tracks were springing up faster than the grape vines. And with the growth came the crash in 2007. And with the crash came more people wanting to raise their families in this safe beautiful oasis.

Temecula has become a bedroom community for San Diego and Orange Counties. The homes are predominately built in the last 10-15 years. The HOA's offer great amenities geared toward families. Sports parks are the best and the schools are the best. Who wouldn't want to live here?

This came on an appraisal, I think it gives a great history of Temecula from then to now.

Through the mid-1960's the economy of the Temecula Valley centered around cattle business and agriculture. The last years
of the 1960's and early 70's witnessed the beginnings of dramatic change in the Temecula Valley. Engineers, contractors,
heavy-equipment operators and real estate agents quickly edged out the cowboys and Indians as the main customers at the
local establishments. Pickup trucks, towing horse trailers, trucks hauling cattle and tractors rigged with farm implements
were replaced by cement mixers, lumber trucks and industrial grading equipment. Sales activity switched from cattle, hay
and grain to subdivided real estate acreage.
The Kaiser Land Development Company marketed the valley's attractions actively. Soon, the area became known as
Rancho California. Many land sales were accomplished by means of limited partnership syndication, which helped to
spread awareness of the area. One side effect of this high-profile development was a second tier real estate boom in land
suitable for avocado groves and grape vineyards on the east side of the valley. The value of plant able land skyrocketed.
The late '70s brought changes to some of the original Old West sites. The Long Branch Saloon was converted into a
meeting house, while the Stables Bar became the site for retail stores. Although the Swing Inn remained, new restaurants
began to open.
The I-15 corridor between Los Angeles County and San Diego was completed in the early 1980's and the subdivision land
boom began. When Rancho California incorporated in December, 1989, the citizens voted to officially name their city
"Temecula". Since then, the community has experienced tremendous growth in population as buyers were attracted to the
relatively lower pricing of housing, and the ability to commute to either San Diego or Riverside employment districts.
The Wolf Creek community is made up of tracts by different builders, some of which are still in construction, and is located
near the Pechanga Casino - Indian gaming casinos have become large employment centers and business establishments
over the past decade.

This was in my e mails today from an all cash buyer and I am sure like many RE agents you have also faced this same scenario. It goes like this......

"Is there any one who wants to sell for cash? Please advise regarding good deals. Bank owned preferred. Over 20K lot. Under 275K. Motivated sellers only."

My response is thus.....

Dear Mr. All Cash Buyer,

The Banks are holding tight on comparable market values and will kick out an all cash deal if less than a financed offer. The best deals for cash are homes that cannot be financed because of faults. Like the kitchen was torn out or the house is unfinished. The banks are looking at the bottom line, how much they can recoup. If they have to wait for a financed offer at or above their asking price they will. Cash deals can do well with a Short Sale that has been approved and the buyer has walked and the bank will force a trust deed sale if a cash buyer that can close in less than 30 days. As I am sure you are aware most all the Bank Owns and Short Sales are the result of bad loans with high interest rates and 100% financing. These notes were then sold on the secondary stock market to foreign investors. The defaulted mortgages are not held by the by the banks but are being serviced by the banks. So the banks are not as desperate as the media would have you believe. They get paid for negotiating the sale. If it takes a longer amount of time to sell they make more money, so they do not feel a need to sell quickly at a greater loss than market value. The influx of a vast amounts of sales information in a geographical target market and supplied data as to the sale of homes has provided a platform basis for home values that is easily accessible to the banks servicing the sales of homes.

All homes sales in this area are 30-37% less than what they sold for in the Real Estate bubble in 2003-2006. The majority of the sales I have represented in the past year have been "all cash" deals. Like you the buyers where under the impression that because they are all cash buyers their offers would have priority over a financed offer. The truth became obvious after 5 or 6 rejected low ball offers that the bank owned homes would only acceptt offers with the highest bottom line. And if that meant they had to wait two weeks longer for escrow to close, they did. The biggest advantage an all cash offer has is that it can close escrow quicker than a financed offer. Financed offers need a minimum of 30 days to validate the buyers financial qualifications, appraise the purchase, and then fund the loan. We are still in a multiple offer situation especially on highly desirable homes. If a financed offer and an all cash are the same price at market value the counter offer to the all cash offer can be 1. The appraisal contingency be removed 2. Close in 20 days or less 3. Home is sold "as is" with no repairs to be paid for by the sellers.

So with that being said I my question to you is what is a "good deal" to you? A home for less than market value? Offering $150,000 for a home that is listed on the MLS for $200,000 and getting it? I am not seeing that happen in this market. Cash maybe king but today it comes with contingencies, as mentioned. My thought is they are all great deals because of the drop to real values for today's market. The prices paid in the bubble where not real values but over inflated prices because anyone with a pulse could qualify for a loan with 100% financing. That was not a real market, what we have today are real prices stabilized by equatable sales of like properties. I see homes listed below market values and most always they are priced this way as a desperate attempt to secure an offer to stop a trust deed sale, more times that not by the time the banks servicing the Short Sale will counter the offer at market value, and the buyer walks, and the home goes through the sale. I have seen a few sell a few thousand dollars below market value but the buyer has had to wait months to close the deal.

Sorry to be so long winded but I think the truth about today's market is pretty much black and white. All cash is not a magic bullet that will win a home sale at below the current market value. I see this day in and day out. The biggest misnomer is when the media touts that home prices are falling again they are generalized lumped together nation wide statistics. There is no way you can come home values in Southern California to prices in Missouri. This a a apple and orange scenario. Home sales and values in Missouri cannot be equated to home values in California. Orange County California for an example is still with in the same values during the bubble. Temecula Murrieta is located in Riverside County and was the fastest growing county in the nation for three years. Home building was at it's peak, but was also financed with high interest adjustable rate mortgages, hence we have a higher that normal amount of distressed home sales today.

I would be honored to help you find a home, I just need a little more information from you as to wether you intend on living in the home or is it for investment purposes? Also I will need a bank statement current within the last 30 days to submit with your offer as "Proof Of Funds" this is required now with all offers or a loan approval letter from a direct lender. I am afraid the banks or sellers now require all offers to be validated as to the buyers ability to close the deal. Best Always, Tere Rice

Truly last week I watch seasoned Realtors shutter when this hit the hot topic in the News! The topic of the day with both my peers and buyers was this so called drop in sales. But it had an opposite effect here in So. Cal specifically Temecula. I had 7 buyer showings looked at 60 homes and wrote five offers!!

What this translate to buyers is BUY BUY BUY! Prices are down yippee! Seriuosly just yesterday I had 6 new buyer prospects call about homes set up appointments to see homes and one wanted to write an offer on a house sight unseen.

My business is screaming, hard to stop and catch my breath. So far this year I have closed deals and am over the four million in sales with three in escrow and more to come.

The worse the media makes out the home sales, and this has happened every time the more buyers come in to the market. Of course I did notice the stock market takes a hit. So does this mean people are pulling their money out and buying something tangible? You tell me!

Happy Trails!

Tere Rice Realtor* CSSN
DRE#01079287
CERTIFIED SHORT SALE NEGOTIATOR (CSSN) 100% Closer on Short Sales
Buyers And Sellers
Hours M-F 8-6 Weekend Showings by appointment only Please Check out my website to search for homes! www.temecularanchandhomes.com

Real Deal Properties
28581 Old Town Front St. #200
Temecula, Ca. 92690
951-693-0093
fx 951-253-9261
web site www.temecularanchandhomes.