Archive for April, 2008
The Luxury of Santa Barbara and Montecito Oceanfront Real Estate
categories: Luxury Real Estate, The Oceanfront Areas
Santa Barbara - The Oceanfront
The oceanfront along the Santa Barbara coastline is referred to as roughly the 20 miles that stretch from Goleta and Santa Barbara to Montecito and Carpinteria. This entire coastline is blessed with some of the world’s most scenic, clean and safe beaches, as well as some of the most spectacular estate sites. As a surprise to many, most of our coast and beaches in Santa Barbara face south/southwest as opposed to direct west, as most of the California beaches do. This more south facing orientation along with the Santa Ynez coastal mountain range as a backdrop allows the Santa Barbara coastline to enjoy wonderful temperate weather year round. Average winter temperatures fluctuate mostly between 55 and 68 degrees with summer temperatures fluctuating between 60 and 80 degrees. The average temperature in Santa Barbara seems to often be set at around 68-72 degrees.
With the constant high demand for oceanfront homes, there is limited inventory of true oceanfront homes available for sale at any given time. This along with the natural beauty of our coast has lead to large appreciations in the value of any oceanfront homes in the Santa Barbara area. Most true oceanfront homes start around $4-5 million and can go up to $40 Million. In many of the coastal areas you can also still find homes with values ranging from $ 1 Million to $5 Million that sit only a block or 2 off the beach.
Further Reading: The Secret of Santa Barbara and Montecito CA Oceanfront Property and Estates, The Secret of Santa Barbara and Montecito Oceanfront Property and Estates, Santa Barbara Luxury Property Sales Continue to Set Records Year After Year, The New Expansion of Luxury Townhomes and Condos in Santa Barbara, Looking for a Qualified and Ethical Real Estate Agent in Santa Barbara CA?, Montecito California Luxury Real Estate
View: Montecito and Santa Barbara Luxury Real Estate
Search: Properties in Santa Barbara, Montecito and Surrounding Areas
Receive: Personal Listings and Updates of Santa Barbara Oceanfront Properties
View: Map of Santa Barbara Area, Map of Montecito
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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Where Are Those “Jumbo Conforming” Loans with Lower Interest Rates?
categories: Real Estate News
Here is a quick fact in the life within the lending business that no one can refute…
The larger the mortgage, the riskier the loan and therefore the tougher it is for a home-buyer to get a mortgage approved.
Now weeks after the Economic Stimulus Act of 2008 changed the maximum amount on a conventional conforming loan from $417,000 to about $729,500 in high valued areas such as Santa Barbara CA, substantially lower interest rates on these larger loans are not being doled out to consumers as many thought they would be.
This new adjustment and the conforming loan was in theory supposed to reduce the interest rates on the larger, so-called “jumbo conforming” loans. With these newly available larger loans at rates comparable to the older conforming loans, consumers would now be able to re-fi and/or purchase newer homes in high cost areas such as we have here in Santa Barbara and Montecito. This has not happened quite as we expected…but might still happen here in the coming future from what I am hearing via some lenders.
…Time will tell
So far with the state of the economy and the liquidity crunch, larger loans with lower interest rates are not being bought up by the secondary markets that purchases the loans from the lenders…therefore the lenders have yet to offer these much anticipated larger loans at lower interest rates.
Additionally, these newer conforming loans are only being offered to borrowers with higher credit scores and are demanding stiffer qualifications than conventional conforming loans.
So where does this lead us…From what I am hearing, jumbo conventional loans with lower rates are probably in our future in the coming year, just not as soon as we expected.
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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Hope Ranch CA Real Estate Market Update - First Quarter 2008
categories: Hope Ranch, Market Statistics / Updates
I have summarized below a quick look of the overall statistics for the Hope Ranch CA area through the first quarter of 2008.
- The total number of single family homes sold in Hope Ranch was 7. The number of current pending sales for single family homes is 0. The number of current active listings for single family homes is 10. These statistics are reported from the MLS and do not include any activity out of the MLS or private pocket listings.
The lowest sale in Hope Ranch was for $1.6 Million on Ramitas Road. The highest sale in Hope Ranch was a home for $4.6 Million on Via Bendita.
Please feel free to contact me directly if you have questions or would like more in depth information and statistics about:
2) The area around your personal home
3) A specific area in Hope Ranch
Further Reading: Information and Articles about Hope Ranch
View: All Market Statistics
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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Carpinteria Ca Real Estate Market Update - First Quarter 2008
categories: Carpinteria, Market Statistics / Updates
I have summarized below an easy to look at brief outline of the overall statistics for the Carpinteria CA area through the first quarter of 2008.
- The total number of single family homes sold in Carpinteria was 9. The number of current pending sales for single family homes is 5. The number of current active listings for single family homes is 22.
- The total number of condos / townhomes sold in Carpinteria was 7. The number of current pending sales for condos / townhomes is 5. The number of current active listings for condos / townhomes is 55. (these active units include one major development that just put 30+ units on the market)
- The total number of PUD’s sold in Carpinteria was 1. The number of current pending sales for PUD’s is 0. The number of current active listings for PUD’s is 0.
The lowest sale in Carpinteria was a banked owned condo for $250,000 on Hickory Street. The highest sale in Carpinteria was a beach front home for $7.5 Million on Rincon Point.
Please feel free to contact me directly if you have questions or would like more in depth information and statistics about:
2) The area around your personal home
3) A specific area in Carpinteria
Further Reading: Information and Articles about Carpinteria
View: All Market Statistics
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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Montecito CA Real Estate Market Update - First Quarter 2008
categories: Market Statistics / Updates, Montecito
I have summarized below an easy to look at brief outline of the overall statistics for the Montecito CA area through the first quarter of 2008.
- The total number of single family homes sold in Montecito was 44. The number of current pending sales for single family homes is 14. The number of current active listings for single family homes is 88.
- The total number of condos / townhomes sold in Montecito was 3. The number of current pending sales for condos / townhomes is 2. The number of current active listings for condos / townhomes is 11.
- The total number of PUD’s sold in Montecito was 0. The number of current pending sales for PUD’s is 1. The number of current active listings for PUD’s is 1.
The lowest sale in Montecito was a unit in a four unit complex for $1.36 Million on San Ysidro Road. The highest sale in Montecito was an Estate site for $21 Million on Ortega Ridge.
Please feel free to contact me directly if you have questions or would like more in depth information and statistics about:
2) The area around your personal home
3) A specific area in Montecito
Further Reading: Information and Articles about Montecito
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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Any Great Short Sale Opportunities in Santa Barbara and Goleta CA?
categories: Buyer's Resources, Real Estate News, Short Sales
Over the last 4-6 months we have started to see an increase in the amount of short sales and foreclosures here in the Santa Barbara area…especially in the Goleta and Carpinteria areas. Almost all of these have predominantly fallen into the price point from $250,000 to $800,000.
Question - Is a short sale a great opportunity to buy a home for cheaper than market value?
Answer - It can be if you have the time, patience and the wherewithal to deal with a lot of potential frustration, uncertainty and waiting?
What is a short sale? - A short sale is simply an unfortunate situation where the current owner of the property owes more on the loan than what the going market value for the property is or can be sold for. For a buyer, this can be an opportunity to purchase a home at a definite discount. But it is not as easy as it seems on the surface.
Steps taken for a short sale:
1) The owner has to first contact the lender to let them know that they have learned (via comps and/or their Realtor) that the market value for their property is less than what they owe on the property. The seller then lets the lender know that they can no longer make the payments on the home and thus need to sell the home as a short sale. Lenders are obviously not excited to hear this and will do all they can to encourage the owner to keep making the payments if possible. Only once the owner finally says that they will not be able to continue to make the payments and need to sell, is it then determined that the home will now be a short sale.
2) The owner now has to market the property for sale, but herein lies the Catch-22 and the start of the waiting and headaches. At what price do you market the property for sale and at what price do you “accept” an offer since no one knows the exact price the lender will accept. To officially go into escrow, the lender has to approve of the purchase and the terms of the contract. If you then call the lender to talk about this, they will give you absolutely no guidance. Here is where the headaches start to manifest….the cart before the horse.
The lender will only respond to you about pricing, terms and the sale of the property once you have:
- an explanation letter and proof of the hardship of the situation of the owner
- an “accepted” purchase contract
- proof of the buyer’s ability to purchase the home
- copy of escrow instructions
- estimated closing costs
- previous tax return slips from the seller
- employment paychecks from the seller
- copy of a TDS
- past bank statements and potentially several other documents from the seller
And here is where the headaches continue. Once you have all this documentation you have to fax it into the lender. There is still no point person for the entire transaction. Just fax it in to the number given and hope all goes well. The waiting now builds. After about 1 week you will most likely get a call from someone at the bank who lets you know that they have received all the correct documents that they need and a negotiator has been assigned to your case. Say thank you if this happens. If they don’t have all the correct documentation, one missing signature etc., you then have to obviously get this to them and then again wait for several days for a response. Finally they have everything and the real wait begins.
Over the last 6-10 months, the amount of short sales and foreclosures has increased so drastically for the lenders that it can take 5-9 weeks to get an accepted offer. Usually the listing agent will be called within 2 weeks after submitting all documentation to simply be notified that the case is progressing and a negotiator will call you “soon”. Finally after around 3-5 weeks they will send out an appraiser to do an official appraisal. This then will take another 1-2 weeks at least. Once the lender then determines that the appraisal is OK and the price and terms that the seller has “accepted” is OK, the lender still has to get approval from the investors who will be buying the loan. The investors ultimately determine whether the price and terms are acceptable and whether you now officially go into escrow. If they do not accept the terms then they will counter the buyer and you go from there.
Note* - During this entire 5-9 week period of waiting, any other offer(s) can be submitted at anytime and the bank will look at these. The potential buyers have no idea of whether their offer is acceptable or not, or whether one buyer has written only $1,000 higher than the other. The banks then have no obligation to accept either offer, or to counter one offer vs. the other.
If you do get your offer accepted after a general 5-9 weeks of waiting, then you have roughly a normal 30-45 days escrow to close on the property. And…the property is sold as is. Hopefully now you will not discover during a home inspection any repairs that are needed that are not acceptable to you based on your offer. Additionally, the buyer will have to stay in contact with their lender during this time to make sure that the loan they were “getting” is still a go. Most lenders can only lock a rate for 30-45 days and so your loan situation might change during this entire waiting period.
So…yes, if all does go well and you can deal with the waiting and potential headaches, you most likely will get an accepted offer at somewhat below market value.
View: Current Inventory of Short Sales in Santa Barbara CA
Further Reading: Are Short Sales a Good Path to Santa Barbara Real Estate Ownership?, Any Great Short Sale Opportunites in Santa Barbara and Goleta CA, Strategies to Buying a Home in Foreclosure Here in Santa Barbara CA., Potential Negatives to Buying Santa Barbara Homes in Foreclosure, Any Great Deals on Homes in Foreclosure in Santa Barbara
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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My Home has Declined in Value…Can My Property Taxes be Lowered as Well?
categories: First-time Home Buyers, Real Estate News
With the decline in the Real Estate market here in the Santa Barbara area and thus the value of our homes in the last several years, I have been asked several times about the possibility of having property taxes reduced. For those who bought at the peak of the market or close to it, I would definitely contact the Tax Assessors office about your situation. Most likely there is a good chance you can have your property taxes reassessed.
2 Easy Steps to Take:
1) Contact your Realtor and ask them to send you a list of comparable properties that have sold around your home in the last 6-9 months.
2) Call your local Tax Assessor’s office and set up an appointment to meet with them and bring your data of recent sales.
Here is an article I came across that talks about this topic.
Further Reading: Is My Realtor a Santa Barbara Neighborhood Specialist in My Area?, Search the Santa Barbara, Goleta, Montecito CA MLS for Free, Plan For Your Santa Barbara Remodel Now, So You Don’t Go Crazy Later, The 2 Major First Steps in Buying a Home in Santa Barbara CA., Little Known Advantages of Blogging Realtors…Santa Barbara and Montecito CA.
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
Subscribe to Receive Personal Listings of Santa Barbara Area Properties
Search the Santa Barbara Area MLS
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