First-time Home Buyers
Any Great Deals on Homes in Foreclosure in Santa Barbara?
Categories: Buyer's Resources, Carpinteria, First-time Home Buyers, Foreclosures - Bank Owned, Goleta, Santa Barbara
This seems to be a common question I get here lately in Santa Barbara and Montecito, mainly from first-time home buyers and investors. Like many things in life though, it simply depends.
The common myth out there seems to universally be that homes in foreclosure must be the best opportunities to buy a cheaper home or get a “great deal”. Here is the big problem with this line of thought, at least in a town such as Santa Barbara or Montecito.
First, when you see statistics in the newspapers or online about foreclosures in the Santa Barbara area, it almost always refers to Santa Barbara County which includes the areas of Lompoc and Santa Maria. Both the Lompoc and Santa Maria areas are extremely different than Santa Barbara proper and really have little to do with the Real Estate market here. For almost everyone, when you talk about Santa Barbara on a Real Estate scale, you are talking about Santa Barbara, Montecito, Hope Ranch, Carpinteria, Summerland and Goleta. All of these towns are one continuous area stretching about 24 miles from Carpinteria in the south to Goleta in the north. Santa Maria and Lompoc on the other-hand are both roughly another 55 minute drive north of Goleta and represent an entirely different Real Estate scale. So when you see statistics about this area and possibly a listing for a nicer single family 3 bedroom 2 bath home, just needing a little buyer’s vision in foreclosure for $475,000, we are not talking about Santa Barbara proper.
Most of the foreclosures I have seen in Santa Barbara have arisen in the last 18 months and have been at the lower end of the price scale represented mainly by condos from about $300,000 to $600,000, as well as some single family homes from roughly $650,000 to $1.2 Million (based on the MLS listings). The problem with these foreclosures is that many of these homes were bought at the height of the market and now the previous owners have walked away from their mortgage payments as the market has dipped. Many of these buyers also bought with very little to no money down and therefore banks now mostly have larger expenses on these properties than what the market will bare. The banks still need to sell these properties to recoup some expenses, but their “discounted” price is often just today’s market price.
So are there any deals on homes in Foreclosure here in Santa Barbara?
Yes, but not that often and you have to be quick. I have personally seen about 15-20 foreclosures that I feel are “good deals” since early 2007 and these have all been in escrow within a few days. As a buyer or an investor here in the Santa Barbara and Montecito areas, the best thing to do is to work with an experienced full-time Realtor that knows the pulse of the market and knows what you are looking for. Who owns the property should be one of the least important factors of your decision process. The best is to simply look with your Realtor at what homes are available and make comparisons of the properties based on location, price and other important personal factors and then decide what is best for you, not what is in foreclosure.
Any thoughts or comments on what you have seen personally?
View: Current Listings of Homes in Foreclosure in Santa Barbara CA.
Further Reading: Potential Negatives to Buying Santa Barbara Homes in Foreclosure, Strategies to Buying a Home in Foreclosure Here in Santa Barbara CA.
Kevin Schmidtchen - Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to comment below with any thoughts.
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Trust Me, Don’t Worry - Santa Barbara Real Estate Predictions for 2008
Categories: Buyer's Resources, First-time Home Buyers, Real Estate News
One rule you should learn as a Realtor is to never say, Trust Me Don’t Worry. Well, I guess I am breaking this rule (partly at least) and giving you one prediction for Santa Barbara Real Estate in 2008.
The part of the rule I am breaking is the Trust Me part, so here it goes.
Trust Me, there are already many investors in 2008 poking around that recognize that a buyer’s market in Santa Barbara is an excellent time to purchase real estate.
The Santa Barbara real estate market is very unique for many reasons, some of them basic economics with demand for homes often being greater than supply. From 1997 until 2005, this basic supply v. demand economic concept has been one of the major influences in the skyrocketing real estate values here in Santa Barbara and Montecito. Real estate investors have also been a good portion of this demand from 1997 to 2005. As the market slowed the last 2 years and prices dropped, real estate investors were then the last people to be seen. This though is starting to change.
I myself have had several calls and conversations with investors in the last few months of 2007 and into early 2008. I have also started looking for property with 3 different investors just in the last 3-4 weeks. I have also talked with other agents who say they as well have “investor clients” who are starting to get active and serious.
For many, condos are still a big question, but single family homes are starting to find a level ground and investors are starting to talk about writing offers. Exactly how much activity this will be is anyone’s guess. What I can say for certain is, Trust Me, the Santa Barbara real estate investor has started to become active again.
Kevin Schmidtchen - Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to comment below with any thoughts.
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The 2 Major First Steps in Buying a Home in Santa Barbara, CA.
Categories: Buyer's Resources, First-time Home Buyers, Real Estate News, Santa Barbara
The path a buyer takes to home ownership in Santa Barbara should always start with these two major steps.
1 - Hire a Full-time Santa Barbara Real Estate Agent that Works Often or Exclusively with Buyers.
A CA real estate agent has a fiduciary responsibility to look out for the best interest of their client. This duty is clearly spelled out in the Disclosure Regarding Real Estate Agency Relationship as:
(a) Diligent exercise or reasonable skill and care in performance of the agent’s duties
(b) A duty of honesty and fair dealing and good faith
(c) A duty to disclose all facts know to the agent materially affecting the value or desirability of the property that are not know to, or within the diligent attention and observation of, the parties.
There are a lot of legal and arduous steps that are taken from the first stage of deciding to look for a home to buy, searching for a home, finding a home, going through escrow, to finally closing on the property. Make is easy on yourself. Contrary to the thought process of “the-do-it-yourself-mentality”, you will most likely save a lot of time and money along the way by working with a hard working full-time Santa Barbara real estate agent.
Regarding the issue of costs to use a real estate agent, the buyer does not have to worry about paying any commissions to their real estate agent in California. These commissions are paid for by the seller. A good buyer’s agent should sit down with you and specifically talk about what services they can provide to you and how they work. Next, the real estate agent should find out all your needs, your ability to purchase a home and how you would like to go about searching for a home. If it feels like a good fit, then you are off an running. At this point, most all of the work is put into the hands of the buyer’s agent where they can then start to earn their commission. The buyer’s next step is to….
2 - Get Pre-qualified or Better yet, Pre-approved.
Any seasoned Santa Barbara real estate agent will ask their client if they are pre-qualified or pre-approved with a lender as one of their first questions. If you are, then this is a great sign to the agent. If not, then this is your immediate next step. There is no real point in starting the search for homes unless you and your real estate agent know a price point to start with. It is embarrassing and a waste of time for both the buyer and the real estate agent to begin a search for homes in the $1 Million to $1.4 Million range for example and to then find out weeks later that you are only pre-approved up to a purchase price of $875,000. The flip side of this is that you might be presently surprised with your financial situation and can potentially afford more than you thought. Most good real estate agents will not go beyond a few days work without knowing that you are pre-qualified or pre-approved with a lender. As far as finding a lender, ask your real estate agent for referrals or get recommendations from friends, family and co-workers you know of whom have purchased a home themselves.
Kevin Schmidtchen - Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to comment below with any thoughts.
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Who Wants Low Mortgage Rates and a Home in Santa Barbara?
Categories: Buyer's Resources, First-time Home Buyers, Real Estate News
The average 30 - Year Fixed Mortgage rates are at their lowest levels since the middle of 2005. If you have any questions about loans and rates, I would be happy to talk with you and to point you in the direction of a few great lenders here in Santa Barbara, Montecito and the surrounding areas.
Kevin Schmidtchen - Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to comment below with any thoughts.
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