National Economic Woes will impact Simi Valley Real Estate

National Economic Woes will impact Simi Valley Real Estate

I am posting two clips from youtube. This first clip was from January 39th and the second is from May 6th; this should cause all great concern. The housing market is not going to recover anytime soon. Our national economy and our state economy are in serious trouble. Our banking system is at the heart of the matter and our banking system is what provides the cash to fuel the loans for people to buy homes. While I am bearish about our housing market, it is better to be realistic and not tabloidistic when talking about how to plan for the next home purchase or home sale. I see way too much false hype from my industry and the local news about Simi Valley homes for sale. Simi Valley Real Estate will recover, but this is going to be a long process and when we get to a balanced/stabilized market I hope that the system is changed to keep the nonsense of 5 years ago from ever happening again.

I posted an anonymous story sent to me via email on my Facebook public page (Ted Mackel Simi Valley Real Estate Guy on Facebook), I am not sure who wrote it, but it is a simple way to understand the mess we are in. If you know the author please pass it on to me so I can give proper credit.

Now 3 months later the same old story:

Tags: homes for sale, real estate, Simi Valley

HVCC impacts Simi Valley Homes For Sale

HVCC - HOME VALUATION CODE OF CONDUCT

History:

New York Attorney General, Andrew Cuomo investigated Fannie Mae and Freddie Mac appraisal practices. Fannie and Freddie (with the Office of Federal Housing Enterprise Oversight (aka - OFHEO) agreed to adopt new changes to how appraisals are processed in the mortgage industry in exchange for an end to the investigation. The HVCC arose out of this agreement and contains many positive and needed guidelines to clean up the industry. Unfortunately as with most bureaucracy, the agreement contains changes to how brokers and agents are able to work with appraisers. These changes will significantly impact the value of your Simi Valley home, impact the process of selling your Simi Valley home, possibly raise the costs to the buyer of your Simi Valley home and create higher risk for a buyer to enter into an escrow on a Simi Valley home purchase. 

What The HVCC means for Brokers:

1. Brokers (meaning, anyone compensated by commission tied to the loan) i. may not choose the appraiser(s) to be used for loans they originate and ii. may not engage in any communication with the appraiser(s). The selection of appraisers and all communication with appraisers is now in the squarely in the hands of the lenders. 

This means that brokers are not allowed to choose appraisers. This is important in that appraisers have traditionally been chosen based on quality of work and knowledge of the area they are appraising. This loss of  control of an integral part of the loan origination process, can possibly increase loan funding times and increase costs to the consumers in the form of longer rate locks and the need to order new appraisals if there is a need to change lenders.

1. Appraisals are made in the lender’s name and not the broker’s, if there is a need to choose a new lender for the transaction, then a completely new appraisal will need to be ordered. This will increase consumer costs and the time involved in the transaction.
2. Broker relationships with appraisers are rendered meaningless overnight.  Brokers will lose control over Simi Valley Real Estate transactions as appraisal clearing houses will assign appraisal work orders without regard to whether their appraisers have local knowledge for the area they are about to appraise.

What it means to Appraisers:

1. Appraisers must be registered with Appraisal Management Companies (AMC’s). Independent appraisers no longer exist and are forced into a relationship with an AMC. This forced relationship will cause the appraiser to give 40% or more of their income to the AMC. The average appraisal in the Simi Valley - West San Fernando Valley area runs approximately $400.00.  Now those appraisers will make $340 for the same work.  We can all assume with such a reduction in income, what might happen to the quality of the appraisals.  Appraisers that worked hard to build relationships and reputations for high quality work have overnight been stripped of their stature.
2. Appraisers can no longer engage in ANY communication with mortgage brokers, loan officers, agents, or others that may receive a commission in relation to a transaction. This is a unique predicament… appraisers are not allowed to talk to their clients, a restriction not placed on any other industry. Again, relationships and reputations appraisers have built are rendered meaningless overnight.

What this means to Sellers:

1. Delays.  The Buyer no longer has control over timing with the Lenders.  Lenders can just “blame”  the HVCC process if things are going slowly.
2. Increased time to process loans as brokers no longer control scheduling and  managing appraisals. This may necessitate longer rate locks or extensions of existing locks an expense to your buyer. This may also make it impossible for your buyer to adhere to the contractual time frames.
3. If the appraiser sent out from the AMC is new to your area or has not done appraisals in your area; they could significantly underestimate the value of your Simi Valley home unjustly.   Most areas like the homes for sale in Simi Valley have closing sales data located in several different data bases.  Ventura county and more specifically Simi Valley, has a distinction that the data crosses over into Los Angeles County.  Membership to multiple data sources in imperative to get the correct data to create a proper valuation.  Appraisers assigned from AMC’s that are not cognizant of this local anomaly can create serious problems for the buyer and seller of properties in Simi Valley and East Ventura County. 
4. The HVCC is an attack on your Simi Valley home’s true value as appraisers that have long term experience working certain the Simi Valley area may no longer be assigned the Simi Valley area.  The appraiser that is coming to a Simi Valley home for sale may not be “local” or have the necessary local knowledge for the idiosyncrasies that are endemic to Simi Valley homes for sale.
5. If the HVCC process causes a buyer to back out voluntarily or involuntarily, now you are back at square one.  Consider, that loan requirements and programs could have changed over the last few weeks; interest rates could have gone up and competing properties could have come on market since that buyer entered escrow.  Your next prospective buyer is now beginning the same process all over again.

What this means for Buyers

1. Delays.  A bad appraisal on a Simi Valley home for sale  you truly love and truly want to purchase will not help you get a “steal” on a Simi Valley home. A bad appraisal will only upset the seller and could ultimately cause your purchase to fall apart.  You will have money invested into the appraisal and inspections that will not be refunded if a bad appraisal kills your purchase.
2. The new process for ordering appraisals through the AMC can cause delays making it impossible for a buyer to remove financing contingencies in a timely manner causing tension and frustration for both the buyer and the seller.

While most agree that there needs to be better regulation and oversight on the appraisal business, the HVCC goes too far.  Good reputable appraisers exist in every trade area, they should not be penalized for the those that have created the problem.  Since the government has chosen to create rules that will negatively impact an already fragile Southern California Real Estate market; Buyers and Sellers need to better understand the process so they can work together through escrow in a proactive manner that will conclude in the original goal…. sale of a property.

Tags: HVCC, real estate, Simi Valley, Simi Valley homes For Sale

Simi Valley Homes For Sale Market Report May 31st 2009

My Video Commentary on the current Simi Valley Real Estate market conditions will follow shortly. For now the closing numbers up through the end of May are below. Oh Yeah, no we have not hit bottom yet…..I’ll explain later.

Tags: Market Report, real estate, Simi Valley, Simi Valley homes For Sale

Simi Valley Real Estate Market Report YTD April 30 2009

The table below contains the Simi Valley Homes for Sales numbers and closing numbers Year-To-Date April 30, 2009. One number that our Multiple Listing Service Statistical reports do not separate is the Active Listings. Our Simi Valley Multiple Listing service lumps the homes in “Back Up” status as active. This creates a false sense of how tight the inventory really is. For example if the average monthly sales rate for single family detached is 71 homes per month and we only have 175 homes Active that are not in “Back-Up” status then that is a 2.4 month supply of inventory, not a 5.54 month as our MLS report shows. 5-6 months is a very balanced market more is a buyers market and less is a supposed to be a Seller’s market. Prices are not increasing, but homes priced properly are selling fast.

Tags: Market Report, real estate, Simi Valley

Fannie Mae & Freddie Mac Look up for Simi Valley Home Owners

The government is doing everything it can to keep stability in the housing markets.  75 million was set aside to try and help 3-4 million homeowners with Fannie Mae and Freddie Mac backed loans get help with refinancing.  This assistance was designed to help those who are paying their mortgage on time with lower interest rate refinancing.  A website was set up so home owners can see if they qualify.  See http://makinghomeaffordable.gov/  

To check your Simi Valley address against the Fannie Mae and Freddie Mac databases  See:

http://loanlookup.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

Tags: fannie mae, freddie mac, Home Owners, Simi Valley

Simi Valley Home Owner Tip - Power Lines & Tree Trimming

Who is responsible for trimming the trees near power lines?  What should you worry about?

The service lines that come from the pole to your home will be maintained by Southern California Edison; however bushes, plants and trees that interfere with those lines are the responsibility of the home owner.  

What many home owners do not realize is that Edison will come and disconnect your service for FREE in the morning, so you can have trees trimmed or removed and then come back later in the day and hook you back up for FREE.  You will bear the cost of the tree trimming or removal, however many home owners mistakenly think there is a charge to have your service disconnected and try to have vegetation removed which can cause serious damage to your home if debris falls on or comes in contact with the service lines.  The weather head on your roof can be damaged and you would need to get an electrician out to fix it before Edison could restore your service.

The side benefit to all this is that in the case of my home the service lines were damaged by the trees and squirrels over the years and were in need of replacement.  While my service was dropped out for the tree removal, Edison came replaced the lines - new.  I was disconnected from the grid at 8:30 am and back online after the tree was removed at 12:30 pm.

A few ways to avoid all this as a home owner is

1. Know your vegetation.  The tree in my yard planted by the prior owner was planted in the wrong place and was too big a tree for my yard.  Consult with an arborist before planting trees.
2. Trees need regular pruning and trimming and cannot be allowed to grow on their own.  Consider the regular maintenance costs for large trees.
3. Always call Edison first before doing any home improvement near the service line for advise on how to proceed and how Edison may help you.

Tags: edison, home, home owner, Simi Valley

Simi Valley Real Estate Home Sales Market Update March 31 2009 YTD

The Charts in the video are posted below the table for further study.

Looking at each year, 2009 has started off with an extremely tight inventory. This is causing the competition, but if you look at the chart below, typically we should see tight inventory driving prices up, but this is not the case. The drop in the average sales price between December and January was significant. It will take a few more months to see if this market stabilizes. My big wonder in all this is what would the market be like if we had the higher inventory levels like last year.

Tags: market update, moorpark, real estate, report, Simi Valley

Video Technology helps sell Simi Valley Real Estate

(April 2, 2009 Pasadena California)  Simi Valley local real estate agent Ted Mackel with Keller Wiliams Realty presented on full motion video home tours and video blogging in real estate at the Los Angeles Real Estate Barcamp.  Attended by approximately 300 real estate agents, mortgage brokers and real estate related service providers, Mackel  gave a 50 minute presentation on the future of real estate marketing.  David Gibbons - Community relations director for Zillow.com was at the event and was commentating on Mackel’s presentation live over Twitter:

The conference was streamed live over the internet at www.dakno.tv/live and was continually pushed via the Twitter stream from attendees and those watching the streaming video.

Real Estate Barcamp, known as RE Barcamp among the up and coming stars of the real estate industry, is loaded with talented early adopters of technology.  The RE Barcamp format breaks all rules where competitors in the industry get together and exchange ideas on how to improve business, reach more people and better serve the areas they work.  

Mackel has been working with internet video for over a year to help sell homes and create viral content to promote Simi Valley to those who plan to relocate here.  When asked why Mackel is so passionate about this topic he explained.  “78 percent of internet traffic is watching video.  The average time watching internet video is 3.5 minutes. Google’s Youtube just went over 100 million viewers.  3.5 minutes is perfect for a full motion video listing tour.”  When asked why the real estate industry is slow to catch on to new technology, Mackel was quick to respond.  “Most of my competitors have a hard time using email efficiently, they are resistant to text and mobile communication; just are set in their ways.  The internet, website design and mobile communication is light years ahead what most companies are aware of;  I have to stay in touch with the people at groups like RE Barcamp so I can give my clients the best service possible”.  Mackel continued, “CNN, ESPN and many other traditional media powerhouses have embraced new technology especially on the mobile level.  Sites like Facebook are being over-run by the 30s, 40s and 50s crowd and bringing even the novice computer users into the high tech communication age. I can go on and on with how grandparents are staying in touch with their grandchildren via free online video services like Skype and a myriad of other tools, but you might need to give me a whole page in the paper to do it.  The fact is that technology is changing and improving exponentially, it’s becoming portable, mobile and consumers of all ages have embraced these developments long before my industry even reacts.”

Mackel further explained “video for real estate applications still has a long way to go.  The learning curve, the tools and the computer skills to produce video is still a significant barrier.  My whole industry has developed for Microsoft’s Internet Explorer and Active X.  The video production software on the PC side is still cumbersome and not as user friendly as on the Apple Mac side.  Because most real estate agents are so comfortable using Windows and Internet Explorer and confined to the platform due to industry software requirements; they will be locked out of the tools afforded by Apple Mac’s OSX.  The option of hiring a professional to produce a video tour is still cost prohibitive for the average property.  Most agents have a hard time putting together enough photos for a traditional Virtual Slideshow.  I will continue to blaze a trail in this area and provide this service to my clients whether their home is entry level or high end, I’ve come up with a formula that works.  In the mean time I am going to strengthen my relationships in the real estate tech industry so I can continue to improve”.

When asked what value can be gained from video use in real estate; Mackel Responded: “Number one, people can see my video blogs and video commentary and see if I am for real.  I have a ton of knowledge in real estate and what a better way to share that knowledge with people looking for help.  Number two,  my video listing tours, use of viral medial solutions and adoption of a mobile media marketing plan gives me new and better opportunities to promote my client’s properties.  The statistics support my ideas, I am taking advantage.”

You can find Ted at www.homebuysblog.com, Facebook, Linkedin and Twitter as @RealtorTed

Tags: Home tours, real estate, Simi Valley, video, Video Blogging

1st Time Home Buyer Tax Credits Explained for Simi Valley Home Buyers

Tags: Home Buyers, Simi Valley, Tax credit

Simi Valley Included In The Top 10 Most Improved Selling Zip Codes

A recent Businessweek article includes Simi Valley’s 93065 zip code as the 6th most improved area for real estate sales.  This is welcome news but when taken in context, the same period the year before was terrible.  Anything would have been an improvement over 2008.  The prices have continued to drop.  A stabilization in pricing is the news we are all waiting for as we have several tracts in Simi Valley that are already 50% below the highs.

1. 94533, Fairfield, CA (Fresno) (83% Distressed Sales)

2. 92376, Rialto, CA (Riverside-San Bernardino-Ontario) (90%)
3. 91342, Slymar, CA (Los Angeles-Long Beach-Santa Ana) (69%)
4. 92126, San Diego, CA (52%)
5. 33914, Cape Coral, FL (Fort Meyers) (70%)
6. 93065, Simi Valley, CA (Oxnard-Thousand Oaks-Ventura) (47%)
7. 95123, San Jose, CA (57%)
8. 85379, Surprise, AR (Phoenix-Mesa-Scottsdale) (71%)
9. 93722, Fresno, CA (Madera) (59%)
10. 95624, Elks Grove, CA (Sacramento-Arden-Arcade-Roseville) (69%)

Tags: real estate, Simi Valley