Crescent City Real Estate News

Seller's update for the Del Norte County real estate market.

I felt compelled to write this seller's update on the Del Norte County real estate market because I am fielding A LOT of questions on this topic these days.  I am getting a lot more calls for listings, which generally happens this time of year, and many of the listings are for upper end homes, $350,000 and above. 

I feel like a broken record saying the same stuff over and over again, and believe me, my clients do not want to hear it, but I call it like I see it based on statistics and quantifiable market data, not smoke and mirrors.

The market data says it's slow for upper end homes.  That should come as no surprise to anyone, but believe it or not it does.  I still have clients who think the market has picked back up.  Well it has, but for homes priced $200,000 and under, they comprised 66% of all residential sales from October 1, 2009 to today. 

Why?  We have a financing vehicle for these folks and they've been priced out of the market for so long that there's plenty of pent of demand.  Most are first time home buyer's with some investors sprinkled in. Investors usually have cash and first time home buyers have the USDA Rural Housing Program.  Financing a home above $350,000 can be a bit more challenging, plus most buyers in that category have to sell their home in order to buy. 

The long and short of it is only 4 homes priced over $350,000 have sold in Del Norte County since 10/1/09 and none have sold since that date that were priced over $550,000. 

Do I see that changing?

Well yes.  We are coming out of our slow season, so sales overall should pick-up, however, even if upper end home sales doubled, that would mean about 1.5 homes in that price range would sell a month!  There are currently 60 homes for sale over $350,000 in Del Norte County, so, if they sold at the rate of 2 per month, it would still take over two years to sell all the current inventory (the absorption rate). 

If you must sell a home that is in the over $350,000 price range, you will want to be competitive. In other words, the nicest home for the money.  If your home is not competitive, it probably will not sell in a timely manner. 

Another thing to consider...will my home appraise? 

You may list your home for your dream sales price and get a full price offer, but if your buyer is using financing, you have a HUGE hurdle to jump over with the appraisal process.  A bank will not lend more than the appraised value, so even if you get that dream price, you may have to face reality by renegotiating your price because of an under-appraisal.  It's happening more and more so be aware of that possibility.

You can lessen your chances of having your home have appraisal issues, long days on market, and other problems by working with a FULL TIME agent who has actually sold a bunch of homes and is successful.  Your chances greatly increase in selling your home in a timely manner if you work with a professional who follows their market and sells a fair amount of homes.

If you have questions about the Del Norte County real estate market I would love to answer them. I like to talk about our market statistics and how they affect you the home buyer and seller.  Give me a call.

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County Real Estate Market Report for January 2010 -

January 2010 had 43% more sales than January 2009and only 2 of those 14 sales were REO's, which is encouraging. 4 of January's sales were mobile/manufactured homes in parks bringing in the median price sale for the month at $163,000. 

Listings are at a seasonal low of 223 with the median price of listings at $229,500 and average days on market at 223.

For listings $200,000 and under, the DOM for the 98 listings in that price range are 168 days or 14 months.  The average DOM for listings above $200,000 is a whopping 253 DOM (or 21 months) for those 128 active listings.  The upper end homes are really taking a beating right now.   

REO's (foreclosed homes) make up 14% of all Del Norte County listings right now with most REO's selling in under 60 days. 

Last year most of the REO's I dealt with were owner occupy, but I'm seeing a definite increase in investor held foreclosures.  I think we are going to see foreclosures increase for the coming months with their continuing influence of lowering prices.  Click here for suggestions on purchasing Del Norte County foreclosed listings.

If you must sell in this buyer's market, be sure to have your home competitively priced and use a reputable, full-time agent who tracks your market.  Proper pricing is where it's at. 

Please call me if you're looking for an agent; I will be happy to give you an assessment of your property based on trends and my knowledge of the Del Norte County real estate market. 

Fran sold more homes in 2009 both in number and volume than any other Del Norte County agent.  Put her knowledge and experience to work for you!

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Call to Action - Proposal makes businesses into tax collectors and forces small biz to make interest-free loans to state.

California continues to have a severe budget crisis - $20 billion in the hole. Unfortunately, one of the solutions being proposed in Sacramento is yet another budget gimmick - an onerous 3% independent contractor withholding mandate on businesses and public agencies.

Any business/agency hiring an independent contractor (anyone who receives a 1099-MISC) will have to reduce every payment by 3%, and is responsible for remitting that money to the Franchise Tax Board, the state tax collection agency.

• Almost all companies, agencies and non-profits of any kind will have to withhold.
• Almost anyone who receives a 1099-MISC will be withheld upon, including builders, plumbers, real estate agents, attorneys and health care providers.

Under This Proposal:

• The 3% will be withheld even if the business owes no income taxes for the year due to losses/slim profit margins.
• The state gets to use the money-interest free until tax return time the next year.
• Money is taken out of the pockets of businesses that is needed to keep business afloat, make payroll and pay bills.
• Implementation will be extremely costly and complex for businesses and state and local government agencies.
• The mandate is ongoing and permanent for businesses/agencies.
  

All for a one-time money grab that is merely an acceleration/borrowing that generates very few new revenues for the state!  

Call to Action:

1. Add your business's name to the growing coalition against this proposal! To be added, simply e-mail laurie.lively@calchamber.com. Your business's name will be added to the coalition fact sheet.
2. Write or call your legislators in the Assembly and Senate. Visit CalChamber's grassroots page to view a sample letter and/or look up your legislators' phone numbers.
3. Spread the word. Forward blog and the fact sheet to other businesses that should be concerned.
   Thanks for your help!

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Here are a few suggestions for buyers and their agents looking to purchase a Del Norte County foreclosure.

I have been working with many different banks and asset managers over the last few years and there seems to be a few common threads in this process:

1. Don't low ball your offer if the listing is less than one month old.
   
   I have not personally seen a bank accept an offer more than 98% of list price within the first two weeks.
   
   What does that mean for you, the buyer and your agent?  Do not submit a low offer if you really want the property.
   
   The theory behind this, the bank has paid 3 real estate agents for price opinions and more than likely an appraiser as well.  The asset manager knows their property is priced well (in most instances).  
   
   Also, in most instances, the asset manager is bound by the directives of the bank/investor who owns the home and they will not allow the asset manager to go below a certain percentage on price.
   
      
2. Banks require that all buyers have a letter of pre-approval or proof of funds so submit it will the offer. 
   
   This is just good business sense.  Your agent should have made sure you have this in hand before they show you ANY properties, not just foreclosures.  Why waste time looking at properties, if you do not have the means to purchase.  That is the surest road to buyer frustration I can think of. 
   
   
3. Banks, in most instances, will not do repairs?
   
   The bottom line for a bank is their net and will this escrow close?  Inspections can affect both the bottom line and the buyer taking a hike.  Don't get me wrong; buyer's need to know what they are purchasing, however, if you truly want to write a clean offer that has a better chance of acceptance, why not pay for your inspections yourself?
   
   
4. If you are asking the bank to pay for your closing costs, and the property is recently listed, you should mitigate the seller concession by raising your asking price.
   
   So, the home is recently listed at below market value, you know their are multiple offers and you are asking below list price with a seller's concession?  Why would you think this would work?  I haven't seen it work yet.  If a reader has seen this scenario work would you please leave a comment?  Thanks. 
   
   
5. Banks/Investors reserve the right of approval of all offers AND you are not in contract until the fat lady sends back the contract and bank addendum SIGNED BY THE POWERS THAT BE at the bank.
   
   THE LISTING AGENT WILL CONTINUE TO SUBMIT OFFERS AND THE BANK WILL LOOK AT THEM UNTIL THERE IS A FULLY EXECUTED CONTRACT.  I know this is frustrating, but there it is.  Ask your agent to quickly convey all counter offers and quickly sign and respond to them.  This should keep the process from dragging out. 

A few other suggestions:

• Use a full time agent- I can not stress this enough.  Don't you want someone who is working at this full time?  You need someone working on your behalf that is accessible and can quickly respond to your needs.  Many an offer is lost because the agent was unavailable.
  
  
• It isn't personal - The bank isn't picking on you if they countered and you accept, but in the mean time a better offer is submitted and they choose to go with that one.  Remember, it isn't over until the fat lady sends back the fully executed contract.  Your agent needs to understand that so they will stay on top of things.
  
  
• The bank isn't necessarily the bad guy - Out of my last 7 REO listings, 5 have been investors who continued to take their tenants rent knowing they were going to lose their property (many investors own more than one home), but didn't bother to say anything to the poor tenant. Guess who is left to deal with that.  Yep, me.  All that to say that the bank, in many instances is already losing quite a bit of money in dealing with tenants, personal property left in the home and disgruntled owners who "stick it to the man" by trashing the home on their way out the door.

So there you have it.  If you are coming to the sand box, you better be ready to play. Have your proof of funds letter or pre-approval letter in hand, expect to pay for some inspections and pay above list price if you are asking for a seller's concession.  If the home is extremely desirable, be ready for multiple offers.  Best of luck to you in your purchase.

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

The California Endowment to invest millions of dollars into Del Norte County over the next 10 years.

If you live in Del Norte County and have not heard about the California Endowments Healthy Communities Initiative, you will very soon as the Endowment begins to pump money into the community.

The California Endowment was formed 10 years ago when Blue Cross made the decision to go from a non-profit company to a for-profit.  When this change was made, Blue Cross was required to form this non-profit endowment which has been investing money, by way of grants, to programs all over the state of California for 10 years.

These grants were making an impact, but the Endowment decided the way to have a long-term, lasting impact would be a long-term investment in some of the neediest areas of the state.The Endowment envisioned the Healthy Community Initiative and chose 14 areas of the state that will benefit from this initiative, but more importantly, the areas chosen showed the promise of a brighter tomorrow by way of a strong commitment from the community, both government and private citizens, to work toward permanent solutions to their problems.

Del Norte County and Tribal Lands is one of the 14 communities chosen for the Healthy Community Initiative.  Del Norte County, once a thriving timber and fishing community has been severely impacted in the last 20-30 years by the loss of those industries.  The largest employer at present, government agencies, far exceeds the average for the rest of the state.  The Healthy Communities Initiative will look for long term solutions in bridging the gap in health care, the high school graduation rate, employment issues, and more.

The California Endowments commitment is for 10 years.  In the first 3 years the Endowment projects investing $500,000 to $3,000,000 a year, years 3-6, the Endowment projects the investment to increase and then taper off in years 7-10. 

Folks, in a community the size of Del Norte County, population 29,000, this is HUGE!  If you aren't involved in the process, get involved.  I have become involved and have been impressed by the amount of top notch people who are participating in the process.  This is exciting stuff and is going to transform our county now and for future generations.

Thank you to all the wonderful people who have given hours and hours of their time to bring this initiative to Del Norte County.

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS