January 2010 Newsletter

2010 Here We Come.

Can someone tell me if I am going crazy? While packing away the Christmas ornaments, pangs of guilt hit me hard. I swear, everyone of my Mark Roberts’ fairies pleaded with their eyes not to be put back in their boxes. “We just got out” “Please, don’t do this to us.” It’s so lonely in here.” I suppose in many ways, the same holds true when thinking of the 2009 highlights.

Although it was a difficult year in so many way, if you really take the time to think about it, there were so many more gifts. Do it. Take a bubble bath, massage, or meditate and slowly go through the images in your mind, month by month of all you accomplished, witnessed and shared. I am willing to bet there are smiles a-plenty. What’s included in this month’s newsletter? Let’s see. There is the usual real estate market comparisons (it is what we do after all).

This month’s newsletter features articles on the local and national real estate markets, an update in our business, and upcoming events. Enjoy and be sure to click on the little video found at the end of the upcoming events.

South Lake Tahoe Market Update

The end of the year stats are in and the news is TERRIFIC (if you are a buyer.) The South Lake Tahoe multiple listing services reported that as of Jan. 4, 2009, the median home price at the end of December (when compiling data from the entire previous 12 months) had reached its lowest level since late 2003. In fact, the overall values have dropped approximately 35% since the peak in 2006. Be sure to check out the graph included at the end of this article.

Here’s the good news for home owners. Overall, the values have held pretty steady for the past three months AND the inventory is depleting. In fact, as of Dec. 31, 2009, the number of active listings for single family homes in the South Lake Tahoe area was 360 of which 70 are in escrow. This is the lowest inventory count since February of 2007 when there were 352 active listings yet only 25 were in escrow.

For the month of December, 48 homes were reported sold with a median home price of $346,500 (note that this is higher than the overall median for the previous 12 months reported above) as compared to the same month in 2008 where only 26 homes were sold with a median home price of $412,450. Of the homes sold this past December, those sold within the first 30 days averaged a sale to list ration of 99.22% Foreclosure sales had a heavy influence on these numbers.

So. Tahoe Median Home Price Graph

Souers & Pinnacle Update

Time is flying by and with amazement, we celebrated our third year of owning our new business. Now that I think about it, I guess we aren’t so new any more. In fact, with all of the change of companies and mergers in our area, we are almost “old school.”

With great pride (and a lot of hard work behind us,) the Pinnacle Real Estate Group was listed among the top three brokerages in overall sales throughout the South Lake Tahoe area. (Reneber the saying, #2 tries harder – watch out for us next year.) When you consider that the other two companies have at least three times the number of agents, our high ranking represents quite an accomplishment. We also personally ranked among the top five in agent production. Again, lots of work with great satisfaction.

On a final note, I am proud to announce that I will be serving as the 2010 President of the South Tahoe Association of Realtors. Although this position adds to the year’s work load, it also enhances my professional contacts and information sources. I look forward to the year and will keep you posted of highlights throughout the year.

Shame, Shame

This past summer, I experienced the most mind- boggling evidence of how “out of hand” the process of obtaining loans or short sales can get. Sadly, one of my clients was needing to sell his home for less than that which was owed (certainly not out of the norm these days.) We did find a willing buyer and in the process of trying to obtain short sale approval, the bank holding the note, hired a “team” to discover the true value of the home in today’s market. I won’t go into great detail, but let me share with you the following: That “team” in turn hired a real estate agent from out of the area that never even came to see the house. Through some investigation, we discovered that he hired someone through Craig’s List and together with some photos and mis-information, came up with a value that was far above current market value. End of the story? The short sale was denied, the seller lost the home in foreclosure and the bank ended up listing the home with that same out of area brokerage. And guess what? The home eventually sold for less that the offer we presented months earlier EVEN AFTER the bank had the home painted and new carpets installed. Sadly, this story is not unique. It has gotten out of hand. Really out of hand.

The incident above was the result of out of area agent working beyond their expertise and it cost my client dearly. Another area in which we are experiencing difficulties comes from a pendulum swing within the lending industry where lenders are no longer able to request a particular appraiser. They now put the bid out to a pool of appraisers wait to see who accepts the job. The problem here is that, once again, we are dealing with the potential of being assigned to “out of area professionals” working beyond their expertise, I have seen a two bedroom, one bath, no garage, 1970’s cabin appraise for nearly the same value as a three bedroom, 2.5 bath home with a double garage built in 2002. It’s crazy and often, pardon my language, a crapshoot.

Fortunately, signs of possible relief are on the way. According to the California Association of REALTORS®, agents and their clients “who encounter unlawful or unprofessional conduct by an appraiser may file a confidential complaint with California’s Office of Real Estate Appraisers (OREA).” These complaints of appraiser’s misconduct may be filed with the OREA may be made confidentially, but you should know that if future prosecution is a result, you may be required to testify in a legal proceeding. It’s a mess yet I feel as though great improvement is on the way.

The following list will provide resources in which to address such appraisal issues: compilation of resources for REALTORS® and their clients:

1. California Office of Real Estate Appraisers website is at www.orea.ca.gov.
2. OREA’s Consumers’ Guide: Filing a Complaint and the Investigation Process.
3. OREA’s Complaint Form and Instructions.
4. Text of the Home Valuation Code of Conduct.
5. Fannie Mae’s HVCC Frequently Asked Questions (FAQs).
6. Federal Housing Finance Agency Notice dated July 22, 2009 addressing certain HVCC issues.

National Real Estate News & Forecasts

Good Faith Estimates have been in use for many years. We’ve all seen them, signed them, tried to understand them. Yet, lenders have never been required to use a standard form. Starting Jan. 1 of this year, new rules will require lenders and mortgage brokers to provide customers standard estimate forms within three days of receiving a loan application.

This form requires lenders to combine all of the bank’s various fees, no matter what they call them, into one “origination charge,” with the purpose of allowing consumers to truly compare rates among various institutions. Although lenders are not allowed to increase the origination fee from that which was provided in the estimate, additional charges, including title services and recording charges, can increase by as much as a combined 10 percent.

Buyers and sellers will see another change within the HUD-1 form used by title companies prior to closing an escrow. This new HUD-1 includes a comparison of the estimated and the actual final costs, as well as a summary of the loan terms.

January Happenings

Lots of snow, perfect weather for the holiday tourists and 2010 is underway. Check out the highlighted events taking place during the upcoming weeks.

Jan. 9: It’s Hammer Time. MC Hammer will be performing at Harrahs. Doors open at 7:30 pm Jan. 10: USASA Giant Slalom amateur GS competition for all ages takes place at Sierra AtTahoe. Jan. 17: The UC Davis Aggie Marching Band will be entertaing guests at Sierrat At Tahoe Ski resort. Jan. 16: Another blast from the past with Tower of Power playing Harrahs. Doors open at 7:30 pm. Jan. 23: Snowbomb Slopestyle competition at Kirkwood. Registration starts the mroning of the event, competition all day and awards aroun 4pm. Jan. 23: Air Supply will be performing at Harrahs. Again, doors open at 7:30 pm. Jan. 24th & 31: Big fun at Kirkwood with the USASA Skier/Boarder X. Call 209.258.6000 for more information. Jan. 30: Relive the Twist with Chubby Checkers at Harrah’s. Jan. 7 & 21: Lava Cap Wine Tasting at Sierra At Tahoe Ski Resort from 3 – 4pm. Jan. 17 & 18: It’s UC Berkeley Big Band Days. What a day!There’s more – during the second half of the month, we will see Sierra At Tahoe hosting the premier adult ski racing series Jan. 23 & 24 and a group known as the Trespassers (an acoustic bluegrass Americana band from the Yosemite National Park) will be playing at the Divided Sky. Their original music is inspired both by the beauty of the wild surroundings and by the decline of natural places like it. The band is influenced by bluegrass, old-time, and gypsy-jazz. Their touring vehicle is fueled by recycled veggie oil. Sounds like a good time to us. Tahoe Home Lookout Services Don’t forget to check out the Tahoe Home Lookout services. Among the many services they provide are window cleaning, snow removal, monthly check-ups on vacant homes and so on. And soon on the scene – house cleaning. much more. This could be the perfect time to get ready for the upcoming stormy months. Check them out! Just click on their logo or the link below and rest a bit more this winter. Tahoe Home Lookout Services