At Home in Upland

April 2012 Real Estate Market Report for Those Who Can't Stand Dry Numbers.... Upland, CA. By Brad Rachielles

Watching the local real estate statistics is part of my work. If I don't know the numbers and know what they mean, I probably couldn't make very good recommendations when representing my clients.

But that doesn't mean that EVERYONE gets the same satisfaction from cold, hard spreadsheets. It is really more important to know the bottom line and what the stats are saying. So, here, in less than three minutes, is most likely what you will want and need to know before we go hunting for your new home.

ENJOY!

If you REALLY, REALLY want the spreadsheet, and I just can't talk you out of it, You just passed the link for more detailed information than most can stand..... and mentioned in the video.

April 2012 Real Estate Market Report for Those Who Can't Stand Dry Numbers.... Upland, CA.

The question of whether to rent or buy a home seems to be endless. It's a personal, financial and even emotional decision for most and the basis of the financial part is ever changing.

I've corresponded with  Lyn Sims in the past several weeks about other matters, and have come to respect her opinions and expertise. Even though her perspective is based on property in Schaumburg, IL., I've seen the very same trend in the SoCal Inland Empire.

Because this is SO timely, I am choosing to re-post Lyns article and want to thank Lyn for allowing me to present this to my readers. Because this is Lyns work, it is only fair that any comments go to her for her benefit.

Brad Rachielles

Spring Cleaning Should Include A Lot of Shredding.

Do you have mounds of "OLD" records and files that are no longer needed? Now may be a good time to get rid of thise files and have them shredded securely (and that may be an operative word for businesses like REALTORS) and support a local church in their fundraiser.

Resi-Shred

will be at

Good Shepherd Lutheran Church

1700 N. Towne Ave.

Claremont, CA

this Saturday, April 14 from 9:00 AM to 2:00 PM.

Resi-Shred will shred your box-fulls of paper at $4 per box - Box size is one that holds 10 reams of letter sized paper.

This is for individuals AND businesses too (it is certified confidential).

Proceeds to go to the Good Shepherd Property Committee Projects.

Spring Cleaning Should Include A Lot of Shredding.

Your Listing Photos Don't Have To Look Cattywampus(SP?).

It's almost become a comedy to see some of the photos displayed on the MLS. Clearly, some are simply documentary. Many are rushed, and the ones with dirty clothes and unmade beds are simply shameful as well as unprofessional of the agent. This is the "horrid" group.

Yet many of the better photos, of clean and well prepared properties, and even those taken by some paid photographers (note that I didn't use the term "professional") come out looking fair to many.... but frequently exhibit distortions that could have been corrected with better lens selection or POST PRODUCTION ADJUSTMENTS. I'm not talking about adjustments that alter the truth, but adjustments that bring in-camera distortions into line to accurately represent the truth.

Often, the photographer uses a very wide angle lens to be able to get everything into the picture. There may be value in that in some circumstances, but more frequently than not, significant distortions are created, some are easily correctable using proper camera angle or software. Here's what I mean:

STRAIGHT & PARALLEL LINES

A grid was created on a computer. All lines, both vertical and horizontal are absolutely straight, Optical distortions don't come into play on the original

Using a camera with a wide angle lens to shoot the same grid as pictured above, but not well centered, The photo on the right has those straight and parallel vertical lines now heading for a vanishing point off in the distance where they will eventually meet. This is called keystoning and is the camera's perspective. This effect makes doors look narrower at the top if shot from a low angle, wall corners angle out away from each other and rectangular windows have unrealistic shapes.

The CURE(s)

The good news is that these may be easily correctable. Using a tripod, try setting your camera at different heights, the best will likely be at the same height as most viewers eyes. The average  American male is about 5'-7" tall, and his eyes are just a couple of inches lower. Then adjust your zoom lens focal length to get rid of the distortions.... moving backward several feet and using a normal focal length setting rather than very wide angle may help for "whole wall photos".

That's the easy way.... if you have the room to move back and the camera adjustable to make it happen. I think you will be surprised though.

Taking a little more technical know how, software offers great solutions. Some time ago, my computer came pre-loaded with Adobe Photo Elements(R), just one of many affordable and manageable products for photo editing. Within 60 seconds after loading the program, I achieved the following results on a sample photo taken from Flickr.com:

For all practical purposes, a homeowner may be happy with this photo, but note the vertical lines of the paintings, windows and the wall juncture. This is a perfect example of the keystone effect that can be corrected with software. By all means, expect to get photos from your professional photographer with vertical lines straight up and down.

 By going into the "correction function of the menu bar and selecting "Skew", the keystone effect was easily adjusted out. Very minor cropping was required to bring the photo back to a rectangular shape, but little was lost and the window edges are straight up and down. The paintings look like they are hung right and the far wall junction is vertical. This was a rush job and a little more precision may have been possible. Someone who knows the software well may comment with other ideas.

With some practice certainly there could be improvement.

This post production is just one of many things to make your original photography look like what they eye really saw or the mind perceived. Similar or even free software on line lets you do color correction to bring walls back to their true color, correct the contrast or brightness, cropping out the pajamas on the floor, create collages and add frames.

Your Listing Photos Don't Have To Look Cattywampus(SP?) You owe your client the best that you can do.... and the tools are available. Best of Success!

Photo: CC on Flickr.com 4/9/12 by BFS_man

NARRATED March, 2012 Real Estate Market Report for the Upland, CA Area

By: Brad Rachielles

If there was ever proof that the national statistics do not represent the local situation, this real estate market report may do it. Buyers market? Not here! Not now! See what I mean.....

I hope that this NARRATED March, 2012 Real Estate Market Report for the Upland, CA Area has been enlightening. We all know that a flood of numbers can put even dedicated clients to sleep. BUT, if very specific and detailed numbers are what you REALLY want to help you make buying or selling decisions, they are available. You'll find Upland, Rancho Cucamonga, Fontana, Pomona, Ontario and several other city's represented there.

Thanks for joining me.

Walk A Mile In Someone Else's "Checkbook"?

By: Brad Rachielles

Yes... You're right. The often used phrase is said to be a wise old Indian adage and more completely is possibly "Don't judge a man until you have walked a mile in his moccasins". It's all about empathy... cautioning one to think about what a person may be going through that caused a decision or an event to be done differently than what we might have done, given our own very different lives.

A news story this morning about gas prices causing financial problems for families seems hard to relate to.... for me. Then I thought about a recent real estate class covering home owners in financial distress and the empathy thing kicked in.

30 days cash reserve is all that many many American families have. If forced to use this small cushion for emergencies like an unexpected doctor bill, unforeseen auto repairs, an adjustment in an Adjustable Rate Mortgage, if the wage earner is sick for a couple of weeks or if day-to-day expenses (maybe high gas prices contribute here) chip away at the budget reserves, hard choices will be forced upon the family. Pay for gas to get to work or pay the insurance bill. In all too many cases...  pay for food, or pay for shelter. Very tough choices. This doesn't even include any of the really devastating circumstances life can present.

Some choose to walk away from their homes with the idea that starting over without that burden is the best solution. In the extreme, it may be the only solution, but too many do not understand the long term consequences of this action.

The title was purposely changed. With the growing number of families facing foreclosure, it is SO IMPORTANT FOR REALTORS(R) TO BE ABLE TO WALK A MILE IN OUR CLIENT'S CHECKBOOK in these situations and to be able to present viable potential alternatives to foreclosure if one exists. Sometimes, guiding a client to specialized professional (an accountant, a lawyer, a lender) can solve the problem. A distressed homeowner likely has CHOICES to foreclosure that they don't know about.

Walking A Mile In Someone Elise's "Checkbook" may help you present these choices.

Photo Credit: heidielliot in Flickr CC as of 3/1/2012 AM

The February numbers are in. One of the interesting things to watch is the way home bnuyers are financing their purchases. This month, FHA led the choice with well over 1/3 of the transactions being guaranteed FHA, almost as many went Conventional, and just under 1/4 of the buyers paid Cash.

Alan May from the Chicago Area has focused on the viability of FHA in today's market. Like one of his commenters, FHA helped me secure my first home loan back in .... the year isn't important, but know that they have been around for some time.

So, read on. Thanks Alan for allowing me to re-post this well written and valuable article. The comments have been disabled to encourage readers to click over to Alan's blog and share your thoughts with him.

Brad Rachielles

January 2012 Real Estate Market Report for Upland, Rancho Cucamonga and surrounding CA Cities.

By Brad Rachielles

I'd like to start my January, 2012 Real Estate Market Report with positive news.... so:

• The weather has been mild... that's good news,
• The Super Bowl was very exciting... more good news...  and
• I earned a new Real Estate designation... again, good news.

Obviously, you noted that the January Market conditions were not included in my list. While there was a positive start to this article, January seems to be less than an exciting month around here.

January closings are often down (see the chart to the right), and this January is no exception, Year-end relocation's may have been done before the holidays. Showings are hard with the family events in November and December, Winter break is over. REALTORS(R) are finalizing their planning for the year, and families with school age children would rather move in the summer months.

Reports from other parts of the country, and even national statistics are indicating "BUYER's Market conditions with inventories of unsold homes above the six month mark. Not so in the Foothill Communities of SoCal. While several individual cities in the area are approaching this condition, the combined average of the 10 city market has just increased to only 4 weeks of available homes for sale (another verification that "REAL ESTATE is LOCAL). This is clearly a SELLER's Market condition, but heading more for a balanced situation.

The Average Selling Price of all closings was again down in January, both from the same month in 2011, and from December of 2011 by 4.9% and 3.4% respectively. This is very much like the price declines in January of 2011.

This market is of the nations hardest hit when you think of foreclosures. For years, home buyers were able to get loans that they didn't qualify for, and when the job market started to decline, and home values started to decline, many were caught in loans that they could not afford and were unable to qualify for refinancing. "Their virtual PIGGY BANK BROKE". Standard transactions represented only 39% of the local sales in January and Short Sales 38.6%. While there may seem to be a reluctance to shop for a Short Sale property because of the extra time for the transaction to close (148 days vs. 76 for a Standard transaction in this market), it is clear that many are finding that a Short Sale is "DO-able. That's one reason why I decided to go for the CDPE (Certified Distressed Property Expert) Designation.

What's In the Future?

Nobody knows for sure, but I personally feel that things will get better sooner than later. Foreclosures are a big problem and the thinking is that many home owners will be considering Short Sales as one of their options to foreclosure as may more and more lenders. Staying in their homes may be best for sellers in distress, and I see increased efforts to help them learn of their options (there are possibly choices). When lenders streamline their Short Sale processes, more buyers may be agree-able to doing Short Sales and the inventory may start to move. Sidelined sellers may then see that their competition is less and less the distressed property so listing becomes more appealing.

I'm not sure that interest rates will stay at these historic lows... I hope so. The dream of home ownership is still a big part of the American Dream. It may become more realistic working with a REALTOR(R) that is well trained to handle the tough sale.

When I started thinking about this post, I wasn't sure how it was going to end. Happily, there is much to be positive about.

This has been my January 2012 Real Estate Market Report for Upland, Rancho Cucamonga and surrounding CA Cities.

Call Me To Investigate YOUR Possibilities.

Photo credit: katerha via Flickr CC licensing as of 2/13/12

The process of buying a home is much different than purchasing most other products. There is no consumer magazine that gives one a ranking on the property, that shares consumer experiences on a specific property, lists and compares the features and benefits of similar product or indicates that it is the "best buy". When homes are concerned, the consumer MUST become his/her own advocate by doing a complete investigation. That is called Due Diligence.

Pacita Dimacali, Alain Pinel in Alameda County, CA presents a wonderful explanation of the need to do your homework before making it a done deal. Pacita has written about California real estate for several years, and has allowed me to repost this valuable information for my SoCal readers. Thanks Pacita.

Know that I have disabled comments on my blog so that you can click through to Pacita's post and leave a comment there for her reply.

Enjoy! Brad Rachielles

Buyers need LOCAL Numbers to Make Good Decisions. Why and Where to Get Them.

By Brad Rachielles

As we drill down into the vast array of sometimes confusing real estate statistics, you will see that the goal is to make better and more savvy consumers of my readers.  My last article addressed why the National Numbers are of little or no value to home buyers or sellers. National Numbers are for National Policy makers - Local Numbers are for LOCAL Decision Makers (home buyers and sellers).

WHAT STATISTICS SHOULD HOME BUYERS USE?

Of great concern are numbers having to do with home prices. Understanding pricing on today's market factors into the bidding process when making an offer. It often determines whether a buyer qualifies financially to buy a property.

Even more important is the property's VALUE. Occasionally, beautiful homes are listed and they languish on the market unsold. If these sellers set the price based on the love, care and work that they have put into the home, or what they want as proceeds from the sale, the price may be too high. The rules of supply and demand kick in. Buyers won't pay more if they can get what they percieve to be equal or greater VALUE close by.

Of coarse, pricing and value are absolutely related to the SUPPLY of homes available for purchase. If the choices are limited (as they are in many of the SoCal Foothill communities) you have more buyers vying for fewer homes and the competition for the great homes becomes keen. The market favors the seller - prices become higher - Again, supply and demand kicks in. An oversupply of homes swings the scale to the buyer.

Price and Value are determined by comparing basically EQUAL PROPERTIES that are CLOSE BY and sold RECENTLY. So...

WHERE DOES THE BUYER GET THIS INFORMATION?

With today's technology, listing information is easily available to the home buyer from online sources like Realtor.com and others. While nicely presented, it is mostly sales blurb designed by the agent to entice the reader, providing very basic information. There is just not enough data for determining similarity of properties.

The best source is your REALTOR(R). Using the Multiple Listing Service, detailed searches can be performed of all homes within any specific area and for any recent sales time frames. Further, hundreds of features can be selected, assuring that the resulting information is for homes that are as close to matching your desired property as possible. They are COMPARABLE properties (Comps).

Of most value to the client, are the search results for homes that have sold. Here, the market has spoken. Buyers determined that the home value was appropriate and they bought it.

A complete search will also show you Active listings. These may be priced right, or the price may still be the seller's wishful thinking. Time will tell. Also interesting are those properties where the listing Expired without a sale. It is quite possible that the market has spoken here too - rejecting the property as not reflecting the value expected by the pricing. You should also look at Pending sales from the standpoint that they are really close to being sold... not quite, but close. An offer has been accepted... we just don't know the offered price.

When organized into a Comparative Market Analysis (CMA), you will get a good feel for Value, at a specific time, in a specific area and for a home matching your wishes. THESE ARE THE LOCAL NUMBERS BUYERS NEED.

"Buyers need LOCAL Numbers to Make Good Decisions. Why and Where to Get Them" has shown that good LOCAL information is easily available. Join me for the next in the series when I will present....

"Listing? Why You Should Think Ahead of the Market Numbers"