Bonnie Sterling

Looking at all 15 for sale in the "agent remarks" for the local MLS this statement was probably the most helpful in my opinion "Units in Casa de Oaks are to be owner-occupied per City of Thousand Oaks, Housing Division. There are some exceptions for leasing, but no investors." I also located a web site for City of TO Housing division. It does have an area that talks about the exemptions. I hope this is helpful. With 15 units for sale, most being preforeclosures and REO's try not to get your heart set on just one and try to get the very best deal you can. Seems that these may be poised for more "price adjustments" surely some Seller is going to have to start to give in on the prices if they hope to make their property more likely to sell than the others. Good luck! - Yesterday, 12:54

Hi Jennifer, First let me say that unless you have a compelling reason to purchase a home right now, I agree with Barry, price are adjusting down more all the time. However, homeownership is something people feel strongly compelled to do, it is something that may have tax or personal emotional value over and above the investment value, which is always good in the long run. So, if you can and want to wait, I'd say until fall, then do. If you want to own a home now, I'd say just make sure you look for an exceptional value. As a first time buyer, you may not know that the Buyers Agent, the person who would assist you with purchasing a home, is usually compensated by the Sellers Agent for "bringing the buyer" to the transaction. You will pay escrow, title and perhaps a brokerage administration fee during your escrow and usually only if you close your purchase. Sometimes I meet first time homebuyers who think they had to do all their research before they bothered a Realtor. I say, go ahead and bother someone. A Realtor should be able to tailor a database search to your preferences and then you would recieve properties that meet your criteria in your email inbox, rather than seaching around for properties online. You should look for someone who is patient and willing to work with you until you are ready. Lots of my clients are my "contacts" that I meet on RealtyTrac - the nations number one foreclosure web site, where I am the area representative for Simi, Moorpark and TO. This weekend, I just wrote the second offer on a house for a couple I have been in contact with for almost two years now. We waited and planned for when they were ready to purchase. I think they will own a home before Summer.

Also, you should look for an agent who has experience with short pay transactions. I think it would be to your advantage to work with a Realtor who has both negotiated the short pay on behalf of the Seller and also on behalf of a Buyer, that way the understand the whole picture. Short pays can be a very good way to save money but they can also be frustrating too. It "works" less than 50% (probably more like 25%) of the time. You will make an offer and then usually wait about 3-4 weeks to hear from a bank. The prices that you see, which seem attractive and in your price range may also be too good to be true. During that 3-4 weeks the bank or banks will gather data about the home sales of the comperable homes in the area. They often come back with a counter to your offer and then if you counter, you will be waiting again. So, I tell my buyers that they should keep looking and they should not go pick out carpet swatches at home depot. With Short Sales, it's not over until you have the keys in your hand. I had on that was "approved by the lender" end up at the trustee sale auction anyway. We got it straightened out but only after a lot of work and heartache for the buyer.

If you would like local assistance, I would invite you to contact me for further information. I have said it before and I'll say it again. I would be skeptical of an out of area agent, who says they work Orange County, who offers you local assistance. Unless they previously resided here or have an additional residence in the area, I would be concerned that they lack knowledge about the area. So, whoever you pick, I would suggest you keep it local. Good luck and I hope to hear from you. - Tue May 13 2008, 20:21

Well, dont beat yourself up about it. It is pretty common in the market right now. As we discussed in a previous blog, you may be advantaged by your delay. Good luck! - Mon May 12 2008, 12:26

Hi Sabine, In an odd coincidence, I just had this same situation over the weekend and since the research proved different from my speculation earlier today, I thought I would add the comment. Buyers I am representing bid on a foreclosure property this weekend. It is an investor owned foreclosure, the property did not revert to the bank at the sale. The foreclosing amount was around 640 the home was purchased at trustee auction for about 200,000 less and then marketed for just over 550. When my buyers saw the home, it was sparkly clean and move in ready. Purchasing at Trustee Sale auction requires all cash, research on title and taxes and a willingness to get the property in any condition you find it in when you take posession. If this all sounds possible for you, then it is an excellent way to pick up a bargain. - Mon May 12 2008, 11:36

Hi Sabine, As the local RealtyTrac Agent, I get asked this question all the time. My guess is that if you are viewing the property on RealtyTrac or another foreclosure web site, and you may only be seeing part of the picture. Often, there is more than one note that was outstanding on a home and you are only seeing the note for the foreclosing lender. Regardless, the bank will always ask market value or just below when remarketing the property. The actual sale price will always reflect what the Buyers are willing to pay. So, if you see a home as worth only 350 (and I'm not saying your do) because of the REO situation and the house is marketed for 520 and worth 480 or 540 the home will sell for it's market value. The REO managers typically arent sensitive to local real estate conditions so, when they price a home, they may or may not take the recommendation of the Realtor marketing the home. As a result sometimes they overprice it and the home will sit on the market for a very long time. Sometimes they adjust the price and find themselves doing exactly what some typical homeowners do, chasing the market down. Other times the home gets put on the market at a very good price and I represent buyers who are one of multiple bids, offering over asking price, even in this market. There are exceptions but typically the percentage of savings they are willing to accept off asking price (REO Sellers) has been less than 10%. I have negotiated some that are more but 9 times out of 10 it is more like 93-94%.

Your question reminds me of how my father-in-law used to try and buy a property. He always wanted to know what the owner paid for the property (people still ask this now). Really, what does it matter if the Seller was an orginal buyer in 1960 he isnt going to be in a position to desire less for the homes sale price. He probably has more emotional attachment to his kitchen cabinets that he loved when he remodelled them....15 years ago. Also, in this go around of foreclosures, there are a lot of people who owned their home a long time and overstepped their safe borrowing practices that are in foreclosure so, what they paid has very litle relevance.

Basically, what I recommend, look at everything in your criteria and price range within 15-20%. Sometimes the REO Seller is not the most motivated. Think about it this way, who is most motivated? The couple selling their home to go join the kids and grandkids in Colorado OR the guy who is pushing the properties file across his desk, knows that his numbers wont look good to his boss if his percentage of sale to asking price is low and goes home at the end of the night to his own life. So, my advice, look at everything within a certain percentage and dont get hung up on the data. - Mon May 12 2008, 09:48

Hi Connie, City of Thousand Oaks has a wonderful planning, building and safety division. Have you tried asking in those offices? - Sat May 3 2008, 17:57