Jordan Stuhlmueller

Thanks for the ForeclosureRadar.com post Tman! Hope all's well!!
~ jordan - Wed Jun 11 2008, 16:36

Hey Yev,

I do not have any information regarding financing of the offers on the Sunshine Terrace property, nor will the listing agent/bank reveal that information. I can say that in my most recent experiences, "cash is king", and the more money a Buyer can produce as a down payment, the stronger their offer appears. In this market many Sellers become nervous when they receive an offer with only a 10% down payment due to the fact that many of these Sellers are in a need-to-sell situation, and the Seller can't afford their property falling out of escrow due to the Buyer not being able to qualify for his/her loan.

Sorry I can not give you more information regarding the offers. Hope you're well Yev!
~ jordan elias - Thu May 15 2008, 12:28

This will be another interesting one to watch Yev. It has multiple offers and the bank is reviewing, and we'll keep an eye to see at what price it sells. We will probably see more of these properties trickle out over the next 8-10 months in prime areas like Studio City.

Thanks for the posting Yev!!
~ jordan elias - Thu May 15 2008, 10:42

Happy Friday all!

I am including a link to an article which contains interesting insight regarding home values in the U.S.

Thanks!
~ jordan elias - Fri May 2 2008, 09:45

Glad to see all of the recent activity on the thread!!

Deborah,
Congrats on being the three-hundredth response!

Hey Yev,
Thank you for noting the Coldwater Canyon price drop. I previewed this house a few months ago when it was listed in (or near) the 900k range. I am going to send you a private message with my thoughts on the house as I don't find it ethical to discuss my thoughts with the possible Seller/Listing Agent/Buyer participating on this site.

Hi S.,
I am responding to your most recent comments collectively. I feel as though many of your statements are blanket statements about why one should or should not buy or sell, not taking into consideration the various specific needs that individuals face. You appear stuck on the fact that Realtors as a whole are in the profession only to make money. As I'm sure some are, I believe the great majority are not. They have chosen this profession because they enjoy it; they enjoy working with people, helping people. Many Buyers and Sellers choose their Realtor because of familial relations or trusting referrals. In my business, it does not behoove me to misguide a client because there is a dollar sign at the end of the road. The happier my clients are after the sale/purchase, the better the chance my past clients will refer me new clients.

Tman,
I feel the need to respond to your statement, "Let's just be honest about it .. 2 years ago when it came to making a $15,000 commission or telling the client the property was priced $95,000 over market, the commission won".
There is a reason Realtors have a place in the housing market. One of the reasons is to assist Buyers in making an educated decision about their future purchase. Everytime I sit down with a Buyer who has decided to write an offer on a property, I show them the comparable properties. I show them the properties that have sold in recent months in their area that match the specifications of their future home, I show them the properties that are currently in escrow, and I show them the properties that are currently for sale. With this information, the Buyer is aware that they are placing an offer that is either below the current market value, near the current market value, or above the current market value. It is then the decision of the Buyer, and the Buyer alone, to submit the offer or not. You seem familiar with the process Tman so I am sure none of the above is new to you, but the content of your comment surprised me.

Thanks all and have a great Wednesday!
~ jordan elias - Wed Apr 30 2008, 09:59

Hey Yev,

Thank you for posting the link for that article! It is a very good "black & white" breakdown for potential Buyers.

I will expand on my thoughts soon.
~ jordan elias - Sun Apr 27 2008, 19:18

Hey Dan!

Thanks for the posts and roller coaster video. The "HotPads" map is disheartening, and I do feel desolation for those losing their homes, whether they can afford to keep them or not.

Hi John,

I'll use my last statement to Dan as a segue in answering your question. First, to clarify, if I am representing a Buyer today, they may choose to pay double in monthly mortgage payments to purchase a home in LA than it would cost to rent that same house. If this Buyer became part of the Jingle Mail trend, I would feel sorrow for the Buyer. I can't imagine it's a good feeling to lose one's home - whether one can no longer afford payments on the home (traditional foreclosure) or one decides to suffer the consequences of walking away (Jingle Mail trend). At the same time, if this Buyer is following the Jingle Mail trend, that too is the Buyer's choice. In my opinion, the smart choice for any current or future homeowner is to view their current or future home primarily as a home and not an investment. This has been a tough feat in California in recent years due to increased values. Now that values in parts of LA have retracted as much as 25%, I think it's a strong time for many Buyers to step up to the plate.

Fortunately, lender guidelines and prerequisites have tightened incredibly, and now the majority of our Buyers are coming in with 30%, 40%, upto 100% cash to purchase a home. Obviously, not all Buyers have large cash reserves available to apply to a property purchase. Those Buyers may want... may need to rethink their position in the current lending market, and therefore the housing market.

Finding my way back to your original question posed to Dot and me, I think people should pay what they feel comfortable paying for a mortgage that will provide them a happy and healthy place to live with as much freedom as they need. I am sure that's not the answer you're looking for, but it is not up to me to decide what makes one comfortable and happy in life. I can only guide and assist them in their process.

Have a great week all!
~ jordan elias - Mon Apr 21 2008, 11:26

Hey Guy!

Thanks for the comment and for joining the conversation. You are more than qualified to answer my original post and I'm sure the Trulia community would agree.

In response to your comment about "foolishly" believing the news, you are not foolish to believe what you read. However, I am very weary of the media's reporting because it is quite sensational. When the market is down, the media (generally) portrays the worst of "doom & gloom", and when the market is up, the media (again generally) hypes the increase in activity & values. I don't mean to suggest you (Buyers collectively) read and believe only what the NAR (National Association of Realtors), CAR (California Association of Realtors), or your local Realtor provide to you regarding market conditions, but that information may be a good diametric in order to find a truthful median.

Responding to your comment regarding Realtor credibility, take what "Joe Realtor" says with a grain of salt ( I know that's an oxymoron considering my status here on Trulia). My guess is you're friends with at least one Realtor in your area -- probably more than a few. If you trust that Realtor-friend, he/she should have no reason to lie to you. It is not tough to be optomistic as a Realtor because we can technically play with both teams. Personally, when experiencing a "Buyer's Market", I encourage my Buyers, and when experiencing a "Seller's Market", I encourage my Sellers. My goal is not to sell my Buyer a home with the intention of re-selling his/her property a year later as a short sale.

And regarding your previous $405,000 offer Guy, you are absolutely entitled to laugh. Even in an obvious down market, many Sellers are still too stubborn to realize their loss (virtual or actual). Obviously, that Seller has become more realistic, but for him/her it may already be too late.

All the best Guy and thanks again,
~ jordan elias - Fri Apr 18 2008, 10:57

I hope everyone is having a nice week! Below I am including an article regarding tightening guidelines with "walk-away" Borrowers:

"Fannie warns homeowners who walk away
Kenneth Harney
Sunday, April 13, 2008

(04-13) 04:00 PDT Washington -- The country's two largest sources of mortgage money have a blunt warning for anyone thinking about joining the growing "walkaway" trend, where homeowners stop making payments and months later send the house keys back to their lender: You will feel the pain.

On March 31, Fannie Mae sent out new guidelines to lenders intended for walkaways and other foreclosure situations. Fannie will now prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years, unless there are "documented extenuating circumstances." In those cases, the mortgage prohibition is for three years.

Even after five years, borrowers with foreclosures in their files will be required to make at least a 10 percent down payment, and will need minimum FICO credit scores of 680.

Freddie Mac, Fannie's rival, counts foreclosures as major credit blots for seven years, and a senior official said the company is now aggressively pursuing some walkaway borrowers "to preserve our deficiency rights" where permitted under state law.

The walkaway trend is particularly noteworthy in former housing boom markets - including California, Florida and Nevada - where many homeowners find themselves upside down on their loans, owing tens of thousands more than the current market value of their houses. If they invested little or nothing in down payments, some owners reason, continuing to make payments - even if they can afford to - may be throwing good money after bad.

A number of Web sites have popped up claiming to cut the hassles of bailing out of a mortgage. One company promises that clients "will be able to live in (the) home for up to eight months with no mortgage payments," after paying $895 for a customized plan. The same site says it will provide clients with "legal credit repair" to "improve your FICO scores."

Another Web site claims that "your credit can be repaired and (you will) be able to purchase a house in as few as two years" - after paying a $495 fee. Still another company says walkaways can expect "up to one year living payment free" as the lender goes about filing for foreclosure. That company charges $995 for its how-to-do-it kit.

Fair Isaac Corp. of Minneapolis, developer of the FICO scores used in most mortgage transactions, is unhappy at any suggestion that a foreclosure could be minimized or wiped away in a short period of time. Its scoring model counts foreclosure as a long-standing and severe event, nearly comparable with bankruptcy, with negative consequences for all forms of credit that walkaways might seek to obtain. That includes credit card applications, auto loans, student loans - and even insurance and employment.

FICO spokesman Craig Watts said that the impact of a foreclosure on an individual's score depends heavily on the payment history, length and number of credit trade lines in a consumer's file, but "it is always significant."

Robin Stout Migala, consumer outreach manager for Freddie Mac, said in an interview that "there are so many bad reasons for walking away" from a home loan. Not only are borrowers' credit standings wrecked - forcing them into excessively high interest rates on any credit they can manage to obtain. But they also face other potential problems, including federal income tax liabilities.

Federal legislation enacted last year allows homeowners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven. Walkaway borrowers, by contrast, have nothing forgiven, and the IRS may demand income taxes on the balance they never paid, according to Migala.

Many borrowers facing foreclosure today have endured serious financial crises, said Migala - loss of employment, loss of an income-earning spouse, medical issues, predatory loan terms - that led to their inability to make their mortgage payments.

When they apply for a loan from either Freddie Mac or Fannie Mae, she said, the standard application form asks whether they have ever experienced a foreclosure or handed over their deed in lieu of foreclosure.

If applicants check "yes," the loan is immediately shifted to manual underwriting. Every piece of information is scrutinized by underwriters, who probe for the facts surrounding the loss of the house.

For borrowers who faced genuine financial hardships leading to foreclosure, underwriters are likely to be more sympathetic a few years down the road. But if you walk away, here's the deal: Don't expect to get a new home loan - certainly not one with favorable terms - for five to seven years.

That's no matter what some promoter promised you online."

Take care,
~ jordan elias - Thu Apr 17 2008, 18:10

Hey John,

Thanks for posting the video link!

I have attached a link as well for anyone interested. Many have probably already seen/read this report. The report was created by Gary Watts who is a Real Estate Economist. I caution those who are already weary because this report reads very "ra - ra - real estate", but the statistics are interesting.

Hope we're all having a great weekend & enjoying this Southern California heat!!
~ jordan elias - Sat Apr 12 2008, 13:57

Hey Yev,

Thank you for the Street View link. I have used Google's Street View in the past, but only to match points of referrence since the photos are not often updated. Regarding the Kling house, I would guess your numbers on the remodel/rebuild are conservative. However, if one were to spend the money to remodel/rebuild that property, it would be difficult to realize the added value in this, or near future markets. In my opinion, there are too many issues with the location (ie: commercial use buildings directly accross the street, proximity to the 101, proximity to senior living dwellings, etc.). I'll be interested to watch what happens with this property.

Happy Thursday all!
~ jordan elias - Thu Apr 10 2008, 11:19

I am embarrassed by the recent surge in "thumbs up" for my original question (from 8 to 11 since the topic of thumbs up/thumbs down was addressed), but thanks! I am just thrilled to be involved in an interesting discourse with educated people. Thanks again to those who have participated!!

Yev,

Thank you for the chart. Is it quite comical and raises valid skepticism regarding Lereah's and Yun's commentary.

Trulia Roger,

Thanks for making me self-conscious about the thumbs up and/or thumbs down I may have placed. HA!

Hope we're all having a nice week,
~ jordan elias - Wed Apr 9 2008, 12:13

Thumbs up for the side note Yev! - Tue Apr 8 2008, 10:42

Yev,

If and when the Kling St. property does close, it will be interesting to see what improvements the new owner will make. Judging your earlier response to its apparent condition, many improvements are needed. I will say that a difference I've noted regarding home sales in the current market as opposed to 2 years ago is, 2 years ago location did not really matter. If a house (like Kling) was situated in lane 2 of the 101, it would sell, and fast, as long as it was in Studio City (of course, that is a comedic stretch -- or it was an attempt). Now, Buyers are more particular regarding location (as they should be). Just an observation.

S,

I understand that my original question was quite pointed, but please don't misunderstand the intention. When I referrenced the term "buyers" ("...explaing to their buyers why now is a great time to buy..."), I was speaking of qualified Buyers who were interested in buying a property at the time. Many were on the fence before the mortgage fallout, and many were still on the fence during the decline. Those were the Buyers I was specifically referrencing, not Tom, Dick or Harry sitting next to me at the coffee shop. My explaination reads more astringent than I intend it to be, and for that I apologize.

Thanks,
~ jordan elias - Mon Apr 7 2008, 17:01

Hey Yev,

Quick note: I just called the listing agent regarding the property at 12824 Kling St. because I wanted to go preview it, and I was informed that after 3 days on the market they have an accepted offer. The agent of course wouldn't tell me the purchase price, but my guess is that it's over asking ($599,900). We'll keep an eye on it and see if it closes.

Hi S,

Yes, the numbers are staggering. I used to think one could throw a rock in this town and hit an actor, but it seems to me that same rock would ricochet off the actor and hit 2 or 3 Realtors! Those numbers however are somewhat skewed because not all licensed Realtors sell real estate. There are a number of Realtors who keep their license active so that when the next "selling frenzy" appears, they are ready, willing, and able to sell. Maybe these statistics show the competition within our industry and why "dirty-dealing" Realtors exist in our marketplace, and why first and foremost, when choosing a Realtor to work with, TRUST between you and chosen Realtor should be criteria 1, 2, and 3!

Thanks!!
~ jordan elias - Mon Apr 7 2008, 15:11

Hey Yev,

Haven't been through this Kling house yet and I don't know what shape it's in, but it does (more or less) back up to the 101 on ramp. As well, it's half a block off Coldwater Canyon. At just under $600k, I think it's a pretty good price, but my guess is it's not too far off its true value.

Hi Lucas,

Congrats on placing your first offer. I would agree with you that there are still a number of Sellers who are not willing to realize the evident decline in their houses' value. Hang in there, and that original "delusional seller" may become a realistic Seller in just a few weeks. Best of luck in the process Lucas!

Thank you for the article Jan!

Take care all,
~ jordan elias - Sun Apr 6 2008, 16:45

Below is an article from the CAR discussing recent statewide activity in California.

"Thursday, April 03, 2008
Brought to you by CALIFORNIA ASSOCIATION OF REALTORS®

CALIFORNIA SALES IMPROVE TO PRE-CREDIT CRUNCH LEVELS

The California housing market continued to reel from the joint effects of tighter underwriting standards, the ongoing credit or liquidity crunch, and a softening economy. However, home sales have improved in recent months and are now within range of pre-credit crunch levels. Sales of existing detached single family homes exceeded 300,000 for the second month in a row with seasonally adjusted and annualized sales of 343,220 homes in February. Sales rose 9.5 percent compared to January when 313,580 homes were sold, but declined steeply from 480,170 sales in February 2007, equivalent to a 28.5 percent year-to-year decrease.

Sales have now increased four months in a row from a low point of 265,030 sales in October of last year, and are just shy of sales in the 350,000-range that prevailed in the summer of 2007 just before the credit crunch drove sales down. Based on C.A.R. research, the background or ‘baseline' amount of activity that occurs regardless of whether the market is in a slow or active mode is thought to be roughly 350,000 sales, given the state's demographics and stock of homes. During the worst of the credit crunch, activity fell below that range because of difficulty in securing funding for loans among buyers who otherwise could and would buy a home at this time. As time has passed, adjustments by both borrowers and lenders have enabled the market to move forward at a somewhat improved pace.

The median price, however, continued to decline by record margins in February. The median price in California was $409,240, down 4.8 percent from the January median of $429,790 and down by a record-setting 26.2 percent from the February 2007 median price of $554,280. The median price in February was 31.5 percent below the record median of $597,640 that was set in April of last year. The statewide median was last in the low $400,000 range during late 2003 and early 2004.

The credit crunch, tighter underwriting standards, and significantly higher jumbo loan rates all contributed to a steep decrease in sales of homes above $500,000 as a share of the statewide market. This affected the mix of statewide sales and gave rise to the record-setting 26.2 percent decrease in the median. -- By comparison, the average year-to-year change in median prices across the regions of California was a somewhat smaller 19.8 percent decline in February.

Even if monthly sales for the state have shown improvement in recent months, sales for all of 2008 are still expected to decrease 6 percent annually compared to 2007. Moreover, home prices face stiff headwinds because of the large number of distressed sales that are expected throughout the year. On the bright side, lower prices and mortgage rates help affordability, while higher loan limits in 2008 should provide some welcome relief from the credit crunch."

Have a great weekend all!!
~ jordan elias - Fri Apr 4 2008, 18:00

Hi Sylvia,

Thanks for the accolade! That was very nice & I appreciate your comment.

Hey Yev,

I am assuming you did receive my e-mail with the stats. Let me know if you did not and I will resend them.

All the best,
~ jordan elias - Tue Mar 25 2008, 10:46

Agreed Richard, let's hope for stability in the near future.

My question has been answered since its origination (more or less), but it's been answered by action with a great deal of recent Buyer activity in many of my local markets. Buyers (qualified Buyers I should say) currently have a great deal of power in certain markets in LA. Again, it's not the right time for everyone interested in buying, but for many it is a great time!

Thanks Richard,
~ jordan elias - Thu Mar 20 2008, 13:18

Hi Richard,

To briefly answer your question regarding justification of price tripleing we must again refer to the Supply & Demand model. Please remember, Realtors do not set home purchase prices -- Buyers do. When home prices were on the rise, it was due to a specific amount of supply and Buyers willing to pay the prices Sellers were demanding. I don't mean to explain Supply & Demand Richard as if you have never heard the term, but I don't think there is a great secret as to why prices increased in the past. Loose lending made it MUCH easier for less qualified Buyers to own property, but keep in mind that only 1.6% (roughly) of homes Nationally are in the Short Sale or Foreclosure phase. And I truly apologize Richard if this response reads as argumentative because that is not my intention. Bottom line, if you do not feel comfortable buying in the current market, then it is the right choice for you to stay on the sideline.

Hey Yev,

It took a little longer than I expected, but I have stats you requested covering North Hollywood, Studio City, Toluca Lake, and Valley Village (all separate) dating back to March of 2006. Unfortunately, the stats were not pulled from a source allowing direct web access so I can not direct you to a website to view them. However, if you would like to send me a message with your e-mail or fax number, I am more than willing to share them with you. Or if anyone can tell me how to load a paper document to a website I will post them for everyone to view. In the meantime, if anyone else is interested in the stats I have prepared for Yev, I would like to extend the invitation to send me a message with your e-mail address or fax number and I will send the stats your way!

Last, I would like to commend all users and viewers of this site who participate (This note is not intended to sound "cheeseball", but I may be out of luck). It is easy enough for a Buyer or a Seller to dislike Realtors - and vice versa - but your participation on this site leads me to believe you would like there to be unity between the two. I enjoy what I do because the heart of my job is working with people, and if I have a job that pays me to help others, then I am happy. I do not intend to speak for the other Realtors on this site, but I appreciate your activity and presence on this site and in this market - whether you're in the game or waiting for your turn on the sideline.

Thanks,
~ jordan elias - Thu Mar 20 2008, 11:24

I will work on it Yev.

Take care,
~ jordan elias - Tue Mar 18 2008, 18:39

Yev,

I almost forgot to respond to your comment regarding the Realtor Code of Ethics. Your comment is a true statement, "Just because there is the Realtor's Code of Ethics and responsibilities, it doesn't mean that it is followed". But I believe your comment also begs the response, just because there are local, state, and Federal Laws, it doesn't mean that they are followed.

I supplied the link so future Buyers and Sellers (if they so please) can educate and arm themselves against the Big Bad Predatory Realtors who do exist in the Real Estate Profession. In my opinion, this type of Realtor is found few and far between, but I do not kid myself that they do not exist.

Have a nice evening,
~ jordan elias - Tue Mar 18 2008, 18:30

Dear Hi from Virginia,

Thanks for the photo compliment! I've gotten a number of "look-a-likes" before, but never the local grocery store clerk!

Hey Yev,

I pulled the following statistics (fairly quickly) from Tempo, my local Multiple Listing Service. These numbers are specific to North Hollywood. I can pull other cities at your request, but I chose North Hollywood because I think it is representative of the greatest fluctuation in my local market, and represents the city with the greatest propensity for Short Sale and Foreclosure properties - a large reason for the recent property value decrease in certain areas. I am including month (month/year), average sale price of the closed listings for that specific month, and total number of closed sales for that specific month. I'd be interested to hear your thoughts. Thanks Yev!!

Month Avg. Sale $ Total # Sold
02/08 --- $392,116 --- 24
01/08 --- $431,377 --- 18
12/07 --- $457,762 --- 24
11/07 --- $484,556 --- 23
10/07 --- $478,339 --- 34
09/07 --- $490,032 --- 31
08/07 --- $527,519 --- 41
07/07 --- $533,277 --- 42
06/07 --- $538,818 --- 51
05/07 --- $509,931 --- 51
04/07 --- $521,868 --- 48
03/07 --- $571,829 --- 61
02/07 --- $471,020 --- 24

Thanks to all who participate!
~ jordan elias - Tue Mar 18 2008, 18:02

Previously in this chat thread there was discussion about the Realtor's Code of Ethics and responsibilities to his or her client(s). Follow the link below to NAR's website where you will find video segments explaining the Code of Ethics.

~ jordan elias - Tue Mar 18 2008, 15:09

Thanks for the update Dot. We too have seen a huge influx in Buyer activity over the past 5 weeks. Hopefully we won't be picking up the pieces of a wild chainsaw toss!

Thanks for the quote John. Although I don't agree with it, it does provide amusing imagery! Out of curiosity, is your 250% estimate based on your affordability ratio?

Newportfiji, thanks for the comment and for joining the chat thread! I can't say I agree with you about the future of the CA real estate market. In which geographical area(s) do you work as a Realtor? I'm not familiar with Southern Oaks. Thanks again!

Happy St. Patty's day all!
~ jordan elias - Mon Mar 17 2008, 18:30

Happy Tuesday all!

Here's an article about the Fed's recent decision to aide the injured housing market. - Tue Mar 11 2008, 11:28

Hey again S,

Just to clarify my response to pursuing Foreclosed and Short Sale properties: My duty to my buying clients is help them match the best property to their needs. If that property is a Short Sale or Foreclosed property, then it is my duty to guide them through the process of purchasing that Short Sale or Foreclosed property. The majority of the Short Sale or Foreclosure properties currently on the market do not work for many of my clients because they are looking for "done" houses or condos. However, in the past few weeks I can remember showing at least 3 Short Sale or Foreclosed properties to different buying clients, and one wrote an offer and we're expecting acceptance by Monday.

I apologize if I sound argumenative - that is not my intention. There may be Realtors who purposely do not show Foreclosure and/or Short Sale listings to their buying clients because they "must wait before seeing any money and they sound like more work"; that is unethical and violates Realtors' fiduciary duty to their client. Those Realtors should be reported and reprimanded.

Take care,
~ jordan - Fri Mar 7 2008, 18:18

Hey S,

In regards to Realtors being hesitant on showing foreclosed or short sale properties, I would somewhat agree with your observation. In my experience, many Buyers will steer clear of foreclosed properties and advise their Realtor to "only show them the good ones". Many of these foreclosures are and will be bought by a specific Buyer - a developer - because, not all, but many of these properties are in the lower-end markets and usually need extensive renovation/rehabilitation in order to be inhabitable. The majority of Buyers tend to want turn-key properties or only minor cosmetic fixers, which foreclosures are usually not.

As for Short Sales, I was speaking with a mortgage lender friend of mine this past Wednesday and he said recent numbers were out on Short Sales and currently only 1 in 4 Short Sale properties are actually closing! The Short Sale and Foreclosure purchase processes are generally much longer procedures than a traditional home sale, and when dealing with the banks, Buyers have almost no opportunity to negotiate beyond purchase price (ie: Needed repairs, termite extermination, etc.). Many Buyers (those who are actually Buying) do not have time as a luxury - their lease contract is expiring or they've already sold their home and have X amount of days to move into their new home, etc. If this type of Buyer enters a Foreclosure or Short Sale escrow, the actually close of escrow could very well stretch months beyond the originally agreed upon close of escrow date. As well, it will be difficult for this type of Buyer to keep shopping for houses once in a Foreclosure or Short Sale escrow since their current deposit money is tied up in the current escrow.

Kind of a long-winded answer, but that is why many Realtors and many Buyers do not chase Short Sale or Foreclosed properties.

Hey Walstmnky,

Thank you for posting the two articles. Real Estate aside, I found the Guru Grades to present an interesting and insightful bell curve.

Thanks and have a nice weekend,
~ jordan - Fri Mar 7 2008, 16:26

Hi all and TGIFriday!

Here is a an article describing the atmosphere of the National foreclosure market. Thoughts?
~ jordan - Fri Mar 7 2008, 14:43

Dear RealEstateInvestor,

Thank you for joining the fun! As I do not agree with your analysis of my career, I will respond:

If you track my questions and answers on this site, you will see that I've never asked any potential client to "give me a call". If a future Buyer or Seller wants to use my services, they are welcome to send me a message or call me, but I am not pushing my services on any potential client here.

In regards to your comment: "Jordan are you saying one of the hottest sales teams, 'TEAM SQUIRE' under Coldwell Banker the Valley have hit a brick wall? Are you guys out of ideas?"
No. We've been busier in the last 3 weeks than the whole 3 months prior - including 3 closings and 5 new escrows (all Buyer representations). There are many Buyers who recognize the value in the current market, and for them it's a good time to buy.

Regarding this comment: "My friend let me help you. Go back to bussing tables on Ventura Blvd, you don't have what it takes..."
Do I know you? I did work at a bar/lounge on Ventura for a time... And I'm not sure why you don't think I have what it takes. Any specific reasons?

I agree with your statements regarding the fairly relaxed qualifications to earn one's CA Realtor's license. Fortunately, the DRE (Department of Real Estate) has recently passed regulations requiring one to obtain a certain amount of college level units in classes related to business and finance before being able to take the CA Realtor's exam. I believe there are many Realtors who are under-educated and selling real estate in California, and hopefully the new legislation will help to weed those Realtors out.

Regarding this comment: "Real realtors are too busy selling houses to be wasting time on this site. Jordan?"
I was about to leave the office at 7:15pm tonight (Friday) when I saw your comments and figured I should respond. And I will be working tomorrow and Sunday as well.

*FYI - for those traveling on the Westside this Sunday 3/2/08, don't forget about the LA Marathon or you will be stuck in a lot of traffic!

About these comments: "I have bought my last 2 properties WITHOUT A REALTOR. The law doesn't require you use one. Wake up people these guys are middlemen/women read their posts, they are disengenious, uninformed, veiled and plain dishonest. As I've shown by lifting Jordan's skirt. Read his profile... then read his question. Now ask yourself... why would he be asking this question?" Congratulations on your last 2 purchases and true, there is no requirement to hiring a Realtor to buy or sell property. My job consists of an average 50-60 hour work week, working 6-7 days a week (that is by choice), and I am able to fill those hours working for my clients and working to find future clients. Regarding the "disengenious/dishonest" part of your comment -- why would I put something on my profile if I didn't expect users to view it? I pride myself on honesty, and yesterday I actually talked a potential Seller out of selling her home in this current market because she would not make a profit at this time.

In the end, I do what I do because I enjoy working with people and helping them through a tricky and potentially nerve-wracking process. You don't have to employ my services sir, and you don't have to like me. That is your choice, but I do ask for a little more courtesy in the future.

Thank you and have a nice weekend,
~ jordan elias - Fri Feb 29 2008, 19:47

Hi John,

The main reason many people forfeit their property in these situations is because their loans adjust and they can no longer afford to make their mortgage payments. And they do have a lot to lose by giving up the keys and moving out because their credit is scarred horribly and they will have major future issues obtaining loans (house, auto, personal, etc.), obtaining credit, and even renting - majority of landlords request a potential tenants credit, and credit dings can make a big difference in the landlord's choice.

I will research data if you'd like, but I think we may be discussing slightly different points. I agree with you that many homeowners do give up their homes once they are significantly underwater, but at that point, it isn't by choice - it's by necessity.

Thanks!
~ jordan elias - Tue Feb 26 2008, 17:57

Hey all, I hope you had a nice weekend.

Walstmnky, thank you for your response/critique of the CAR article, and I agree with you 100% that it's not a factually sound piece of reporting. My main point in posting this article (which you did point out in your response: "Again, I'll give CAR the positive in the findings: that compared to the same period in 2006, the 2007 numbers show more affordability.") was to highlight the fact that there are now a greater number of families in CA who can afford more house than a year ago. I'm sure there are now a greater number of families overall in CA than a year ago too - I don't know if the ratio is even or not, but I wanted to point out that there was affordability in CA when the market was "hot", and there is now greater affordability in CA in this current market.

John, I appreciate the compliment, and I do strive to be a "good buy" - thank you. I do disagree with you however that the CAR is a "mumbo jumbo/con-artist-type document" publishing organization. Of course it is in their best interest to publish more positive findings than negative about the CA real estate market - and they may work the numbers to best portray such a result, but they do not lie about what they publish. Remember, this is the same organization who holds us [CA Realtor's] responsible for dealing within the Code of Ethics set by the NAR - including our fiduciary duties to our clients.

In regards to your article John, I have a few qualms with its validity on this subject:
1. It is an opinion article that declares a Nationwide 20% drop from the peak of the 2006 market. Nationwide, we have already dropped a significant amount, so it's not a 20% more drop from where we are in the current market.
2. Because one may owe more money to a mortgage than their house is currently worth, that does not mean people will be falling into foreclosure left and right. Many will borrow money from other assets or family members if need be and others will choose to make payments on an upside-down loan until the market corrects itself. If one has the choice to wait out a rough market or have a foreclosure on their record if it's not necessary, my guess is they'll wait. Also, the number of foreclosures in higher-end markets are minimal compared to the lower-end, and downward pressure on prices will effect the low-end neighborhoods and not necessarily the high-end. This will create more affordability for the middle class - including higher inventory for Buyers to gobble up (probably not the best phrase choice - sorry).

I've reconsidered my choice, and my name will remain. =)
~ jordan elias

P.S. Our Realtor Code of Ethics is included in the link below if anyone is interested in some unexciting legalese. - Tue Feb 26 2008, 16:14

Here is a recent news article on California housing affordability.... - Fri Feb 22 2008, 14:49

Hey Walstmnky,

Yes, I believe Buyers are still dragging their feet - out here in LA - but I am starting to see more and more come out of the woodworks, so to speak. I am guessing that the increased activity from home buyers is due to the recent rate cuts, the nearly executed Stimulus Program, and the nearly agreed to WGA (Writer's Guild of America) contract.

That is my short answer and I am still looking forward to answering this question in further detail, and with statistics, in the near future!

To all, have a great weekend!!
~ jordan elias - Thu Feb 7 2008, 20:16

Hey all, now that this conversation seems to be back on track, I am excited to jump back in. I will have to write more later as I have a couple of appointments to attend, but a couple of quick comments before I add facts later:

1. Yev, it is true that I must either help someone purchase a property or sell a property in order to make money. But everything I've stated in previous responses I believe 100%. Also, you don't see me stating anywhere that it's a good time to sell do you? It's NOT a good time to sell and I am not advising my clients thusly. I am advising them, based on historical AND recent facts, that it is a good time to be a Buyer in the Los Angeles real estate market.

2. John, thank you for posting that article. It is an opinion article based on facts. It is also based on National facts - not local. I will provide facts at a later time giving and oposite opinion.

3. In regards to Tom's statement about "living in a home for 7 years...": I don't think it'll even take 7 years for current Buyers to see a positive ROI. Also, the article John provided states the bottom to be in 2010. Tom is then claiming that a Buyer in 2008 will see positive returns in the year 2015 - five years after the "worst-of-the-worst" article (in my opinion) claims the bottom will occur.....

All interesting stuff. Have a great weekend all and enjoy the Superbowl!!!!
~ jordan elias

P.S. Pats or Giants? - Sat Feb 2 2008, 13:13

Thank you all for this interesting and electric discourse! I am sorry to see it turn sour, but I'm affraid it has traveled that path. I too will be stepping away from this question.

Wishing you all the best in your future endeavors!!
Sincerely,
~ jordan elias - Mon Jan 28 2008, 11:55

John:

I will, to the best of abilities, respond to your most recent response.
1. In regards to the duties I owe my clients, you and I have very similar job descriptions. If I fail to research pertinent and vital information, it would be a failure of my ethical duties to my clients - not to mention the potential lawsuits I would face, as well as future business I would lose.
2. I know my fiduciary duties to my clients. I learned that before I passed my exam to receive my license to practice real estate sales in the state of California, and I am reminded of it every time I pick up a contract or put myself in the client's shoes - which occurs with EVERY client. As for Dot's client, I'm not sure how you can know the ins & outs of her client's recent purchase based on the information she provided and know that her client is "taking a giant monthly loss".
3. People do buy for different reasons John. Some buy to increase their quality of life, some buy to aquire an asset, some buy to invest and life, some buy to invest and rent, some buy for the tax benefits, some buy because they know the CA real estate market is historically a strong market and will rebound healthily, etc... There are any number of reasons why people do buy real estate, and there are any number of reasons why people don't buy - such as the reasons you will not.
4. It is an assumption on your part that Dot does not run numbers for her clients - the majority of Realtors do. Remember, we have fiduciary duties to our clients. And to be honest, I found your comment regarding Dot's "ignorance" to be an offensive assumption.
5. "that analysis of Gross Rent Multipliers would deter any informed and prudent buyer from purchasing properties at anywhere near current list prices in your area." - No it wouldn't John, and that is why people were buying real estate when purchase prices were (overall) 5-10% more in Los Angeles County a year ago, and why people are buying real estate today, and will be buying real estate tomorrow, and the next day, and the next day......

I understand John that not everyone is in a position to buy. I am most often not dealing with those people because they usually don't have a reason to be speaking with a Realtor about their buying options. And it is not my goal to assist buyers in purchasing properties beyond their means. It is my job to guide them, educate them - it is their job to make their decisions.

All the best John,
~ jordan elias - Mon Jan 28 2008, 11:53

Ditto to Dot's response TruliaVisitor. Thank you for your selfless generosity and all the best in the future...
~ jordan elias - Sat Jan 26 2008, 21:00

Congrats Dot! Business has definitely picked up for us as well since the third quarter of 2007. We are not in the same office as I am with Coldwell Banker, but we are more or less accross the street! All the best to you and maybe we'll see you during caravan!!
~ jordan elias - "Team Squire" - Sat Jan 26 2008, 17:21

Hey Walstmnky,

Not sure what you didn't like about the article other than it's "Rah! Rah! Real Estate" feel, but if you visit WatchingandWaiting's link, you will get a good feel of the exact opposite (which you will probably enjoy). I don't know how one can read the article I posted though and disagree that the Real Estate market of the United States has historically been one of the strongest markets available - plus the added benefits of owning a home.

One thing to consider while viewing both of these articles is that neither is specific to California, nor Los Angeles County, which is the market I had in mind when I originally posted this question. But I think both are good articles to read through if one is watching the current market.

WatchingandWating, thank you for posting that link! It is very informative and I think many readers will appreciate your posting it -- I do.

Granted, not everyone is in a strong position to buy right now. But, there are many people who are in a much better position to buy now then they will be when this market hits "rock bottom". And as the old addage goes, "if it looks to good to be true - it is". What I mean by that is when the true "deals" are available, many of the current buyers will be underqualified to purchase those "deals" - they will wind up loosing in multiple offers to stronger, more qualified buyers (ie: all cash investors, down-sizing buyers who have cash from a recent purchase, etc.).

Thank you to everyone who has contributed to this conversation thus far and I hope it continues!! - Fri Jan 18 2008, 17:53

Hey Trulia Roger, I appreciate your last comment confirming your admiration for your past Realtor and for defining your earlier comment.

In regards to the comment you made about the unsustainability of the U.S. housing market, please checkout the website referrenced below. And regarding the "media bashing", many media sources are notorious for sensationalizing and magnifying the impact of issues. The media has its hand in our industry's pockets because they over-magnify issues but want us to pay big bucks for advertising in their publications.

Anywho, thanks for your input Trulia Roger and best of everything in the future!! - Thu Jan 17 2008, 17:17

Quick response to your Recessiontime's comment: It is unfortunate that Realtors are placed in the same category as the stereotypical smarmy "car salesman". I can't say that I blame one for viewing Realtors as such because there are unprofessional "professionals" in our industry. This is very evident in the current mortgage market - because of a small minority of greedy mortgage brokers who did not have their clients' interest at the forefront and were offering loans to their clients that they knew they would soon not be able to afford, consumers have lost a lot of trust in mortgage brokers.

The way I look at my business, as I think the great majority of Realtors do also, is that the real estate industry is greatly a referral based business. If I treat my clients well, they will referr their friends & family to me - hence, more money. If I pressure my clients into buying or selling when, based on my experience, I know they will be making a mistake, I can guarantee that client will not be back around for their next transaction, nor will they referr me business.

So, yes. I agree that there are Realtors who do not act on their fiduciary duties to their clients - but these Realtors do not seem to hang around in this industry very long. - Thu Jan 17 2008, 14:04

Happy to see this question has intrigued many and struck great conversation!

One point I will make in regards to the current market (and I'm willing to risk the responsive attacks) is that the list price of any property is a "virtual number". By virtual number I mean that it is a temporary place holder until an actual number is agreed upon by Buyer and Seller. I think Tiffany asks her Buyers very relevant questions ("how will you know when the market has hit rock bottom? Furthermore when you (the buyer) know that the market has hit rock bottom, do you think the sellers will know that as well, and if so do you think they (the sellers) are going to be willing to negotiate as much at that point?"), and I would hate to see a Buyer miss the bus by over-waiting the "rock-bottom" market. And again Tiffany is right on, I believe, when she states that Realtors should not be "convincing" Buyers to make a move - that decision is theirs and theirs alone, but it is our job as Realtors, I believe, to make sure that our clients are well educated and updated about what is currently happening in the market.

Lastly, I do believe the current market is a hot Buyer's market for the right Buyers and the right properties. Often times the right Buyer might not know it's the right property until they explore the Seller's bottom line through an offer and negotiations. There are deals currently available, many are just hiding beneath a high, unrealistic list price. Thoughts? - Thu Jan 17 2008, 13:52

Tiffany, very well said, and I hope that many others, both consumers and professionals alike read your response! So, if you haven't all ready people, read Tiffany's response below - it is very accurate, sensible, and educative. Thanks Tiffany!! - Thu Jan 17 2008, 01:32

Karen, I give you a thumbs up for that suggestion because in this market I agree that it's best for Buyers to put pen to paper if they find a property they really like. That's where the negotiations start! Thanks for the response and if I hear any exciting suggestions, I will post them as an answer here. I am thinking about posting a "10 best reasons to buy" list here as soon as I have one compiled.

All the best! - Wed Jan 16 2008, 10:39

Don, I agree with the majority of what you wrote in response to my original question. And thank you for responding, but you provided me with a number of reasons why it's a bad time to sell. If a Seller is not in a position to have to sell, I would absolutely recommend to them to hold off (pending the specific area).

I probably should have been a little clearer in my original question: I am looking for successful ways to explain to my Buyers why what they're reading in the newspapers and watching on TV is not necessarily what is actually happening in their local market. And as far as the value of the dollar is concerned, I see that as a fantastic opportunity to reach out to the foreign Buyers who want to invest in a solid long-term U.S. market.

Well, thanks again for the response Don and all the best now and in the future!! - Tue Jan 15 2008, 19:53

Hey all,

The verdict is in! Below is an outline of the jury's verdict to this case. Any thoughts?

"Friday, April 11, 2008
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

REALTOR® WINS HIGH PROFILE JURY TRIAL
After only two hours of deliberation yesterday, the jury unanimously vindicated a buyer's agent accused by his clients of failing to disclose that two other homes in the neighborhood sold for less than what they paid. As a trial court case, this decision in Ummel v. Little is binding on the parties to the case, but has no binding authority for other cases. Moreover, the buyers may file an appeal.

This case involved a couple who bought a home in a coastal Carlsbad community in 2005 for $1.2 million. They regretted their purchase when they discovered that two other homes sold for about $150,000 less than theirs. They sued their real estate agent for negligent misrepresentation and breach of fiduciary duty. Their lawsuit grabbed national attention, given the recent downturn in the real estate market.

At the trial, the agent's attorney argued that there were valid reasons these two other properties sold for less. One home, for example, had a lap pool which was unappealing to many buyers, and the sellers wanted to rent back the home for two years."

All the best,
~ jordan elias - Sat Apr 12 2008, 14:39

Sorry Ginger, you beat me to it! Have a nice weekend!! - Fri Jan 25 2008, 17:15

First off, I have included the link to this article below for those who haven't read it.
The gist:
A set of Buyers are suing the Realtor who sold them a home at the height of the market, claiming he misled them into thinking the home was worth more than it's value.
The twist:
The Realtor also acted as the mortgage broker, and the previous owner was a Realtor.

I may be opening a can of worms here, but I'm fishing to hear other's thoughts on this issue. I don't think this will be an isolated incident for long! - Fri Jan 25 2008, 17:14

Hey Connie,

First and foremost, find an agent you are comfortable working with and who you trust. Second, lease options can be VERY tricky, so using an agent with experience in lease options - like Dot - is a great idea. Third, I would ABSOLUTELY recommend having an attorney review your lease option prior to submitting it to the listing broker. There are many loop holes and hang-ups that are easily overlooked, costing you thousands of dollars and headaches when it's time to excercise your option - or not.

Once you've decided on your Realtor of choice, I recommend you discuss all of your options prior to making any decisions. Especially in a fluctuating market, like the market we're currently experiencing, a lease option may not be the most beneficial choice for your needs.

The link below has some great information about lease options. I hope it helps!

In any case, best of luck to you!!
~ jordan elias - Fri Feb 22 2008, 16:35

Hey Chris,

My guess as to why not more Sellers have their agents illuminate their signs is that Sellers are unaware these sign lights exist. As to why more agents don't illuminate their signs, I think, like any investment for their business, they're afraid they won't see return on their investment. I have seen signs lit at night, and they have definitely caught my eye. Automatically that draws my eye to the house -- not that I've done more than just a once over, but I've definitely thought that listing agent is on top of his/her game. And as Elvis (below) stated, it can be a great tool to generate more listings.

Good question Chris!
~ jordan elias - Thu Feb 7 2008, 09:06

Hey Usa2005,

I absolutely agree with all three previous answers, and the only things I can add to them are the following:

1. Do not be afraid to double or even triple apply with 2 or 3 different lenders. Ray is correct, if you shop your loan needs to 5, 6, 7 or more lenders, it will probably affect your credit score negatively, but applying with 2 or 3 won't hurt you. Also, you are not obligated to choose a specific lender until the escrow process begins, and even then you will have time to choose the best lender (the one who will secure the best loan for you and will charge you the least amount of fees) based on your contractual timeframes - your Realtor will be able to explain this entire process for you once you've chosen your Realtor.

2. Also as the others have mentioned, the Realtor you've been speaking with has in no way (based on your question) given you ill-advice; however, it is not necessary for you to work with this Realtor. If you feel comfortable with this Realtor and he/she appears trustworthy, there is really no need for you to "shop around". If you do shop around, my advice to you is to let each Realtor you speak with know that you are shopping around. Let them give you their sales pitch as to why they are the best Realtor to fulfill your needs. But PLEASE don't string any of them along - bottom line: if you find a Realtor you connect with (one who understands your specific wants in your future home, as well as a personality match) and you feel you trust this Realtor, then work with him/her. If you begin working with a Realtor, and he/she feels that you may leave them a week or two later to work with a different Realtor, then there will always be a bit of a trust issue between you two.

It's probably hard to believe, but you should be friends with your Realtor by the end of the process! =P

Hope this helps and best of luck!!
~ jordan elias - Sun Feb 3 2008, 20:42