Great Article from Carla Fried

http://realestate.yahoo.com/promo/why-the-housing-market-is-three-times-worse-than-you-think.html

I am catching up on some market news today and came across this great article at CBS MoneyWatch written by Carla Fried.

Her best insight of all is “This is where a solid and straight-up real estate agent is going to be crucial. You don't want sugarcoating; you need an honest assessment of what's in your local pipeline.”

Since first licensed in 1995 I have lost numerous clients for being "too negative".

Often criticized by my previous Brokers I always answered that I'd rather sleep at night knowing I had given my best advice, rather than painting a rosy picture when there was no valid reason for optimism.

Thanks Carla for pointing out that "sugarcoating" should not be any part of the Real Estate information you're receiving.

Courthouse Step Buyers

Lots of activity on the courthouse steps and my gut feeling that investors are there in droves is being backed up by the sale results. On one website that handles dispositions for the big banks the numbers tell the story pretty concisely. On March 28, 29 and 30 the disposition company had 48 properties sold on the San Diego Courthouse Steps. Of the 48 properties sold 18 went to "Third Party" Investors and daring retail Buyers are researching and buying the foreclosures before they hit the local MLS listing service. If your considering buying Foreclosure bargains make sure you're working with someone who is keeping up with the current happenings. I'd love to help you. Contact me roxinne.mcphail@gmail.com if you want my help. Thanks

REO Activity Up

I have been checking one of the San Diego County Trustee Sale websites and have noted a marked increase in sales on the courthouse steps.
While the majority continue to go back to the beneficiary there are a surprising number going to Third Parties. And some of the Third Party sales are going at or near market value.
Does this mean an increase in Homebuyers taking the risk of buying on the Courthouse Steps or are investors willing to pay slightly more than they want to in order to avoid the purchase process once a Bank relists the REO's?
My gut feeling is that if a Buyer identifies a property they really want they are going to take on the additional risks on the court house steps and it doesn't matter if they are Homebuyers or Investors.
What does that mean for the market?
It means if a Buyer has a specific house, school district or zip code they are searching for then waiting for the REO to come to the market via a Bank assigned List Agent may mean too long a wait or too high a list price. some Buyers may think it's better to get a jump on it and buy it at the Foreclosure Auction.
Just make sure you know all the pitfalls of that process because the minimum bid may sound like a bargain but hidden costs (tax liens, repairs, and eviction) may mean time and money beyond what the buyer can bear.
Remember, Buyer Beware !!