Boo!…Are You Scared Yet? Thoughts from a Placentia Realtor

Well here we are, it’s almost Halloween and it’s amazing how time flies!

We have seen so much happen in the last 4 years…the housing BUBBLE DEFLATION (the “bubble” is looking more like a deflated jumper on the lawn of a 7 year old birthday party).  We have seen banks scramble as they take back thousands of placentia homes, yorba linda homes and orange county homes back on their books.  We have seen BLACK MONDAY when the stock market plunged with almost unprecedented decreases.  (Scary, but felt almost the same way when I was watched the World Trade Center go down).  It has been a very volatile last few years.  Presently only home owners in North Orange County who bought homes 2003 or sooner have homes worth more than when they were purchased.  It has taken 3 years for homes to go back down to 2004 values.  Now, most buyers who have been sitting on the fence are eyeing the bank owned repos feeling that the best deals are in the foreclosure market.  We’re seeing bank owned foreclosures with attracting multiple offers and agents in our Prudential Brea office are complaining that in some areas they cannot win the bidding war to get their client a home! 

When you have multiple offers, you’re usually near the bottom of a downward trend.  It has taken a long time, but sellers are finally becoming more realistic about the true worth of their home.  Those that are unrealistic or just “testing the waters” of the market are taking their homes off the market when they sit for months and months with no serious offers.  Less people put their homes on the market in September / October / November / December so what we’re seeing is a decrease in inventory for re-sale homes and an increase in the number of buyers entering the market who are hoping to time the “bottom” perfectly (like trying to buy when stocks are at their absolute lowest). 

So, when is a good time to sell?  Answer:  Whenever you HAVE TO.  I’m finding that sellers who HAVE to sell are selling their homes because they’re lowering their prices to attract offers.  Sellers who WANT to sell will not sell their homes unless they’re willing to compete with the HAVE TO sellers and join the elite group who are pricing their homes under market, ahead of the bell curve.  These are the sellers that will look back and be glad they did what they had to do.  Those that played around with trying to get top dollar will be looking back saying, “Gosh darn, I should have been more aggressive.”

Market Update March, 2017 for Placentia, Yorba Linda, Anaheim Hills: March 02, 2017

Anaheim Hills CA Gorgeous Scenery

Anaheim Hills currently has 76 Single Family Homes on the Market with Lowest Price of $549,900 and Highest Price of $3,999,999.

Average Price of all Active Homes combined:  $1,220,796

Average Days on Market of these Homes:  76

Homes in Escrow (SFRs):  57

Average Asking Price for Homes in Escrow:  $819,500

 

Placentia currently has 41 Single Family Homes on the Active on the Market

Lowest Price Active home:  $499,000

Highest Price Active home:  $1,099,000

Average List Price of Active homes:  $729,246

Homes in Escrow:  47

Average Asking Price of Homes in Escrow:  $642,129

Example of Placentia Home that was Listed in Past by Nic Petrossi

Yorba Linda currently has 148 Homes on the Market

Lowest Price Active Home:  $614,900

Highest Price Active Home:  $17,995,000

Average List Price:  $1,636,508    (the $17,995,000 Home at 5005 Hidden Glen affects average)

 

 

New Home Builds Remain Quite Strong in Orange County going into 2017

Median Home Prices in Orange County are up (as the chart below shows)

That’s nice to know, but the million dollar question is:  Where are we headed?

Large Company New Home builders e.g. Shea, Pulte, KB Homes, William Lyon, Lennar, D.R. Horton and smaller companies e.g. MW Custom, Brandywine Homes, Olson Homes all have one thing in common – they do their homework.

Timing is everything in the real estate industry.  I remember seeing vacant lots with “Coming Soon” signs all over Orange County just 1-2 years ago.  How long did they sit vacant?  Some of them were for 5 years or more.  For example, the massive “La Floresta” master planned community in Brea at Imperial Hwy and Valencia Ave shows an electrical permit dating back to April 14, 2011!!!  Over 5 years later, we see a vast array of trendy restaurants, Whole Foods market, and more homes still being built…

Why the delay?   Van Daele Homes, Oakmont, and Del Webb all knew something…that the market would peak in 2016.  Several of the homes purchased this year are still being built.  These builders were willing to wait because the difference between $625,000 and $675,000 is considerable when you’re talking about hundreds of homes purchased.  That $50,000 adds up.  New Home buyers don’t seem to mind – after all, it’s exciting to buy something that smells so new, looks so fresh, and is walking distance to really cool amenities and shopping.

What this means for 2017 and beyond is that historically we see a drop off just after new home builds are bought out, the front yards are starting to look like front yards, the streets begin to resemble normal streets and the feel becomes more of a normal looking neighborhood without the mounds of dirt, construction trucks and lumber stacks.  The dust settles, and the prices begin to drop.  They know it, and they’re ok with it, because they made they’re money and moved on to other projects while the property management companies are left to deal with the problems.

This doesn’t mean these companies are bad – they’re just smart, and they invest too many millions of dollars to make a poor timing decision.

For resale homes (here defined as any home that is not newly built), there is a direct correlation with these new home builds.  Housing markets reach peaks and these peaks are as much psychological as they are physical.  We all know a huge interest rate hike would cause a drop off, but what about the common sense logic that 123 Main St., a small 3 Bedroom single family home in a nice neighborhood built in the 1960s is NOT REALLY WORTH $750,000???  Buyers begin to pull back on the horse’s reins and say “Whoa, Nelly” and more and more decide to wait for a pull back in the housing market.  I hear the words “I’m waiting for prices to come down” quite often from visitors to my Open Houses.  When this sentiment prevails, and more and more people are “on the fence,” the prices come down.

It takes a month, or two, or three…but there comes a time when people selling their homes begin to realize that they can’t get the prices their neighbor was getting in Spring of 2016.  They may try, but after 3 weeks on the market with no offers close to their neighbors’ asking price, the thought starts to sink in – “I need to lower my price if I really want to sell this home.”

This shift from a Sellers’ Market to a Buyers’ Market is not overnight, but gradual as even the nicest of homes that once garnered multiple offers over the first open house weekend see an offer trickle in, every so often.  Ultra careful buyers take their time, not as concerned they’ll “miss out” on this one.  And a new normal is established.  6 months later some Data Company will represent this in the form of a chart that shows a drop off in home prices. Like, for example, this chart shows from 2007 to 2008:

What the rest of this chart doesn’t show is that prices continued to go up in 2016…and then leveled off.  But what is interesting is that the NUMBER OF BUILDING PERMITS issued in Orange County, although significantly lower than last year, was still a huge number for 2016

Building permits are issued long before the actual construction takes place, so we will continue to see a healthy amount of new homes going up in Orange County in 2017.  This is a good sign for 2017 – I won’t stick my neck out and say we will maintain our 2016 median values, but I will say that there is a good chance that home prices won’t dip too much.  In some cases (e.g. the $400,000 to $500,000 homes) there may even be a slight increase.

 

Looking to Buy or Sell?   Call or Text the author of this article,

Nic Petrossi, TNG Real Estate Consultants (714) 272-3646

Email:  Npetrossi@yahoo.com

Your comments and views are welcome!

 

3 REASONS TO SELL IN FEBRUARY

Three Reasons Why you want to sell your condo, townhome, or house in February instead of waiting until Summer. #1) Inventory in Northeast Orange County is low. #2) The Quality of Buyers Looking is VERY Good ,#3) The Weather is Good.

NIC PETROSSI (714) 272-3646: Granada Park Placentia Homes

Granada Park Placentia Homes: Market Update, Sept. 1, 2009

Below is a list of homes active (0), in escrow (1) or sold (3) in Granada Park since 5/1/09.  This list is up-to-date and accurate as of 9/1/2009.

I’ve sold 2 of the homes on the list…354 Pennsylvania and 601 Valley Forge.  There are 6 floor plans in Granada Park ranging from the 2 Bed 1,400 square foot model to the 4 bedroom 2,336 square foot model.  Granada Park HOA is managed by Balboa Management with Property Manager Judi Surbutz.  Amenities include:  2 tennis courts, pool, spa, cable TV, exterior insurance protection, grounds maintenance and gated community.

Call Nic Petrossi at (714) 272-3646   or email at npetrossi@yahoo.com

Tue, Sep 1, 2009 03:08 PM

Residential

RES

MLS #

Status

P

V

H

T

Q

Type

A/D

Address

City

Area

Zip

TGNO

Trct/M

Bd

B t/f

Sty

Gar

SqFt

Yr Blt

Price

DOM

1

P695349

P

13

H

T

Q

SFR

D

212 Massachusetts Ln

PLA

84

92870

739F6

GRNP/0

4

3/2

2

2

2,167

1981

$524,000

18

2

P684139

S

19

H

T

Q

SFR

D

367 New Hampshire Way

PLA

84

92870

739F6

GRNP/A

3

2/2

1

2 A

1,606

1977

$430,000

4

v

3

P665774

S

10

H

T

Q

SFR

D

601 Valley Forge Dr

PLA

84

92870

739F6

GRNP/3

3

3/2

2

2 A

1,886

1977

$440,000

180

*

4

P691225

S

8

H

T

Q

SFR

D

354 Pennsylvania Way

PLA

84

92870

739F6

GRNP/D

4

3/3

2

2 A

2,044

1977

$485,000

7

Condo or “Home Home”…the Pros and Cons

Recently, I’ve come across several buyers who deliberate on whether they should buy a condo/townhome or a traditional single family home (you know, the kind that usually have bigger back yards and are NOT in an association). So what exactly are the pluses and minuses of owning a condo/townhome and owning a single family residence? Condos (which include townhomes as far as the MLS is concerned) are good for the following reasons: Most are “low maintenance,” meaning the yards (if it has one) are usually small, less grass to cut, less weeds to pull, less greenery to water, etc. This is attractive for busy people who don’t have time to deal with it and don’t need the bigger yard. The HOA (Home Owners Association) is actually a PLUS sometimes. Let me give you an example: Some HOA’s cover the roof of the property. So, let’s say we have heavy rains. The roof leaks. The HOA property manager is contacted, who, in turn contacts the roofing vendor. The work is done at the expense of the HOA. Roof repair for Orange County, CA homes can run extremely high, especially in extreme situations where the roof needs to be completely replaced. This would be a HUGE out-of-pocket expense for someone who owns in a traditional neighborhood. The buyer of a condo is advised to look into exactly what the HOA covers. Some cover a TON, some cover very little and you’re scratching your head wondering why the dues are $333 a month. Condos in Orange County tend to be newer on average than traditional home-homes. Now, that isn’t to say that there aren’t older condo tracts, but condo/townhomes generally are newer than sfr’s. Newer construction equates to less potential problems with the plumbing, electrical, etc. Condos can be bad for the following reasons: The HOA’s can be horrible…some run over $300 per month and you’re looking around asking, “For WHAT?!?” Some HOA’s can be excessive in terms of rules and regulations and oppressive. I’ve heard stories of HOA’s writing up violations for silly things like plants growing to large or dogs peeing in wrong places. Don’t get me wrong…sometimes rules can be good and in the best interest for everyone, but I’ve seen when the Board members are sheriffs on the look out for anything out of line….like the lady in Over the Hedge who measured the grass of her neighbor’s lawn, 2″ height requirement. Because of the HOA, you are limited to what you can do to your property. Especially on the outside of the property, visible from the street. So, no painting that cracked wheat color, no addition to the home without the HOA’s approval via architectural request. Individual creativity and expression is usually not encouraged in an HOA. On the positive side, however, this limiting of artistic creativity or color preference can be a good thing — Do you really want your neighbor to paint their house turquoise? Size. Condos and townhomes generally are smaller than your traditional family home. This obviously is not always the case, but is a generalization. Single Family “Home Homes” are good for the following reasons: They usually have bigger yards. This is good for the person or family that likes to entertain a lot of people and need space for the pool, BBQ, sport court, lawn activities, etc. Some people like the wide open space, the distance between their home from their neighbor’s house. There usually aren’t restrictions on what you can do (city must approve additions, improvements, however). It’s nice to know you can paint the home YOUR favorite color or park your car in the driveway or next to the curb or have people stay over the night, weekend, or week. For pet lovers, they can have as many pets as the city ordinance allows. Neighborhood. You usually find the “settle down” kind of people in neighborhoods of single family homes. These are neighborhoods that have history. Sometimes people look after each other, take care of the pets and yard when you go on vacation. Community block parties…and these neighboring families can become so close that they actually become like an extended family. This is very attractive to the outgoing people that love community and interaction with people. Single Family Homes can be bad for the following reasons: The bigger yards mean more TIME spent gardening (if you don’t have a gardener). It means more up-keep and responsibility. Some care, and some don’t. A pool is awesome for kids and their friends in the summer, but can be a liability if someone gets hurt or drowns. No HOA means no insurance coverage for the exterior of the dwelling…you’re on your own if there is a flood in the home or a leak in the roof or a fire breaks out in the master bedroom. It’s you and your invidual insurance company. Need help selling your home? Need to find a home? Call or email me!!! Nic Petrossi, Prudential CA Realty in Brea (714) 272-3646 npetrossi@yahoo.com http://www.NicPetrossi.com

Steps for Buying a Home and Placentia Homes Market Update from Placentia Real Estate Expert Nic Petrossi

As of July 13, 2009 below is a list of all homes in Placentia that are regular sales, not short sales or bank owned. 

Call Nic Petrossi (714) 272-3646 with Prudential or email npetrossi@yahoo.com

Step #1:  Contact a Bank or Mortgage Broker to run (not ruin, run) your credit and get a Pre-Qualification Letter.  (these are sometimes referred to as a “Pre-Approval” letter). 

Step #2:  Contact Nic Petrossi to have him search for homes in the price range you have been pre-approved to buy in.

Step #3:  Buy a home in Placentia, Yorba Linda, Brea, Fullerton, Anaheim Hills.  (These cities (east side of Fullerton when you’re talking about Fullerton), have very few foreclosures and have been insulated from the “foreclosure anchors” that have been pulling down home prices all over the nation and even in other cities in Orange County.  Northeast Orange County is, in my opinion, one of the safest places to buy, physically, but also economically.

Mon, Jul 13, 2009 03:35 PM

RES	MLS #	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P694066	A	2		H	T	Q	SFR	D	1616 Oak	PLA	84	92870	739J7	OTHR/0	2	1/1	1	1	910	1949	$130,000	7
2	S580639	A	12		H	T	Q	CONDO	A	182 Southampton Way 31	PLA	84	92870	739F5	HOTG/0	2	2/1	2	1 D	897	1972	$197,000	7
3	P692110	A	1		H	T	Q	SFR	D	500 S Van Buren St	PLA	84	92870	0000×00	OTHR/0	3	2/2	1	1	1,270	1932	$249,900	24
4	P691960	A	9		H	T	Q	CONDO	A	111 S Lakeview Ave 111j	PLA	84	92870	740B7	OTHR/1	2	2/2	2	1	930	1990	$259,000	26
5	P691929	A	1		H	T	Q	SFR	D	819 Tafolla St	PLA	84	92870	0000×00	OTHR/0	5	2/2	1	1	1,250	1953	$259,900	24
6	P694606	A	20		H	T	Q	SFR	A	1445 Prospect Ave C	PLA	84	92870	739J4	OTHR/3	3	3/1	2	1 D	1,437	1964	$294,000	6
7	S567872	A	8		H	T	Q	CONDO	A	1541 Ismail Pl	PLA	84	92870	739J7	ALPL/6	2	2/2	2	1 A	1,000	1998	$335,000	139
8	P692419	A	18		H	T	Q	CONDO	A	957 La Paz Rd 48	PLA	84	92870	739H5	LOSB/0	2	3/1	2	2 A	1,233	1986	$369,000	4
9	P693948	A	9		H	T	Q	SFR	A	300 Los Padres Ln	PLA	84	92870	739F7	PLVG/1	3	2/2	1	2 A	1,314	1976	$380,000	10
10	P687727	A	6		H	T	Q	SFR	A	212 Preakness Dr	PLA	84	92870	740B6	PLKN/0	2	3/1	2	2 A	1,528	1981	$389,900	58	*
11	S579585	A	11		H	T	Q	CONDO	A	1447 Via Cortez	PLA	84	92870	739F4	OTHR/1	4	3/2	2	2	1,615	1972	$395,000	17
12	S560648	A	4		H	T	Q	SFR	A	1517 SHERWOOD VILLAGE Cir	PLA	84	92870	739H4	SHER/2	3	3/2	2	2	1,346	1974	$415,000	182
13	P660218	A	5		H	T	Q	SFR	A	2485 Arrow Cir	PLA	84	92870	739F2	WOOD/1	2	3/2	2	2	1,325	1975	$435,000	276	*
14	P691499	A	8		H	T	Q	CONDO	D	1565 Hastings Way	PLA	84	92870	739J6	OTHR/0	3	3/2	2	2 A	1,560	1998	$449,000	28
15	P692112	A	1		H	T	Q	CONDO	D	1753 E Hayes Ct	PLA	84	92870	739J6	OTHR/0	3	3/2	2	2 A	1,715	1999	$449,000	24
16	P694909	A	8		H	T	Q	SFR	D	1507 N Victoria Way	PLA	84	92870	739D4	SHDH/0	3	3/2	2	2 A	2,112	1978	$489,900	1
17	P681484	A	5		H	T	Q	SFR	D	1719 N Mccormack Ln	PLA	84	92870	739G4	OTHR/1	4	2/2	1	2	1,684	1963	$525,000	107
18	P592086	A	1		H	T	Q	SFR	D	643 E Highlander Ave	PLA	84	92870	739G4	OTHR/0	4	2/1	1	2 A	1,539	1969	$530,000	720	*
19	P693485	A	19		H	T	Q	SFR	D	2336 Cebu Ct	PLA	84	92870	739G2	OTHR/-	4	3/1	1	2 A	1,976	1964	$535,000	13
20	P681474	A	15		H	T	Q	SFR	D	2026 Tuffree Blvd	PLA	84	92870	739E3	OTHR/5	5	3/2	2	2 A	2,435	1964	$550,000	115
21	P693357	A	6		H	T	Q	SFR	D	214 Patrician Ln	PLA	84	92870	739F3	OTHR/-	4	2/2	1	2 A	1,784	1963	$569,500	13
22	P682274	A	4		H	T	Q	SFR	D	1323 Vina Del Mar Pl	PLA	84	92870	739J5	ALPL/1	5	3/2	2	3	2,226	1965	$575,000	82	*
23	P689511	A	20		H	T	Q	SFR	D	2120 Heloise Way	PLA	84	92870	739G3	OTHR/1	4	3/1	2	2 A	2,190	1963	$579,000	62	*
24	P693954	A	12		H	T	Q	SFR	D	660 Longfellow Dr	PLA	84	92870	739G3	OTHR/0	3	3/2	1	3	1,808	1972	$590,000	10
25	MRM-C09023975	A	4		H	T	Q	SFR	D	519 LEE Pl	PLA	84	92870	739E4	/	3	2/2	1	2 A	1,682	1963	$592,000	137
26	P662449	A	14		H	T	Q	SFR	D	177 Los Alamitos Cir	PLA	84	92870	740A6	MARP/0	4	3/3	2	2 A	2,172	1980	$599,900	260	*
27	P692930	A	20		H	T	Q	SFR	D	574 E Milano St	PLA	84	92870	739G5	MONS/1	3	3/2	2	2	2,384	1993	$610,000	6	*v
28	P652037	A	14		H	T	Q	SFR	D	1454 E Evans Ln	PLA	84	92870	739J6	OTHR/*	3	2/2	1	3	1,716	1995	$615,000	332	*
29	P684841	A	16		H	T	Q	SFR	D	1542 Shenandoah St	pla	84	92870	739f4	OTHR/.	3	2/1	1	2	1,525	1968	$625,000	80
30	P692471	A	20		H	T	Q	SFR	D	607 La Marr Ln	PLA	84	92870	739G6	FAIR/0	3	3/1	2	2	1,953	1995	$629,900	20
31	P685496	A	13		H	T	Q	SFR	D	606 Hollyhock Ln	PLA	84	92870	739F6	SEQH/1	4	3/2	1	2	2,460	1979	$635,000	75	*
32	L29923	A	20	V	H	T	Q	SFR	D	1619 Rock River	PLA	84	92870	739f4	OTHR/0	4	3/0	2	3	2,468	1968	$644,900	46	*
33	P664714	A	10		H	T	Q	SFR	D	1525 Shaver Way	PLA	84	92870	739F4	POND/1	5	3/2	2	3 A	2,360	1967	$650,000	250	*
34	P694149	A	20		H	T	Q	SFR	D	213 Garfield Ave	PLA	84	92870	739F3	STNG/.	4	3/1	2	3 A	2,554	1966	$699,000	7
35	P694391	A	13	V	H	T	Q	SFR	D	825 Newton Ln	PLA	84	92870	739G6	MDTF/0	3	3/2	2	3 A	2,410	1993	$699,000	6
36	P685248	A	9	V	H	T	Q	SFR	D	919 San Juan Ln	PLA	84	92870	739G7	OTHR/O	4	3/2	2	3	2,453	1976	$699,900	79	*
37	P666582	A	2		H	T	Q	SFR	D	968 Finnell Way	PLA	84	92870	739G6	FWAV/2	4	3/2	2	3	2,450	1984	$699,950	227
38	P694757	A	18		H	T	Q	SFR	D	425 Nevin Ln	PLA	84	92870	739J6	OTHR/*	5	3/2	2	3 A	2,860	1994	$700,000	3
39	P681931	A	14		H	T	Q	SFR	D	1211 Campanis Ln	PLA	84	92870	739H7	OTHR/1	3	2/2	1	2	2,100	2005	$729,000	103	*
40	P671308	A	20		H	T	Q	SFR	D	330 Oberle Pl	PLA	84	92870	739H7	OTHR/1	3	2/2	1	2	2,217	2003	$749,000	182	*
41	P693867	A	20		H	T	Q	SFR	D	1234 Campanis Ln	PLA	84	92870	739H7	OTHR/5	4	3/2	2	3 A	2,600	2005	$749,900	10
42	P684100	A	20		H	T	Q	SFR	D	508 Shoshoni Ave	PLA	84	92870	739F2	OTHR/4	4	3/3	2	3 A	2,832	1972	$750,000	87
43	P694334	A	18		H	T	Q	SFR	D	2237 Montgomery Cir	PLA	84	92870	739E2	OTHR/0	5	5/4	2	3 A	3,556	1976	$795,000	6
44	P691562	A	19		H	T	Q	SFR	D	400 Purdy Ave	PLA	84	92870	739F2	OTHR/1	4	3/2	2	3 A	3,177	1968	$795,500	27
45	S576093	A	1		H	T	Q	SFR	D	436 Kiolstad Dr	PLA	84	92870	739F2	OTHR/1	5	3/3	2	3	3,077	1966	$824,000	45
46	P687729	A	20		H	T	Q	SFR	D	1149 E Maertzweiler Dr	PLA	84	92870	739H6	HQT/0	4	4/4	2	3 A	2,900	2001	$825,000	61	*v
47	P680203	A	20		H	T	Q	SFR	D	432 Oberle Pl	PLA	84	92870	739H6	OTHR/4	4	3/3	2	3	2,900	2004	$855,000	117	*
48	MRM-H09060435	A	0		H	T	Q	CBO	D	125 S MELROSE St	PLA	84	92870	739E7	/	3	3/2	2	3		1990	$1,050,000
49	S570457	A	20		H	T	Q	SFR	D	829 Berkenstock Cir	PLA	84	92870	739G3	CUST/0	3	4/3	2	4 D	5,684	1913	$1,249,990	95	v

Placentia Homes Alta Vista South Update

Below, you’ll find a list of all homes in the Alta Vista Country Club Golf Course area south of Alta Vista that are active, are in escrow (as B or P) or have closed escrow as of 7/1/2009. 

Contact Nic Petrossi with Prudential CA Realty at (714) 272-3646 Direct or email at npetrossi@yahoo.com    Visit Nic’s website —>  WEBSITE

As your Alta Vista South homes specialist, I want to welcome you to visit my website by clicking the link below

 

                            Nic Petrossi Real Estate Website

 

Below is a list of all active homes, home in escrow, and closed sales since July 1st, 2009 in the Alta Vista South homes near the Alta Vista Country Club Golf Course.

Contact Nic Petrossi with Prudential CA Realty at (714) 272-3646  or email at npetrossi@yahoo.com

Mon, Jul 13, 2009 03:04 PM

Residential
RES	MLS #	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P671602	A	11		H	T	Q	SFR	D	407 Cline Ct	PLA	84	92870	739G7	HQT/0	5	3/2	2	3 A	2,600	2001	$640,000	161	*
2	P672113	A	8		H	T	Q	SFR	D	412 Quail Run Ln	PLA	84	92870	739G7	OTHR/+	4	3/3	2	3	2,900	1999	$650,000	155	*
3	P687729	A	20		H	T	Q	SFR	D	1149 E Maertzweiler Dr	PLA	84	92870	739H6	HQT/0	4	4/4	2	3 A	2,900	2001	$825,000	61	*v
4	P684825	P	18		H	T	Q	SFR	D	907 Doral Ct	PLA	84	92870	739G6	ALPL/2	4	3/3	2	3	2,300	1999	$675,000	46	*
5	P686922	P	20		H	T	Q	SFR	D	314 Robertson Ct	PLA	84	92870	739G7	OTHR/0	5	3/3	2	3	2,800	2001	$675,000	16
6	R903450	P	0		H	T	Q	SFR	A	1112 Soto Pl	PLA	84	92870	739H7	CUST/1	5	4/4	2	2	3,378	2001	$749,000	25
7	P659691	P	3		H	T	Q	SFR	A	530 DICKINSON Cir	PLA	84	92870	739G6	PLVG/0	5	4/3	2	3	3,000	2004	$850,000	189	*
8	P689250	S	10		H	T	Q	SFR	D	932 Torrey Pines Pl	PLA	84	92870	739G6	OTHR/0	4	3/3	2	3	2,533	1999	$675,000	7

Granada Park Placentia Homes

Granada Park is a highly-coveted gated community centrally-located in the gorgeous city of Placentia.  Approximately 180 homes; use code: Single Family Residences with 2 car garages and 6 different floor plans ranging from 1,360 sf to 2,336 sf single story and two story homes.  Granada Park boasts 2 professional quality tennis courts, pool / spa, clubhouse, blanket insurance coverage, and is currently in process of grand scale landscape modernization. 

Below is a list of homes that have sold or presently in escrow (“back” means “backup offers”) since 5/1/2009.

Call NIC PETROSSI, your Granada Park Specialist with Prudential Ca Realty (714) 272-3646 Direct  or email npetrossi@yahoo.com

www.NicSellMyHome.com

Thu, Jul 9, 2009 10:32 AM

RES

MLS #

Status

P

V

H

T

Q

Type

A/D

Address

City

Area

Zip

TGNO

Trct/M

Bd

B t/f

Sty

Gar

SqFt

Yr Blt

Price

DOM

1

P691225

B

8

H

T

Q

SFR

D

354 Pennsylvania Way

PLA

84

92870

739F6

GRNP/D

4

3/3

2

2 A

2,044

1977

$499,000

26

2

P684139

S

19

H

T

Q

SFR

D

367 New Hampshire Way

PLA

84

92870

739F6

GRNP/A

3

2/2

1

2 A

1,606

1977

$430,000

4

v

3

P665774

S

10

H

T

Q

SFR

D

601 Valley Forge Dr

PLA

84

92870

739F6

GRNP/3

3

3/2

2

2 A

1,886

1977

$440,000

180

*

Kerrigan Ranch Yorba Linda

Kerrigan Ranch is a prestigious neighborhood of fine homes located in the hills of  Yorba Linda.  These highly-coveted homes often come with a view and boast very large lot sizes in comparison to most new construction in Orange County.  Below is a market update for Kerrigan Ranch homes on the market (listed as an “A” status); homes that are in escrow (listed as a “B” or “P”) and homes closed (listed as “C”) since 6/1/2009. 

Call or email Nic Petrossi with Prudential California Realty (Brea office in Home Depot Shopping Center).

Nic Petrossi is your Kerrigan Ranch listing agent AND buyer agent.

(714) 272-3646 Direct    (714) 257-3606 Office    www.NicPetrossi.com    npetrossi@yahoo.com

Thu, Jul 9, 2009 10:17 AM

RES	MLS #	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P689462	A	11		H	T	Q	SFR	D	19399 Steeplechase Way	YL	85	92886	740D2	YRLH/1	5	6/5	2	4	4,170	2005	$1,250,000	41	*
2	P687763	A	8		H	T	Q	SFR	D	19495 E Shetland Ln	YL	85	92886	740E2	CVHT/2	5	6/5	2	4	4,200	2004	$1,375,000	53	*
3	MRM-W09035245	A	10	V	H	T	Q	SFR	D	4103 DAPPLE GRAY	YL	85	92886	740D2	/	5	6/5	2	3 A	5,500		$1,399,000	105
4	P673601	A	20		H	T	Q	SFR	D	3873 Breton Ln	YL	85	92886	740D2	COVH/4	6	6/5	2	3	5,600	2005	$1,399,999	170	*v
5	P691229	A	16		H	T	Q	SFR	D	4077 Oldenburg Ln	YL	85	92886	740D2	CVHT/3	5	5/4	2	2 A	4,800	2005	$1,498,000	26
6	P654833	A	20	V	H	T	Q	SFR	D	3921 Paso Fino Way	YL	85	92886	740D2	CVHT/2	5	6/5	2	4	4,182	2005	$1,550,000	307	*
7	P668020	A	10		H	T	Q	SFR	D	19442 CONNEMARA Ct	YL	85	92886	740D2	OTHR/2	6	7/6	2	4	4,625	2005	$1,550,000	173	*
8	P684347	A	12		H	T	Q	SFR	D	19636 Morgan Ct	YL	85	92886	740E2	CVHT/2	5	6/2	2	4	4,200	2005	$1,598,950	79
9	MRM-H09008381	A	17		H	T	Q	SFR	D	19676 MORGAN Ct	YL	85	92886	740E2	/	6	7/6	2	4 A	5,870	2005	$1,699,000		*
10	S563202	A	10		H	T	Q	SFR	D	19484 Shetland Ln	YL	85	92886	740E2	OTHR/-	5	5/4	2	2 A	4,400	2005	$1,790,000	150	*
11	P647976	A	20		H	T	Q	SFR	D	19596 Connemara Ct	YL	85	92886	740D2	CVHT/2	5	6/5	2	4 A	4,170	2005	$1,849,000	355	*v
12	P655540	A	8		H	T	Q	SFR	D	3733 Quarter Horse Dr	YL	85	92886	740F2	OTHR/1	5	6/5	2	4 A	5,033	2005	$1,849,000	304	*
13	P690191	A	20		H	T	Q	SFR	D	19876 Trotter Ln	YL	85	92886	740E2	OTHR/1	5	6/5	2	4 A	5,033	2005	$1,890,000	35
14	P678334	A	20		H	T	Q	SFR	D	19872 RED ROAN Ln	YL	85	92886	740E2	OTHR/5	5	6/5	2	4 A	5,412	2005	$1,950,000	127
15	P660054	A	20	V	H	T	Q	SFR	D	20303 FAIRMONT Blvd	YL	85	92886	740E1	CUST/0	5	8/5	2	4	8,700	2008	$6,350,000	272	*v
16	P660150	B	2		H	T	Q	SFR	D	19985 Winners Cir	YL	85	92886	740E2	CVHT/1	5	6/5	2	4	5,100	2005	$1,300,000	272	*
17	P629075	P	16		H	T	Q	SFR	D	4116 Dapple Gray Ln	YL	85	92886	740D2	COVC/3	5	6/5	2	3	4,892	2004	$1,350,000	361	*
18	P689235	S	4		H	T	Q	SFR	D	19471 Cleveland Bay Ln	YL	85	92886	740D2	OTHR/1	5	5/4	1	3	3,850	2005	$950,000	12
19	P687538	S	6		H	T	Q	SFR	D	19377 Steeplechase Way	YL	85	92886	740D2	CVHT/2	5	6/5	2	4	4,170	2005	$1,170,000	17

Short Sale Advice from Nic Petrossi, Orange County Realtor

There are 5 things you can do when you realize you can no longer make your mortgage payments:

1. Nothing
2. Deed in Lieu (Hand the Title, and keys, back to bank)
3. Short Sale
4. Bankruptcy
5. Loan Modification

All of these options will adversely affect your credit.  However, some options ARE better than others.

For example, the on the severity scale of how bad your credit will take a hit, on a scale of 1 to 10, an outright foreclosure or bankruptcy is like an 11.  The Deed in Lieu is probably the dumbest thing to do because the bank will let you stay in the home rent free for a while anyhow while you work this all out.

A Loan Modification is the best route to take, but you have to know what you’re doing.  There are only a handful of legitimate Loan Modification companies out there that know how to handle this for you (for a fee) but are well worth the money.  Making your monthly payment smaller could allow you to keep your home and sometimes the bank will reduce the AMOUNT owed (principal balance). 

A short sale is the best route to take, usually, if you…A) Can’t get a loan modification, B) The loan modification doesn’t help anyhow because you can’t afford even the new amount, C) The home you’re living in is your principal residence (i.e. it’s not an investment property), and D) you can work out discharge of indebtedness with the IRS.

We get the term “short sale” from the fact that the bank is taking less from the proceeds from the sale of your home than the current loan amount owed.  Ergo, the bank comes up “short.”  In other words, the bank takes the hit in the pocket and you take the hit to your credit.  When you short sale, the amount “forgiven” you by then bank for the difference owed and the final purchase price is actually considered a “gift” by the government, and the government will tax your income accordingly. 

Example:   You bought your home in 2006 for $750,000.  The home is now worth $600,000 and you’ve lost your job.  Your wife (or husband) can’t handle the payments with their income alone.  You try to call the bank and work out a loan modification but the bank says “no” even though the person on the phone is not authorized to tell you “no.”  So you call an expert who can negotiate with the bank for you.  THAT doesn’t even work so now you must short sale your home.  You find a real estate agent who lists the home you once bought at $750,000 for $575,000.  The agent tells you that you need to get together a “packet.”  The packet consists of two years taxes, 2 months bank statements, a hardship letter to the bank explaining why you can’t make your payments, and any other documentation of income.  The agent gets several offers and eventually (after several weeks) submits the highest and best offer (we’ll say $600,000 for the sake of this discussion) to the bank with the “packet.”  The packet with the offer reaches the bank’s loss mitigation department where it sits on a desk with several other offers and packets on several different properties.  If there are 2 or more lenders on your home, the packet and offer have to be sent to those banks as well.  When there is a Second on the property, it gets sticky because the First Lien Holder always wants to screw the Second Lien Holder and the Second wants to get something out of the deal.  The negotiations between the 1st, 2nd (and sometimes) 3rd Lien Holders will often delay this process even longer.  Let’s say the bank settles on the $600,000…and you owe $700,000 since you originally put down $50,000 when you bought the place.  Now, you are taxed on that $100,000 as if you made that money since it is considered a gift by the IRS.

The good news is that there was a bill passed by Congress to relieve you of that “gift” taxation as long as you live in the property as primary residence and can prove insolvency (that your bills are more than your income).  You would then apply for this using IRS form 982 called “Reduction of Tax Attributes Due to Discharge of Indebtedness.”  You apply when you file your income taxes.  The word on the streets is that the IRS is so back-logged that they are not going after people for the difference on their home’s short sale, but I wouldn’t trust in that information but consult a CPA or lawyer to see how you’ll be affected.

Need help selling or buying a home in Orange County? 

Contact me, Nic Petrossi with Prudential at (714) 272-3646 or email me at npetrossi@yahoo.com

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