The best time to buy a home is in the fourth quarter of the year. That is, in that stretch of holiday months covering October thru December.  There’s a very sound reason for this. Sellers are in a much greater hurry to rid themselves of properties this special time of year. Imagine you’re in a nightclub without that catch you were looking for at 1:45 am. You’re a bit more itchy to make things happen, right? Sellers during these months pretty much feel the same forces of nature. That’s because a large percentage of sellers want to close things out before the first of the year. It’s really a psychological thing. Selling in Quarter 4 gives people a comfortable sense of closure. Plus they want to close their books by December 31 to keep things in order for the Tax Man.  The upshot of all this end of year urgency is that prices often drop to bargain levels during this period.

Of course, you don’t need to wait for the last quarter to start looking.

If you’d like to learn more about the many priced-to-sell Laguna Beach homes that are available, I’ll be delighted to help. As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

I’ll see you at the seashore!

Why this special oceanfront enclave nestled in South Orange County.  Because it has it all. Other places make this claim. But LB backs it up big time. The endless selection of Laguna Beach activities are guaranteed to send your wow meter into the red zone. A few suggestions –

• Hit the Beach – Obviously. LB is made up of eight separate irresistible beaches, each with its own energy and character.  Swimming, surfing, boating, picnicking, scenic strolls, kayaking tours, and diving are some of the ways to splash up the kind of fun you won’t find in the big city. And when you’re ready to exercise your loafing privileges, there are miles of white sandy beaches suitable for sunbathing.
• Get Up Close and Personal With Some Extremely Large Mammals – Whale watching expeditions leave from nearby Dana Point. Bring a camera. But don’t expect autographs.
• Escape to a Park – Four scenic ones to choose from, including Heisler Park Ecological Preserve.
• Get Your Sport On – Golfing, Bike Riding, World Class Health Club, and Hiking are yours for the asking.
• Indulge Your Artistic Side — Enjoy four acclaimed events: Pageant of the Masters, Festival of Arts, Sawdust Festival, and Art-A-Fair.

And , of course, the views. You could spend all year taking in the miles of breathtaking ocean vistas. What more could you want?

For folks lucky enough to live in this Pacific Coast paradise, life is a year-round vacation. Would you like to be one these incredibly lucky people? I can show you why it’s a fantastic time to take advantage of the Laguna Beach Real Estate market.  As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

See you at the seashore!

Every week, Hillary Caston and her team at The Coastal Property Experts look for homes for sale that are of interest. Take a look at the Picks for 7-29-10. To see the full MLS listing information on any of these properties, go to: http://www.thecoastalpropertyexperts.com/Market-Snapshot-Report.php

This week, we highlight 6 homes: 2 Homes for sale in Laguna Beach, 2 Homes for sale in Laguna Niguel, and 2 Homes for sale in Dana Point.

Registered Users of the website get the first look at these properties. To get on the list, be sure to register after clicking on the “Search MLS Listings” button.

33932 Barcelona Pl, Dana Point, CA

33932 Barcelona, Dana Point Homes for Sale

Priced at $1,849,000

$307.81/Sq.Ft.

The layout of this home is a little “unique”; however, the extras on this Dana Point home for sale are incredible: gameroom,

Guest/Maid quarters, Photo Lab/Dark Room/ Wine Cellar

Workshop, Media/Music Room/Game Room, Unfinished

Basement, Exercise Room, Au Pair Suite, Pool&Spa,

4-car garage (which can fit an RV)  and more!

The home is 6007 SqFt and sits on a 9500 SqFt Lot.

32512 Azores Rd, Dana Point, CA

32512 Azores, Dana Point Homes for Sale

Priced at $1,699,000

$536.47/Sq.Ft.

Single Level Custom home in Monarch Bay Terrace.

More than 1/3 acre lot size with a 3167 SqFt Home

715 Marlin, Laguna Beach, CA

715 Marlin, Laguna Beach Homes for Sale

Prices at $2,130,000

$495.35/Sq.Ft.

4300 Sq. Ft. on a 9000 Sq. Ft. Lot

Ocean Views and a Master with Fireplace

232 Chiquita St., Laguna Beach, CA

232 Chiquita, Laguna Beach Homes for Sale

Short Sale Priced at $1,200,000

$571.43/Sq.Ft.

Ocean view remodel with 3 Beds/4 Baths

2100 Sq. Ft. on an R2 lot that has a 1/1 rear unit that currently rents for $1400/mo

31941 E. Nine Drive, Laguna Niguel, CA

31914 E Nine, Laguna Niguel Homes for Sale

Priced at $1,050,000

$ 368.42/Sq.Ft.

Gated community of Links Pointe with views of El Niguel Country Club Golf Course

4Beds/3Baths/2850 Sq. Ft. on a 7560 Sq.Ft.Lot

14 Palisades, Laguna Niguel, CA

14 Palisades, Laguna Niguel Homes for Sale

Priced at $1,195,000

$ 497.92/Sq.Ft.

Ocean views on a single loaded cul-de-sac

4 Beds/3 Baths / 2400 Sq. Ft.

In their first U.S. Foreclosure Sales Report, RealtyTrac reported that 31% of all residential home sales in the first quarter of 2010 were in some phase of the foreclosure process. These include homes for sale in default, where an NOD had been filed by the lender, or those that were already taken back by the bank and labeled “REO” or Real Estate Owned.

In comparison, the percentage of homes sold in the first quarter of 2009 that were in the foreclosure process sat at 37%. More than 1.2 million U.S. properties that sold in 2009 were in some stage of the foreclosure process.

On average, buyers who purchased a home for sale in a foreclosed status paid 27% below the average sale price of properties that were not in a distressed status.

The report noted that “Discounts on REOs are larger than discounts on pre-foreclosures, although discounts on pre-foreclosures appear to be trending higher as short sales become more common.”

There are a couple of points to keep in mind as you look at these numbers:

• The statistics reflect a large area: the entire country or an entire state. They are not broken down by County or City.
• In California, for example, the number of distressed properties in the Inland Empire where there was a large amount of investment owned properties, was higher than in some of the coastal areas such as Laguna Beach.
• In areas where there was a high percentage of vacant, REO homes and those in foreclosure, the banks may have been more motivated to close the sale on the property so that their exposure in the area was lessened.
• It may have been more financially beneficial to use the government TARP money to make deals in these higher-risk areas.
• The number of REOs may decrease in future reports. Lenders have indicated that they are more inclined to work with a short-sale home for sale  situation than to take on all the added costs involved in an REO, such as attorney fees.
• Sellers of non-distressed properties are becoming more educated about their need to price their homes according to where the market is today, not what it was a couple of years ago. Many realize that they are competing with distressed properties for buyer’s money. So, keep your eyes on both “regular” and distressed properties. After all, a good price is a good price, no matter what the situation of the seller!

 Read the full report:

In another, related report, the top 50 cities were listed that had the greatest price reductions…Orange County Homes and Laguna Beach Real Estate were not on that list! On average the top 50 areas included saw average reductions from 7%-26%. The city with the most drastic reductions, which is really no surprise, was Detroit. No ocean view there!

One note to keep in mind as you look at price reductions. There are always 2 reasons for the price reductions. 1) Economically, the market has determined that the home is worth less than what seller has priced it at and 2) The seller decided to initially price the home at a higher rate than what the current market deemed appropriate – this is more a case of seller denial of current market conditions rather than an indication of overall market conditions.

It’s a very slight difference in perception, so just be sure that you don’t simply get caught up in the statistics and numbers. They can be used as a guide, but in the end, what you determine to be the perfect home and the perfect price is up to you.

As always, I invite you to allow me help you with any questions that you have. Those that have worked with me know that I’m a no B.S. straight shooter. If a home that you are interested in is overpriced – I will tell you. Similarly, if a great deal is out there I will enthusiastically share it with you!

Just Contact Me!

Until next time…

All have come onto the market in the past 2 weeks and have already dropped in price! These are priced between $875K and $1.1Million.

For all Orange County Real Estate, click through to the website

29672 Novacella, Laguna Niguel

Originally Priced $1,199,000

Reduced to $1,045,000

4 Beds / 3 Baths with a pool

3400 Sq. Ft. on a Cul-de-sac

MLS# S624640

27696 Manor Hill Rd., Laguna Niguel

Short Sale

Originally Priced $ 1,149,000

Reduced to $1,099,000

4 Beds / 4 Baths

3573 Sq. Ft.

MLS# S624005

35 Brownsbury Rd., Laguna Niguel

Originally Priced $ 895,000

Reduced to $ 875,000

Located in Ocean Ranch

4 Beds / 4 Baths

2784 Sq. Ft.  with Main Floor Master with Fireplace

MLS# S623963

14 Saint Paul Ln, Laguna Niguel

Originally Priced $ 949,000

Reduced to $899,000

Owner may carry with 10% and good credit

3 Beds / 4 Baths

2784 Sq. Ft. in Beach Brand Ocean Ranch

MLS# S624397

1) Information on 8 Home for Sale in Laguna Beach that have had significant price reductions since they were first listed. Many of these are priced under $1 Million which can be considered a fabulous deal for this coastal beach community in Orange County.

2) From our archives of information, we pulled up an article from 2008 discussing what real estate REO and Short Sale investors were looking for at that time…what they considered to be a bargain when buying a home for sale.

Price Reductions: If you would like to see details on any of these Laguna Beach Homes for Sale, click through to the website.

Discover What Some Real Estate Investors Consider to be a Bargain:

I have often mentioned that we are seeing prices in Laguna Beach that haven’t been seen since 2002 – this is good news for buyers. Add to that, historically low interest rates and you should keep your eyes open for your next home.

I ran across an interesting article that appeared in Investor’s Business Daily in July, 2008. The article was titled “Investors Hunt for Bank-Owned Property Bargains in Packs”. The article explained how investors were pooling their money to buy defaulted loans in bulk directly from the banks rather than trying to negotiate properties just one a time, a process which they felt was too pricey, and too slow.

The interesting thing was what these investors were looking for in regards to price rollbacks. It stated, “Some want only homes with prices cut to 2001 sales values…People who have cash positions now are going to do very well….”

So where are these investors looking? “Some investors say a key to this type of purchase is focusing on spots with strong rental markets. Some buy strictly in the Sun Belt – Texas, Florida, California – citing the region’s long-term desirability”

Location is always important in real estate. You may be able to get a lot of house in a place such as the Inland Empire; however, the better value may be near the coast.

In the past, the entry level cost of a home in this area has pushed people further inland for a home purchase. What was true in the past may not be true today if you are paying attention to the prices.

Keep your eyes open for your opportunity and if our team can be of assistance to you, give us a call.

Here are just a few homes new to the Laguna Beach Real Estate market since the beginning of the month. Do any of these spark your interest?  2 Emerald Bay Beauties, a Plantation inspired REO in “The Loop”, and an Ocean Close lot with approved plans for a Gregg Abel cottage reminiscent of “Old Laguna”.

Click here now to see all the details for these homes!

21056 Laguna Canyon Rd, Laguna Beach:

Listed at $969,000

Large, 13,740 Sq. Ft. Lot, with main house and studio apartment

200 Fern St., Laguna Beach:

 Listed at $899,000

Secluded lot with plans in Woods Cove

1316 Cerritos Drive, Laguna Beach:

 Listed at $1,149,000

4 Bedroom Temple Hills Home

3035 Bern Drive, Laguna Beach:

 Listed at $1,329,000

Single Story pool home with views on a 28,350 sq. ft. lot

974 Del Mar Avenue, Laguna Beach

Listed at $1,995,000

Panoramic Views from this 3300 Sq. Ft exquisite home

723 Emerald Bay, Laguna Beach

Listed at $3,995,000

Soft European influences adorn this 4 Bedroom home

73 Emerald Bay Drive, Laguna Beach

Listed at $10,995,000

5 Bedrooms / 7 Baths and prime Main Beach location

Newly constructed in 2008

31302 Monterey Street, Laguna Beach

REO Listed at $1,400,000

Period charm throughout this 2222 Sq. Ft. Home for Sale

22825 Channel View, Laguna Niguel Homes for Sale

22825 Channel View, Laguna Niguel 

 Price Range $2,499,000 – $2,899,000

6 Beds / 7 Baths with 6694 Sq. Ft.

29 Coronado Point, Laguna Niguel Homes for Sale

29 Coronado Pointe, Laguna Niguel

Priced at $1,111,000

This is an REO with US Bank

Assessed Value is $1,416,891 from about 2006

4 Beds/4Baths with 3429 Sq. Ft.

21 Le Conte, Laguna Niguel Homes for Sale

21 Le Conte, Laguna Niguel

Priced at $2,699,900

This is a Fixer with great potential and incredible

Ocean and city lights views

6 Beds / 6 Baths with 4820 Sq. Ft.

Are you sorry that you missed the $8000 Tax Credit?

For example, the average interest rate in the Month of April, prior to the deadline, was 5.34%. A borrower with a 30 year fixed rate on a $280,000 mortgage would pay $1561.82 per month. If that same borrower were to purchase in May with an average interest rate of 4.625%, that payment would be $1439.59 per month. This is an annual savings of $1467 which over 30 years result in savings of over $44,000. That’s quite a bundle!

“In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” said Lawrence Yun, chief economist for the National Association of Realtors.

Borrowers who wanted to take advantage of the credit have now purchased. Some describe these as “borrowed buyers” who would have normally purchased over the course of the summer months, concentrating buying activity into a set amount of time. This concentration resulted in an increase of 30% in home sales for the month of March.

For now, with the interest rates as low as they are, there is still a good incentive to purchase which will soften the landing for the tax credit expiration. And there are Laguna Beach Homes for Sale which could become great values with favorable prices and low interest rates.

However, there is still the question of that “shadow inventory”, the millions of foreclosures that need to be sold but haven’t yet been listed. That number could be as high as 4.5 million homes owned by banks and individuals that are waiting for the right time to enter the market.

When they do, the normal supply and demand factors will come into play to determine price. As prices rise, inventory will increase which could drive the prices down as supply outpaces demand. As the inventory decreases, prices will creep up again until demand is met. This cycle could result in a sawtooth recovery of home prices – moving up and down until inventory is stabilized.

For buyers looking for a bottom in the market, it may be wise to watch for several dips and be ready to take advantage of the right home at the right price. As always, get your financial ducks in a row before you find the home of your dreams. If you are going to use bank financing, get preapproved now. It is always best to be ready so when that home you want enters the market, you will be able to act.

And for Laguna Beach Homes for Sale, you just may be able to find a home priced less than $1 million that could qualify for favorable financing. Imagine, investing and living a Laguna Beach Lifestyle!

Until next time…

I just wanted to take a minute to share an article that I recently read from Rismedia. For our investors out there, these are some pretty good rules of thumb. This article references basements being “a must”; however the author is located outside of California. For our California and Laguna Beach Real Estate market, basements may be nice…but would not be considered “a must”.

Another thing to point out is that investors ARE buying homes in this market. Some are still waiting on the sidelines; however, for a well-priced investment home a good time to jump in is when YOU are ready and the RIGHT deal is found. And trust me, deals can be found every day somewhere in the country.

Know the risks….know the rewards.  Enjoy the article!

Seven Tips to Profitable Investing in Foreclosures

RISMEDIA, May 18, 2010– Have you been thinking of investing in a foreclosed home? The game plan sounds simple enough: purchase a foreclosure at pennies on the dollar, cover the mortgage by renting the property to tenants, and then sell it at a tidy profit when the economy recovers.

Unfortunately, when it comes to buying foreclosures, “things are not as simple as they appear,” says Jim McClelland of Mack Companies, a Tinley Park, Illinois firm with a portfolio of 365 previously bank-owned homes under management.

McClelland knows foreclosures: he buys two or three each week. Most of his homes are located in Chicago’s south and west suburbs, such as Dolton, Olympia Fields, Homewood and Glenwood. Mack’s in-house contractors redevelop these often badly run-down homes so that they can be rented out.

Foreclosures can be either a financial boon or a boondoggle. To help smooth out the inevitable bumps in the road to real estate riches, McClelland offers this advice:

1. You are investing in a community, not just a home. The neighborhood in which the foreclosure is located will ultimately determine its long-term appreciation. Before being lured in by a low price, do your homework. Is the town investing in new infrastructure, roads, schools, libraries and public parks? Is the downtown area thriving or declining? Bottom line: if the local government or businesses are not investing in the town for the long-term, neither should you.

2. Stick to REOs: A “Real Estate Owned” (REO) property is a safer way to purchase a foreclosure. Unlike a home sold at auction or purchased during pre-foreclosure, its title is held by a bank or lender; there are no other liens against the property. While an REO’s price discount is typically less than a foreclosure sold at auction, there is also less financial risk. Inspections are allowed. No evictions are required. Plus, the bank will see that the property is cleaned out before you take ownership, saving you potentially thousands of dollars in labor cost and dumpster rentals.

“Investors should know that homes sold at public auctions are the leftovers of an inventory picked over by professionals,” warns McClelland. “Buying one sight unseen is a gamble.”

3. The more bedrooms the better. “Three bedrooms is good, four is better,” says McClelland. Other features that will help you charge higher rents are garages, basements (a must), and at least one-and-half bathrooms. In general, steer clear of wood frame homes. Brick is a better investment.

4. Know when to walk away. There are hard fast rules as to when to pass up on a foreclosure. For example, if total repair work is more than $30,000, it is unlikely an individual investor will recoup their money. Damage to the foundation is another serious red flag, as is mold infestation or extensive plumbing repairs that will require breaking open floors and walls. It is crucial that you hire an experienced home inspector before making a bid. Otherwise, a foreclosure that seemed like a good deal could end up costing you more money than the home is worth.

5. Use the one percent rule for rents. McClelland recommends that investors charge a monthly rent of approximately one percent of the value of the home, i.e., $1,500 rent for a home valued at $150,000. While there are exceptions to this rule, collecting one percent per month should cover mortgage, insurance and taxes, plus provide a small profit that he recommends be held as a reserve for home repairs or other emergencies.

6. Skip the flip. “Real estate is slow,” advises McClelland. In other words, don’t quit your day job. Plan to hold your foreclosed properties from ten to fifteen years, just as you would a mutual fund or other retirement vehicle.

7. Consider a passive investment: Buying a foreclosure on your own is a major commitment. If you are not ready to become a landlord, McClelland offers an alternative. He has sold a limited number of his redeveloped properties to investors. For a small monthly fee his staff continues to maintain management responsibilities on the property. This way investors can take full advantage of foreclosure opportunities without wearing a landlord’s many hats.