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.

We have talked often about getting your financial ducks in order before hitting the pavement to find your Laguna Beach Dream Home for Sale. It’s always nice to look and dream about a life at the beach. But it’s even nicer to make that dream a reality.

I know that it’s hard to look past the forest of economic news that is in front of you and see the opportunities. But the fact remains that we are seeing prices of Laguna Beach Homes for Sale that were last seen in 2002! Plus, the interest rates remain at historically low levels.

Lenders are more cautious with some of their underwriting criteria for various reasons. Don’t let this keep you from doing what you can to position yourself to grab your dream home when the right opportunity and circumstances collide.

One of the entry level thresholds of obtaining a loan has always been your credit score. Understanding what is factored into this score will help you to create habits that will give you the best chance at the highest score available for you. Here are just a few tips:

• Bill payment history accounts for about 35% of your FICO Score. Paying your bills on time each month is important.
• Outstanding debt accounts for about 30% of your FICO Score. This is an interesting mix. The lenders want to see that you have other credit and you know how to use it wisely, but they don’t want you to use too much of it by maxing out your cards. Most experts advise to use less than 30% of the total credit limit. For example, if you have a credit card with a $5000 limit, then keep your balance at or below $1500. Unfortunately, if you have a card that you max out but pay off in full each month, it doesn’t always reflect in your favor on your report, even though paying the balance in full each month is a good practice. If you plan to apply for a loan in the near future, start getting your credit balances down to favorable levels.
• Credit history accounts for about 15% of your FICO Score. So if you are just starting out, you won’t get too many points here. However, it is a small percentage of the total score.
• The remaining 20%…well, that’s still a bit of a mystery!
• Don’t apply for too much credit in a short period of time since it may look as if you are desperate. If you are shopping for a loan, you get a little break since credit pulls from mortgage companies over a period of several days will count as a single credit inquiry.
• If you have been approved for a home loan, don’t make any major purchases, additional credit inquiries, or changes to your credit report. Lenders are pulling credit reports for approved borrowers right before they fund the loan (which could be after you have signed loan documents and think that it’s all over but the singing). Don’t get caught with your household belongings in the moving van and no place to go!

The good news is, wherever you are at right now in terms of your credit score, credit scores are salvageable. With the right information about what will give you the most bang for your buck, and a little determination, you can get your score to a level that the banks will approve.

Take action today with the following steps:

• Get a copy of your credit report. Call your lender and have them pull it for you or get a copy from the credit companies for free.
• Take the time to review the information to make sure that it is accurate.
• Correct any errors by writing to the credit bureaus and notifying them that there is an incorrect item on your report.
• Finally, make a list of steps that you will take to improve your score (i.e.…start paying bills on time, reduce the balances to less than 30% of the limit per company)
• Take action on the steps, little by little, consistently, each week.

Remember…nothing happens until something moves…so, get moving!

See you at the beach!

Until next time…

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

Are you one of the many sellers whose home has not yet sold, but you are excited to close escrow on your next purchase?

Sellers in this quandry often face the decision of using their personal savings to meet the minimum required down payment in order to close the new purchase, and then refinancing after their existing home sells in order to replenish their savings and reduce their mortgage payment. The problem with this has been that the cost of refinancing could run into the thousands.

The other option is to wait on the new purchase until their home sells. In this market, that could take a few months depending on several factors. And, for those that are looking at all of the great inventory choices for Laguna Beach Homes for Sale, you may not want to risk missing out on that perfect home that has just hit the market.

Now, according to information from Kevin Budde from Bank of America, there is a third option. 

If you are able to use your savings to close your new purchase now, you could possibly recast that loan once your present home sells. Depending on the amount used, your payment could be lower.

Let’s see how this could work:

If you were purchasing a home at the price of $500,000 and had an amount in savings equal to 10%, or $50,000, you may be able to close your new purchase (depending on lender guidelines, etc.) with a loan of $450,000.

Then, when you sell your existing home, lets say that your proceeds were $100,000. You could use $50,000 of this amount to replenish the money that you used from savings, then apply the additional $50,000 to your mortgage through a recast, reducing that balance to $400,000 and thus reducing your monthly mortgage payment.

This is just another option to consider. If you believe that you could benefit from this, be sure to check with your lender to get all the details in relation to your personal financial scenario.

Here is the full information from Kevin Budde of Bank of America:

Recasting of Amortizing Loans  

A recast is a modification of a loan that can be completed when a large sum of money is applied to principal. A recast occurs when the principal balance of a loan is reduced and the subsequent payments are calculated using the lower principal balance. The recast does not shorten the term of the loan; however, it does lower the amount of the payment and the principal balance of the loan.

As an example, if a buyer who’s existing home hasn’t sold and was using the proceeds for the down payment, may choose to close escrow on his new purchase using funds from savings. Once his home for sale closes he will want to replenish his savings and use the rest of the proceeds to lower the principal balance to the originally planned loan amount. Most borrowers are under the belief they will need to refinance the existing loan and apply the additional proceeds in order to lower the monthly payment. This is where recasting becomes the solution.

If the borrower were to refinance they would incur thousands of dollars of costs. In addition, the interest rates may be higher which would also be a problem. By requesting a recast from the servicer of the loan the borrower is able to lower his monthly payment and not have to be concerned with costs or higher interest rates.

Recasts are permitted on FNMA and FHLMC loans. Recasting is not permitted on FHA or VA loans. Typically, one recast is allowed per year and no minimum principal reduction amount is required.

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.

Sounds like good news…right?

Please remember; however, what we reported in an earlier post regarding the expectation of this very news and what the implications are. Everyone is craving that assurance that we have reached the bottom of the market and things are popping back up. This number reported by the OC Register is just one statistic. Even though it may be accurate, it is simply reporting numbers.

Understanding the type of inventory that is now available would be necessary to draw a conclusion as to the real estate market condition. Many of the homes that sold in the first quarter of the year were priced under $1 million, where buyers could get government incentivized loans at less than about $750,000. Be aware that the higher average price over last year could simply mean that the lowest priced units are now gone.

Possible good news is that the inventory at those lower levels may have been reduced, possibly allowing for some price stabilization at the lower price points, since the supply/demand ratio may now be a little tighter. Additionally, some have speculated that because of a real or perceived scarcity in the inventory of those lower-priced homes (I’m talking about those priced at $500K or less), there have been reports of “bidding wars” and multiple offers that have resulted in higher sales prices.

In Laguna Beach Real Estate, there are not many homes in those lower prices points….although there are some. The next area that we are looking at for some good prices falls within the $2million to $5million range. The challenge will be to those that are seeking financing as opposed to a cash purchase.

Financing is out there, and the lending climate for high dollar loans is changing somewhat, so find a lender or broker and get your financial ducks in a row as early as possible. Correct what needs to be corrected, save what needs to be saved, and then get ready to enjoy that Coastal Lifestyle that you’ve always dreamed of…at a bargain price!

Below are 2 properties that just came onto the market and are great deals for someone interested in a Laguna Beach Cottage on one of our Artist’s street, or a 4-Plex income production, ocean view rental property.  If you would like more information on these properties, please visit the website at http://www.TheCoastalPropertyExperts.com OR call me directly at 949-922-8490, Hillary Caston.

480 Broadway Street, North Laguna Beach 4-Plex

INVESTORS ATTENTION!

Priced at  $1,350,000

PRIME NORTH LAGUNA INVESTMENT PROPERTY. Excellent, easily rentable, income property with ocean and canyon views. Fantastic location overlooking beautiful downtown Laguna Beach. Short walk to the beach, movies, restaurants and Pageant of the Masters from these 4 one-bedroom apartments. Each unit features hardwood floors, a full kitchen with eating area, living room, bathroom with shower tub, bedroom and sunny view decks. Laundry and storage are available to all tenants as well as one assigned off street parking space. All units are metered seperately for gas and electricity. 

675 Wendt Terrace, Laguna Beach, CA

Priced at $798,000

3 Bedroom / 2 Bath / 752 Sq. Ft on a large lot 6213 Sq Ft

This cottage is located in central Laguna on one of the ‘Artist’s Streets’ within close walking distance to the high school, downtown and the beach. It is a classic 1940 beach cottage with three bedrooms and one and one half baths. Features include some hardwood floors, a wood burning fireplace, an oversize one car garage, driveway parking, ocean and Catalina Island views from an updated kitchen, the living room and the west facing deck. The cottage is nestled among trees gving it a feeling of privacy. Interested parties should measure size of house and lot to satisfy their needs. Accuracy of information in listing is not warranted.

You will need to scroll down a bit for the 2nd Real Estate Home Video, but you don’t want to miss this Short Sale that has been reduced almost $3Million!

Here are the Stats for Laguna Niguel:

Laguna Niguel Homes for Sale

Currently, the number of Active Homes for Sale = 297

97 (or 32%) of Active homes for sale are listed as REO or Short Sales

Laguna Niguel Closed Home Sales since 1/1/10

Total Homes closed in Laguna Niguel since 1/1/10 = 289

137 homes (or 47%) of these were REO or Short Sales

Average price of closed REO and Short Sale Homes = $435,612

93 homes (or 67%) of “Distressed” closed sales had a sales price of $500K or less

122 homes (or 89%) of “Distressed” closed sales had a sales price of $750K or less

This information on the closing price of closed “distressed” properties falls in line with the news that many homes in the market in the first quarter were in the price ranges that qualified for government incentives or FHA, Fannie Mae or Freddie Mac financing.

Special Feature Short Sale Property in Monarch Custom – Price Reduced!

This next home is priced well above Government spending limits; however I wanted to highlight it for you since it has received some recent price reductions that may be of interest to someone looking in this area. This is a gorgeous Short Sale property located in the Monarch Point Custom community:

Watch the Video Presentation

Location: 31951 Monarch Crest, Laguna Niguel

Originally Priced at $6,699,000

Now Priced at $3,895,000

MLS# U8005331

This property is FEATURED as a property of interest!

Listed by Surterre Properties, Inc.

LOVED by Hillary Caston and the team at The Coastal Property Experts

http://www.TheCoastalPropertyExperts.com

For more information on this, or any other great properties in Orange County Real Estate, please check out the website or call Hillary direct at 949-922-8490

Location: 31951 Monarch Crest, Laguna Niguel

Originally priced at $6,699,000

Reduced to $3,895,000

This is a Short Sale!

4 Bedrooms / 6 Baths

6613 Sq. Feet of Luxury Living Space on a 10,427 Sq. Ft. Lot for all your entertaining delights.

PRICE REDUCTION! Stunning and luxurious ocean view custom estate in Monarch Point. Perched high above Laguna Beach with panoramic ocean views from Dana Point to Los Angeles. Unique amenities in this amazing home include 6 fireplaces, 3000 bottle wine cellar, 7-car garage, elevator, sparkling pool & spa and outdoor loggia with fireplace.

Until next time…..

This week’s picks include 3 Laguna Niguel Homes for Sale. These homes show the best of an Orange County lifestyle. 

14 Toulon, Laguna Niguel, CA

14 Toulon, Laguna Niguel Home for Sale, CA

MLS S609174

Priced at $1,075,000

3 Bedrooms / 4 Bath

Approx. 3183 Square Feet with View

Listed by Hanne Lohde of Tarbell Realtors

13 Copps Hill Street, Laguna Niguel, CA 

13 Copps Hill, Laguna Niguel Home for Sale, CA

MLS S608802

Priced at $1,079,900

4 Bedrooms / 3 Baths

2900 Square Feet

Listed by Jack Handley of Handley Real Estate

Fabulous remodeled home with a superior end of cul-de-sac location creating a more private rear-yard setting. Awesome canyon and city views. Premium lot has a 9 car driveway for parking or safety area for recreation. Remodeled kitchen with granite counters, new double stainless steel convection oven, new stainless steel dishwasher, granite fireplaces, granite bar, new carpet, newer tumble stone flooring, french doors and windows, wood plantation shutters, westec secruity system, and remodeled master bath wtih granite counters and seamless shower enclosre. Professional landscaping and wonderful community amenities.

Want more information?…Contact Us

22852 Seaway Drive, Laguna Niguel, CA

22852 Seaway, Laguna Niguel Home for Sale, CA

MLS L32421

Priced at $4,200,000

4 Bedrooms / 5 Baths

5400 Square Feet

Listed by Mark Sweeney of Monarch Beach Realty

First time ever on the market single family home with spectacular coastline and white water views facing the Ritz Carlton Hotel and Salt Creek Beach. Private gate guarded community in the custom development of Monarch Pointe. 5,400 square foot home on a single loaded street. 4 bedrooms, 5.5 bath, media room and workout/gym room and office. Gourmet kitchen and custom built-in bar. Entertaining yard with pool, jacuzzi and unbelievable views. 

Want more Information?….Contact Us

If you are interested in these, or any other properties, please call Hillary directly at 949-922-8490

OR

Want us to help you find something? Just fill out the contact form and let us know what type of home you are looking for and let our team get to work FOR YOU!

Remember…we look at property all day so you don’t have to!