I saw a home on my local MLS a few moments ago that for some reason made me want to check to tax records and look at the history of the home.

The 1600 square foot home sold in 2004 for $151,990.

Fannie Mae bought it back this year for $130,000.

It’s now on the market for $104,900.

The 33 percent price drop is pretty indicative of the current values of homes in one neighborhood in my city.  And it’s a really pretty house, to boot. Ouch.

Enouno brings us an interactive mirror.  LOVE!

I love this house and if I could, I’d buy it in a heartbeat.  Just a little TLC is needed (aka roof)!

This house, located at 1720 Anza between 8th and 9th Avenues, reminds me of the one in the animated film “UP”, trying to stand tall amongst its towering neighbors. I’m told someone lives there which is hard to imagine considering the massive hole in the roof…

Sold for $330,000.

H/T Brittney.

We are in the process of updating our kitchen.  We have new light fixtures - I particularly love the one over the arm of the L-shaped counter which was a spot that was always dark.  I don’t plan to buy new cabinets, but they could definitely be spruced up.

Instead, I’m going to use some good old-fashioned elbow grease to scrub them down.  Then I will rub in the wood restoration to make the cabinets pop again.  For example, Liquid Gold or Murphy’s OIl will finish any cleaning, but also make them look new again.

I’d like to buy some newer brushed nickel handles and knobs as well to really make the kitchen look new.  Eventually new counter-tops are in my future.

Photo by HousecleaningTips.com.

Mortgage lenders have been foreclosing on a lot of homes these past couple of years.  Some flip the houses immediately - putting them back on the market as a foreclosure or REO (or real estate owned aka bank owned).  However, others are holding on to the inventory they’ve acquired through foreclosures, jingle mail, or deed in lieu of foreclosures.

Why would they hold?  To not flood the market with a huge wave of foreclosures is one theory.  However, Les Jones and his bouquet of weeds links to this story from the real estate channel that emphasizes another possible reason,

With the expiration of the first-time buyer tax credit on April 30, there are now two main props keeping the housing market afloat.  One is the growing percentage of home sales financed by Federal Housing Administration (FHA) loan guarantees.  The other is the refusal of banks to put on the market foreclosed homes over $300,000.

… Even more crucial is that selling substantial numbers of expensive homes at discounts of 50% or more would compel the lenders to take substantial losses which have been avoided by keeping them off the market.

The theory Les proclaims is worth reading all the way through, but here’s part:

If a bank holds a $500,000 mortgage they can pretend it’s still worth it, even if it would sell on the market today for $300,000. If all those mortgages were marked to market (value), the banks would be declared insolvent. The FDIC would march in, close the bank, and either sell it to another bank or shut it down and pay the depositors.

I suspect we’ll see more bank implosions if banks continue their marked to market strategies.  I can’t get a $300,000 loan on a home worth only $175,000 in today’s market.  The lenders are holding out so their accounts balance, but for how long?

Thanks for the heads up, Les.

My friend is hosting a “Realtor” open house tomorrow to bring his listing to the attention of agents in our office.  It’s been on the market for just over 150 days now and is listed at just under $270,000.  The house is truly a beauty with hardwood throughout, five bedrooms, and three bathrooms.

To get agents to attend, he’s feeding them.  I’d like to say that most of us would go anyway to show support for our colleague, but sadly this isn’t true.  When there’s no food, about three agents attend (me and two others).  However when there’s food, attendance goes up.  The last Realtor open house I went to had lasagna, salad, and a dessert that is long forgotten, and about eight agents came.

The goal of the listing agent is not only get the attention of other agents, but to also satisfy the sellers that he is doing everything he can to sell.  In my years of real estate, I have seen agents bring their buyers to houses once they toured an open house - I did that for one of my own buyers.  This time, however, I’m not currently working with anyone in that price range, so can’t make any promises.  I hope other agents can help him out, though.

Do you think “Open” Houses are important if you’re selling?  If you’re buying, do you go to open houses?

Famed singer Jim Morrison once lived at 8021 Rothdell Trail in Los Angeles. Today the Laurel Canyon home could be yours for about $1.2 million.   It’s a beauty, for sure!

Kellers Williams agents Chris and Sandy Carlson are the listing agents. If you’d like more information, they can be reached at (323) 496-6655 or 323-496-6655.

I tell buyers and sellers that when an offer is on the table, both parties have three choices:  Yes, No, or Maybe.  The preferred response - of course - is Yes or Maybe.  When a seller comes back with “No” the negotiations are done, ended, vamoose.

My friend Elizabeth from Huntsville, Alabama demonstrates the point with a story she shared today about her buyers last year and where the sellers are today after they soundly rejected an offer,

My buyers have now built their dream home across the street from this very home. …For less than they were willing to purchase that home for.  The declined offer home has not yet sold and is now on agent number 2, with a $61,500 price reduction.  My buyers offered them more than they are now willing to sell for.  Pride got in the way.

Never say no if you’re serious about selling.  Never let a thousand dollars price difference prevent you from buying or selling a home.  If you’re a buyer, paying $1,000 more is about $6 p/month more… a lunch at McDonald’s.

Put aside your pride… some things are bigger than that.

One of my real estate instructors once said that people love agents to drive them around showing houses.  I heard that when I took all of my real estate classes learning the law, marketing, and salesmanship.   I was convinced that eventually people *would* buy so you might as well stay on their good side and show them a house or two.

Almost seven years and thousands of miles later, I don’t just drive anyone around anymore.  Unless they talk to a lender first (or have proof of funds if cash buyers), they stay with their feet firmly planted on Terra until I learn more.  I want to know exactly how much the lender says they can afford rather than learning they have champagne taste on a beer budget.

A buyer called earlier today to say that a house in her Mom’s neighborhood has come on the market listed at $175,000.  Another neighbor told her that the seller just wants to get rid of it and would take $80,000 for it.  Naturally I doubted the truth to this, but promised to look into it and call her back.  I learned that the “new” owner bought it for $157,000 just 10 months before and remodeled it.  I knew there would be no way they’d give the home away for $80,000.

If it sounds too good to be true, then it’s too good to be true.

Another agent told me she has been working with buyers today who want to buy, but only if the seller will come off the price $40,000 to $50,000 dollars.  That just doesn’t happen, either.  You have to put yourself in the position of the seller and ask, “Would I do that?”

Would you?  Probably not, so don’t expect a hand-out from the seller.

Builder confidence in the housing market remains low, especially since the federal tax credit incentives have ended.  A score below 50 means a negative outlook and this month’s number was 14 - the lowest it has been since March 2009.  According to MSNBC.com,

Builders have sharply scaled back construction in the face of a severe housing market bust. The number of new homes up for sale in May fell to 213,000, the lowest level in nearly 40 years. And, at the current sales rate, it would take 8.5 months to exhaust that supply. In a healthy economy, new home inventory takes about six months to exhaust.

The good news is builders are not anticipating that the economy will fall back into a recession, but the recovery will be slow and drawn-out.