Professional Documents
Culture Documents
Table of Contents
Disclosure 2 Market Summary.. 3 Noteworthy Sales.. 6 Other Real Estate News......................... 7 Recommended Resources.. 8
Disclosure
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The REO/foreclosure pipeline continues to dwindle in numbers. The banks/investors are in a stall pattern due to the new California Homeowners Bill of Rights. They are simply trying to figure out what the next steps will be (or should be, or might be) and to put them into action. I did finally get my post up about Short Sale Burn Out for a more in-depth discussion. Distressed property owners have some options and probably plenty of time to figure out their course. I was in the Inyo-Mono Title (they process most of the Trustee's Sales in the two counties) title plant in Bishop this last week and they confirmed that this is all a new and quite interesting development that the California legislature has thrown into the mix. The deed-in-lieu-of-foreclosure may indeed become fashionable; much like a cash-for-keys scenario, the lender gets the property back in good condition and is able to market and resell the property in a quick turnover period. This might be the new REO wave. And we might see REOs dribble through the market until 2020... REO asset managers have played the "price discovery" game well in the past year. Most of the strategy is based on seasoning the REO listing on the market long enough (but not too long) to receive multiple offers and countering with a request of "highest and best" from the potential buyers. This has worked well to shake out the "best" buyer ("highest and best" is not always highest). In the last few weeks the process may be failing. Or has it? Asset managers just seem to be "sitting" on offers and those delays just cause more work and frustration (and sometimes distrust) for all of those involved. And I have often complained that they don't respect the role of "salespersons" in the transaction nor the "momentum of the deal." Maybe they too are suffering from burn out. Or maybe they are just seeing the same trend I'm seeing. There are more and more small, independent "investors" throwing offers out without real commitment to the property or the marketplace. They are making multiple offers on properties all over the place. This past week we had "serious" offers being withdrawn because "they got an offer accepted in San Diego (or Las Vegas)." This is the new trend, and we prefer to sort these buyers out. Meanwhile, even non-Fannie Mae asset managers seem more committed to placing low-end REO properties into the hands of owner occupants rather than investors. That's an especially good thing here in Mammoth.
I'm also seeing a new, curious breed in here; the delusional move-up (within Mammoth) buyer. There's always been some of this but I seem to have comeacross more than my share in the past month. But right now they appear especially indignant (and unrealistic) about the valuation of the property they want to sell and the valuation of the property they want to purchase. It is almost comedy. Do they think they are such geniuses to be able to sell high and buy low within a short time frame?? Some believe their strategy even to the point that they will ultimately increase (dramatically) their total transaction costs in the move. Let me tell you; the key to "moving up" here in Mammoth is to find the RIGHT property that meets your needs and desires in a quality location (and learning and heeding the lessons from your existing property). Keeping the total costs efficient is a distant second. The best properties/opportunities aren't always available, and the past has created many shoulda-woulda-coulda buyers.
**Noteworthy Sales
The REO sale of 73 Dorrance for $363,000. This duplex is in the heart of the Sierra Valley subdivisions (aka "the Ghetto"). The property was neglected and is going to need considerable rehabilitation. The property was originally listed at some ridiculously high price based on a BPO (broker price opinion) completed by some ignorant agent in Mammoth. But eventually "the market spoke" and the price/value was discovered. One of the things I gleaned out of this process is that a duplex in Mammoth offers more than "investment" value for many buyers. Buyers will pay far more than a pure "numbers" value for a property like this because it offers an appealing opportunity to have a second home/crashpad and an income stream and a "caretaker" on their property all in one. The sale of MeadowRidge #37 for $600,000. This 3 bedroom + loft / 3 bath condo is on the bluff at this complex and has a jaw dropping panoramic view. Units in the same project of the 2 bedroom + loft floorplan can be purchased for less than $300K. That means a buyer paid $300K for the view and an extra bedroom/ bath. In the '80's and '90's we used to think big views added $5-10K in value. Not today. The sale of Stonegate #8 for $945,000. This is one of the 3 + loft and den floorplan units (the smaller floorplan). This is the last of the Stonegate developer "related" units on the market. The same floorplan sold for $1,850,000 in April of 2008. Somebody should tell them (the Association) to take the broker's ratty old sales sign off the property, it de-values the property.
**Closed sale data is compiled from in-house files and public records.
Recommended Resources
http://remax-mammoth.com Search the entire MLS in Mammoth Lakes and the surrounding areas in Mono and Inyo Counties. http://www.mammothrealestateblog.com Stay up to date with the latest real estate news and trends in Mammoth Lakes. http://www.youtube.com/user/PaulOsterRealEstate - Real estate videos and virtual tours of homes for sale in Mammoth Lakes.