Mike’s Real Estate Show

 Land is almost scarce now days. I have a parcel I’m marketing for a client in Cloverdale and it has very little competition. One thing you need to remember–If you bring the property to market you must have the following done:

1. Percolation test: Not an old outdated test but a viable, “vested” test with system design in place. If you don’t have this and face a “wet weather” perc then you’ve created a major headache for ALL parties to the transaction as so many inches of rain has to fall before you can test and if you miss the “perc” date then you’re into the next year!! “Vesting” the system is the way to go. I’d contact the PRMD (Permit Resource Management Division http://www.sonoma-county.org/prmd/). Actually this would be your first stop to determine many facets of your properties marketability including but not limited to:  zoning, minimum lot size, density, land use, septic requirements, water zone, etc.
2. Water: If you’re in Sebastopol you could be in a zone 3 or 4 water area. Zone 4 means you MUST prove water before you can build. Buyer’s want to come in and have a complete package awaiting them. The two essentials are septic and well. Get these in place and you can move forward. Weeks’s Well and Drilling are the kings of Wells in Sonoma County.
3. Survey—know your property lines. I can’t tell you how many clients’ I’ve represented who bought their acreage years back and where told the “fence” is the property line!! Rarely is it the case! And remember, Assessor Maps state right on them for “Assessment Purposes Only!” I sold a huge parcel in the Sharps road area years back which was over 600acres on the AP Map but when surveyed came up 50 acres short!! I could go on and on about the lawsuits I’ve heard from Surveyors who are called in “after the fact” to determine property boundaries!
4. Is the land plantable for vines? Soils reports? Just because the neighbor has vines doesn’t mean yours will!! Don’t misrepresent!   And if you have plans for a home forget about the new owner giving them any value. Your 10 acres price and finished housing product push the overall estate into the custom built arena. Someone buying this property will want THEIR dream home—NOT YOURS.
5. Lastly, financing. Good opportunity for you to carry and try an installment sale. If not great financing actually exists for bare land. Will you be exchanging? I’ve heard rumors of IRS investigation into changing the “like-kind” status so you might want to get this puppy on the market and exchange while the exchange laws are still in place!!
6. And Listen to my local radio show: The Real Estate Hour, 1350AM, Sundays, 9 to 10am, KSRO. Thanks!

Here is the latest press release from the Office of Federal Housing Enterprise Oversight or OFHEO. Here’s the link which will take you to the press release:  http://www.ofheo.gov/media/hpi/MonthlyHPI32508.pdf

  This site uses appraisal data which is more relevant to the real market numbers. I talk about this site on the radio show all the time. Kinda dry but usually very indicative of the overall tenor of the marketplace. But remember, if you want local data go to my “Market Snapshot” which is on the home page of this blog and use the data available to you through our local MLS.

I teach a class on interpreting statistics from our local Multiple Listing Service (MLS) for Keller Williams Realty which is MY company. I ran the number of bank owned properties currently on the market or “REO’s”(real estate owned). I found some interesting numbers. The amount of short sales on the market is under 5 months and the amount of homes being sold makes up 25% of our monthly sales. A “balanced” market is usually at 6 months of inventory. With REO’s you are at 5 months which indicates a “Seller’s” market!! We are seeing multiple offers in the REO marketplace. The prices are hitting a point where they are being snapped up! I’m going to post an interesting article from Brad Bollinger from the NorthBay Business Journal where Brad says this just MIGHT be the bottom in Sonoma County. We shall see!

Here in Sonoma County, DataQuick Information Services, is reporting total home sales of 254 where reported which is down from the 2007 number of 453 or 43.9%. The median price, a measure of sales activity throughout a real estate market, was down 22.3% from last years number of  $515,000 to  $400,000. Throughout the Bay Area home sales remain at a two-decade low
  Here’s their press release from today, March 13, 2008 for the Bay Area overall:
La Jolla, CA.—-The waiting game between Bay Area buyers, sellers and lending institutions continued last month as sales dipped below 4,000 for the second month in a row, a real estate information service reported. Read the rest of this entry »

Flynn Investments, San Francisco investment group, has purchased the remaining 33 homes of the project called, “Streamside”. Here’s the BIG WHY they decided to purchase, for $15,000,000, these Santa Rosa townhomes: “It’s one of the nicest towns in Northern California. It’s close to teh ocean, it’s close to the City (SF),it’s in the Wine Country, it’s got a nice airport, it’s got everything. We probably wouldn’t buy this in Sacramento if the same deal came up.” Thems pretty powerful reasons to own real estate in our county! Mr. Flyn also stated he had no crystal ball, didn’t really know WHEN the market would turn around but feels his values will be preserved over the long haul.  They will be renting the units out and cited a strong rental market as a factor in the purchase. Now if these guys are willing to plunk down $15,000,000, do you feel purchasing your first home has a good chance of of being a stellar invesmtment in the long term? Give me a call if you want to chat about making this market your launching pad for long term financial success. 707-322-8503.