Recent Client Review for the ZiaGroup

I just received a review from the out of state client who purchased the home discussed in my last blog post. Thank you Aileen!

"My wife and I met Daniel a few years ago when I was looking for a summer rental in Santa Barbara. I thought he was so kind and generous with his time-for just a rental. We fell in love with Santa Barbara and always toyed with the idea of purchasing a summer home there.

An unexpected opportunity fell into my lap in September 2009. I am now officially the owner of a property purchased through Daniel, with the transaction taking place while I was in the comforts of New York, in less than 30 days. As luck would have, Daniel sent an e-mail to us and we pretty much took his word on the condition of the property. He emailed us photos immediately and followed through exceptionally well. Whatever we didn't know, Daniel did. His no pressure attitude, in conjunction with his confidence in himself and the property he had found for us, was undeniable. He was forthcoming with even the smallest details about the property. His honesty and his attention to detail were apparent from the beginning. We put great faith in him, as this was a long distance purchase on a property that we had not seen. I really could go and on about his professionalism. There was not one question that stumped him during this very untraditional purchase. He did his research and kept us abreast to all progress. His professionalism and knowledge were paramount.

Let me say that finding Daniel Zia was an absolute gift to us! He facilitated me purchasing my dream summer home in a matter of 30 days and he has continued to offer his services post transaction. He has checked in on the house since we are not there. Knowing he is still available to me really puts my mind at ease. He puts his heart and soul into his work and you would be very fortunate to have him on any side of your real estate transaction!" -Aileen Zemel

The ZiaGroup is positioned to provide exceptional service to our clients who are in town or out of the Santa Barbara area. Our website is our first step in serving you as you begin (or continue) your Santa Barbara real estate search.

Daniel Zia, Broker-Associate & Realtor®
Prudential California Realty
For comprehensive real estate information & to search the MLS, visit:
www.ZiaGroup.com

Cell: 805.637.7148
Lic. #01710544
-Leading Edge Society: Top 7% of Prudential Agents Nationwide

New Santa Barbara & Carpinteria REO Listings this morning

These two Bank-owned REO listings just came on the market.
1) San Roque 2/1.5 Condo in Santa Barbara for $330k: This is a beautifully remodeled condo unit with amenities and quality construction unlike anything else at this price in SB. Fully remodeled with granite counter tops, high-end appliances, in-unit laundry, bull-nosed corners, etc. This unit has a private and fenced patio and the complex has easy access to 5-points shopping center, La Cumbre Mall, and all that upper-state street offers.

2) 4/3 house or 2-units for $459k in Carpinteria: This property sold for this price in 1999, which by that simple equation (given that we are at 2003 prices) will make it one of the best values of the year. From my knowledge it is currently set up as a 3/1 unit downstairs and a separate, large 1/1 unit upstairs. You are within 1 mile to downtown Carpinteria and probably close to that for beach access as well. The home does have close proximity to the freeway, but you can't beat the price. Would make an excellent rental, owner-user situation, or multi-family investment property.

If you have any questions, or want to schedule an appointment to view either property, please contact me ASAP on my cell: 805-637-7148 or via email at Daniel@ZiaGroup.com. I'd be happy to provide all available info including property address, map location, pictures, square footage figures, etc.

I expect the Carpinteria property to sell quickly. The market continues to move at a very rapid pace. In the past two weeks, I had clients negotiating on 6 properties, five of which had multiple offers, and one of which had 20 offers. Hopefully, that gives you some frame of reference as far as what type of market activity we are seeing.

Home Buyers: What Factors Impact Your Credit Score?

There currently exists a large market for credit reporting and monitoring, as evidenced by the popular (and catchy) FreeCreditReport.com melodies. Your credit score is important, especially to potential buyers seeking to obtain the excellent financing options available today. An excellent credit score is a score in the high 700s, but a score in the high 600s or low 700s is very good, as well. A higher credit score can add up to tens of thousands of dollars in savings over the course of a typical mortgage. But what are the factors that impact the credit score and how you can control them to improve your credit score? The following are the five major categories the corresponding percentage of weight:

PAYMENT HISTORY (35%) – Pay your bills every month by the due date and you will be well on your way to a quality credit score. If you have not paid on time, how late are you? How often are you late on payments? This includes everything from your electric bill to your personal credit card.

AMOUNTS OWED (30%) – There are two major items in this category. The first is the actual amount you owe on each bill or credit line. Obviously, keep this number at zero or as close to zero as possible. The second is the amount of your credit limit that you have used, which should always be below 50%. For example, if you have a $1,000 credit limit on your VISA credit card then you should never charge more than $500 (and even less if possible) to keep this portion of your credit score in good standing.

CREDIT HISTORY (15%) – This portion asks the question of how long you have had each account. If you don’t have a credit history, start one today. Most people will end up having many “credit histories”, as each credit card, cable bill, mortgage payment, etc. counts toward your history. Maintain each history over time and you will see a boost to your overall credit score.

TYPES OF CREDIT (10%) – Do you have a mortgage? Do you have a credit card? Do you have a business line of credit? The total amount of outstanding credit you have relative to your ability to pay off those balances has an impact on your credit score. Generally, you will do well in this category as long as you keep current on all your monthly payments. A mortgage with 10 years of on-time payments will boost your credit score.

NEW CREDIT (10%) – New Credit is defined as when someone, such as a car dealer or banker, checks your credit score with one of the three companies (Equifax.com, TransUnion.com, Experian.com), even if you do not actually receive new credit from them. Someone checking your credit has a relatively low impact on your credit score, but it is best to keep the checking of the score to a minimum.

Regardless of whether or not you’re currently looking into purchasing a home, it is important to take the necessary steps today to develop your credit score. It will pay huge dividends in the future. If you are currently interested in purchasing or selling property in the Santa Barbara area, the ZiaGroup can provide you with local knowledge and excellent service. Contact Daniel by phone (805-679-7593) or email (Daniel@ZiaGroup.com) and allow the ZiaGroup to assist you with your search today.

Searching for Rental Property? 3 Important Things to Consider

The current real estate climate in Santa Barbara is providing an opportunity for would-be investors of residential income-producing property. Non-owner occupied rates have remained low and there exists a decent number of local REOs that pencil out when placing 20%-30% down. Here are three important things to consider if you’re in the market for a rental property.

1. Property Taxes – Many first time rental property investors fail to factor in a quality property tax assumption into the monthly cash flow. A safe property tax assumption is 1.125%, but you should always check to see the actual property tax assessment before purchasing a rental property. On a $500,00.00 property using this assumption, your total annual bill will be $6,250, or about $520 per month.

2. Local Rental Rates – Rent for a 2 bed, 1 bath apartment can vary drastically from one neighborhood to the next, and Santa Barbara is no exception. Make sure to research the rates in the immediate area surrounding your rental property and check out websites that pool rental data, such as www.rentometer.com. Consider what the rental rates will be in 5-10 years, as well, and be conservative in your assumptions.

3. Jobs and Schools – Your future tenants need to work and they will likely, at some point, have children. Research the local job market relative to other cities. Look into California labor reports, released monthly, at http://www.labormarketinfo.edd.ca.gov. Also check the school district in which your rental property is zoned. A school district with an excellent reputation will add additional value to your property.

The ZiaGroup is ready to assist you in your search for a rental property in the Santa Barbara area. We can provide you in-depth local knowledge of properties coming to market before they arrive on the MLS. Visit our comprehensive website on Santa Barbara real estate and contact Daniel by phone (805-637-7148) or email (Daniel@ZiaGroup.com).

Real Estate Market update

Good news on the Real Estate market front--New Construction home sales last month were the highest they have been in 8 years. On a local level, there are some strong signs as well as a good amount of general consensus that February was the "bottom" of the market. We continue to see multiple offers on properties all the way up to $1.5 million and decent activity in the mid range and luxury market

Still seeing good activity

We're still seeing good market activity here in Santa Barbara, especially in the REO and foreclosure segments of the market. There has been limited inventory in the $300-600k price range where so many first time home buyers are hoping to purchase this year to capitalize on the different tax credits offered in 2009.

For those of you who haven't heard, there is a $8000 Federal Tax credit (different than a deduction in that if you don't need all $8000, they send you a check for the remainder) for first time home buyers. In addition, there is a less talked about, but equally exciting $10,000 California Tax credit for any home buyer purchasing new construction, with the credit being divided equally over a three year period. Those two tax credits can be combined for a total of $18,000 for buying a home this year. That's a huge incentive for many buyers to take advantage of the bottom of the barrel prices, combined with incredibly low interest rates. It truly appears to be the "perfect storm" for qualified buyers that can afford to get into the market this year. There are some nice options, like the Willow Creek complex in Old Town Goleta, that offer beautiful new construction for the $450-575k range that would allow a local buyer to enjoy both of these tax credits, plus some pretty incredible buyer incentives from the Developers themselves. If you haven't seen this complex, they are gorgeous 2 and 3 story Craftsman style condos ranging from 2-3 bedrooms and 900-1400 SF. There is nothing like them in this price range and I haven't had a single client not fall in fall with the units.

The Luxury market is a bit slow right now, especially the mid-luxury market of $5-7million, where there hasn't been a single closed sale since the first of the year. There have been some larger estate sales above that price range and some decent activity in the $2-4 million range, but over-all, the buyers in this luxury market are looking, but still waiting on the side-lines to see what will happen to home prices as well as their portfolios.

Are sellers negotiating in the $250-650k price range?

I had a client ask me this today, and I figured I'd share the response with my other clients and viewers:

"As far as prices are considered and flexibility through negotiation, the price range you are looking in is by far where we have been and are still seeing the most activity. Low inventory levels and high buyer demand for that price range are making negotiation options limited. Sample scenario: 3/2 tract home in Goleta, REO for $500-550k, probably a 75% chance it will sell within 72 hours with multiple offers and at least asking price, if not more. Best case scenario if you want movement on the price through negotiation is to find a property that has been on the market for a while (like Juana Maria) and then negotiation can really come into play. For the few REO's that stay on the market longer that 2-3 weeks, the banks will move some on their prices, but best case scenario is often to negotiate less aggressively (ask for less of a discount) and they are more likely to just accept offer, rather than counter back and forth. With traditional sellers I am a strong advocate of firmer negotiation and countering back and forth to really get the best deal, that strategy just doesn't seem to work as well with the REO's. They want good clean offers, strong financial qualifications, buyers who will take property "As-is" and not ask for repairs, and shorter escrows. We can talk more about this if we find you a property you'd like to move forward on. Each negotiation is case specific so I can only give you general answers at this point.

If any of you want to discuss this further, feel free to give me a call at 805-637-7148.

November CORT market data for Santa Barbara county

Market Statistics and Data courtesy of the CORT report put out by Equity Title of Santa Barbara/Montecito

CORT%20Sales%20Summary%20November/Sales%20Summary%20-%20November%202008.pdf


CORT%20Sales%20By%20Area%20--November/Sales%20By%20Area%20-%20November%202008.pdf

Market Update December 2008

While pending sales were much slower in October (compared to 2007), November was a stronger month with 53 homes going into escrow, which should result in a very similar # of closed sales as December 2007. Oddly enough, the average sales price in November (for the homes that closed escrow) was $1,200,000 which is significantly higher than most of the last 12 months. That most likely resulted from a shortage of inventory in the lower price levels where much of the buyer activity is. I think many buyers took big hits in the early Fall with the stock market, but now have recovered from the loss (or at least come to grips with it) and are stepping back into the market to take advantage of the extremely low interest rates (near historic lows!). The average days on market time for properties that are currently in escrow is around 90 days and for those that closed escrow was closer to 60 days.

All-in-all, what we're seeing is it comes down to price. The sellers who are being realistic and are pricing their homes correctly are selling their homes relatively quickly to great buyers. The buyers left, because of the tightened lending requirements, are more serious and better qualified that buyers in the past, so you also have to deal with less showings while still reaching those "strong buyers" that are most likely to pull the trigger. That said, buyers are still being cautious as we don't know if we have "reached the bottom of the market" or are still declining. Buyers are looking for strong values and are shopping hard to find the right property. The market has a whole is down about 11% as far as Number of properties sold and about 15% (w/o Montecito/Hope Ranch) as far as Median and average sales prices. That doesn't mean prices have softened 15% in the last year (though they probably have softened 10% or so), but more that the market activity is occurring more on the lower end of the market which is pulling those numbers down.

If you want to see more specific numbers and data on what the market is doing, give me a call at 805-637-7148 or email me at Daniel@ZiaGroup.com

Market Activity in Forte Ranch, off of Turnpike

I was asked this morning what current homes were selling for in Forte Ranch, a condo complex off of Turnpike (North Santa Barbara/Goleta) where there are newer (early 2000's) condos with up to 3500 SF for $499k-$1.2m.

In the last 12 months, 8 homes in Forte ranch have sold, all 3-4 bedrooms with sale prices ranging from $720k to $1,218,000. There is one home, a 3 bedroom 3450 SF unit on Greenway Rd that is currently in escrow (last listing price was $1,139,000. There are also two active units for sale a 2/1 on Granada for $499k and a 3/2, 1600 SF on Gate Way for $779k. If you have any additional questions about the development, the market in general, or any other specific questions, please do not hesitate to contact me directly: Daniel@ZiaGroup.com or on my cell phone (805) 637-7148. I would be happy to assist you in your home search, and there are several of my services that you mind find helpful.



http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=m6qp4nj6rb8&s=1&id=1&cid=1

Santa Barbara & Montecito Tea Fire-- Will it affect Real Estate Values?

The morning after the Montecito and Santa Barbara Tea fire started (11/13/08 at roughly 5:30PM), I received a call from a potential home buyer wanting to know what affect, if any, the fire would have on home values in the surrounding area. This is a great question, considering our current economic climate, and some of the major wildfires Southern California has experienced in the last few years. Just earlier this year, the Santa Barbara/Goleta area experienced the GAP fire, which forced many residents to evacuate, but thankfully virtually 0 homes were destroyed. The recent Tea Fire was a different story as it burned nearly 2000 acres and the last count was 210 homes, many of them high end luxury-estates in Montecito, the Riviera, and the surrounding foothills.

The real estate market is intimately tied to basic forces of economics, namely supply and demand. The destruction of 210 high-end homes (the majority of the homes destroyed were valued at $2 Million+) in a relatively small community may have a slight impact on supply as one could assume that at least a handful of these homes would probably have come on the market in the next 12 months. I haven't heard if any of these homes were actually actively being listed o the market, though I know several realtors lost their homes. So the big question is will this affect demand for these types of higher end homes? Will the displaced residents choose to locate rentals for the next 2-3 years while they go through the planning, permitting and building process on their existing lot, or will they pick over the current inventory and purchase a home, with plans to sell their destroyed homes as vacant lots. Home builders and contractors in the area will obviously have quite a bit of work in the coming years, and the influx of new potential vacant land (which there is a severe shortage of) is not good news for speculators that had been holding on to their vacant land hoping to see appreciation the next few years. I would expect vacant land prices to take a serious hit, which creates a lucrative opportunity for developers to purchase prime lots for custom or spec home developments. Keep in mind, that we are not being insensitive talking about these opportunities, as the displaced homeowners will receive settlements from the various insurance companies. Also, this potential influx in buyer demand from developers and investors is a necessary boost to potentially mitigate any immediate concern of future wildfires, and the fear that comes along with that.

The community in the Santa Barbara and Montecito area have been extremely supportive over the last week and a half. Many real estate professionals are working to assist displaced residents in finding short and long term rental options, including free moving trucks, free storage at various facilities, and even free or discounted rents for a set period of time. Many owners who have been trying to sell their home vacant are offering these listings to the residents as well for temporary housing. So going back to what will displaced residents do--rent or buy, my take is that many residents will opt for furnished rentals, to wait for insurance settlements before making the decision to rebuild or purchase elsewhere. Will we have some residents move out of the area, probably, as the idea of going through the rebuilding process or moving from a home they have have had for years may simply be too daunting. That said, I think we will have an influx of developers, buyers who want to build custom homes, and other savvy buyers looking for great deals, that will balance any increase in supply.

My recommendation to buyers is to buy sooner rather than later, while the fear and the doubt linger in the air affecting sellers perceptions. I predict an increase in demand in a few months as these homes owners come back into the market and possibly more inventory comes on in the Spring and Summer months. That influx in demand may inflate prices, or at the vary least, eliminate some of the prime opportunities for negotiation and serious discounts on current inventory, especially vacant land.

Feel free to contact me (805) 637-7148 if you would like to discuss this more, or be kept up to date on some of the motivated sellers that are willing to sell at a discount.

Santa Barbara Market--Best time to buy?

Here is a quick market update:

Santa Barbara real estate is not like the other markets in California. We aren't seeing prices softening any more, but holding stable at a nice low bottom end. We are seeing quite a few multiple offer scenarios, both REO and non REO, more so than any other part of California that I know. All signs put to the next 6-12 month window as the best time to buy. If prices to continue to soften, it won't be more that 5-7% scenario best (or worst depending on how you look at it) case scenario. If interest rates go up, that will more than offset any potential advantage of waiting.