Daniel Zia Voted #1 Realtor in Santa Barbara Independent's Best of 2009 Readers' Poll

The ZiaGroup would like to thank all of our clients who have voted Daniel Zia as the #1 Realtor in the Santa Barbara Independent’s BEST OF 2009 Readers’ Poll (Readership: 120,000). As a team, we are honored to have been voted #1 and appreciate your outpouring of support. You have validated the service and market knowledge we strive to provide to our Buyers and Sellers.

If you are just visiting our blog for the first time, make sure to visit our comprehensive Santa Barbara Real Estate website where you can Meet our Team, Search the MLS, see how we Spend Our Commissions, get updates on REOs and Foreclosures, and more. We appreciate the opportunity to serve you and your real estate needs, and our website is our first step in serving you.

We like to keep our blog updated with a mix of new Santa Barbara properties for sale, as well as tips and recommendations for all Buyers and Sellers of real estate. Click on the link at the top of our page to follow our Blog or contact me direct by email (Daniel@ZiaGroup.com) or by phone (805-637-7148) and stay up-to-date with Santa Barbara real estate.

Notes from the Santa Barbara Real Estate and Economic Forecast

This is a summary of the 2009 Santa Barbara Real Estate and Economic Forecast based on the notes of my good friend Mike Neville. Mike works for a great company called Formation Solutions, which provides personalized, local business entity resources. From LLC's and Corporations to Non Profits, he knows each formation has specific needs and is able to tailor those needs to fit your business. The focus of this year’s Forecast was regarding what to expect economically in the coming year(s) and to discuss if the recession is over.

The Forecast stated that the recession is over, as the stock market is up over 50% since March 2009. In real estate, housing prices seemed to have bottomed in March of 2009. The summer of 2008 saw a peak in Santa Barbara foreclosures and, overall, interest rates have leveled out for real estate purchases. Unfortunately, the Tri-Counties lost 6,700 jobs; a number much greater than initially expected. The Forecast finds that unemployment will continue to rise up to a state-wide rate of 12-13% by the end of 2009 or the beginning of 2010. Historically, unemployment is one of the last things to flatten.

In the international markets, the Dollar is very weak and gold is constantly reaching new highs. The Forecast predicted that home foreclosures would rise again over the summer of 2009, which they did, but they are expected to decline into 2010. Banks and lending is still very tight throughout the financial world with a highest number of commercial vacancies since 1984. To add to tensions, the War in Iraq and Afghanistan are making daily headlines, as is the current U.S. Administration.

The Forecast expects a V-shaped recover in housing during the second half of the year with labor markets beginning to rebound by mid-2010. During this time, banks and lenders will begin to loosen their actions as signs point in a positive direction and start-up businesses begin hiring out of the large labor pool.

Credits: Dr. Mark Schniepp, The California Economic Forecast; Steve Golis, Paul Gamberdella Radius Group Commercial Real Estate & Investments, James Goldberg, Presenters.

Thank you for visiting the Santa Barbara Real Estate blog. Contact Daniel Zia by phone (805.637.7148) or by email (Daniel@ZiaGroup.com) for all of your Santa Barbara real estate needs. The ZiaGroup website is a great resource for 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

Using Google Street View in your Home Search

Did you know that Google Maps has the ability to provide you with street-level views of a home? Many of my clients use this easy-to-use tool to see what the surrounding homes look like, as well as check out the general feel of the street and potential views. If you have never used Google Street View, it is easy to set up. Once you have the address of the home you’re interested in, complete the following steps:

1. Open http://www.google.com/maps
2. Type in the address
3. Select the correct location (Google Maps may return multiple results0
4. A white box should appear and you should select “street view” or click the image
5. Use your cursor and drag to the left, right, up and down
6. If you want to move up and down the street, click on the small white arrows along the street

You are now on your way to becoming a Google Street View expert. It’s easy and always interesting to explore new areas in town. If you’re interested in a more detailed search with selective criteria, contact me or visit the ZiaGroup website. We have an excellent (and free) Santa Barbara MLS feature that could be valuable to your search. Thanks for visiting our blog.

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
Fax: 805.563.0053
3868 State St.
Santa Barbara, CA 93105

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

SOLD - 3800 SF House

The ZiaGroup team located this home for an out of state client close to Butterfly beach. This beautiful beach remodel was updated throughout with exceptional attention to detail including granite counter tops, custom cabinets, stainless steel appliances, a large pantry, wood plank floors throughout the downstairs, an outdoor living area with a patio, water/pond features, BBQ, a built-in spa and fireplace. It is truly a phenomenal property.

The property had an exceptional amount of interest from buyers and is an example of how much activity has picked up over the past three months. If you are currently searching for residential real estate in Santa Barbara, know that properties priced well are frequently selling for 5-20% above the asking price as seller’s are motivated and they know they will attract the attention with a “low” ask price. REO properties are priced well and are favoring cash buyers over buyers with higher bids that require financing. If you are interested in learning more about these opportunities in Santa Barbara real estate, contact me at 805-637-7148 or by email at Daniel@ZiaGroup.com. Our website (www.ziagroup.com) is an excellent resource to anyone researching a purchase or just interested searching the Santa Barbara MLS.


Daniel Zia, Broker-Associate & Realtor®
Prudential California Realty
Cell: 805.637.7148
Fax: 805.563.0053
3868 State St.
Santa Barbara, CA 93105
Lic. #01710544
-Leading Edge Society: Top 7% of Prudential Agents Nationwide

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

2 New SB REO's: 4/2 mesa House $646k, 4000+ SF House: $1.1m, & 2 houses/1 lot:$550k

I wanted to bring three Santa Barbara properties for sale to your immediate attention. Two of them are very well priced REO's and the third is a recently reduced property with two houses on one lot, close to downtown, for $550k.

1) REO 4/2 Mesa House on 1/5 of an acre for $645,480: This is an fantastic deal on the Mesa, a desirable neighborhood in Santa barbara running along the beach. The home is very close to popular Hendry's beach (also known as "dog beach"), Elings Park, and Douglas Preserve. The home needs upgrading, but with the number of bedrooms, and lot size, this could be a great project, main residence, or rental property for either the yearly or vacation rental (weekly) market. All offers will be reviewed on the 2nd, so you have a few days, but I'd recommend seeing this property today or tomorrow, as I will not be available Saturday or Sunday. I'd expect this to sell for $650-700k with multiple offers and may end up being the lowest priced 4 bedroom home sale on the Mesa this year. Here are the details: http://www.flexmls.com/link.html?otct64wep53,9,1

2) REO 4/4.5, 4000+ SF Contemporary home built in 2003 in Mission Canyon for $1,100,00: This is a great offering that I've watched for quite some time. It's a beautiful home located in the desirable Mission Canyon neighborhood, with great proximity to the historic Mission and rose gardens, as well as being only 1-2 miles from downtown. It should for $1.5 million a few years ago and has been on and off the market for a year or two now, with a last list price of $1,349,00. The property is now a bank-owned REO and the bank priced it to sell very quickly. I don't know of any other property in SB where you can find this size home, with the quality of construction and amenities, with nice views of the city and a peak of the ocean for $1.1million. Strong school district, very high ceilings, nice open spaces and a 1/5 of an acre lot (sloped). The buyer needs to be OK with stairs, but this would make a great primary residence, or vacation home. Here are the details: http://www.flexmls.com/link.html?otct36kdekt,9,1

3) Recently reduced 2 remodeled homes on 1 lot for $550k: This property has two small homes (a 2/1 and a 1/1) on a lot with convenient access to downtown. The property is located on the Westside and is close to both the train and the freeway. That said, it poses a great opportunity, for the price, for an investor wanting a strong rental property (estimates of $3300/mo in rent), a buyer wanting to live in one unit and rent out the other for additional income, or two separate buyers to co-invest and each have a small house. Here are the details: http://www.flexmls.com/link.html?otct667ae4e,9,1. If this property is intriguing, I also know of a duplex (two 1/1 units) even closer to downtown and farther from the tracks/freeway. Price is under $550k.

Please feel free to forward this post to anyone you know that may be interested in one of these properties (preferably people who don't have an agent yet). If you have any questions, or want to schedule an appointment to view any of the properties, please contact me ASAP. Have a good day.

Daniel Zia, Broker-Associate & Realtor®

Prudential California Realty

For comprehensive real estate information & to search the MLS, visit:

www.ZiaGroup.com

Or visit our blog at: http://www.theziagroup.com/santa-barbara-real-estate-news/

Cell: 805.637.7148

Fax: 805.563.0053

3868 State St.

Santa Barbara, CA 93105

Lic. #01710544

-Leading Edge Society: Top 7% of Prudential Agents Nationwide

3 Santa Barbara REO's: 3bed house ($492k), 2 bed condo ($399k), 2 bed condo ($413k)

Here are three REO's that are currently available and fantastic deals:

1) 3/2 House on a good size lot, just back on the market (went into escrow quickly) and reduced to $492K. The home is located between the State street and Turnpike exits and sits on a good size lot. The home needs a good cleaning and some repair/upgrades, but it also has had a decent amount of work already done. The home has pergo wood floors, recessed lighting, dual-paned windows and doors, a paver backyard, and a gated entrance. The 2-car attached garage has been partially converted to a 4th bonus room/office (not sure if it is legally permitted) as well. Lots of potential as a rental or nice entry level home as there are very few options like this in this price range.

2) 2/1 Downtown Townhome, just back on the market last night (went into escrow on the 1st day) for $399k: Great condo offering that received immediate and overwhelming interest as soon as it was brought on the market. An over full-priced offer was received the day it came on the market and immediately went into escrow (much to the disappointment of
several agents and their buyers). The property is back on the market and available at $399k with nothing else like it currently on the market. Over 1000 SF of living space, great proximity downtown, incredibly high ceilings, an in-unit laundry room, and an attached 2-car garage. Previous buyers paid for all inspections, making your due diligence even easier (and free!). Home inspection, pest inspection, NHD are all available under the "documents" tab. In addition, there is an appraisal (came in at $400k) available as well. If you may have an interested
buyer, I'd recommend bringing in an offer ASAP.

3) 2-bedroom Mesa Condo (near beach) just came back on the market for $412,900: Remodeled 2-bedroom unit on the Mesa near Shoreline park and Leadbetter beach, as well as great access to Santa Barbara City College and downtown. This complex provides great upside potential as it is currently (or soon will be) going through a multi-million dollar exterior and amenity rehab project. Possibility to buy now and resell in a few years after the work is done for some great upside.

Don't get the wrong impression as these are some of the ONLY REO's I've seen actually fall out of escrow. Typically they have a much lower fall-through rate than other types of properties (short sales & traditional sellers).

Here is the full listing details for all three properties including pictures, reports and map locations: http://www.flexmls.com/link.html?otc3ivujqfg,9,1 If you have any questions, or want to schedule an appointment to view any of the properties, please contact me ASAP. Have a good afternoon.

Daniel Zia, Broker-Associate & Realtor®

Prudential California Realty

For comprehensive real estate information and to search the MLS, visit:

www.ZiaGroup.com

3868 State St.

Santa Barbara, CA 93105

Cell: 805.637.7148

Fax: 805.563.0053

Best deals in the $425k-$550k range

There are a few units left in the Willow Creek Complex. $425k will get you a brand new 900 SF BEAUTIFUL town home w/ 1 car garage, or $535k will get you 3/2.5, 2 or 3-story Brand new Town home w/ 1400 SF and a 2-car garage. Some of the best values on the market with a motivated developer, possible seller financing for a 2nd loan, and best yet, they quality for both tax credits for a total of $18k!

Estimated Monthly payments would be:
2 bed: 5% down--> $2700 (including taxes!) or
20% down--> $2300/mo (including taxes).

3-bed: 5% down --> $3400/mo (including taxes) or
20% down--> $2900/mo (including taxes).

Located 1.5 miles from UCSB and the beach and 6 minutes to Santa Barbara's State/La Cumbre up town area.

Call me for more information on this specific development as well as other great deals in this price range: 805-637-7148.

Click here for more information on Santa Barbara Real Estate

Calculating Property Taxes

I often get asked what property taxes for a given property...

A good rule of thumb to calculate property taxes in the Santa Barbara area is to take the sales price and multiple it by 1.125%. That will give you an estimate on your yearly property tax figure, then you can divide by 12 to see what that looks like per month. So factoring a $1 million sales price, your property taxes would be around $11,250 per year or $937.50/month if you wanted to look at how it will affect your monthly payments.

The property tax figure is not listed on a property sheet, because the sales price is as of yet, unknown. The current owner pays property taxes based on what he or she purchased it for, and if they have owned it a long time, they may be paying taxes based on a $200-300k purchase price instead of a $1 million purchase price.

Fed rate cut--How it will affect mortgage market

Here is an exert from a good article by Kathleen Pender at the Associate press: 9/18/07:

People with home equity lines of credit will benefit first. These variable-rate loans are typically tied to the prime rate, which closely follows the federal funds rate. The prime rate is 8.25 percent today. If the federal funds rate drops by a quarter point, the rate on home equity loans will likely follow suit in the next month or so, says Keith Gumbinger, a vice president with HSH Associates.

Borrowers who have an adjustable-rate mortgage tied to the one-year Treasury yield could also benefit from a rate cut, though not directly. Treasury yields fell this summer, partly in anticipation of a Fed rate cut. An actual rate cut will help keep those rates low and if the Fed indicates a willingness to cut rates more aggressively, they could fall further.

"In early July, a Treasury-based ARM was around 7.75 percent. Now it's around 6.75 percent," says Gumbinger.

If you took out a Treasury-based ARM that was fixed for three or five years and the rate is about to go up, you will still see a big payment jump. It just won't be as big as it could have been.

On the other hand, people with ARMs tied to the London Interbank Offered Rate might not get any relief from a Fed rate cut. While Treasury rates were going down, Libor was going up. Although they normally move in the same direction, corporate credit concerns have put upward pressure on Libor and downward pressure on Treasury yields. A Fed rate cut won't automatically lead to a lower Libor rate.

Likewise, fixed-rate loans won't necessarily get cheaper. Unlike ARMs, which are tied to short-term rates, fixed-rate loans follow long-term interest rates, such as the 10-year Treasury note yield.

Over the past two months, rates on conforming fixed-rate mortgages - which can be sold to Fannie Mae and Freddie Mac - have fallen along with the 10-year Treasury yield. But they won't necessarily fall more if the Fed cuts short-term rates, and they could conceivably go up if investors fear that one or more rate cuts could stoke inflation"