Author Archives: Bettsy Tyler
March Real Estate Update
Reposted from MLS Listings data information
Realtor of the Year awarded to Bettsy Tyler of Monterey Bay Properties
After receiving the REALTOR of the Year Award, I was interviewed, so thought I’d post the interview here. I’ve edited it a little just to make it a shorter read.
Winners of this award typically are being recognized for service to the real estate industry and the Association of San![IMG_1360[1]](https://bettsytyler.wordpress.com/wp-content/uploads/2013/03/img_13601.jpg)
ta Cruz County Realtors, what work are you being recognized for?
I have worked on the Santa Cruz County Pro Series of education classes for REALTORS® for the past 4 years now. When I took over as chair of the education committee my goal was to offer unique classes for our members that would help them improve their knowledge of the area.
Why did you feel that was needed?
I felt REALTORS needed a unique education program geared to fostering their development as consultants and resources in the community. There are so many micro-climates and micro-cultures to this county, it is very diverse, so a good foundation is important for a REALTOR to have in order to better serve and advise their clients. This kind of deep study empowers you to have a better understanding of the community and area you are helping people to buy and sell homes in and a holistic understanding of the community is a valuable asset as a REALTOR®.
How did you determine the areas of focus?
As a committee we came up with a number of areas that we felt needed more education and insight; Santa Cruz County history, geology and biology of the different areas, the school specifics, coastal issues, affordable housing, water resources and land use.
How did you go about developing and implementing this curriculum?
We reached out to a number of people in the community such as historians, scientists, land use planners, water districts, attorneys, and County employees. The great thing was that as we reached out to these people we found that they were just as excited to participate as we were to have them present to our group.
Charlene Atack of Atack and Penrose http://www.linkedin.com/pub/charlene-atack/31/16/7a1 and Diedre Hamilton, Gary Griggs, professor of Earth Science at UCSC, Chris Gordon of Geodisclosure http://geodisclosure.com/ and so many more. The information and cooperation provided by all these great people has been tremendous.
What were some of your favorite courses?
We kicked off with a history of the community course lead by Judy Steen http://www.santacruzmah.org/2011/the-sidewalk-companion-to-santa-cruz-architecture/ Traci Bliss of MAH http://www.santacruzmah.org/learning/history-publications/ , and Carolyn Swift http://www.capitolamuseum.org/
One thing that I personally found interesting about their talk was that many of the early real estate developers were women.
We have learned way more about the community than I had anticipated and it has also introduced me to worlds I had no connection to prior to taking on this endeavor.
Congratulations again on your award and thank you for your service.
Thanks, this has been a unique opportunity, and receiving the award was just icing on the very delicious cake!
Here are some great testimonials on your courses:
“I was very skeptical when I first heard about the SCC pro series and the idea of becoming a Santa Cruz Specialist. I have lived in Santa Cruz County for 46 years and I thought that alone gave me extensive knowledge of the area. After completing the series of classes I can honestly say I was totally impressed. The professionalism of the speakers and the variety of subject matter was a surprise and a delight to me. In addition, I can’t believe how much I learned in each class. I highly recommend this class to anyone interested in how our County works.”
-Lauren Spencer
“I am so grateful to the team that put this series together – I found it incredibly interesting and informative. The topics & format were well thought out and top notch people were brought in to cover those topics. I am glad I chose to make it a priority in 2012 and I strongly recommend the series to any Realtor interested in gaining better insight into Santa Cruz County. “
-Leilani Williams
“I learned a lot about our County and some of it was completely new in spite of having lived in Santa Cruz County for many years. The speakers provided valuable information and the resources they shared have already benefited me and my clients. I think this class is a must for every agent doing business in Santa Cruz County.”
-Cassie Maas
“This unique series of classes featured several expert presenters for each topic. Their materials were interesting, educational and valuable. There simply is no more relevant series for REALTOR®s who work in Santa Cruz County.“
-M.C. Dwyer
Lack of Inventory in Santa Cruz County Real Estate?
The buzz lately has been all about the lack of inventory – that is, there just isn’t much for sale out there! You can see from the chart below that the number of homes for sale (the red columns) was considerably more in 2011 than it was in 2012. The lack of inventory has created a market condition of just a little bit of a frenzy. Listings with low to moderate price ranges, and well priced for the condition and location of the home, are bringing in multiple offers within days of listing. Multiple offers will generally drive the price up. Supply and demand; the age old economic factor that drives prices! Consequently, the median price of the Santa Cruz area has been creeping upward.
There is one little sign, however, that may mean 2013 is going to be different. Notice the red column above Jan 2013. That little number, 641, is higher than any month in the summer of 2012. Wait, January is traditionally a low inventory month – so what gives? Could this be a sign that 2013 is going to run a little differently than 2012? Hmmmmm. 
If you have any questions about the market or know anyone who’d like to receive my free market updates, please let me know.
Buyers’ Checklist: Steps to follow to better your purchase decision
You are ready to make the largest financial decision of your life by buying a home or rental property. But, you are concerned because of all the issues that people who bought in recent years have encountered. Perhaps properties are underwater, or the rental income doesn’t cover all the expenses, or mortgage payments have become unaffordable.
You are not alone if you have some of these reservations about buying a home. While those issues are just a few of the inherent risks that are present when buying real estate, there are many more. Although these issues have been around forever, only recently have typical buyers been getting better about doing their due diligence and taking the time, energy and effort to work hard to significantly lower their risk on real estate.
The process is not overly complicated, but, it is time-consuming. We’ve put together a list of categories that should be on your due diligence list. You should learn these items, tasks, procedures and how to analyze property so you can make great choices.
Here’s how to lessen the chances of something going wrong with your purchase:
1. Understand the Purchasing Process
Buyers should have a full understanding of the purchasing process from the start. Early on review the contract you will be signing, understand how to shop for the right property and know about making an offer, contingencies, appraisals, mortgage financing, and when your earnest money deposit becomes “at risk.”
2. Does This Make Financial Sense?
• Buying Investment Property – Start by penciling out the deal. You should determine the total cash you will invest and what “cash on cash” rate of return you project to earn. Bank CDs pay 1.0 percent, Bonds 5.0 percent, but real estate is riskier – so what should you earn? Five percent is suggested. Value appreciation may come down the road and certainly will help, but let’s count our cash first!
Personal Residence Rent vs. Own – There are some simple guidelines to follow here. If you plan to own for less than five years, you should remain a renter. You are not throwing away money renting and you avoid a lot of stress. Buying for the long term is your best move. And, don’t buy just to buy something – buy the property you “love” and that will make you happy.
3. Shop Smart
Hoping to snag a once-in-a-lifetime deal on a foreclosure or short sale? If you’re trying to chase some “great” deal like at the courthouse auction, or through a distress sale, it only wastes your time and energy with little chance at success. Be prepared. These options are complex and can often fall through the cracks. Skip the get-rich-quick schemes. A more conservative approach is to shop for a traditional sale on listing websites.
4. Real Estate and Income Taxes
Buying to save money on your taxes? Most couples buying residences under $300,000 get little in net tax savings. People with higher incomes and more expensive homes get the biggest tax benefit. Surprised? Meet with your CPA to determine what, if any, tax benefits you will earn.
5. Mortgage Financing – Getting a Fair Deal
If you can get financing, it has become easier to get a “fair deal” because of new federal regulations. Regardless, you should understand your Good Faith Estimate (GFE) and how to dissect it to make sure you get that fair deal. Mortgages are for the long term, so take some time to interview a couple of lenders and understand your mortgage so you can make a good decision.
6. Homeowners Association (HOA) Condition
This is one of those items that most buyers do not even know to review. The finances and operations of an HOA are becoming a huge risk issue nowadays. If you do not understand and review them, you may get a surprise in the form of sharply higher fees or special assessments in the years to come. Meet with a knowledgeable person to help you decipher them. The goal is to avoid a community where the association is in really bad shape.
7. Home Inspection/Fix Up Costs
Having a home inspection is one of the most important things you can do as a buyer. During the inspection you should be putting together a list of what needs to be repaired and replaced. Then you can take your list to a home improvement store to get a feel for the total costs to bring the property up to the standards you desire. This should help you negotiate any seller’s credits and/or terminate the deal if the costs are too much.
8. Property and Liability Insurance
Insurance policies cover certain risks and have a maximum payout on any loss related to those risks. It is up to you to determine the maximum policy amount you want based on construction quality, cost to rebuild and your risk tolerance. The top issue – failing to increase coverage amounts over time as the cost of rebuilding increases. It is not difficult to understand and have the right coverage – we suggest getting with your agent and have a once a year checkup!
9. Title Insurance, Title Issues, and Lot Lines
This is another purchasing task that few people review. And while the risk of an issue is very low, the potential losses are huge. Taking fifteen minutes to review your title abstract/history and the plat or a survey of the parcel, then walk the property. It could save you endless headaches and financial stress down the road.
10. Other Investments
Fixer uppers, flipping, vacation rentals, second homes, apartment buildings, condo hotels, land or building a home also have significant risk issues that should be evaluated carefully, before you make the decision to take on one of these investments.
Buyer Beware!
By taking the time to learn the risk issues and do the proper due diligence before you buy, you can significantly reduce your risk of something going wrong. And while it’s hard work, it is much easier than straightening out a “predicament” after you close escrow.
Leonard Baron, MBA, CPA, is a San Diego State University Lecturer
History of Interest Rates
The Change in the Santa Cruz Area Housing Market
The Santa Cruz area housing market has been humming along all Summer—we actually saw the blossoming of the market in the Spring, but things really picked up in June and July. Multiple offers on the few homes available, and buyers who recognize the opportunity the low interest rates offer to increase their buying power, were the notes that made up the catchy tune! Home hunters who have been waiting, are making their moves to buy their first homes, their move up homes and their investment homes.
It’s good to see the Santa Cruz county real estate market come alive again. The activity has resulted in an increase to the median home price. A boost from $490,000 of last year to $545,000 now. That’s year over year—so I’m thinking it’s not seasonal, though it could be short lived.
Other areas of the country are seeing a similar effect. Los Angeles area, San Francisco, San Jose have all been experiencing a busy, active market. Even international buyers are looking to the US to take advantage of the “discount homes”. Florida, Nevada and Arizona have been the targets for international buyers, primarily from Canada and the UK, taking advantage of the lower home prices. These are being purchased as investment properties and second homes, As noted by the California Association of REALTORS.
People who have held their properties off the market due to the economy and without a great need to sell, are gradually coming back to the idea of selling. As the market sees sparks of activity, and life continues to happen; families grow, empty nesters downsize from their larger family homes, and whatever events may change the lives around us, so do the housing needs. With a more stable or balanced market, people find it making more sense to move rather than stay in a house that doesn’t suit their needs.
Eventually the “regular sales” will out number the short sales and foreclosures that have dominated the market the last couple of years. This trend may give way to a “normal” market. One that doesn’t have the unknowns of the bank foreclosure properties, or the long and lengthy process that short sales require.
As the world turns, so does the housing market. I believe the turn is towards the days when one person wants to sell their house and one person finds the home of their dreams and wants to buy it. At least here’s hoping!
Some Cities Are Hiring – most are not in California
American mayors are worried that the gridlock in Washington will bring Main Street to a screeching halt.
At their annual meeting this year, the U.S. Conference of Mayors is calling on Congress to keep federal dollars flowing to cities for transportation projects, port infrastructure, technology and workforce training.
Phoenix Mayor Greg Stanton is also worried that if lawmakers don’t agree on a debt reduction package this year then automatic cuts would kick in that would slash 350,000 defense jobs.
The annual conference of nearly 200 mayors is in Orlando, Fla., which Kiplinger recently named one of eight high job growth cities.
Phoenix, Ariz. is also on the list. That city was ground zero for the housing crisis, and just two years ago it had an unemployment rate of 12.2 percent. Now unemployment is down to 6.6 percent and job growth is pegged at 8 to 10 percent.
The magazine zeroed in on cities with more than one million people, with expected job growth over five years higher than the national average of 7 percent.
“Some of these cities had roots in large universities, elite research institutions, others had ties to the energy industry,” John Maggs, senior economics editor at Kiplinger told Here & Now‘s Robin Young. “That’s a theme that comes out on this list. Energy will play an important part in job creation, at least in the next five years.”
Kiplinger’s list:
- Phoenix – Inexpensive real estate and distribution of lower-end electronic offering 100,000 to 150,000 jobs within this area
- Oklahoma City – Home to large gas firms and energy services where 10 to 12 percent of job growth within the next five years is anticipated
- Raleigh – Offers a variety of jobs within the health finances, bio-tech, and government industry
- San Antonio – Is the center of Texas’ energy sector which provides inexpensive housing and an abundant amount of commercial space
- Orlando – Health care is rapidly growing, creating an array of professional, transportation, sales and personal service jobs
- Portland – Fueled by the tech mini-boom and the area’s attractiveness to young people this location has the ability to supply 130,000 jobs
- Nashville – Job growth within the next five years is expected to rise 18 percent due to the variety of heath care, education and service jobs available
- Atlanta – Provides size and diversity while 180,00 new jobs are accessible
Navigating the Housing Market – Must Know Tips
A good article re-printed from RIS MEdia.
“Studies on homeownership prove that it enhances our lives in many ways, and among them is how we plant deeper stakes within the communities we call home,” notes John L. Heithaus, CMO of MRIS. “Since navigating the housing market has become more complex than ever – any potential homebuyer, whether a first time buyer or not, can benefit from solid professional advice in their pursuit of homeownership.”
To that end, MRIS has compiled the following list of “must read” tips from among its 45,000+ network of real estate professionals, reinforcing some of the best practices for ensuring that potential homebuyers are home-ready.
• Understand and update your FICO credit score. This single number plays a major role in determining the interest rate on your mortgage, so it’s vital to know what your FICO score is, address any discrepancies and take corrective action to improve your score if it’s below par. As of May 2012, 664 was listed as the national average, and the median was listed as 723. According to Heithaus, individuals with scores of at least 700 tend to get the best rates on a mortgage. Each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – are required to provide you with a free copy of your credit report, at your request, once per year. To order, visit www.annualcreditreport.com [2].
• Know what you can afford. Up to 12 months in advance of your desired home purchase, establish a relationship with a trusted mortgage lender who can help you identify your monthly payment goals, target purchase price and the types of loans you are qualified for based on your current financial situation.
• Boost your savings. After you have determined your monthly payment goals and target purchase price, make sure you have the cash on hand for when you are ready to buy. We suggest saving enough money for six months of mortgage payments, as well as a minimum of 3.5 percent of the purchase price to cover the down payment and closing costs. First-time and repeat homebuyers should also establish reserves for less visible expenses, such as closing costs, moving costs, home repairs, renovations and planned upgrades when saving for a home.
• Avoid making major purchases. When preparing to buy a home, it’s important to stay away from big-ticket items, such as purchasing a car, in order to keep your cash reserves high and show the lender that you’ll be able to service the mortgage debt more easily.
• Understand the micro-local real estate market. Homebuyers can save themselves money by watching the seasonal trends in their targeted area(s) and being financially prepared to make an offer when the time is right.
• Consult a real estate professional. Long before you are ready to buy, seek out and interview up to three real estate professionals who can prepare you to face the market by addressing questions, setting realistic expectations and providing valuable insight and expertise to the complex process of home purchasing. Heithaus advises that “This is no time to ‘go it alone,’ and an expert real estate professional can help navigate you through a successful purchase.
Santa Cruz Real Estate Market heading in Seller’s Favor?
When you have too much money chasing too few properties, what do you get? The Santa Cruz County real estate market. Due to a confluence of events, and perceptions, the real estate market in Santa Cruz County is heading in favor of sellers.
Cash heavy investors are dominating the low-end of the market, while at the high-end, Silicon Valley IPO gains are making buyers feel flush again.
However, inventory levels are low creating a crush of buyers for the few well-priced and well-located homes on the market.
Inventory is low for two reasons. First, too may homeowners are underwater and are unable to sell without a hit and second, many homeowners are still waiting for prices to go back to “where they used to be”.
With inventory at 33% of its peak in September 2007, multiple offers are once again the norm. This is especially true in the best neighborhoods, i.e. those with the best school districts, best weather, best perceived value to the particular buyers.
When we say multiple offers, we’re not talking 3, 5, or 7 offers. No, we’re talking 10, 20 and 30 offers – at least one had 30!
Potential sellers, it’s time to re-think your strategy.
Please feel free to contact me and we can go into specifics.
Realing in on Real Estate in Santa Cruz, CA as observed by Bettsy Tyler 