Tiffany Mueller

I am very familiar with the homes in the Woodbury community and I have definitely seen a decrease in prices there. As with many of the cities throughout Orange County, I think we are going to continue to see a drop in housing prices for about the next year or so.

It depends on your own particular circumstance, but many are finding it a great time to purchase so long as they negotiate a great price and find a lender that is able to give them a good loan for the long term.

Before any of my clients consider purchasing and/ or selling I typically sit down with them and discuss their options, their circumstances and motivation to purchase and/or sell, as well as where the market is projected to go. It is important to educate yourself as a consumer before buying or selling in this market, if you would like me to set you with a program that will enable you to watch where the housing prices are going in the Woodbury community over the next year or so, let me know and I would be happy to help you.

Tiffany Mueller - Mon Apr 21 2008, 15:56

Ray:

From my own personal experience with bank owned properties, something to keep in mind is that the bank as well as the agent, wants to get the home sold. With that said, the bank has a certain price point that they can typically not go below, or are not willing to go below. They are fully aware of the market, as well as the local pricing etc. and are not willing to let the home go for signficantly less than what it is worth. Also, as a general rule, banks usually want to get about 87-90% of either what the previous loan was from the owner that they foreclosed on, and/or what the current loan is on the property (i.e. in a short sale circumstance).

So for example if the current or previous loan was $600K - then 87% of that is $522K. Even if other homes in the area are going for close to that, say $540K - the bank more than likely will dig it's heals in at that 87%-90% price point. Also, the banks take into consideration all the closing costs and commissions when they come to their final price that they will take - so remember to keep that in mind.

My point behind all this, is that depending on what price you offered, the agent may have spoken verbally with the bank and then the bank may have said that they were not willing to counter offer or respond because it was too far off. If you want to make sure that the agent submitted your offer, I would just request that the bank respond either with a counteroffer or check the box and sign where it says offer rejected on the residential purchase agreement that you signed and submitted originally.

Hope this helps, please let me know if you have any further questions.

Tiffany - Mon Apr 21 2008, 15:41

Shirley,

Yorba Linda also has terrific market value. It is well known for its award winning schools. For the most part Yorba Linda is older than Anaheim Hills and Irvine, however there are a lot of new homes and nieghborhoods in Yorba Linda in the Black Gold Community as well as towards the east end of Yorba Linda.

Tiffany Mueller
Prudential California Realty, Anaheim Hills - Sat Feb 9 2008, 16:16

Also, just a few statistics:

Anaheim Hills' Average Sold Price in October of 2007 was $722K and in December of 2007 it was $628K, in Irvine of October 2007 the Average Sold Price was $775K and in December of 2007 it was $817K.

In Irvine, however, there are a little more than twice as many homes on the market than there is in Anaheim Hills. Also, these statistics are taking into consideration all homes/condos available, at all prices.

When you look at just condos/townhomes under the maximum price being $699,999, then in Anaheim Hills you have an Average Sales Price of $501K in October of 2007 and $453K in December of 2007. In Irvine the Average Sales Price in October of 2007 was $511K and $526K in December of 2007.

Hope this has helped.

Tiffany Mueller - Thu Feb 7 2008, 17:21

Anaheim Hills is a fantastic area. As far as market value, Anaheim Hills has wonderful schools and beautiful rolling hill sides for views, making it a very appealing place for people to live that are looking in Orange County area. Prices here have come down slightly, but not as much as other cities throughout Orange County. Irvine is also a great area, but as many have said below, you are probably going to pay a higher price, as well as mello roos to live there. However, I must tell you that there are several areas throughout Anaheim Hill as well that have mello roos, but as long as you are working with an agent that knows the area well, you can avoid those communities if you would rather avoid that additional cost.

Many of the people that tend to enjoy Anaheim Hills better than Irvine, enjoy it because it is more developed and has a nice blend of both old and new properties along with an overall well maintained city. Irvine tends to look a lot alike - and some people like that, it just depends on what you are looking for.

I myself live in the city of Irvine, but work in the city of Anaheim Hills! I have lived in both cities and like them equally as well. I would love to help you more with deciding which city might be better for you and your family - again it depends on a variety of different things that you are looking for as a buyer in your new home. If you would like to give me a call or email me to ask me any further questions just to pick my brain about the cities and the market, feel free to do so. You can also check out my website below for more information.

I hope this has helped!

Sincerely,

Tiffany Mueller
Prudential California Realty, Anaheim Hills - Thu Feb 7 2008, 16:29

I found it interesting and I felt most people would like to have a variety of different sources for their information in which they form their opinions by, not just the ones that agree with their current stand on things.

If you notice, I am also not specifying that this is just for buyers/sellers, this also is in reference to anyone that could be effected by the drop in interest rates - i.e. people with short terms loans etc. I felt it was good to remind people to look into the fact that the drop in rates may effect them positively, even if they own a home and are not buying/selling this could be something people need to hear about their current loans and potentially damaging situations they are in. Lastly, it is wise information about what you should be providing people with and how to be cautious about not damaging your credit in the process of trying to improve it. - Fri Feb 1 2008, 17:05

This is for the people who are wondering what the media is saying about the market and the drop in interest rates. Take a look at what was posted on MSNBC.com from THE TODAY SHOW.

I am not looking for a response to my note here, I am just putting this up for people to look at who like to have a variety of different things to reference when forming their thoughts and opinions on something as cyclical as real estate.

Check out this link to the TODAY SHOW on MSNBC.COM.

http://www.msnbc.msn.com/id/21134540/vp/22931159#22931159

Tiffany Mueller - Fri Feb 1 2008, 16:24

John:

I agree with Dot, and as I have said before, no one is saying that buying is the right decision for everyone right now. Each person has to take their own situations into consideration. If you reference a few of the first comments I made below, you will note that I have never said it is a hot market and that everyone should buy, I simply said we are here to help educate our clients beyond what they might already know, and then if it is their desire to buy, then I would love to help them.

In reference to what my clients have purchased and what the values are now etc. - I truly don't think it is necessary to go into that - nor is that everyones business, I am sure my clients wouldn't want me openly giving that to everyone! Sure some people I have helped over the last year or so, have lost some money, but some haven't - and for the most part, every one of them have said it doesn't matter where prices are going, they are happy with their decision and they know they will be there for a long time so it doesn't really matter to them (reference my below comments on this being a long term investment, not a short term investment).

I am currently helping several buyers look for homes/condos in this supposed "terrible" market. They have all decided that right now is the right time for them based on a variety of different things. Here in Orange County, for example, I am helping a buyer right now look at condos and she has found several that she liked, and unfortunately all were gone and in escrow within a few days. So - things are selling, at the right price, to the right buyers, who are buying because it is the right time for them. If you don't want to buy - don't buy, no one is telling you to do what you don't want to do. I am not suggesting you should buy no matter what your opinion, circumstance, or market condition.

I think I speak for all the agents when I say, this may not be a terrific market, but we are all here to help those that desire to purchase or sell something - because no matter what the market is like, there will always be people who need or desire to sell, and people who need or desire to buy. (By the way - there ARE buyers that NEED to buy, i.e. 1031 exchanges etc.)

I hope this is a sufficient response, I will be removing myself from this discussion going forward. I think no matter what anyone says - everyone is going to have an opinion, and at the end of the day - it really doesn't matter what I say, you will think what you think and that is OK. I have never told someone they are wrong - everyone has to come to their own conclusions.

I have had a great time reading everyone's response - I wish you all well! :) - Sun Jan 27 2008, 15:43

David:

I agree with you that the affordability in California is outrageous. Unfortunately, I would have to say that it probably will never be "affordable" in California for the rest of the time that any of us will be here. I think the biggest point I will re-iterate is that you are the only one that can truly know your finances and what you can afford, therefore you will know when the best time to buy is.

I think living in California, and purchasing in California will never really fit into the affordability statistics (even if that happened in the past...don't hold your breath for that in the future). If you are waiting for normality you are probably not going to get it here - at least not where you would want to live anyways.

Just another tip, zillow.com doesn't take into consideration everything that is active, sold, pending etc. that has ever been on the market. It doesn't have all of the same stats from the MLS, thus the numbers it spits out, are inaccurate. The reason being is because a listing doesn't go on zillow.com unless an agent puts it there - so if an agent doesn't know about it (which many don't), or they don't care to put their listing on it, then there is one of many stats left out of your equation.

Regardless of the median price point in any given city, there are several condos you can purchase right now that are in the $200K and high $100K's throughout orange and l.a. county believe it or not. They may not be in the greatest area, but let's be fair - those are within a lot of people's affordability ranges. I don't think I would say - hey that's a great area, you should buy that condo/townhome, but if you were my client and said, is there anything for $200K in La Habra, or Anaheim and I pulled up a condo, and you liked it and could afford it, then I am there to help you.

All that said, if you aren't comfortable, and don't want to buy for whatever reasons you decide, then no one is forcing you to buy! Good agents never force people to buy or try to convince them to do so, it is just a matter of laying out the facts on the table, and then letting the buyer evaluate for themselves.

But let's get real - California, affordable...ever?....mmmm...probably not. Hope this answers you question of when is the right to buy....again - my answer to that is when you as the buyer are ready, whatever your reason be. - Sat Jan 19 2008, 10:00

To defend myself, lets refer to a few comments I have already said and that is "At the end of the day, you can't and shouldn't have to "convince" buyers that right now is the right time, all you can do is educate them to the best of your capability and give them the tools in order for them to make an intelligent decision for their family. If you are honest and up front with them, then they will use you when they are ready."

I am by far, not a "car salesman", thank you. I take offense to anyone who would look at what I do as trying to trick people into buying a home because I just want to sell something, or that I just twist peoples arms to get a deal! I have a B.A. in business administration and in addition to that have taken a variety of educational courses on real estate in order to know what is best for my clients. My goal in real estate is to help my clients achieve their desire and dreams of being a home owner, and hopefully in that process make clients for life. Not all real estate agents are out to get you into anything and everything just to get a paycheck - there are a lot of them - but I at least know I am not one of them. So for future references, lets not stereotype..it's just no nice. ;)

People will always need to sell, and always need to buy no matter what the market looks like, and no matter where the majority of people sit in terms of their opinions on the market.

My point is, each person, good market or bad has a time when they feel it is the right time for them to buy and/or sell. No one is saying to buy or sell when you don't want to, we are just saying to make sure you educate yourself fully by using a variety of sources. Why wouldn't you want to hear the advice of someone who deals with this day in, and day out?! This is what I live and breath, not what I dabble in and check in on from time to time.

Lastly, for the record I never said it was the medias "fault" that people were not buying, I simply said that as agent's we need to make sure we do our due diligence in telling prospective buyers and sellers intelligent information on the market other than just the panic that the media is trying to display. Of course this is not a "terrific" market, but whether or not it is the right time to buy or sell depends on your situation! Each persons circumstance is different when buying and selling real estate. Lets face it, you have got to be super naive if you haven't figured out yet the media's capability to blow stuff massively out of proportion - not just real estate...and when the majority of us think media, we think the news...not trulia.com - Thu Jan 17 2008, 14:26

I totally agree, I am not trying to be argumentative either. I think what I am trying to do is make sure that there is intelligent information being placed out there other than the panic the media is trying to display. In my defense, my opinion(s) is based on the experience I have had in the business, as well as my mother's experience in the business, for a combined total of 19 years. As a realtor, I am not saying you are wrong in not buying, I am just saying here are some reasons why I have found that purchasing is always a good thing if you are looking at it long term.

As I said in one of my past statements, at the end of the day, myself nor anyone else can or should have to "convince" buyers that right now is the right time to purchase, all myself and other agents can do is educate people to the best of your capability and give them the tools in order for them to make an intelligent decision for their family.

I wish you the best of luck in your search! - Thu Jan 17 2008, 10:54

I can see your concern, but something to think about is unless you actually go to sell your home when your equity is reduced to 15% per were the market is, then you haven't actually lost anything. You only lose money, equity or your down payment if you sell in a time when the prices are down from what your purchased it at. Watching the market go down while you have no intention of selling, shouldn't matter.

Again, if you are going to buy and sell in a couple of years, then yes - be afraid, and don't buy. However, if you are looking to find something for a great price, and keep it for several years, then "watching your equity be reduced" is a mute point. You haven't lost anything until you go to actually sell.

People who bought in the 90's when the market was terrible, were singing a happy tune when the market sky rocketed in the 2000's. They predicted it would never turn around - "couldn't" turn around. The people that kept their investments made a ridiculous profit in spite of the media and everyone's opinions.

The point to be made is if buying is a long term investment for you, which it should be, then when you buy really deosn't matter. - Thu Jan 17 2008, 09:52

What I have been telling my buyers is if they have the financial capability and they can find a great deal, then right now is a fantastic time to buy!

There are several transactions that both myself and other friends of mine in real estate have closed where the buyer was able to get around (give or take) 10% off the asking price of an already reduced and under market value home simply by negotiating and finding the sellers that were willing and able to negotiate( i.e. they had enough equity in the home, or they were in distress)!

When buyers tell me that they are waiting until prices continue to come down, or they are waiting for the market to "hit rock bottom" I always then ask, how will you know when the market has hit rock bottom? Furthermore when you (the buyer) know that the market has hit rock bottom, do you think the sellers will know that as well, and if so do you think they (the sellers) are going to be willing to negotiate as much at that point?

On a very logical note - real estate is cyclical. The market goes up and goes down...la-ti-da...that's real estate. No matter what a buyer does, they will, if they buy now and keep their home for several years, make money - especially in California. People who are thinking of flipping or don't know what they want to do in 2 years...well then...I can understand the fear of purchasing. Even when the market was hot, buyers didn't know what to do, nothing has changed...the media will forever feed peoples fears about everything...real estate is just another drop in the bucket of a million other things that the media blows out of proportion and confuses people into making poor decisions based on fear and not education.

At the end of the day, you can't and shouldn't have to "convince" buyers that right now is the right time, all you can do is educate them to the best of your capability and give them the tools in order for them to make an intelligent decision for their family. If you are honest and up front with them, then they will use you when they are ready. Hope this may have helped! - Wed Jan 16 2008, 22:31

I found it interesting and I felt most people would like to have a variety of different sources for their information in which they form their opinions by, not just the ones that agree with their current stand on things.

If you notice, I am also not specifying that this is just for buyers/sellers, this also is in reference to anyone that could be effected by the drop in interest rates - i.e. people with short terms loans etc. I felt it was good to remind people to look into the fact that the drop in rates may effect them positively, even if they own a home and are not buying/selling this could be something people need to hear about their current loans and potentially damaging situations they are in. Lastly, it is wise information about what you should be providing people with and how to be cautious about not damaging your credit in the process of trying to improve it. - Fri Feb 1 2008, 16:55