Last week was the first week that I received this comment from potential La Quinta home buyers..not once, but twice. Is that ubiquitous bottom, behind us?
I have no way to know for sure if we are at the bottom..in any price point. If you run into a Realtor that swears they DO know..I would suggest running. We Realtors are out in the streets daily, looking at homes, studying the inventory of available homes, looking at numbers of foreclosures that may be coming down the pike. We do have a better feel for the “bottom” than the average bear, but we do NOT have a crystal ball that predicts the future. So..are we at the bottom?
In many developments in La Quinta, Indian Wells, Rancho Mirage and Palm Desert..as well as Palm Springs proper, it appears we may be. Why? There are more Buyers looking for the same properties than there are those properties. What is everyone looking for in the desert?
- Sun orientation. South means more hours of sun. West is setting sun.
- Views. We have a unique situation in that we are a desert with mountain ranges and Buyers want to see them!
- Lot size. Large or small, Buyers want something in particular
- Water? Many Buyers demand water views or proximity
- Fairway location: HUGE here in the desert.
So..as you can surmise. If you are a buyer looking for a home with 3 of the 5 criteria above, your Inventory is very limited..no matter the price point. However, there are plenty of homes WITH the above mentioned criteria. They just are no longer only selling if they are short sales or foreclosures. Equity homes (standard sales) are now becoming more and more normal.
Buyers are still demanding a good value, just not a “steal.” The Steals are now much fewer and further in between. But, hey, look at it this way. Now you KNOW you are buying into a desirable area, right? There is nothing more comforting when you buy ANYTHING than knowing that lots of other Buyers desire exactly the same thing. Value is rising.
Views, location, sun..Buyers are paying for these!
If you’re a La Quinta “Covian,” or even if you’re not, you may very well have never heard of or noticed this amazing little enclave of luxury homes located west of South La Quinta’s Yucatan Cove on Avenida Montezuma. Tucked into a corner of the cove and nestled up right next to the breathtaking Santa Rosa Mountains, these 19 custom estate residences form the community called Flores De Montanas.
Flores De Montanas is exclusive and gated for utmost privacy. These multi-million dollar estates are situated on a 9 prime acres of La Quinta Cove, with access to the 4.75 mile hiking path that starts on the corner of Eisenhower and Calle Tampico and travels south toward the Fred Wolff Nature Preserve and the Cove Oasis Trailhead. Where else in the valley can you find a hiking/biking trail practically at your back doorstep?
Located in the heart of La Quinta near Old Town, you can walk or ride your bike to its wonderful shops, restaurants, Coffee Shop, Farmers Market and Art Festivals . . . and the same with the La Quinta Resort & Hotel located just down the street on Eisenhower Dr.
Flores De Montanas is a great place to live for anyone wanting to live in one of the most exclusive, small and private developments in La Quinta. If you’re looking to build your desert dream home, the “Covian” lifestyle may just be the perfect fit for you.
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Eldorado merges with Golden Voice
If you thought the Coachella Valley Music & Art Festival could not get any bigger, think again. Golden Voice, which operates the Festival, has just partnered with the Lake Farm owners of Eldorado Polo Club in it’s quest to increase the holdings for the Festival here in the Coachella Valley. Eldorado Polo Club sits on some of the most desirable acreage in the Valley and consists of 13 polo fields, a clubhouse, Cantina/restaurant and acres of stalls and corrals.
It’s not clear if Golden Voice actually purchased the polo club, but that may be the case. They are promising Polo as it’s always gone on..but better. During the festival, the fields will be converted into parking, tent cities and all the other things a music festival of this magnitude requires. The Coachella Music & Arts Festival is heading into it’s 12th year of continued growth and success. Now running for 2 weeks, including the ever growing Stagecoach Festival of Country Music greats, this recent purchase ensures the Music Festivals presence in the Valley for years to come…and sounds like the continued presence of the famous polo club and all the revenue the players/grooms/families and their ponies bring to the East Valley.
If you are thinking of buying a home in Indio or the East Valley..now may be much better than later.
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The Palm Springs Valley seems to have grabbed the attention of a residential development firm called Alta Verde Group out of Beverly Hills. The firm recently acquired 3 new master planned communities in our desert to the tune of approximately 300 lots located in Alta Verde Coral Mountain in La Quinta, Monte Sereno in South Palm Springs and Escena Resort in Palm Springs.
The Alta Verde Group, led by Andrew Adler, is an award-winning firm led with a history of successful large scale, award-winning real estate endeavors ranging from urban projects to gated communities, from Texas all the way to California. Alta Verde is designing its new developments in the Palm Springs Valley to accomodate the emerging next wave of second home and retiring baby-boomers looking for something different from the cookie cutter McMansions of the last 20 years. The firm’s driving motto is “Where Design Matters” … and they have teamed up with a leading international architect in LA to create these new developments which will focus on open space and contemporary elegance.
This firm is also environmentally savvy, designing homes that have flat roof designs which are pre-set for solar, car-charging electrical wiring, as well as other energy efficient designs that result in savings for the homeowners.
Adler says about his company’s projects in the Palm Springs Valley, “It’s rare when this level of style, features and location come toether at the price points we have created . . . We’ve taken the kind of spectacular architecture you would only find in vastly more expensive homes, and brought it down to scale, so that it is within reach of a larger populace base.”
Sounds like a new generation of residential development in the Palm Springs Valley is about to get underway !!!
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Old Town Coffee Company in Old Town La Quinta feels like that comfy pair of slippers you can’t wait to put on after a long day’s work . . . it’s casual, it’s cozy and the people who work there know your name (if you’re a regular like me). The coffee is yummy, very important at a coffeeshop, though I’m always amazed at the number of people who still flock to drink the swill at Starbucks (always tastes burned to me) . . . but, to each his own.
The hardwood floors and overstuffed furniture inside of Old Town Coffee Company make this the perfect place to meet up with friends or family for early coffee, brekkie, yummy lunch . . . or frankly, just about any time of day. There are an assortment of outdoor tables (some with umbrellas), nooks and crannies to settle into while enjoying your cappucino or latte or americano and something delicious to go with it . . . like incredible muffins, fancied up bagels, frittatas, smoothies, sandwiches and more. I’ve never eaten anything there that was less than scrumptious.
Situated on a prime corner in Old Town La Quinta, the OTCC is the perfect gathering place. There always seem to be bevies of bikers, adorable doggies, children, people dressed up, people dressed down, young, old . . . you name it, you’ll see it there. During events like the weekly Farmer’s Market on Sunday mornings, Art Under The Umbrellas, just to name a few, the Old Town Coffee Company is packed to the gills. There is spirited conversation and laughter floating in the air, a general good vibration all around. Wi-fi is available if you want to bring your laptop and surf the net.
So, if you haven’t made it over yet to Old Town Coffee Company yet, you should call up a friend and plan a rendezvous soon !!!
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Bank of America appraisers..dazed & confused
The appraisers for the Servicer in a Short Sale can make or break the acceptance of the offer. If they are not familiar with the area, the development, the price trends in the neighborhood…your deal could sink like a HUGE stone. That’s what happened to me..more than once. Each Lender is different (Lender being the Servicer here.) Bank of America has more bad notes than any other bank so the numbers of bad appraisals tilts to them.
In the Laguna Niguel home that has been the longest, most ill-handled of any I’ve had with Bank of America, the latest appraisal is so far over market value that it defies common sense. But..common sense and Lenders/Investors is not in the same sentence..EVER!
My offer is for $865,000. Fair Market Value. Their appraisal came back for this Buyer (#4) at $1,050,000. As I mentioned before..this just happens to be the List Price I started at almost a year ago. I suspect this appraiser came in at an easy number, never did the appraisal at all..just put the $ in their pockets. A whopping what..$50 or so? I don’t know, but they don’t make much…part of the problem..but that’s another story.
The Bank of America Social media contact did escalate my file and I was contacted yesterday to fill out a form and submit my best supporting comps. There are only 3 SOLD homes in the same gated neighborhood so that wasn’t hard to track down. All 3 of them support my price/sf. Where did that appraiser come up with that inflated value. Hmmm…very interesting and suspiscious that their appraised value just happens to match original list value. Really smart and creative of the appraisal company.
Should we all hold our breath and see if Bank of America over rules the high valuation? I’m not going to..that would take some common sense. If they do however, I will fall off my chair and then hit the blogs..
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Madison Estates is making a come back !!! This sprawling gated community located at Avenue 49 and Madison Street, one block east of Jefferson Street in the Vista Santa Rosa area of Indio, was originally designed to be a highly sought after address in our desert area. Construction began on nine well-appointed luxury homes, then going for $1,200,000 to $1,600.000. When the real estate market tanked and the development was stalled, these beautifully designed and well-thought out homes sat idle.
Ridgeback Partners, a real estate brokerage and management team, now own Madison Estates and are getting this upscale community back on its feet. The current owners recognize the value of the community’s location and original intent . . . and also that the market has changed since it first broke ground. Ridgeback Partners selected Family Development as the building team to finish out the nine original custom-quality homes. . . . and they’re priced at half of what they originally went for, starting at $600,000. Family Development has purchased 46 unfinished lots at Madison Estates, so there will be more grand homes to come.
Madison Estates’ homes are built in Tuscan, Spanish, Colonial and Mission styles, with each residence featuring more than 4,000sf of living space on half acre lots. There are many custom amenities and ugrades, including full landscaping, pool and spa are also included with these homes.
The downturn of the economy has an upturn . . . the luxurious and upscale homes in Madison Estates are now offering “Twice the Luxury at Half the Price.”
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Just one more file number to Bank of America..
My saga with the never ending Short Sale in Laguna Niguel, CA. continues. For the property history see my previous post. A couple interesting developments in this ongoing battle..the Investors for this one purchase money loan are..drum roll here…Bank of America! Well..that puts an interesting twist on things, doesn’t it?
Bank of America is the Servicer..they collect the mortgage payment every month, but on this particular note, they decided not to sell it off to a group of hedge funders or to Fannie or Freddie, but rather to keep it in their portfolio of “high-performing Loans”…or whatever they label that particular folder.
Normally, when I have only one loan on a primary residence and it’s a portfolio loan, I jump up and down because I’m about 99% sure I can get it closed relatively quick. This one should have been a slam dunk because the Sellers get me their docs immediately, and the hardship is a separation from spouse with reduced income, making it necessary to let the home go. Not so fast. If you have been following the news, you know that the Banksters just got a 26 billion dollar settlement agreement completed with the Federal Government. I don’t know all the details..I do know that the principal reductions that they are to take on some of their notes ONLY pertain to portfolio loans..not Fannie or Freddie. Hmmm..coincidence here? I suspect there is some extra money to be made at taxpayer expense, having to do with offering to reduce principals on portfolio notes..and that is what this one is!
So..yesterday I get a call from the Bank of America media contact person. She has read my blog and seems sincere when she says she is going to look into it. “I can’t promise you anything, but I will get back to you.” I’m still waiting..
Meantime..my esteemed negotiator, Camele, calls. She obviously knows nothing of the uproar surrounding this deal, which is curious since I communicate with her a couple times a week via Bank of America’s online short sale system, Equator. Nevertheless..Camele calls and says something like,
“My Investors want this deal to work, so let’s see what we can do.”
“Camele…your Investors are one and the same..Bank of America, and they absolutely do NOT want to sell this house! If they did, they would accept this offer of $865,000 because I have their approval letter, and so do you by the way, from my last Buyer, Buyer #3. Remember them? They were approved to close on this house March 16, 2012 for the Bank of America approved price of $865,000!”
Silence.
“Well, my Investors have to see less negative numbers, so perhaps you would reduce your commission?” says Camele.
“Camele..I have spent almost one year on this short sale. I have done my job exceptionally well I would say, by bringing them not 1, not 2, but FOUR qualified Buyers..my commission is off the table.”
Next she suggests getting the Buyers to throw in some money. Not an option in California first off, and secondly, their Lender has already said they will not appraise this property at a dime over $865,000. Shock and awe here because Buyer #3 Lender appraised the home at $825,000!.
“I want a copy of that appraisal, Camele, and I also suggest that no matter the number on it, your highly qualified Investors fire him (or her)!”
What don’t they understand here???? Your Investors gave me a number of $865,000 as FMV. I bring yet another buyer to the table at that number and you raise the number to $1,050,000. Isn’t it interesting that the new Appraised Value matches my original List Price which I picked out of the air based on the note value of approx. $1,085,000.
There is something very fishy going on with Bank of America’s Short Sales. They do not want to sell this home..period! Never mind what you read in the papers. Let’s see if I get anywhere today…I’m not holding my breath.
Oh by the way..the Buyers’ Agent told me yesterday that the Buyers will not go $1 over $865,000. So..if you see it re-listed at $1,050,000, just wait..it WILL come down. To think this home could have been closed six months ago..now THAT’S good business Bank of America!
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Escena, a Mid Century Contemporary styled community in Palm Springs, is just another long-delayed development in our Coachella Valley currently experiencing a revival. Having debuted back in 2006, Escena held much promise with its offerings of an 18 hole Nicklaus golf course, fantastic clubhouse and dining facility and two innovative and modern-styled home developments by Lennar. It is ideally close to downtown Palm Springs, the Palm Springs International Airport, Interstate 10, Highway 111 and more (and let’s not forget its stunning views of Mount San Jacinto). And then, well you know the rest of the story . . . the economy took a nose dive.
The exciting news is that Alta Verde, the new developers at Escena, are planning this summer to begin selling Escena’s new homes, ranging in size from about 2,200sf to 2,800sf. These homes carry through, as one would expect from a modern, with open floor plans, clean lines and lots of glass . . . bringing the outdoors in. These homes are priced from the low $400,00s.
Alta Verde’s new homes in Palm Springs at Escena are different . . . different how, you ask??? Well, different enough that the new developers claim their homes boast modern space planning and design with a new edge, coupled with building technologies of today. They are calling their homes “This Century Modern.” Brilliant.
I’m Looking forward to previewing this new generation of home, “This Century Modern,” when they become available in the summer. Just part of Modern architecture’s evolution and changing with and for the times. History in the making.
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Bank of America; Short Sale Agents nemesis!
Bank of America is determined to ruin the Short Sale industry. I say this with complete frustration after doing short sales with them for over 5 years. I’ll have a great negotiator and experience with one and then the next crashes and burns because NOBODY at Bank of America seems to know what’s going on! Good Grief..how about some consistency???
This one particular Short Sale has been going on for almost a year! It is the longest one I have ever worked..except in year 1 where literally nobody at the Lender or Investor or even Realtor level had any guidelines in place. But that’s another story. Listed at $1,050,000 with one note and it is a primary residence. No offers or interest at that price so reductions begin. Finally..at $850,000 I get an offer and submit it. Appraisal comes back at $980,000! What??? Buyer walks of course.
Buyer 2: Same experience..except that the value is dropping even more.
Buyer 3: B of A accepts $865,000 complete with Approval Letter for a March, 2012 close (this month). Buyer walks because their Lender will not appraise the home at $865,000 but rather at $825,000. B of A won’t budge.
Buyer 4: B of A orders a new appraisal (Forget the 48 hr. Buyer substitution..it does not exist). I am SURE we will get this offer closed..but wait. The new “full appraisal” comes in at $1,050,000! Oh..and the appraiser never contacted me and I believe never even went to the home.
Buyer will be walking. I am going to the Investor to see if I can get them to budge. Have asked Buyers Lender to submit a new appraisal. Have asked Buyer to contact B of A and threaten with Legal Action.
What kind of idiocy is this??? For some mysterious reason known only to the powers that be at B of A, this loan is going to go to Foreclosure. They have decided that..never mind “we are trying to reduce the inventory by closing Short Sales quicker..” That’s a marketing line from B of A.
The Banks do NOT care about the economy other than keeping their shareholders in the dark and driving housing prices further into oblivion.
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