la quinta home buyers; multiple offers
La Quinta and the Palm Springs Valley is on fire. The entry level price point used to be saturated with inventory..up until about mid 2011. Last quarter of 2011 and first quarter 2012 and now to second quarter..things have changed. The mid price ranges..$500-$800,000 have largely moved laterally. Meaning there is still inventory and the price/sf has not changed dramatically over the past 18 months or so. Luxury properties and super luxury properties have come down and are selling. However, they will most likely see more price decreases through 2012.
The entry level however has more buyers than it has inventory. So..that led me to this blog. I often work with Investors, and also first time buyers that will NOT offer a number that will win the bid. They are still in the past..”no matter the price, offer less..sellers are desperate..and hey, I’m cash!” Doesn’t matter..
If you have found a fantastic property that is listed fairly, it will probably garner multiple offers. Short Sales in La Quinta generate mulitples almost always..
1. Cash still trumps, but NOT if your cash offer is way below fair market value. Sellers know they will get what they have it listed at. Cash does eliminate potential contingencies and also decreases close time, so that is worth something. However, do not think you are the ONLY cash buyer..you are not.
2. Loan type: If you are a conventional loan buyer, you should offer List Price or a little above to beat out the Cash buyers on a multiple offer property. If you are FHA or asking for Closing Costs, your offer needs to be better than List price because Seller has to see a value to crediting you back your closing costs. You will be competing with Cash buyers..make your offer stronger to persuade the Seller that you are serious!
3. Clean, well written offers: Don’t tangle your offer up with contingencies, and pieces of furnishings, and this and that. Make it easy, clean and straight forward. Nobody wants to have to “figure out” what you want. Sellers want it as easy and clean as possible.
4. Cash buyers…don’t be arrogant. There are many other cash buyers in the market. Investors, foreigners, people that saved their $, people pulling cash out of CD’s and buying real estate..make an offer that makes sense!
Get there first. Submit a clean, fair offer..that means pay attention to the comps and believe them! Your Realtor should be giving you a number that will garner attention..listen! If you are interested in Short Sales, that’s for another blog..
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short sale just listed in La Quinta
Short Sale at the Norman Estates in PGA West, La Quinta. 81375 National Dr. $1,200,000. This is a killer house! Southern Fairway views from the back yard which has a large pebbletec pool/spa and built-in outdoor entertainment area. There is a circular driveway in the front of the home which leads to a hand-carved wooden front door. Enter the door to a huge great room with 3 sets of french doors that open to the interior courtyard with it’s private fireplace, then continue on to the lovely backyard. Both wings of this entertainers’ home open to this party courtyard through French Doors and accented with stone floors.
The home has 5 bedrooms + 5.5 baths on an almost 18,000sf, corner home site. Inside the main home is a chefs’ kitchen with Wolfe/Sub-zero stainless appliances, Fisher/Paykel dual dishwashers, custom granite slab counter tops and an eat counter to seat 4 easily. The dining area and wet bar open to the interior courtyard large french doors as well. The entire home is centered around the interior courtyard that is accessed through multiple sets of french doors.
Attached Casita, Master retreat with fireplace in each, 2 more ensuite guest rooms and a laundry room that is enormous! Then we go outside to the couryard, take the stairs up to the enclosed sky deck. A special place, with it’s private bathroom and balcony. What views! Up Fairway to the lakes and mountains beyond. Imagine sipping a glass of wine and watching the sun set from this vantage point!
Two notes. First with B of A and second with Chase. Sellers have all docs in order. Purchased in 2006 for $1,400,000 plus all the upgrades, this home is a steal. I list, work and CLOSE my short sales, and I will get this one CLOSED too!
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short sale at Mountain View Estates
Beautiful Short Sale home in Mountain View Estates in Desert Hot Springs. Adjacent to Mission Lakes CC, Mountain View Estates is a gated community of single family residences with spectacular Views! A short drive North of Hwy 10, this is a golf course community without the high HOA’s because it’s not REALLY on the golf course.
Beautifully maintained, this 2500+ sf home has 3bd/2ba in the main home + a detached Casita with a full bath. South facing, corner lot with no neighbor to the West, this home offers privacy. Located on one of the 55+ streets in the community, one owner must be 55+ years or over.
This home sold in 2006 for $495,000 and is now offered at $275,000. Only one note with GMAC, and a primary residence for the Sellers, this Short Sale should be relatively painless. The lot is over-sized at approx. 9600 sf with desert scape for easy maintenance, two covered porches in the back and spectacular South mountain and fairway views. Owners may play golf at the Club on a “pay as you play” game or they may join Mission Lakes CC.
HOA’s are a low $98/month and include a community pool, tennis court+ basketball court..great deal! Another Short Sale listed with the Short Sale CLOSER!
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Most everywhere across the country, and in La Quinta too, all you have to do is look in the local paper at the ‘For Rent’ section of the Classifieds to see that the rent prices are climbing. At the same time, home prices are either still declining or remain at a relative low. This is enough to get some reluctant home buyers into the game and ready to take the plunge into home ownership and the current spring selling season is reflecting this trend.
Other factors contributing to the increased buying activity – sales made by investors and second-home purchasers . . . but, realtors are saying that they are hearing complaints from people who are currently renting about the rise in rental prices. Experts are saying that due to the rising rents (avg. apartment rents rose by 2.7% last year) coupled with stagnant or falling home prices and available low interest rates, demand for entry level homes is on the rise. They also believe that 2012 will be the first year since 2005 that the percentage of apartment renters moving out to buy a home will increase from the previous year.
Some housing analysts say that historically, the cost to rent an apartment has been about 10% lower than the after tax cost of owning a home. That discount began falling in 2010 and last year disappeared entirely. By the end of last year, it was found that the cost to rent an apartment was about 15% higher than the cost to own a home – showing that conditions are “overwhelming” in favor of buying now.
But not all markets have been seeing the same trend – for instance, in Orange County and NYC, where home prices are extremely high, it is still cheaper to rent. But even NY realtors say sales of small studio and one-bedroom apartments are brisk because renters don’t want to pay such high amounts to rent – so may as well own.
Spring home sales are bustling . . . and the question remains, To Buy or Not to Buy . . . stay tuned !!!
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Well, it’s called fearlessness . . . ‘the quality of mind enabling one to face danger or hardship resolutely.’ That is the dictionary’s definition and that pretty much sums up what my friend Kim Kelly is all about. This is a guest blog and I am writing about Kimberley Joy Kelly – realtor for HK Lane Real Estate in La Quinta AND longtime pro on the polo circuit and trainer of polo ponies.
In this month’s issue (April) of Palm Springs Life, there is an excellent article entitled “Chicks With Sticks,” spotlighting Kim and another local female equestrian and their careers in the male dominated sport of polo. I can’t talk intelligently about the game of polo, as I haven’t spent a lot of time around horses and have only observed the game as a spectator. All I know is that from knowing Kim personally, the fearlessness she displays in her facility as a polo player, a game with obvious risks and dangers, is the same fearlessness she displays when running her real estate business. No challenge is insurmountable to her, short sales don’t daunt her in the least (she’s had five years of experience in short sales with an excellent track record – and she knows how to deal with the banks !!! nuff said). She amazes me, her level of commitment and focus to whatever she puts her sights on.
I know what I’m talking about because I speak from personal experience – Kim represented me and my fiance when we bought our home last year. She was on top of everything, making sure we got the best price and that the confusing whirlwind of escrow, loan procurement, etc. went as easily and smoothly as possible. She took amazing care of us, treating us every bit as well as she treats her horses. And that’s saying something, because she LOVES her horses and intuitively knows and responds to their needs.
Okay, here’s your answer to the question “What does a polo player and a real estate agent have in common?” And the answer is . . . Kimberley Joy Kelly.
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Palm Springs innovative building
Trend setting is nothing new to those of us living in the Palm Springs Valley. Architecturally, we have had a variety of different styles added to the housing in the Valley over the past century. The mid-century Moderns with Frey and Wexler leading the pack, have added to Palm Springs’ alure amongst buyers looking for something different and special. Well..we’ve got one more.
I have been reading about the “steel modern” homes for several years. In Yucca Valley, there are two of Blue Sky’s prototypes and I love the idea that the builders and architects used the natural environment to enhance their homes. The struggle is always to make the building of an eco-friendly home cost efficient and perhaps now, the steel homes may be ready for the main stream..
The Steel home hits Palm Springs..
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Finally the Palm Desert Country Club is back in the game. During the past few years, the golf course owner filed for bankruptcy and closed the course down . . . meanwhile, allowing the nearly 50 year old course to deteriorate. Imagine having a home in PD Country Club and looking out your back windows only to see dead grass and weeds where once were emerald green manicured fairways. Not only were aesthetics devalued, but values of the homes in the club went down as a result . . . in an already depressed market. Foreclosured and short saled homes were abundant and it was a depressing scene.
Enter a group of Canadian partners called PD Investments which bought the 27 hole golf course last year. Things began to shape up in the neighborhood very quickly. There are fewer homes for sale now, they’ve been bought and tidied up, bringing property values back up again.
PDCC’s director of golf, David Zickau, was hired in November and asked to embrace a simple philosophy as he moved forward in his new position . . . and that was to make the club friendly for all who go there. The course was overseeded, new carts brought in and other improvements were made to bring the club back up after 18 months of being closed.
The club’s management goal is to provide affordable golf at a high quality course, and there are membership packages available for every level of golfer. A round of golf can be had for $45 to $69, depending on time of day. Memberships range from $3,300 for single to $4,500 for a couple, with special rates for snowbirds. In addition, improvements have been made to the 13,000sf clubhouse – such as a new outside patio area with 4 fire pits.
The Palm Desert Country Club’s golf course has been almost fully booked since re-opening, and hopefully the young and enthusiastic staff will continue to please members and attract newcomers. Kudos to PD Investments for their commitment to bringing the club back and hopefully exceeding expectations.
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Thermal is the site for future development of a high end country club and racetrack for wealthy car lovers. What a score for this Desert community located on the east end of the Palm Springs Valley !!! Developers planned to break ground today on this exciting project that’s been in the making for years.
Coined as the “Rich Man’s Playground,” the Thermal Club’s developers claim they will succeed because there just aren’t many other places like this in the entire world – even though economic times are tough around the globe. A project of this type is not a new idea in our desert, there has been talk of building something like it here since the late 1980s.
The race course has been in the design stages for the past two years by Alan Wilson, a well-known track designer out of Salt Lake City. It will feature 3 independent circuits with the flexibility of running 19 different configurations.
Discovery Land Company is the Scottsdale based development company which is handling development, sales and operations at the club. They also developed The Madison Club and The Hideaway luxury country clubs in La Quinta. Memberships to the non-equity private club start at $85,000, corporate memberships of $200,000 include up to 4 designees. Club members must purchase lots starting at $200,000.
Approximately 40 people have joined the Thermal Club so far, most of them having homes in the Palm Springs Valley, Los Angeles, Orange County and San Diego. Some members are from Texas, New York and Montana.
The Thermal Club project is expected to generate hundreds of jobs locally in construction, with about 60 permanent positions. What a boon for our desert here and for the city of Thermal !!! It will be exciting to see how this project develops !!!
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Who's paying for the view??
Who’s buying the really BIG properties..big prices and big locations? The Russians according to the New York Times. This specifically talks about New York, but it made me wonder…will they be heading here to the Palm Springs Valley any time soon?
Some of our most luxurious high end properties are on golf courses. Of course, they could BE golf courses. Porcupine Creek just sold. Escena and Palm Desert CC both sold to development companies that are now re-habbing them and building the properties out. Then there are the luxury golf developments of Bighorn in South Palm Desert. If you want a more rural surrounding, The Madison Club in La Quinta might be the one for you. Indian Wells, located centrally in our Valley offers several exclusive clubs..The Vintage is one of them. There are some glorious properties in downtown Palm Springs that just might ring your Russian Bell..
Luxury property sales here in our Valley have continued to record higher and more frequent sales through the first quarter of 2012. These sales are expected to continue through the year and into next year. Great values can be had in these higher end properties now that their List Prices are more reflective of the market.
If you’re looking for luxury..now could be the time.
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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!
