Home Solutions San Diego Blog

How much is real estate in San Diego going for these days?

Well, recently I attended a foreclosure auction at the San Diego Convention Center that was put on by REDC.  Curiosity led me to help out a real estate investor who needed a list of sales prices at the auction, so I was at the convention center the whole day. 

The auction was free to attend and was held in one of the main exhibit halls.  Rows of seats were taken up by about 300 or more attendees - many of them who had made the deposit of $5,000 to place a bid on a home while people like me were there just to check out the auction. 

This foreclosure auction was like your typical auction where you have an auctioneer who talks fast and rambles off prices to build up that “I gotta have it now” energy.  There are guys in suits on the floor who walk up to you if you make a bid and let you know where the price is at - or if you look like you’re going to back off, they entice you to keep bidding. 

If you plan on attending one of these foreclosure auctions put on by REDC, here are a few tips:

• Preview the home before you go to the auction.  Most of the time there will be an open house a couple days before the auction starts.  Sure, a home could look nice on the outside, but it’s best to check out everything before you even place a bid.
• Know what your bidding limit is.  At auctions like this you can get caught up in the excitement and next thing you know you’re bidding way above what you can actually afford.
• Keep in mind that there is a 5% premium on top of the sales price.  REDC charges this 5% as their fee.
• If you have a real estate broker or agent, bring them along for support.  (Brokers will need to register here)

To answer the question I posed at the beginning of this post, my answer would be…

Real estate in San Diego is going for about 30-50% of what it was four years ago - according to the sales prices at this particular auction that I attended.  It certainly is a great time to buy! 

Find out more about REDC auctions by visiting: www.ushomeauction.com/

There are many things to consider when remodeling or purchasing an older home. Homes built before 1980 have the strong likelihood of containing asbestos. Due to a steady progression of technology and green sustainable methods, there are many ways to ensure your home or property is asbestos free. If you are interested in saving money, remodeling and improving your carbon footprint, here is some information to get you on the right track.

Used in millions of homes throughout the last quarter of the 20^th century, asbestos insulation can become a real dilemma for homeowners due to causing a variety of health problems, including Peritoneal Mesothelioma and Malignant Mesothelioma. These types of cancer take the lives of thousands each year. 

Photo Credit: GreenForAll.org

Non-regulated asbestos material can be legally performed by homeowners, regular contractors, or licensed asbestos abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated. Asbestos removal in public facilities, homes and workplaces must be undertaken by a licensed asbestos abatement contractor. Once the removal is complete, green insulation options should be given serious consideration, such as: Cellulose, Cotton Fiber and Lcynene.

The United States Green Building Council (USGBC), in a study conducted in 2003, estimated a savings of $50-$65 per square foot for well-constructed green buildings in the U.S. (see table below) during that year. The numbers continue to improve as more eco-friendly options become available, and those kinds of figures have finally begun to attract those who thought eco-friendly construction was just a bunch of hogwash.

In the current economic climate people are thinking about budgets and Needs vs. Wants. So I wanted to share this guest post to help out those of you have have just purchased your first home and are in this situation…Enjoy!

Homebuying is a big investment and an important undertaking. It is also a chance to look at your financial picture and make some key decisions about the future. Are you a young couple just starting life together and thinking about your first home? Are you getting close to retirement, or dreaming of it, with the kids long since having grown and gone? The particulars of each one’s situation will differ according to their life stage, and in each case their future will be what they make of it.

If you are in the position of being able to afford anything you like, you are in control. You can satisfy your wants, the luxuries that make living easier or nicer. Your needs will be easily met and you will be able to tell yourself, “I’ll buy it.” If you are under a tight budget, you will have to prioritize.

It is all too easy to overbuy when interest rates are favorable and the market seems rigged in favor of the buyer over the seller. Even if it is truly a terrific deal, keep in mind that the economy and the market fluctuate over time. Avoid wanting too much.

Now let’s look at some essentials that fall into the “needs” camp. If you are young and just starting out, this is a good time to sit down with your spouse and discuss how many children you would like to have. A family needs a secure home. You don’t want to need a bigger house too often for another baby expected. Do you manage a home business? If that is the case, you will need a home that will allow an office and storage and work areas.

Next, look at things in the “wants” category. Look at how you live. If you entertain often then you might need to focus on a house with a formal dining room and a kitchen or a backyard deck and a pool. Alternatively, if you don’t see this playing a major role in your activities, then focus on alternative pursuits. A rec room? An area for doing work on cars? Accommodations catering to a hobby or interest are a luxury, you must admit, and should be handled accordingly for evaluation in finding their place in a priority list.

The boundary differentiating wants and needs will vary significantly depending on different individuals’ incomes, family size and interests, and their future plans. This is a good time to sit down with pencil and paper and get out in the open just what it is that you really need, and put the needs first, and then list your wants in their proper order. Only when you get this list firmly in mind will you be in a good position to go out and start the hunt in earnest.

Content furnished by Automated Homefinder, the Denver home experts of Colorado.

Photo Credit: Redvers

Here are some of the latest thoughts on San Diego real estate in the news and blogosphere that I found to be of interest…

Roberta Murphy of The Murphy Group says “Let’s Resurrect Assumable Loans“

Brian Brady of World Wide Wealth Advisors offers us the San Diego Real Estate and Housing Outlook For 2009

Mary Ann Morrar shares her thoughts on DataQuicks Numbers for San Diego vs. Local 4S Ranch

Jim Klinge of Klinge Realty offers a great list of resources for San Diego Home Auctions

Have some thoughts to share about the San Diego real estate market? Leave a comment or email admin [at] homesolutionssandiego [dot] com

Congress has passed the bill that will bailout banks and financial institutions who have contributed to this disarray in the mortgage and real estate industries.  So, how will the passing of this bill affect the San Diego real estate market? 

As Marc Von Musser states on his blog, the Emergency Economic Stabilization Act doesn’t directly help homeowners or homebuyers, but it does so indirectly as buying habits are driven by consumer confidence.  However, I’m not so sure that people will be so confident just because Congress passed this bill.  I’m not even so sure the banks will even regain trust from the American people - and if they do, it will come back very slowly. 

The question that crosses my mind over and over again is:  Where is the bailout for the people whose homes were lost in foreclosure due to predatory lending practices by these banks?  These people’s credit scores have been mutiliated, not to mention that they have to go back to renting or live with other family members in order to get back on their feet.  Also, why do taxpayers have to pay for the mistakes of Big Bank Executives?  I’m not one to really dwell on all the negative press, but I feel the need to ask these questions.

In theory, the Emergency Economic Stabilization Act (a.k.a. “$700B Bailout Plan”) sounds like it could work, but this seems like a short-term resolution.

MarketWatch has published a summary which explains what the EESA means in layman’s terms.

Photo Credit: Ricardo Carreon

As a resident of downtown San Diego from 2000-2004, I lived there at the cusp of the real estate boom…When bulldozers and the sounds of construction woke me up every single day at 6 a.m. It was frustrating, yet very exciting at the same time. I felt major changes occurring in the downtown real estate market and I was right smack in the middle of it. I was very excited to see East Village blooming into a very hip, happening place - a far cry from what it was ten years ago. I remember being a little hesitant to even walk in that area during that time.

However, now downtown San Diego has grown into a very chic, yet still very down-to-earth metropolitan area and to this day I’m still amazed at the improvements that have been made. If only they could fix the potholes and cracks in the streets! Oh, but I digress…

Although I now live out in the suburbs, I still make my way into downtown a couple days out of the week to do some writing in a coffee shop or just enjoy a nice lunch in one of the many restaurants in the Gaslamp District.

This is the view from one of my favorite hangouts, Java Jones Coffeehouse on 9th Ave in East Village. It’s a very dog-friendly coffee joint that serves organic coffee and all kinds of healthy treats. I love it because it has free wi-fi and a couch, plus armchairs for people who don’t like sitting on hard wooden chairs!

Right around the corner from Java Jones you’ll see many of the newer condominium buildings, including Alta which you can see here with the “Now Selling” banner plastered across the building.

This is the scene from the trolley stop at the bottom of Smart Corner. Smart Corner offers studios, condos, and lofts from the mid $200,000’s.

Despite it’s massive growth, downtown San Diego still maintains that small town feel…

Are your electricity bills climbing monthly? Are you looking for ways to save money in your home budget? Here are a few simple tips to decrease your electrical usage at home. This will allow you to put extra money in your pocket while conserving energy.

Change your light bulbs. Standard 75-watt light bulbs are manufactured to last 1000 to 2000 hours. Furthermore, during this time they consume 75,000 to 150,000 watts of electrical energy. In contrast, compact fluorescent twist bulbs last up to 8,000 hours and use only 23 watts of energy. If you do the math, and factor in the cost of the bulbs, this translates into a savings of $74 per bulb over the lifetime of the bulb. Multiply this savings by the number of bulbs in use on an average evening in your home. You can save this much money every four years!

Consider replacing older electric freezers with newer, energy-efficient ones. For example, older chest freezers use, on average, 50 kilowatts of electricity more each month than newer freezers do. A newer freezer may cost $150 to $200. If you calculate the cost of the additional energy, however, (12 cents per kilowatt-hour times 50 hours), you spend up to $12 more per month to cool an older freezer. In one year, you have almost completely recovered the cost of the freezer.

If you use your computer frequently throughout the day, don’t turn it off. Computers actually use more energy by powering on and booting than by remaining on throughout the day. A better alternative is to adjust the settings for screensaver and sleep mode. Allowing your computer to go into sleep mode or standby after five minutes of non-use is much more cost effective than turning off your entire system. Additionally, if you use the printer, fax, or scanner only rarely, put them in standby when they are not in use.

During the winter, consider setting your thermostat at 65 degrees and purchase a ceramic heater. These energy saving devices require minimal wattage to operate. In fact, you probably won’t notice even a slight increase in your electrical bill. Your heating bill, however, will decrease by several dollars each month.

The most effective way to save electricity, however, is to determine what appliances or devices in your home are using the most electricity. The easiest way to do this is to purchase a small meter or to borrow one from a friend. These meters are very simple to use. Just place the meter against the cord of the appliance being tested. The meter will display a readout of the watts being consumed by that device. If a piece of equipment is using excessive energy or creating a surge, the meter will indicate this. You can then have the equipment repaired or replaced to decrease your energy usage.

Don’t waste dollars by using outdated equipment. Repair or replace damaged power cords. Following these simple steps allows you to save money and energy. Enjoy the savings while you protect the environment!

This article provided courtesy of http://coasters.pebbleZ.com home of the absorbent stone drink coaster.

Photo Credit: Just-Us-3

In San Diego there are many, many real estate agents and it can be a challenge to find someone you can really trust. As a former real estate agent I’ve met my share of agents who were not-so-honest. However, there are still quite a few agents out there who have their clients best interest at heart.

One San Diego real estate agent I know who is indeed a professional and highly experienced in the field is Andrew Arroyo. He was kind enough to take some time to answer a few questions…

What did you do before you became a real estate broker?

I was a high school student. I worked a minimum wage job delivering pizzas for $3.75 an hour in 1994 to save up money to buy my first car. I pumped gas for a while as well when I was 14. After high school I went straight into real estate and decided to skip college.

Who or what inspired you to get into real estate?

A very good friend of mine who I worked with at the pizza place also worked at a real estate appraisal agency his mother owned. I started to assist him with a few appraisals and had the chance to meet some of the real estate agents. The agents were mostly jokers, extremely obnoxious like all the clichés. I decided on the spot there was room in the industry for down to earth, hardworking agents. After meeting with a few more I realized that is what I was going to do the minute I finished high school. I remember being in class during the last recession in 1992 reading classified ads, speculating which homes would foreclose.

What’s your view of the current real estate market?

The current market is challenging, especially for those who purchased multiple homes or over leveraged themselves. When you analyze the market between 2000 and 2005, it was like a great party where everyone was having a good time and making lots of money. Today is like the hangover. There was a combination of critical factors that created this bubble. The public started speculating heavily and the Federal Reserve over did the low interest rates. This is why we now have inflation and gas prices over $5. The lenders didn’t help either by setting unrealistic guidelines for unqualified borrowers to get big loans. All financial markets, including real estate, are made up of fear, greed, supply and demand. At the present, we are over supplied and the psychology is full of fear; a classic down trending market. Buyers are scared to buy and sellers just want to break even. All that said, we will be just fine here in San Diego once the shake out is finished, California has always been a boom-bust state. Besides, we have the best weather pattern in the country and 76 million baby boomers looking for sunshine.

I read somewhere that the luxury market hasn’t declined very much. Have you experienced any slow-down in business?

Our business grew 40% in 2007 and we should hit 50% growth this year. I credit all of our growth to my hardworking team, they are priceless. Thankfully, we built systems modeled from the last cycle 1990-1995 when prices declined 50% which have got us through the tough times. We actually have been donating money to charities this year.

The luxury real estate market has not declined much….yet. Many people believe that the luxury market is immune from the real estate debacle. However, all price ranges will eventually succumb when the markets reach equilibrium. The way real estate markets recess is that foreclosures slowly climb the ladder. They start with the lower end homes like the sub-prime market and slowly work their way up the ladder. The luxury markets will have there fair share of troubled times before this cycle is over.

You’ve sold over $100M in real estate which is a phenomenal achievement. What is the secret to your success?

When I was 23 when I sold my first home over $5M when people told me I could never sell real estate being so young. The bottom line is that people want an agent they can trust and will deliver them a good deal. One example is a home I found for a buyer for $10.6M that was sold for $17.7M two years later netting the owner $7M. Not a bad day at the races.

Our secret for success with sellers is the custom marketing plan we implement for each home; which translates to higher prices for their homes. Our secret for buyers is providing them the knowledge to make an educated decision when finding their dream home. In general, our team is routinely quizzed to know the market like the back of their hand; taking the temperature daily. Our exclusive database helps also.

If you could only give one tip to home sellers, what would it be?

Don’t hesitate. If you truly need to sell your home in this market you need act swiftly and aggressively. Waiting it out is a mistake if you are leveraged and have little cash saved. You will need experience and exceptional marketing on your side. Many sellers confuse marketing with advertising and hire agents who do the most advertising which is a mistake. Make sure you are working with a firm or an agent who is well capitalized to spend the money necessary to get your home sold.

How about advice for home buyers?

Find an expert who really knows the area. You can spend dozens of hours looking at homes online until you are blue in face and learn nothing about the underlying value certain neighborhoods offer. We live in a do-it-myself generation which is great for purchasing many items, just not your home. When you go to the doctor’s office you don’t tell the doctor what you will prescribe for yourself. You tell the doctor your symptoms and they use their knowledge and experience to provide you a solution. A good real estate agent should listen well and do the same. The metric that needs to be studied carefully today by home buyers is price per square foot. Once again you need an expert to share the history of that metric, if not you have no benchmark.

If you’d like to buy or sell a home in the La Jolla, Del Mar, or Rancho Santa Fe area, contact Andrew Arroyo at 858-342-9292 or email: vip [at] andrewarroyo.com. Visit his website: www.andrewarroyorealestate.com/imain.html

Summer is here and that means we’ll be spending more time outdoors. I know that I’ve been barbequing out on the deck quite often these past couple weeks and I realized just how important it is to have some kind of outdoor area for people to hang out and relax - especially in a city like San Diego!

If you don’t have a deck yet but are planning on having one built, you may be interested in checking out this article over at HousingZone.com that talks about the latest trends in decks.

Here in San Diego there are a few companies that specialize in building decks:

San Diego Decks - offering custom built decks, patio covers, or restore decks; located in Central San Diego

Deck SanDiego - specializing in high-quality decks, trellises, and outdoor amenities; located in Chula Vista

Delphi Construction - offering restoration and new construction of decks, patios, and facades; located in North County San Diego

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Just this past week local North Park based contractor, Berkley Construction, received the annual California Small Business award based on community involvement and commitment to green building initiatives. The award was given based on Berkley Construction’s excellent customer service record, quality of workmanship, community involvement, and commitment to green building initiatives. The company also has an unblemished record with the San Diego Better Business Bureau.

Keith Berkley founded Berkley Construction in 2004 after graduating from SDSU with a MBA in International Business and a Master’s in Latin American Studies. Keith was joined by John Stroble in 2006 to help expand the company while improving customer service and quality of workmanship.

Currently with 11 employees, the company utilizes flex time for single mothers and students, encourages green building practices, offers alternative energy solutions and sets a premium on customer service and community involvement.

In 2007 Berkley Construction was recognized by the San Diego Union Tribune Reader’s Poll as one of the top 3 Home Remodeling Contractors. Berkley Construction looks forward to engaging green and sustainable building practices both locally and internationally.

Find out more about the company by visiting: www.berkhome.com/