International Investors Buy Homes In San Diego

Why San Diego real estate? It’s simple. When compared to other major cities around the world, San Diego real estate prices are shockingly low.  San Diego homes are now more affordable than homes in Toronto, Shanghai, Hong Kong, Tokyo, and many other major cities around the world.  Yet the San Diego weather is arguably the best in the world, the economy is very strong, and the quality of life is amazing.  The city is clean, fun, relaxed, friendly, safe, and on the ocean.  San Diego homes are in stark contrast to the hustle and bustle, bitter cold, scorching heat, and pollution that exist in other parts of the world.

International Real Estate Investments in the United States

According to Point2, California real estate is one of the top 4 U.S. states considered by international home buyers as measured by volume of online search traffic.  International real estate investors concentrate on Florida, Arizona, Nevada, and California.

Canadians Buying U.S. Real Estate

Canadian real estate investment in the United States focuses on Arizona, Hawaii, Michigan, and California.  Michigan’s proximity to Toronto explains that state’s big draw from California.  And Hawaii is in its own world.  So Canadian home buyers looking for warmer weather in the United States are now looking to Arizona and California first, and to Florida third.  Many Canadians buy homes in San Diego.

There are no legal restrictions on purchases of U.S. real estate by international buyers. However, International purchases of real estate in the United States raise financing issues for some buyers.  Home loans for non-U.S. residents are available, subject to special guidelines.  A U.S. credit score is required for home loans from most U.S. banks, and many foreign buyers don’t have U.S. credit scores.  When financing issues arise, there are solutions.

U.S. Home Loans for Non-U.S. Citizens

Home loans are available to for non-U.S. citizens looking to buy property in the United States. Morgan Stanley Smith Barney and several other firms offer asset-backed home loans to non-U.S. citizens.  Financial advisers and private mortgage bankers at the major investment firms are great at working with non-U.S. home buyers to find financing solutions.  Portfolio lenders such as BBVA Compass Bank offer home loans to Non-U.S. citizens looking to buy or refinance U.S. real estate. These portfolio lenders have greater flexibility because they don’t have to underwrite their loans to the rigid standards of secondary “investors” (banks).  Of course, many international real estate investors are able to pay cash for their U.S. real estate investments, so home loans are not always an issue.

With San Diego real estate prices way down and interest rates at historic lows, international buyers are moving on the opportunity to buy homes in San Diego and throughout the United States.  This is an important perspective that U.S. residents should keep in mind. When the international investors come out in force to buy real estate, it generally means that investment returns are on the horizon.

For more information about investing in San Diego real estate, call Geoffrey Schiering at (619) 200-7612.

Moving against the tide in the San Diego real estate, Keller Williams Carmel Valley increased San Diego homes sales by 24% in 2011.  The brokerage is betting on continued growth with a million dollar investment in a two-story 10,000 square foot office building at the corner of High Bluff and Del Mar Heights Road in Carmel Valley, zip code 92130.

San Diego, CA – While other San Diego real estate brokers are cutting staff and closing offices, Keller Williams Carmel Valley Realtors are expanding in 2012.  The company is completing a million dollar renovation to the office building on the corner of Del Mar Heights Road, at 12780 High Bluff Drive, San Diego, CA 92130.  The Realtors will be open for business at the new location on February 1, 2012.

The highly upgraded and extremely visible office complex will be home to 198 San Diego real estate agents, and likely more in the near future.  In only six years, Keller Williams Carmel Valley has worked its way from a start-up to a market leader in the North County San Diego real estate market.

“Keller Williams Carmel Valley has grown largely by word of mouth as people hear about the excellent San Diego real estate services that the agents provide.  Now with the new building and signage on the most highly trafficked street in zip code 92130, Keller Williams will become a Carmel Valley real estate icon,” says Realtor Geoffrey Schiering.

San Diego Homes Sales

In 2011 the Keller Williams Carmel Valley Realtors completed 647 sales of homes in San Diego County (433 houses and 214 condominiums and town homes).  This was an increase in volume of 24% over 2010, when the brokerage completed 522 San Diego home sales (321 houses and 201 condos and town homes).  During the same 12-month period, the total volume of San Diego homes sold county-wide actually declined by 2%.

“The San Diego homes sales statistics are a reflection of a larger picture. Keller Williams Realty is growing internationally because the company has an ethical belief system that supports and encourages its agents to build careers worth having and lives worth living. Keller Williams is attracting the best real estate agents in San Diego and in most other markets too,” says Schiering.

Keller Williams is now the second largest real estate brokerage in the United States, and is on track to reach the number one position in the next twelve months. 

It’s no coincidence that the owner of the Keller Williams Carmel Valley office, Chris Heller, has been hired as President of KW Worldwide at Keller Williams Realty International, based in Austin, Texas.  Mr. Heller is charged with expanding the KW franchise to Europe, Asia, Australia, Central America and South America.  And judging by his past success in the San Diego real estate market, the world is going to be seeing a lot of Keller Williams Realty signs with “Sold” signs on top.

About Keller Williams Carmel Valley:  Keller Williams Carmel Valley Realtors provide San Diego real estate services to buyers and sellers of San Diego houses, condos, town homes, and commercial properties. Visit KW online for neighborhood information, market reports, and listings of San Diego homes for sale.

Press Contact:
Geoffrey Schiering

12780 High Bluff, Suite 130

San Diego, CA 92130

realtor@sdrealtypros.com

619-200-7612

San Diego Houses

There were 21,226 San Diego houses sold in the twelve months ending December 29, 2011.  The average sale price for houses in San Diego County was $483,670 for an average three bedroom, two bathroom house with an average of 2,035 square feet of living area.  The average market time was 76 days on market.  Anything less than 90 days is considered a healthy real estate market. The average sale price to list price ratio was 95.6%, so the average buyer is able to negotiate a purchase price only 4.4% below the list price.

San Diego Houses Sold 12 Months Ending December 29, 2011

San Diego Homes Prices

Compare the same twelve month period ending December 29, 2010.  Last year there were 21,143 houses sold, at an average sale price of $516,100 for an average three bedroom, two bathroom house with 2,006 square feet of living area.  So the number of San Diego houses sold in 2011 was up a statistically insignificant 0.4% over the prior year.  The average sale price was down approximately 6%, the average cost per square foot of San Diego houses in 2011 was $234.60 per square foot of living area, as compared to $246.34 per square foot in 2010… a decline of less than 5%.

The number of days required to sell the average San Diego house increased by 10 days, from 66 days in 2009.  However, both the slight decline in sale prices and the slight increase in market times can likely be attributed to an increase in the number of short sales in San Diego between 2010 and 2011.  There were 4,072 houses sold in short sales in 2010 compared to 4,913 San Diego short sales in 2011.  Short sales are sales in which the home seller will net less from the sale of their home than they owe to the bank.  The term Short Sale derives from the fact that the bank is asked to forgive the portion of the loan which the home seller is “short” on funds.  Due to the bank involvement, short sales take significantly longer to complete than traditional sales.  The average number of days on market for short sales of San Diego homes in 2011 was 150 days.

San Diego Houses Sold 12 Months Ending December 29, 2010

Overall there was little change in the San Diego real estate market between 2010 and 2011.  Home buyers are seeing value at current prices, and the number of houses sold in San Diego increased in the past year, with prices down only slightly.  Bargain hunters are snapping up great deals on San Diego short sales.  Moving forward, outlook is very similar for 2012.  With prices down and interest rates low, it’s a great time to buy a home in San Diego.

We pulled four representative San Diego real estate markets and compared the past thirty days with the same period in 2007. As you see below, prices of San Diego homes are down thirty to forty percent from their highs in 2007.  Yet the number of San Diego homes sold has increased substantially, twenty to forty percent, indicating strong demand at current prices.  San Diego luxury homes are also selling, albeit at reduced prices from motivated home owners.  Approximately 30% of the homes sold in the past month were San Diego foreclosures.  The inventory of foreclosed homes is largest in South Bay and in East County.

The “DOM” is “Days On Market”.  The average time it takes to sell a home in the current market is actually less than the 70 to 90 days stated below.  The 70-90 DOM number includes Short-Sales, and bank approval for San Diego short sales requires an about six months.  The non-distressed properties that are priced correctly are actually selling very quickly.  In general, the San Diego real estate market has been moderately active.  Many are hoping to see increased activity in the San Diego luxury homes sector in the coming months.

San Diego North County Inland  (October 8, 2011 to November 7, 2011) (256 Sales)

Compare same region during same time frame in 2007  (191 Sales):

The Average Sale Price is DOWN 33.4% and the number of sales is UP 34%.  Strong demand at current prices.

 San Diego North County Coastal (October 8, 2011 to November 7, 2011) (373 Sales)

Compare same region during same time frame in 2007  (316 Sales):

The Average Sale Price is DOWN 20.2% and the number of sales is UP 18%.  Strong demand at current prices.

San Diego Metro Uptown (October 8, 2011 to November 7, 2011) (203 Sales):

Compare same region during same time frame in 2007  (145 Sales):

The Average Sale Price is DOWN 24.2% and the number of sales is UP 40%.  Strong demand at current prices.

San Diego South Coastal (October 8, 2011 to November 7, 2011) (95 Sales):

Compare same region during same time frame in 2007  (116 Sales):

The Average Sale Price is DOWN 35.9% and the number of sales is UP 18%.  Strong demand at current prices.

Keller Williams Realty is the leading San Diego real estate brokerage in North County. We specialize in San Diego luxury homes, beach homes, and estate properties. For more information, contact the Keller Williams Realty experts at (800) 955-6463. Our real estate agents will represent clients with residential and commercial real estate transactions.

The sellers of this home have asked us to begin marketing it for sale, but they didn’t want to put it on the MLS just yet.  They’d like for us to find a qualified buyer without having all the foot traffic through their home.  We’ll be arranging private tours, so let us know if you are interested!  There aren’t many single-story Solana Beach homes for sale, and particularly few single-story houses with great views!  This is prime San Diego real estate!

There is a golf cart in the garage, and it can be included with the sale.  Imagine yourself cruising down the street to the country club, to play a quick round of golf, a game of tennis, or just for a dip in the pool!  Enjoy life in San Diego to the fullest!  Just a short drive west to the Solana Beach sand and ocean playground!

What do you think about this YouTube video?  It’s different than other off-the-shelf video tours of homes for sale in North County San Diego.  I’m personally tired of the canned variety of video tours!  Contact your San Diego real estate professionals at Keller Williams Realty for information about this and other homes for sale in Solana Beach.

Click here to view the embedded video.

Geoff Schiering with Josh Altman of Bravo TV's "Million Dollar Listing"

For the past 12 years the San Diego Real Estate Pros, Geoff and Anne-Marie Schiering at Keller Williams Realty, have made it our business to know the right San Diego Realtors.  Our relationships are based upon mutual trust and respect. When we list San Diego luxury homes for sale, we immediately contact the top real estate agents in Southern California to let them know the features and benefits of the properties we have listed.  And they do the same for us.  These relationships allow us to bring you information about the best homes at the best prices.  The top San Diego Realtors move in the same circles.  And there is a reason for that.  We need each other. Especially when selling San Diego luxury homes.

Geoff Schiering with Josh Flagg of Bravo TV's "Million Dollar Listing"

If you are considering buying or selling San Diego luxury homes or other San Diego real estate, call us at (800) 955-6463 or visit us on the web at www.SDRealtyPros.com.  Let us explain how social networking and telemarketing to other powerful San Diego real estate professionals in the area brings proven results.  We consistently sell homes for more money and in less time than almost any other San Diego Realtors.

Whether you need to sell San Diego luxury homes or more modest houses or condominiums, when you go with The Schiering Team at Keller Williams, the San Diego Real Estate professionals, every listing is a “Million Dollar Listing!”

If you’ve been considering buying a home in San Diego, there is a good reason to act soon. The ever-popular FHA home loans which are available for houses and condos in San Diego will soon carry higher fees.  FHA loans are popular because they allow buyers to purchase homes with as little as 3.5% down payment on loan amounts up to $697,500 in San Diego County.  Avoid the higher fees by getting into a contract BEFORE April 18, 2011.

Why the higher fees?  The Federal Housing Administration (FHA) is increasing the annual mortgage insurance premiums (paid monthly) on FHA home loans. The new rates will apply to any new FHA home loans originated after April 17, 2011. In other words, FHA home loans will become more expensive starting on Monday, April 18, 2011. But, practically speaking, since very few mortgage lenders are available to open new FHA loan case assignments on the weekends, you need to be in escrow on your home purchase by April 15, 2011.

How much will you save by buying your San Diego house or condo by April 15?

On a $200k loan amount: $41.66 per mo savings
On a $300k loan amount: $62.50 per mo savings
On a $400k loan amount: $83.33 per mo savings
On a $500k loan amount: $104.17 per mo savings

That means a $400,000 home loan will cost an additional $1,000.00 per year for the life of the loan. That’s $30,000 over 30 years!

So if you’ve been on the fence about buying, now would be the time to act. Contact the San Diego Real Estate Pro’s at 1-800-955-6463 for immediate service. We’ll help you find the perfect house or condo and help you negotiate a great price.

Remember, you must find a home, write the offer, and have the offer accepted by April 15, 2011 to avoid substantial increases on the FHA loan payments.

Excellent condition. Private back yard with view. Highly rated elementary school within walking distance.
And, best of all, the price has been SLASHED to $549,000!!!

Awesome House for Sale in Rancho Penasquitos – San Diego CA 92129

Overview Maps Photos Description 14469 JANAL WAY : RANCHO PENASQUITOS HOMES FOR SALE Neighborhood

$549,000 Single Family Home Main Features 4 Bedrooms 3 Bathrooms Interior: 2561 sqft Location 14469 Janal Way Rancho Penasquitos, CA 92129 USA To get updates on open home dates and other property events, please click the “Like” button below:

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Anne-Marie & Geoffrey Schiering: The Schiering Team at Keller Williams Realty San Diego Real Estate Professionals at Keller Williams (619) 200-7612 homes@sdrealtypros.com http://www.sdrealtypros.com Listed by: Keller Williams Carmel Valley

Our recent listings Single Family Residential for $549,000 in Rancho Penasquitos, CA Great Value in Carmel Valley The Crosby At Rancho Santa Fe – Premier Luxury Home Building Site – San Diego, CA Del Sur Beauty! 4 Bedrooms 2,570 Sq.Ft. LIKE NEW! Crosby Ranch at Rancho Santa Fe. San Diego Real Estate Deal of the Week! $879,000+ Subscribe to our listing feed

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Here are the basics for short sales:

The list price must be set by either the seller or the listing agent.

This does not necessarily mean this is the purchase price you have to offer or the price the bank will accept. The bank/lender has not necessarily approved this price. Sometimes, we might see a listing advertised as an “Approved” short sale. This means the lender “approved” the short sale to another buyer (with other qualifications) and when you see this, you know that the first buyer walked away – they got tired of waiting or found another property to buy. You, the new buyer, will have to submit a new offer and the approval process starts again, even if the sale price is the same as the first buyer’s offer. However, it usually will not take as long to get a new approval as it did the first time around.

The seller’s agent will often list the property at or a little below market value. Partly to “season” the marketing – ultimately the lender will want to know that a best effort to get a good price has been made. The sellers agent is also protecting her client as the lender may release the mortgage but not the underlying debt – in other words, depending on the type of loan the seller has (whether it is the original loan when they purchased the home or if it was a refinance) the lender could pursue the seller for the deficiency later, so the seller may be advised to minimize the short.

This is how a short sale works:

When the listing agent gets an offer on the property, she submits it to the bank along with a lengthy package explaining the sellers case as to why the lender should approve the sale and take a loss on the property. This includes the sellers financials (tax records, paystubs, bank statements, etc) and hardship letter, a comparative market analysis, photos of the property, and an estimate of what the carrying costs of the property would be to the lender (utilities, taxes, maintenance, etc.).

After 30-45 days, and this timeline depends on the lender – some are quick, some take months – the lender will review the short sale package and see if they are missing any documents. If the file is complete, they will make a decision as to whether they will consider the short sale offer. Since the lenders are backed up with these short sale files it usually takes a month or two before they get to that file. If the file is missing anything, then it is set aside and may go to the bottom of the stack, the agent has to resubmit missing paperwork and the waiting begins again.

If the file is complete and the lender wants to consider the sale, the lender will then send someone out to do a BPO (Broker Price Opinion) or an appraisal so they are comfortable with what they think the value of the home is.

If the loan has mortgage insurance on it, the lender may decide to wait until they receive the insurance payment before moving forward – this could be a long time and the lender does not communicate their reasons for waiting to make a decision to anyone. If the lender thinks they can do better (get more money) by foreclosing then they will ignore the short sale offer and proceed with the foreclosure process and schedule a trustees sale in accordance with the foreclosure timelines.

If the lender thinks the costs associated with a foreclosure (attorney fees, eviction fees, care and maintenance of the property, etc.) are not in their favor, then they will consider the short sale offer. They usually come back with an approved amount. It may be what the buyer has submitted, it may be more. Sometimes, if there are delinquent taxes or other delinquent costs, then the lender may ask the buyer to pay this. Sometimes if the seller has a second loan, then the 1st loan may ask the buyer to pitch in a few thousand to make the 2nd loan happy and release their mortgage. We see this often with short sale condos – the lender asks the buyer to pay past HOA dues, or contribute to the second loan.

The “approval” on a short sale is in the form of a letter to the seller outlining the terms of their approval. The seller decides at that time whether they want to continue with the sale of the property and is not obligated to take the lenders terms or continue with the sale to the buyer.

As you can see, processing short sales can be a bit complicated and the timeline is very uncertain. Because there are so many uncertainties, most buyers want a large discount on the price to compensate for their waiting and for the uncertainty of whether the short sale will ever get approved at all. Supply and demand laws also apply.

Foreclosed homes in San Diego can be purchased at trustees sales. These are auctions that are held on the steps of the county courthouse. Buyers at foreclosure auctions can realize the greatest savings and upside potential. But the auction process is generally too risky and cumbersome for individual home owners. Typical buyers at trustee sales are investment companies and partnerships that intend to fix and flip the homes at a profit. Buyers must be prepared to thoroughly investigate the condition of the properties prior to the auction, and monitor the properties right up to the time that the gavel falls. And payment at the auctions must be made by cashier checks at the close of the auction. This requires a degree of liquidity that most individuals do not have.

Investors who buy homes at San Diego foreclosure auctions frequently intend to make improvements to the property and offer the homes for immediate resale. But there are potential pitfalls to avoid with flipping properties. First, even if a buyer is willing to buy at the new price, appraisers may be skeptical of the higher sale price. A low appraisal can make it impossible for the next buyer to get a loan. So the listing agent of the property must be prepared with information to support the higher value. Data on recent sales of comparable homes as well as receipts for improvements to the property prior to the flip are critical in this regard.

Also in regard to the new buyer’s loan, it makes a difference whether the new loan is conventional (20% down payment) or an FHA loan. Until recently, it was nearly impossible for a buyer to get an FHA loan on a property that had been purchased at foreclosure and flipped in less than 90 days. More recent FHA guidelines allow short-term flips, but competent handling by an experienced loan officer is important. For properties that are being flipped in less than 90 days, questions include: 1) As a flip, was it a true conversion with structural, internal repairs, and upgrades, or was it merely a “coat of paint” conversion? 2) Is the agreed upon purchase price more than 20% greater than the investor’s purchase value? 3) Has the property been bought/sold more than once during the 90-day period?

For FHA loans on properties that are being flipped in less than 90 days, if the purchase price is 20% or higher than the prior purchase price, FHA will require two appraisals by FHA appraisers. FHA will also require a home inspection by an FHA inspector selected by the lender (not by the buyer). If there has been more than one sale/purchase in the 90-day period, the FHA is unlikely to approve the loan. Otherwise, subject to the two satisfactory FHA appraisals and the FHA physical inspection, an FHA loan is likely to be approved.

Contact the San Diego real estate professionals, the Schiering Team at Keller Williams Realty, for additional information about flipping San Diego foreclosure properties.

Copyright © By Geoffrey Schiering 2010*Flipping San Diego Foreclosures*

Geoffrey Schiering (J.D./M.B.A. Broker/Realtor). San Diego homes sale leader since 1999. Specializing in San Diego luxury homes transactions in La Jolla, Del Mar, Carmel Valley and Rancho Santa Fe. The Schiering Team provides world-class service to buyers and sellers of houses, condos, and investment properties throughout San Diego County. Call 619-200-7612 or visit http://www.sdrealtypros.com/