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Jan. 27, 2024

Should I Purchase Investment Real Estate on the Central Coast?


Should I purchase investment real estate on the central coast

Have you been asking yourself "Should I buy investment real estate on the Central Coast?  

 

Below are some tips from our Property Management Insiders on the Wine Country Team:

 

Real Estate continues to be in high demand across the United States. Investors are purchasing many of the available properties in our market.  This creates profitable opportunities for themselves, with short and long-term rentals. One of the most lucrative markets in the U.S is right here in our own backyard - the Central Coast of California. San Luis Obispo County and Monterey County both make the list for top in-demand real estate markets. 

Do you have questions or interest about investment opportunities specific to the central coast?

When it comes to Central Coast real estate, we are local market experts.  There are many local and state regulations you should be aware of when it comes to owning rentals, and we can help you or find the right people to help you succeed in the long-term rental market.

The real estate market here on the Central Coast of California has been on an upswing for over a decade. Purchasing rental property as an investor can be a successful way to grow your real estate portfolio and make an income, but only if you’re partnering with the right team.

When investing in rental properties on the central coast of San Luis Obispo County, there are a few important items to always keep in mind. Here are our top items to consider:

Choosing a prospective rental property


5545 Almond Dr Templeton
      14341 El Camino Real, Atascadero            1018 Turtle Creek, Paso Robles

2 homes on a 50+/- Acre           Manuf. Home on 1.9+/- acres.            2 bed 2 bath home in
Templeton, Ca. $1,595,000         Atascadero, CA $630,000.             Paso Robles, Ca $419,000

 

Investing in real estate is not for the faint of heart. Make sure you have both the financial ability and the patience before you start your search. Typically, there are real estate listings that would make good rentals.  You are not the only investor who is searching for prospective home sales for rental property. Be prepared to compete with other investors, especially for the better homes (good location, good condition, etc). If you need to obtain a loan for your purchase, get pre-qualified before you start shopping.  This enables you to be more knowledgeable about the mortgage rates and payment amount.  

Be realistic – most properties are going to take work! Do you have the finances available to carry a vacant property for a month or longer while you prepare it for rent? If you can manage the carrying costs to fix up a home, you can sometimes negotiate a better purchase price on a property that needs some renovations. Buying at a lower price will also keep your property taxes lower.  The chances of finding a new home that is move in ready are pretty slim due to the limited new construction in the communities of Paso Robles, Pismo Beach, Morro Bay, Avila Beach and other cities around the central coast.  

When considering a rental property, details like square feet or amenities such as a swimming pool or a modern kitchen may not be as important in your search compared to when you are searching for your own primary residence. Keep in mind the overall idea is simplicity and profitability.

Once you have successfully purchased a property and prepared it for the rental market, it is important to have realistic and attainable goals. Research the local rental market – what are properties within the neighborhood renting for? Certain neighborhoods command higher prices than others. Are there are lot of vacant homes within the area? 

Typically the coastal towns along the California Coast command a higher rent due to their proximity to the pacific ocean. Coastal homes are also more to purchase, especially if they have ocean views or are ocean-side parcels.  Inland properties around Paso Robles and Atascadero are typically more affordable when compared to the coastal homes. 

Choosing the right tenants for your rental property

Choosing the right tenants for your rental proeprty

Keeping your property occupied should be one of your highest priorities, especially in a high-turnover market like the Central Coast real estate market. It is of utmost importance to find a high quality, long term tenant.  

How do you find such a tenant? Our biggest piece of advice would be to invest in a local, reputable, property manager. Property Managers are skilled at screening tenants, know what to look for, and can spot red flags that may require further reference checks. Property Managers are also required to have an active CA DRE Broker’s license, and must have a current knowledge of CA tenant laws.  Since the market on the Central Coast is highly competitive, typically there are many applicants for each property. Make sure you’re choosing tenants that will make your life easier, not more stressful. Having a third party take over the responsibilities of advertising, screening tenants, showing your property, and creating the rental agreements allows you more time to focus on your own career or personal life. 

Choosing the right Property Manager for your rental property

Choosing the right property manager for your rental property

Ask your real estate agent. Often, your real estate agent will have a property manager they like to work with. They can provide you with names and contact information for local brokers who offer property management services.  If the property was a rental, the listing agent might have the contact information for the current property manager.  If the property appears to be well maintained, you might want to interview the current management company. 

Search online. Look at local rental ads and see who others in your neighborhood are using. Are you impressed with their ads? Do the photos make the property look appealing? Are the properties in good condition? 

Interview your top choices. Give them a call, ask questions. Are they friendly? Did they return your phone call? You want to work with someone who is going to respond to you in a timely manner.  How many years of experience do they have?  

A property manager works for you, which means they should adapt to your needs. Every investor has different needs. Sometimes a property manager just handles the screening and application process. Other times, they handle everything including yard maintenance, repairs, paying HOA’s, depositing owners monthly incomes, and more. The property manager team you choose should be reliable sources for you as well as your tenant.  

Property owners need to know the laws

Property owners need to know the laws

Every state has different laws when it comes to buying, selling, or renting real property. Every city or county may have additional laws on top of the state laws. Even some HOA’s (Homeowners Association) and CC&R’s (Covenants, Conditions and Restrictions) may have restrictions regarding rentals. While we highly recommend you should do your own research and ask the advice of your property management company, it also may be in your best interest to consult with a real estate attorney regarding your rights and tenants’ rights. You should have an understanding of what you are legally required to do as a property owner.  

Some California real estate laws can be surprising and very specific. It’s well worth your time to consult an expert early on so you don’t face unanticipated legal fees down the line. Property Managers and real estate agents are not Real Estate Attorneys. Although typically knowledgeable, they are not experts in Real Estate law. 

It is a wise choice to partner up with a local property management company that’s familiar with the local market and has experience operating in your specific area. Making this connection will help your business grow faster, keep your properties occupied, and bring higher returns on your investments. Investing in rental properties can be a successful business venture for the educated buyer creating passive income for years to come. However, it is important to do your homework and ask questions before taking the leap into the world of rental property owners.

A good property manager will comply with the principles of the fair housing act of 1968, equal opportunity act, as well as verify the accuracy of all information utilized when marketing your rental property (or properties). 

About the Wine Country Team

The Wine Country Team

We are a team of real estate agents who also offer property management and appraisal services located in Paso Robles, California.  Although our office is located in Paso Robles, we list and sell properties throughout San Luis Obispo County and Southern Monterey County.  We choose to manage properties throughout the communities of Paso Robles, Templeton, Atascadero, Heritage Ranch, and San Miguel.  Our team primarily manages single family homes and single family homes on small acre parcels. Depending on the scenario, we do take on select ranch style, vineyard, commercial, and agricultural properties.  

 

Our Appraisers complete various types of appraisal reports through Northern San Luis Obispo County and Southern Monterey County.    

 

We represent buyers and sellers of single family homes, homes on land, as well as country retreats, larger ranches, agricultural land, and commercial properties.  We advertise all of our listed properties in the Central Coast of California Regional Multiple Listing Service. Our team strives to make the entire process, from purchasing your rental property to managing your rental as simple as possible. 

 

Posted in Homeownership Tips
Jan. 9, 2024

The 2023 North SLO County Real Estate Market Summary

Inflation and a floundering economy have brought higher interest rates which has cooled both buyer demand and seller listing activity. When you combine higher interest rates and continuing rising prices, we get a significant adverse effect on affordability thereby softening demand. Would be sellers are reluctant to list their homes that have a lower interest rate mortgage, then buy a home at a perceived inflated price with a new, higher interest rate mortgage. Would be sellers are also concerned that they won't be able to find their replacement property because of the limited inventory. These factors are keeping would be sellers from entering the market thereby keeping inventory levels very low. Kind of a conundrum. The following 2 graphs illustrate the number of sales on a quarterly basis and the rate of year over year change. The 4th quarter 2023 number of sales, 218, reverses the recent downward trend showing a slight increase of 2% over the same quarter 2022. I believe that fewer sales are a result of softening demand and the fact that we have fewer homes available to sell. Velocity is running flat. Market time is climbing, multiple offers are fewer in number, properties are realizing more downward price adjustments and sale price to list price is softening.

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The 4th quarter 2023 median sale price comes in at $717,500, up 6% from the 4th quarter 2022, nearly gaining back the value lost in the first 2 quarters of 2023. I don't foresee any crash in values because of the extremely limited inventory and high desirability of the Central Coast region. Property value appreciation is predicted to continue to climb through 2024.

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The absorption rate graph above still shows we're in a sellers' market but what's apparent is we were in a very tight sellers' market as we entered 2022, eased up over the first half of 2023, began to tighten again through the last half of last year, and showing signs of tightening as we enter the new year.

The graph below shares 8 industry organizations' forecasts for 2024 prices. I believe prices in our micro market will realize slight gains early in the year but will accelerate later in the year as interest rates fall and the velocity increases.

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Prices nationally are forecast to rise over the next 5 years. If you're a buyer considering getting into the market, or a seller who wants or needs to make a move, don't let the stubborn higher interest rates hold you back. Prices are going to continue to rise so in that regard buying sooner is better. If you find the right home - go get it! Refi is a great option if rates go down significantly in the future.

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Interest rates are trending downward. If this trend continues, it will stimulate activity on both the selling and buying sides of residential real estate. I'm looking forward to a brisk 2024 with more listings coming on market and more buyers entering the market. There is plenty of pent-up demand on both sides of the equation.

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The number of new listings is up slightly when compared to the 4th quarter of 2022.

The median list price of new listings is up 5.8% over the same quarter of 2022.

 

This analysis is written, tracked and shared by our friend and associate, Fred Bruen.  Thank you Fred for your hard work and great analysis. 

Posted in Market Updates
Nov. 12, 2023

Approximately 900 Acre Ranch along Carmel Valley Road in California

Carmel Valley Road Photo

Reed Ranch, Carmel Valley Road, Greenfield

 

This beautiful Monterey County ranch is roughly 900-acres and offers predominantly undisturbed lands nestled near amongst the foothills of the Santa Lucia Mountains. Enjoy easy access from Monterey Bay, San Francisco and Silicon Valley. The land begins along the prestigious Carmel Valley Road, rolling south touching the Los Padres National Forest.  Just imagine the potential outdoor activities on this stunning slice of California history, do I hear trail rides, anyone?  The land has been owned by the same family for generations and has been a place for many outdoor family activities.  Imagine family trips to the ranch with nightly fireside s'mores around fire pits. 

 

House Corrals

Improvements

The improvements are minimal and include an old redwood cabin, in desperate need of upgrading, and a set of cattle corrals. These structures are located near Carmel Valley Road with water and power. The gently rolling terrain and moderate climate make this land the best place for an organic garden or small orchard. There are numerous areas around the ranch that would be wonderful campsites and potential homesites.  Many of the hill tops offer stunning views of the Arroyo Seco Valley as well as the two seasonal creeks on the property.  

 

Reed Ranch Land Land at sunset

The Land

The ranch has always been used for cattle grazing and recreation. Imagine springtime hikes, dirt bikes or horseback riding when the flowers are blooming and the creeks are running, just smell the fresh air.  There is a wide variety, and abundance, of wildlife on the ranch, including deer, wild pigs, quail, bobcats, coyotes, and wild turkeys. Sometimes you can spot a hawk or bald eagle flying over head. The varied terrain offers numerous animal-spotting locations throughout the ranch. The property is adjacent to thousands of acres of BLM Land making it a magnificent recreational retreat with terrain that is comprised of open rolling valley oak grassland, dense covered blue oak woodlands, large pine trees and live oaks. The ranch has a good perimeter fence with cross fencing separating the lower part of the ranch from the upper part. Imagine creating your own, private coastal recreation trail for you are your friends or loved ones to use.  

 

The ranch is being offered for sale in it's entirely, however there are approximately 11 underlying parcels.  As much as the family would like the ranch to be preserved, the next owner could break it up and sell it in 11 different estates or retreat properties. The possibilities are endless. 

 

Water for Cattle

The Water

There is an abundance of water throughout the ranch. The lower portion of the ranch is supplied by a domestic well with a 5000-gallon water tank and two troughs.  The two seasonal creeks often have water all year-round.  The upper portion of the ranch has 2 springs and several ponds. One spring is developed with a holding tank and water trough for cattle and wildlife.  

 

Reed Ranch Aerial Map

Possible Uses

The ranch will typically feed 25 to 35 cow/calf pairs year-round should the next owner continue the cattle grazing.  Grazing offers a sustainable method of rangeland management that aids in controlling brush and grasses with minimal human disturbance.  Many of the land conservation organizations se the benefit of proper rangeland management and allow local ranchers to graze the land.   If raising cattle is not what you are after, this ranch is perfect for many recreational uses such as hunting, hiking, developing ranchettes.  Preserving the land is certainly the most desirable to the sellers as well as the neighbors, however, one of the top ways to maximize the underlying parcels would be to develop this ranch into estate homes on land.  

 

 

Location Map

The Location

The ranch is conveniently located between Highway 101 and Highway 1. The City of Greenfield, Carmel Valley Village and the Salinas Valley are a short, scenic drive away.  The well maintained, paved roads, offer easy access to San Francisco, Silicon Valley, Monterey Bay, Carmel-By-The-Sea, and the acclaimed Monterey Wine Country.  Enjoy the beauty that Monterey County has to offer by taking scenic drives to the quaint communities, tasting rooms and world renowned restaurants and great places the area has to offer.   If wish to expand your horizons, the Paso Robles Wine Country is a short hour drive south offering an additional 200+/- wineries, tasting rooms and Michelin Star restaurants. 

 

Looking to play an 18-hole golf course?  Just about an hour away from the property is the Monterey Peninsula home to the Monterey Bay Aquarium, Cannery Row and over 22 world class golf courses, including legendary courses such as Cypress Point, Pebble Beach, Monterey Peninsula - Shore, Monterey Peninsula - Dune, Spyglass Hill, Carmel Valley Ranch Golf Course among others.  A few of the golf courses are not open to the public, but secret spots for members only.    

 

This ranch is in an ideal location for driving or flying. Fly in and out of the Monterey Regional Airport which offers commercial flights as well as limited semi private flights.  The San Francisco International airport is less than three hours north of the property and San Jose International airport is approximately 2 hours away.  Within a few hours you can be anywhere in the united states! 

 

Tours

Have heard enough?  Let's set a date for a tour of the property.  Buyer's do need to give us 24-48 hours notice to coordinate access for qualified buyers.  Once the showing is coordinated, a member of our team would be happy to show you around the property.

 

Team banner

Posted in Feature Properties
Nov. 8, 2023

Prevent Foreclosure without Filing Bankruptcy

Can you prevent foreclosure without filing bankruptcy?

 

Are you struggling to pay your bills?  Have you asked yourself, can I prevent foreclosure without filing bankruptcy?  The short answer is maybe.  Mortgage lenders work on a timeline, especially with regards to foreclosure proceedings.  If you are just beginning to struggle to pay your mortgage, it is best to start looking at your options.  The first thing I would like to express is be proactive.  Do not wait until you get the notice of the foreclosure sale to start trying to prevent the sale.  If you wait too long to make decisions, to make calls, to ask for help, you can run out of time and fail to stop the foreclosure sale.  If you do not want to read this post and wish to speak with someone, our team can offer a confidential, free consultation.  Our team genuinely wants to help inform property owner of their options.  If you do not already have a relationship with one of our team members, please feel free to give me a call- my name is Alicia DiGrazia and have spent approximalty half of my career working with distressed properties. 

 

This post is not to be construed as legal advice.  This is meant to remind you that you do have options. If you are possibly facing foreclosure action for past-due mortgage payments or if you are current on your mortgage payments, but are struggling to make ends meet and feel like you might fall behind soon, give us a call. 

 

What is a foreclosure?Foreclosure?  What is it?

Let's start at the beginning. What is a foreclosure?  When a homeowner begins missing payments on their mortgage the mortgage lender (or lienholder) can begin the process to take the home back.  Then, the bank sells the house to recover the loan balance, sometimes more if there is additional equity in the home.  That's the simplified version of a foreclosure.  This process takes time.  If you are proactive, you have a better chance of working out of a solution with the mortgage lender or selling the house while the market is still fairly good. 

 

How long is the process?How Long is the foreclosure process?

The basic foreclosure process in California is: After 120 days of miss mortgage payments. The bank can file a notice of default (NOD), also called the first notice of foreclosure.  This foreclosure notice is recorded and a copy is mailed to the homeowner.  By this point, the mortgage lender has already sent multiple notices letting you know the payments are late and they are going to start the foreclosure process if you don't bring the loan current by a certain date.  Once this notice of default (NOD) is filed, the homeowner has 90 days to bring the mortgage current before the bank has the right to file a notice of sale (NOT which stands for notice of trustee's sale), also called the second notice of foreclosure.  This document is also recorded and mailed to the homeowner.  The homeowner has 30 days to bring the payments current before the bank can send the property to trustees sale.  When the trustees sale (also known as foreclosure sale) takes place. The bank sells the property to the highest bidder "at the courthouse steps".  Following COVID many counties not offer remote bidding.   If the home is not sold at the trustee's sale, it becomes Real Estate Owned by the bank, also known as REO.  Once the property becomes an REO, the investor (sometimes the mortgage lender is not the investor on the loan) begins the eviction process if the property happens to be occupied.  If the property is vacant, they begin preparing the property for sale. 

 

The mortgage lender is required to reach out to the homeowner and provide options and phone numbers for homeowners to call to workout a solution before they start the foreclosure process.  The bank and loan servicer does not want to take your home. They want you to resume your normal monthly mortgage payments and prefer you pay the late payments or workout a repayment plan for the missed payments.  

 

overwhelmed

Done reading already? Overwhelmed?

I get it, you have a lot on your mind at the moment, this is stressful.  This post is localized to California, however some of the information is likely to apply wherever you are reading this post.  If you have looked at our website, you can see that we are a real estate company located in Paso Robles, California.  I want to take a moment and say that we can offer a free consultation if you are stressed and wish to speak with someone who can and will to discuss options with you.  If you are located in California, and you do not already have a relationship with one of our team members; please feel free to give me a call- My name is Alicia DiGrazia and have is spent nearly half of my career working with distressed properties. If you have a relationship with one of our team members, please give them a call.  

 

OptionsWhat are your options to prevent foreclosure?

If you reach out to your mortgage lender and/or our team early enough in the process, chances are, that you will be able to find a solution to allow you to stay in the home.  These options do not come without consequences and you should obtain legal advice from a qualified real estate attorney before making any final decisions. Knowing your options will allow you to make the best decisions for your family and financial situation.  It is common for those who are struggling to pay their mortgage, to also be struggling with credit card debt, medical debt, auto loans, and/or debt collectors. You likely just desire to make all of the phone calls stop.  

 

There are a few options the mortgage lender can offer, they are listed below and I will break them down a little more in later sections. The first decision is to decide if you want to stay in your home or move. 

 

Options to stay in the house~

1- Refinance

2- Forbearance

3- Reinstatement

4- Repayment Plan

5- Payment Deferral

6- Loan Modification

7- Bankruptcy

 

Options to leave the house~

1- Selling 

2- Short sale 

3- Deed-in-lieu 

4- Assumption 

 

Options to stay in your home

 

Refinance your mortgage

If you are current on your mortgage payments and have enough equity, you can refinance your home.  This was a great option for 2019-2022, however interest rates have started to increase significantly in late 2022, and further increased in 2023.  Be really careful of the loan programs out there, that offer low teaser rates. The last thing you want is to refinance today and get hit with a higher payment in a year or two down the road and find yourself back in the same problematic situation.

 

Forbearance

Forbearance is a temporary postponement or reduction of loan payments.  This is a short-term option and is not automatic, the lender has to agree to this option.  Don't just stop making your payments, or you could trigger the foreclosure process.  You must reach out to your mortgage lender and be able to provide proof of your financial hardship. If forbearance is approved you must comply with all of your mortgage lenders forbearance requirements, or risk triggering the foreclosure process. There is a chance, if approved, your mortgage payments could increase, (often temporarily), after the forbearance period ends. This is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments (when your financial situation stabilizes).  

 

Reinstatement

Reinstatement is the simplest resolution considering it entails paying off the delinquent amount and resume regular loan payments. This only makes sense if you are able to make a lump sum payment by a specified date. 

 

Repayment Plan

Repayment plans typically set up a schedule to repay the missed payments and bring the loan current over a 6 to 12 month period.  This often adds a portion of the overdue amount to each monthly payment.   This is a good option if you have recovered from your hardship and are able to afford the monthly payment and a little more to cover past-due amount.  

 

Payment Deferral

Payment Deferral allows you to defer up to two months of missed payments to the end of you mortgage term without accruing any additional interest or late fees.  Ask your mortgage lender if they offer payment deferral.  If you have overcome your hardship, but you are unable to afford the reinstatement or repayment plan options the payment deferral maybe be a good option for you.  This will allow you to resume your pre-hardship monthly mortgage payment. 

 

Loan Modification

A loan modification is a change made to the terms of an existing loan by the lender.  This may involve a reduction in the interest rate, adjust the repayment plan (likely extend the length of the repayment), offer a different type of loan or a combination of the options.  Be prepared to submit tax returns, income documentation and letters regarding your hardship.  Loan modifications often take time, so do not wait until the notice of default is filed to reach out for help.  Loan modification, if approved, is often a long term option for borrowers experiencing financial hardship or loss of income.  Applying for the loan modification does not mean the foreclosure process has stopped.  In move cases it has not.  During the last recession I met many homeowners who were waiting for a response to their loan modification and lost their homes. 

 

Bankruptcy

Sometimes, bankruptcy is the best option. If you have quite a bit of credit card debt (also known as unsecured debt) and medical bills in addition to your mortgage debt, bankruptcy might be a good option. Although humbling, bankruptcy can, in some cases, stall or stop a foreclosure and offer you a clean slate, financially speaking.  Obtain legal advice from a qualified bankruptcy lawyer in your state if you believe this could be a good option for your situation. There are multiple options and you will want to work with a qualified bankruptcy attorney to select the type of bankruptcy that is best for your situation. The bankruptcy process includes a bankruptcy filing and going to bankruptcy court and does take some time. Again, often you can use bankruptcy stop foreclosure, and give you time to workout a plan.  Using an experienced bankruptcy attorney could prove to be your best friend through the bankruptcy process. 

 

The purpose of this post is to remind you that you do have options. If you are possibly facing foreclosure action due to past-due mortgage payments or if you are current on your mortgage payments, but are struggling to make ends meet. And feel like you might fall behind soon. Feel free to give us a call. We are not a tax attorney or financial advisors, nothing in this post should be construed as legal advice.  But we are knowledgeable, trustworthy and keep your situation in the strictest confidentiality. 

 

Option to leave your home

 

Selling your home

Selling your home and paying off the debts is always an option and sometimes one of the best ways to offer debt relief and improve your financial situation.  Many homeowners have equity and can pay off the mortgage lender (or lenders) and often pay off medical debt, credit card debt, auto loans and other outstanding debts, depending on how much equity is in the home.  There is an inventory shortage in many markets, especially here in San Luis Obispo County California.  Although many homes are not selling within the first week, if priced correctly, they are selling within the first 30 days of hitting the market.  Some escrow companies will allow you to submit credit cards (statements) and auto loans and medical bills to be paid off when the house closes to help reduce your debt with the equity in your house if there is enough money.  Ask your escrow officer if they offer this service. Often this is the fastest and simplest solution to obtaining long term and much-needed relief to financial challenges. 

 

Short Sale

In this situations where you do not have enough equity in your home to pay off the mortgage lender, (or mortgage lenders) you will need to do a Short Sale.  This means selling the house for less than what is owed on it.  The bank will require you to submit financial documents and a letter of hardship.  Short Sales have to be approved by the bank and the foreclosure process will not stop while waiting for short sale approval. Again, do not wait until the last minute to choose this option, short sales take time.  Often a mortgage lender has a short sale packet on their website that you can download.  This enables you and your realtor to fill out and submit the required documentation to the lender before putting your home on the market.  Often a mortgage lender offers pre-approved short sales which enable you to go through the short sale process before putting the house on the market.  If your mortgage lender does offer pre-approved short sales, go through the process.  Pre-approved short sales bring the home onto the market at a price already approved by the mortgage lender and it expedites the entire process. This is the second best solution to obtaining long term and much-needed relief to financial struggles. Although it often does not include other debt, you can create a plan of attack to pay off any outstanding debt you may have. Check out this blog post here for some simple solutions. 

 

Deed-in-lieu of Foreclosure

Another option is a Deed-in-lieu of foreclosure.  A deed-in-lieu of foreclosure sale means you sign the title of the house over to the bank and you move out.  There is still damage to your credit but it is not as bad as if you were to let the home go through the foreclosure process. You will have to move out of the house but you may be able to negotiate the timing of the move. 

 

Loan Assumptions

Loan Assumption.  An assumption is where someone else takes over your mortgage debt.  This has to be approved by the mortgage lender and they will need to approve the a new qualified buyer to assume your mortgage debt.  Again, do not wait until the last minute to choose this option, assumptions can take time. 

 

Rentals

If you have to sell your home (or are thinking about selling your home) you will need to be proactive at looking for a place to go.  Unfortunately, rents are high in many areas and there are few rentals available.  Also, if your credit has already been significantly damaged it could be hard to find a place to rent because most landlords do check a prospective renter's credit score.  If you have a compelling situation, you may be able to submit a letter with your rental application.  In this letter tell the landlord your situation as well as the process you plan to use to remedy the situation. There are many people out there who are open to helping someone if given a supportable reason. 

 

Good News

The Good News

This struggle is just a short, often emotional, time in your life.  Once it is over, you can move on with your life with some much-needed relief and begin the healing process. Both emotionally and financially. If you were proactive than the financial healing will likely be relatively quick.  If you could not avoid filing bankruptcy, these stay on your credit report for 5-10 years. If you could not avoid foreclosure, these stay on your record for around 7 years. While financially healing, start healthy financial habits like creating a monthly budget and start building your savings accounts.  Check out these posts on another blog - Simple method to pay repair credit and pay down debt and simple ways to build your savings.  

 

Posted in Homeownership Tips
Nov. 2, 2023

Southern Monterey County Land For Sale

Southern Monterey County Banner

Monterey County is known for is lush farm land in the Salinas Valley as well as the Monterey Bay with Pebble Beach, Big Sur, Del Rey Oaks, and Carmel-by-the-sea. However, few seem to venture down the freeway to explore Southern Monterey County.  Southern Monterey County offers picturesque landscape and it's larger, more affordable land for sale.  Portions of the Los Padres National Forest are public lands available for hiking and camping.  Many property owners offer hunting and guide packages, for a fee.  Take a drive down the scenic corridor of Jolon Road from King City, stop and visit the Mission San Antonio de Padua, pass Fort Hunter Liggett, through the San Antonio Valley and visit Lake San Antonio. 

​What to do in Southern Monterey County

Williams Hill is a popular destination for outdoor activities such as camping, hiking, and hunting (hunting permits are regulated by California Department of Fish and Wildlife).  Lake San Antonio offers water sports, fishing, hiking as well as camping.  If wine tasting is on the to do list there are a number of fabulous wineries throughout Monterey County including The River Road Wine Trail.  Many communities throughout the county offer farmers markets offering fresh produce from the Salinas Valley- proclaimed the salad bowl of the world due to the large variety of fruits and vegetables grown in the area. You can be sure you are getting the freshest produce and supporting local farming families at the farmers market. 

 

​Many of the small communities have their own elementary schools.  The community of Lockwood is home to the San Antonio Elementary School.  San Ardo has San Ardo Elementary and the community of Bradley has Bradley Elementary.   All of these schools are free, public schools. 

 

​Centrally Located

Many areas in Southern Monterey County are centrally located with easy access to Paso Robles, Monterey, and San Francisco.  Our team sells properties in the communities of Lockwood, Bradley, San Ardo and King City.  All of these areas are located within a short drive (45-60 minutes) of Paso Robles (San Luis Obispo County) and Monterey.  Bay Area Cities are an easy commute up Highway 101 with San Jose Airport about 2 hours away and the San Francisco International Airport is roughly 2 hours and 30 minutes north.  If you like to dabble in the snow sports, Shaver Lake is just over 3 hours away, however sometimes the hills around Monterey County get a light dusting of snow.  

 

Properties available for purchase

Disclosure~ We are the listing agent for all of the properties detailed below.  Although we pride ourselves on honestly, we do not verify information provided from other parties. Accuracy of all information will need to be verified by prospective buyers. 

 

160 acres of land on Lockwood Road, Lockwood

Lockwood Road View Lockwood Road Land  Lockwood Road Photo

This property is a simply stunning 160 acre parcel located at the end of Lockwood Road within the community of Lockwood. Much of the land is nearly level to gently rolling and dotted with oaks. This is the rare opportunity to own a piece of land that has been predominantly untouched with some elevated building sites to build your dream home. The lands usability offers many uses, stunning estate property, vineyard, olives, equestrian estate, and more.  There is no well installed, which means a new owner can work with a local well drilling company to place the well in an ideal location.  The family has owned this property for generations and it is the first time it has been on the market. The property is priced at $750,000, which is less than $5,000 per acre. 


900+/- acres of land on Carmel Valley Road, Greenfield

Reed Ranch Photo 1 Reed Ranch Photo 2 Reed Ranch Photo 3

Almost 900 acres featuring paved road frontage along Carmel Valley Road. The property is located between the City of Greenfield and the prestigious Carmel Valley Village.  The the terrain is comprised of open rolling valley oak grassland, dense covered blue oak woodlands that include large pine trees and live oaks. Most of the landscape is rolling hills with views of the Arroyo Seco valley and two seasonal creeks running through the property. The ranch is mainly level next to Carmel Valley Road and runs to the west and increases in elevation. There is an abundance of water on the ranch. The lower part of the ranch is supplied by a domestic well with a 5000-gallon water tank and two troughs. The seasonal creeks usually have water year-round and the upper part of the ranch has 2 springs and several ponds. One spring is developed with a holding tank and water trough. The ranch will typically run 25 to 35 cow/calf pairs year-round. There is a wide variety and an abundance of wildlife on the ranch, which includes deer, wild pigs, quail, bobcats, coyotes, and wild turkeys. The property is adjacent to thousands of acres of BLM Land making it a magnificent recreational retreat. The facilities include an old redwood cabin that needs to be remodeled and a set of cattle corrals. Both are just off of Carmel Valley Road and have water and power to them. The ranch has a good border fence and is cross fenced separating the lower part of the ranch from the upper part. This ranch is a great place to get away from it all on this one of a kind property. This offering is another untouched slice of land and amazing opportunity to purchase a slice of Monterey County History.  Priced at $5,500,000. 

 

165 acres of land on Martinez Road, Lockwood

165 Martines Road 1 165 Martines Road 2 165 Martinez Road 3

This 165+/- acre parcel is ready to become your dream estate. The land is nestled among the foothills above the beautiful San Antonio Valley.  Choose from one of many build sites offering stunning views of the valley below. The varied terrain lends itself to many uses from horses and livestock to homesteading and gardening. An onsite well is already installed and currently set up for livestock. Whether you are looking for a recreational retreat or land to build your home, come tour this property, you will be glad you did.  Price to sell at $495,000

 

Pacific Premier Vineyard, Lockwood 

Pacific Primer Vineyard 1  Pacific Primer Vineyard 2 Pacific Primer Vineyard 3

Located on the San Antonio Valley floor nestled near the foothills; this vineyard is sited in a unique location to provide natural protection from frost. The 121+/- acre parcel has approximately 85 acre planted to award winning Cabernet Sauvignon, Merlot, and Petite Sirah. Historically contracted with Hahn Winery in Soledad, and more recently Laetitia Winery in Arroyo Grande, the fruit from this vineyard has produced 90-point wines and has a strong production history. There are approximately 20 acres that can be planted or used for a homesite. Price at $2,975,000. 

 

68277 Jolon Road, Lockwood

Val du Soleil Vineyard 1 Val du Soleil Vineyard 1 Val du Soleil Vineyard 3

Val du Soleil Vineyard in Lockwood is just 22 air miles inland from the Pacific Ocean, over the Santa Lucia Mountains.  The land is nestled among the beautiful estates, flourishing pastures and stunning vineyards of the Southern Monterey County Wine Country.  When meandering along the scenic Jolon Road corridor, keep an eye out for the abundant wildlife such as elk, deer, wild pigs, hawks and more. Val du Soleil Vineyard encompasses approximately 150 total acres of land, with roughly 40 acres planted in producing wine grapes. The remaining 100+/- acres is nearly level to gently rolling and is suitable for a wide variety of uses. Currently the land is used for cattle grazing but the vineyard could be expanded. The property is improved with a 2 bedroom 2 bathroom house with beautiful mountain views out every window. The property is bisected by Jolon Road, allowing convenient paved road frontage to both portions of the property. The seller has joined the Monterey County Wine Growers Association, this network of professionals provides access to a unique mix of local vitners who have dedicated their lives to delivering high quality wines throughout the west coast and united states. Check out our blog on this specific property here

 

All of the properties above are zoned for agricultural uses, although the county could have restrictions.  If you have a specific use in mind, please call Monterey County and chat with a planner about your ideas for a specific land use. The title for each property contains a link to download the marketing flyer for each property.  Of course these are not the only properties available for purchase in the area. If these prospective properties are not a fit for you, please give us a call and we can chat about your ideas and goals. We have a database of properties and can send you properties listed by any real estate company. 

 

 

Posted in Feature Properties
Oct. 12, 2023

3rd Quarter 2023 North SLO County Real Estate


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Inflation and a floundering economy have brought rising interest rates which has cooled both buyer demand and seller listing activity. When you combine rising interest rates and continuing rising prices, we get a significant adverse effect on affordability thereby softening demand. Would be sellers are reluctant to list their homes that have a lower interest rate mortgage, then buy a home at a perceived inflated price with a new, higher interest rate mortgage. These factors are keeping would be sellers from entering the market thereby keeping inventory levels very low. The following 2 graphs illustrate the number of sales on a quarterly basis and the rate of year over year change. The 3rd quarter 2023 number of sales, 279, comes in at 14% fewer sales than in the same quarter 2022.

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The 3rd quarter median sale price comes in at $700,000, up .5% from the 3rd quarter 2022; virtually unchanged from the same quarter in 2022 but reversing the downward trend we were experiencing. Demand has softened slightly. I don't foresee any real crash in values because of the extremely limited inventory and high desirability of the Central Coast region. Property value appreciation is predicted to be flat to small changes up or down through 2023.

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The graph below shares 8 industry organizations' forecasts for 2023 prices and their revised forecasts made mid-2023.

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The absorption rate graph above still shows we're in a sellers' market but what's apparent is we were in a very tight sellers' market as we entered 2022, eased up over the first half, began to tighten again through the last half of the year, and showing signs of softening over the last 6 months.

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The number of new listings is down 11% when compared to the 3rd quarter of 2022.

The median list price of new listings is up 8% over the same quarter of last year.

Posted in Market Updates
Oct. 11, 2023

South Monterey County Vineyard

Val du Soileil Vineyard, 68277 Jolon Road,

Lockwood, Southern Monterey County

150 ac along Jolon Road

Val du Soleil Vineyard in Lockwood is just 22 air miles inland from the Pacific Ocean, over the Santa Lucia Mountains.  The land is nestled among the beautiful estates, flourishing pastures and stunning vineyards of the Southern Monterey County Wine Country.  When meandering along the scenic Jolon Road corridor, keep an eye out for the abundant wildlife such as elk, deer, wild pigs, hawks and more. Val du Soleil Vineyard encompasses approximately 150 total acres, with roughly 40 acres planted in producing wine grapes. The remaining 100+/- acres is nearly level to gently rolling and is suitable for a wide variety of uses. Currently the land is used for cattle grazing but the vineyard could be expanded. The property is bisected by Jolon Road, allowing convenient paved road frontage to both portions of the property. The seller has joined the Monterey County Wine Growers Association, this network of professionals provides access to a unique mix of local vitners who have dedicated their lives to delivering high quality wines throughout the west coast and united states. 

 

The House:

The charmingly appointed 2-bedroom, 2-bathroom house was built over the garage to take advantage of the best views possible from each window.  The structure totals about 1,680 square feet.  Upstairs you will find a beautifully designed space, with two private suites, an open concept living area, dining space and kitchen, with vineyard views from every direction. Originally, a garage was designed under the house with a half bathroom and storage space.  During the pandemic, the garage was converted to two private offices, a conference area and wine storage.  The garage door remains, if someone would like to convert it back.  However, other uses for the space could be a second unit (possibly for an onsite caretaker or renter) or incorporated as additional living space.  Don't need the extra space? Converted into your own home wine making space and make quality handcrafted wines from your estate vineyard (verify this, and other uses, with the county). 

 

The Vineyard:

Approximately 40 acres are planted in four varieties surrounding the house.  The varietals break down to roughly 10 acres of Cabernet Sauvignon, 15 acres of Syrah, 5 acres of each Dolcetto, Mourvedre and Tempranillo.  The vineyard is currently leased to a local vineyard professional who maintains the vineyard and sells the crop.  The vineyard professional has been improving the vineyard, it shows magnificently, and the 2023 harvest is expected to be prolific. This a perfect getaway for someone who wants to relax amongst the vineyard without having to maintain the vineyard full time.  Historically the fruit was sold to Bogle Winery, more recently it is sold on at market price to wineries around Monterey, Soledad and Paso Robles, on a year to year basis.  The vineyard benefits from the long growing season and unique climate offered by foggy mornings and hot summers.  The unique Mediterranean climate creates the perfect balance in the wine that wine lovers enjoy. 

 

The property is established within the San Antonio Valley AVA, one of the nine AVAs (American Viticultural Areas) within the Monterey wine country.  Santa Lucia Highlands AVA,  Arroyo Secco, San Bernabe, and Hames Valley are all close by and produce exceptional wines.  Wines from the Central Coast, including Monterey and San Luis Obispo County, have been scoring very well in wine competitions.  This proves to the wine industry that the area produces high-quality wines, and our exceptional weather, makes the central coast one the best places to produce great wine.   

 

Here in the San Antonio Valley we have a few wineries along with many small and medium sized vineyards.   12EC winery is a family-owned winery where you can visit by  appointment to taste, visit them here- https://12ecvineyard.com/.  

 

Location and General Area

The community of Lockwood is short 2-2.5+/- hour drive from San Francisco, San Jose or the Central Valley. If you love what Monterey County has to offer, you could easily spend the day in Monterey Bay, the Salinas Valley, Carmel Valley or the quaint communities of Carmel-By-The-Sea or Big Sur.  All are approximately an hour to an hour and a half away.  Just think, meandering around the Monterey Bay Aquarium and then down Cannery Row. Taste a flight of wines at Taste of Monterey or spending the day golfing in Pebble Beach and making it home to relax in the peace and serenity of your own vineyard.  If wine tasting is what you are looking for the River Road Wine Trail is an association of some of the best wineries in the area, although many have estate vineyards, some get additional fruit from right here in the San Antonio Valley.  Visit wine tasting rooms and try the exclusive wines from names such as Odonata Wines, Pessagno Winery, Manzoni Winery, Puma Road and Ray Franscioni Wine, Hahn Family Wines, Scheid Vineyards and Chalone Vineyards.  The River Road Wine Trail website recommends three tour companies to guide you, and drive you, while you taste these incredible Monterey County Wines. 

 

The area is also known for Lake San Antonio, located within the Lockwood/Bradley area and offers great fishing, water sports, camping and hiking.  Lake Nacimiento is approximately 30 minutes to the south, in San Luis Obispo County, and also provides ample water sports, camping, fishing, paddle boarding and more. Hiking and dirt bike riding are popular pastimes on the ample amounts of public land.  Often professional and ameture cycleists can be seen training along the rural roads between Lockwood and Paso Robles.  Speaking of Paso Robles, we are only 30-45 minutes north and they offer over 200+ wineries and tasting rooms.  Fort Hunter Liggett Army Base has many social events throughout the year, that the community can attend and often participate such as a 4th of July celebration, a fall festival.  Another notable attraction is Mission San Antonio which a historic landmark, established in 1771, it was the third mission in California established by Padre Junipero Serra. Today it still hosts Sunday mass as well as many other events, weddings and fundraisers.  Coming up on November 4th, the Mission is offering "Afternoon in the Garden". This event is put on by the Mission and offers an opportunity to taste local wine and enjoy appetizers in the stunning garden of the mission.  Find out more details here:  https://www.missionsanantonio.net/evening-in-the-garden

 

Financing

Financing a property like this is not like financing a house.  Typically lenders like to see at least 30% down and often they are portfolio loans.  A portfolio loan is a loan that the lender is going to keep.  The seller has a loan with American Ag Credit at 4.95% fixed, the lender says it is assumable!!  This low interest rate makes a big impact on the monthly payment.  Download the Marketing Package

 

  Exterior of the house Living Room Kitchen view Bedroom

 

Posted in Feature Properties
Sept. 11, 2023

165 acres Southern Monterey County

165 acres off Martinez Road Lockwood

This 165+/- acre parcel is ready to become your dream estate. Nestled among the foothills above the beautiful San Antonio Valley, choose from one of many build sites offering stunning views of the valley below. The varied terrain lends itself to many uses from horses and livestock to homesteading and gardening. An onsite well is already installed and currently set up for livestock. Whether you are looking for a recreational retreat or land to build your home, come tour this property, you will be glad you did.

Posted in Feature Properties
Jan. 1, 2023

North San Luis Obispo County Real Estate Forecast 2023

This report is a look back at 2022 and a projection of what we may see in 2023 North San Luis Obispo Country Real Estate.

North San Luis Obispo single family real estate sales dropped almost 50% in the 4th quarter of 2022 as compared to the 4th quarter of 2021. New listings dropped 32% over the sale time period.  The median sales price increased 3% to $682,500 during the comparative periods.  For the first time in history mortgage rates doubled during the calendar year.  New construction is picking but will not materially impact the supply deficit in 2023.  Interest rates will be in the 5%-7% range.  Going into the 1st quarter of 2023 we will see low inventory, moderate demand and stable pricing.  We do not see any material erosion in values. 

Paso Robles is a dynamic force in the California wine industry.  Major American and international companies are taking large long-term positions in local vineyards and wineries. The pandemic hastened the growth of the to consumer (DTC) business model for wineries.  Agriculture tourism has exploded on the Central Coast which fuels our hospitality industry.  Vineyard and winery sales have been steady throughout the last year with strong pricing.  Fruit seems to be in a balanced economic position despite last year's short crop.  Vineyard replanting costs and farming costs have significantly increased. 

Commercial real estate in North San Luis Obispo County will hold its own in the face of higher interest rates and economic uncertainties.  Multi-family product will continue to be in strong demand for investors.  Warehouse and industrial produce should be stable.  Retail is recovering and office product will still be tepid from a demand standpoint.  

Our local city government has done a good job managing the chaos over the past few years.  We have out local issues, but our leaders have treated one another with respect regardless of ideology.  Real estate values reflect the success or failure of government policies. 

What's in store for 2023?  Supply and demand will rule the day.  During the past 2 years qualify of life overtook affordability as Buyers' main reason for relocating.  California urban areas continue to deteriorate in living conditions.  Urban refugees view the Central Coast as higher in quality with pricing well below urban values.  The Central Coast will be the strongest market in California. 

Supply will be sparse going into the first part of the year. new construction is erratic.  Homeowners with ultra-low mortgage rates are seemingly locked into their existing homes despite generous equity cushions.  Structural life events such as death, divorce, job relocation, work from home and retirement will provide supply, decent demand, and strong pricing.  It's a remarkable time to be a Seller in North San Luis Obispo County. 

Not all real estate is created equal.  Many Regions in the country may see double digit percent value drops.  Covid and cheap money created booming markets that will fall back to the norm.  Media headlines, meant to terrify nor clarify, will showcase dramatic market conditions.  We do not see material increases or decreases in values moving forward into 2023. 

It's good to remember that all real estate is local, and our city leadership is more important than who is in the White House.  The economy will showcase our resiliency in North San Luis Obispo County.  

Call on our tam for your real estate needs in 2023. As much as we would like to say we had the time to draft the details located within this blog post, it was prepared by Pete Dakin and Fred Bruen, both with our brokerage RE/MAX Parkside Real Estate. 

Posted in Market Updates
Dec. 8, 2022

Are adjustable Rate Mortgages Making a Comeback?

 

Are Adjustable-Rate Mortgages Making a Comeback? 

Home buyers have had a rough time lately.  First, the frenzied housing market stymied so many offers and caused frustration due to lake of inventory.  Now that the pace and prices are starting to drop, interest rates have ticked up to alarming levels.  While some buyers are postponing their purchase, those still in the market are starting to consider more creative financing, including an ARM (Adjustable-Rate Mortgage).  

What is an ARM?

Unlike a 30-year fixed mortgage, as the name suggest, the interest rate of an ARM can change over the course of the loan.  The interest rate is based on an index, such as the one year T-Bill.  Additionally, the timing of adjustment is fixed in the loan documents, so the borrower knows hot to plan for the changes.  For example, a 5/1 ARM means that the initial interest rate is fixed for the first five years and then can adjust once a year for the remaining 25.  Likewise, a 7/1 ARM has a fixed period of 7 years.  There are also built-in protections to ensure that the adjustments are reasonable.  These are limits to how high and adjustments (or reductions) can be assessed at each point and an overall cap on the interest rate. 

The advantage of an ARM is to allow more buying power to buyers by starting with a lower interest rate than that available in a 30-year fixed loan.  This can be especially valuable for buyers who do not intend to keep the home for 30 years; they can tailor the adjustments based on their planned time to own the home. 

The housing market is shifting.  Homebuyers may not have the same challenges as last year, but today's market presents new issues.  One tool is an Adjustable-Rate Mortgage, and with the higher interest rates, this mortgage product may be making a comeback.  

Certainly, we are not advising prospective or currently clients to obtain any type of loan.  However, you can work with your mortgage professional to choose the loan product that is right for your needs.  If you do not have one, please reach out to us and we can connect you with a reputable local lender who can help you navigate the changing lending market.  The best place to start any home (or land) buying journey is to talk to a lender and see how much purchasing power you have within your budget.  This is powerful information and, when making offers, it puts you in a stronger position and increases your chances of getting the house of your chose.  

If you have any questions, or would like referrals for local professionals, please don't hesitate to reach out to one of our agents.  We do not get referral fees, but we do like connecting great companies with good clients.  

Happy Holidays! 

Posted in Buying a Home