Property Values in Aromas, CA have dropped to about 50% of their all time highs in 2005/2006. This affords a prospective buyer the chance to get into a nice horse property for as little as $300,000.  When I say Aromas I’m really talking about all the rural areas of North Monterey County, the western parts of San Benito County and the southeastern parts of Santa Cruz County.  Of coarse you can pay a lot more depending on exactly what amenities you desire.  Horse properties are abound but there are very few on the market at any given time. The well priced ones sell fast and the marginal and crappy ones are left for you and I to pick over unless we’re smart (which we are).  The best way to buy a home around here these days is to get on my automated drip email campaign where I send you by email new listings as they hit the market and then we talk about them and then go look at them if we think there might be a match.  Of course the higher the price the more selection you will have and the less demand there will be just like almost everywhere else. With the way the market is these days almost everybody is looking for a bargain and although there are bargains to be had there are also large potential pitfalls. You will need experts to help you to make an informed decision about your new home purchase. I am simply part of your team of experts (probably the most important one). Most homes being sold today in this market are sold as-is and with many disclosures concerning the fact that the seller has no knowledge as to any aspect of the subject property.  This essentially puts the Burdon of finding out as much as possible on you and me.

I love this area and want to make sure that you buy a property that will help you to love it here too. Give me a call when you get a chance.  I will never try to fit a round peg in a square hole.  I want you to be able to spend time with your horses or dogs or cows or pigs or chickens not on trying to fix a problem that you were not anticipating. Can you believe that we are 45 minutes from the Silicon Valley?

Prospective home buyers in Aromas and Prunedale are sometimes mistakenly overlooking short sales. Sure, they can be frustrating but due to the lack of new listings coming on the market, targeting short sales may be the edge you need to get into your dream home.  Some banks have tightened up the way they are dealing with short sales and they can be a waste of time but as long as your realtor (me) has an effective strategy for getting these deals closed, you can be surprised how buying a home through a short sale can be an effective strategy.

Statistics for the 93907 and 95004 Zip Codes since January 1, 2011 show that there have been 80 short sales, 97 bank owned properties and 76 traditional sales sold within that time frame. Keep in mind that these short sales most likely would have become bank owned sales if not for the short sale process.  It becomes even more important in this market to consider short sales because homes in these areas are so unique.  If you find your dream home and expect to pick it up after the bank forecloses you are have about a 50/50 chance of getting to compete for the property.  Then factor in that most buyers and agents target bank owned properties and that there will be a lot of competition if the home is priced properly and that you won’t be able to get financing on many properties and you soon realize that it’s not as easy to buy a bank owned property as it is to buy a short sale especially if you are going to need financing.  Remember every situation is different.

No matter what strategy you decide to use to buy your new home just remember that it may take some patience, luck and flexibility but skill (mine) is and always will be an important factor.  Drop me an email or call me and we can talk about my strategy for helping you to buy your new home.

David Biagini                                                                                             Bay Cities Real Estate                                                           831-320-5439

The Market for Aromas and Prunedale Real Estate has been depressed since about 1997. There seems to be a lot of optimism these days about a fast and furious turn around.  I simply don’t see it happening that way.  We are seeing a turn around but not a fast and furious one. The days of fast and furious rises in property values are probably gone forever and that is really the way it should be.  It’s all about financing.  Coming from the mortgage industry, I always look at real estate from a mortgage bankers prospective. Even after the foreclosure crisis has passed which it hasn’t (it is heading in the right direction) real estate will no longer be sold to unqualified borrowers.  Strict qualifying ratios will guide median real estate prices relating to median income in most markets around the world. An exception might be destination spots such as Pebble Beach, Carmel, Monterey, La Selva Beach, Rio Del Mar, Seascape, Capitola, Aptos and Santa Cruz which are areas I am familiar with and are in my marketing area.

With interest rates at record lows borrowers can qualify for higher priced homes than they will be able to when interest rates rise which they likely will do in the not to distant future.. A 4%, $400,000 mortgage amortized for 30 years gives you a payment of $1909.66. That same $400,000 mortgage amortized with a 6% interest rate for 30 years gives you a payment of $2,398.20. With the way we (meaning the government) are spending money and monetizing our debt interest rates could go much higher than that.  Anyway, $2,398.20 would only get you $318,515 mortgage.  So if you are barely qualifying for that $400,000 loan now, you would now qualify for $318,515 @ 6%.. The only way prices rise is if incomes rise. The economy is going to have to get much better for that to happen. The Economy is in a real fix.  If interest rates rise property values will fall or at least level off even after the foreclosure crisis has passed.  The government does not have total control of interest rates.  I think the best case scenario is that prices slowly rise until Mortgage rates rise and then level off after the foreclosure crisis is over.

There are a lot of variables in trying to tell what the future will bring but armed with this prospective view of the way mortgage qualifications manipulate the real estate market, you at least know that a run away upward trend in the real estate market is unlikely. My suggestion is to buy what you can afford and hope for the best. Timing this market is impossible.  Again, this is the way real estate markets are supposed to work and if the mortgage industry had recognized this fact (which I think they must have), we never would have gotten into this mortgage crisis in the first place.

It is very important to get your monies worth when buying any property especially a country property. A miscalculation can cost you thousands of dollars.  I am here to help make sure you get a square deal.  Drop me a line or call me when you need help with your new home purchase in the Monterey Bay Area. Horse properties are my specialty but obviously I can help you with any real estate transaction.

I look forward to talking soon.

Dave Biagini                                                                                              Bay Cities Real Estate                                                                                831-320-5439

Aromas CA is a small town with a lot to offer. It is located within 20 minutes of both Monterey and Santa Cruz and all towns in between Aromas is comprised almost exclusively of properties with acreage making it a great horse property area.  The weather is mild and we are close to the Monterey Bay. The commute to San Jose is less than a hour and traffic is generally light until you get close.  Most people I talk to in the San Francisco Bay Area have never heard of Aromas.   Aromas  It’s a great place to live.                                                      Buying a home in Aromas  CA these days can take a lot of patience. With the market down approximately 50% from the all time high, demand for homes is high.  The nice ones that come on the market are almost always bought by buyers with cash.  There are ways to compete but you need a realtor that can think outside  the box.  I am that realtor. I find my buyers a great home no matter how long it takes. I will quickly show you how I am succeeding with my clients. Give a call or drop me an email and I will show you the way. I am an experienced country property broker and to buy a home in the country you better have a realtor that has been through a few wars. Horse properties are one of my specialties.  You can reach me @ 831-320-5439 or drop me an email at dave@sweathappens.com.                                                                                                                                I look forward to hearing from you.

For many people and for many reasons, buying a home is better than renting a home Monterey Bay, CA.

In many communities, the inventory of houses to rent is limited, whereas there’s likely to be a large variety of houses on the market at many prices. If specific location matters, buying a house is the better way to choose the ideal location than renting a house.

Lifestyle is another major consideration. Owners can modify a house to suit their needs. A popular modification is making a house habitable by someone with disabilities. A renter would not be able to modify a house and a landlord is unlikely to change a house to suit a tenant. If a house needs updating, with new energy-efficient appliances, homeowners will update kitchen and laundry appliance, or put in a new furnace. In many neighborhoods, homeowners are converting to solar power too. Most landlords don’t often buy new appliances for their tenants.

Animal lovers can have pets. Landlords always have to think about keeping a rental property suitable for the next tenant. That often means excluding pets from a house that’s a rental property.

Homeowners call repair personnel as soon as it’s warranted. Depending upon the terms of the lease, a renter might have to call a distant landlord before obtaining permission for a major repair. In parts of the country subjected to severe weather, this can be a tremendous disadvantage.

One of the major reason most people choose to own instead of renting houses in Monterey Bay is for the tax deduction. Mortgage interest is deductible, as are property taxes. Modifying a house to be more energy-efficient can be tax-deductible too, depending on the year’s tax codes. The tax advantages are in effect for Federal and state taxes. Deductible mortgage interest is usually the largest deduction off the Federal income tax that people take. Renting offers no tax advantages. Rent paid for a home is not deductible.

The other major financial advantage to home ownership is that owning builds equity Monterey Bay, CA. Once a home is paid off, living there is essentially free, aside from upkeep and taxes. Some states have special programs that reduce property taxes for retired people, making owning even more financially attractive. With renting a home, there’s no equity; rent must always be paid.

After comparing the two ways of financing a house, it’s obvious that buying a house is superior to renting a house.