I live in La Quinta, California, where the real estate prices have continued to plunge and unemployment continues to rise while having over 10 per cent of the nation's wealth here in the winter time. I have been working hard for the past 3 years to try to keep the values as high as possible. I focused on short sales rather than REO's. I staged homes, even distressed properties. I kept lawns watered and mowed and pools clean. I just worked harder and got paid less. A few weeks ago we found in our county that the banks are now selling homes on the court house steps for much less than is owed. Prices are falling 10 - 30 per cent immediately due to this and in all price ranges. For example, recent sales in an area are $400,000. The loan on the home is $500,000. Rather than the bank buying the home at the trustee sale for $500,000 and then reselling as an REO, they will sell for $300,000 to a private party at the trustee sale. This $300,000 is now the new comparable sale used for appraisals. I have now started to write a lot of offers and low offers. About half are sticking. I feel bad that prices are plummeting, but people are getting very low offers accepted on very nice homes. When will this end and where will it stop?
LORI BOWERS
http://www.desertareahousingmarket.com
The Lori Bowers Group
A boutique Real Estate Office, with a full service team to serve all your Real Estate Needs
La Quinta, Palm Desert, Indio, Rancho Mirage, Coachella , Indian Wells and the surrounding Palm Springs Area.
78065 Main St., Suite 107
Old Town La Quinta
La Quinta, CA 92253
Phone: (760)777-8788 • Fax: (760)771-5355
