Category Archives: Uncategorized

IHB: The Mission of the IHB

The Mission of the IHB

The mission of the IHB is to provide general real estate education, to analyze and report market conditions, and to help people buy and sell homes.

The IHB Story

The IHB story is about a community of real estate watchers and seekers who banded together to tell the Truth about housing. The community grew strong through an exchange of information and entertaining online interaction; it was fun.

Out of this community, and the bubble blog community as a whole, a consensus opinion emerged of when, how and why an epic price crash was going to occur. I became one of the community scribes documenting the disaster and ultimately writing The Great Housing Bubble. It is the entire IHB community through research and reasoned opinion that created a collective consciousness bigger than all of us.

The binding principals and wisdom of the IHB guided us in the selection of services Ideal Home Brokers provides.

IHB Services

We perform the following services: (1) provide real estate instruction and evaluation; (2) foster a community of like-minded educators, professionals and everyday people in the IHB forums; (3) supply unique property valuation reports to our clients; and (4) assist buyers and sellers without pressure, manipulation, or emotional appeals.

The IHB began as the Irvine Housing Blog in September of 2006. The scope of the IHB was expanded in May of 2009 when the Ideal Home Brokers was added to its acronym. In the summer of 2009, the IHB: Ideal Home Buying process was unveiled.

Educate People about Residential Real Estate

The IHB started as a hobby to vent frustration, evolved into a source of real estate education, and now serves as a source for many to communicate and learn about local real estate. When the IHB entered the scene, the misinformation in the popular culture was astonishing, and it culminated in a massive real estate price bubble. We at the IHB want to make sure this disaster of The Great Housing Bubble never happens again.

The education from the IHB is free to all. Everything written for the IHB—over 200,000 words in over 1,000 posts and numerous PDF white papers—is available in multiple formats on our websites, www.irvinehousingblog.com and www.irvinehousingbrokers.com. There are many topics under the broad heading of residential real estate that can be found at our two sites. Your education continues there.

Part of this service is our commitment to nourish a community of educators, professionals and everyday people who come together to share their knowledge and real estate experience in the Irvine Housing Blog community forums. We have attracted parties from many disciplines and all walks of life. The forums are quite active and visited by over 1,500 people a day. If you have a specific question not answered by this book or the writings on our educational websites, you are encouraged to visit the forums and pose your questions there or email an IHB professional directly. At the IHB, we are here to serve.

Provide Honest and Fact-Based Assessment of Property Valuations

The Ideal Home Brokers exists to serve the needs of buyers and sellers. We provide a unique value-added service with our proprietary pre-bid and pre-listing report. We provide an unbiased opinion of value and a conceptual framework to help people understand the negotiation they will be undertaking. We make this same report available to both buyers and sellers.

With our accurate valuation reports we help sellers better understand the market conditions, price their homes properly, and maximize resale value. When we represent buyers we use these same reports to educate them on current and potential future market values. We help them to analyze the cost of buying as compared to renting to make sure the buying decision is the right one. Moreover, we believe in honest information based negotiation. We strongly believe that our client’s success is dependent upon creating a win-win transaction in which both the buyer and the seller are happy. Both parties know that they have participated in a fair and honest transaction free of deceptive sales tactics and manipulative negotiation.

Only the Truth

The sale of real estate sales is marred by the deplorable sales methods of many of its practitioners. The education and training of many agents is marked by high-pressure sales tactics, outright manipulation of both parties through emotional appeals, and a lack of clarity and honesty in communication. Much of the writing of the IHB emanated from a deep personal disgust with these practices and recognition of the role they played in the inflation of The Great Housing Bubble. No sales representative of the IHB will use these tactics; we have a zero-tolerance policy for violations.

There are many honest and ethical Realtors in the profession who are as dismayed about these sales tactics as we are. We hope our presence and practices serves as a call to action to good Realtors everywhere. We make our methods known to all in the hope that these methods and practices become adopted by others in the industry.

The IHB treats all customers with respect and provides integrity and honesty (and even bluntness) that our clients find refreshing. We provide free education, value-added services, and service with integrity and honesty. We are here to serve you.

Thank you again for allowing us the opportunity to present ourselves to you in this manner. We look forward to working with you.

Sincerely,

Larry Roberts

When you are ready to buy or sell a home, we are here to serve you.

sales@idealhomebrokers.com

IHB News 10-24-2009

Quiet week at the IHB. The housing market is facing supply shortages, low volumes and high prices. When will this change?

7 Heritage Irvine, CA 92604 kitchen

Irvine Home Address … 7 Heritage Irvine, CA 92604
Resale Home Price …… $359,000

{book1}

You may be an ambassador to England or France
You may like to gamble, you might like to dance
You may be the heavyweight champion of the world
You may be a socialite with a long string of pearls.

But you’re gonna have to serve somebody, yes indeed
You’re gonna have to serve somebody,
It may be the devil or it may be the Lord
But you’re gonna have to serve somebody.

Gotta Serve Somebody — Bob Dylan

Irvine Company News

ICDC New Home Collection Press Release — Irvine Company — Fall 2009.pdf

New Home Neighborhood Fact Sheet — Irvine Company — Fall 2009.pdf

New Home Builder Profile Fact Sheet — Irvine Company — Fall 2009.pdf

Housing Bubble News

Since this is a weekend, and you may have more time, I want to call your attention to a 45-minute presentation by John Burns on the real estate market. He is probably the best and most knowledgeable financial forecaster working today.

Webcast: US Housing – Recovery on Government Life Support?

Why the Housing Bubble Was Local, Not National

New York Times‎Oct 20, 2009‎

An economist says look not to
national policy but local regulation: “restrictive growth management
was a necessary condition for the housing bubble.

Home prices fall 0.3% in August, FHFA says

MarketWatchRex Nutting‎Oct 22, 2009‎

The biggest price gains in August came in the Pacific region (up 1.2%) and Mountain region (up 0.8%), where the housing bubble was the most intense.

Haven’t We Learned Anything From The Meltdown? istockAnalyst.com (press release)

Housing prices forecast to fall in 2010 — and could keep falling for years

Daily Finance (blog)‎Oct 21, 2009‎

All of these data points suggest some pernicious drivers of the bubble haven’t changed in the three years since the housing bubble popped.

Guess What: The Housing Bubble Is Already Back

The Business Insider‎Oct 20, 2009‎

But we were wrong — the housing bubble is back. Sure, prices aren’t at their old levels, but everything else is in place. Generous government involvement

A new housing bubble

Economy NewsWill Peters‎Oct 21, 2009‎

These are gains that could suggest the emergence of a new bubble. However if we are to start talking about housing bubbles and of a return to an inflated

Our Subprime Federal Goverment

City JournalNicole Gelinas‎Oct 20, 2009‎

Indeed, such write-downs should be a healthy part of the economy’s readjustment to a post-bubble world. They would help address the housing bubble’s legacy:

{book2}

Today I want to feature a couple of Irvine condos with designs based on a prison cell-block.

2105 Apricot Dr #2105 Irvine, CA 92618

2105 Apricot Dr #2105 Irvine, CA 92618

7 Heritage Irvine, CA 92604 kitchen

Irvine Home Address … 7 Heritage Irvine, CA 92604

Resale Home Price … $359,000

Income Requirement ……. $66,075
Downpayment Needed … $71,800

Home Purchase Price … $207,000
Home Purchase Date …. 8/2/2001

Net Gain (Loss) ………. $130,460
Percent Change ………. 73.4%
Annual Appreciation … 7.1%

Monthly Mortgage Payment … $1,542
Monthly Cash Outlays ………… $2,230
Monthly Cost of Ownership … $1,720

Redfin Property Details for 7 Heritage Irvine, CA 92604

Beds 3
Baths 1 full 1 part baths
Size 1,200 sq ft
($299 / sq ft)
Lot Size n/a
Year Built 1977
Days on Market 5
Listing Updated 10/13/2009
MLS Number S592421
Property Type Condominium, Townhouse, Residential
Community El Camino Real
Tract Hv

What a showplace! Beautifully remodeled kitchen featuring hardwood cabinets, granite counters, and brand new stainless steel appliances. Luxurious, high quality and stunning hardwood and travertine floors topped off with custom baseboards. Classically elegant 2-tone paint decor with crown molding. All three bedrooms are upstairs and quite large. Downstairs is a huge living room, a remodeled 1/2 bathroom, and a versatile country kitchen that leads to your private patio. Association facilities include a pool area and a large park. Next door is the Heritage Park complex with a world class aquatic center, acres and acres of parks, lagoons, tennis courts, library, recreation clubhouse, and a fine arts center. Unlimited places to shop are just seconds away from Trader Joes to sushi and everything else in between.

Can this ugly condo credibly be called a “showplace?”

Mariposa

Today we will take a closer look at the community of Deerfield.

13 Mariposa Irvine, CA 92604 inside

Irvine Home Address … 13 Mariposa Irvine, CA 92604

Resale Home Price …… $709,000

{book3}

{book1}

Reincarnation, is a dead refrain

So this what it's like to be a butterfly

Reborn

Dead.

Is this the gift of fire?

Or the making of a perfect diamond

Digital climber plummets

In a canceled dive.

Reincarnation — Discordance Axis

Much of Irvine has been around since the 1970s. The older neighborhoods have seen three real estate cycles including The Great Housing Bubble. Each one becomes more volatile than the last. House prices skyrocket, then they fall to earth with a thud. The neighborhood values values begin to come back in time (it will be a very long time in this cycle), and the God's of Kool-Aid reincarnate. The cycle repeats anew.

Deerfield

I have said it before, but I really like Deerfield. From the community profile:

Deerfield Sign

In the heart of Irvine there are a number of small neighborhoods that are less well known than Woodbridge or Turtle Rock or some of the other larger or newer communities. These neighborhoods are no less interesting or well planned than their more famous brethren. One of these hidden gems is the community of Deerfield.

Deerfield Map

Deerfield is north of Woodbridge bounded by Irvine Center Drive, Culver Drive, Yale Avenue and the rail line which bisects Irvine. Deerfield Avenue is the main collector street moving traffic throughout the community. There is an apartment complex at the corner of Irvine Center and Culver, and there is other high-density housing north of Deerfield Avenue near the railroad tracks. The remaining housing is a mixture of one and two story dwellings. Deerfield was one of the earlier communities developed. It's buildout was complete in 1976.

(Mariposa is butterfly)

Deerfield Map 2

Life in Deerfield revolves around the large community park. This park together with an elementary and middle school comprise a large central greenspace. There are a series of pathways linking three satellite parks to the community park. This is a great master plan which allows children to walk or bike to school or the park without crossing busy streets.

This is one of those abstract land planning ideas that comes together really well on the ground. The planners envisioned this community would be as livable and as charming as it is. It is a far superior land plan to the grids of nearby El Camino Real or the Ranch. FWIW, I would buy in this neighborhood.

Some weekend afternoon if you are looking for something to do, go to the Deerfield community park at the entrance off Irvine Center Drive. According to the city of Irvine website:

Deerfield Community Park

55 Deerwood West

Deerfield Park 1

Located between Culver and Yale along Irvine Center Drive.

Click here to get directions.

Park Hours:

Monday-Friday 9:00am-9:00pm

Saturday 9:00am to 10:00 pm

Sunday 12:00pm-6:00pm

Phone: 949-724-6725

Facility Reservations: 949-724-6620

Reservation Information:

Deerfield Park 2

Deerfield Community Park has a multi-purpose room,

craft room & picnic area available for reservation.

For a list of rate categories, capacities and hourly

fees click here.

*Note: Additional fees may apply. Review the

complete policy for additional fees.

*Bounce houses allowed with reservation only.

Approximately 10.1 acres in size.

Park amenities:

Deerfield Park 3

  • 1 multi-use building
  • 1 restroom
  • 5 drinking fountains
  • 2 child play areas
  • 1 open play area
  • 1 concession stand
  • 4 lighted tennis courts
  • 2 lighted volleyball Courts
  • 2 racquetball courts
  • 1 disc golf course
  • 1 fitness par course
  • bicycle trail access
  • 4 barbecues
  • 1 outdoor sink
  • 1 group picnic area
  • 11 picnic tables
  • electrical outlets

{book2}

13 Mariposa Irvine, CA 92604 inside

Irvine Home Address … 13 Mariposa Irvine, CA 92604

Resale Home Price … $709,000

Income Requirement ……. $130,494

Downpayment Needed … $141,800

Home Purchase Price … $140,000

Home Purchase Date …. 1/1/1980

Net Gain (Loss) ………. $526,460

Percent Change ………. 406.4%

Annual Appreciation … 5.6%

Monthly Mortgage Payment … $3,045

Monthly Cash Outlays ………… $3,970

Monthly Cost of Ownership … $2,970

Redfin Property Details for 13 Mariposa Irvine, CA 92604

Beds 4

Baths 3 baths

Size 2,700 sq ft

($263 / sq ft)

Lot Size 5,400 sq ft

Year Built 1975

Days on Market 14

Listing Updated 10/9/2009

MLS Number S591308

Property Type Single Family, Residential

Community El Camino Real

Tract Dc

Will be painting soon…choose your colors… RARE 4 BEDROOMS + OFFICE/DEN!!! – MASTER BEDROOM + ONE BEDROOM + OFICE/DEN + 2 BATHROOMS DOWN – 2 BEDROOMS + BATHROOM UP – EXPANDED,UPGRADED,UPDATED – BEST LOCATION, On a quiet,inside street, away from traffic-Steps to pool,spa and park-KIDS CAN WALK TO SCHOOL WITHOUT CROSSING A SINGLE STREET -Faces the morning sun-GREAT CURB APPEAL,Brick and Stucco, Manicured Landscaping–Vaulted ceilings-Wood Floors in Entry, Hall, Dining Room, Family Room-Plantation shutters throughout-Custom recessed lighting,Updated Kitchen, warm-tone Oak Cabinets,Ceramic tile, Smooth-top range, Double oven – BATHROOMS have beed updated-HUGE Family Room features…Dramatic,used brick fireplace- Inside Laundry Room-Very private back yard-Newer concrete shake roof- SELLERS SAY SELL…Will work with offers.

When you look at this house in this neighborhood, you can see someone making $130,000 a year living there. The affordability as measured by payment and income qualifications is good, but look at the price; isn't that just wrong?

It is difficult to get your mind around prices at very low interest rates. If you change interest rates to 8% and kept the other numbers the same, the resale home price would drop over $200,000 due to the reduced loan size. At $509,000, the numbers all make sense for a rational world where the FED doesn't engineer interest rates. How long will the FED keep this up?

At least over the weekend….

Thank you for reading the Irvine Housing Blog: astutely observing the Irvine home market and combating California Kool-Aid since September 2006.

Irvine Housing Blog No Kool Aid

Have a great weekend,

Irvine Renter

😉

Flip This House

Today we have a flipper in Northwood II trying to make a quick $125K. Will he get it?

27 Secret Gdn Irvine, CA 92620 kitchen

Irvine Home Address … 27 Secret Gdn Irvine, CA 92620
Resale Home Price …… $949,000

{book1}

I leave you with photographs
Pictures of trickery
Stains on the carpet and
Stains on the scenery
Songs about happiness murmured in dreams
When we both us knew
How the ending would be…

Disintegration — The Cure

Isn’t there a certain inevitability to the disintegration of the market? Isn’t foreclosure really the cure? The previous owners that had this house overborrowed and overpaid. The property is being recycled, and the new owners will borrow much less and will borrow with much more stable terms. It isn’t that the process is painless; it is the ending we know is coming, and it must simply be endured.

In the meantime… we have flippers trying to make a quick buck. Today’s featured property was purchased for $764,150 at auction. The flippers are trying to make about $125,000 after commissions for providing the liquidity that is required at auction. They can turn around and sell it in the financed resale market for 10% to 20% more, so they do.

I am sick of flippers.

I would rather see a family get a property like this at auction prices, but it is difficult to learn the process and research the properties to find deals — difficult, time-consuming and intimidating, particularly for novices, and the penalty for a mistake is tens of thousands of dollars.

Wouldn’t it be great if families with cash had a seasoned trustee sale buyer to help them? I am working on that one…

27 Secret Gdn Irvine, CA 92620 kitchen

Irvine Home Address … 27 Secret Gdn Irvine, CA 92620

Resale Home Price … $949,000

Income Requirement ……. $174,666
Downpayment Needed … $189,800

Home Purchase Price … $764,150
Home Purchase Date …. 9/24/2009

Net Gain (Loss) ………. $127,910
Percent Change ………. 24.2%
Annual Appreciation … astronomical%

Monthly Mortgage Payment … $4,076
Monthly Cash Outlays ………… $5,430
Monthly Cost of Ownership … $4,090

Redfin Property Details for 27 Secret Gdn Irvine, CA 92620

Beds 4
Baths 2 full 1 part baths
Size 3,069 sq ft
($309 / sq ft)
Lot Size 4,820 sq ft
Year Built 2005
Days on Market 2
Listing Updated 10/15/2009
MLS Number S592736
Property Type Single Family, Residential
Community Northwood
Tract Came

EQUITY SELLER, Not a short sale or REO. Corporate owned, free and clear. Bring your pre-approved buyers and close FAST! Gorgeous, like new home located in the gated community of Northwood. Shows like a model home. Fabulous kitchen with granite countertops and brand new Viking appliances including a new refrigerator. Huge Master Suite with large walk-in closet. Large studio over garage with separate entry. Travertine tile, hardwood flooring and upgraded carpet. Built-in stainless steel BBQ island in backyard.

Of course it is an equity seller; it is a flipper!

I would be ready to close fast too if I stood to make $127,910.

BTW, “flippers” may become the buzzword of 2010, and it isn’t house flippers….

IHB: Personal Message from Shevy Akason

Hello, My name is Shevy Akason.

I
will be working with you as we search for your ideal home. I want you
to be comfortable with the process of buying or selling your home. I
promise to provide you with honorable representation and personal
service. Trust is of ultimate importance when approaching the biggest
transaction of your life. I am committed to earning your trust and
helping to make a sometimes stressful process as comfortable as
possible.

We will start by discussing openly and frankly
about whether or not the time is right for you to buy or sell your
home. As Larry mentioned, I encouraged many people not to buy while the
bubble began to deflate and I also encouraged many to sell as I felt
the peak neared. I continue to give advice that many would not expect
from a real estate agent regarding home ownership. It is frustrating to
see hard working; honest people lose their homes to foreclosure. It is
equally disheartening to see those that did everything that they were
told was right by those acting in self interest struggle for years to
sustain ownership as a result of the bubble. The stress that people are
going through and the strain it puts on families is a sad result of the
bubble and the lies that accompanied it. For me as for most, family is
the most important thing, as it should be; I work hard with my clients
to make sure that they understand that owning a home can be a great
thing, but only if the cost of their home still allows them to have
time for their family.

I approach every negotiation I enter
on behalf of my client as if I were negotiating for myself. I often
advise my clients “If I were you….” The advice I provide is my honest
opinion based upon years of real estate education and IHB principles,
and the course of action I recommend is the one I would follow if I
were in your circumstances. My goal is to see you in a comfortable home
you can afford, and you will always get my best effort to that end.

I
am drawn to the IHB because I share the commitment to excellence and
the desire to educate people that makes the IHB a trusted resource. I
want you to understand the realities of the real estate market,
property negotiation, and the behavior of parties in the transaction.
The more you know, the more empowered you are to make a good decision,
and the more comfortable you will be with the outcome.

Shevy Akason — Ideal Home Brokers

Credentials:

  • Bachelor of Arts – Claremont Mckenna College 2003
  • Real Estate investor since 2004
  • Academic All American (basketball) – NDSCS 2001
  • Associates Degree – NDSCS – Business Administration 2001

As
a competitive person I enjoy sports, team work, and a challenge. As a
result I have enjoyed real estate ever since I can remember. The recent
bubble was frustrating for me as I know it has been for many others. I
was happy when I started reading Larry’s blog posts and realized that
there were others out there that shared my views.

As a result
of recent bubble that was particularly severe in California as compared
to other areas of the country by 2004 when I was ready to start my real
estate career, I invested in cash flow real estate out of state and
took advantage of the low interest rates by getting 30 year fixed
loans. This allowed me to stay involved with my primary real estate
interest on a small level while I started a construction company with
the hope that what I learned would add value that I could translate
into my real estate career when the time was right.

Since
late 2007 my focus has been real estate and helping people to navigate
through today’s market. I am proud to be associated with Larry Roberts
and the IHB’s values and principles. In addition, I am proud of the
track record and the real estate business that I run. I pride myself on
giving people a clear picture of the market and helping them to feel
comfortable with the biggest decision of their lives while working
through what can be a challenging process. I look forward to working
with Larry provide a valuable alternative to the average residential
real estate company.

Thank
you again for sticking with us through these introductory emails. You
should have a good idea of the kind of people we are. We look forward
to working with you.

Sincerely,

Shevy Akason

When you are ready…

sales@idealhomebrokers.com