This image provides an example of the types of sales in French Valley Winchester California for the previous 30 day period.

1)      Foreclosure properties. When a bank has taken a property back they refer it as Real Estate Owned or REO. When a borrower has missed several payments, the note provides a mechanism whereby a trustee authorizes the sale of that home at public auction (called a Trustee’s Sale) – the proceeds of which are applied to the outstanding balance of the note. If a minimum “reserve” amount is not met at the auction and it does not sell, ownership of the property is transferred to the lender and it becomes an REO.  REO  properties represent about 31% of the sales last month. Since ownership is clear and the bank’s decision maker has already been assigned to liquidate the property, these transactions can typically close 30-45 days from the acceptance of an offer.

2)      Short Sale properties. When the home owner wants/needs to sell but there is not enough equity in the property to pay off the note(s) and the seller’s closing costs, the seller (through the listing agent) petitions the bank(s) to release the lien(s) on the property and the liability for the note for an amount that is less than the remaining balance on the note. The seller may or may not be in default on the note (if they’ve missed more than 3 payments). Because additional approvals need to be obtained from the seller’s lender, the seller will accept a purchase offer “Subject To” Short Sale approval(s)). Because the seller’s acceptance of an offer typically indicates the beginning of the approval process with the seller’s lender, these transactions can take 3-6 months to close. It’s also possible that the seller’s lender will not approve the Short Sale at all. Short Sale  properties represent about 35% of the sales that closed last month.

3)      Standard Sales. These can be broken into 2 groups. (Data on New Home sales is not always entered in the Multiple Listing Service database and represents a fairly small percentage of sales. So, it will not be addressed in this discussion.)

1. Standard, Owner Occupied, home owner sales. The owner has equity and is able to negotiate his own selling price. The owner is likely still living in the property. This was the “norm” up until 5 years ago. These transactions can typically close 30-45 days from the acceptance of an offer. These  properties represent about 8% of recent closings.
2. Corporate owned. An investor has purchased a property (either at a Trustee’s Sale or from a bank as an REO in need of repairs). They typically put in new carpet and paint, make any other necessary repairs and then sell it right away. They, like the traditional standard home owner sale and the REO, are looking to sell for as much as the market will support. The owner has equity and is able to negotiate his own selling price. These transactions can typically close 30-45 days from the acceptance of an offer. These  properties represent about 22% of the recent closings.

So What’s the Difference??

I actually got some unexpected results while doing the research for this article.

My assumption was that Short Sales would be “trading” for a little less in the market because of the difficulty associated with them on both the buyer’s side and the seller’s side. I was surprised to find out that they’re keeping pace with the REOs. As expected, Standard Sales (which have either been maintained due to pride of ownership or have had a corporate investment made in paint and carpet) are trending higher than REOs and Short Sales.

This chart represents sales in Temecula and Murrieta California that were 4 bedroom 3 bath and less than 3,000 Square Feet.

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David Northup - Broker, Realtor®, Owner
Aim Real Estate Group Inc., Temecula Real Estate
“Providing Direction For Buyers and Sellers”
Delivering “Raving Fan” Customer Service in the process
**Buyers – Contact David for a list of available homes!
**Sellers – Let me provide you with a comparable market analysis that will give you an idea of your home’s current value. Even if your home’s value is less than the amount you owe, we can still typically make arrangements to sell your home at little or no cost to you.

Call me at (951) 326-0196 or choose one of these other ways to connect with me . . .

*** All information/opinion offered is deemed reliable but not guaranteed. CA DRE License # 01802944 ***

The past 5 months have been slower in volume than last year by almost 10%.  Previous months sales were 84 compared with 92 during the same time period in 2010. There seems to be some significant amount of inventory not being released by banks with REO properties.

As for Average Price and Days on Market: The average price in French Valley has remained pretty flat over the last 24 months with the actual figure for last month coming in at $241,000. The Days on Market continues to dance around quite a bit. I believe it’s just a matter of how many short sales actually closed in a given month that causes it to swing up so dramatically.

Finally, here is a look at the different types of sales in French Valley over the last 30 days.

For more information on the different types of sales in our local market see our article:
What you should know about REO vs Standard vs Short Sale

For more about French Valley Click Here for French Valley Articles on our site

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************** 25% commission rebates through December 2011 – More Savings $$$ *********************

David Northup – Broker, Realtor®, Owner
Aim Real Estate Group Inc., Temecula Real Estate
“Providing Direction For Buyers and Sellers”
Delivering “Raving Fan” Customer Service in the process
**Buyers – Contact David for a list of available homes!
**Sellers – Let me provide you with a comparable market analysis that will give you an idea of your home’s current value. Even if your home’s value is less than the amount you owe, we can still typically make arrangements to sell your home at little or no cost to you.

Call me at (951) 326-0196 or choose one of these other ways to connect with me . . .

*** All information/opinion offered is deemed reliable but not guaranteed. CA DRE License # 01802944 ***

Property Description:

Great opportunity to put your finishing touches on a great Van Daele home in French Valley.

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Property Description:

Beautiful two story home in Murrieta. This home features 4 bedrooms and 3 baths with 1 bedroom and bath on the ground floor. Master bedroom features a sitting area and fireplace with views from the Santa Rosa Plateau to the north-west to the Palomar Mountain Range to the south. No neighbors directly behind, instead enjoy a very private block wall and nice views of the community park from the second story windows. Peace and tranquility await the lucky buyer.

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ONE OF A KIND! This home is exquisite. This home comes with lots of upgrades. Starting with the outside you can see the front yard is beautifully landscaped. The backyard is where this home truly shines. From the custom pebble tech, triple dancing light show, saltwater, fully digital, solar system, to the custom built in table to entertain the best. You’ll sit by the built in fire pit that a large group could enjoy. With a 6 pillar custom patio cover overhead you can get out of the sun and into some shade while enjoying all that the backyard paradise has to offer. This home offers a 3 car garage and an extra work area inside the garage. Their is plenty of space to park cars and still have room to work in. Granite counter tops, crown molding, bass wood shutters, this home has over 100K of upgrades. This is a great family home that is move in ready especially with summer approaching.

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Wonderful home in a beautiful Murrieta community. This Corner-Lot home boasts 4 bedrooms, 3 1/2 baths in 2,618 SF of living space and a 3 car (tandem) garage. Plenty of Murrieta/Temecula amenities nearby. No HOA! This one will not last long.

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