Description

Inside this issue:
Happy Holidays 1
“I Want to Buy an REO” 1
Market Snapshot 2
Market Summary 2
Client Testimonial—
Marinovski Family
2
The Great Bailout of
2008: Follow the Dollars
3
Updated Neighborhood
Statistics
4
Share The Newsletter 4
Property Taxes Due
Dec 10
4
Catton Properties Joins
Sereno Group
4
December 1, 2008
Volume 3, Issue 4
Quarterly Review
N i c h o l a s F r e n c h , B r o k e r A s s o c i a t e , C R S
I am sure we agree that 2008 will not be a year soon forgotten: from the stock market and financial collapse,
to the government nationalizing of the banking system and the national housing bubble affecting
the masses and finally the confirmed recession. There sure are plenty of events to hang our head in
shame, but there were also some inspiring events like the Beijing Olympic Games and the Presidential
election. This is a great time of year for reflection on the many events that have touched your family and
an opportunity to appreciate what we have and how we can enrich our lives further.
I am grateful for my family, health and friendships. Though it is easy to take for granted I feel fortunate to
have such strong relationships with my family and friends. Especially during the holiday season, I guess it
is a convenient time to reflect, I want to express my humble gratitude for your support and confidence
this year with my health and business.
We will take the challenges at hand whether in business, family or community and do what we can to
improve our quality of life for our family, friends and neighbors. I wish your family a healthy and prosperous
2009.
Happy Holidays
Nicholas French
Broker Associate, CRS
369 S. San Antonio Road
Los Altos, CA 94022
650 773 8000 (cell)
650 247 2999 (office)
650 947 3099 (fax)
nick@realtornickfrench.co m
www.realtornickfrench.com
Whether over the water cooler, intranet posting or blog, you may be seeing the REO frenzy and saying, “I
want to buy an REO too”. I will make a few assumptions that you are probably using for your rationalization:
1) REO prices are much lower than comparable properties 2) They are easy to buy in the current
market climate 3) The house will be ready to go. There is no argument that REO (real estate owned) properties
are prolific in some of our local neighborhoods, but what is important to know is that these properties
have gone through the foreclosure process and generally were not purchased during the short sale
and auction process. This is typically because these properties are either in less desirable areas with few
buyers, the condition is poor or in some cases the property is too far underwater on financing. In any
case, once the bank receives the property there is little to no improvements or clean-up on the property;
literally I see homes with the previous owner’s mail and food still in the refrigerator, there are few disclosures
about the property and neighborhood and the bank contract often takes away buyer’s rights that
are found in our local real estate contracts. I share my view with clients that if a particular property,
which happens to be an REO, is priced below comparable properties it is mainly because the condition is
poor, it does not show well, or there are less qualified buyers in the neighborhood. If there are two similar
properties side be side relatively the same whereas one is a standard sale and the other is an REO the
price should be similar and the non-REO property should be easier to negotiate. Banks located in Wisconsin
dealing with local properties do not have the wherewithal or motivation in most cases. For more information
please feel free to contact me directly at nick@realtornickfrench.co m or 650 773 8000.
“I Want to Buy an REO”
Santa Clara County Foreclosure Statistics
Year Notices of Defaults New Trustee Sales REOs SOLD
2008 9817 5906 3290 229
2007 4314 1124 869 137
2006 1998 582 69 86
Source: The BlueSheet, Oct 08
Approximately 56% of the cu