Many of the new Santa Barbara area listings that come on the market every week are foreclosures (or REOs). In recent years, home buyers have become more aware that buying an REO property, while not always the most simple transaction, can be a good way to get a great value. Especially since REOs are often not in pristine or “move-in ready” condition, the first question on most home buyers’ minds is, “How much less than the asking price can I buy this home for?”
Since this question comes up so frequently, lets look at the research, which is surprising. Of all the homes sold through the Santa Barbara local Multiple Listing Service (MLS) between Carpinteria, CA and Goleta, CA, 229 homes have been sold as REOs. Although foreclosures are generally thought of as small, run down houses, they can actually be any type, size or condition of property, which is reflected in their price. These 229 listings sold for anywhere from $65,000 for a 2 bedroom/2 bathroom mobile home to $4,200,000 for a 4 bedroom/5 bathroom estate.
Out of all the foreclosures, the best discount received was about 26% off of the original asking price. On the other hand, another home sold for 121% of the original asking price. There are many factors that determine the final price, but one that is not always a good indicator is actually the original price. For example, the mobile home mentioned above was originally listed for $69,000; thus, it sold for about 94% of the original price. The estate that sold for $4.2 million originally came on at $4.9 million; this represents a 86% sale to list price ratio.
So those are the extremes, but let’s look at the averages. With 229 listings in our sample size, the general belief is that Santa Barbara REOs usually sell for below an already discounted asking price. However, the data shows that the average for all the listings in our sample is 99% of the listing price. So now we know that the average foreclosure will sell for almost exactly what the original list price is.
Another factor people often look at is the number of days a home has been on the market. It is true that the REO’s that sell quickly tend to be the more desirable, nearly always have multiple offers, and often sell for more than the asking price. In the sample data, over half of the 70 homes that were on the market less than two weeks went above the asking price. At the other end, however, every one of the 74 homes that were on the market for more than 60 days went for below asking price.
So there you have it. If you are looking to buy a foreclosure in order to get a bargain, and you want a sure thing, look at the ones that have been on the market the longest.
Do you have specific questions about foreclosures or short sales? Contact Daniel Zia and the Zia Group team by email (Daniel@ZiaGroup.com), phone (805-637-7148), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Santa Barbara MLS and set up a customized email-based home search for you to track foreclosures and other homes in Santa Barbara for sale at your leisure. Thank you for visiting the Santa Barbara Real Estate blog and we look forward to serving you and your real estate needs.
This new Mesa REO (Bank-owned property) just came on the market and it is a great value for any Santa Barbara home buyer looking for something affordable and close to the beach. This turn-key home is only 1 block from beach access and popular Shoreline park, and the entire house has been updated with features like granite counters, stainless steel appliances, a recent bathroom remodel, and lush tropical landscaping. The garage also appears to have been finished out as additional living space at one time complete with drywall, electricity, new windows, trim, etc. This property was last listed for sale in 2009 for $1.049 million and is currently listed at $748,680. To demonstrate the value of this property, no homes have sold on Shoreline Drive for under $1 million in the last 5 years and many of the bluff-front homes have ranged all the way up to $4.5 million: Shoreline Drive Sales for past five years.
Please Click here for the full MLS listing details and photos for 1514 Shoreline Drive.
Thanks for visiting the Santa Barbara Real Estate Blog. Visit www.TheZiaGroup.com for your comprehensive Santa Barbara, Montecito, Goleta, and Carpinteria resource. If you have any questions regarding this property or other Santa Barbara homes, contact Daniel Zia today at 805-679-7148 or Daniel@ZiaGroup.com.
There are two REO’s (Bank-owned properties) that just recently came on the market which we wanted to make all of our clients aware of as they are sure to sell quickly.
569 Sweet Rain Place is a Storke Ranch townhome which just came back on the market yesterday, and currently is the lowest priced home in the development at $473,350. With 3 bedrooms, and 2.5 bathrooms, this home offers a great location, newer construction, and excellent square footage for the price. This property has great proximity to USCB, Costco, an the beach and they make great rentals as well to younger families, USCB faculty/staff or students. This townhome also offer a 2-car garages, a private yard, and great shared community amenities like tennis courts and pools in the development. You can find the full details here: 569 Sweet Rain,Goleta, CA 93117.
7769 Wagon Wheel Drive is a large 5 bedroom, 3 bathroom single family home in Winchester Canyon (North Goleta). This property sold for over $1.1 million in 2005 so the current asking price of $610,000 is an incredible value. This is a rare opportunity to buy a large home located in arguably the most desirable high school in the area: Dos Pueblos High School district. Full property details are located here: 7769 Wagon Wheel, Goleta, CA 93117
If you are interested in either of these Goleta REO’s please contact Daniel Zia (805-637-7148, firstname.lastname@example.org). Daniel and the rest of the Zia Group team are ready to assist you in your Montecito home search. You may also visit our website www.theziagroup.com for detailed information on Santa Barbara Neighborhoods as well as many helpful resources such as Automatic Email Home Finder. Thanks for visiting the Santa Barbara Real Estate Blog.
There are currently some excellent Santa Barbara real estate values under $600k, as this is one of the best times of the year to purchase a home in Santa Barbara. Given the Holiday season, most buyers and agents are either distracted, have put their home search on hold, or are already out of town. As a result, many of the excellent deals that come on the market around this time of the year get missed by the vast majority of the buyers. Already, two of my clients have picked up properties at prices that I haven’t seen in the last couple of years.
Here are some of the top Santa Barbara home values:
- 3/2 downtown (just two blocks from state street) house for $389k! EXCELLENT value
- 2 bed house on the mesa for $630k
- 3 bed house in the Samarkand for $601k
- 4/2 bath house currently set up as two, 2/1 units (duplex) in Mission Canyon with ocean views for $599k
- 3/1.5 house in San Roque for $599k. Bank has approved the short sale at $585k
- Condemned house on a good location in the Westside for $279,900. Sold for lot value, but lots of potential for building a nice home and ending up far below market value
- 5 bedroom home in Kellogg school district, REO, for $599k
Here are the full listing details for these 6 properties: http://www.flexmls.com/link.html?romijdvuvee,1,1
If you have any questions, or want to schedule an appointment to view any of these Santa Barbara houses, please contact me ASAP at 805-637-7148 or by email (Daniel@ZiaGroup.com). Or continue your Santa Barbara real estate search on our customized and free Santa Barbara MLS search tool this weekend at www.theziagroup.com.
In July, the Zia Group brought the right buyer for this great Santa Barbara Mesa REO property. Finding this type of housing in Santa Barbara can be challenging at times, but this transaction proved that patience and diligence pay off when good opportunities arise. This property was featured on the Santa Barbara Real Estate blog as an “REO Alert” back in May.
Here is what our client had to say about his experience working with the Zia Group:
“As a real estate professional of over ten years, I was impressed with Daniel’s recollection of our specific needs, the names of the members of our family, and of course bringing to us the right property. His command of the principals of real estate investing, his professionalism, and his integrity are impressive, and a rare combination in this industry today. Additionally, Daniel’s patience is unwavering. It took us 16 months and countless offers (>10) to secure a property here is Santa Barbara. At no point in time did Daniel waver in his generosity with his time and sage advice. In fact, he kept encouraging us even when we felt discouraged with our prospects. Once finally in escrow, Daniel kicked into overdrive to meet the aggressive closing schedule and challenging financing environment. We even through in a curve ball and went on vacation during escrow! I wholeheartedly recommend Daniel and his dedicated support team to represent his clients’ as a bona fide fiduciary. You will truly be in “good” hands” – John M.
The Zia Group is fully prepared to assist you in buying a home in Santa Barbara. Our dedicated team of real estate professionals is prepared to assist you make your next Santa Barbara home purchase or sale. If you would like more information, please contact Daniel Zia (805-637-7148 – Daniel@ZiaGroup.com) or visit our website at www.theziagroup.com. Thanks for visiting the Santa Barbara Real Estate Blog.
Finding a home in Montecito that is being sold around $1 million is rare enough, but to find one of this quality is definitely worth highlighting. This bank owned property at 1915 Barker Pass Rd is currently priced at $1,050,600, which is well below what similar properties in Montecito are selling for. The home is sitting on a great 1/3 acre lot and features a beautifully remodeled kitchen, vaulted ceilings, 4 bedrooms, and 3.5 bathrooms. There is nice hard-scape and landscaping surrounding the home, a 2-car garage, and plenty of other off street parking.
If you would like more info or pictures on this property or any other Santa Barbara home please contact Daniel Zia (805-637-7148) (Daniel@ZiaGroup.com) or visit our website at www.theziagroup.com. If you would like to subscribe to the Zia Group’s REO email list to stay updated on all of the current bank owned properties in Santa Barbara then please follow this link on our website: http://www.theziagroup.com/Weekly-List-of-REOs.php. Thanks for visiting the Santa Barbara Real Estate Blog.
Homes that are being sold as a “Short Sale” are often an absolute nightmare for all parties involved in the transaction process. Santa Barbara short sales are properties which are currently in the process of foreclosure, and in some cases it can take 8-10 weeks (or more) to get the banks final approval on the sale of these type of properties. That is why the Zia Group is so pleased that to bring our client this beautiful Santa Barbara short sale property on Micheltorena Street while waiting only 1 week for the banks approval on the sale. While it is very unfortunate for the Seller that such a beautiful home should fall into foreclosure, we were very happy that we were able to find the right buyer and bring the closing process together in such a short time.
Buyers comments on working with the Zia Group – “Daniel was always a step ahead of each of the many obstacles current buyers are met with. He had a ready list of competent tradesman for the numerous reports and inspections that are required, and scheduled all of them as if directing a well-practiced orchestra! We will recommend Daniel’s services to friends and family, feeling confident in his patience, professionalism, and fully deserving of our trust.” – The Ray’s
The Zia Group is fully prepared to assist you in buying a home in Santa Barbara, whether it’s a tricky short sale, or a Santa Barbara REO, we have the experience and expertise to deliver results. If you would like more information on Santa Barbara Short Sales or if you would just like to get more information on a specific property, please contact Daniel Zia (805-637-7148 – Daniel@ZiaGroup.com) or visit our website at www.theziagroup.com. Thanks again for visiting the Santa Barbara Real Estate Blog.
This is a unique opportunity to own the San Roque estate that was once home to the Jordano family who founded the well know national food and beverage distribution company bearing their family name. This classic hacienda style estate built in 1948 has 3 bedrooms, 3.5 bathrooms, beautiful hardwood and Spanish tile floors, custom tiled pool, detached 4 car garage, and horse facilities. At $1,795,00, this Santa Barbara REO, presents an excellent value on a truly unique offering as these type of old world estates are extremely rare in San Roque. While the estate offers privacy and seclusion you are still only a short distance away from the shopping, dining, and amenities on Upper State street including the YMCA, Santa Barbara Pack & Post Office Solutions, Whole Foods, and Trader Joes.
If you would like to get additional information about this property or any other Santa Barbara Homes please contact Daniel Zia (805-637-7148 – Daniel@ZiaGroup.com) or visit our website at www.ZiaGroup.com. Thanks again for visiting the Santa Barbara Real Estate Blog.
This has been a very busy week for great values in the Santa Barbara real estate market (see previous property posts from this week). This great Upper East listing just came on the market. It is a bank-owned REO, located in one of Santa Barbara’s most desirable (and expensive) neighborhoods that still offers great access to downtown, the historic Mission Santa Barbara and beautiful surrounding architecture with numerous homes with stunning old-world charm.
-3 bedroom (technically 2+ den) 2 full baths, and a detached bonus room w/ extra half bath.
-The current listing has it advertised as 1538 SF, but a past listing (perhaps including the bonus room and half bath) had it listed at 1909 SF.
-Spanish style home built in 1934 with some beautiful features to restore
-$729,000 list price
The last bungalow (REO) in this part of town (two short blocks away on a busier street) had multiple offers within a few days and sold for 6% over the asking price ($720,000). That home was a much smaller 3/1 (only around 1100 SF) with no detached “studio”. As such, we would expect this one to sell quickly.
If you have any questions, would like additional photos and property information, or want to schedule an appointment to view the property, please contact me ASAP at 805-637-7148.
If you are interested in other Santa Barbara REOs, contact Daniel Zia (805-637-7148) and the Zia Group team. We are ready to assist you in your Santa Barbara real estate search.Visit our comprehensive Santa Barbara real estate website at www.theziagroup.com and thank you for visiting the Santa Barbara Real Estate Blog.
This property is one of the best values in Santa Barbara’s desirable San Roque neighborhood. It’s a fixer-upper, with lots of upside potential, listed just under $625,000. The Spanish style Santa Barbara home is a 3-bedroom, 1-bathroom and has been reduced over $25,000 from it’s original list price before it fell out of escrow. The kitchen has been torn down to the studs (probably before it went into foreclosure and became an REO–bank-owned property) so it may not qualify for traditional financing (a construction loan or all cash could been needed).
This Santa Barbara REO went into escrow quickly when it was originally listed so anyone with interest should contact the Zia Group for full listing details and photos. Thank you for visiting the Santa Barbara Real Estate Blog. Please contact Daniel Zia (805-637-7148) for any of your Santa Barbara real estate questions.