June 15, 2022 by Edwin Baloloy

June Market Update for Chapman Commons, The Domain, Harbor Lofts and Stadium Lofts

Click on the video above to see how long it’s taking to sell in your community: Chapman Commons, The Domain, Harbor Lofts, and Stadium Lofts.

While some communities are showing only a short time to sell, we can expect that number to take longer as inventory skyrockets due to seasonal cycles, higher interest rates, and some agents and their sellers being out of touch with the current market conditions.

Overall, the City of Anaheim saw its active inventory increase by 60% in May compared to the prior year.

More listings on the market gives the current pool of buyers more choices. Sellers might be tempted to simply list at the last price sold in their building. While that may have worked back in March, the market simply offers more selection where a superior home (or even brand new) may be available.

The Domain saw 4 active listings on the market during the weekend of June 11th. That was the first time 4 condos were listed at the same time in years. A total of 5 new listings hit the market for the last 30 days for The Domain. 2 listings have already exceeded 30 days on the market with one price reduction.

Throw in the effects of disclosing a litigation settlement (The Domain), a messy condo cert, or impending litigation (Harbor Lofts), then the need for a condo specialist really becomes crucial to maximize your price.

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April 27, 2022 by Edwin Baloloy

Top 3 REAL concerns & risks when selling with litigation

I created a prior blog a while back on whether or not selling as “CASH ONLY” was a good idea due to HOA litigation. Make sure you see that blog and watch my video where I interview a lender who deals with litigation loan submissions.

This blog relates to when HOA’s decide to take formal action against their homebuilder for construction defects. There are other types of litigation including when the HOA is the defendant, but we’ll just stick to this type where the HOA is the one seeking compensation from the builder.

In the video above, I cover (3) phases where litigation can affect your condo’s marketability and ability to sell:

Pre-litigation – formal requests have been made to the homebuilder and the builder has not agreed to the requests. They may have responded with a solution and the association hasn’t agreed to the terms or amount. A dispute now exists and it has been announced to the members of the homeowner’s association. A legal firm may or may not have been retained at this point. If a legal firm has been hired, they usually will write a formal letter to the homeowners.
During litigation – a formal lawsuit has been filed with the local courts. An attorney is usually retained by the homeowner’s association. A formal letter is distributed to the homeowners stating that litigation has been filed.
Post litigation – an outcome has been reached from #2 above. In most cases, it’s a settlement and a new letter is created to distribute to the homeowners.

Although many associations will encounter the above as a progression where you complete all 3 above, keep in mind that pre-litigation can result in an agreement reached without having to do a formal filing or the association deciding not to pursue their claim.

All 3 stages above can affect a Real Estate sale:

Potential buyers can get scared off – when buyers read the attorney letters, formal filing, or even hear verbally about the litigation, it’s often not explained well. This leads to buyers getting scared off in some instances. The buyer who might have been willing to pay the most might be one of them.
Lenders may decline loans – during litigation in The Domain and Stadium Lofts communities in Anaheim, their real estate sales consisted of many that involved loans. Some lenders were able to do them, and some declined the loans due to the litigation making them more difficult than a condo without litigation. However, a BIG change happened to the way condo loans are done in January 2022. Fannie Mae and other “GSE” lenders have made their condo approval more rigorous. The prior “condo cert” had a questionnaire of one page. The new questionnaire is 8 pages (9 pages if text overflow is needed. This is leading to loans being declined even in post litigation condos.
You may have to sell for less (or not be able to sell at all.) – You may say, “well, duh…” after reading 1 & 2 above. It doesn’t take a genius to figure out that if you eliminate a signifiant portion of buyers by scaring them off or having them not eligible to obtain financing that you end up with just cash buyers. Furthermore, I’ve seen instances where a condo sold earlier for $480,000 without any litigation being disclosed and the new seller facing litigation tries to sell a similar unit for $480,000 with no luck.

What are the solutions to avoid these risks?

A. Hire an agent who has numerous closings with HOA / builder litigation. They will likely know certain strategies for marketing, how to properly disclose the litigation, and when to disclose. They also know how to properly explain it to potential buyers and their agents. Personally, I try to have discussions with local agents and many liked the way I explained the litigation so much, they asked their buyers to call me or visit my Open House so I can explain it without anything lost in translation.

B. Get the condo approved upfront. The agent in A above likely will have lender contacts who specialize in condo sales. They can obtain the condo approval before marketing the property. While your buyer will be free to use any lender they want, it would be nice to have a “rescue lender” waiting in the wings.

If you have any questions, you can call Edwin Baloloy at 714-501-2732.

November 23, 2021 by Edwin Baloloy

Harbor Lofts in Anaheim – Last 6 months of sales and rental activity

For the Harbor Lofts in Anaheim, the 2nd and 3rd quarters saw prices increase as 9 units were listed and 3 sold.

St#	St Name	L/C Price	Br/Ba	Sqft	DAYS ON MARKET
435 W	Center Street Promenade #304	$550,000.00	3/2	1413	4
435 W	Center Street Promenade #332	$615,000.00	3/2	1547	12
435 W	Center Street Promenade #309	$625,000.00	3/2	1547	28

Before you get excited about the appreciation in the Harbor Lofts, make sure you’re aware the graph above is deceiving. This metric being used is “median sales price”, which can change drastically if the majority of condos sold are the larger 3 bedroom units. While values have definitely increased over the last year, it might not be appropriate to simply think all units went up by 24%.

Harbor Lofts Rental Report – Year-to-date 2021

St#	St Name	Br/Ba	L/C Price	Sqft	Term Started
435 W	Center Street Promenade #417	2/2	$2,700.00	1547	08/26/21
485 W	Center Street Promenade #116	2/2	$2,800.00	1528	07/08/21
435 W	Center Street Promenade #324	3/2	$2,850.00	1547	05/24/21
435 W	Center Street Promenade #423	3/2	$3,050.00	1547	03/15/21

Nearby Apartment Rates – as of Nov 23, 2021

Lex CTR City – $1,832 (611 sq ft studio) to $2,804 (1,188 sq ft, 1 bedroom, 1 bath)

Mix at CTR City – $2,763 (1,147 sq ft, 2 bedrooms, 2 baths) to $3,261 (1,360 sq ft, 2 bedrooms, 2 baths)

November 21, 2021 by Edwin Baloloy

Seeing nothing for sale? Anaheim Condo listings drop nearly in half compared to Oct 2020

*41% less listings compared to an already-low 88 homes for sale in October last year.*

*Prices continue to climb for Townhomes and Condos in Anaheim. Source: Pacific West Association of Realtors*

The top chart shows that closed sales dropped in half compared to October 2020. Less listings for sales translates into less pending sales. Less pending sales eventually leads to less closed sales as buyers still continue to flood the market with multiple offers on whatever is left. Condos and Townhomes are selling quicker: 20 days on average compared to 22 days the year prior.

For my own buyers, I have definitely reduced my showings with clients. In 2020, I can often show multiple properties to buyers in the sub-700,000 price range every weekend. Today, it’s common to skip entire weeks with clients as nothing shows up on their reports.

For the local mid-rise communities, even the most active selling buildings, the Stadium Lofts and Chapman Commons will often have instances where there’s literally nothing for sale. What a sharp contrast to when I’ve seen prior spans where more than 10 condos would be in active status.

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