Jan Skrentny

One of the things that I am proud of is that over the past five years, during this time of real estate frenzy and fizzle, none of the homes that I put buyers into have gone into foreclosure or been repossessed.

Now please understand, a real estate agent in California cannot tell a buyer how much to offer for a property much less what to buy or not buy. But we can show you comparable homes, point out trends in the market, prognosticate (that’s an educated guess) on the future of the market.

During the peak of the market everyone was sure that anything they bought would double in price in no time at all. But what if it didn’t? What if the property lost value because it was too overpriced to begin with. Could you still afford it?

I believe a good agent has the moral obligation to steer clients away from disasters.

The investment in a first or second home is not just financial; it is a life style investment. How much enjoyment will this property provide you and your family often weighs more than how much can I make from the property.

This is remarkable because listings (representing a house for sale) are the lifeblood of real estate agents.

The owner is a woman on social security. She lost her husband to cancer two years ago. She has five dogs (four English bulldogs) that she loves and breeds. Her husband was an avid gardener but since his death she is having a hard time keeping up with the garden, the house, even the animals.

In this market a new listing has to be both well priced and well presented; there is too much competition for buyers to think “okay” is okay. I told the widow to make a plan to have the house and yard fixed up, the interior simplified, and an area developed for the dogs to reside when the house is being shown. I gave her the name of a trusted handyman who could help her do some of these things.

We developed a strategy so that by spring of next year the house will be ready for sale. The seller may have to spend some money to make the changes but it will greatly improve the sales potential of the house and the return on her investment will be rewarded many times over.

You only get one chance to make a good first impression – that’s especially true in this real estate market.

I spent the afternoon looking at “repoes” – bank-owned repossessed homes.

I have several clients who are interested in buying up good homes at very good prices. There is a formula to it: With 20% down the price has to be low enough so that when the house is rented - the rent will cover the mortgage, taxes and insurance. Ideally there should be a little left over to cover repairs.

The point? Say you get a three bedroom two bath for $130,000 (this is possible in the mountains). You put $26,000 down, finance $104,000.  It’s an investment property so the bank rate will be higher than on your home loan, so say 7 ¼%. On a 30 year fixed that is $716.00 a month. Taxes are 1.5% of the purchase price or $1,950/ year - $162.50 a month. Insurance varies but say $800/ year or $67 / month. Total cost: per month: $945.50.

A good house will rent for $1,000 to $1,250 up here.

Four years from now when the market is strong again the home will sell for over $200,000. Your $26,000 investment, after cost of sale (commissions and costs) will net you $52,000 - tripling your money.  Hard to beat at any bank.

The problem? Most repoes are not in good condition. They are troubled, I call it “home-abuse;” technically it is bad or no  deferred maintenance.

That’s why I spent the afternoon looking. Good repoes are hard to find. You have to look hard and act quickly when you find one.

But that’s how money’s made in a bad economy. One Repo at a time.

Every Thursday morning hundreds of real estate agents in the Lake Arrowhead area get up early to ready themselves for the rigors of…”Touring” otherside known as “Agent’s Tour Day.”

This is the day we go out to see new listings. Often times the listing agent will serve food or have a drawing for dinner, bottles of wine, Angels tickets in an effort to attract agents to see their listing. Why would they do that?

Well, you see, usually, agents sell you your home. You give them the criteria: number of bedrooms, garage or not, on the lake and they make the choices of what you’ll see or not see. Some of the big companies prefer to show you just their listings – they’re big, have big overhead and you get the picture.

Smaller agencies are inclined to show you everyone’s listings. Agents are your gate-keepers of information. And in real estate - information is power.

On Friday mornings some of us tour Crestline listings – that is a neighboring community. There are not as many of us because Crestline prices aren’t as high and therefore neither are commissions. You get the picture again, I’ll bet.

The motto of one agent from a big company is: “I’ll drive anywhere.” And she does. She’s a very good agent. You really want a very good agent to represent you – it’s just finding her or him that’s the trick.

…it’s hard to find these days; nearly impossible in the cities or suburbs.

Maybe you have the special sound-proof room or you just put on the noise canceling earphones and sleeping mask and imagine you’re in Montana.

Well, I can get it for you and it’s much closer. Two hours from Los Angeles, or Palm Springs, or Newport in the Crestline, Lake Arrowhead area, in the San Bernardino Mountains, at the end of a narrow two lane paved road vast vistas of Lake Silverwood, across a stream, onto a dirt road, at the very end is a magnificent home/estate – just under 6,000 square feet with a 1,300 garage on five acres – what started our being a moderate cabin has been tastefully expanded into a rustic estate dedicated to solitude.

You can even walk around in it. Feel the Blue Jays and Chickadees, the squirrels and coyotes gazing quizzically at you like, “what are you doing out here?”  You’ll make the most noise you’ll hear. And when the wind blows through your valley and the oaks, cedars, pines and fruit trees rustle strongly, even your sounds will be lost to the solitude.

Not for everyone, just for the lucky, just under $700,000.

I was playing tennis with some friends at Lake Arrowhead Country Club this morning, about as pretty a tennis setting as you can imagine, surrounded by mountains and towering trees, blue sky… the usual beautiful stuff. It was sunny and warm with a cool breeze and it felt just like summer in Maine. That sometimes happens here in summer, it happens all the time in the fall. Our Indian Summers are sensational even without indians.