Live Lake Forest

In current California real estate contracts designed by the California Association of Realtors there is a paragraph that commits the parties to arbitrate their differences instead of going to court.  This is only a commitment if both parties initial it. 

Many agents were taught by their managers or brokers to advise their clients to “just initial it”, so that if there is a future disagreement, it will be resolved “more quickly and at less cost.”  For agents who follow that instruction, they are likely breaking the law by giving legal advice without a license (unless they are an attorney!)

Julia Wei, a real estate attorney in San Francisco who publishes real estate related legal insight on her “Dirt Law” blog explains that “the safer course of action would be to reject the arbitration provision.“

Since I am not a lawyer, when my clients ask if they should initial this, I direct them to Julia’s post, or suggest they get their advice from their own lawyer!

Thanks for reading!

Between downpours, I decided to venture out to check the new homes that just opened at Summit Crest.  I had (mistakenly) thought that they would have decorated models to walk through, as well as price lists to review.  NOT yet!  Finished models are still about a month away, and pricing has not yet been finalized.

For now, the sales office is in a trailer where the sales agents are available to put your name on an interest list, hand out brochures, and Summit Crest Site Plan, and answer some questions.  I did find out that the HOA dues are projected to be $214 per month, and that the assigned schools are Lake Forest Elementary which is the closest one to the neighborhood , Serrano Jr High, and El Toro High School.

Tip-toeing through the mud, I went inside each of the half-finished models.  With brochure and floor plan in hand, I was able to figure out which rooms were which, although I had to think backwards because the layouts are all reversed from what shows in the brochure.  I really like the master bedrooms in all the plans as they are all good sized, have large bathrooms attached, and very generously sized walk-in closets.

My favorite plan is the “Plan 1″ which has 3 bedrooms and a loft (optional 4th bedroom) and about 2450 square feet.  The unique feature of this house, is that the garage is set at the back of the lot, requiring an extra long driveway to access it.  If the CC&Rs don’t restrict them, I imagine this long driveway will be used as a basketball court by many of the homeowners.  You can view the rest of the floor plans and information at the builder’s website.

The park at the end of the street where the models are located already has the kids’ play equipment, but no grass yet.  They are probably thinking that this would be a nice place for potential buyers’ kids to play while parents are touring the models.

I will be stopping by this development occationally over the next few weeks, and reporting their progress as I learn it.  Let me know what you think about it by leaving a comment below.

If you need any real estate help or advice, please contact me by phone (949-457-0281) or email (Vicki at VickiLloyd.com)

Thanks for visiting -

See my previous post about this development

A new home development, “Summit Crest” by Van Daele Homes, will be opening in Lake Forest this weekend!  Last weekend, while driving to an appointment in the area, I noticed this previously-undeveloped slope, and was amazed to see the sign announcing that sales will be starting on February 6th! 

I am very interested to see how well it sells, as there have not been any new homes built in Lake Forest since the Lyon Parkside Homes opened in 1999.  Last weekend, at the opening of Irvine’s Woodbury East, it was reported that 10,000 potential buyers came through their models.  I don’t know how many were actually sold, but it is very encouraging to hear that there are that many people thinking about moving to a new home right now.

I stopped by yesterday and drove through the neighborhood, being careful to not get in the way of the trucks and construction equipment working to get ready for this event.  From the apartment complex just above the neighborhood, I was able to take some photos over the privacy fence (with my zoom lense.)

It looks to me like they are going to be working ’round-the-clock to be ready for Saturday morning, because there is still a lot left to do.  The roof tiles are set up on the roofs of the models, and the siding has not yet been attached to the fronts of the homes.  They also have to finish the landscaping, and get all the dust and dirt swept up.  If it rains, which is forecast, they may not finish on time, and if it rains very hard, I am betting that only the most serious buyers will show up!  I am planning to stop by to get the scoop, but if it’s raining, I may wait a few more days.

Here is the info that the builder is providing right now on their website.   It has floor plans and lists of amenities, but nothing specific about pricing or delivery dates.  The floor plans are attractive, and appear to be quite liveable, with upstairs laundry, large master baths, walk-in closets, and good-sized open kitchen/family rooms.  The smallest model is almost 2500 square feet, so these are not little starter homes.   

I don’t know why, but builders never quite tell the whole story about their new home developments on their websites.  Maybe they think once you visit the models and fall in love with their decorating, that the details about association dues, and school assignments won’t matter.  Since there are only 29 homes in this tract, and there are a lot of slopes to be maintained, I am guessing that the HOA fees will have to be somewhere near $100, unless the streets are private.  If the streets are private, they will have to create a reserve account to re-surface them occasionally, so that would probably add another $40 per month to the fees.  (This is just guess work on my part – I may be very wrong!)  Update : After going to the sales office on 2/06 and speaking to a sales agent, I found out the dues will be $214/month and the streets are not private, so they don’t have to reserve to repave them.  Apparently, those slopes will requre more maintenance than I had originally thought!   Since Lake Forest has established infrastructure, there won’t be any Mello-Roos taxes, so that may be a bonus feature that will attract buyers.   It is probable that the assigned high school will be El Toro, and the junior high will be Serrano, but you never know which elementary school will be assigned until the district figures it out.

If you get by there, please leave me a comment and tell me what you thought about it! 

If you need any real estate help, or have any questions, just give me a call at (949) 457-0281 or drop me an email!  Thanks for reading.

Superbowl Sunday typically marks the beginning of the spring buying season in Orange County, but I don’t think any serious buyers are willing to wait that long.  While showing property this weekend, my buyers and I almost had to “take a number” to get in to see the newly listed homes!  We viewed 1 short sale, an lightly damaged REO, a traditional sale, and an investor (flipper) home.  The traditional sale property literally had a line of buyers taking turns to go up or down the stairs!

The inventory of homes available in the “active” status in the MLS is extremely low, and the bulk of them are short sales in the more affordable price ranges.  The first time buyer tax credit of $8,000 has been extended to April 30 to get into a contract, and a $6,500 credit is now available to repeat buyers who lived in their previous home for 5 of the last 8 years. 

Steve Thomas of Altera Real Estate provided his view of the market here and does a very good job of explaining how the decrease in pricing, in addition to the very low rates for mortgages have helped the lower price ranges find a probable bottom.  The market time for homes under $1 million is only 2.5 months, and he states that for “under $750,000 the market is sizzling!”   First time buyers, move-down buyers, and investors are all competing for the same homes. 

If you are planning to buy in the next 3 or 4 months, please have patience, be realistic with your expectations, and plan on needing to “sweeten your offer” with either faster closing, more flexibility for possession or more cash!  It’s tough right now, but it can be done!

If you need any help or advice, please call or email me, or leave a comment here!