Monopoly: our NEW Economy

 



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Introduction and Overview


 Do you remember that game Monopoly? Of course, you do. Everybody has at least one game in their pile of games in the closet. We have three or four, but we are amid a Monopoly, believe it or not. It's true. we're also going to talk about, we buy houses for cash and what are zombie houses?


Zombie house. Yeah, we have zombie houses. There's not a lot, but we have zombie houses. we'll also talk about? Wednesday is the bank-owned property of the week and the apple home of the week. Mountain View is the home of the week, and Santa Clara County is 40 days on the market. Lots to talk about. I'm going to go quick.


This guy right here sets it out straight. I'm going to restart it because I'll let you read it from the beginning. if you want to watch this, it's in the link in my blog. It's right there for you. 


The Monopoly of Real Estate

Monopoly: our NEW Economy

Vanguard State Street and black rock have 88 percent or 82 percent of stocks in the SMP.


They own 82 or 88 percent of it, tell me that's not a monopoly. That's the same thing with the bank-owned properties in the 08s to 09s. These companies came and bought up swaths of homes that people lost. And they're not apologizing for it. So what does that mean? It means the little guy, mom, and pop, the little person, and the citizens cannot buy homes.


It makes it very uncomfortable. Now there's this thing where people talk about it, but because there's such a controlling factor of all these homes by corporations oligopoly. Very few people or operations have it, but they now control the rents. They control rents. it's going to become more and more expensive for renters, not homeowners, even though there's scarcity and lack of inventory because of these big, huge corporations.


It makes it very difficult for homeowners and individual people to buy homes. That's why we're seeing 2 million homes that are complete shacks in California, in San Jose, in Santa Clara County. Sadly, this is happening. Politicians are talking about doing stuff about it, but they're not doing anything about it.

So shame on them. 


Understanding 'We Buy Houses' Offers

"we buy houses for cash"

What if we buy houses? I'm sure you've seen them on the telephone polls, big yellow signs saying we buy houses for cash. Here's a great breakdown. When you sell to a wholesaler, they're buying at a wholesale price. They're looking at 60 percent of your retail value, ARV after repair value.


So that means they have to buy it and then fix it up and hold it and then sell it. Also pay the wholesaler, which is a great example, but wholesalers make a lot more than 10, 000. So after everything is said and done, they're looking at 165, 000.


So let's just call it a 2 million house. They're going to come in and offer you 1. 2 million cause they have to do repairs and fix-ups, et cetera. So just be careful of this. I see this all over. don't get taken by these people, We offer this as an option.


If you don't want to do any repairs, you just want to get it done and get cash right away. But I always push people to put it onto the market because I need to explain this saying, this is something we offer. But I think you're better off selling it on the market. let me show you another thing here.


Showed you this a couple of weeks ago. This is the year to date, January to July 30th. I haven't updated it because we're not at the end of the month yet, but year to date, Santa Clara County had 4, 700 homes for sale or sold closed. And if you look at the ones that sell. Off-market, you get a whopping 3 percent off the list price.


And here's the problem. You don't really know what the market has to offer. I think it's a huge mistake for you to sell your house off the market. I tell people that all the time. It's horrible. You need to put it on the market and Buyers come in and tell you what it's worth. A seller can't say, my house is worth $2 million.


A buyer has to say, yes I would. I'm willing to pay $2 million for this house, or a million dollars, or $400,000 for it. And if your house is sitting on the market for over 30, or 40 days, it means that the buyers aren't willing to pay what you think your house is worth.


Your best bet is to get it. List it low and get buyers to buy it. if I list it low, obviously it's going to come up to market. But at the same time, if you put it off the market and you say it's worth a million dollars and you get a million dollars or 1, 000, 003, you're not going to know what the value is.


if you say your house is worth a million dollars, you listed it at say nine 50 or nine 75, yeah, you're going to get it off the market. But if you list it too high, You're not attracting the market, showing you what you have to do. And typically what happens here and these 41-plus days is people just give up and say, okay, I'm going to lower the price. There are two different statistics that you have to be aware of current list price and the original list price. The original list price is what I'm going off. So if somebody said my house is worth 1. 5 million, it's really worth 1 million.


And then you finally bring it down. these are the numbers that you're seeing. Wholesale is not always the best option. it's an option for the desperate and the needy.


We'll talk about this again because I'm putting out this as awareness. 


Zombie Houses Explained

Zombie foreclosures?

What's a zombie foreclosure zombie house is a house that's left vacant, and the owners have given up on it. They can't pay for it. They've walked away from it. They can't rent it out for what their payment is worth.


it says here that there's 223, 000. Homes that are in the process of foreclosure in this third quarter, which is down 6 percent from the second quarter of 2024 and down almost 30 percent from the third quarter a full year ago. Among those pre-foreclosure properties, about 7, 000 sit vacant as zombie foreclosure pre-foreclosure properties abandoned by owners.


That means giving up on this house. I'm going to go live with Mom and Dad. Just let it sit. And those are dangerous because houses need to be lived in. You have to have electricity running plumbing running. the sewer running. You have to have air conditioning moving.

Otherwise, you get mold mildew infiltration. And currently just one out of every 15, 000 homes across the ratio is the same, That's it. Okay. I brought this one up because we're going to bank on properties just to prove the point that bank-owned properties are not an issue. They're not a problem. Yes, we do have them, but not at the same rate we had in 2008, or 2012, something to be aware of. Understand that. Do you have a to-do list or a honey-do list?


No home is perfect. Understand that when you look at a house, No house is going to be perfectly square. No house is going to be perfectly level. There are going to be dips and Rises and there's going to be and no house is perfectly plump, but understand that there are certain things you can do as a homeowner before you sell your house.

FREE HOME BUYER CHECKLIST HERE https://abitanogroup.com/Homebuyerchecklist

You can go through this list right here. Its home inspection checklist link is down below and you can go through with a toothcomb and get little things fixed up. Because it's the little things that home buyers look at and stick in the back of their heads and say, you know what, that house has severe maintenance issues.

Home Inspection CHECKLIST HERE


Register to vote today

They just don't care about their house. So download this today. It's right there. And the link is down below in my blog. I don't care what side of the aisle you vote on. Nobody cares. Nobody cares that your candidate said this, or their candidates said, I don't care. It doesn't matter.


Get out and vote. The link is down below or you can Google it. register to vote because It's your duty as a citizen. Enough said. 


Bank Owned Property of the Week


Bank Owned Property of the Week, Roush App. I've been keeping my eyes on this and I think it went into contract and then it popped out of contract because of certain issues, but this is a great opportunity for you guys.


The original list price was 770, 000. It's gone down 150, 000 since nobody's buying it. It's been on the market for 106 days. It's in Seaside and it's a great opportunity. This is a great neighbor. I actually drove by this house. You don't know what's inside. 


It might stink. It might have mold and mildew. I don't know. So that's what you're getting. There's no. Inspections on this. And if you're going to buy it, buyer beware. There are no inspections that were done on it. And I bet you dollars to donuts. You have to evict the previous owner too, which has to happen after the close because you don't have ownership of it.


Long story short, it's a great opportunity if you're struggling to find a house to buy.

Homes for sale near Apple

This one is right here. 1. 7 million. This is near the Apple campus. The reason why I picked this one, the Apple campus is right here, but has a little ADU in it. Is this the one? It's a Mountain View house. This house is a great option for you. If you're struggling to find a decent-priced house in Cupertino, that's really close to the Apple campus. This is it guys. It's only been on the market for 19 days. This thing should sell pretty quick. Four bedrooms, two baths, 2, 300 square feet.

Mountain View home of the week

it has a small ADU in the back call it a shed or a Man cave or whatever you want You get all sorts of red bark covering the ground. You don't get a garage.


That might've been a garage at one time. They may have converted it.

No, that's the living room. Get rid of that nasty tile. Oh my God. 1. 7 million. That was the garage at one time.

And that's the ADU.


This is photo number one of a two-and-a-half million dollar listing of three bedrooms, one and a half, 1500 square feet built in 1928. I think I talked about this one already. It's not my listing. But whoever this is not the primary photo and it's really not that difficult to upload and point to the photo and tell the MLS that this is the primary photo.


There's nothing great about this picture. It's a living room, right? That could have been a great photo right there. That right there is a great primary photo. That's a great additive. Those are great placements. But I can tell you that the reason why it's priced that high is because of ego.


It's been on the market, for 15 days, and they already decreased the price. So you tell me the original list price is two five nine nine nine. Now it's under two five It's right down the street from Castro, This is a great option. Great buy, but it's overpriced, original everything. Oh, but we redid the kitchen.


20 years ago. people aren't going to buy a house that has 20-year-old kitchens, right? Not for a premium price. You get a little basement, throw your kids down there, and let them play. When I was a kid, I lived in Canada. I remember we had a basement. 


We went downstairs through the kitchen and the mud room. And that's where we played. during the winter months. We're underground. It's a great house guys. This is a great option to buy, but not a two-five. There you go.  


Market Trends and Insights

REO of the Week

So 40 days on the market.


We have 216. It's continuing to go up. Is this something that you should be aware of or be afraid of? No, it's summer. People are now getting back to work. we just had 143 going to pending. Over the county, right? We had 90, 90 days on the market 59. these have not slingshot it up.

They haven't done the hockey stick graph up yet. Something to keep an eye on, but some are doldrums, right? Not something to worry about. REOs are coming up just slightly. And in San Jose, we have way less, we need to be about a thousand, like 900 to 1100. We need that many houses for sale to make it a balanced market.


Same thing with Santa Clara, right? I don't see the inventory shooting up, so I don't think we're in an issue. I hear Southern California is seeing an issue right now where there's a glum of inventory and prices are correcting and contracting. We might see that in the next couple of months, but I don't think so.


once we see these numbers, the inventory for San Jose gets up to a thousand and Santa Clara gets up to 2000, then we're seeing something that we should talk about. So nothing to worry about. I'm Vito with Albatano.


Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 We’re Hiring! 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg



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