Garth Evans

2431 Celtic Drive-No Mello Roos

I just wanted to let everyone know about a new listing I just took in Glenmoor. As I have mentioned in previous articles, I like selling homes in this West Lincoln neighborhood because they don’t have the high Mello Roos like Lincoln Crossing and other areas of Lincoln. Due to this fact, the resale value is generally higher and the numbers work better if you are an investor. This home was built in 2000, is 2624 SF, has 4 bedrooms, a large den, a loft area and formal living and dining rooms in addition to the kitchen/family great room. It also has a spacious 3 car garage and a nice yard. This is not a short sale or bank owned property. Call me if you want to see it or if you have any questions. Priced at $299,999, I think it will move quickly. For more pictures, visit the featured homes tab on the site.

Good afternoon. I thought I would just write a quick post about a questions I answer numerous times everyday. People are always asking “Have we seen the bottom of the real estate market yet?” and “What’s going on with the market in Lincoln?” 

There really isn’t a short answer to it, but I will try to sum it up without going into too much detail. First of all, in some market segments I believe that we are at or close to the bottom. In the lower prices, $200K and below, I believe we are pretty much at the bottom. Most listings coming up at that price are sold very quickly regardless of condition. That being said, it may also be due to the fact that there is a low supply at this point. The prices seem to have stabilized and are even trending upwards in some areas. Who knows though, if we see another big influx of bank-owned properties in this segment the prices may fluxuate to some extent. Bottom line, the numbers are working for investors and if the rental market remains strong, the less expensive houses will sell as long as lenders make the money available.

In the mid range, $250K to $350K, I am seeing about the same results. Homes are selling quickly, but most of the buyers are move-up buyers or even some first-time buyers. Not as many investors in this segment.

The luxury homes, $600K and above seem to still be falling substantially. We are starting to see home owners default on their principle residences whereas it was mostly investors that bought on speculation that had bailed out previously. In the lower luxury homes (tract homes in Verdera priced between $400 and $500K etc.) we are seeing a very competitive market with most listings recieving multiple offers in the first couple days. Currently I think this is a safer risk than the higher priced custom homes.

Hopefully this gives everyone some insight. Obviously there are many factors that can swing the market one way or another. Area (even within Lincoln) makes a difference, interest rates, supply and demand, lending policies and dozens of other variables can cause changes. Please feel free to comment or ask questions on this post.

In 1982, Senator Henry Mello and Assemblyman Mike Roos each drafted bills to help local governments fund infrastructure such as schools, parks, sewers, utilities, sidewalks, roads etc. To make a long story short, bonds are created and secured by long-term taxes and when a property is sold, the new homeowner is required to pay the special tax. Although we don’t like to pay any “extra” taxes, Mello Roos does help the community grow and provide the needed infrastructure for us to be comfortable and live in a well-kept city. This is the short version, for those who want to know more, there are many sites out there with more information about the CFDs (Community Facilities District) and other aspects of Mello Roos. If you want to know the amount of Mello Roos on a certain property your real estate professional should be able to get you exact numbers.

I frequently have buyers getting excited about the prices on large homes in Lincoln Crossing. Many of them are coming in at under $100 per square foot. Then I bring up the fact that there are high mello roos in that area. Most homes are at a minimum of $250 a month and I have even seen some up in the $400 a month range. Add this with your $115 a month Homeowner’s Association Dues and you can be looking at an extra $400 or so a month added onto your payment. For example, I have some buyers looking at 2 very similar homes, one in LC and one in the Glenmoor subdivision (no mello roos at all). The LC home is priced at $275,000 and the Glenmoor home is at $300,000. Even though the price is $25,000 more, the monthly payment for the Glenmoor home is about $100 less a month. Make sure you have someone working for you who knows about the mello roos and can give you exact numbers so you can make an educated decision. There are good deals in Lincoln Crossing, but take all the factors into consideration.