Commissions Can Move Either Way

There is a townhouse in my development that has been on the market for more than four months. This seems very strange at first glance, because all the other units in the complex sell in two weeks or less. This one is priced somewhat higher than others of the same size, but that doesn't explain why buyers aren't coming in with an offer. Then I noticed that the commission to the selling office was 1 1/2%.
Commissions are negotiable, and this rate is perfectly legal, but few agents will work for so little, especially since this fee is shared with their offices.
In a slow market, there is more competition for fewer buyers. In the first-time buyer price range, it is the well staged and aggressively priced properties that are selling.
James Thorner, who writes for the St.Petersburg Times, went one step further. First he made certain that his home was competitively priced and showed well. Then he listed his house with a 6 1/2% commission, with 3 1/2% going to the buyer's agent. In less than two weeks, the property was sold. A neighbor's home, with a total 4% commission, is still on the market after a year.

What the Lawyers Say

Selling your home for a high price is wonderful, as long as you can confidently bank the proceeds. Unfortunately, a certain number of sellers end up in lawsuits involving their home sale transactions. One way to avoid a lawsuit is to learn from other's mistakes.
In our office meeting today, our manager mentioned a little "shop talk" that she had with a top area real estate attorney at her gym yesterday. She asked him what most of the lawsuits were about lately, and his immediate answer was "Deposits."
In the past, non-contingent offers were the norm. Sellers rarely could hold a buyer's deposit if the buyer decided not to proceed with the sale. In a market when the seller was able to find another buyer quickly, and to resell for the same amount, or even more money, it was difficult to prove damages...but in a declining market, the sellers must often sell for less, if they are able to sell at all. Buyers should be careful to protect themselves with contingencies in the contract until they are fully satisfied with their loan terms and the property condition.

Fires Begin at Home

In the wake of the devastating Southern California fires, fire safety should be on all of our minds. I read an article on the subject by Alan Heavens when I came back from work the other day, and discovered that I was already committing a safety "no-no." I had left the house with my clothes dryer running.
Here are some tips that we can all use to keep our homes safer from fires throughout the year.
In the Kitchen: Never leave the kitchen when you're cooking, and don't overload electric outlets. Be sure to keep flammable items like towels and grocery bags at least three feet away from the range top. Remember to clean your exhaust hood regularly, and wipe up spilled grease as soon as the stove surface is cool. Run your microwave only when something is in it.
Mount fire extinguishers in the kitchen and garage , and learn how to use them. (I was guilty on this one, too. The dates on mine were obsolete, and I can't imagine stopping to read instructions when a fire broke out.)
Living Areas: Be especially careful with space heaters, keeping them away from curtains and newspapers...and don't forget to turn them off at bedtime. Did you know that the current they require could melt an extension cord?
In fact, don't use extension cords at all, but if you must, be sure that they are UL rated and not frayed or worn.
Common sense items: Don't overload sockets. Your lamp is rated for a 60 watt bulb for a reason. Never leave candles unattended, or where children can reach them. And as for that clothes dryer... clean the filter frequently and make sure that it vents outside, not in the attic.
Smoke Alarms: Be sure to install alarms on every level of your house, and near every bedroom. Check into the dual alarms that provide both ionization and photoelectric coverage, and don't forget to add a carbon monoxide alarm, too. Did you know that there are smoke detectors available on the Internet for the hearing impaired?
The Red Cross has a Fire Prevention and Safety site that offers useful lifesaving information.

How Overpricing Can Backfire

Sometimes a seller asks to price a house on the high end of the market. (Don't confuse this with the decision to list a property far above the comparable sales. The sellers of these homes are unrealistic, and set a price in the stratosphere. We describe agents who list these homes as "buying the listing," and the houses seldom sell.) The problem with listing on the high end in a declining market is that the price never quite catches up.
I remember taking such a listing in my early years in the business. The house was in San Jose, and the sellers were transferring to the Boston area. The sellers insisted on a listing price that mirrored the highest comparable sales, but their house backed on a busy street, and it turned out that we were on the cusp of a declining market. On top of this, the wife went on ahead to Massachusetts to start her job there, and the husband was not the world's best housekeeper. The price was lowered over and over as we followed the market down. Finally, many months later, we sold the house...fortunately, they were pleased with my service, and didn't blame me for the slow market.
A new study just published by the Otteau Valuation Group shows that homes listed at a realistic price sold at listed price or above in a short time, and those priced higher took longer to sell, and ended up selling for less than the first group.

Nigerian Scam Invades Local Real Estate

Yesterday, a fellow Realtor told me about "buyers" for an expensive new house in our area. She had been contacted by an intermediary who lives here, but the so-called cash buyers are from Nigeria...a red flag if there ever was one. The go-between, who was originally contacted on the Internet, was supposed to check out properties for them with a Realtor, and then they would buy the house, sight unseen.
They started with a price range of under $2 million, but jumped up quickly to nearly $9 million.
My friend and I checked out Nigerian scams online, and found that there were several that involved real estate. I guess that people are finally getting suspicious when they are invited to share in millions for helping a complete stranger (widow, orphan, attorney, banker) to get money out of the country. Now they are turning to sellers and Realtors who may be affected by a slowing market, by offering a quick cash deal. The scam itself varies from a certified check that bounces later, to the need for a few hundred dollars because "their cash is tied up" and they need to pay their local lawyer. If it sounds too good to be true, it probably is!

Sunnyvale Neighborhood Groups

A neighborhood association is a group of residents who volunteer their time to improve and enhance the area in which they live. Neighborhood associations help build a sense of community among neighbors, collectively address issues in the neighborhood, provide an effective communication link with government officials and other influential groups, and empower residents to work together to improve their neighborhood.
Check to see if there is an existing group in your area of Sunnyvale at the City's Site if you are interested in joining.
If you would like more information about starting an Association in your neighborhood, or just want to learn more about these groups and why they are important to your community, plan to attend the Fall Quarterly Meeting of the Sunnyvale Neighborhood Associations, being held at the Sunnyvale Senior Center on November 5th, at 7pm. For more information or to RSVP, you can call Nathan Pruitt at 408-730-7472, or email him at ntruitt@sunnyvale.ca.us

New Controversy in Sunnyvale

The newest topic of discussion by Sunnyvale residents (and political football in the upcoming city council election) isn't the library bond or the Mary Avenue extension. It's whether or not the city is as safe as it was in 2003, when it was touted as the fifth safest city of its size in the nation. Now the number has dropped to 38th, mostly from an increase in robberies, rather than violent crimes. Sunnyvale Public Safety officers are trained to serve in both police and fire capacities, a program that is extremely efficient in both cost and manpower. They are also very active in their outreach to the community, helping to set up and support neighborhood associations, and speaking in schools about safety. Recently, a representative spoke at our Realtors Tour Meeting, and showed us how to use the defibrillator in an emergency situation.
The important thing to remember is that figures can lie. I still feel completely safe walking in Sunnyvale at night, and when I called 911 by mistake while programming my new phone, a call came within seconds, asking me if I needed help. Now, that's safety!

Updates from the Trenches

Scary forecasts are expected for Halloween. Fed-defining short-term rates have dived almost a half-percent, a sure sign of renewed credit panic, and a Fed cut on Halloween now seems to be a sure thing.
But here in our North Bay "Oasis" things remain calm, despite the panicky headlines.
This may be because sellers in the upper price ranges, not as caught in the subprime mortgage trap, are taking a "wait and see" attitude and keeping our inventory down.
Meanwhile, buyers who are sitting on the fence in other areas waiting for prices to drop, realize that that is not the case in our area.
Listing numbers were down slightly in the cities of Santa Clara, Cupertino, Sunnyvale, and Mountain View this week, and sales numbers were up. In Cupertino, of the 14 sales, 2 were over $2 million, and 9 were over $1 million.
Not bad statistics for an area where the headlines read: "Home sales plummet 40% in Bay Area!"

Can You Still Afford a Second Home?

I had a call over the weekend from a salesman promoting vacation homes in Costa Rica. As I looked out my windows at our gorgeous autumn colors in Santa Clara Valley, I answered with a quick, "not interested."
But Tom Kelly, who writes a column on second homes says that while the subprime market crisis is affecting credit markets around the world, baby boomers and retirees can still find funding for their second homes, especially in countries with a stable political environment and solid infrastructure.
Latin America developers are targeting the 79 million baby boomers in North America -- the largest, healthiest and wealthiest group ever seen on the growth landscape. According to statistics compiled by the U.S. Census Bureau and Federal Reserve, this group controls 67 percent of the country's wealth, or $28 trillion, and households by someone in the 55-to-64 age group had a median net worth of $112,048 -- 15 times the $7,240 reported for the under-35 age group.
According to experts gathered for the recent Latin America Real Estate Conference, the desire to seek vacation and second homes abroad has just begun, even though some potential buyers are stymied by the flat or dwindling values of their primary home.
Dr. Stephen Roulac, an investment advisor in southern California, stated that
"Most of the people who can afford a second home outside the United States are either going to be paying cash or have a variety of places they can get funding. The subprime situation is not a factor for these people."
But some Realtors who specialize in Latin American sales, are seeing ballooning inventories, and potential home buyers taking a "wait and see" position.
My friend and fellow Realtor, Suzanne, came close to buying and renovating a property in Rosarita Beach, Mexico a couple of years ago. The sale didn't happen, because of difficulties in dealing with local contractors, and now she's hearing about an inventory glut in the Rosarita-Ensenada corridor south of San Diego that will have to be absorbed by long-term investors.

Egypt in our Back Yard

When I read that the Rosicrucian Museum in San Jose is planning a complete remodel of its landscaping, the item really caught my eye....especially because my Halloween costume this year is Cleopatra. The new, prize winning plan is an extension of the educational spaces indoors, and will use drought-tolerant species, California natives, and plants that might have been found in ancient Egyptian gardens.
The Egyptian Museum at Rosicrucian Park has been a fixture of San Jose life for so long that it is hard to imagine a time without it. This is just one more reason we enjoy living in the Valley. Hundreds of thousands of residents and visitors to Northern California have experienced "history coming alive" through the exhibits, tours, lectures and other activities at the Museum. I remember a visit with my family when we first moved to California, and another, years later with a young grandson who was fascinated by most of the exhibits, but refused to enter the dark room with the mummy case.

When "Spin" is a Sin

Here they go again! Big black headlines in the Merc this morning...20 Years After Black Monday, What if it Happened Today? and Home Sales Plummet 40% in the Bay Area. The implication is that stocks could drop by 22% as they did in the market collapse of 1987. So then what happens this morning? The Dow Jones, at an all-time high of nearly 14,000, drops almost 300 points. The NASDAC falls by 55.
Sue McAllister says in her article that "Wary buyers and a shaky mortgage market slammed the brakes on Bay Area home sales in September, which reached the lowest level of any September in the past two decades"...scary stuff, but true. It's the negative emphasis that I object to, especially since a chart on page two shows that although sales are down from last year, the median price in Santa Clara County is up 5.4% from last September. Also hidden in the second page is Richard Calhoun's comment that the market in Silicon Valley remains skewed, with our more expensive areas dramatically outperforming cheaper ones.
But so many people read just the headlines...

Home Maintenance Tips for Fall

A key to protecting the investment you’ve made in your home is by following a regular maintenance schedule. By performing preventative maintenance on an on-going basis, you’ll avoid many of the big ticket repair items that can lower the value of your home.
Here are helpful checklists for monthly and fall maintenance.

Monthly
Test your smoke alarm and carbon monoxide detector.
Check the filters on your heating and cooling systems.
Be sure to clean and change according to the manufacturer’s schedule.
If you have a humidifier or an electronic air filter, check these as well.
Check faucets for drips. Check plumbing for leaks.

Fall
Smoke Alarm / Carbon Monoxide Detector
Test your smoke alarm and carbon monoxide detector.
Change the batteries in both. This should be done twice a year.
Furnace / Heating System
Have your system serviced by a qualified service company.
If you have electric baseboard heaters, vacuum them to remove dust.
Remove the grills on forced air systems and vacuum inside the ducts.
If you use a portable humidifier, it’s time to clean it.
Water Heater
Extend its life expectancy by draining a gallon or two of water from your hot water heater at least twice a year.
Windows and Doors
Ensure windows and skylights close tightly.
Make sure all doors to the outside shut tightly.
Renew weather stripping as required.
Outside
Check your chimney for obstructions, such as bird’s nests.
Clean gutters and test downspouts to ensure proper drainage from the roof.
Make sure the ground around your home slopes away from the foundation wall. Remove mulch from the foundation wall as well. This helps prevent water damage.
Drain and store outdoor hoses. Prepare your outdoor faucets for winter freezes.
Protect young trees and bushes for winter and winterize gardens.
Trim shrubs and trees so that they clear the foundation, exterior walls, and roof of the house.
Store outdoor furniture.

Is the Sky Really Falling?

Every day, the headlines seem to scream that the housing market is about to destroy the economy...and yes, I agree that there is a serious situation out there, with foreclosures up and more expected for quite a while.
But panic begets panic, and in the same way that the press implied a couple of days ago that the first "Boomer" to apply for Social Security was the beginning of the end of the retirement system, the newspapers and television are exaggerating the effects of Real Estate on today's economy. Today's featured news was a speech by Treasury Secretary Henry Paulson at Georgetown University. He stated that he views the housing decline to be the most significant current risk to the economy. He neglects to mention the balance of trade or the hundreds of billions spent on the war in Iraq.
We have seen declines in the housing market before, but in the long run, people need homes, and stability will return. Some homeowners will be hurt, just as stockholders were hurt in the early '90's, but lessons will be learned, too, and there will be tighter controls on lenders and their practices in the future.

A Glass Ceiling in Real Estate?

I read a shocking report in today's San Jose Mercury News. The third annual UC-Davis Study of California Business Leaders, conducted in partnership with the Palo Alto-based Forum for Women Entrepreneurs and Executives shows that Santa Clara County has lowest percentages in California of women on the board of directors in large public firms, and women in a top executive positions.
An even bigger surprise to me was the poor showing in the Real Estate sector. As I look around at the successful Realtors in my office, and others in the Valley, I see a preponderance of women. Women have also been active in the local Associations of Realtors, and have headed these groups as early as the 1970's, when I first entered the business. Our President of the California Association of Realtors, Colleen Badagliacco, is a woman. But, according to this study, only 8.1% of executive officers in the state's twenty two largest public real estate companies are women. This, despite the fact that we have historically been one of the earliest professions where women could move ahead through our own ambition and hard work...but not into the executive suite, I guess.

Smoking Ban and Condo sales

The city of Belmont recently passed a new anti-smoking ordinance, and SAMCAR, our sister Association of Realtors to the north has come out in opposition to the ban on smoking in multi-story buildings. I have mixed feelings about their position. They claim that there is a connection between the ordinance and the fact that there have been no sales of condominiums last month, and only two sales in the previous month.
I think that as many, or even more, people would buy in a non-smoking building...just as they choose non-smoking hotels. Is this just one more step in the fight for clean air, like smoke-free airplanes and restaurants?
My concern is more with the loss of private property rights. Shouldn't citizens be allowed the full use of their own homes without interference? I'm a nonsmoker, as are the majority of Californians, but I wonder at what point we stop interfering with people's lives. Do your rights end where mine begin?

Our manager will be away for a few days, and she sent this story to all of us before she left on her trip. It is an old tale, but a good reminder that a depressed market...in real estate, or any other field...is often created, or at least expanded...by our attitude and actions.

The Parable of the Hot Dog

There was a man who lived by the side of the road and he sold Hot Dogs. He was hard of hearing so he had no radio. He had trouble with his eyes so he read no newspapers, nor did he watch television. But he sold good Hot Dogs.
He put no signs on the highway telling how good they were. He stood on the side of the road and cried “Buy a Hot Dog, Mister?” And people bought. He increased his meat and bun orders. He bought a bigger stove to take care of his trade. He finally got his son home from college to help him.
But then something happened…..
His son said, “Father, haven’t you been reading the newspapers? There is big depression on. The European situation is terrible, the domestic situation is worse. Everything is going to pot.”
There upon the father thought, “Well, my son’s been to college, he read the newspapers, he listens to the radio, he watches the television and he ought to know.” So the father cut down on his meat and bun orders, took down his advertising signs, and no longer bothered to stand out on the highway to sell his Hot Dogs.
And his Hot Dog sales fell almost overnight.
“You’re right son,” the father said to the boy. We certainly are in the middle of a great depression.”

If a Self-Employed Person Gets Sick...

Here I am, home with laryngitis and all the symptoms of a miserable cold. I had deliberately freed the weekend from appointments and open houses so I could attend a three day square dance Jubilee, held right here in San Jose.
The dancing can wait until another time, but as I contemplate my second nap of the day, I can't help but think about what might have happened if this were a "normal" working weekend for a Realtor. If I had floor time scheduled at the office, I would probably have shown up for my three hour shift (It's hard to get a substitute at the last minute) and hoped that I had enough voice remaining to answer phone calls. An open house would have been even more difficult to handle...directional signs to put out, lights to turn on, and most importantly, being "on" for visitors to the house, and sounding more knowledgeable than brain-dead. Showing property can usually be delayed, or a friend can cover for me. During my more than thirty years in real estate sales, I've covered for other agents who were sick, and they've done the same for me, but this is a very personal business, and when a client chooses to work with you, they are not usually happy with a substitute.

Realtors and Technology

Results just came out from the “2007 Use of Technology Survey.” from the the CALIFORNIA ASSOCIATION OF REALTORS®.
The result? REALTORS® said that nearly half -- 44 percent -- of their business originates from Internet. In 2003, the first year C.A.R. conducted the “Use of Technology Survey,” REALTORS® said that only 19 percent of their business originated from the Internet.
They are turning to high-tech instruments such as handheld Internet devices, e-mail, and Web sites to communicate with their clients. With 25 percent of REALTORS® using their handheld wireless Internet device “all the time,” 28 percent of respondents said they answered clients’ e-mails instantly and another 36 percent within 30 minutes to one hour.
Additional survey highlights include:
• 97 percent of REALTORS® have a high-speed Internet connection at home.
• 27 percent use a laptop or tablet computer in the field primarily to conduct listing presentations.
• 20 percent indicated that a new computer was their most important business upgrade in the last 12 months, followed by a hands-free phone at 19 percent and handheld Internet device at 13 percent.
• 87 percent find the Internet extremely or very important in the marketing and promotion of their business, up from 69 percent one year earlier.
• 9 percent of REALTORS® say they participate in online real estate forums or blogs.

It's nice to know that I'm in the forefront of all this technological use...people are still impressed that I write this blog... but because I live and work in the heart of Silicon Valley, my clients expect me to be up to date with every real estate related technological innovation.

My Crystal Ball is Broken

The California Association of Realtors quarterly meetings are taking place in Anaheim this week, and Leslie Appleton-Young, chief economist for the group, updated her forecast for the next year. She predicted that the California housing market will continue to slow next year, with house prices falling 4 percent, and 9 percent fewer houses changing hands, and that the median price of detached single-family houses that sell statewide will drop in 2008 to $553,000 from a projected median price in 2007 of $576,000.
If California's median house price does fall next year compared with 2007, it would be the first such decline since 1996, according to CAR's records. This year, despite rising mortgage defaults, deteriorating credit market conditions and lower values for most California homes, it's likely that the median price of houses sold in the state will be 3.5 percent higher than in 2006, Appleton-Young said - but it's all because of the changing mix of homes that are selling. The whole "pie" of home sales volume has shrunk this year by more than 20 percent compared with sales in 2006, she said. But "the part of the pie that's moderate and low-end housing has shrunk even more." With so many sales of lower-price homes out of the picture, the median price has been bumped up artificially.
The Realtors' forecast predicts sales of existing houses will decline all over the state, falling to a total of 334,500 sales of resale single-family houses. This year's total is projected to be 367,500. The peak year was 2005, when 625,000 houses changed hands.
In "entry-level" neighborhoods in the Central Valley, for example, sales will drop because of oversupply of newly built homes that compete with the resales. In more expensive places like the Bay Area, they will fall because of "affordability constraints," which means a combination of high prices and tighter lending criteria to obtain mortgages.
She did not make distinct predictions for different regions of the state, but said earlier that she expects the Bay Area housing market in general to hold up better than the state as a whole. Compared with the Central Valley or Inland Empire in Southern California, for example, the Bay Area has little new-home development, and therefore less stagnant oversupply of homes for sale. "That's one component that keeps this market outperforming the state as a whole," she said. This year's stock market gains also have helped fuel home sales in the region, she said.

A Strangely Uneven Market

As we head toward a record number of homes for sale in Santa Clara County, (6622 last week, compared to 4615 a year ago) I listened carefully to the agent comments at our office meeting yesterday about their experiences in the local market, and the contrast between their San Jose listings and the Sunnyvale/Cupertino situation. Most of the San Jose market continues to languish as listing numbers climb, but bustling open houses, and frequent multiple offers still continue in our "Oasis."
Inventory is part of the reason. The number of Sunnyvale properties on the market is the same as last year at this time, an anemic 109...about the same number as we've been seeing since July. Cupertino has even fewer...79 listings, compared to over 100 a year ago. The buyers that I've talked to say that they feel less worried about the market and their future equity if they buy where they know the schools are good and commutes are short, even though they realize that there would be less competition and more "deals" if they go further out.

I Don't Do Windows!

I just read an interesting article in The Wall Street Journal Online by June Fletcher. She described how Realtors in many areas of the country are starting to respond to strange requests from clients, everything from mailing a forgotten set of false teeth to babysitting for pet rats. Everyone has some limits. In the slow Florida market and other areas with faltering sales, some agents have been working along with cleaning crews and digging up landscaping to get properties ready for sale
Last week, I wrote about service being an integral part in my job as a Realtor, but lines have to be drawn, or we will not be considered professionals.
What should you expect from your Realtor? Essentials from a quality agent are: knowledge of the local market, comparative sales data, a strategic marketing plan, and electronic (web) expertise.
I keep a detailed list of trusted workmen I can safely recommend to clients, and I also have a reasonably priced handyman I can call on for small house and yard jobs. I know where the Windex is kept, to erase a few fingerprints on the sliding doors...but no, I don't do windows!

A Day in Monterey

My son Dave and his wife Bridget were visiting from Michigan last week...here for his Fremont High reunion. They treated me to a post-birthday outing to the Monterey Bay Aquarium.
It served as a reminder that living in this area is not just about neighborhoods, demographics and watching a new downtown being built. It is also about being surrounded by wonderful opportunities for day trips in every direction.
The weather was glorious as we headed south through forests of redwood and eucalyptus toward Monterey Bay. The sky and water were a bright blue when we arrived at Cannery Row, and we were in plenty of time to watch the feeding of the big fish at the aquarium. I hadn't been to "Steinbeck Country" for more than a year, and the exhibits at this outstanding museum founded by the Packards have completely changed. We especially enjoyed "Wild About Otters," and "Jellies, Living Art."
Dave will surely impress the students at WMU, where he teaches, with his new "Harry Otter" t-shirt.
If you can't make it down to Monterey, you can visit online and see their videos and all-day webcams at the various exhibits, but it's well worth the drive.

The House That Herman Built

My daughter-in-law, Ellen, has just started a new job at the Palo Alto Art Center, and today we had a chance to see their new exhibit, combining elements of art and architecture...including such fascinating works as Randy Dixon's Dream House series and models of the Jellyfish House and the Camel Back Shotgun Sponge Garden.
Probably the most interesting exhibit was culled from the imagination of a man who has spent more than thirty years in a six by nine foot box. An audio, based on his letters is read, as details flash on the screen of a yellow kitchen with solid pecan cabinets and a basket of biscuits on the counter, a pantry with Tabasco, potatoes and onions, a workshop to tinker with appliances, and flowers in the garden, all year 'round.
For over thirty-five years Herman Joshua Wallace has been in solitary confinement in the Louisiana State Penitentiary at Angola.
Solitary Confinement, or Closed Cell Restriction (CCR) at Angola consists of spending a minimum of 23 hours a day in a six-foot-by-nine-foot cell. Five years ago the activist/artist Jackie Sumell asked Herman a very simple question:
"What kind of house does a man who has lived in a 6' x9' box for over thirty years dream of?"
The answer to this question has manifested in a remarkable project called THE HOUSE THAT HERMAN BUILT.

More Helpful Sources for Seniors

I had my flu shot today, taking advantage of the vaccine's availability to seniors like myself. There have to be a few perks in growing older(chronologically, anyway!)
A large number of my clients are seniors also, and my email today reminded me that October 1-7 is National Aging in Place Week.
Aging in Place refers to the concept of older Americans remaining in their homes for as long as possible, living independently. The goal is to continue living in the housing of one's choice.
The National Aging in Place Council celebrates the week with various events around the country.
Although most seniors prefer this option, it is not always workable for everyone.
SNAPforSeniors is a free, online service that lists the most comprehensive and current information on senior housing options in the U.S. today. For help in finding transitional or permanent placement housing, SNAPforSeniors offers a way to provide current, insightful, and extremely useful information. Whether a family is seeking senior housing placement as a prelude to selling the family home, or is looking to purchase a unit in an independent living community, SNAPforSeniors has all the information you need. There is no charge to use the system, and results can be easily saved or sent to family members.

Can This Credit Be Saved?

Sue Baker-Dirickson, our in-house lender, just told me about a little known credit maneuver.This 'trick' is called rescoring, according to Evan Hendricks, author of
“Credit Scores and Credit Reports:How the System Really Works.”
Rescoring is a service offered only to mortgage lenders by independent credit reporting agencies, which compile information from the three credit bureaus (Equifax, Experian, and TransUnion). The independents can work with the Big Three, fix errors, and then recalculate your credit score. If your score goes up after the errors are fixed, you could save thousands of dollars on your mortgage interest.
The key is that rescoring works only on real errors. If you have a low score because you don't pay your bills on time, then you can't rescore. You must demonstrate that you have a legitimate error on your report and provide proof, such as payment records. If you have a legitimate case, you may have to pay up to $150 to have the rescoring done.
Rescoring is an emergency maneuver. If you are planning to apply for a mortgage, you should call your loan consultant and get a copy of your credit report first to avoid last minute problems. If you have paid your bills on time but your credit report says you haven’t, the three credit bureaus each require at least 30 days to investigate and make changes to your credit report. But if you are in the process of applying for a mortgage, Sue says that you might be able to get the changes made in just a few days.

Going, Going, Gone!

The newest trend in the depressed areas that are south and east of our strong local real estate market is the auction. The Mercury News featured a front page article today about one being held on Saturday morning in San Mateo. The properties being sold are REO, (Real Estate Owned) which means that the lender banks have already foreclosed and are now the owners of record. This is the third such auction in the Bay Area in recent months, and about 150 properties will be sold. Many of the houses and condos will sell for 20-30% less than the most recent sale prices of similar properties, but very often, the auction atmosphere will raise the selling price way over the opening bid figure. In any case, the lenders are protected by an undisclosed "reserve price" that sets the lower limit that they will accept.
One reason residential auctions are seeing a boost: The growth of online auctions such as those held on eBay as well as offline charity auctions have made the general public more comfortable with the process of bidding. I admit to being an "EBay Junkie" who gets caught up in the excitement occasionally.
They expect to see as many as 2000 at Saturday's auction, many just there for the show, but others who are seriously looking for an investment, or a home or condo to live in, at a price they can afford.

It's Pretty Warm in The Oasis

...well, maybe not as hot, anymore, but our strong market "oasis"...Sunnyvale and Cupertino...continues to thrive, with low inventory and fast sales.
There were two offers presented last night on my new listing on Russet Drive, in the Old Orchard area of West side Sunnyvale, after a weekend of busy open houses. It sold well over the listed price, with the fully preapproved buyers agreeing to the all the asked-for terms. The buyers will be responsible for replacing the roof and doing any required termite and property work. This is a perfect neighborhood for a young professional couple. It is well established, with many original owners, but there are many young families like theirs moving in, attracted by the nearby park and excellent elementary school. A win-win situation...indicative of a health market.

A Remodeling Tour?

Recently, while driving around neighborhoods in the course of my work, I've noticed an increasing number of remodeling projects. Sometimes homeowners don't quite know where to start and rely on professional help, but in a tract of identical homes, it's very helpful to see what your neighbor has done with the same floor plan.
I saw many such curious neighbors at my open houses this weekend, and one of them came up with a terrific idea. Why not arrange a tour of the one story models in the tract? The three and four bedroom models were built with the exact same living areas, kitchens and baths, and since the homes are over forty years old, many of them have been remodeled. The homeowners might be pleased to show off their work, and the potential remodelers would benefit from their ideas. It would also be a way to meet the neighbors and make new friends. Anyway, I'll "float" the concept in my next Old Orchard newsletter and check out the interest.