Water leaks, Continued

Yesterday, I talked about emergency water leakage. Here are some pointers for the non-emergency kind, which are slower, and much less dramatic, but can waste enormous amounts of water over short periods of time.
Toilet running - The inside of the toilet needs to be adjusted or rebuilt. If you absolutely/positively want it fixed the first time, replace the entire guts of the toilet, and the supply line (the flex line from the valve to the toilet).
Leaking faucets - A dripping faucet can drip over 200 gallons a month. Faucets have cartridges (also called valve stems) that can be replaced. OSH carries a great selection of valve stems. If OSH doesn't carry your valve stem, Barron Park Plumbing Supply in Mountain View probably does. If your faucet is older, and a replacement valve stem is not available, you have no choice but to replace the entire faucet and both supply lines.
Leaking shower valve systems - We have seen a fair number of shower valve leaks where valve stems were no longer available. Unfortunately replacing the shower valve mechanism requires opening a wall. Since it is easier to open and patch sheetrock (compared to tile) you want to open the wall behind the shower to eliminate the need to remove and replace tiles. If you have to open the tile wall in the shower it's not the end of the world. It is possible to replace a shower valve by removing and replacing only 16 tiles. However, most people don't have matching tiles lying around in storage so this creates an aesthetics issue. When it is necessary to patch with different color tiles, many of our clients use sharply contrasting tiles so it looks intentional and less like a patch job. This sounds like major surgery but really isn't. This task can be completed in only 6 to 8 hours.
Leaking shower pan - If your shower pan is leaking, it is major surgery and is beyond the scope of this article. Symptoms are that the floor is soft and gives when you put weight on it, and/or you notice water damage on the walls in the room below the shower.

How to Handle Water Leaks

Early this morning I had a call from a neighbor who receives my monthly newsletter. He had discovered water leaking in his hallway and onto the living room carpeting. We have inside water heaters, so the first question I asked was if the leak was coming from that area. When he said it wasn't, my next question was if he knew where the shutoff valve was located. He didn't, so I had him call the emergency number for our homeowners' association to have someone turn off the water in his unit right away. I also gave him the names of two reliable plumbers.
Mr Handyman recently wrote a column on how to handle leaks:

The most important thing is to know where to shut off the water, and to know this before you have an emergency.
Where are your on/off valves?
Per "appliance" valves - Every water "appliance" (faucet, toilet, water line to fridge ice maker, etc) has an on/off valve typically behind toilets and under sinks). These are called right angle stops.
Main valves - Single family homes, duplexes, four-plexes, etc, have a main water on/off valve that is generally near the house and on the outside of the house. It may be located inside a closet of some sort that in turn is open to the outside. Many sprinkler systems have main on/off valves for each yard.
If you live in a condominium or townhouse complex, the water valves could be anywhere. The HOA should have a map showing the locations of what valves turn the water off to what units. Generally water service within the complex is the responsibility of the HOA, rather than specific residences and/or the city.
City owned valves - For every property, there is a city owned and operated water valve. For single family homes it's under a concrete lid in the lawn or sidewalk. For HOA's, it could be anywhere but since it shuts off water the entire complex, it's not the one to use. You should never try to use the city owned valve to turn water off as if it's seized and it breaks, the city may charge you to replace it. At the bottom of this email are numbers for water services for all the cities in Santa Clara County. If you need them to come, call them. They tend to respond very quickly to emergencies.
After years of being open, valves can seize. When you have an emergency there is a tendency to force seized valves. When you have a fountain in your home it's hard to resist this urge, but you're better off moving to the next valve upstream. It will probably get the water off quicker.
For the record, there is a product named Liquid Wrench which loosens seized plumbing connections, including seized valves, and it really works. It's amazing stuff. Just follow the instructions on the can.
If you have an emergency leak in your home, try valves in the following order:
1) Right angle stop to specific device.
2) Main valve for house.
3) Call the city.
Sunnyvale - 408-730-7510
Santa Clara - 408-615-2000
San Jose - 408-279-7900
Cupertino - 408-279-7900

Explaining the Economy

Yesterday, we had a small turnout at our Chamber of Commerce leads group, and two of the members, new arrivals from other countries, asked for our take on the current economic crisis. Ed, a bearded easy-going intellectual, and a retired Stanford professor, gave a clear and concise explanation of the steps that led up to the situation, and a list of the "players" in what has become a losing game for the country. When we reached the subject of the proposed bailout for the financial institutions, the clarity disappeared. It's always easier to analyze history than it is to come up with workable future solutions. We all agreed that something must be done...but the devil's in the details. Certainly an uncontrolled gift of more taxpayer money can't be the answer.

New Tips for Earthquake Safety

Most people saying that "the sky is falling" lately are talking about the economy, but a recent article reminded me that we are still in earthquake country. Studies have disproved our old standbys: duck and cover, and stand in a doorway.
These nine pointers from Doug Copp are worth remembering.

1) Everyone who simply "ducks and covers" WHEN BUILDINGS COLLAPSE is crushed to death -- Every time, without exception. People who get under objects, like desks or cars, are always crushed.

2) Cats, dogs and babies all naturally often curl up in the fetal position. You should too in an earthquake. It is a natural safety/survival instinct. You can survive in a smaller void. Get next to an object, next to a sofa, next to a large bulky object that will compress slightly but leave a void next to it.

3) Wooden buildings are the safest type of construction to be in during an earthquake. The reason is simple: the wood is flexible and moves with the force of the earthquake. If the wooden building does collapse, large survival voids are created. Also, the wooden building has less concentrated, crushing weight. Brick buildings will break into individual bricks. Bricks will cause many injuries but less squashed bodies than concrete slabs.

4) If you are in bed during the night and an earthquake occurs, simply roll off the bed. A safe void will exist around the bed. Hotels can achieve a much greater survival rate in earthquakes, simply by posting a sign on the back of the door of every room, telling occupants to lie down on the floor, next to the bottom of the bed during an earthquake.

5) If an earthquake happens while you are watching television and you cannot easily escape by getting out the door or window, then lie down and curl up in the fetal position next to a sofa, or large chair.

6) Everybody who gets under a doorway when buildings collapse is killed. How? If you stand under a doorway and the doorjamb falls forward or backward you will be crushed by the ceiling above. If the door jam falls sideways you will be cut in half by the doorway. In either case, you will be killed!

7) Never go to the stairs. The stairs have a different "moment of frequency" (they swing separately from the main part of the building). The stairs and remainder of the building continuously bump into each other until structural failure of the stairs takes place. The people who get on stairs before they fail are chopped up by the stair treads. They are horribly mutilated. Even if the building doesn't collapse, stay away from the stairs. The stairs are a likely part of the building to be damaged. Even if the stairs are not collapsed by the earthquake, they may collapse later when overloaded by screaming, fleeing people. They should always be checked for safety, even when the rest of the building is not damaged.

8) Get near the outer walls of buildings or outside of them if possible. It is much better to be near the outside of the building rather than the interior. The farther inside you are from the outside perimeter of the building the greater the probability that your escape route will be blocked.

9) People inside of their vehicles are crushed when the road above falls in an earthquake and crushes their vehicles; which is exactly what happened with the slabs between the decks of the Nimitz Freeway. The victims of the San Francisco earthquake all stayed inside of their vehicles. They were all killed. They could have easily survived by getting out and sitting or lying next to their vehicles, says the author. Everyone killed would have survived if they had been able to get out of their cars and sit or lie next to them. All the crushed cars had voids 3 feet high next to them, except for the cars that had columns fall directly across them.

Area Real Estate Holds Its Value

Okay, so in looking at it, yes, the nation’s economic news did nothing for our wallets this week. Many of us are still sobbing over our investment portfolios. But as you can see, real estate has remained pretty stable in the face of the negative news on Wall Street. Overall I think buyers are starting to get the idea that it may just be time to get into the housing market and sitting on the sidelines may cost them plenty—in terms of higher prices, higher interest rates and less inventory—in the long run.
Our nation’s financial system is in the midst of a massive shakeup, caused largely by this decade’s housing correction. Between 2002 and 2006, household borrowing grew at an average annual rage of 11%, far outpacing overall economic growth. Borrowing by financial institutions grew by a 10% annualized rate. Now many of those borrowers can’t pay back the loans, a problem that is exacerbated by the collapse in housing prices. They need to reduce their dependence on borrowed money, a painful and drawn-out process that can choke off credit and economic growth.
Waiting for the bright spot? Keep reading. There’s no question, the result of foreclosures have drastically hindered our median sales price in many of the Valley's markets, but real estate is a strong, long-term investment and as long as consumers keep that in mind, they can prevail in today’s market.
Anyway..things are looking pretty bright for Silicon Valley real estate. Our Cupertino DeAnza office is seeing things picking up and there was a lot of optimism at the sales meeting. Los Altos First Street office reports that buyers are still lining up for a few select properties. There was a very nicely redone and staged Cupertino townhome listed at $588,000. The listing had 14 offers and sold in the mid $600,000s. We saw a number of multiple offers this week, almost all were on REO properties....one low priced listing had 70 offers!

Sunnyvale Heritage Park Museum Opening!

The grand opening of Sunnyvale's Heritage Park Museum is taking place this Saturday, September 27, from 12:00 to 4:00pm. The ceremony takes place at 12:15, and we're all invited. Admission is free. Heritage Park is in the Sunnyvale Community Center grounds at 550 East Remington Drive. Activities include live music by the Celtic Sands, (Martin Murphy the founder of Sunnyvale was Irish)Irish dancers and bagpipes, children's activities, historical contests, and tours of the new museum. Lunch by Fibbar McGees is available.
For more information, go to the Museum website, or call (408)736-4713.

Seller Down Payment Assistance

With lenders getting tighter in their credit requirements, it is more and more difficult for new buyers trying to buy in this "buyer's market". It is doubly hard for those who are well qualified, but are lacking sufficient down payment and closing costs for an FHA loan. The Bush Administration banned down payment assistance programs in July.
Recently, in a last-ditch effort to head off the Oct. 1 ban on the use of seller-funded down-payment assistance with FHA-backed loans, the House Financial Services Committee adopted H.R. 6694, legislation designed to reauthorize and reform that help. This is a compromise bill that would mend rather than end the practice of down payment assistance. It would allow qualified borrowers with credit scores of 680 or above to use seller-funded down-payment assistance on FHA-backed loans. Borrowers with scores between 620-680 will be subject to risk-based pricing and higher insurance premium fees.
But the bill still needs to be approved by Congress and the President. H.R. 6694 is a vote for the next generation of homeowners.

Wonders of our Water Works Tour

Tired of reading all the econnomic news, I joined members of my dance club for a wonderful and informative free tour yesterday. It took about two hours, with an introductory talk and a bus ride with one of the plant engineers along to explain the process of turning waste water from out homes and businesses into water clean enough to be recycled back into the Bay or used for local landscaping.
The San Jose/Santa Clara Water Pollution Control Plant plays a vital role in protecting and preserving San Francisco Bay and has received numerous environmental awards during its 50 years of service. It is one of the largest advanced treatment plants in the nation and a marvel of engineering and technology. The adjacent Don Edwards San Francisco Bay National Wildlife Refuge is the largest urban wildlife refuge in the U.S. and home to two endangered species. Located along the Pacific Flyway, millions of shorebirds and water fowl stop to refuel at the Refuge during the spring and fall migrations.
If you are interested, you can reserve space for one of the popular Saturday tours (already filled for the nest month) on their site, Wonders of our Water Works.

Real Estate Headlines Pushing the Panic Button

I wrote yesterday's post complaining about local buyers being influenced by articles originating in other parts of the country. Today's San Jose Mercury's front page story featured screaming headlines: "Housing Plunge, Valley's Median price dives to 4-year low. Sales fall too." this was accompanied by a big color sketch of houses for sale, with their roof lines converted to a downward sliding graph. Of course, the small print in the rest of the article covered the truths that the headlines neglected to mention: that there were segments of the county that were not declining in value, such as Los Altos, Cupertino, Saratoga, etc., and that the median price drop was mostly caused by the increase of lower priced homes in the $500,000 and under range. What good does a statement several paragraphs down that reads, "There is no need for general panic," and an admission that "Median price figures do a poor job of telling individual homeowners how their property values are faring," do, when headline readers are already in a state of panic?

Scary Headlines and Real Estate Prices

Nearly every day now, headlines and feature articles in the local papers talk about some terrible economic news, foreclosures, the buyer's market that we are in. Many of these articles originate in New York, Los Angeles, or Washington. Sure, things are pretty grim, but when readers in Santa Clara Valley see the headlines, they often don't read on and realize that this is not a picture of the Sunnyvale, Cupertino area, where good schools and jobs combine with low inventory to produce a strong market. So when someone from San Jose wants to buy one of our carefully priced properties, he remembers reading "Buyer's Market" and comes in with a lowball offer, as someone did on my townhouse listing this week. I am afraid that the newspapers will create a new reality and outside opinions will begin to effect our property values. Can headlines take precedence over traditional supply and demand?

10 Easy Ways to Spruce Up the Kitchen

When I hold an Open House, the first room buyers head for is the kitchen.
WIN Home Inspection has compiled a list of ten easy and inexpensive options to spruce up any kitchen or get your home ready for its big debut.
1. Add Paint
Old wood tone cabinet's spray-painted glossy white or hand painted with an oil-base in creamy white provides yards of look for very little money. Many manufacturers produce easy to apply paint that glides on smoothly and leaves barely visible brush marks....but I'd advise using a pro for this job.
2. New Knobs, Handles And Hinges
When renovating cabinetry, new pulls or handles add freshness to any kitchen and can completely change the look of cabinets if you don't want to paint them. Even old exposed hinges can be updated to reflect the current design trends.
3. Remove The Clutter
Less is more when you're selling a home! Look at the cabinets and consider which doors could be removed to expose the shelving. Open shelving helps make a kitchen look bigger. Display your favorite items for a new look. If you'd like, paint the inside of the cabinets the same as the outside or add a splash of color.
4. Glass Fronts
Replace outdated colored glass cabinet doors with new panel fronts in clear, frosted or ribbed textures.
5. Add Lighting
Adding new lighting to any kitchen will brighten up the space immediately. Even wire suspension lights can make the space look contemporary and new.
6. New Countertops
Have new countertops in a day. If the counter space is not large, go ahead and splurge on new tile or laminate countertops. It will make the entire kitchen look more luxurious.
7. Quick Floors
Today there are countless self-stick tiles that can be added to quickly revamp any outdated floor.
8. Flashy Faucets
Here's another feature to invest in. A flashy new faucet can make even an old sink fade into the background. Great faucets are found in most home improvement stores and readily available in a variety of styles.
9. Window Coverings
New window coverings should replace old faded prints, making the windows and walls look updated and fresh.
10. Scrub It Clean
As always, it's important to give every component in your kitchen a thorough cleaning. Buyers frequently examine this area closely as a clue to the occupant's general housekeeping and maintenance practices.

Be Safe Out There

This year, September 14-20, has been designated as the sixth annual REALTOR® Safety Week. A salesman gave us safety hints and demonstrated a pepper spray gadget at our office meeting this morning.
THe National Association also has an excellent video for Realtors and their clients that would be helpful for anyone who wants to avoid dangerous situations on the job, on the road or at home. Check it out at Realtor Safety Video. Daylight will be more limited soon, and it pays to be prepared.

What is an REO, and Should I Buy One?

At my open house this weekend, several people asked about finding bargains in today's market.
On the face of it, short sales, foreclosures and REOs may look like the same thing, but they are different. As pointed out in the Realty Times’ article entitled, Foreclosure Basics: Foreclosures, Short Sales and REOs, "if you enter the market wanting to ‘do foreclosures,’ without understanding the entire process, you could wind up in trouble.”
How common are these types of sales in today’s market?
While it depends on the market, short sales, foreclosures, and REOs are becoming commonplace in many markets throughout Northern California. What is an REO?
As the Realty Times article points out “If no-one bids high enough to meet the lender’s price at auction, the foreclosure completes and title transfers to the lender. Real Estate Owned means the property is owned by the lender.”
The article went on to point out that “Some investors see REO homes as the best way to buy property because there are no emotions involved: it's strictly business
between the investor, their agent, the lender, and its agent. And because most lenders aren't landlords (nor do they want to be), investors can often get a very reduced price.”

Update: The Silicon Valley Real Estate Market

The recent government rescue of Fannie Mae and Freddie Mac has been a great thing for interest rates and consumer confidence. It will be interesting to watch it unfold over the next several weeks.
Our Cupertino office points out, “Lots of enthusiasm! Let’s hope it translates into transactions!” We’re definitely seeing increased buyer interest right now. Pendings are up 121% over this time last year and inventory is down. But buyers are still cautious and slow to make offers. Our Los Altos San Antonio office points out that “Activity was way up from last week. Buyers seem to be out in full force at our open homes.” Our Saratoga office concurs, despite what they thought was going to be a slow week. “Although sales have been decreasing,” said Saratoga Manager Pat McKeany, “we experienced a spike in sales yesterday with nine being processed. Hopefully this is a sign of improvement. Additionally we had 10 offers on a well-priced Saratoga home.”
The South County continues to be driven by bank-owned properties and sales in that market have been steady over the last week. In many cases, these homes continue to generate a lot of buyer interest and often result in multiple offers. Sellers in this market seem to be getting the idea and we are starting to see some welcome price adjustments.
Now that Labor Day is over and everyone is back from vacation, I think we’re going to see a spike in sales. Couple that with the Fannie Mae, Freddie Mac takeover and we’re in a pretty solid situation heading into autumn.

Flooding in Sunnyvale?

With Hurricane Ike about to wreak destruction on the Texas coast, it seems strange to talk about possible flooding in an area where we are conserving water to prevent drought. But every winter at least one major storm hits Sunnyvale, which can cause major damage to homes, businesses, and transportation. The Sunnyvale East and West Channel flood protection projects are in place to increase flood protection, create recreational opportunities, and to enhance the environment. Mr. Beau Goldie, the Deputy Operating Officer of the Santa Clara Valley Water District came to the Chamber of Commerce's Wake-Up Sunnyvale meeting last week and talked about the Santa Clara Valley Water District projects in place to protect residents and businesses of Sunnyvale. For more information, go to the Santa Clara Water District site, and link to Flooding.

Home Price Comparisons and the Candidates

A candidate comparison: Barack Obama’s primary residence is Chicago, Ill., where the average home price is $863,300, whereas John McCain lives in Phoenix, Ariz., which averages $288,000.
Swing states: Both candidates are likely to spend a large amount of time campaigning in several key “swing states” between now and November. The national economy and the housing market represent critical issues for many of these voters. The average price in each of those states is as follows: Colorado ($402,497), Florida ($357,596), Indiana ($224,906), Iowa ($196,134), Michigan ($201,291), Missouri ($212,850), Nevada ($287,375), New Hampshire ($401,697), New Mexico ($478,343), Ohio ($191,051), Pennsylvania ($332,955), Virginia ($309,070) and Wisconsin ($231,044).
This may not impact the election, but it will be interesting to see how it all plays out. By the way, the prices in Alaska are: Juneau $402,873 and Anchorage $337,725.

The $1.7 Million Difference

Although both are waterfront cities, something besides the salt water separates La Jolla, California from Sioux City, Iowa on the Missouri River – a $1.7 million dollar difference in the cost of homes studied in the 2008 Coldwell Banker® Home Price Comparison Index. In an annual comparison of similar homes in 315 U.S. markets, La Jolla topped the chart as the most expensive real estate market in the nation with a $1,841,667 average home price. Sixteen hundred miles away in America’s heartland sits Sioux City, the most affordable real estate market in America, where a similar home would cost $133,459.
Not too surprisingly, eight out of ten of the country’s most expensive housing markets are in California, and eight Midwestern cities make the list of the nation’s 10 most affordable markets.
The annual Coldwell Banker report provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in 315 markets across the United States, in addition to Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker has a presence.
Using this study, prospective home buyers and sellers can calculate what their homes may be worth in other areas in the United States.
La Jolla edges out Greenwich, Conn. ($1,787,000) and other West Coast markets as the most expensive U.S. market in the study. Also on the East Coast, Boston, Mass. ranks as the ninth most expensive ($1,493,750). Beverly Hills was the most expensive studies U.S. market last year at $2.21 million. Note: Manhattan was not included in New York City because of the lack of comparable single-family homes.
For full details and to find out what your home would be priced elsewhere in the country, go to the Coldwell Banker Price Index site.

Mortgage Rates Headed Down

We knew that the government would probably make the move that they did to shore up Fannie Mae and Freddie Mac.
Without an institutionalized mortgage-backed securities market, mortgage capital eventually would have been less predictable and more expensive, and adjustable-rate mortgages would become the standard loan for homebuyers, as would higher down payment requirements. The 30-year, fixed-rate mortgage as we know it would no longer be readily available for most homebuyers and might effectively disappear. The result would probably be a dramatic decline in homeownership rates in California and across the nation.
But now that they have made the decision and the mortgage market seems more secure, we are discovering an unexpected bonus. Interest rates have dropped precipitously. In only one day, conforming rates have fallen more than a half percent, and seem to be headed even lower. Time to refinance? Time to buy?

Smartphones and the House Search

The Mercury had an article today about one more way that our tech savvy buyers are using to house hunt. Realtors in the Silicon Valley know that a huge percentage of our buyers use the Internet to search for homes and to check out open houses. That's why we make sure that we cover all the bases ans have quality photos, virtual tours, and detailed information available to them.
Now they have another way to look at what's on the market...their cell phones and wireless devices. How simple it is to see a house you like, get driving directions, and call your agent, all on one gadget. Realtor.com has had a downloadable feature for over a year, and Trulia, recently connected with our Coldwell Banker system, has a search (Trulia Mobile) that will show you open houses and listings nearby without typing in your location.

My Take of the Freddie, Fannie Bailout

I guess that I'm not the only one working on a Sunday.
Today, Treasury Secretary Henry Paulson announced the anticipated plan for Fannie Mae and Freddie Mac, which own or guarantee about $5 trillion in home loans, about half the nation's total. An alarming number of those loans have started going into default, draining the companies' financial reserves and sending a chill through credit markets worldwide. As investors grew more nervous, borrowing costs started rising.
For homeowners behind on their mortgage payments, or who owe more than their homes are worth, this plan doesn't offer much help, but it will be good news to homebuyers and some homeowners hoping to refinance if it leads to lower mortgage rates, as experts expect. Falling rates...by as much as 1/2% in the next few weeks...should attract more potential buyers into the market.
Maybe government control will allow the companies to focus on their mission of supporting the housing market. The Federal Housing Finance Agency, the new agency created by Congress this summer to regulate them, is planning to work with the companies on loan modification efforts and to report on their results in the coming months. Most mortgage brokers expect Fannie and Freddie's lending standards to remain unchanged, with tight requirements on buyers' credit, but some of the extra fees that have been passed on to buyers may be reduced.
Just remember, the costs for all this, estimated at tens of billions, will come out of taxpayers pockets.

Feeding the Realtors

The San Jose Mercury printed an article from the Los Angeles Times this morning, titled, "Nourishing the Feeble Market." In it, they described serving food on the Realtors' tours as if it were a new idea, created out of desperation by agents in a down market. Certainly, there were agents who didn't bother with the extras in the all-too-brief periods when a sign on the lawn meant an instant sale, and there are still a few lazy salespeople who don't bother to expose their listings fully to agents who might have a buyer...but a professional Realtor is at the house to greet fellow agents, and to offer food and drink. When we are out touring, we will check out most properties, whether they offer goodies or not, but food adds an extra incentive. Long-time agents even have their specialities...Dave Clark brings chicken wings, Carolyn Miller offers cheesecake, and I bake homemade brownies. (I tried cookies once, but everyone asked where the brownies were!)
We leave the catered meals to the Beverly hills agents with their listings in the $35million range, but it's not news that the way to a Realtor's heart is through his/her stomach.

The Scoop on Santa Clara

Our speaker at today's Board of Realtors meeting was Carol Anne Pointer, city planner for the City of Santa Clara. With most of California's cities (and counties, and the state!) complaining about their lack of funds, it was a pleasure to hear about one that has a healthy budget, and money to invest in its infrastructure. Santa Clara's funds come primarily from two sources: rent from city-owned land and Silicon Valley Power, which is also owned by the city. This company, which provides reasonably priced power to city residents, obtains 70% of its energy from alternate sources, such as wind and solar power. Less expensive power, combined with a smooth planning system, are attracting new residential construction huge commercial growth by companies such as Yahoo...quite a coup for a city of 115,000.

When the Leverage Disappears

One of our biggest selling points in real estate sales used to be the buyer's ability to leverage a relatively small amount of money into a large and growing investment. But low down payment loans are becoming a rarity, now that lenders are becoming more discriminating with their credit.
Leverage is a good synonym for credit. It lets you lift more than you could with your own financial muscle. In 2007, 45 percent of first-time home buyers put no money down on their purchase, and the median home buyer financed a full 98% of his mortgage. But these generous terms began to fade in late 2007, and had nearly disappeared by early 2008. It's not wonder that existing home sales fell 13.2 in July over the same month last year, while new home sales dropped even more...by over 35 percent.

What is it That These Realtors Do?

Clients seem to realize that much of a Realtor's function is in the "paperwork"...writing and negotiating contracts...especially here in California, where attorneys are rarely used in these transactions. They might have guessed that much of our work now involves computers, in property searches, researching values, and inputting listings on the MLS. They might also note that we are in the people business, holding homes open, and helping buyers to choose the perfect home.
What they might not be aware of is how much work is done behind the scenes. Over the last couple of weeks, I have been preparing a townhouse listing for sale. This has involved meeting with a painter and carpet installer, choosing colors, negotiating price, and scheduling. Inspections had to be ordered and inspectors met, a cleaning service arranged, and nearly daily meetings held with my handyman to make certain that all the big and little jobs were done. Tomorrow he will be planting the patio flowers that we choose and I will be mini-staging the place. Then on Thursday, the photographer that I hire arrives. All this needs to be done before the property ever goes on the market. Then the real work begins.

Labor Day, and the Remodelers are Working

I spent a good part of the weekend in downtown San Jose dressed in petticoats, and demonstrating square dancing with my club. Next to our performance area was Parkside Hall, filled with vendors of all sorts. As I walked through the building, I noticed that a very large number of the booths were taken by home remodelers of all sorts...dual pane windows, sliding doors, solar panels, kitchen and bath displays, and a big Home Depot setup...It was almost like a home show. I couldn't help but think that this industry must really be hurting when the economy takes a dive, and the former "easy money" from refinances has dried up.