Bobbie's Real Estate Blog

Gender Gap in Real Estate

2012-01-12T20:51:00.000-08:00

On average, male real estate agents list more homes than women do, while the homes women list have higher asking prices, according to a study by real estate search and marketing site Trulia.
In a one-day snapshot last autumn, the site examined the total number of male agents compared to female agents, and which gender had listed more homes for sale and which listed more expensive homes, on average, since joining Trulia.
They used a "Name Genderizer" tool to categorize whether the names are most likely male or female. (What would they have thought of Bobbie?)
I was especially interested in those studies because of the large percentage of successful female agents in the Bay area, and in my office, particularly, but we've always known that national real estate statistics have little bearing on those of Silicon Valley.

Repairs Before Selling

2011-11-28T13:57:00.000-08:00

The year is almost over, and sellers should be thinking ahead if they are planning a springtime sale.
One question many home sellers confront is what repairs, if any, to make before beginning to market and sell a home. My clients have their property inspected before placing it on the market in order to have time to make any needed repairs. If time for repairs is not factored in, home sellers may find themselves forced to lower the price to account for damage.
According to Inman News, failing to plan ahead this way may force a home seller to push back the marketing timetable while repair work is done, thus slowing the pace of the home selling process. While some may have the time, home sellers who need to move into their new home, or who are dealing with a new job, may find the complications difficult.
One expert recommended to Inman that home sellers who need repair work done consult multiple contractors to get competing bids, and look for those who guarantee work for buyers and are willing to complete any additional work discovered in the course of repairs at no additional charge.
According to the Federal Trade Commission (FTC), the best way to find a good contractor is to ask friends, family and co-workers who have had work done about the expense and quality of work they received. One way to check on a contractor's work is to ask not only for references, but to see jobs currently in progress.
Contacting current and past customers can provide a clear sense of whether previous clients are happy with the contractor's work.
Another way to ensure professionalism is to ask what permits the work being discussed might require, and to check that the contractor has any licenses required.

Why I usually Avoid Short Sales

2011-11-19T12:02:00.000-08:00

The negotiator from the bank came back to us with an inflated appraisal that was $50,000 higher than the listed price. Fortunately, my client is "hanging in there" while we submit new comparables, and collect estimates on the work required in our professional property inspection. The big question is what position the bank would be in if they allow this all-cash transaction to fail. If the property goes into foreclosure, the condo could easily sell for less than we are offering, and it would take many more months to achieve that result. Frustration for the seller, the buyer, the agents...and a loss to the bank. Meanwhile, we wait.

Short Sale Tips

2011-10-28T14:11:00.000-07:00

While my client and I were waiting to hear from the bank,in response to our short sale offer, I received the following useful pointers for Short Sale buyers and their agents, provided by Trulia.

Roughly forty percent of the homes for sale on today's market are short sales and foreclosures! Distressed properties are well known for their value (a reputation which is sometimes accurate, and sometimes not), but they also have a reputation for causing buyers to become distressed too. Transactional snafus, last-minute surprises and long, drawn-out escrows that never close seem to be par for the course.
Instead of avoiding these properties altogether, get educated about the most common dramas that go down in these deals, and how you can avoid falling victim.
When you’re buying a home (or selling one, for that matter), time is absolutely of the essence, but banks don’t have the same sense of urgency individual home sellers do, and while a standard sale from an individual seller to an individual buyer might take 45 days from contract to closing, a short sale can take anywhere from 45 days to 6 or 8 months after the seller has accepted the contract to get the deal closed.

Most Common Complaints of Short Sale & REO Buyers
Run-on (and on, and on) escrows
Avoid the drama by expecting your escrow to run long, and being pleasantly surprised if it doesn’t. Expectation management is everything. Make sure you take these extended timelines into account when you’re working with your mortgage broker on the issue of when to lock your interest rate, and how long your rate locks will last. You might even need to plan on and/or set aside an allowance for the cost
of extending your low interest rate if rates are rising rapidly during the time you’re waiting for the deal to be done.

Banks owe their shareholders and investors a duty to get as much as they can for these properties. Just because you see it’s on the market and listed as a short sale or a foreclosure doesn’t mean they’re going to give it to you for a fraction of its worth. The bank’s goal is to get a purchase price as close as possible to the home’s fair market value, as determined by the recent sales prices of similar, nearby homes, with some adjustments made for the property’s condition. Fact is, many banks
would rather see the listing agent reduce the price by a moderate amount, and wait to see what offers come in, than to accept an offer 30 percent below the asking price just because there are no other offers on the table.
Avoid the drama by working with your agent to make a realistic offer, based on recent comparable sales in the neighborhood, not just on what you think you can get away with.

These transactions have an uncanny way of being delayed at the last minute - or never going through at all, through no fault of the prospective buyer. If you’re in contract on a short sale, you should take the point of view that you don't have a firm deal until you get the bank’s approval of the transaction. Make an offer on a normal home and you’re likely to know what the outcome will be within a few
hours or a few days, at the outside. If things take longer because the seller is out of town, the listing agent tells you that, and you at least know what’s going on.
Make an offer on a bank-owned property or a short sale? It could be days, but could also, easily, be weeks or months before you know what’s going on. No amount of calling, pleading, prodding or nudging is likely to get you much information on how your offer or the seller’s short sale application is being handled or what (if any) progress is being made. That “black box” into which your offer disappears at the bank level can be very frustrating.
Realize that working with the bank on the bank’s terms is unavoidable when you buy a
distressed property. Then, go into the deal with realistic expectations - including the expectation that the bank will drag its feet, despite expecting you to keep every deadline - and you’ll be less frustrated, and less likely to make poor decisions out of frustration. Also, make sure you do respond in a timely manner to the bank’s requests and your obligations under the contract.

When the Value is In the Land

2011-10-16T10:57:00.000-07:00

Potential clients called this week asking about the value of a double lot on a busy street in Sunnyvale. The house on one of the two plots is quite run down, and the other is vacant. The magic comes from the school district...being located near some of the top Cupertino Schools will make this property valuable to a contractor who wants to tear down the existing house and build a large new home.
Coincidentally, my son Dave sent this photo of the autumn view from his patio in Michigan today. Earlier this year, they bought this lakefront property consisting of 10 acres and a huge older home for under $400,000. With their extensive remodeling, the value would be about a million dollars. In the Bay area, it would be priceless...if such land existed. Well, at least we don't have snow.

My Short Sale

2011-10-02T12:03:00.000-07:00

Funny that I had written my last entry about problems in short sales, and here I am, handling one. Fortunately, this sale should be simpler. Most of my business at this point of my career is from client referrals, but an all-cash buyer had contacted me this summer from my website, looking for an investment property. I saw a good deal in a Sunnyvale townhouse, listed as a short sale, but before we could write an offer, the property was in contract.
Around a week ago, the listing agent called me. We knew each other from way back, and she asked if my client might still be interested. The first sale had fallen through when the offer reached the bank's negotiator. Typical for short sales, it had taken two months to reach that point.
My buyer and I went through the townhouse, and re-read the disclosures, and quickly wrote an offer. The package is on its way to the to the bank, and I have scheduled a property inspection to eliminate any surprises down the road.

Short Sale Fraud--Trash for Cash

2011-09-17T10:24:00.000-07:00

In the world of real estate, there's always something new under the sun. There also seem to be new types of fraud and scams developed with each change in the market. Now the scam artists have discovered short sales and foreclosures.
If you’re thinking about working with a financially distressed seller and the house he wants to sell is trashed, make sure he didn’t trash it himself. One of the types of short sale fraud that Fannie Mae is seeing these days is “reverse staged” houses. In these cases, owners trash their house to knock down the property value. There are photographs on broker price opinions that actually show cupboard doors missing, appliances pulled out, and graffiti or trash on the counter tops. Because there are actually websites where you can get repair bids, they can submit false repair bids for the work that needs to be done. A buyer with whom the owner is colluding then comes in with a low-ball offer, buys it and fixes it back up, then flips it for its real market value. That seems like a brazen scheme, but mortgage fraud by its nature is a brazen activity.
Kim Ellison is a Fannie Mae senior industry relations manager for the mortgage fraud program. She also sees a lot of illegal flipping and non-arm’s-length transactions. The non-arm’s-length space is a smaller percentage, roughly 9 percent. Usually the delinquent home owner is selling the property to a family member or a business partner without disclosing the relationship. It’s really an effort for the owner to stay in the home. Instead of making payments to the mortgage company they’re making payments to the family member, as rent. They’re hoping to clean up their credit and reapply for a mortgage down the road.
Selling to a related party isn’t illegal. It’s just the lack of disclosure. The loan servicer may waive the non-arm’s-length requirement, but there have to be compensating factors, and story has to make sense.
These are just a couple of the fraudulent schemes out there. No wonder Fannie Mae is in trouble.

Finding those Files

2011-09-03T14:14:00.000-07:00

My friend Lynn Gross-Cerf, who is a great organizer, just sent an email reminding me that Sept 19-23 is "National Love Your Files Week". (There seems to be a week or day for anything and everything.) This event was created to demonstrate that a good filing system is a powerful asset.
It was apt timing because I had just been out to my garage searching for an escrow file. My associate, Judy, is the listing agent for a property that I sold in 2004. In that earlier sale, I represented the sellers, who have since left the area. Her clients wanted to know what termite work the sellers had completed....The recent inspection found old pellets, and needed to know if these were "souvenirs" from the previous sale. Naturally, the buyers had not kept these records, and neither had the termite company.
I moved the freezer that sits in front of the filing cabinet in the garage where I keep the really old records, and then I hit a snag. There was a box neatly labeled 2004, and another labeled 2004-2005, but neither would budge. I plugged the freezer back in, and called Judy. If they really want that file, they will have to come and retrieve it...and no, Lynn, I do not love my files.

New Agents

2011-08-19T12:11:00.000-07:00

Last week, I was contacted by a young woman who lives in Old Orchard, an area that I contact regularly with mailings about the market. She had recently passed her real estate license test and wanted advice on how to get started. I remember from many years ago that schools such as Chamberlain and Anthony's prepare a future Realtor to take the State exam, but provide no direction beyond that. The basis college classes are not much better preparation for the actual world of real estate sales.
She came into my office and we talked for some time about time management, juggling a home, young children, and this business.(Been there, done that) Then she spoke to Nina, my manager about training and costs.
Coincidentally, My grandson is in his last year of a business degree, and is also seriously considering a sales career. I plan to mentor him as he begins.
With an aging Realtor community (see my post:Real Estate Agents are Aging:Saturday, November 13, 2010), it is a pleasure to have young people choosing what can be a challenging but potentially lucrative business.

Balancing Work, Play and Volunteering

2011-08-05T14:04:00.000-07:00

August should be a month for vacations, but having been away for more than a week in late June, I am playing "catch up" at the office, and fitting in a few added demands on my time.
Thousands of local Realtors are taking part in a lock box and key exchange this week, along with the juggling involved in making this happen smoothly. As expected, there are glitches in the system, even though both boxes and keys were Beta tested. This morning, I lugged seven extremely heavy lock boxes to a well-coordinated exchange at DeAnza College, and carried out a set of even heavier replacements. I also picked up a new key that will need to be used while the stragglers replace their old boxes, hopefully within a month. The exciting part of all this is that eventually, when all the bugs are worked out, my Android phone will...at long last...serve to open the boxes when I show property.
Next week begins the volunteering segment. Our office is holding a breakfast and auction to benefit Habitat for Humanity, and I'll help out as sous-chef, runner and dishwasher. This is just the first of several events we have planned.
So when do I manage to play?...Whenever I can.

Summer Real Estate Market

2011-07-23T13:12:00.000-07:00

The Bay Area housing market usually picks up in March, April and May and then slows down over the summer for vacations, graduations, weddings and other activities. But this year it seems like that’s being reversed.
After a rather slow spring, the local housing market has been heating up this summer with strong sales in June and even into July in many areas. Sales activity has been especially busy in the higher end of our markets, which is over $1 million in much of the Bay Area...but even the mid-level market was surprisingly active
There is an interesting trend in last month’s sales figures: In most of the Bay Area, we had the highest level of million-dollar home sales since the summer of 2008, just before our economy went into a tailspin.
Certainly, the Bay Area’s relatively strong economy...especially in the tech sector... is playing a key role in our housing market. Inman News wrote in a Friday article, “Tech is back -- and tiptoeing along behind it, at least by some measures, is the San Francisco-area real estate market.”
This doesn't mean that the housing market is completely out of the woods, because real estate is very much a local business. While many of our markets are on the mend, others are still softer than they were a few years ago, and there are still distressed properties coming on the market as bank owned REO sales in the months ahead.
With the national and state economies still fragile, we are fortunate to live and work where we do. Limited housing stock, a diverse job base and great weather are all factors that help home buyers focus on these terrific home values and low mortgage rates.
The best homes are getting lots of offers, and in our Cupertino office, the majority of sales are with multiple offers. Seems like we are having a delayed spring.

A Tale of Two Transfers

2011-07-17T10:25:00.000-07:00

When I returned from Michigan, I was contacted by two families transferring from out of state to Silicon Valley. The first referral was through a company I had worked with before. Their new CFO, his wife and son, were moving from the Midwest and needed a house rental. In a normal market, a 2500 square foot house in a good school district would be easy to find, especially for stable family willing to pay up to $5000 a month. After talking to a few reliable rental agents I know, I discovered that not only is the local rental market tight, a good rental house of that size is nearly nonexistent. With new jobs come new problems, and the search continues.
The second challenge is a small family from Colorado. The husband is already here, and has begun a high paying job. He is renting a condo in Santa Clara for $2500 a month, and their quandary is: Do they give up the large house they love...only 12 years old, in an excellent school district, with a large yard and valued at $400,000...and buy something here for more than double that price and with fewer amenities? Or does that family remain divided, and perhaps invest in a condo so that the husband can move out of the rental? I have my in-house lender working with them on qualification, but neither solution sounds perfect.

Back from Michigan

2011-07-06T21:15:00.000-07:00

What a contrast from the real estate market in California! I expected to see depressed areas in Detroit, and although the bus tour drove through the best sections of the city, the tour guide admitted that a large percentage of the city's residents had left the city along with the jobs. Even in these tree-lined streets of beautiful homes, values had dropped by nearly half, and we passed occasional houses with boarded up windows and for sale signs in their front lawns.
We were there at the beginning of the River Walk celebration at the Renaissance Center, and the families enjoying the water views, lunching on ribs, and listening to music had a positive attitude that a down economy couldn't erase. We were there for a convention, and people saw from my badge that I was from California. More than one person stopped me and said to tell folks back home that they haven't given up and still love their city.

Let's Take a Look at the Local Market

2011-06-18T19:25:00.000-07:00

Now, more than ever, I'm reminded of how much real estate is about location, location, location. Things are far better here in the Bay Area than nationally. The overall market is much more stable than elsewhere in the country, and in some ares, it’s fairly robust. We continue to have multiple offers in all our offices. Not every property certainly, and not all multiple offers are well over the asking price. But there is a strong indication of Bay Area buyer demand that most of the nation is not experiencing today. We hear different variations on a common theme from our local Coldwell Banker offices: “It seems I get one of two results; either a few multiple offers within first 7 to 10 days, or I’m getting a price reduction 30 days later.” Thoughtful and strategic pricing, combined with staging interior and exterior of property are key elements to having the best chance at multiple offers....no surprise there.
The momentum seems to be slowing a bit in Cupertino. The best properties are still getting lots of attention, but there is less of a sense of urgency for the majority of the market as inventory continues to increase. The market is doing particularly well in the good school districts and in single-family homes, while condo sales remain slow.
We are continuing to see a high influx of buyers coming from the Pacific Rim with large down payments looking for good schools. There is still a lack of good inventory for buyers, especially in the entry-level markets. Palo Alto remains an extremely strong market with multiple offers in excess of 10% to 20% over list price, in many cases.
The bottom line... when a well-priced, beautifully stage listing comes on the market, it can probably expect multiple offers.

Real Estate Headlines Can Be Deceiving

2011-06-07T11:47:00.000-07:00

At this morning's office meeting, we had several hand-outs. The headlines from various newspapers ran the gamut from "Good News in the Real Estate Market" to "Is This the Beginning of Another Bubble?" and everything in between.
I was amazed at the attention the Case-Schiller housing study received last week. It covers only 20 markets, and that is just one of its many flaws. Yet many consider it “the be-all-and-end-all” economic indicator that defines our entire national housing picture. As we know, all real estate is local, and it is unfortunate that the reporting on a 20-city “national” index can have such a jarring impact on otherwise rational people.
Look at some of the headlines the other day:
“Home prices at lowest point since 2006 bust”
“Home values continue downward churn”
“No relief in sight’ for falling home prices”
And even in paradise – Maui- the front page headline in the paper screamed “Crash Spreads.” And Maui isn’t one of the 20 markets. In fact the nearest market covered is San Diego, a mere 2500 miles away!
For those who don't panic at any change in the wind, this can be the smartest time to buy a home if you have the lifestyle reason, financial stability and viability to do so.
You might just be surprised that the end of the world isn’t here yet … at least until next month’s report.

More Real Estate Control is Not the Answer

2011-05-27T10:59:00.000-07:00

I understand that both federal and local governments are deeply in debt, but the bills aimed at generating funds by attacking the already precarious real estate market are misplaced.
There is a proposal before government regulators to require a minimum of 20 percent down on all residential transactions. If allowed to take effect, the rule would put home ownership out of reach for middle-income Americans. It would take the average family 14 years to save up the down payment to buy a home.
Steve Kim, from our in house lender, Princeton Capital, recently sent me information on another obstacle to the housing recovery. On October 1 of this year, the top limit for conforming loans is set to drop from a temporary $729,750 to the general $625,500, in our higher cost housing market. Since conforming loans are eligible for sale to Fannie Mae and Freddie Mac, they generally have the lowest rates. When this limit drops, borrowers who want a bigger loan will have to get a jumbo, which includes both higher interest rates and tighter guidelines.
According to a recent Harris study, 54% of Americans do not expect to see a healthy housing market until at least 2014.
We just don't need more hurdles to cross in this slowly evolving real estate recovery.

Updates on Prop 90

2011-05-13T10:41:00.000-07:00

I like Larry Stone, our county assessor, and think he's doing a fabulous job, but every couple of years the 'powers that be' get the idea that they will help to make up a shortfall in the Santa Clara County budget(55 million dollars) by eliminating Prop. 90...and with it, Prop.60. By doing this, they estimate a savings of $50,000.
If you've forgotten, these propositions allowed seniors and the disabled to keep their existing property tax base when they moved to a less expensive residence in the county, and also welcomed home buyers from other California counties into ours with those rates.
What they seem to forget is that retaining those homeowners and bringing in new ones also adds an infusion of buying power to the county. It also frees up large houses for young families to purchase...homes where seniors would otherwise be trapped in order to keep their tax base.
Presently. there are only 8 Prop. 90 counties in California: Alameda, Los Angeles, Orange, San Diego, Ventura, and locally, Santa Clara and San Mateo. El Dorado County was recently added to the list.
Let's not be penny wise and pound foolish...We need Prop.90!

May Flowers...and Real Estate Sales

2011-04-30T11:56:00.000-07:00

As we head into the heart of this year’s spring season, I thought it would be helpful to share what we are seeing from a national perspective in the housing market and point out a few reasons for optimism in the months ahead.
Bruce Zipf, president and CEO of NRT, our national parent company, said this week that our overall business results have managed to exceed expectations, thanks in large part to a surprisingly resilient high-end market, especially here in the Bay Area.
Normally, we judge the strength of the housing market by looking at current sales volume against the same time last year to gain a sense of how things are improving. But we couldn't properly compare data from this March and April due to the artificial stimulus effects of last year's Home Buyer Tax Credit. In May, these effects should lessen and give us our first true glimpse of the market's strength, if we continue to see improvement in our market as we head into the heart of the spring buying season.
Our Cupertino office is seeing growing momentum from buyers looking to take advantage of mortgage rates while they’re still low, as well as prices that remain affordable. In fact, we continue to have more qualified buyers than listings. This is resulting in multiple offers for many attractive homes. Buyers are coming in with a lot of cash or all cash to win out the competition. Because obtaining loans and appraisals is on ongoing problem, these all-cash offers usually take priority. We are back to having the majority of our sales involve multiple offers. A very original fixer-upper was listed for $988k, got 11 offers, and was bid up about $100K
This is not to say that every market around the Bay is experiencing the same strong buyer demand. Certainly a number of communities have more balanced markets, and some homes continue to sit while others sell briskly. But in general, we’re seeing well-presented, well-priced homes selling much better today than they did a couple of years ago.
Another reason for optimism is that mortgage rates are likely to remain affordable for some time to come. I know a lot of market-watchers were concerned that the Fed could raise interest rates soon in response to inflation fears and the end of the government’s bond-buying program. But Fed Chairman Ben Bernanke largely put those fears to rest in his press conference this week.
So as we look to May and the upcoming summer season, there are many reasons to be encouraged that our housing recovery will continue to gain traction – especially here in the Bay Area.

Why I'm Still Selling Real Estate

2011-04-24T18:05:00.000-07:00

Mostly because I love it....and also because it can be so satisfying.
A while back, I wrote about handling a home sale where the appraisal came in very low and all parties had to work together to facilitate a close of escrow.
This email just arrived in my box:

Bobbie, sorry it took so long to get back to you. Jan and I want to thank you for all of your help in the selling of our home. It was a complicated, emotional and difficult situation to deal with and you handled it very professionally. Without your help we would not have gotten our price. Coldwell Banker should be very proud of you, I know I am. Thanks again for everything. You made the impossible possible.
Jan and I love it up here at Sun City Lincoln Hills and we have a guest bedroom just waiting for you to enjoy it. So.....come on down! I should say up.
Best personal regards,
Richard Martinez
Jan Martinez

The best endings are happy ones.

Finally, A new Season

2011-04-15T18:45:00.000-07:00

Officially, Spring began on March 20th, but the headlines in today's Mercury News heralded the true start of the season for Realtors. Home sales in March were the highest in four years in Santa Clara County...not quite at their all-time high, but moving up, especially in the high end of the market. Last year, people in the business mourned the end of the first-time buyer tax credit, but that loss doesn't seem to have effected our local area at all.
Inventory, which has been extremely low, is finally starting to rise, although Sunnyvale sales are brisk, and we're still seeing multiple offers on most properties. But buyers also have good news...the economy is keeping interest rates extremely low which translates to lower payments.
With sunshine nearly every day, flowers in bloom, and warmer temperatures on the way,
I expect that open houses will be busier than ever.
This promises to be a season to remember.

Who Pays What?

2011-04-04T20:25:00.000-07:00

Over the years, I have received offers from buyers' agents on Santa Clara County properties that included unusual terms. The closing costs established by custom can be flexible, but in most cases, local Realtors know that in our county, the seller pays title and escrow fees, and "across the border" in San Mateo County, the buyer is expected to cover these costs.
The poor buyers selling in San Jose and buying in San Mateo can be hit by a double whammy, whereas someone selling a house in Belmont and buying in Sunnyvale makes out like a bandit regarding closing costs.
If an agent doesn't know these area guidelines, he or she can cost the buyer a premium in escrow. For instance, a San Francisco broker once handed me an offer that had his buyer paying all the closing costs on a house in Cupertino...perfectly legal, but an unexpected bonus for the seller, just because the agent didn't do his homework.
Cornerstone Title recently sent out an updated information sheet of the customary expenses in all the Northern California Counties that my readers should find interesting.

Debunking Real Estate Myths

2011-03-27T13:45:00.000-07:00

A recent article on Trulia described widely-held myths about the real estate market. Here's my take on it.

1. Myth: Buyers with bad credit can’t qualify for home loans.
Even though requirements have tightened up considerably, recently, they seem to have relaxed a bit. A couple of the largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 to 580, which is actually a fairly low score, but they are expecting a 5-10% down payment with these lower scores.

2. Myth: The Mortgage Interest Deduction isn’t long for this world.
The National Commission on Fiscal Responsibility and Reform caused a massive wave of fear when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.
Fact is, the Commission made a huge set of recommendations to Congress, but only a few are likely to be adopted. MID reform is not one of them, since economists and industry groups are convincing Congress that MID reform any time in the near future would handicap the housing recovery.

3. Myth: It’s just a matter of time before loan guidelines loosen up.
It’s possible that loans are as easy to get as they’re going to get. Zero-down mortgages won't be coming back anytime soon. If you want to get into the market, the time to get yourself ready is now!

4. Myth: If you don’t have equity, you can’t refi.
If your loan is held by Fannie Mae or Freddie Mac, they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan.
My niece and her husband recently refinanced their "underwater" Florida home.
If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, FHA's Short Refi program is available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value.

5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail in your keys.Until recently, this was essentially true, but there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.

The Hesitant Buyer

2011-03-20T20:35:00.000-07:00

USA Weekend magazine had an article today by Annalisa Burgos, called "6 Myths of Buying a Home." It was aimed at first-time buyers, and contained common sense advice about treating a home purchase as a business transaction.
These suggestions may be easy to give, but having worked with many new buyers for more than three decades, I know that they are common concerns for what may be their largest financial decision.
So much of this process is emotional that it is nearly impossible for home buyers to narrow it down to "strictly business." The easiest advice to accept is her most sensible:
Realize that you should verify the information given in the listing by checking the details yourselves.
Don't stretch to buy as much house as you can get...not in today's market and in light of the current economy. And realize that your home's value may not increase very soon.
Some of her advice was reassuring for those suffering from "Buyers' Remorse."
As long as you were comfortable with the offer you made, don't be concerned that the seller accepted your offer right away. A purchase should be a win-win situation.
I found the two comments about buyers expecting to find the perfect home, and waiting for the house to "speak to them" to be the most familiar. In one of my first posts, I compared the home search to the search for a spouse. In housing or in love, finding the one that fills most of your needs may be as good as it gets.

My Taxes are Done

2011-03-13T20:12:00.000-07:00

Another successful bout with Quicken and Turbotax, and my Federal and State Taxes are completed for another year.
With the government at every level hungry for more tax dollars, our Real Estate lobby is fighting to hold the line on the home mortgage deductions.
Tara at Trulia had some great pointers for homeowners filing their taxes this year.
Ask a roomful of homeowners what's so great about owning versus renting, and you'll hear them holler in unison: "the tax deductions!"
That means that if you're in a 28% tax bracket, Uncle Sam effectively subsidizes about a third of your borrowing costs or more, making your home more affordable or allowing you to buy a larger home than you could have otherwise. Also, big chunks of your closing costs are tax deductible, and hundreds of thousands of dollars of any profit (or capital gains) that you realize when you sell your home are exempt from income taxes.
Remember: You Have to Itemize Your Return to Claim Your Deductions.
During the recent debate on Capitol Hill about whether the mortgage interest deduction should be eliminated, it came out that nearly 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes.
Another Point to Remember: Tax Relief for Loan Modifications, Short Sales and Foreclosures Is Only Around Through 2012.
2011 is projected to be the peak year for foreclosures during this market cycle. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance that is wiped out by one of these outcomes is taxed as what the IRS calls Cancellation of Debt Income, or CODI.
The IRS is currently not charging income taxes on CODI incurred through a loan mod, short sale or foreclosure on most primary residences through 2012. But as I've mentioned before, banks are taking many months, or even years, to work out mortgages in any of these ways. If you foresee any of these outcomes in your future, don't put things off. Do what you can to get to closure on your distressed home and loan, ASAP, while you won't have income taxes to add as the insult on top of your significant housing injury.

A Long Delay in an All-Cash Sale

2011-03-04T22:33:00.001-08:00

Closed another escrow, finally. This one should have been a snap. It was the Sunnyvale house that had five great offers. Because of all the difficult appraisals and recalcitrant lenders recently, the seller chose an offer that was all cash, and higher than the listed price. The only contingency was on the close of an existing sale of the buyers' residence. All inspections had been completed on our listing, and the buyers were willing to do any repairs and termite work on the reports, so it was also an "as-is" sale. As-is and all-cash...It should have been easy.
The first delay came from the buyers' agent a couple of weeks later. Most of the funds needed to close the buyers' house in Los Altos were coming from Japan, and only $50,000 a day was allowed into the U.S. We signed a week's extension. Meanwhile, the Los Altos buyers' loan documents had expired and had to be redrawn by their lender in the Midwest...another delay. The new closing papers were sent to the Los Altos buyers, but a long holiday weekend intervened. Meanwhile, the termite company was threatening to place a mechanic's lien on the Sunnyvale property, if the escrow didn't close soon. I had to remind the manager of our long business relationship, and personally guarantee the funds.
As we reached the end of a month long delay in closing, I also arranged a cash bonus for my seller to repay her for some of the interest she lost on the proceeds.
Another "all's well that ends well" saga. The buyers love their new house, the seller is delighted to finally live near her daughter, and I celebrated by buying new red boots!

The Escrow is Closed

2011-02-23T21:34:00.000-08:00

I waited until this sale was a "fait accompli" before writing about it. If you remember from an earlier post, this private townhouse sale was a win-win for all parties, and it seemed like smooth sailing until the closing date. The buyer was motivated and fully preapproved by her lender. The sellers were packing and had found the perfect rental property in the community of their choice, and the other agent and I made sure that all paperwork was in and completed.
And then the appraisal came in $90,000 under the selling price!
A reappraisal brought it up to $65,000 under, and a third, independent appraiser came up with the same figure. The obvious question is "why did this happen?" especially since all parties felt that the price was right on. The reason is that following the sub prime loan debacle, lenders and appraisers have a whole new set of rules. These include the number of comparable sales needed, the distance from the subject property, and how recently the other sales occurred. Because there were so few townhouse sales over the holiday season, the appraisers had to do some creative comparisons, adjusting the values of dissimilar properties.
What finally happened? The sellers reduced the price somewhat, the buyer came up with more cash, and we recorded today....a happy ending for some very nice people.
...and I received some beautiful roses from my clients!

A Happy Home for Lovers

2011-02-14T14:58:00.000-08:00

I'm writing this on Valentine's Day, and I have to admit that nearly every couple that I work with to find the perfect home has different requirements. That is why I have them make up a "wish list" to bring to our first meeting. Trulia recently did a study of 1200 American couples, married or living together, and asked them to name the top 11 items in a home for enhancing their relationships. Some surprised me, but many did not. Here they are in order:
#1 Was a bedroom big enough for a king sized bed...18% of men and 19% of women chose this one first.
#2 Was storage space. It's not a surprise that more women wanted big closets...21% of women versus 13% of men.
#3 Bright and airy spaces. 16% of men and 14% of women picked this first.
#4 Water view of sunrises or sunsets. Men came out more romantic on this one, 16% of them with only 10% of women choosing this one. (Guess that closets were more of a priority!)
#5 A large kitchen island...both sexes picked this one equally at 12%.
#6 A Jacuzzi tub for two...9% of men, 6% of women.
#7 A Fireplace...not the most popular...6% of men, 5% of women
#8 The ever-popular "Man Cave" Maybe this is seen more in areas where they build with basements...7% of men and only 2% of women picked this one.
#9 Dual Closets...Surprisingly, only 2% of men and 4% of women chose this. Maybe they had already covered it in the storage question.
#10 Dual Sinks in the master bedroom. 2% of men and 3% of women picked this first.
and #11...A Sewing or Crafting Room 2% of men and 1% of women.
The requirements I most often see are: a good neighborhood, quiet location, excellent schools, private yards, enclosed garage, large rooms, open floor plan, remodeled kitchen and baths, and hardwood floors.
Either Bay Area buyers are more practical, or Trulia didn't consider these items "sexy" enough.
Happy Valentine's Day!

Why I Use a Professional Photographer

2011-02-06T20:52:00.000-08:00

Recently, Theresa Boardman wrote an excellent blog about Realtors who attempt to photograph their listings by themselves, and what a foolish idea this can be.
I hire a photographer/videographer to take the still and motion pictures of my listings for the MLS and advertising. Potential buyers can see the best features of these homes, and often purchase them.
I find it hard to believe that a professional real estate agent would be satisfied with pictures taken with a cell phone. Years ago, before the days of digital photography, I bought an excellent camera with a wide angle lens, but the quality of the pictures I took didn't come close to the results that a professional can achieve today.
These virtual tours become marketing pieces that help today's buyers decide which homes they want to see in person. One of my recent sales was photographed on a gray, rather dreary day last month. The photographer met me in the late morning, and I was concerned that the home, which was usually light and bright, would not show at its best, but we had a time limit for placing the house on the MLS before the open houses, and rain was expected to most of that week. The videographer told me not to worry...that his equipment would provide all the light we needed...and he was right! The open house was packed, and the house sold that week.
No one wants to admit that they have taken poor listing photos for their listings, but everyone agrees that there are plenty of examples of bad property photos in every MLS in the country.
Penny wise is indeed pound foolish.

A Positive Spin on Real Estate

2011-01-30T20:37:00.000-08:00

Dr. Steve Sjuggerud wrote an article recently with a much more positive spin on real estate, and which reflects what we're really seeing in the market. He showed graphs compiled by Global Financial of real estate data that literally goes back centuries.
The first proves that interest rates are the lowest they have been since 1900.
The last time mortgage rates were even close to this low in the past was just after World War II, and that was the precursor to the greatest postwar boom in housing prices – by far.
Mortgage rates bottomed in the mid-1950s, and house prices bottomed about the same time. Then the greatest boom in home prices in our lifetimes started.
Today we have record-low mortgage rates. And another thing in our favor is that homes are more affordable than ever. This information is based on the 40-year history of the Housing Affordability Index. "Affordability" takes three factors into account: home prices, your income, and mortgage rates.
Home prices have crashed, mortgage rates are at record lows, but incomes (nationwide) haven't fallen nearly as much… So homes are now more affordable than ever.
These graphs were an eye-opener for me. With all the negative press around, it was nice to read something positive on the subject.

Real Estate "Farming"

2011-01-23T21:39:00.000-08:00

Second sale of the year on Friday night. I have been sending monthly mailers to the Old Orchard area for over thirty years, and the sellers of this Old Orchard townhome told me that they felt as if they already knew me, and that I would represent them when they decided to sell.
So many agents try "farming" a neighborhood, and give up after a few months of seeing no results. A good percentage of my business has always come from mailing a newsletter or card to a couple of my favorite areas in Sunnyvale. In the beginning, they were typed and copied monthly market updates, with a recipe and a contest included. Then as technology changed, they became more professional looking...computer generated, but still personal...following the market up as it went from $100,000 to a million dollars for single family Sunnyvale homes.
My monthly contact is now a large postcard that connects potential sellers with an online link to the current value of their individual homes. My personal opinions on the market are here in this blog.
All parties in the sale the other night(including the buyer's 83 year old mom) ended the evening with hugs and champagne. No wonder I don't retire...I'm having too much fun!

First Sale of the Year

2011-01-17T21:50:00.000-08:00

I promised to follow up with the results of my New Year's listing. The house was listed on January 3rd, and there was almost no competition on the Realtors' tour. I actually ran out of brownies for the first time in my more than 30 years in the business! There was also a non-stop parade of potential buyers at both of the weekend Open Houses, and on the day we scheduled offer presentation, the seller had five good offers to choose from. The four bedroom house, located in westside Sunnyvale with Cupertino Schools, sold well over the listed price. The accepted offer was all cash and in as-is condition.
Even after that date, I am still receiving calls from interested buyers who missed bidding on the property.
I expect to see more inventory as we head into the Spring selling season, but for now, our real estate market is as hot as I predicted...perhaps more so.

2011 Should Be Spectacular

2011-01-01T22:11:00.001-08:00

Unless the local news reports are exaggerating, the future for Silicon Valley may be a lot brighter than it has been in the last couple of years, and real estate may lead this change. A good test will be the listing that I'm putting on the market this Monday. If it sells in a week or two as others in that neighborhood have in the recent past, we'll know that things are looking up. I'm excited! Except for writing the MLS and advertising comments, all the prep work is completed. The keybox, basket of shoe covers, (to protect the new carpets) and flyer holder are ready to take to the house, open houses and tours are scheduled, and the video and photos are on the computer. Not too much left to do...just baking brownies for Realtors' tour.

Christmas Eve

2010-12-24T20:44:00.001-08:00

"Not a creature is stirring," and the sky is clear here in Northern California.
The recent economic news is looking more promising. This morning's Mercury News predicted that Real Estate values would remain at least stable in the coming year.
This is a quiet weekend's pause before a week full of preparing a new listing for sale. The painting, carpeting, and gardening are complete, and the termite inspector crawled under the house and emerged with the good news that there was no infestation.
Next week's schedule is full of the remainder of the work: house and window cleaners on Monday, stager on Tuesday, and then I will meet my videographer on Wednesday or Thursday, depending on the weather report. Right after New Years, this buyer-ready property will be on the MLS. I'm happy that I took my vacation trip early this year!

Too Long Away

2010-12-16T14:47:00.000-08:00

I'm back from my annual trip to visit my sister and her family in Florida. The nighttime temperature was 28 degrees when I left West Palm Beach, so there was no shock when I had to scrape frost off my car windows this morning before leaving for the Realtors' meeting. My son and his wife will notice much more contrast when they return to Michigan from their vacation in Hawaii.
In my sales area (Sunnyvale and Cupertino) we get a weekly list of recent home sales published in the Mercury News. The recent sales price is almost always higher than the last selling price. In the Real Estate section of the Palm Beach Post, the situation is reversed. Invariably, the new sales are dramatically lower in price than the same property's sale price of a few years ago. For example, a five year old condo that sold for $592,600 in 2005, now sold for $220,000. A single family house, built in 1996, sold in 2008 for $665,000 and resold recently for $113,800.
Even more frightening, the property tax on a $430,000 condo there is more than $10,000 a year! I'm glad to be back in Northern California.

Working and the Holidays

2010-11-21T21:43:00.000-08:00

With Thanksgiving rapidly approaching and the December holidays around the corner...or already here, if you believe the newspaper ads...Realtors and their clients are planning for vacations, family visits, and lots of shopping, decorating and cooking.
We are also working on plans to start off an exciting real estate sales year in the Bay area. The purchase of the Cashin Company by Coldwell Banker is an indicator of the optimism we're seeing in our offices. There are signs that 2011 will be a stronger year than any in recent history. Maybe I'm being overly optimistic, but I'm not basing my opinion on positive vibrations alone. I've had more contacts from past clients, referrals, and homeowners in my "farm" area recently than in the past several years. It's about time.

Real Estate Agents are Aging

2010-11-13T20:54:00.000-08:00

A close friend and associate is retiring next year...at age 83!
Many fellow Realtors are in their 60's and 70's, and a recent speaker at the Council of MLS Services reminded us that the average age of real estate agents is over 50, and that in 2010, the number of agents over 40 exceeds those under 40, two to one.
The older agent brings a lot to the table: years of experience in the field, understanding the market, and most importantly, good old fashioned customer service.
However, very few are able to continue doing business in today's market and competing with tech-savvy younger agents without adopting the new technologies.
This is especially true for those of us working here in Silicon Valley, where we are surrounded by social media, the Internet blogosphere, and other technology.
But the non-tech basics still remain...hard work, good service, and continuous prospecting.

Roof Maintenance for the rainy Season

2010-11-06T12:36:00.000-07:00

My home computer is back in service, thanks to Woody Satta my computer Guru, and my site is up and running.
With rain expected tomorrow, I thought some roof maintenance tips would be in order.
All roofs and gutters should be checked annually, preferably in September/October before the rainy season is fully upon us. With trees growing around many houses, the house movement we experience on the adobe soil in this area, and the general wear and hardening of sealants suggest a general inspection of the roof and before the rains.
Tree debris blocking the water flow, either in gutters or downspouts will cause damage by rotting out the wood in back of the gutter. Additionally, with steel gutters the tree debris will create an acid with the water (this will also happen with wood roofs due to the tannin leached from the fire retardant chemicals used) and erode the steel. Aluminum gutters will not erode but have a tendency to sag since they are not as strong as steel. Most 1st story gutters can be checked and cleaned easily. A garden hose can be used from the top, inside the gutter to clear out clogged downspouts. In extreme cases, a metal snake can be used. Seams and corners should be observed/checked during the first rains for leakage. Leaks can be fixed or retarded with caulking, however, long term you may have to call a professional for repair.
Depending on your gardener and roof type, paying your gardener a little more to keep your roof and gutters clean can be of great help to you.

When Your Computer is Hospitalized

2010-10-25T14:43:00.000-07:00

My trusty home desktop is being brought back to life (I hope) by Woody Satta, my Guru. The virus is not as contagious as the flu...and besides, I've had my flu shot this year... but is potentially more deadly. Quicken and Turbo tax are only on my home computer, and much of my work is done at home, also. I go upstairs to my home office, and stare at the unattached wires on the desk as if the missing computer will magically reappear. Email and the Internet are available on my Droid Smart phone, but I am still at the Coldwell Banker office playing "catch-up" every day. Can you send a get well soon card to a desktop computer?

Happy Real Estate News

2010-10-15T21:23:00.000-07:00

We heard an upbeat message at SILVAR’s Annual General Membership Meeting on Monday.
National Association of REALTORS® Chief Economist, Dr. Lawrence Yun, told our local association members, "The worst in sales is clearly over."
He said that in the San Francisco –San Jose area, the bottom has already occurred and prices are beginning to firm up. He stressed what we already knew: All real estate is local, and the Silicon Valley region is fortunate because so many people want to live here and demand for housing is high.
California’s housing market recovery started even before the home buyer tax credit, according to the national economist, and the tax credits boosted sales even more.
“California’s housing market correction was short, sharp and fast,” Yun said.
Yun’s message: Those with strong credit who can buy, should buy, while mortgage interest rates are still at a 50-year low. Things could change very quickly, especially if inflation creeps in.
“I don’t expect rates to remain low. They may increase next year,” he said. “If you’re willing to stay well within a budget and are comfortable with it, at a 4.4 mortgage interest rate, you’re protected under inflation.”
He hopes with the foreclosure moratorium banks will understand negotiating short sales would be a better option than foreclosures.
Yun said the federal tax credits did what they were supposed to do. The market must now be allowed to stand on its own. The key test will be this winter.
“If this winter’s sales match up with other winter home sales, I would say that would be a very positive sign,” Yun said. “Let’s give it time.”

Learning Something New

2010-10-09T09:54:00.000-07:00

There's always some new information out there for me and my readers. With so many houses standing vacant in this market, either deliberately for staging, or because the sellers have moved on...not to mention the large numbers that have been added by the foreclosure market...insurance has become a big question.
I just found out that there is a special homeowners' policy available for vacant or unoccupied properties.
Many standard policies have a "vacancy clause" that is triggered if the home owner is gone for an extended period of time. This makes sense, when you consider that empty houses are more likely to have break-ins and that there's a higher risk that small problems, such as leaky pipes, could go unnoticed.
Although the extra policy may cost more initially, it could save the home owner lots more down the road.

The Jumbo Loans are Extended

2010-10-01T22:04:00.000-07:00

Most economic news is focused on unemployment statistics, or on the Bush era tax cuts and whether they will be extended, modified, or allowed to expire. But those of us who watch the housing market were also concerned with so-called 'Jumbo' loan limits that were also about to expire. With sales already slowing down, our local
real estate market would have been heavily impacted if the maximum size of government backed loans were allowed to revert back to about $625,000 from the current limit of nearly $730,000.
Keeping the current conforming rates through the end of 2011 will allow more than 60,000 borrowers to qualify...most of them in expensive areas such as ours. Buyers who do manage to secure these loans will pay a slight premium in interest, currently about .8 percentage points, but buyers and sellers need all the help that they can get, and we are happy to see this bill pass.

Is This Good or Bad Real Estate News?

2010-09-25T21:39:00.000-07:00

Yes, inventory in Santa Clara County is slowly moving up, and may even hit 5000 before year end, but that isn't the whole picture of our housing market. While sales have slowed, the median price has continued to rise...up 9.3 percent from a year ago. This reflects what we're seeing in our offices. The mixture of homes sold has ticked upward as more high-end homes and fewer bargain foreclosures have changed hands. At least for now, foreclosure sales are down from over half of Bay Area resales to 26.7% currently. Many of these are still being picked up by all-cash investors, who now account for a quarter of these buyers.
Interestingly enough, we are seeing more movement of mid-priced homes as the market has slowed. The properties that are selling fastest in Sunnyvale and Cupertino are those priced between $650,000 and $850,000. Where buyers in the East Bay were rushing to take advantage of the tax credit before it expired, we didn't see as many of that group because of our higher housing prices.
So don't be too shaken by news reports that home sales are slowing. Our values are holding, and even increasing, and for local homeowners, that's good news to hear.

Getting Back to Normal

2010-09-19T20:56:00.000-07:00

My interior house painting is finished, and Hak Kim and his crew from Painter Friend did a fabulous job...everything was taped and covered in plastic, and they were in and out in less than two days...and that included removing wallpaper from a bathroom and retexturing the walls. Now my challenge is to get everything back in place before the carpet cleaners come on Thursday. With the help of my long-time handyman, this chore is nearly finished, and I have stopped asking myself, "Why did I ever start this project in the first place?"
In the middle of all this confusion, I managed a week-long trip to my son who is assigned to our embassy in Ottawa, Canada, a beautiful, clean city. I've also kept up with our seasonally slowing real estate market, and managed to learn my way around my new Droid Incredible phone. Never a dull moment!

Doing Good While Doing Well

2010-09-03T22:42:00.000-07:00

Last week, we cooked and served a full breakfast at our office of Coldwell Banker, followed by an auction. All proceeds (more than $8000) went to support Habitat for Humanity. We also heard the news that our Cupertino office has placed #1 again in the local CB area. It was fun working together for a good cause, and piles of waffles (and dirty dishes) were a change from piles of paperwork.
With the Labor Day weekend here, summer is finally drawing to a close and consumers and agents are returning home from the last of their summer vacations.
The real estate market continues to have its ups and downs, along with the economy, but the Bay Area market is faring better than most regions in the country. Also, our market is considerably stronger today than it was during the depths of the recession. We’ve come a long way over the past two or three years. The National Association of Realtors reported that the number of buyers who signed contracts to purchase homes rose 5.2 percent in July after hitting a record low in June. Sales nationally had fallen sharply in the months following the expiration of the government's home buyer tax credit in April, and economists were expecting that trend to continue for a third straight month.
Buyers are hiring agents, attending open houses and making offers. Homes are still selling. But it’s more important than ever for sellers to price their property appropriately for today’s market and make sure their home is in the best possible condition. If they do, buyers will come – sometimes with multiple offers.

Getting Ready for Painters...

2010-08-28T14:40:00.000-07:00

...is almost as bad as moving.
I've been boxing up the contents of my bookcases, dressers and china cabinets. The house painters will move my furniture away from the walls, but only if I empty the shelves first. Because all the boxes will remain in place, I don't have the concerns about breakage that my clients have when they pack to move, but it's still a big job. I took the cowards way out, and told the painters that they didn't have to paint the closet interiors...another big job averted!
According to "The Move Advocate," creating a simpler and less chaotic lifestyle, even without the prospect of moving, can be rewarding but requires some discipline. There are general rules to help you decide how to edit your possessions...
1. If you haven’t used something in three months, box it up.
2. If you haven’t used something in a year, sell it or give it away!
Unless the items have significant financial or emotional value, it makes sense to sell or give them away.
I sorted through my old photos and paperwork during the last month, tossing duplicates and unimportant documents, and organizing others.
Yesterday, I made trips to the second hand book store and the Sunnyvale library to donate books, and today, I went to the Hope trailer with used electronics and appliances.
Don’t forget that any items donated to charity must be in “good or better” condition. This rule was put in place to keep people from claiming deductions for items that should have been thrown in the garbage
The center of most of my rooms looks like something out of a Barb Schwarz pre-staging video, but at least I won't be wielding a paintbrush or climbing on ladders!

Combining Short Sales and FHA Refi's?

2010-08-21T09:18:00.000-07:00

All the recent news reports I've been reading warn of a new batch of repossessions coming. This is because less than half of the homeowners trying to refinance or arrange better terms under the government's so-called 'Making Home Affordable' program have given up...wrapped in rolls of red tape and frustrated by delays.
Now FHA has announced a Short Refinance Option to help Borrowers with negative equity.

In an effort to help responsible homeowners with negative equity...the 'Underwater Group'...HUD this week announced details on adjustments to the refinance program that it unveiled earlier this year. This new program will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth.
Starting in September, FHA will offer certain non-FHA borrowers who are current and in good standing on their existing mortgages and whose lenders agree to write off at least 10 percent of the unpaid principal balance of the first mortgage, a chance to qualify for a new FHA-insured mortgage. The FHA Short Refinance option is targeted to help borrowers who have underwater mortgages because their local markets saw major declines in home values.

On the surface, this sounds like a good idea, but the long list of requirements on both the lenders and the borrowers may create another paperwork morass that puts us no closer to the government's goal of a stable real estate market by 2012.

70, Today!

2010-08-13T23:48:00.000-07:00

This really is a milestone. In about five minutes, I'll be 70 years old, and this month also completes 38 years in Real Estate sales for me. So much has happened...both in my life and in the real estate market since I came to Sunnyvale in 1967.
Some of the biggest changes have been in the technology we use in marketing homes. We went from checking out new homes on the market by driving to the local board of Realtors office and looking at a hand written list every week, then bi-weekly It was followed by "the book" with a single black and white picture of the house. Before electronic keysafes, we all accessed a keybox with identical keys. If an agent lost his or her key, the whole system had to be rekeyed.
Then came computers, printers with rows of holes on each side of the paper, and fax machines. No more driving to deliver each document that was needed for the sale or escrow...but as the ease of delivery has increased, the number of papers has increased proportionally.
Now a cell phone can pull up a series of color pictures of a house in seconds. We can lock out a lost or stolen key, and signatures are becoming electronic. No matter what changes come in the future, one thing will never change.
We will still need caring and professional Realtors to manage the legal and emotional sides of selling a home.
I can't wait to see what the next few years have in store, for the business...and for me!

When is it a Bedroom?

2010-07-31T19:35:00.000-07:00

In the Realtor community, the definition of a bedroom was always: a room with a closet. My nearly 40 years of selling homes and using this meaning was recently corrected in an article by John Schneider, in his "All About Homes" column. Schneider is a licensed contractor, and he cited the Universal Building Code as saying that a bedroom is one used primarily for sleeping, and complying to several health and safety requirements. These include natural light and ventilation, an installed source of heat, electrical outlets, and a way to escape in case of fire or other emergency. Because of the potential for fire and the possible spread of gas fumes, there can be no door or window leading to the garage from a bedroom. (This is interesting, because there are local homes built by AHG that have this setup.)
There are other, more detailed requirements in the code, but nowhere in the list is the necessity for the bedroom to have a closet. We learn something every day!

Sunnyvale in Top 10 "Rich Cities"

2010-07-23T08:06:00.000-07:00

Money Magazine's annual report on mid-sized cities is out again. In this year's Best Places to Live study, Sunnyvale placed number 7 in the "Rich and Single" category, with an annual median household income of $110,226 and a 30 percent single rate. Newport Beach came out #1 in this group, but there were several other local areas in the top 10: Mountain View, Milpitas and Santa Clara...with San Jose not far behind in the #15 spot. With all the single engineers around, these figures are not too surprising.
I also checked out their list of priciest homes, and Palo Alto came out highest in the country. Sunnyvale and Mountain View were also in the top 25.
Well, at least I'm single. I'll work a little harder at the "rich" part.

Some Thoughts on the Market

2010-07-18T20:11:00.000-07:00

This afternoon I talked to a neighbor about the real estate market and the changing dynamics of our townhouse community. The buyers here are mostly young families attracted by the ideal location, beautiful landscaping, and good schools, and the majority of sellers have been seniors who are no longer able to handle two-story living (or even independent living at all.)
Later in the day, I read an online article that went into the economic side of this equation. Many of us in the Baby Boom Generation had much of our paper wealth erased when the stock market crashed in 2008, and retirement dates were delayed. But now, with the slightly rocky rebound in both the stock and real estate markets, we are starting to regain our confidence. In the next couple of years, we should see more seniors selling, and either relocating, or buying smaller, more manageable places to live.

House Logic

2010-07-17T10:50:00.000-07:00

Jeff Bell, the president of the Silicon Valley Association of Realtors and a friend in my office, wrote an article that appeared in today's Mercury News. It was mostly about the advantages of owning a home, and the current all-time lows in interest rates for buyers, but he also mentioned an exciting website for new and long-time homeowners...HouseLogic.com. I had a chance to explore the site this morning, and it includes everything from an article on how to request a property tax reduction, to a whole section of do-it-yourself tips. Check it out!

The World Cup and Real Estate

2010-07-09T11:18:00.001-07:00

We presented the offers on the townhouse listing on Wednesday night, and we are in contract. My clients are from Holland and they are almost more excited about being in the World Cup finals than in selling their house!
Their son Olaf sat in on the presentation, wearing an orange soccer jersey, and his birthday party yesterday had a soccer theme and a cake frosted in bright orange. If they beat Spain on Sunday, this will be their first championship since 1974.

It Pays to Work on a Holiday

2010-07-06T14:15:00.000-07:00

Despite the loss of the first time buyers' credit, and the threat of "shadow inventory," (a sudden dump of foreclosed homes on the market) we continue to see low inventories and strong sales in the Sunnyvale/Cupertino markets.
I held open houses over the Holiday Weekend at my three bedroom townhouse listing in Sunset Oaks, and they were extremely busy. I had hoped that since there were fewer properties being held open on the 3rd and 4th of July, mine would attract a good turnout, and I was right.
This contemporary model was featured in a virtual tour, and the signs and advertising also brought in potential buyers.
Now we expect at least four offers tomorrow.

The High End Continues to Move Up In the Valley

2010-06-19T21:43:00.000-07:00

Improving consumer sentiment, along with the deadline for the homebuyer tax credit, played a key role in the spike in recent home sales, including in the Previews luxury segment of the housing market. While the push for meeting the deadline of the federal tax credit created a swell of activity for first-time buyers, the sense of urgency spread to higher priced markets. Sales activity in the move-up market was definitely stronger.
According to our own Coldwell Banker Residential Brokerage luxury report, million-dollar home sales in Silicon Valley jumped nearly 70 percent in May from a year ago as the region’s high-end market continued to recover from last year’s lows. 251 homes sold for more than $1 million in Santa Clara County, up from 148 sales in May 2009.
Sellers of luxury properties are also getting a higher percentage of their asking price...99 percent in Silicon Valley, according to local MLS statistics. The next few months should give us a good indication of how strong the housing market recovery will be without the benefit of government stimulus.
The week after Memorial Day was quiet in our Cupertino office. The market is feeling more active again, but definitely not the crazy pace of April and May.

What's New in Sunnyvale

2010-06-06T20:21:00.000-07:00

This has been an exciting week for Sunnyvale. On Wednesday, the new Sprouts Market opened on El Camino, and put 100 local residents to work.
I stopped in briefly on opening day, picked up my green shopping bag, and made a quick sightseeing tour.
Over 4000 locals showed up for the opening, and I knew that was not the time to shop.
Instead, I woke up at 6:00am on Friday, and arrived at the nearly empty store at its 7:00 O'clock opening time. On this visit, there was plenty of opportunity to shop, and the staff was proud to show me the products in the new store. The produce was beautiful, and specials like four large mangoes for a dollar will keep me coming back. Meats were all-natural...no hormone additives... and there was really fresh seafood, plus dozens of bins containing grains, nuts, dried fruits, and all kinds of granola and sweets.
The other addition to the city was the "new" Murphy Avenue, which opened just in time for the Art and Wine Festival this weekend. I dropped by this morning and was impressed by the expanded sidewalk seating and welcoming sign.

Here Comes the Sun

2010-05-31T10:11:00.000-07:00

Finally....our normal California weather. No more turning the heat on in the morning to "get the chill out," and the woolens can make their final trip of the season to the dry cleaners. Yesterday, after a walk-through at the property that is closing on Thursday, I stopped at the car wash. Then I called and scheduled carpet cleaning for tomorrow. It will be a pleasure to show houses without fighting the cold and rain. We are so spoiled in the Bay Area that a longer rainy season makes headlines...but that is a major reason for our high real estate prices, and for the fact that the median sale price in Silicon Valley climbed 7.3 percent over this period a year ago. This trend away from entry level and distressed sales to higher-priced properties is a healthy sign that our market is steadily moving back towards normalcy.

Is the Housing Market UP or DOWN?

2010-05-23T13:51:00.000-07:00

We hear varying information in all the statistics that are published. The best recent info comes from the National Association of Realtors. Sales in the first quarter may have been down from the fourth quarter of 2009, but it's year-to-year that really matter, and Q1 of 2010 is a definite improvement over Q1, 2009.
Interest rates are also ratcheting downward.
What's happening locally?
After the frenzy of buyers rushing to beat the deadline on the Federal Tax Credit, sales are less frenetic, but still very busy. Open houses are excellent and multiple offers abound. The difficult part is always dealing with lenders.
The appraisal on my last sale came in $25,000 under the sales price, but considerably over the listed price. Inventories are rising and sales steady. Single-family homes in the low $1 millions are moving very fast with multiple offers, but the local condo market is slower than normal. My lovely townhouse listing is still on the market.

Location, Location, Location

2010-05-16T20:15:00.000-07:00

Last week, when I had just finished negotiating a successful sale for clients in the million dollar-plus range in a very nice area of Mountain View, I found out that my oldest son and his wife had made an offer on a lakefront property in Michigan. The markets are so dramatically different. We were competing with six other offers, and had to make a non-contingent offer that was more than $100,000 over the listed price to win the bidding war. My son had no competition, and offered $45,000 under the listed price. The final contract was $20,000 under list. Both places need extensive(and expensive) renovation.
The difference? The local house was listed at $1,200,000. It has 3 bedrooms and 2 baths and about 1600 square feet on an average size lot. The lakefront house near Kalamazoo, Michigan (where my son teaches at WMU) has 7 acres, 5 bedrooms, 4 baths, over 4000 square feet, a pool and tennis court.

Sometimes It takes a Long Time

2010-05-09T13:43:00.000-07:00

Sometimes a client calls and everything comes together like clockwork: Inspections, Staging, Photography, Advertising, Tours, Open Houses,Sale, and Closing.
And then there are the "lifetime" listings.
This little house in Mountain View was not a long time on the market...in fact, it sold for full price after a week on the MLS and closed escrow in a month. The challenge was getting it there.
I first met the elderly woman and her adult children more than 18 months ago. Her house and garage were packed full of items that had been collected over a lifetime, plus the "collectibles" from her husband, who loved flea markets. Her daughter and son in law both worked long hours, and the months that followed were spent arranging a move for their mother to a comfortable retirement home, legal paperwork for the trust, and most difficult of all, sorting through a household full of papers, boxes, old furniture, and junk. When the house was finally empty, we were able to arrange inspections, termite work, repairs, landscaping, painting, carpeting, and mini-staging. The house looked great when I brought in the photographer, and a busy open house attracted a buyer whose agent was able to time the close so that his client could benefit from both tax incentives.
We closed a smooth escrow on Thursday, nearly 19 months after our first meeting in September 2008.

The Housing Market Goes Wild

2010-05-03T11:01:00.000-07:00

This has been a record setting week! Santa Clara County posted the most new sales since we began tracking in 2001. Additionally, the county inventory actually dropped, which is highly unusual for this time of year. At this pace the California first time homebuyer and new construction incentives will run out very quickly, so you’d better get busy if you want to benefit from these programs. Last week Cupertino broke the record with 33 pendings. This week it is Sunnyvale with 32.
If you need more information on the credit, you'll find it on the State site.

Home Inspections are Essential

2010-04-25T11:05:00.000-07:00

Long-time clients and I looked at disclosures last night on a property they're interested in. My first priority was the home inspection. The seller's agent had asked for an as-is offer, pretty common in our area, and the information in the property and home inspections was especially important.
A professional home inspection not only can provide a great education about the home’s systems, but also be a crucial tool in negotiating the fairest price on the home, according to HouseMaster, one of the first and largest home inspection franchisors in North America.
They provide the following tips to ensure that buyers make an educated decision when purchasing a home and get the best price possible:
1. Inspect the Inspector. Look for a home inspector with an excellent reputation and credential and verify that the inspector carries professional liability insurance
2. Look at the report. A poorly prepared report without pictures or clear, concise details addressing all the various systems and accessible elements of the home is less likely to be taken seriously.
3. Inspect ancillary systems. Often, the company will offer a multiple services discount as well as the added convenience of only having to attend one inspection appointment.
One company I often use gives a discount for a combination of detailed property, termite and roof reports.
4. Go along on the inspection. If the inspector discourages you from going along and asking questions, find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. In addition to documenting issues and needed repairs that may exist, a professional home inspector will also show the new buyer how to operate the various systems in the home and provide tips on improving energy efficiency and maintaining the home in general. Being present during the inspection will make the final written report that much more meaningful.
If the inspection has been completed "up front" by the sellers, a good inspection company will welcome contact by the buyers to clarify any questions they might have after reading the report.
A little homework by the buyers can eliminate headaches down the road!

Short Sales...Shorter?

2010-04-18T10:28:00.000-07:00

There are new rules on the horizon that require lenders to provide pre-approved terms for short sales. These sales, in which homes sell for less than owners owe, have been driving sellers, buyers and especially Realtors, crazy... as they can drag on for months without resolution.
The new requirements pertain to sellers who have been refused a loan modification.
The minimum amount a bank will take for these houses will be disclosed upfront, so a buyer's bid is more likely to be accepted. That should help to speed up the loan process, at least a little.

Old Blogs, New Blogs

2010-04-12T17:38:00.000-07:00

I spent a little time on a rainy Sunday looking over some of the more than 700 posts in this site. I am amazed by the time dedicated to writing daily articles for the first couple of years, and in re-reading them, how timely most of them still are today. The pointers for preparing a home for sale and maintaining it are still valid, and much of what I wrote about the local market is still the same....surprising, since the first input was in the spring of 2007, and so much has happened in the local, state, and national economy since then. My description of our area (Sunnyvale, Cupertino) real estate market as an oasis, nearly untouched by the short sales and foreclosures around us, is still pretty accurate. There have been some exceptions, but our 10-15% loss in value from the top of the market is being slowly regained in the many multiple offers we're seeing.
The most visible local victim of the downturn is the deserted Sunnyvale Downtown Development. I wrote with such hope of seeing a delightful new town center built, and now it sits, an empty shell, waiting for a recovery that we can only hope will come soon.

The New Tax Credit's Not All It's Cracked Up To Be

2010-04-04T11:34:00.000-07:00

There's so much talk around about the California State Tax Credit, that I thought it was time to clear up any misconceptions.
Some home buyers feel that if they get into contract on a house this month, they will be automatically eligible for both State and Federal Credits....not so... in fact it may signal an automatic audit.
The limit on funds from the State ($100 million, and when that runs out, it's over) is not the only limitation on the California credit. These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
This is not the only complication. Why am I not surprised?
For more detail, go to the Franchise Tax Board site.

Ways to Make a Home Sell Faster

2010-03-31T13:36:00.000-07:00

With Spring finally here, we are starting to see more property coming on the market. I've written before about ways to differentiate and add value to a house before it comes on the market, but these tips from HGTV are still especially timely.
Courtesy of HGTV’s FrontDoor®:
Make a big impact with some minor (and some not so minor) home improvement projects. See the top ten picks below.
# 1: Top Budget-Friendly Project: Clean and Conquer Clutter

Cleaning and decluttering is by far the most cost-effective way to add value to your home. A clean and clutter-free home looks larger and makes a great first impression on homebuyers. So scrub, dust, mop and vacuum each room until it shines, and while you’re at it, seriously scrutinize your possessions and toss or donate anything you haven’t used in a year.
If you’re selling your home, put away your favorite knickknacks and family heirlooms. Buyers want to see a clean, neutral space where they can envision their own belongings.

# 2: Top Energy Efficient Project: Add Insulation

# 3: Top Outdoor Structures Project: Build a Fence

# 4: Top Big Ticket Project: Finish the Basement

# 5: Top Home Exterior Project: Repair Gutters

# 6: Top Outdoor Living Project: Add Outdoor Lighting

# 7: Top Landscaping Project: Tidy Your Lawn

# 8: Top Storage & Organization Project: Maximize Storage Space

# 9: Top Bathroom Project: Refresh Fixtures

# 10: Top Kitchen Project: Upgrade Appliances

For more ideas and details on the top 10 projects that add home value, click here.

A Timely Reminder

2010-03-26T18:39:00.000-07:00

A friend of mine mentioned that he missed the deadline to appeal his property tax assessment last year, so I thought that I'd take this chance to remind my readers about the dates.
The Santa Clara County assessor’s office is one of 10 in the state that mails assessment notification cards to homeowners early every year. This year the cards will be sent out to 465,000 property owners on June 23.
Larry Stone, the county assessor, has said that last year his department reduced the value of 98,000 properties, which took a total of $19.3 billion off the county’s assessment rolls. He believes most will carry over this year, and an additional 30,000 to 40,000 properties will be placed on Proposition 8 temporary assessment relief status, as well.
Homeowners should wait until they receive their notification card before asking for an informal review or appeal. In the meantime, they can gather information regarding the value of their home based on values at the beginning of the year.
Remember, in accordance with Proposition 8, the market value of a property has to drop below the assessed value before a homeowner can seek a property assessment reduction.
Once homeowners receive their assessment notification card, they have until August 15 to seek an informal review. Homeowners can do this online by going to www.sccassessor.org. Homeowners have between July 2 and September 15 to file a formal appeal, and requests for appeals will not be considered after the deadline.

Don't Believe Everything You Hear

2010-03-22T18:07:00.000-07:00

A while back, I ran a standard credit check, and had a real shock. All three credit bureaus had listed me as deceased as of 2005. Obviously someone pushed the wrong button on a computer, and that mistake certainly never kept CitiBank and other creditors from collecting their monthly payments over the years. However new credit for "the late Bobbie Lemberg" would certainly be hard to get. Two credit bureaus were willing to accept a letter, current driver's license and phone bill as proof that I'm still here, but Equifax demanded a notarized letter too...pretty untrusting.
A friend who knew what had happened sent me this article about a San Francisco woman who had the same problem. Her situation was even worse, though. Her insurance, Social Security and pension were cancelled when she "died."
Anyway, despite any rumors running around, I'm very much alive and kicking...and selling real estate!

Spring Fever

2010-03-20T10:26:00.001-07:00

Looking at the history of my blog, I realize that I have gone from publishing daily to bi-weekly, and lately, to about once a week. I don't know if this is a normal progression or a minor burnout.
It's certainly not writer's block, because I have a backlog of subjects I'd like to cover. I've been busy preparing two new listings for market, and trying to get buyers in contract in a multiple offer market, but that's nothing new...so I'll chalk it up to Spring Fever and promise to do better. Since this is the first day of Spring, and my cherry tree is beginning to blossom, that is the perfect excuse.

Sunnyvale in Top Ten Cities Where Prices are Rising

2010-03-12T14:49:00.000-08:00

Yahoo Real Estate featured an article from Forbes Magazine that had some positive things to say about the housing market.
Asking prices on single-family homes have increased as much as 36% from the previous year in some cities, an indicator that Michael Simonsen, CEO of Altos Research, a Mountain View, Calif. market research firm, says reflects "a bounce off the bottom of the bubble bursting."
To find out where prices are increasing the most, Altos Research pulled data for every U.S. city with at least 100 homes on the market (roughly 8,000 cities), and found those with the biggest price jumps from the previous year. Altos tracks asking prices for single-family homes but not condominiums.
Asking price, or list price, can be revealing because it records the price of a home at the earliest point in a sale. If sellers are asking for more money, it means they sense demand.
Lexington, Mass., has seen prices increase more than anywhere else. List prices rose 36% since last year, to a median $1,197,923. But this more likely reflects a change in the type of house for sale than an increase in the price of a typical house.
Three of the top 10 markets for rising prices are here in California, a state at the heart of the real estate boom and bust. But because markets in here were inflated earlier, many were well positioned to make a comeback even before the larger economy recovered.
That's true in the cities of Sunnyvale (here in Silicon Valley), Poway and affluent Arcadia, outside of Los Angeles, where prices increased an average of 28%. Inventory has dropped in these markets, suggesting demand is up, and prices in California rose overall from January 2009 to August 2009. That’s a natural seasonal trend for healthy markets, but it hadn't been reflected in California since the bust.
However, it's futile to draw conclusions about the national market from a few cities, and it's just as difficult to predict what turns a local market will take based on national trends. But data that bores down into local trends and uncovers positive signals, alongside indicators of a broad national recovery, together tell a story that the country's beleaguered housing market may be finding solid footing.

What's Up with Fannie Mae?

2010-03-08T11:30:00.000-08:00

I was listening to Bob Brinker's talk radio show on the way to a weekend appointment, when he rattled investors by mentioning that Rep. Barney Frank had said that debt issued by Fannie Mae and Freddie Mac is different from bonds issued by the Treasury Department. Frank also raised the possible risk that investors in the companies' debt may not be paid back.
To calm worried investors, Frank later issued a statement adding that "this status does not prevent the Treasury from treating the debt of Fannie and Freddie in the manner that it believes best supports the important goal of stabilizing the financial system."
Treasury Department was forced Friday to reiterate its financial support for Fannie Mae and Freddie Mac. "As we said in December, there should be no uncertainty about Treasury's commitment to support Fannie Mae and Freddie Mac as they continue to play a vital role in the housing market," Treasury spokeswoman Meg Reilly said in a statement.
While their debt doesn't carry an explicit government guarantee, the Treasury has taken numerous steps to reassure investors that the government will keep the companies running. Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Freddie and Fannie. So far, the companies have needed $126 billion in taxpayer aid.
Frank's statement unsettled investors because it injected a measure of uncertainty into the market. He has scheduled a hearing for later this month on the two companies' future. The Obama administration, however, wants to wait until 2011 to propose an overhaul.
Fannie Mae admitted last week that it needs another $15.3 billion from the federal government to stabilize its finances. Fannie, which is controlled by the federal government, has been making some financial progress. It reported a fourth-quarter loss of $16.3 billion, including $1.2 billion in dividend payments to the Treasury Department, as compared to a loss of $25.2 billion in the same period in 2008.
(I guess that this is improvement.)
Its problems stem from a continuing stream of bad loans, with over 5 percent of its single-family loans more than 90 days delinquent, up from 2.42 percent in 2009.

The Census and Real Estate

2010-03-05T12:12:00.000-08:00

Starting in March, Census forms will be delivered to every residence in the United States and Puerto Rico. A couple of clients have asked me why they should bother, and why the government is spending so much money on this.
First of all, they have no choice. The Census is required by the Constitution to take place every 10 years. The 2010 Census will help communities receive more than $400 billion in federal funds each year.
What does this mean for us? Well, in addition to helping our community to receive federal funds for things like hospitals, job training centers, schools, senior centers, and emergency services, the Census will arm us with statistics to better know our community and potential home buyers.
The resulting data also gives us a better idea of trends in the market, who’s buying homes, and home ownership statistics. To see recent reports on housing topics from the Census, visit U.S. Census Bureau Housing Topics.
And don't forget, the data collected by the Census also helps determine the number of seats our state has in the U.S. House of Representatives, further ensuring that voices are heard....we hope!

Zillow, Trulia, and True Value

2010-03-03T11:27:00.001-08:00

I often hear from clients who want to know why the estimates of value they get on their houses on Zillow.com is so far off from what they think the prices should be. I explain to them that this site uses any comparables that have the same zip code and square footage, regardless of builder, condition, and school district.
I guess that Money magazine agrees with me. In this month's "Web Guide 2010," they have a section called: Don't Try to Do this Online. Under the heading 'A Waste of Time' they say, "Don't think that Zillow.com tells you what your house is really worth." They say that the "Zestimates" are based on limited comparables, and are inaccurate unless there have been a lot of sales in your neighborhood lately. They suggest using an appraiser to evaluate the property in person.
For buying a home, they recommend Trulia.com...a site that I find "truly" helpful.

Divorce and Real Estate Sales

2010-02-28T13:47:00.000-08:00

I just read an online article about the hassle of trying to reconcile a divorcing couple enough to get a house sold. Nowadays, there are fewer reasons that homes are put on the market. Years ago, a "move up" was caused by a wish for an extra bedroom or a different school district, or even something as minor as the desire for a pool. In 2010, homeowners are more concerned about job security and volatile investment portfolios, and our inventory is low because most people are staying put if they possibly can.
If they are selling a house, it is usually because they are forced to sell. Causes range from knee problems that make two story living difficult, to more serious ones...money problems, death and divorce.
I remember regular speaker phone conversations between the Realtor I tour properties with and her acrimonious divorcing clients. One would OK staging the house, the other would veto the expense. One would agree to a reasonable listing price, the other would insist on an inflated value....and on and on. It's a wonder that the house finally sold.

Staging, Vacant Houses, and Lazy Agents

2010-02-19T10:01:00.000-08:00

Yesterday, a couple of us went on our regular tour of new listings in the area. It was a shock to see the difference among the properties for sale. The sky was overcast, and the cold and cheerless feeling of walking into a locked and unheated house didn't help. The dark, bare rooms accentuated all the negatives in these houses, and the lack of a listing agent there to greet us...and perhaps point out unseen positive features such as copper plumbing...made for a quick departure. With no heat on a chilly day, the interior of these vacant houses can be 10 or 15 degrees colder than outside. Our tour rules in the local board of Realtors do not require the listing agent to be present if the house is vacant, but...
Contrast these houses to properties that were warm, beautifully staged, and well lit. The listing agent was there to greet us and answer questions, and was prepared with colorful flyers describing the home's features. Often refreshments were set up in the kitchen or patio to induce us to linger, and to remember that house when we showed properties...so much positive enforcement for so little effort!

Local Market Trends

2010-02-15T11:17:00.000-08:00

We might see a much earlier spring selling/buying season this year because of the upcoming deadline for the home buyer tax credit. The "hot" season typically takes off in March and runs through May. But buyers who want to claim this year's tax credit, which ranges from $6,500 to $8,000, must purchase their homes by April 30 and close by June 30. So look for more activity than normal in February and March as we head toward the finish line. Some better economic news has also prompted more people out along with the continued low interest rates.
Inventory is still an issue in most markets, leading to busy open houses, and many homes are being sold with multiple offers...helping to firm up sales prices.
Buyers are circling attractive listings and many are willing to make all-cash offers to win out. Cash is still king, because appraisals continue to be an issue, and because lending is taking longer.

Valentine's Day Realtor-Style

2010-02-13T11:27:00.000-08:00

The Cupertino/Sunnyvale District of the Silicon Valley Association of Realtors celebrated Valentine's Day in a festive manner again this year, and it was all for charity.
The District's Valentine Auction for Charity, held yesterday at our weekly tour meeting, featured many beautiful, sweet and some very delectable treats. Agents and affiliates bid, laughed and rooted one another on to contribute to the annual event.
The Cupertino/Sunnyvale District is known for its charitable contributions to area causes, such as Sunnyvale Community Services. Gift donations generously made by some members added to the fun of the event.
Carolyn Miller, chair of the auction, said, “Some newcomers asked if the weekly meetings are always this fun. We said, ‘It's not always an auction, but the meetings are always fun and informational!’”
The District first held the Valentine auction three years ago “as something different to do,” and it has turned into an annual event.

Thirty Eight Years in the Business...and Still it Surprises Me

2010-02-09T11:35:00.000-08:00

I had a new experience this weekend. My clients found a house that appealed to them, and we prepared to write an offer. We were to meet on Sunday, and offers were scheduled to be presented on Monday.
Yes, "offers." Almost every house for sale in our area is seeing multiple offers...even those in the million and up price range, as this one was. On Saturday night, the listing agent called me. The sellers had canceled the weekend open houses, and hinted that they wanted to move out of the retirement community where they had recently settled, and back into their long-time home.
I asked the listing agent what she thought that I should do, and she suggested that we still write the offer...just in case...which we did. But today, the MLS showed the listing as withdrawn. Back to square one.
Realtors from Sonoma to Carmel and San Francisco to Danville are noticing a surprising trend –a critical shortage of homes for sale. At the entry level, and in many mid-price level markets, we have plenty of people willing to buy, just not enough homes to go around. My how things have changed in the past year! To quote one of our managers, the new lament among local Realtors is, "so many buyers, so few listings.”
What’s happening? First-time buyers are rushing to take advantage of the federal tax credit before it expires this spring. Unfortunately, we aren’t seeing a commensurate number of sellers bringing homes to the market to capitalize on this. There are inventory shortages throughout the Bay Area. Open homes are attracting a flood of serious buyers. The result is that attractive, well-priced homes in good neighborhoods are getting lots of interest and, in some cases, multiple offers.
So by and large, it’s pretty much a conversation about inventory when you talk about our Bay Area real estate market. Even the luxury market, while admittedly slower than lower price points, has inventories trending down. Accuracy in pricing and attention to detail in showing condition remains critical in the luxury markets, but sales activity is picking up and inventories are going down.

Look Ma...I Can See

2010-02-08T15:57:00.000-08:00

I haven't written in this blog for a week, but I've been busy taking care of some minor health problems. Thanks to wonderful Doctor Volpicelli and his staff in Mountain View...and two cataract surgeries... I am now able to see to read and drive without glasses again. What a pleasure! It's more than annoying for a Realtor not to be able to see house numbers. "Lola," my GPS finds the street and general location, but then I'm on my own. Last night, I bought my first pair of non-prescription sunglasses in years.
Anyway, I'm now back to my normal schedule of meeting with buyers and sellers and previewing properties, just in time for what is shaping up to be a busy real estate season.

A Positive Move

2010-02-01T15:00:00.000-08:00

An item hit the business news this weekend that reflects a good change in the rules affecting real estate...for a change.
FHA is suspending the "Anti-Flipping" rule that has been on the books for ten years. It had required that investors hold a property for 90 days before it could be resold. This was originally written to eliminate fraud and 'serial' flipping of the same property.
With the large numbers of foreclosures in poor condition now coming on the market, though, this gives buyers with low down payments a chance to buy renovated homes. It usually takes 60 days or less for an investor to buy, rehab, and list a house for sale. Now FHA is making these homes available to buyers with small down payments, not just those who have 10% or more.

Is it Tax Season Already?

2010-01-29T15:09:00.000-08:00

Even though it's not yet February, every day's mail seem to bring more statements needed for my 2009 taxes.
Nothing about taxes is easy, and deciding how to fill out your return is no exception. Should you hire a tax preparer or do it yourself? Go with one of the free online options or stick with the old-fashioned paper forms? If you’re like approximately 80% of tax filers, you’ll turn to tax software or a tax preparer. But that doesn’t mean the end result will be error-free. I have the newest version of Turbotax Deluxe installed on my computer, and combined with Quicken, that seems to work for me, but I have a background in tax preparation...admittedly many years ago.
When the Government Accountability Office sent secret shoppers to 19 storefront tax preparers, each and every one goofed up something. More mistakes were found in returns prepared by so-called tax experts than by individuals, the 2006 GAO report found.
The obvious solution is to simplify the tax code, but the IRS can’t change tax law; that’s up to Congress. So instead the IRS is focusing on the oversight of tax preparers. Currently, anyone can be paid to prepare tax returns without registering with the IRS, but the agency recently announced that in future tax seasons, all paid tax preparers will be required to register. Competency testing and 15 hours of annual education will also become a matter of course, although CPAs, attorneys and enrolled agents will be excluded because they already adhere to similar standards to keep the letters behind their names.
But some worry these new rules don’t go far enough.
It’s a valid concern, especially after recent reports of more than 100,000 suspicious claims relating to the first-time home buyer tax credit.
You are ultimately on the hook for your return, even if your tax preparer goofed it up.
So what can you do? Be careful, especially this year, since new tax breaks designed to stimulate the economy: energy-efficient home improvements, the home buyer credit, education tax changes to name a few, will make filing for tax year 2009 even more confusing.
Get recommendations. Ask your family, friends and business associates. Look for someone with experience preparing returns like yours. For instance, if you run a small business or own rental property, look for a preparer who understands the related tax code.
-Ask questions. How do they keep up with new tax laws? Do they have additional credentials? Will they be preparing your return or will they pass it off? Don’t hire a question-dodger.
Find a year-round preparer. For most of us, tax season ends on April 15. But the IRS is open year-round and might send taxpayers letters asking for additional documentation or announce an audit in the middle of summer.
The IRS suggests taxpayers avoid preparers who claim they can get you the most money back or base fees on the size of your refund. And only work with a taxpayer who will sign your return and provide a copy.

Will Major Support for Housing Be Ending?

2010-01-25T14:38:00.000-08:00

If the government carries through with its plans, major support for the housing industry could end by April, leaving the sector to fend for itself. That could happen because of two critical decisions: the tax credit for home purchases that will end with contracts signed by April 30 (buyers have until June 30 to complete their purchases, and the possibility that the federal reserve will stop buying mortgages by the end of March.
The central bank indicated at its last rate-setting Fed Open Market Committee meeting that it intended to purchase $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt by the end of the first quarter of 2010, and to "gradually slow the pace of these purchases to promote a smooth transition in markets."
Both dates could be extended, depending on market conditions. The FOMC emphasized that it would continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in the financial markets. If the Fed doesn't see private money coming back into the mortgage market, it will either need to change its mind or let mortgage rates rise back to the 6%-plus range they were before the Fed started its intervention.
Mortgage rates are currently below 5%. If they jump back up to 6%, lots of people won't be able to afford a home that may have been within reach at the lower interest rate.
This Could Be Just a Test
Clearly, Congress got the message that the housing industry hadn't yet healed enough to go it alone. With foreclosures continuing to mount, there's no reason to think it will be ready on May 1. Considering the election that's looming this year, it's likely that Congress will decide to extend that tax credit as well.

FHA...Some Good News, Some Bad

2010-01-24T13:12:00.000-08:00

Rising defaults on loans insured by the Federal Housing Administration have led the agency to impose future policy changes to its home loan program.
The FHA is federally mandated to maintain reserve funds at 2 percent or greater. As of November, the agency reported that its fund had declined to .53 percent. The funding is used to cover losses on mortgages insured by the FHA that go into default.
Loans insured by the FHA generally are less expensive to borrowers because of the lower down payment requirements. However, these loans also have fees, such as up-front mortgage insurance. To help the agency raise its cash reserves, the FHA is increasing the up-front mortgage insurance premium from its current 1.75 percent to 2.25 percent. HUD released a Mortgagee Letter today making the premium increase effective in the spring.
The agency also is raising the minimum credit score requirements. Currently, borrowers with FICO scores as low as 500 have been approved for FHA-insured loans. Under the policy changes, new borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent.
The new policy also will reduce the amount of money sellers can provide to home buyers at closing to 3 percent, down from its current 6 percent of the home’s price. The change brings the agency in line with industry standards and removes the incentive to inflate appraisals. The FHA expects these changes to take effect in early summer after it passes the normal regulatory process.
So what was the good news?
HUD/FHA eliminated the need for second appraisals on high balance loans in declining markets effective January 25, 2010.
Loan amounts that exceed $417,000 will no longer need two appraisals.
This benefits our clients reducing costs and increased efficiency in their loan processing. I guess that we should be happy for small favors.

What to Do With that Old Paint

2010-01-20T13:53:00.000-08:00

When we are closing on a house sale, there are almost always paint cans and cleaning products left in the garage. If the house was recently painted to facilitate the sale, I ask the sellers to mark the cans and leave them for the new buyers, who usually appreciate the matching paint for any needed touch ups.
But what about the "mystery paint" that is piled in the corner, and may have been there for many years? This needs to go to hazardous waste centers.
I've often wondered what happens to all the latex paint that is dropped off at these centers. It turns out that it's recycled and is being resold at your local paint distributors, Dunn-Edwards and Kelly-Moore, for instance. Recycled paint sells for less, but the quality and viscosity is augmented by blending it with virgin materials. Check out this site for more information and a complete list of distributors.

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://blogs.car.org) and C.A.R.’s Green Web site (http://green.car.org).

What's Happening with Mortgage Rates?

2010-01-16T13:04:00.000-08:00

Freddie Mac has made home ownership possible for one in six homebuyers and more than five million renters. It was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets, and supports communities across the nation by providing mortgage capital to lenders. According to Frank Nothaft, Freddie Mac vice president and chief economist, "Mortgage rates eased slightly this week after rising consecutively through December. Current interest rates for fixed-rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year."
The 30-year fixed-rate mortgage averaged 5.09 percent with an average 0.7 point for the week, down from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 5.01 percent.
According to Norhaft, "As the economy strengthens further and the Federal Reserve decides to raise its overnight target rate, ARM rates will follow suit because they are typically tied to shorter-term interest rates. However, the federal funds futures market does not anticipate any Fed action until the second half of 2010."
Interest rates can only go up from here. The 30-year fixed rate for a conforming loan ($417,000 or less) hovered around 5% for most of 2009 — the lowest rate in 38 years. Jumbo rates fell to a four-year low (in early November, 5.3% for a conforming jumbo of up to $729,750 and 6% for a traditional jumbo). By mid-2010, conforming rates will rise to 5.5% or above and close the year at 5.75% to 6%, according to mortgage analysts Jumbo rates will be 6.25% or a bit higher by the end of 2010. This forecast assumes that the economy will improve a bit and inflation will reappear.
The wild card in that forecast: whether the Federal Reserve stops buying Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities in March, as planned. The program has probably tamped down rates by about three-fourths of a percentage point. The Fed could carry on if it thinks the mortgage market hasn’t recovered enough.

Local Market Snapshot

2010-01-13T17:10:00.000-08:00

The State median price has seen an improving situation: Following a 59 percent peak-to-trough decline, California’s median price surpassed the $300,000 threshold in November, an increase of 2.4 percent in month-to-month comparisons, and the first year-to-year increase since August 2007.
Sales also are in healthy territory: Home sales in California returned to pre-peak levels in late 2008, and sustained them throughout 2009.
The most exciting part of all this is news from our Santa Clara County statistics, released this week....The average days on market are way down, and sellers of both single family homes and condos are now receiving an average 0f 99.5 percent of their asking prices!

Don't Believe Everything You Read

2010-01-10T18:16:00.000-08:00

For some time, the San Jose Mercury News weekend real estate section has been a compendium of articles gleaned from national wire services. The problem with this is that the local market is not really served, or even reflected well.
When a buyer or seller in Santa Clara County reads a huge front page headline (accompanied by a cute picture of young buyers) that says, "No Harm in Asking...Buyers have more leverage than ever to get sellers to come to their terms,"
they think that they are still in a buyers' market.
They are likely to read the headings and miss the part that says "How much give there is depends on the market. Despite current tough times, there are areas where many homes are selling above the list prices since there's little inventory....There are homes receiving 15 offers, with all above listing price."
This is a perfect description of our section of the Bay Area. Right now, there are a total of 2200 properties on the market in all of Santa Clara County...including houses and condos. A year ago, there were around 6000. Until inventory increases, this will remain a sellers' market.

Spend Now, Worry Later

2010-01-08T15:12:00.000-08:00

In his State of the State address on Wednesday, Governor Schwarzenegger called on the legislature to extend last year’s first time home buyer tax credit and expand it to include the purchase of existing homes as well. This complements the California Association of Realtors' already introduced legislation, SB 206 (Dutton) that would provide an $8,000 tax credit to those who purchased a bank-owned property that will be used as a principal residence.
The problem that I foresee is where the funds will come from for all this largess, especially now that the courts have overturned the unpaid days off for government workers, and the governor is also promising more money for schools. Last year, the State ran out of tax credit money very quickly.

Uncle Sam Makes it More Complicated

2010-01-06T11:43:00.000-08:00

In federal rules that took effect Friday, Jan. 1, mandate a new standard, three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders’ offerings. The rules are an update of the Real Estate Settlement Procedures Act, a 1974 law known as RESPA.
This seems to make a lot of sense, but Sue, our in-house lender says that the new rules are so complex that she is planning to take the training for the third time!
Although Good Faith Estimates have been in use for a long time, there never has been a standard form required of all lenders. Under the new rules, lenders and mortgage brokers are required to give consumers the standard estimate forms within three days of receiving a loan application.
Lenders are prohibited from increasing the origination fee from the estimate. Some additional charges, including title services and recording charges, can increase by as much as a combined 10 percent. Estimates for other charges, such as homeowner’s insurance and other services provided by third parties selected by the borrower, aren’t subject to such limits.
A finance professor emeritus at the University of Pennsylvania’s Wharton School recommends that borrowers focus on two items as they shop: the interest rate and the “adjusted origination charge,” which includes any points paid to lower the rate.
It seems like a good idea, but The Good Faith Estimate form requires lenders to combine all of the bank’s fees into one “origination charge,” which is supposed to enable consumers to compare one lender’s fees with another’s. The problem is that by lumping all the charges together, there is no breakdown in the form.
Sue says that her company, Princeton Capitol, is adding a second page with a full listing of charges. Sounds like a plan.

Maybe 2010 Isn't the Best Year to Die

2010-01-04T11:21:00.000-08:00

For years, financial advisers have been joking that if you have to die, 2010 was the year to choose. This was because of the way the Bush era estate tax rules were structured. If the U.S. Senate doesn't pass a new estate tax bill, this tax disappears on Jan. 1. But it's not all good news, because the tax will reappear in 2011 with higher rates and lower exclusions.
Under the law that takes effect Jan. 1, taxpayers will face capital gains taxes on inherited property. The tax will be calculated on the original cost of the property to the person who has died. This could be extraordinarily complicated. It may not be so easy finding out what your grandfather paid for the property sixty years ago.
It is likely that the Senate will pass a one-year extension of the current law, with a retroactive date to Jan. 1, 2010, buying time to fix the situation. But that will almost certainly result in a rash of lawsuits that could make inheriting property in 2010 really complicated.

Welcome 2010 !

2009-12-31T22:15:00.000-08:00

It's a new decade, and it seems strange to be moving into 2010. When I was young(er) making it to 2000 sounded like forever, and I never imagined that I would look and feel so good when this year came.
I'm so grateful for all the things that life has brought me. Good friends, a loving family who are doing well, and this life with work that I love and can still do.

Wishing you a Healthy and Happy New Year.

Bobbie

Check Out Your Neighborhood

2009-12-30T11:08:00.000-08:00

A friend sent me a link to this site, and I thought that I'd share it with my readers. There are a few communities that do not subscribe, but most are on the list, and I found it much more comprehensive than Megan's List for researching neighborhood safety. It is also useful if you are thinking of moving...Check it out. Crimereports.com.

A Real Estate Christmas Gift

2009-12-23T16:26:00.000-08:00

Santa isn't dead. Not much of a present for struggling homeowners, but better than nothing. Fannie Mae and Freddie Mac are suspending foreclosure evictions from Dec. 19, 2009 through Jan. 3, 2010. The temporary moratorium was created to help families over the holidays.
Fannie Mae is suspending all foreclosure evictions on owner-occupants and tenants living in foreclosed properties the company holds. Freddie Mac also will suspend all evictions involving foreclosed, occupied, single family, and 2-4 unit properties with Freddie Mac-owned mortgages.
In a similar move, Citigroup Inc. also announced it will suspend foreclosure sales and evictions for 30 days through Jan. 17, 2010 for loans it owns. Citigroup’s foreclosure moratorium; however, does not extend to loans it services on behalf of other investors.
Scrooge isn't knocking at their doors...yet.

Want to Feel Younger? Live in the West

2009-12-17T15:43:00.000-08:00

I just have to look around the Sunnyvale Senior Center to see so-called "Senior Citizens" in the weight room, stretching in yoga class, or dancing with my Zumba instructor. Many of my Realtor friends over sixty (and into their 80's!) are selling homes full time.
The highest concentration of older adults in the United States who don't think of themselves as old. Fully 78% of adults ages 65 and older who live in the West say they don't feel old, compared with 67% of older adults who live in the rest of the country, according to a Pew Research Center Social & Demographic Trends survey.
Asked how old they feel, two-thirds of Westerners ages 65 and older say they feel younger than their chronological years, compared with 57% of older Americans in other regions. Among older Westerners, half say they feel 10 or more years younger than their actual age and one-in-five say they feel 20 or more years younger.
Older folks living in the West also feel healthier than older folks elsewhere. Among adults ages 65 and older, some 72% of those living in the West say they are in excellent or good health, compared with 63% of those living in other regions of the country.
This is mainly because older Westerners also get more exercise. Some 77% of Westerners ages 65 and older report they get some kind of physical exercise on a typical day, compared with 69% of those in the rest of the country.
For older Americans, being in excellent health, feeling very confident that they have enough money and assets to last through their retirement years and being highly satisfied with the number of friends they have are the strongest predictors of happiness.
But it is also clear that among older adults, feeling young is strongly correlated with overall happiness, so if you want to be among a lot of older folks who feel young and happy, the West looks like your best bet.

Nesting vs Flipping

2009-12-15T15:45:00.000-08:00

In real estate, nesting is the new flipping. Many homeowners are deciding to stay put and invest in properties they already have. My sister and her husband had talked about moving to a newer home than the one they own in Lake Worth, Florida. Instead, they had the house painted, and added new carpeting and kitchen flooring.
A bigger share of the home construction dollar -- 20% more during the first three quarters of 2009 compared with the same period last year -- now goes to home improvements. If people like their houses, schools and neighborhoods, but just need more space, it might make sense to stay put and remodel.
An added incentive spurring remodeling is the $1,500 federal tax credit for home improvements that raise energy efficiency. Jobs involving replacement windows and doors, heating and air conditioning systems, new roofs and adding insulation all can qualify.
Nester-remodeling might be even stronger if home improvement loans were easier to come by. Perhaps because of that, more people are remodeling their homes in phases.
As I've mentioned in earlier posts, I have trusted referrals for all kinds of home repairs and remodeling if you need them.

Farewell, Sunny Florida

2009-12-11T14:28:00.000-08:00

Tomorrow morning, I'm headed back to the Bay Area, and the weather reports indicate that I'd better have an umbrella handy. We've needed this rain so I don't mind, and besides, it's still pretty pleasant next to sections of the country with windchill factors way below zero.
Real estate news from the Sunshine State is not good. Florida has replaced California, ranking #2 nationally in the rate of foreclosures, with one in every 165 homes in danger of being bank owned. (Nevada still holds the dubious honor of being #1.) It has bucked the national trend which has recorded four months of foreclosure decreases. Statewide, Florida foreclosures have increased 8 percent in the past year. In Palm Beach County, where my sister lives, there has been a 26 percent increase in foreclosure filings compared to this time in 2008.
Loan modifications will help some homeowners, but in over half the cases it's a temporary fix...only delaying the inevitable.

FHA Rules That Will Help the Condo Market....

2009-12-09T12:31:00.000-08:00

...back home in California, but even more so here in Florida.
South Florida's stalled condo market Should get a boost from new FHA guidelines that went into effect this week. Most banks here have shied away from condo lending because they considered the units high risk. Those that were still lending required 20 to 30 percent down, eliminating the average buyer.
The new guidelines extend the 'spot approval' process until February 1, allowing individual units to qualify rather than requiring an entire complex to earn approval.
They temporarily increase the number of units in a complex that can be financed with FHA loans from 30% to 50%.
They require 50 percent of the units to be owner occupied, but temporarily exclude vacant, bank owned or rented units to be be excluded from the calculation.
They will now allow for a condo board approval (right of first refusal) of the buyer, unless it violates the Fair Housing Act...a permanent change.
One new change is that FHA can bar approval of a complex if it has more than 15% of the units delinquent in association fees.

Busman's Holiday

2009-12-07T14:11:00.000-08:00

As usual, I check out local real estate activity when I'm traveling. This weekend, I explored an extremely upscale neighborhood in North Palm beach called Old Point Cove. Built on 60 acres along the water, the spectacular views are of MacArthur State park, Lake Worth Lagoon and the ocean.
Association fees are not cheap, but they cover a lot. Everyone gets 24 hour security, and depending on the building, can cover landscaping, insurance, cable, water sewer and trash. The fees can range from $298 for three months to $5000 at the high end Lake Point Tower.There is no golf, but the boating is top notch...and yes, Tiger Woods docks his boat there.
Currently units are selling from $137,000 for a short sale to about $850,000. Of the 1153 condos in the development, 109 are listed for sale.
At the market's high point in 2005, the median price here was $461,000...with a high of $1,250,000. In 2009, the median was $260,000, with a high of $750,000.

Back in Florida

2009-12-05T07:08:00.000-08:00

If you've been reading this blog for a while, you know that I visit my sister and her family every winter for a week or so. (summers here are impossible for this Northern California gal.) I am always curious about the local real estate market here.
Florida has been one of the earliest and hardest hit markets, because of both the general economic situation, and overbuilding, especially of condos in the beach areas.
I had been reading about 'packaged" purchases of large numbers of these properties by foreign investors, and I wondered if it was impacting local values.
My sister's attractive suburban single family home in Lake Worth (3 bedrooms, two baths, "Florida " room, and large lot with a pool) had reached a high of $400,000 three years ago, and is now worth about $175,000.
I'll be writing about local real estate for the next week...some contrast to the Bay area!

A Positive Take on the Local Real Estate Market

2009-11-27T19:57:00.001-08:00

Rick Turley, our regional president of Coldwell Banker, recently wrote this promising prediction.
"2009 was a challenging year in real estate. The good news is that we started to see a positive turn in the housing market as the year wore on, thanks in part to the first-time home buyer stimulus and indications that the economy was starting to improve. So what will 2010 bring?
With the increases we are seeing in the S&P 500 (up 20.5% YTD) and the economic improvements we are seeing on a global scale, things seem to be moving in the right direction. This makes prospective home buyers feel more confident about their future and the home they may choose to buy. So much of our business is affected by consumer confidence.
But I would caution that we probably aren’t out of the woods as it relates to foreclosures. With unemployment figures still frighteningly high, there are still quite a few homeowners out there who are struggling with their payments. And now there is a great deal of evidence that it isn’t just in the entry level arena; it is also hitting the mid-level and luxury market, too.
The big question remains: When will the “shadow” inventory of already foreclosed homes begin to be released, now that the government has lifted the moratoriums on foreclosures. Once we start to move through those properties, we should begin to see a better, more solid grounding for the real estate market.
The fact is, we live in one of the most desirable regions in the world. Certainly we’ve taken our fair share of hits over the last three years, but our region’s desirability, economic vitality, culture, weather and overall market conditions make it a sought-after place to live. We generally have a much healthier economy in the Bay Area. In terms of a US housing recovery, predicted to be slow, long, and modest; ours will probably be more favorable than most. As we track Bay Area sales activity, we are seeing more encouraging signs.
Based on what we’re seeing, we’re estimating that we can expect sales to moderate to a more sustainable pace. We are already seeing a rise in housing prices in the entry level, and may see a modest rise in our mid-level price points, and most likely we’ll see further adjustments downward in the high end. But this new normal is much more sustainable and will provide a solid foundation to build upon. It makes me excited about the future and gives us all hope for a productive and healthy 2010."

Real Estate News to Be Thankful For

2009-11-25T19:52:00.000-08:00

My very best to you as you prepare for time with family and friends to enjoy the Thanksgiving holiday. In our professional lives we have a lot to be thankful for, having endured some of the most critical and challenging economic times this year that we’ve ever seen. But there is some good news.
The number of first-time home buyers rose to 47 percent of all home sales during the past year, up from 41 percent last year, according to NAR’s 2009 Profile of Home Buyers and Sellers. The increase marked the highest on records dating back to 1981. The previous high was 44 percent in 1991.
These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.
Happy Thanksgiving!