Working and the Holidays

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

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

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

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

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

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

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.