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Thursday, March 4, 2010
Desirable Vallemar Area
Tuesday, February 16, 2010
Realtors Help Seniors
RSVP is Coming
May 3-7
Get The Word Out!
Register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf
WHAT IS RSVP?
RSVP is an annual week-long community outreach program that takes place in May 3-7 during “Adopt-A-Senior” Week. Realtors of San Mateo County provides free assistance to seniors who cannot otherwise perform certain household tasks due to physical or financial constraints.
FREE HOME SERVICES FOR SENIORS & THE HOMEBOUND
Washing windows, changing furnace filters, turning over mattresses, vacuuming, changing light bulbs, replacing smoke detector batteries and other similar household tasks are just a few chores that Realtors will perform.
The program is one way Realtors and Affiliates can give back to their communities.
Live in San Bruno, South San Francisco, San Mateo, Millbrae, Burlingame, Foster City, Daly City and are a senior or home bound and your INTERESTED IN FREE HELP
Please call San Mateo County Association of Realtors at 650-696-8200 or
register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf
Realtors Help Seniors
Thursday, January 14, 2010
An Open Letter to Potential Home Buyers and Fence Sitters
Dear Home Buyer and Fence Sitter,
The window of opportunity is closing. Let me explain my thoughts. Prices in the Bay Area are already inching up, same with interest rates. The time to receive the Federal Tax Credit of $8000 or $6500 is rapidly approaching. (Must be in contract by April 30, 2010) FHA is talking about increasing the minimum required down payment and or increasing the cost of required mortgage insurance.
You can purchase a home today and your costs will be fixed for the next 30 years. What else can you buy and maintain the same cost for the next 30 years? Rents will continually go up. You are at the Landlords mercy. It is time to get off the fence. The first step is to get pre-approved. This will tell you what the bank will loan you. There are many loan programs out there. I could refer you to someone if you would like. The pre-approval process is easy, is no cost and with no obligation. If you don’t do it now you will never know.
You do not need a large down payment. You can purchase a home with only 3.5%. Yes you need mortgage insurance. I don’t like mortgage insurance but if that is the only way to own a home, then go for it. Mortgage insurance will go away once you have 20% equity. Economists think values will increase substantially in the next 3-5 years and that will more than make up for the mortgage insurance. Some people tell me they want to save for a larger down payment. That bothers me because from my experience most people cannot save as much as prices increase.
Some people tell me they do not like the home they qualify for so they want to wait until their income increases to get qualified for a larger home. My response is; your first home is not necessarily your dream home. Most Americans move every 7 years. Get into something now. Hold it for a few years, make some money and then move into your dream home. Read my blog http://www.pruvoices.com/2009/09/is-a-condo-the-right-choice/
Also, mortgage insurance, mortgage interest and property tax are all deductible on your income tax. That will save you approximately 20-30% of the payments. Check with your tax preparer for your individual situation.
I am concerned that some people whom do not take advantage today’s market may never be able to purchase a home again. They may not qualify if rates go up or may not qualify for what they want if prices go up. If interest rates increase just 1% you will need an annual income increase of $8000 to qualify for a $500,000 home. If that $500,000 home increases just 5% and interest rates remain the same you will need an income increase of $3600.
I believe home ownership is the first step to financial freedom. It is forced savings. You build up equity. If you look at most of the wealthy people in this country and around the world real estate is the asset that attributed to their wealth. Home ownership may not be for you but if you don’t look into it you will never know. Today’s market with both record low interest rates and low prices at the same time is quite unusual. They generally work in opposites. This is a blue moon, once in a lifetime opportunity. If you want to take advantage of today’s opportunity please call me for a free consultation to discuss your options, the market, and the process. I would love to help you so please contact me lee@leesellsmore.com or your favorite Realtor now. Don’t put it off any longer.
An Open Letter to Potential Home Buyers and Fence Sitters
Sunday, December 27, 2009
It’s Working and Working Well!!!
You might ask, what is working and working well. I am speaking about the $8000 Home Buying Credit. A recent home buyer brought up the $8000 credit and told me that was the motivating factor for him and his wife purchasing a home. The termination date creates urgency and action. Low prices are motivating but not the cause of action. Many think they can time the market. Good Luck to them. People in the business think the lowest interest rates in 40 years should be creating urgency. It certainly makes people think but low rates is all many of these young first time buyers know. I purchased a home in 1982 at 14% interest and that was considered good. Today’s 5% and below interest rates are like the “After Christmas Sale”. But still does not create the urgency since many believe it will last forever.
The $8000 federal tax credit was extended and now sounds like it will really terminate April 30, 2010. Now that creates urgency! OK; the credit created a home sale and that helps stabilize pricing. Let’s not forget all the mouths a home sale feeds: the realtor, mortgage broker, title people, escrow company, termite inspector, home inspector, city tax coffers, and more. Now let me show you all the mouths my client fed by spending his credit on: landscaping, painting, double pane windows, window coverings, furniture and more. Others may remodel a kitchen or bath, carpet, appliances, roof, etc. My client purchased the home from a flipper who must have put $50,000 into the home. Add that up, and the $8000 quickly turns into over $100,000 of added income to local people. That feeds lots of mouths. Being employed in Real Estate and related fields, as Americans and Smart business people we should be ecstatic. I know I am. I am a believer.
One might think that I support the credit going on forever. No, I am a realist and understand the affect will diminish over time and a firm termination date is what makes the credit successful. I think April is a good time to terminate the credit as the Real estate Market historically picks up in late spring and summer. I am hoping that will help smooth the transition and continue the market stabilization and slight appreciation.
A quick mention of the Current Home Owner Credit of $6500. Although in the Bay Area the $800,000 home purchase limit puts a damper on things it is a great opportunity for Condo Owners to step up and for others to scale down. Many people may not realize that they do not have to sell their current home to receive the $6500 credit. They can keep it and rent it out. The new purchase must be a primary residence and it must be below $800,000.
Enjoy Spending your credit!
It’s Working and Working Well!!!
Thursday, November 12, 2009
My Thoughts for Real Estate in 2009 in San Francisco and the Peninsula
The year began with home prices free falling and no end was in sight. In April we, in the business began seeing the light at the end of the tunnel. Homes in the starting price points began selling and inventory started to stabilize. Banks were pricing their homes on the low range and were receiving multiple offers. I consider single family homes under $700,000 to be the starting price point on the peninsula. Homes over a million dollars were having trouble due to the higher interest rates for loans of that size and the lack of lenders willing to loan. Loans under $729,750 were backed by the government and hovered around all time lows all year. Loans were broken up into different categories. Rates for loans under $417,000 were below 5%; rates for loans between $417,000 and $729,750 were slightly higher. Above that they took a jump. Finally we are now seeing the rates for the larger loans fall into line. Today rates are below 4% fixed for five years for under $417,000. That could be the right loan for many people. Many people took advantage of these record lows to purchase, their first home, investment property and to refinance. During the summer, sales began to increase as compared to the month before and the year before and are still moving along quite well. Prices are showing increases over the previous month but not over the previous year. The appraisal policy changed and that added to a longer time in escrow plus many properties not appraising. Many appraisers were favoring the conservative approach and it has affected many sales. I can’t talk about 2009 without mentioning Short Sales. This occurs when the home is worth less than what is owed on it. The bank has to agree to accept less than they are owed. Not too easy but possible. Often it is 2 different banks. As the economy went bust; The Short Sales and Foreclosure were only in the starting price points. As the year comes to a close it has spread like the swine flu into the higher priced areas as well. Interesting how the table has turned. The Short Sale process seems to be going much smoother and a little quicker, from 6 months down to 3 months. I must give credit where credit is due. Wachovia Bank has come out with a 14 day short sale process. If you have a Wachovia loan and are having trouble making payments give me a call. Also when speaking of 2009 I must call it the “Year of FHA”. Federal Housing Administration guaranteed loans for buyers with low down payments. They guaranteed loans with only a 3.5% down payment allowing many first time home buyer the opportunity to take advantage of the market and achieve the American Dream of Home Ownership. These buyers do have to pay mortgage insurance but it is still a great opportunity. The new tax code allows Mortgage Insurance to be deducted. 2009 has put a strain on many Home Owners Associations. Many individual owners and sellers are not making the monthly HOA payments causing increases for the people making the payments. When a bank forecloses they will make the payments but nothing prior to taking title. I believe legislation should be passed giving HOA dues priority over other liens just like property tax is. I must also give credit to our government. The $8000 tax credit given to anyone whom has not owned a home in 3 years has been a huge boom. As of this writing they just extended it to April 2010 and are allowing the move up buyer, (anyone who has owned their home for 5 of the last 8 years) $6500. If you would like to take advantage of the credit or would like more information please give me a call at 877-Lee-Sells (877-533-7355) Inventory in some starting price point areas is less than a month’s supply, but in the higher price areas it is up to a year’s supply. Three months supply is considered normal. More makes it a buyer’s market and less is a seller’s market. Pricing the home right the first time has become the big key to a home selling in 2009. Overpriced homes even slightly overpriced homes are not getting seen, and by the time it is reduced the property has become stale and winds up selling below the market. Homes must be priced comparable to the bank owned and short sales because that is the market today. Overall many homes have sold in 2009 but at lower prices than the years prior. Please do not hesitate to contact me if you would like to know about a specific area.
My Thoughts for Real Estate in 2009 in San Francisco and the Peninsula
Monday, October 12, 2009
The Shoe is on the Other Foot Now
I am responsible for selling my mother’s home. Great I got an easy listing. Well not that quick. She lives in New Jersey. And they do things differently than we here in northern California and I am not licensed in New Jersey. They use lawyers instead of Escrow and Title companies. I pondered how a deal is ever going to close with two lawyers involved. The people I spoke with assured me they do. It seems radon gas is an issue in this part of New Jersey and the seller is responsible for mediating it. My mother lived in an adult community where Open Houses and For Sale signs are not permitted. No wonder as I drove the community I did not see any other homes for sale. I thought there was no inventory and I would receive multiple offers just like here in the San Bruno and South San Francisco. After doing additional research I come to find they have a year’s worth of inventory in the area adult communities.
I was recently in New Jersey and spoke with three realtors. Prudential is not strong in the area so I went into a GMAC Realty office at the local shopping center and I made an appointment with the floor agent. Immediately she told me she will come with her partner. Good! Two for the price of one. She and her partner came very well prepared. They presented information on themselves and their office. After speaking with them for a while I could tell they were not very experienced. It comes out they were in the business for five years. They were very friendly, easy to speak with, extremely motivated and aggressive but not pushy, understood marketing but not to knowledgeable on the contract, (do they need be since an attorney will review it?), they were the only ones that came with complete information on solds, actives and under attorney review. They had scheduled to show my wife and me three active listings. There was one under attorney review listed in their office that I mentioned interest in seeing. I was impressed that one of them immediately called their office to verify that a lock box was still on. We were discussing painting the home and once again immediately called a painter they work with and got a ball park price over the telephone.
The second agent I spoke with was recommended by a friend. My friend did not have a business relationship only a personal relationship. I called him on a Sunday about 3 PM and returned my call at 9PM and we set an appointment for 9AM the next morning to meet my schedule. I already liked his response time. I will justify him being the least prepared with the fact he had the shortest time to prepare. He did have information on the market but no marketing information. He did discuss marketing briefly. His mother in-law lives in the same complex and he lives in the complex next door, so I felt comfortable that he was familiar with the area. He offered to paint a stained area himself to save money. I appreciate saving money.
We had a very good rapport I thought. We discussed our mutual friends, the Real Estate industry and Back home.
The third and final agent I found on the internet as a “Top Producer” for a local old time one office company. She definitely knew the complex. She said I should hire her because she is the best and her office is the dominating listing office. She showed me all sorts of stats. Not much at all with buyers. She told me the various websites she will list the property on. She spent most of forty five minutes we spoke, discussing pricing. She suggested that I offer 4% to the listing agent because there was over a year of inventory available. It is a thought that was shared by another realtor as well but I’m not a big believer in that. She was not warm and friendly but she was not cold either. She was opinionated.
Real estate is very localized so before interviewing the agents I prepared a list of questions to learn about the area: market procedures, lock boxes, inspections, time frames, the attorney situation, inventory, Open Houses, marketing, availability, full time or part- time, experience, DOM, list to sale price, their mix of buyers to sellers, office activity and more. Could I hire all of them? Sales people are easy to sell. we trust everyone. We don’t want to say no to anyone. Each had pluses and minus. They were all pleasant. Now I understand what our clients go thru. Let me tell you by the third agent in two days I was burnt out. Do I go with experience, relationship, motivation? I thought I would hold off my decision until I see how their follow up is. I ask for your help; whom do you think I should hire?
The Shoe is on the Other Foot Now
Sunday, September 13, 2009
Is a Condo the Right Choice?
I recently showed a condominium in Redwood Shores to a young couple that was considering single family homes under $490,000. They grew up in a middle-upper class neighborhood and wanted to own in the same type. Most homes under $490,000 in San Bruno, San Mateo, Redwood City, South San Francisco were run down and needed some work. My clients made several offers on short sales and were overbid on at least 5 REO offers. I was concerned with the necessary work since they did not have much money in reserve. I did not want them to start something and not be able to finish it like many of the homes we were looking at.
They were not looking forward to doing yard work so I convinced them to look at condominiums. They were hesitant because of HOA fees but I explained the costs of ownership over a period of time were basically the same as of single family homes or.
http://www.pruvoices.com/2008/10/hoa-dues-junk-fees-or-good-budgeting/
I showed them a 3 Bedroom 1300 sq. ft. condo and the young bride’s face just lit up when we walked in. It was modern, spacious, laundry inside, views and more. They were sold but they had to convince their parents who were putting up a good share of the down payment. The parents were difficult to convince. They were concerned with appreciation. I ran some numbers for the State of California from 1990 thru 2008 single family homes appreciated 79% and condos appreciated 116%. In San Bruno from 2000 –2008 single families increased 20% and condos 28%. Still did not convince the folks. San Mateo it was 7% for single family homes and 5% for condos.
When purchasing a home. appreciation should be taken into consideration but that should not be the only consideration. Life Style should also be given major thought.
I believe Condominiums offer a life style that fits many needs: No exterior maintenance, security with a security force or proximity to neighbors, often many have recreational facilities, and large complexes offer social activities, more updates than similar priced single family homes. Buildings that were built as condominiums and not converted offer excellent sound proofing and insulation. They also have laundry in the units. I suggest if buying a condo today to review the HOA financials closely. Many are having severe problems and assessments could be inevitable.
Oh, the young couple are hoping to close on a short sale soon.
Is a Condo the Right Choice?