Lee Sells and Speaks More...

Lee Ginsburg is an award-winning Realtor with 30 years experience in Peninsula residential real estate. With the utmost attention to detail, Lee delivers expert marketing, negotiating, and management of all financial matters. With a strong commitment to honesty, fairness and hard work, Lee has successfully helped first time home buyers, move up buyers and investors.

Lee’s goal is to exceed your expectations. For the latest community information, please subscribe and see how Lee can help you.

Friday, February 18, 2011

Is the Bay Area Home Buyer Obsessed with School Scores

Many homebuyers in San Mateo, San Bruno, Burlingame, Millbrae and up and down the peninsula purchase their homes based on school scores. I am not sure if API, Academic Performance Index, (http://www.cde.ca.gov/ta/ac/ap/ ) scores is an accurate evaluation method to determine a young person’s education. I find the API scores of a school to determine the college you child goes to as reliable as a City’s Median home prices is in determining the value of your home. Homes in a city are varied and encompass a large diversified area just like a school’s diversified student enrollment and have high and low performing students.

kids in school

Many of our public schools have a large population of intelligent non- English speaking immigrants. Teachers are trained and cater to that specific group and they also teach to the more advanced student by offering enrichment classes, honor classes, etc. Both of my son’s went to a public High School in San Mateo that possibly has the lowest scores amongst the San Mateo High Schools. They both graduated and went to very good schools. In their graduating class several students were accepted into Harvard, Stanford, MIT and more of the top schools. Some of their friends went to a private high school, were not happy, did not perform well and transferred out. A peninsula high school with a rating of 10 has had an epidemic of suicides. Top scores is not the final answer.

I think some parents feel if their child goes to a high achieving school their child will be a high achiever. I believe an educated, happy and successful child comes more from the family and home not from a school’s API scores. A parent must spend quality time with their child as a person and also as a teacher. They must work as a team with the teacher. They must read to them and listen to the child read. They must review homework and make sure it is completed. President Obama said in his state of the union address (http://www.whitehouse.gov/state-of-the-union-2011), "We need to teach our kids that it's not just the winner of the Super Bowl who deserves to be celebrated, but the winner of the science fair."

I believe some home buying parents depend too much on school scores. I think they should also look at the parent participation, the teacher/student ratio, the teacher relationship with the students and parents, the extracurricular classes, sports, clubs, spirit, music, language classes, art programs, fund raising, and more. They should visit the school and sit in on the class. We must keep in mind some people will perform better when they are the high performer amongst their peers rather than an average performer in a high performing peer group. Often a high self esteem will lead to a more successful, happy and satisfied adult. And isn’t that our goal.

graduation

Many buyers whom prefer a high performing school are on the right track. They are probably the same parents that will begin the leaning process in their home. They will read, do math, get involved in class projects and in the school. They will bring up their children with the idea education is of vital importance. In my home it was understood that after High School it was college. In today’s home after college it is advanced degrees. As caring parents we must understand our children. Not every child needs to go to college to be a successful adult. Many of the schools are beginning to offer vocational classes again. I applaud that. There are culinary, mechanic, nursing and other very good programs.

As Margaret Lavin writes in the San Jose Mercury news, http://www.mercurynews.com/san-mateo-county/ci_16994346?nclick_check=1 "we need to talk to our children. Often that is difficult as we are working long hours and try to have a life also but tete-a-tete with your school aged children is important."

I will close with a quote from Margaret; “Standardized test scores influence teachers reputations, school funding, and of course Real Estate Prices. Being a brainiac is great, but being personable and well rounded also leads to future happiness and success.”

I would love to hear your thoughts.

www.leesellsmore.com


Share/Save/Bookmark

Wednesday, February 9, 2011

2010 Remodeling Cost as Compared to Resale Value

Remodeling Magazine annually researches the cost of remodeling with the help of Home Tech Information Systems. They also research the value remodeling adds with the help of the National Association of Realtors. They put this information together by regions. For a complete report please go to http://www.remodeling.hw.net/2010/costvsvalue/national.aspx

Below are the results for the San Francisco region.
A small difference in the size or scope of a project, or in the quality of finishes and accessories you choose, can dramatically affect the cost.

The “value” of a project at resale is always subject to forces that are difficult to predict. Changing how a space is used may meet the immediate needs of the current homeowner, but may be at odds with what prospective buyers are looking for. How the value of a remodeling project is perceived also depends on a variety of factors that traditionally affect home values, including the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values in the surrounding area are fluctuating. Comparable values are particularly difficult to judge in the current economic climate, in which the effect on the value of surrounding homes of foreclosed properties and short sales are part of the equation. The mere presence of a large number of unsold homes, whether new or existing, well-maintained or distressed, can have a constricting effect on surrounding home values.

The Cost vs. Value Report provides an accurate snapshot of the general housing market, but it cannot be applied accurately to an individual remodeling project for your particular home. Resale value is only one factor among many that a homeowner must take into account when making the decision to remodel. I think the best course of action is to obtain construction cost estimates from reputable local remodelers and then give me a call at 877-Lee-Sells to discuss the value it will add to your home.

Project Job Cost Resale value % recouped

Attic Bedroom $70.938 $74,206 1 04.6%

Bath Addition $54,927 $44,476 81.0% ­

Bath Remodel $22,014 $22,440 101.9% ­

Deck Addition $18,636 $18,987 101.9%
­(comp)

Deck Addition $15,091 $17,025 112.8% ­
(Wood)

Entry Door $ 4,197 $3,438 81.9%
­(fiberglass)

Entry Door $ 1,546 $2029 112.8%
(Steel)

Family Room $113,274 $109,553 96.7% ­

Garage Addition $79,104 $64,208 81.2%

Garage Dr. Repl.$1,579 $1,992 126.1%

Home Office $34,574 $21,641 62.6%

Major Kitchen Remodel $71.015 $67,583 95.2% ­

Minor Kitchen Remodel $25,039 $27,816 111.1% ­

Master Suite Addition $143,853 $123,003 85.5% ­

Roof Replacement $28,699 $21,821 76.%

Siding Replacement $14,931 $11,111 74,4


Share/Save/Bookmark

Sunday, December 19, 2010

Holiday Shopping for a Home? The next 10 days are Black Fridays In Real Estate!

Are you serious about buying a home? Do you want to take advantage of record low interest rates and the lowest home prices in 5 years? If you answered YES to either question: Then do it now!!!

2010 interest rate graph

Why do I say that you might ask? You have much less competition. The people not so serious are fighting the crowds in the malls, (I hope at my son's store Designers Center at "The Shops at Tanforan") not at open houses. Sellers that have their homes on the market now are serious (desperate). Who wants people coming through their home during the holidays? Banks are even more motivated to get rid of these homes before the end of the year. The sooner they get them off their books the better. Now that the foreclosure moratorium is basically over they will have plenty more to sell. They want to get rid of these now. Make an offer. They will listen. They might even gift wrap it for you at no extra charge.

gift wrapped home

I suggest you hire a personal shopper to do your Christmas Shopping and contact your favorite Realtor to help you buy a home now! I congratulate you in advance. Merry Christmas and Happy House Hunting!

www.leesellsmore.com


Share/Save/Bookmark

Sunday, November 14, 2010

Is the Giants Victory Similar to Buying a Home?

How can the baseball World Series be anywhere related to Home Buying you may ask. Let me explain…

The San Francisco Giants won as a team, and that is the only way to successfully buy a home. You need a team. A great mortgage broker; Tim Lincecum. An excellent Realtor, who is not just a real estate agent (follow this link: http://ow.ly/39GSe); Cody Ross. A hardworking assistant; Edgar Renteria, an experienced inspector; Aubrey Huff, a dependable escrow officer; Busty Posey, and of course a reliable management team; Bruce Bochy.

wilson

Now you see the importance of a team. Without one player you may not get the home. A good Realtor has a good team.

Another correlation to the Giants TEAM Victory is the Team of Low Interest Rates, Low Prices, and Motivated Sellers. That leads to the Victory of Closing on a Home; Brian Wilson.

www.leesellsmore.com


Share/Save/Bookmark

Wednesday, October 27, 2010

Free Home Buyer Seminar

Home Buying Seminar

Wednesday Nov. 10 - 6:00 P.M.
Location: 180 El Camino Real, San Bruno
Hosted by Lee Ginsburg and Wells Fargo Bank

One Person’s Loss, Is Your Window Of Opportunity!!!

·Learn How To Take Advantage of Today’s Real Estate Market. Yea!
· REO’s, Bank Owned Property, Foreclosures, Short Sales
· Qualifying For a Loan in Today’s Market. It’s not that bad.
· Low Down Payment Programs. Try 3.5% Down!
· Understand the Home Buying Process.
· Closing Costs, Inspections, Contingencies, Title Insurance.
· First Time Home Buyer Credits.
·Real Estate Auctions

Complimentary: Parking·Dinner· Home Buying Guide

There is NO CHARGE for this seminar. Pre-registration would be helpful. Guests and Walk-ins are welcomed. 877-Lee-Sells 533-7355 Or email lee@leesellsmore.com


Share/Save/Bookmark

Thursday, October 21, 2010

Foreclosure Baloney

I don't get this foreclosure moratorium stuff.

foreclosed_homes_ohio

I don't understand why the press and politicians are putting so much into it. I can assure you the banks are not foreclosing on anyone current on their homes. Many of these home they are foreclosing on are vacant and some inhabitable. inhabital home

A sad fact I heard recently is many homeowners are losing their homes due to medical bills. That should not be.

Making the banks review additional papers, re-file, and delay the inevitable is only getting revenge and that is not healthy. No good come out of that.

We should be putting pressure on the banks to modify the loans of homeowners who are good, honest, hard working people. Many of these people for whatever reason can't make payments at the current payment but can and want to make modified payments. I don't understand the need for a bank to go to the expense and foreclose on a home with a $500,000 loan and a month later sell the home to someone else for $300,000. The original owners would have been capable and extremely happy to make payments probably on $350,000. The banks would have been $50,000 + expenses better, with less property on the market values would be up protecting their equity in all their portfolio.

I have another idea to deal with this foreclosure cancer. Equity Share. Let the banks lower the principal and they share in the increase in equity with the bank getting the first 25% of any increase. This allows the bank to regain their loss and possibly make a profit. More important it keeps more people in their homes, and creates a lower inventory of homes for sale stabilizing and increasing home prices. With stable and increasing home prices it will eradicate the foreclosure cancer and increase the value of the homes already in the banks hands.

It sounds so simple. Why don't the politicians fight for that rather than trying to get revenge on the bank.

http://www.asianjournal.com/dateline-usa/15-dateline-usa/7268-california-officials-demand-foreclosure-moratorium.html

http://thehill.com/homenews/campaign/124533-foreclosure-moratorium-takes-center-stage-in-senate-battleground-states

www.leesellsmore.com


Share/Save/Bookmark

Wednesday, October 6, 2010

Investing: Bay Area Real Estate Vs. The S&P

I personally have been investing in Bay Area real estate since I moved out here from Brooklyn in 1977. I have 75% of my assets invested in Bay Area Real Estate. Most of my remaining assets are invested in the stock market. I was curious which investment has had the best return on my investment over the last 20 years. Bay Area Real Estate has proven to produce an 8% greater return than the S&P over the last 20 years. Quite honestly I was expecting that number to be greater, but I am grateful, that with all of the ups and downs, I have made the right decision.

Let me quickly explain my numbers. I took a $100,000 investment in the S & P in 1990 and compared that to a $500,000 home purchase using the same $100,000, or the standard 20% down payment also in 1990. I am not a statistician so my numbers are rounded off and are deemed reliable, but certainly not guaranteed. These numbers are based on not selling and leaving it invested in an S&P index fund. Let me say if you paid cash for that same $500,000 home you would be substantially better off with investing in the S&P.

Please review the facts and would love your comments.

Year

S&P %
CAGR *

$100,000 investment
will be worth

Bay Area %
Median Price Change *

$500,000 purchase with
20% down payment

1990

-3.42

$96,580

-0.005

$497,500

1991

30.94

$126,462

0.024

$509,440

1992

7.6

$136,073

-0.012

$503,326

1993

10.17

$149,911

-0.004

$501,313

1994

1.19

$151,695

0.022

$512,342

1995

38.02

$209,370

-0.004

$510,292

1996

23.06

$257,650

0.05

$535,807

1997

33.67

$344,400

0.072

$574,385

1998

28.73

$443,347

0.121

$643,886

1999

21.11

$536,937

0.131

$728,235

2000

-9.11

$488,022

0.253

$912,479

2001

-11.98

$429,557

0.046

$954,453

2002

22.27

$525,219

0.086

$1,036,536

2003

18.72

$623,540

0.077

$1,116,349

2004

10.82

$691,007

0.151

$1,284,918

2005

4.79

$724,106

0.115

$1,477,655

2006

15.74

$838,081

0.051

$1,553,016

2007

5.46

$883,840

0.071

$1,663,280

2008

-37.22

$554,874

-0.227

$1,452,043

2009

27.11

$705,301

-0.207

$1,151,470

TOTAL GAIN

$605,301

TOTAL GAIN

$651,470

Tax consequences and principal pay down really need to be considered to compare real gains.

CAGR is the Compounded Annual Growth Return -http://www.moneychimp.com/features/market_cagr.htm

Bay Area Median Price from CAR Annual Historical Data Summary http://www.car.org/tools/smart/archive/2010ahds/

I consider Real Estate a safer and more conservative investment. The temptation to buy and sell as the market fluctuates while invested in the stock market is much greater than in Real Estate. I believe Real Estate has many other benefits; certainly the tax benefits are great. As an investor you can have a non-cash write off of depreciation, and as a homeowner you can deduct all interest and property taxes, plus you are allowed a tax free gain of $250,000. Picking a stock is much harder than picking a home. Most homes in a regional area appreciate in similar proportions. I quickly looked at San Bruno and San Mateo for the last 10 years and they both appreciated 19%. Not sure if you can say the same for the S&P. You could lose everything if you invest in the wrong stock. Having the discipline not to sell a stock is very difficult. With Real Estate you can never lose everything. Even if it burns down and you have no insurance, the land has value. Real Estate investments are a bit more difficult to liquidate so it is forced savings. Most important Real Estate offers you a home to live in. The cost of borrowing for homeowners comes with the tax benefits above and in 30 years it will be paid in full. The cost of borrowing for Real Estate investors is paid by the tenants and so is the principal payoff.

Many financial advisers believe in diversification; small cap, large cap, international, etc. I do not suggest that for Real Estate Investing. Managing single family homes is different than multi unit buildings and different again from commercial property. Managing properties in different areas even if they are the same type of property does not work either. Different areas have different rent control policies, different laws, and different expenses. I am a believer one should only invest in real estate you can drive to in an hour or two. I heard about a great investment on the east coast. If everything went as planned it would have been a great investment but being 3000 miles away I was not able to control the plan. I am happy to be out of that investment.

I would love to hear your feedback.

www.leesellsmore.com


Share/Save/Bookmark