This past year, the most common question I was asked was, “How is the market?”

It was a year that I will never forget. At Prudential California Realty, San Bruno, we have over 100 agents. Some with many years of experience and some new to the business, this was our environment last year:

-We had the lowest drop in interest rates, yet it was difficult to obtain a loan.

-Buyers who chose to participate in a short sale waited months for the banks to approve the sale; meanwhile the banks delay in response created a larger debt.

-We had “short sale negotiators” with astronomical fees, so our agents learned to become “short sale negotiators” and they did not charge their clients.

- In some cases, homeowners stop paying their home mortgages so the bank would consider them as a “short sale” candidate.         

-Tenants were angry at their landlords who collected the rent, did not pay their mortgage and would go into foreclosure causing the tenants eviction.

-We saw many real estate offices close or consolidate with larger firms.

-At open houses and on multiple listings ads “this is a normal sale” was a featured benefit.

-We witnessed a lot of disruption in families (our clients) and became  counselors.

-Our community watched a neighborhood destroyed due to negligence from a utility powerhouse.

Despite the distractions and ever changing environment, we were able to assist our clients in making their moves as smooth as possible. I am proud of the hard work of our agents!

It will be interesting to see what 2011 will bring.

Terry Birt
www.TerryBirt.com
650-871-3676

Recently, they decided to go ahead with just the kitchen and bathroom remodel. Apparently, a neighbor called the city which resulted with a stop work notice even though the previous plans were approved, the application expires a year from the approval date. 

 I attended the meeting with the code enforcement officer, who met the homeowner, and I was pleased on how he interacted with them.  It is a very intimating to have a stop notice on your door, and a city official in your home scrutinizing all the work that is in process.  Even though they were in violation, the officer went thru the house, and told them what they needed to do to get back on track.    The good thing is that most of the work (wiring, plumbing) was exposed, and they do not need to rip out any cabinets and walls.

 They still need to come in with new drawings, etc, and there will be added costs, yet in the long run, with approved permits, they have the peace of mind that everything is up to code and documented correctly. The inspector had mentioned that there are many homes that are in escrow and have been delayed or fallen apart due to nonconforming issues.

 Before you start a project, make sure you check with your local building department.  If you are getting ready to sell your home, you may want to make sure that you house is in order and that permits are on file.  If you are purchasing a property, you may want to check with your agent if there are nonconforming issues.  They should be able to help you check for the necessary permits. 

Terry Birt
Prudential California Realty
www.TerryBirt.com

Last evening I attended a Millbrae NOW Community workshop.  The meeting was open to the public and hosted by our city staff.   The purpose of the workshop was to inform the community of its economic status, and what methods can be used to raise revenue for Millbrae’s’ vital services.

 After hearing all the presentations, the conclusion was that the city does not have enough revenue to maintain its current services and is not building a surplus in our infrastructure which could be a huge liability if there was an emergency. 

They were able to illustrate what cuts have been made by providing data on the sources of revenues and how it is distributed. It was  demonstrated how the city was able to cut costs by sharing services, staff, and program budgets, such as fire and police with other cities, without impacting public safety. 

  There were three Balancing Budget Scenarios provided:

1.  No New Revenues

2.  Renew Fire Assessment

3.  Combine increases in revenue by; Renewing the Assessment, Increase Hotel Tax and     

     Increase Business Licenses Tax 

The last scenario would maintain the services (currently at its minimum), allow minimal infrastructure repairs, (currently Millbrae’s street condition is 2^nd from the bottom in the county) and provide emergency reserves.

 There is a third workshop on Saturday, February 7^th at 9:00am at the Chetuci Room.   These items will be discussed at the Millbrae Council meetings and on June 23^rd the council will decide on placing these matters on the November ballot. 

 What can you do?  These items will be further discussed on Saturday, and your comments and suggestions are encouraged.  All three workshops will be televised on MCTV channel 27 on Sunday, February 8^th starting at 1:00 pm. 

You can also view the workshops online at http://www.mctv.tv under video demand.

There is a link on city website which posts all the data and scenarios in detail.  http://www.ci.millbrae.ca.us/index.aspx?page=294

You can also view the questions raised, and you can email your comments and suggestions to the city on how they can raise revenues.  After all, this is your city, and you owe it to yourself to keep informed and support your town.

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 I started to get excited because there would be a great sale, to unload the merchandise. So the plan was to stake it out until the prices bottom out to take advantage of the sales.  About three weeks prior to closing, I accomplished my mission and felt great about all the great  savings I made.

 Two days after Christmas, I went by to the store to check it out.  Then it really hit me.  The second floor was filled with empty shelves; the first floor had all of its remaining merchandise centralized in one area.  The sale clearance banners hanging from the ceilings stood out among the bare aisles.  I lost an old friend.

 The wonderful staff, who helped me to the car with my bags, the sales rep who helped me find that last missing washcloth to match a set and the wonderful community functions they participated in.  What a great loss.  

 A good agent, who is knowledgeable, skilled and has a good team behind them, is a  blessing for everyone.  As a seller, it will put more money in your pocket, and as a buyer, you will have someone who knows how to negotiate in this market.

There are so many things that a qualified real estate agent does that can prevent a sale falling apart.  Today, with the financing issues, and the foreclosure environment, many problems can be avoided and it starts with you.  Focus on what you are trying to accomplish and what the most important factors are, and write them down.  If the agent is a professional, they should be able to address those issues and provide solutions.

 It is okay to ask them if they are a full-time real estate agent, or if their real estate business is something they do “on the side”  Ask them about their knowledge of the market place, and what strategies they have to advance your positioning in the market place.   

 It may not be a good idea to work with a “discount brokerage” lesser fees have rarely demonstrated more money in your pocket.  (especially today)

 Ask if your agent is a “lender/realtor”?  In my experience, a majority of these agents have limited or no knowledge of the real estate market or the practice of real estate. 

 If you think you are in a “short sale” situation, what experience and knowledge does the agent have in properly preparing a package to the lenders and negotiating on your behalf?

 In this market a skilled agent, who understands the complexity of the market is crucial.  You owe it to yourself to do a little research.