The Power of Permits
An acquaintance of mine came home from work to see a “stop work notice” posted on her front door. Two years ago, she submitted plans to build a second story addition and remodel her existing kitchen and bathrooms. She went thru the planning commission process and the application was approved. Due to the economy situation, it was decided not to go ahead with the addition.
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. Read more
Whadda Ya Mean They Said “NO”?!?!
There is a subject that’s been coming up a lot lately…the subject of Low Ball offers. It would seem many are advocates of offering a price on a house that is well below asking & what the current market will support. The thinking goes, you are showing the seller you will not be taken advantage of and you have the upper hand in negotiations. What never seems to be addressed is the notion that the seller might not be interested in playing this game and will simply say “NO”. No counter offer and negotiations officially over.
If a seller wants to sell and a buyer wants to buy then there is no reason a deal can’t be worked out. This is predicated on the idea that both parties are going into this with a willingness to negotiate in good faith. Writing under asking is not a bad idea, writing a reasonable offer below the asking says to the seller “I like your house and want to buy it, we just have a difference in opinion of value.” A low ball offers sends a different message. Read more
REOs, Short Sales, or Regular Sales?
I met a lady today at the Tanforan Mall. She says, “My husband wants to buy a house but only if it’s REO.” I asked why, she says because he believes he gets a great deal and that he can also bargain and offer less if it’s foreclosed. He believes that short sales and regular sales are not good real estate investments. She said that her husband doesn’t want to look at anything but foreclosed properties.
Is this how the public thinks? But, how about short sales? And what about those regular sales? As one of my colleagues says, “Regular sales, are really the short sales these days!” Isn’t that the fact? What, in your opinion, is a regular sale in today’s real estate market?
Shokoofeh Nowbakht
www.shokoo.com
What Does Zillow Tell You About Your Home?
Ever since the launch of its website in 2006, Zillowhas increasingly gained its popularity as a convenient tool to look up home values. When I work with prospective buyers or sellers to explain the market value of their homes, I often hear the famous line “but Zillow says…!” followed by “so how accurate is the Zestimate?”
Thanks to Zillow for providing a detailed video of “A Guide to the Zestimate” to explain how the home values are generated. I hope you will find this video helpful!
Posted by Annie W. Chang | www.TalkofRealEstate.com
The Farther They Fall, The Higher They Could Rise
Richard Carson and Samuel Dastrup, two university professors, recently published an interesting academic paper (a synopsis is posted at Econbrowser.com). Carson and Dastrup examined how the magnitude of housing-price declines correlated with various factors, such as overbuilding, extent of sub-prime lending, and median income. Not surprisingly, these factors were related to price declines. However, the most important factor was the magnitude of the previous price run-up, which accounted for more than half of the observed variance in the size of the price decline. Read more
Short Sale, A Great Option!
I have talked to many home owners who are late on their mortgage payments, who are struggling to pay even their everyday expenses. Some have not paid their mortgage in over 6 months. Unfortunately, this is happening more often these days. My advice is, of course, try to modify your loan and save your home. Homeowners have to qualify for the modified loan plan. What if they can’t? What if they can’t even make the mortgage payments on the new lower interest rate? So, why not try to short sale the house? Lenders are becoming more understanding of the short sale situations. They are easier to deal with and get an approval on a short sale. Homeowners will have less effect on their credit score if they do a short sale rather than go through bankruptcy or foreclosure. A realtor will be able to assist homeowners with the short sale process.
Good Luck!
Shokoofeh Nowbakht, Realtor
Prudential California Realty
www.shokoo.com
San Mateo County Real Estate Wrap up 2009
Below is a chart that compares the San Mateo County Real Estate Market in 2009 to the San Mateo County Real Estate Market in 2008. As you will see the results are comofrting and shed some positive light on what is to come in 2010. Although interest rates are scheduled to rise as early as this Spring and foreclosures loom in the back ground, as long as inventory stays slow and steady the market should remain on a positive steady but upward incline. Now is a great time to take advantage of the low interest rates and tax credits that are currently provided. Please click on the thumbnail below for a full picture.
Nicole Machado- Prudential California Real Estate
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. Read more
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