Vacant Homes a Target for Homeless and Criminals
I was scheduled to do an open house at one of my listings in a terrific San Francisco neighborhood today. When I arrived at the property and unlocked the door, the first thing that I saw were 2 men’s socks and a bunch of dirt, along with something that looked like a dirt clot, but later turned out to be a rock.
Since this house has always been immaculate, I knew that something was radically wrong, so instead of entering the house, I first called the owners. When I was unable to reach them, I decided to call the police. Although it turned out that the intruder had already left, I’m so glad that I did call them, because it turns out that they were able to get really good evidence of who had entered.
This home had previously been “staged” and furnished, but the owners had requested that the staging be removed due to cost concerns, so it is now completely vacant. Although we kept the front drapes closed so that people would not notice that it was vacant, someone clearly noticed, broke a downstairs window and spent at least one night in the property, apparently ripping down one of the drapes and using it as a blanket. Read more
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
Buyer (Still) Beware
We warn once again that it will not be a buyer’s market into perpetuity, though others have a different opinion. Some forecasters – Goldman Sachs being the most prominent – project the Federal Reserve will hold the fed funds rate low for “many years” in order to help U.S. consumers and companies pull out of their funk. If that were the case, then it would appear that mortgages rates ranging between 4.5% and 5.5% could be the norm deep into 2011.
Meanwhile, Reuters reports that homebuyers are still negotiating good discounts based on data released in July’s Zillow Real Estate Market Report. Zillow notes that buyers paid 3.3%, or nearly $7,039, less than the last listing price on homes for sale during July. What’s more, 22.8% of all homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.
It sounds like the trend will remain the buyer’s friend through 2011 – until you dig a little deeper. Zillow also noted that the 3.3% discount is down from June’s 3.5% discount and substantially down from January’s 4.6% discount. It is also worth noting, yet again, that the usual hard-hit burgs in Nevada , Florida and California skew the data.
“Even if prices stabilize and rise, we can still finance at cheaper rates,” so the counter argument goes. Yes, that is the case today, but we think Goldman and others are underestimating how quickly an economy can turn and how quickly inflation can conflate. It is a buyers’ market today, so buyers should take advantage of it today. As for tomorrow? We are much less sure.
How much under the list price can I offer?
This is a question I am asked quite often. Many people get their real estate news from what they hear on the radio, watch on tv, or read in newspapers. What many do not do is actually speak to the people who are in the business and have up to date information on the current market. Although I encourage my clients to ask any questions that comes to mind, it is my job and responsibility to explain to them what I have experienced in the market and where I think it will go from here. Of course, I can not predict the future, but if the facts are studied, trends can be found. I feel it is very important that I educate my clients on the current market, so that we can work together to accomplish the common goal. Read more
Bay Area Real Estate’s – Perfect Storm
Perfect Storm = Low Interest Rates, Low Prices, and Lower Inventory.
We have all the ingredients.
If you have been waiting for prices to stabilize you are on the cusp of being late.
Homes in Daly City, San Bruno, San Mateo, San Francisco and South San Francisco are selling. To keep up with the demand Bank of America is falling behind on appraisals and is hiring outside appraisers. I spoke to a termite inspector yesterday. He had 5 inspections scheduled for the day. Need I say we did not speak long. There is a buzz in my office. Conference rooms are filled with buyer’s consultations. Banks dealing with short sales are moving faster and be more aggressively. If you are a first time home buyer or a seasoned investor; jump in, the buying is great. It is a PERFECT STORM for you. Low Prices, Low Interest Rates and Lower Inventory. Getting a Loan in not impossible
http://www.pruvoices.com/2008/12/gettin-a-loan-is-not-impossible/
If you are busy with the holidays maybe meet with me (877-Lee Sells) or your favorite realtor just to get updated on the market so you are ready to take advantage of the Best Buyer’s Market in 30 Years come January.
www.leesellsmore.com
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/30/RE8014CT0J.DTL
Has Daly City Seen the Bottom?
No other city in San Mateo County has seen a greater depreciation in home value in the last year than Daly City. Back in September 2007, the average sales price of Daly City was $730,000, as compared to $565,000 in September 2008. This is a depreciation of almost 23%. The most common question is whether or not this is the bottom of the market. In this blog, I will share with you my expert opinion, as to why the bottom has come to Daly City, and this might be your last chance to get a great value. Read more
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