To Some Low Interest Rates are Better than the iphone 4

July 21, 2010 · Lee Ginsburg · 2 Comments

Low interest rates also have apps. 30 yr., 40 yr., 15 yr., conforming, adjustable, 1 yr, 5 yr jumbo and more. Oh they are getting the best reception in years.

You may not see the lines out the door but look at the stack of files on the loan agents’ desks. We are in record low territory. Rates have never been this low in the 50 years of record keeping. How low? Below 5% fixed for the next 30 years. 3.75 fixed for the next 15 years. That’s how low. If you are buying you must understand these are not normal times. Take advantage. Jump in. What other industry will fix their price for the next 30 years. Ask the gas station on the corner, if you would commit to buying your gas there for the next 30 years, will they hold today’s price.

Homeowners, no matter when you re-financed last review the situation again with your loan agent. If you do not have one I can recommend some I work with.

A note to both homeowners and home buyers: Read more

Remodeling? Don’t do it to resell!

May 8, 2010 · Lee Ginsburg · 2 Comments

Midrange Remodeling Costs Vs. Payback from Remodeling Magazine
http://www.remodeling.hw.net/2009/costvsvalue/division/pacific/city/san-francisco–ca.aspx

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change vs.. 2008-09
$13,114	$10,674	81.4%	Siding Replacement (vinyl)	$10,607	$8,476	79.9%
$12,760	$11,328	88.8%	Window Replacement (vinyl)	$10,728	$8,217	76.6%
$13,804	$12,175	88.2%	Window Replacement (wood)	$11,700	$9,044	77.3%
$47,052	$32,057	68.1%	Bathroom Addition	$39,046	$23,233	59.5%
$18,864	$14,517	77.0%	Bathroom Remodel	$16,142	$11,454	71.0%
$16,956	$13,922	82.1%	Deck Addition (composite)	$15,373	$10,904	70.9%
$12,838	$11,744	91.5%	Deck Addition (wood)	$10,634	$8,573	80.6%
$3,835	$2,930	76.4%	Entry Door Replacement (fiberglass)	$3,490	$2,275	65.2%
$1,353	$1,732	128.0%	Entry Door Replacement (steel)	$1,172	$1,470	128.9%
$100,023	$73,551	73.5%	Family Room Addition	$82,756	$54,051	65.3%
$83,463	$45,245	54.2%	Sunroom Addition	$73,167	$37,118	50.7%
$184,839	$143,073	77.4%	Two-Story Addition	$156,309	$107,286	68.6%
$63,803	$53,923	84.5%	Major Kitchen Remodel	$57,215	$41,260	72.1%
$124,579	$90,616	72.7%	Master Suite Addition	$103,696	$67,578	65.2%
$23,210	$21,991	94.8%	Minor Kitchen Remodel	$21,411	$16,773	78.3%
$24,712	$18,829	76.2%	Roofing Replacement	$19,731	$13,133	66.6%

An Open Letter to Potential Home Buyers and Fence Sitters

January 19, 2010 · Lee Ginsburg · 2 Comments

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

My Thoughts for Real Estate in 2009 in San Francisco and the Peninsula

November 16, 2009 · Lee Ginsburg · 3 Comments

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 loans under $417,000. That could be the right loan for many people. Read more

The Shoe is on the Other Foot Now

October 12, 2009 · Lee Ginsburg · 14 Comments

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. Read more

Buyer’s Market?

July 22, 2009 · Lee Ginsburg · 4 Comments

Buyer’s Market? You bet it is. I will be speaking about the low end of each market area. On the Peninsula and San Francisco we talk about Single Family homes priced under $700,000. In the East Bay it is below $400,000. Buyer’s Market yes but not in the traditional way. Today’s buyer cannot expect to purchase a home for 20% off the list price, but they can expect to purchase a home 30-60% off of 2004 prices. Today’s buyer cannot expect the seller to take care of all necessary repairs, but the buyer can expect to receive an $8000 Federal Tax Credit and an extra $10,000 State Tax Credit if they are purchasing a brand new home. Today’s first time buyer cannot expect to be the only offer, but they can expect to receive the lowest interest rates in 40 years. I think it is just in a different way.

The Real Estate Market in San Bruno, South San Francisco, Daly City, San Mateo is hot just like the weather. Prices are based on supply and demand. Demand is strong as all smart people want to take advantage of the buyers market. By the way the $8000 Federal Tax Credit terminates Nov. 30 of this year. Read more

What shall it be; Loan Modification? Short Sale? Foreclosure?

June 16, 2009 · Lee Ginsburg · 4 Comments

You are among the millions underwater and over stressed. What shall you do.

Your credit will be most negatively affected with a Foreclosure, then a short sale. As long as you stay current on your loan, loan modification should not affect your credit. Your credit score weather it is right or wrong is used by potential employers before hiring, landlords before renting, insurance companies before granting insurance and etc. Depending on your individual situation maybe credit is not important.

My client’s father nearing retirement age could live in his son’s rental unit and will not be looking for another job said he might pass away before his home in Las Vegas is worth as much as as his loan. He opted for foreclosure. Read more

Memorial Day 2009

June 6, 2009 · Lee Ginsburg · 5 Comments

Agents from Prudential California Realty in San Bruno showered the South San Francisco and San Bruno areas with American Flags on the Memorial Day Weekend. Memorial Day, originally called Decoration Day, is a day of remembrance for those who have died in our nation’s service. Memorial Day was officially proclaimed in May 1868 by General John Logan, national commander of the Grand Army of the Republic. The Prudential agents say besides remembering those that gave their lives for us putting out the flags beautifies the neighborhood. After walking up one side and down the other side of the street putting flags in the front yards of all the homes we turn around and see the flags waving in the wind. “What a great sight”, they all exclaim. The wonderful fulfilling feeling surely outweighs the sore backs from bending down and the sore legs from walking up and down the hills. Over 5000 flags were distributed over this past Memorial Day Weekend. This is the second consecutive year the San Bruno office of Prudential has done this for their neighbors. Next year they are aiming for 10,000 homes.

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