The FHA loan limit for lower conforming interest rates was reduced to $625,500 on October 1, this year, which actually moved quite a few prospective Buyers out of the home buying process. Realtors in California lobbied pretty hard to raise the limits back up to where they were previous to October 1, which was $729,750.

What this means is that not only will Buyers in this range get a lower interest rate, but they will only have to put 3.5% down to buy a home in this range. For example, prior to the passage of this measure, if a Buyer only had 3.5% in cash to put down, they could only buy a home up to $648,000. In Marin County and for most of the Bay Area, this really won’t buy a “dream home” and Buyers were limited to whatever was available in the lower price range. With this new measure, a home buyer who puts 3.5% down can afford up to $749,000, which makes a big difference in buying power.

The passage of this extension of FHA insured mortgages will stay in effect until December 2013. It also provides for a short term extension of the National Flood Insurance Program (NFIP) through December 16, 2011. Both the California Association of Realtors (C.A.R.) and National Association of Realtors (N.A.R.) are also pushing Congress to work on a five-year NFIP plan to provide a bill that would promote certainty and avoid further disruption to real estate markets.

There was disappointment that Congress did not extend this new conforming loan limit to either Freddie Mac or Fannie Mae insured loans. There is a strong feeling that they could follow suit later this Spring, so there is still hope. The C.A.R. and N.A.R. have long advocated making permanent higher loan limits.

So let’s see, if you are considering buying a home, why is now the right time?

1. Home prices have been rolled back to 2001 levels
2. There are historically low interest rates right now
3. You can move into a home priced up to $749,000 with only 3.5% down
4. Home prices have stabilized over the year, and fewer people have had to “bail out” of their homes

Hmmm, I would say it’s an excellent time to make that jump into finding a home versus giving your money away to a land lord, and it’s a great time to sell a home because you will have more Buyers out there looking after these enhanced measures. Let’s face it, homes will not get back up to the high priced levels of 2007 for a very, very long time, and may never get back to those extraordinary high prices. The best a Seller can hope for is a gradual increase of 2-3% over the next several years.

If you need more information about buying or selling a home, give me a call at 415-755-8919 or email me at rsmith@fhallen. com.

Happy Holidays!

Posted by:  Rick Smith

The outlook from consumers improved for the month of November signaling that the concern about another recession is starting to disappear.

The Bloomberg consumer comfort index climbed to a minus 32 (which is the best reading since July) from minus 45 the previous month. The measure of current conditions climbed for the second week in a row for the period ending November 13, after sinking to an almost three-year low.

Household spending, which accounts for 70% of the economy, has picked up in the second half of the year even as stocks and confidence sank. The recovery may mean Americans are going shopping to relieve pessimism brought on by the jobless rate. The jobless rate actually was reported to drop below the 9 percent that it has been hovering around for the last year.

It sounds as though there has been pent up demand for products and that consumers are finally opening up their wallets again, although it’s too early to conclude that consumer sentiment has bottomed out.

An important indicator this week will be Black Friday and Thanksgiving sales. If consumers head out to shop this weekend despite the lack of an agreement by Congress on the debt crisis, it could mean that people are “over” the government stalemates that continue to haunt us, and are going to spend anyway. Holiday shoppers are likely to be looking for bargains again, and retailers will be competing for market share during this time frame.

Applications for unemployment decreased by 5,000 for the week as well, and is at the lowest level since April; in addition, the number of people on unemployment benefits fell to a three-year low.

Builders broke ground on more homes in October and construction permits climbed to the highest level since March 2010.

Finally, it was reported that confidence among men exceeded that of women, and Democrats are less pessimistic than Republicans for the third straight week.

Click here if you would like the full story.

Questions on how it all relates to real estate? Please don’t hesitate to call me: 415-755-8919 or email: rsmith@ fhallen.com.

Have a Wonderful and Happy Thanksgiving!!!

Posted by:  Rick Smith

Probably the most important requirement from a lender is the upfront cash for a down payment on a home. To a lender, this is the rough indicator of the borrower’s financial discipline of saving up to buy a new home, in the sense that a borrower that provides a large down payment will be less likely to default on the loan.

But many buyers forget that there is also cash required for closing costs, which generally range around an additional 2% of the cost of the loan. Many of the lenders may allow the settlement costs to be rolled into the loan if you are refinancing, as all it does is make the loan amount higher, and they benefit on the interest charged over the course of the loan.

There are two ways a first time buyer can do this. One way is to agree for the home seller to pay for the home buyer’s closing costs, in return for selling the home at a higher price to recover costs of closing the loan. For example, let’s say a buyer agrees to buy a home from a seller for $600,000 and he can meet the minimum down payment of 20% or $120,000, but can’t come up with the additional $9,600 for the closing costs to settle the loan. The parties can agree to raise the price of the house to $609,600, with seller paying the closing costs.

The buyer now has to borrow $487,680 instead of $480,000, which raises the mortgage payment on a 30-year loan around $30 a month. The buyer can afford to make the higher monthly payment, but does not have the additional $9,600 to close the loan. This procedure doesn’t always work however, because now the appraiser has to agree that the house is worth more. This was pretty easy when values in the last decade were skyrocketing, as it was assumed the home would be worth more in a short amount of time. Lenders also limit the amount that sellers can contribute to closing costs at around 3% of the sales price as a way of capping over appraisals.

The second way a buyer can take care of his cash shortage is to obtain a cash contribution from the lender in exchange for a higher loan percentage. The key issue though is whether it’s really worth paying a higher interest rate. If the buyer originally could get a loan at 4%, and now they will need to pay 4.87% to secure the additional cash for closing, this increases the monthly payment to $3,123 per month from what would have been $2,835 or $289 a month. The buyer can afford it, but realize that the result of paying a higher interest will cost the buyer an additional $104,000 over the course of 30 years. The only real advantage of this is that the seller will not have to raise the sales price, and it stands a greater chance of the home appraising correctly.

There is a major silver lining of doing this for the buyer if he is in a higher tax bracket, in that in the short term, the buyer can deduct the higher interest charges off his income taxes.

The buyer can then turn around and refinance at a lower rate once he builds up a small amount of equity to possibly reduce the house payments going forward.

If you would like to know more about how this works, please don’t hesitate to call me at 415-755-8919 or email me rsmith@fhallen .com.

Posted by:  Rick Smith

The news has come that everyone has been waiting to hear, whether you are a homeowner, investor, or in fact just about anyone. The data released recently from the commerce department revealed that the economy grew 2.5% last quarter, signaling the movement towards a growing and more stable economy.

Consumer spending, particularly cars, helped boost the economy. Consumption increased 2.4%, compared to a .7% increase in the second quarter.

Much of that increase came from consumers and businesses catching up after an extremely sluggish economy the early part of the year, caused by the shortages in inventory by the Tsunami and Japanese earthquake. Japan is now back to catching up with the supply of automobiles, parts, and electronics that Americans depend on. Third quarter growth was a step in the right direction, but economists are still cautious as to whether the trend will sustain itself.

There are continued woes in the housing market, as reports are still coming in that Banks are still holding back shadow inventory in order not to glut the market with additional foreclosures and REOs and to keep prices stable. Reports about Marin housing are that there will be some additional shadow inventory that will pop up through 2013, but Marin homeowners will be spared a glut of homes being released like what has and is still happening in places like Florida, Nevada, and Arizona. This should help restore confidence to Marin homeowners by keeping their home prices stable; we may actually see some single digit growth in 2012 and beyond.

The threat of a double dip recession is behind us for the moment, although the economy is muddling along. Fears of a double dip recession grew in Spring as the economy only grew at a rate of .4%. A recession is considered two economic quarters of negative growth.

Also released were reports that the unemployment rate declined slightly as well, to 9% from 9.5%, where it has been hovering for quite some time.

Last month the government had revised its second quarter growth up to 1.3%, so it’s terrific that the economy grew at a faster rate than originally forecasted.

It helps answer the question of whether it’s a good time to buy a home in Marin.

Let’s see: Home prices are back to 2001 levels, interest rates remain at historical lows, and the economy is growing.

Hmmm….... I would say it’s an awesome time to buy a home in Marin!

If you would like more information, I would be happy to talk to you, just give me a call at 415-755-8919 or email me at .

Posted by:  Rick Smith

For Sellers, it would be great to receive an all cash offer, with no contingencies. With times as they are however, and with higher than average prices in Marin, all cash offers are not common unless a Seller has a really low-end distressed property with a low sale price. In many cases, Buyers may need to sell their home first in order to buy a new home, so it begs the question: Should Sellers accept a Contingent-Sale offer from prospective Buyers?

Until a transaction is closed, there is always risk involved. Buyers have been known to make the mistake of making another big purchase, like of a new car, just before closing on a home, which could put their loan-to-value capability at risk, and the loan could fall through. Even an all cash offer coming from overseas has a chance of never showing up.

An offer made contingent on the sale of another property is also risky as the Buyers may never sell their home; if the Sellers have taken their home off the market, the result is a waste of valuable time in possibly selling to someone else. For this reason, not many Sellers will risk it.

That said, Sellers shouldn’t ignore an offer contingent on the sale of the Buyers’ house without first exploring the possibilities, as some sales are not as risky as others. (Plus, Sellers might have the opportunity to get a higher price for their home, especially in this economy, as the Buyers will really need to give something close to the asking price, which isn’t always the case these days.) The first thing Sellers need to do is check to see if there is a valid listing agreement on the Buyers’ current property, then Sellers should call the Buyers’ listing agent to see if they can really get a sale in 30 days.

Other factors to consider are the condition and location of the Buyers’ property. Is it in pristine condition and in a great neighborhood that others find desirable? If it’s likely to sell quickly, Sellers may want to go with the contingent offer, especially if their home has been on the market for a while and they are heading into the dead of the Holiday season and winter, when property sales really slow down dramatically.

In addition, Sellers should ask their agent to talk to the Buyers’ listing agent to see if there are any foreseen problems with the Buyers’ property when releasing the contingencies to close the sale. The contract with the contingent Buyers should include a clause that requires them to notify the Sellers in writing if their deal is cancelled for any reason, and should also include an option for the Sellers to cancel the contract if they get another offer. If the Buyers have a back up offer, the Sellers may want to continue the sale.

Sellers may also want to put a provision for approving the list price of the Buyers’ house. Furthermore, Sellers may want to accept a contingent sale offer that includes a protection clause permitting the Sellers to continue to market their home for a back up offer. A release clause or kick-out clause should also be in the contract. The release clause allows the Sellers to notify the Buyers that they have a certain time period, such as 72 hours, to perform and remove their contingent-sale stipulation or withdraw.

If you would like to know more about how to proceed with or consider a contingent-sale offer, let me know, and I’ll be happy to answer any of your questions. Contact me: 415-755-8919;

Posted by:  Rick Smith

Marin has so many unique neighborhoods, yet many times I meet new Marin buyers who have not been clued in about some of Marin’s very special enclaves. Kentfield Gardens is one such neighborhood. This area is home to approximately 150 homes, primarily built in the 50s and 60s. The neighborhood is flat and is within walking distance to parks, bike paths and award-winning Bacich Elementary. Many homes back up to open space, offering lovely views and privacy.

A new listing at 7 Berens Drive is one that exemplifies Kentfield Gardens living. This home is situated on a level lot and has a wall of French doors that truly offers indoor/outdoor living. This 3 bedroom, 2 bath home has also been tastefully updated with newer hardwood floors, remodeled bathrooms, stainless appliances and concrete countertops in the kitchen, allowing one to move right in and enjoy the Marin Lifestyle.

Posted by:  Adrienne Murphy

So, you have been looking for a new home, and you finally found the perfect one. You put in an offer and low and behold, the seller accepted it. Congratulations! Then that sinking feeling comes in….. Buyer’s remorse.

It’s not unusual for home buyers to experience the feeling that maybe they made the wrong decision in buying a particular home, but it’s important to recognize it and understand how to deal with it. Here are a few last minute regrets that you may encounter and ways to rethink and counteract them.

I left money on the table, I should have paid less for the home

This is a classic regret that just about every home buyer encounters. The day after the offer is signed, sometimes even just right after signing, buyers beat themselves up for not going in lower and holding out against the seller’s counter offers. Conquer the remorse by understanding that your decision made perfect sense when you made it, and it did result in making the deal.

Unless you realize that the home really doesn’t fit your needs or you get some additional information regarding the home’s value, such as a low appraisal or major defects discovered when the inspections are done, a deal is a deal. Stop torturing yourself and let it go. Be content that you bought a home at or near the bottom of the market, and be thankful that you’ll be saving thousands in the long run with today’s great interest rates. Even if you think you might have paid a few thousand too much, the low interest rates will more than compensate for that over the lifetime of the loan.

I’m so scared about making this 30-year commitment

Thirty years seems like a long time, but here’s how to re-think it. You will always need a place to live, and with any luck, you’ll be content to stay in the home long beyond your 30-year commitment. Unless you have access somewhere to free living space, here are your options:

• Rent a home and pay a landlord the rest of your life
• Buy a home and pay cash
• Use mortgage financing to buy a home and make payments over time

Realize that the commitment of paying on a 30-year mortgage, that you have the power to pay off over time, is still much better than the alternative of throwing your money away on rent and having nothing to show for it. It’s true that you are bound by a mortgage, but remember you can always sell the property. Just remember to make sure that you are selecting your home wisely and thinking about the resale value when you want to sell. Choosing the best home in a bad neighborhood, or buying a home in what’s considered a poor school district, may affect your ability to sell down the line. Also, you are not totally bound to paying a mortgage for 30 years: you can shave 5 to 10 years off your commitment by paying a little extra each month towards your mortgage principal. If you get a raise, and you really don’t need it to pay off other bills, build it into paying off the mortgage on a regular schedule.

I can’t believe I went through all my savings to buy this house

Gone are the days of getting into a house for free or with very little down. Lenders are requiring down payments that put more commitment to the buyer in purchasing a property. Perhaps you watched your nest egg build up over a few years, and suddenly writing a few checks takes it all away. It can be worrisome to some people, but keep in mind that you didn’t throw the money away, you just made a large investment in a home that you and your family will live and flourish in. This is precisely why you saved the cash in the first place, and if in 30 years you decide to downsize because you don’t need that much space, you could make a lot of money when you sell that can help with your retirement.

Finally, due to the timing of making your investment in buying a home today, you are buying a home at 2001 prices and at the absolute best interest rates in over 50 years!

Feel good about your investment. You did a great job!!!

If you would like to know more about investing in a new home, please email me: or give me a call: 415-755-8919.

Posted by:  Rick Smith

Many buyers today hunt for months, and sometimes even for years, before finding the right home. Even if buyers have narrowed their hunt to a specific area and price range, finding the ideal home can still be difficult. However, there are certain indicators you can use to determine: “This is the one!”

1. You instantly feel possessive about the home
   A winning home will bring a smile to one’s face, and the urge to write an offer as quickly as possible so as not to lose out can take over. If another agent shows up while you are viewing the home and you secretly look at the other potential buyer with daggers in your eyes, that’s also a pretty strong signal that that home is “The One.” If you walk through the place wondering how quickly you can get an offer in, and how much you should offer to beat other buyers out or to lock it down quickly, it might be “The One.”
2. You start dismissing the home’s flaws or shortcomings
   Let’s face it, if you have been searching for a home for a long time, you come to realize that there is no perfect home. There may be some that are close to perfect, but 9 times out of 10 you will have to make some allowances in what you think is the perfect home. Smart buyers should be aware that the aesthetics of a beautifully staged home with amazing curb appeal can hypnotize buyers, leaving them blind to negative property features. However, if you have determined that a home has 75-80% of the things on your wish list, and then start rationalizing that you didn’t necessarily need the other 20% (so, you wanted a flat back yard for the kids, but now you have a hill. So what. By the time kids are in the 4th or 5th grade, they never go outside anyway, they just want to play video games with their friends), it’s “The One!”
3. The bathroom and kitchen don’t disgust you
   For some innate reason, the kitchen and bathrooms are significant keys to what  I call “gross out potential.”  There is just something going on with those rooms that seems exceptionally intimate. So if you find a home and are getting excited about the marble bathroom floor and shower, or love the way the built-in cookbook stand on the countertop looks, those are signs that you’re falling in love with the property and that it’s “The One.”
4. You envision where your own family, furniture, and decor go in the home
   The best staging helps prospective buyers envision themselves living in a home. If you find yourself inserting your own sofa in the living area and wondering how  it will look,  or you visualize your daily meditation in the breakfast nook, or even discuss taking walls out entirely, it’s possible you may be in “The One.”
5. You lose interest in seeing other homes
   I took some buyers out that had been searching for a home for six months. I planned to show them seven homes, but when they got to the fourth property they declared they had found “The One” and there was no need to go any further. I wanted them to finish looking at the other three, if for no other reason but to confirm that was the right home. They went along with me and viewed the other three, but then promptly wanted to put an offer on number four before someone else moved on it. They bought the house and live there today, still extremely happy with their choice.

When you find “The One,” continuing on the house hunt you may have obsessed about for months or years may seem like a waste of energy. Trust me, if you have any of the above symptoms, you most likely have found “The One” and you should go with your gut instinct to go for it!

If you have any other questions about the home buying experience, just give me a call: 415-755-8919; or email me: rsmith@fhallen.com.

Posted by:  Rick Smith

Once you have decided to buy a new home, you will most likely be interested in getting a great price on a great home, and avoiding homes that may cost you a good deal of money in improvements or repairs down the line. If you have been doing your homework, and you see an unbelievable price on what you think is a great home, the first thing you should do is to have your Real Estate Agent pull the comparable sales (comps) in the neighborhood. If the home is significantly lower than the comps in the neighborhood, it could signal that the sellers have priced it that way because they know there may be issues that need to be addressed.

Here are five strategies that potential home buyers can act on to prevent buying a lemon:

1. Attend your inspections. Probably the single most important thing to do after getting into contract is scheduling inspections, which at a minimum should include a pest and general home inspection from reputable companies (names of which your agent can supply). Once the inspections are scheduled, it’s important that you be there to talk with the inspector so he can show you any items that may need repair. Unlike just reading a report that spells out all the issues, the inspector can give you an opinion about how major the needed repairs may actually be. A report will give you most every tiny repair that a home may need, which could potentially be scary, so you need to understand which repairs are minor, and which ones may require a great deal of money to fix.
2. Read the reports and disclosures. After the inspections, you will get lengthy reports generated by the inspectors, and reports and disclosures provided by the seller. Things to watch for and investigate further include repairs that the Seller completed themselves, repeated repairs on the same home system, water and leakage issues, and any reports of non-functioning mechanical systems of the home. Be sure to look at your own inspection reports carefully and question anything you don’t understand. You have hired the inspectors, so don’t hesitate to call them on the phone for further clarification and ask what they think the cost might be for a potential repair. If they don’t know, be prepared to get a specialist involved to give you an estimate so you know what you are looking at in real dollars and cents.
3. Get multiple repair bids while your pest and roof inspectors may give you an estimate of repairs, generally a home inspector will not. Be prepared to get two to three estimates of what a major repair might be while you are still in the contingency period to avoid surprises; use these estimates to provide for renegotiation of credits or a price reduction on the property.
4. Don’t expect that you can do it yourself inexpensively unless you are a construction professional, most major home repair projects require a lot of time and money, more than you would expect at the outset. It is still wise to get the repair estimates from professionals, so that you can at least be armed with the information and what it will cost if you can’t complete them yourself.
5. Price reductions and credits are better than seller repairs. Remember, if you are asking for a credit, you will be able to pick the professional, and the quality of materials yourself, and you can be assured the job is done to your liking. A Seller has a vested interest in getting a repair done at the lowest possible price and may cut corners and skip quality materials. It is much easier on both the buyer and seller if you request a price reduction or credit for repair at the close of escrow.

These are some of the best ways to avoid getting stuck with a money pit. If you would like to know other ways or need further explanation, please email me or give me a call at 415-755-8919, and I’ll be happy to help!

Posted by:  Rick Smith

Selling a home today is very competitive, so making a good impression on prospective buyers is critical. There are a few home improvement projects that you can do that can make a huge impact and could give you a big return on your investment when you decide to sell.

1. Painting
   This one is sort of obvious, but it is the first thing you should do to increase your home’s appeal. Go for white or neutral colors that will lighten your rooms. Now is not the time to experiment with colors like fuchsia and lime green as you could turn off quite a bit of your audience of buyers. Buyers have an easier time imagining how they would infuse their own personalities on a “blank canvas.”
   
   Painting lightens and brightens rooms and instantly removes scuffs and dings that may have happened during your ownership. Adding fresh exterior paint is also an option, but if you are on a limited budget you may just want to paint the trim, doors, and shutters to improve the appearance at a low cost.
   
    
2. Landscaping
   Curb appeal is important! Buyers will be more excited about looking inside your home if the outside looks clean, trimmed, and inviting. Make sure you mow the lawn, trim the hedges, pull the weeds, and plant a few colorful annuals to improve the look of the exterior. Make the landscaping look low key and low maintenance. Although you may want to turn your yard into an English garden, there are many people out there that don’t want to take on the cost and time of the maintenance. Think clean, simple, and elegant to get the biggest boost in value.
   
    
3. Cleaning and de-cluttering
   As much as you love your family photos, start preparing your home by removing all personal photos from walls, dressers and counters, and remove all the “stuff” that ends up cluttering tabletops. Buyers want to envision their lives in your home, not yours. Personal items and the clutter they create have shown time and time again to block buyers’ ability to create this vision.
   
   Also, take a look at how much furniture you have in each room. Buyers are evaluating the size and space of each room in the house. Remove furniture that takes up too much space and fills up rooms. Make sure clothes, boxes, and mail are properly stored out of sight. Clean the home, and keep cleaning while your home is on the market. Kitchens, bathrooms, and bedrooms should look “unlived in.” Don’t forget to clean windows, doors, and floors, and to polish the appliances.
   
    
4. Plumbing repairs
   Make sure you have fixed any leaky faucets and toilets throughout the home. Water leaks under a cabinet could provoke and disgust a prospective buyer, and if the space under your sink looks like a cluttered mess, be sure to store or toss all the half-empty bottles and containers to free up some space.
   
    
5. Staging
   Staging your home can make a dramatic difference in the price your home sells at. Removing your personal belongings and replacing them with more artwork and decor, and adding newer looking furniture can make a difference. When the staging work is well done, it can convert your home from “just another listing” to a home that buyers can envision themselves in; a place where they can start the new life of their dreams. Professional stagers have special skills and materials they use, and know that items like lamps, pillows, artwork, and even furniture can tell a visual story.

These are the top five things I would do when getting a home ready to put on the market. Talk to your agent as there may be additional things of value that could contribute to getting a better price. If you need more information or ideas about getting your home ready to sell, don’t hesitate to call me at 415-755-8919 or email me at for a free evaluation.

Posted by:  Rick Smith

Buying a home is very different today from when homes were sold a few years ago. Then, the house hunt was fun, there were only a few inspections that needed to get done, and you quickly closed the escrow and moved in! Sounded fairly simple, and the whole process took around 30 days. Now, as soon as a buyer decides to make the move, it sometimes becomes a test of nerves through the entire escrow process, as contracts often get cancelled, and buyers can’t relax until they get the keys in hand.

Here are three of the most common reasons today why contracts get cancelled, and a few steps on how to defuse some of the problems in successfully closing an escrow.

Problem #1: Appraisal Comes In Too Low

Some buyers think and hope that the appraisal will come in low so they can negotiate a better price from the seller. If the appraisal comes in just a little bit lower than the contract price, you can usually get the seller to lower the price or have the buyer kick in an extra few bucks to make the sale happen. However, there are so many sellers that are barely breaking even at current sale prices, as they may have purchased only a few years ago when prices were substantially higher, that when the appraisal comes in 5- 20% lower, they can’t afford to sell and most buyers won’t budge.

Advice: The best way to avoid this when buying a new home is to have your agent check the comparable sales in the neighborhood to make sure you are buying the home at the right price to begin with. Make sure you are not making a high offer over the comps, even if you get into a multiple offer situation, unless you are prepared to deal with a surprise in the appraisal a couple of weeks from closing the escrow. It’s also important to choose a local mortgage broker who originates his own loans, as these lenders have the ability to choose from a smaller pool of appraisers who know the area better than an outside area appraiser, who doesn’t necessarily know the neighborhood.

Problem #2: Property Condition Issues

After the home market crash a few years ago, many lenders found themselves holding properties that were in awful condition, and when they were taken over in foreclosure, they were worth thousands less than the market value they were purchased for originally. Lenders now pay much more attention to the appraisal and the ragged condition of distressed properties being sold. Homes that have extensive wood rot, termites, dangerous decks, missing appliances, sinks, or electrical work, will raise a flag, and need to have these issues resolved prior to the lender accepting the loan.

This is tough, because if the property being purchased is a bank-owned REO, the sellers will refuse to fix the properties 9 times out of 10, since the buyer is getting such a rock bottom deal. When the property is an REO and is listed “as is,” the bank really means it. It is bought “as is” with no other credits to fix the property condition.

Advice: If you are buying a distressed property, make sure you understand the requirements of the lender on what they will or will not accept as a minimum condition of the property and keep that standard in mind when hunting for a home. Some buyers have the money to make the repairs, and may be willing to pay for them if they know they are getting a great deal, but other buyers may only have the cash to close the deal, and any extra to invest in further repairs may not be available.

Problem #3: Loan Approvals

Buyers know they need to get pre-approved for a mortgage before they start house hunting, and many assume that once they are pre-approved, that is all that needs to be done to get the loan. Many don’t realize this is just the first of a long list of things that have to happen before the loan is finally approved. In fact, many buyers become pre-approved months before the purchase of the home, and things can change in the process. If you have taken on more credit card debt for example, this may throw you out of qualifying for a loan. The lender may have a long list of questions, that seem like picky questions, about the appraisal, about the buyers, where the funds are coming from, divorce decrees, employment status if they are moving from another part of the country, etc. It never seems like they ask for everything at once, thus it can take longer than the standard 17 days written in the contract for it to close.

Until final approval is in place from a lender, it is unwise for buyers to lift a loan contingency as it could lead to a loss of their deposit if the loan doesn’t come through and they have to default on the purchase of the property. Many buyers will ask for an extension from the seller, and the seller may grant the extension, especially if there is not a back up offer in place, but I have also seen sellers cancelling the contract as well, as they become frustrated with the buyers, and want to move on to sell their home to someone else whom they know will close.

Advice: The best advice is to be prepared for lots of document verification and all kinds of requests, and to move as quickly as possible to provide what the lender is requesting. Both buyer and real estate agent should be checking on the loan every few days just to ensure everything is on track and there are no surprises, and to avoid having to ask for an extension for the loan contingency.

These are just three reasons why a contract might get killed, and there are obviously many more. If you would like more information on how you can avoid issues when buying a home, please contact me or leave a note in the comments.

Posted by:  Rick Smith

As the computer age has evolved, there are a lot of users who have decided to utilize websites such as Redfin and Trulia for getting information about comparables of what price their home is worth in today’s market. They are shocked to find that when they talk to a Realtor, the values are sometimes completely different from what the website information reports.

Real estate websites have transformed the whole experience for consumers and have made what used to be private information that was difficult to get, namely listing and sales data about homes across the county, easily accessible to the masses.

However, you have to remember, these are all computer programs, and there is nothing personalizing the data to determine the accurate value for your home.

What’s involved is a computer taking the location and description of your home (the number of bedrooms, baths and square footage), from public records from the county recorder’s office, or from a recent listing, and comparing it to others that have sold recently with similar data on record. But what if nothing has sold in your neighborhood for a while?

The computer cannot necessarily distinguish differences in a property’s condition or aesthetics, nor does it correct for whether the house two blocks over was a short sale or foreclosure.

Depending on where you live, how similar homes are to one another in your area, the level of sales activity and level of accuracy in the public records for your house, the “comparables” (or comps) really aren’t that comparable at all.

If you live in a subdivision where the homes are fairly cookie-cutter, such as in neighborhoods around Terra Linda and a few neighborhoods in Novato, then you are likely to get a good set of comparables, and a value estimate that’s at least in the ballpark. But in most areas of Marin, the homes vary pretty dramatically even within a neighborhood.

For some examples of what might skew the comps, please consider:

1. If your home is older and has had a lot of improvements or even additions that aren’t in the county records.
2. If your homes in your area are very different from one another, you might get bad comps.
3. If you live in a neighborhood very close to another neighborhood where homes have a much higher or lower value than your area. Maybe you live in a different school district or even the other side of the city limits. I live in Kentfield, which is among the better school districts in Marin. However if you go just over the hill a couple of blocks away, you are in the San Rafael school district that has good schools, but doesn’t score quite as well as Kentfield, so the property values are much lower.
4. If your home is in an area where homes are very dense, the algorithm might jump over many properties to get a relatively dissimilar one even a 1/2 mile away.
5. Finally, and most importantly, if your property has been well-maintained and in sparkling condition with all the great aesthetics a property can offer, but the comparable property that was recently sold was run down and in bad condition, you might get a lower comparable of what your property is really worth.

The data provided by these web sites can be very useful for trying to stay on top of home sale prices in your neighborhood or area. However, they are less useful, in my opinion, for placing values on a property.

When it’s time to sell your home, you really need a good Real Estate agent to come in and figure out what it’s worth. No computer is as accurate as a living, breathing local real estate professional who sees and sells all different types of homes in your area and knows what able and willing buyers will actually pay for them, especially in a wide a widely varying county such as Marin, where just about every property is different, even if they are next door to each other.

It’s important for sellers to interview a few listing agents to get their views on what the are properties are really worth, then to go with the agent they feel best about, not just the one who says their home is worth the most. In many cases it might not be, and the property could take a huge amount of time to sell or may not sell at all.

If you would like more information, please don’t hesitate to call me at 415-755-8919 or email me at for free advice on what your home may potentially be worth.

Posted by:  Rick Smith

Interest rates have fallen to record lows, and a lot of homeowners are taking advantage of the terrific savings, especially since some of the homes may be underwater, to at least reduce their house payments.

However, homeowners who anticipate that they will want to sell in the next couple of years need to understand what they may net if they re-finance right now. Some owners view re-financing as a way to save money on their current mortgage. Borrowers who do this often ignore the impact of the re-finance on the size of the loan balance that they will have to pay when they sell.

For example: Say the current balance on a 4.125% mortgage is $300,000, with a payment of $1,685 and 23 years remaining. The borrower expecting to sell in two years refinances into a new interest only adjustable rate loan at the same rate, reducing his house payment to $1,031 per month, $654 per month reduction. Sounds pretty good, right?

The closing costs are $6,000, but the borrower has reduced his payment $654, which over two years sums to $15,696. By logic, the owner thinks he is ahead by $9,986, which is the difference between the two sums.

What he has overlooked, however, is that if he would have stayed with his original loan, he had paid down the balance by $16,307, which would have resulted in the additional net proceeds going into his pocket at the time of sale. What he thought was a gain of $9,986, is actually a loss of $6,321. Of course, if the new loan has a significantly lower interest rate than the original loan, the refinance could result in a larger net proceeds at the time of sale.

Interest rates are definitely on the very low side right now, and if the rates are significantly lower than your original loan, it may be well worthwhile to lock in a new low rate. If you are planning on moving anytime soon, however, I would definitely make sure to talk to your accountant about it first, just to make sure you are getting the greatest savings possible, and you will be netting as much money as possible, at the time of sale.

If you would like to know more give a call at 415-755-8919 or email me at rsmith@fhallen.com

Posted by:  Rick Smith

Home ownership rates have dropped significantly since the 2009 recession, as many people lost jobs, and were underwater on their home values. Currently, the home ownership rate is around 59.2%, which is the lowest level since the Census Bureau began keeping quarterly records in 1965. Falling home prices along with reduced access to credit have kept may prospective buyers out of the market.

The top benefits for home ownership haven’t changed however. Here are five good reasons why you should buy:

1. Savings – You could be saving money by buying a home once you consider all the tax breaks; and once you build up equity, you could have an automatic savings account for retirement or for purchasing another home once it comes time to sell.

2. Tax Breaks – Home owners are able to take the mortgage interest as tax deductions each year, and also benefit from great rebates and credits associated with upgrades made to the home.

3. Equity – When you rent and pay a landlord, it’s basically money thrown away. When you are paying on a mortgage, you are paying towards owning something. You may still owe $200,000 but in time your home can be worth much more and you stand to make a large gain when it comes time to sell.

4. Budgeting – Unless you are living in a rent-controlled apartment, each lease renewal could mean an increase in the rent. As un-occupancy rates are at around 2%, rents have gone up an average of 6% this year, and it’s looking like they will go up again if the predicted un-occupancy rates remain low. If you were paying $3,000 a month to rent a home, that’s an average of an additional $180 per month or an extra $2,160 per year. With a fixed-rate mortgage you know what you are going to pay for the life of the loan, so you can budget your money more effectively.

5. Security – When you own, it’s yours. You can paint, improve, decorate, add landscaping – because it’s your investment for life.

Homeowners are in neighborhoods, giving an owner a chance to meet other people in the neighborhood to build friends and relationships. Studies have shown owners rank themselves much healthier that their renter counterparts, because of these relationships. Experts have recommended for years that if you are planning on staying in the same place for five or more years, then buying becomes a better deal. You will have time to recoup any extra expenses found in closing costs and you are now making an investment through price appreciation.

Home affordability is at near record highs. It is a great time to run the numbers to see if it makes good financial sense for you .

If it does, then you’re in store for a wealth of benefits that only homeowners can experience!

If you would like to know more, please give me a call at 415-755-8919 or email me at . I’d be happy to help.

Posted by:  Rick Smith

Labor Day weekend signifies many things: the unofficial official end of summer, back-to-school, and one last three-day weekend hurrah before fall and eventually the holidays, which always seem to come too soon.

Historically, Labor Day constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country. And what better way to celebrate hard work than with a nice, relaxing long weekend.

Here are our top picks for Labor Day activities around the North Bay:

Downtown Days on the Green

Saturday, September 3
901 Sherman (next to City Hall), Novato
3:30 PM – 5:30 PM

Free concert on Novato’s City Green featuring local blues/country/rock band Lucky Dog.

EcoFair Marin

Sunday, September 4
Marin County Fairgrounds, San Rafael
10 AM – 7 PM

The first annual community celebration to inspire a healthy and sustainable Marin. Activities include speakers and exhibitors, music and activities for the whole family. Every feature of EcoFair Marin – from public to back-of-house operations – will be sustainably produced.

Sand Sculpture Contest

Sunday, September 4
Drakes Beach, Point Reyes National Seashore
9 AM – 3:30 PM

This annual contest is one of the most popular family-friendly events in the North Bay and Reason #46 Why We Love Where We Live

Sausalito Art Festival

Saturday, September 3 – Monday, September 5
Marinship Park, Sausalito
10 AM – 6 PM (Sat/Sun); 10 AM – 5 PM (Mon)

Renowned outdoor event held annually Labor Day weekend in Sausalito, California, since 1952. The 2011 Art Festival will feature over 275 artists and live performances by The Romantics, Men Without Hats, Kenny Loggins and more. The festival is part of Reason #10 Why We Love Where We Live.

Sausalito Open Studios

Saturday, September 3 – Monday, September 5
Industrial Center Building, Sausalito
11 AM – 6 PM

Sausalito Artists at Work, a group of local artists, will host open studios during the Sausalito Arts Festival. The studios are located in the Industrial Center Building, a short walk from the Festival.

Wine Country Weekend

Friday, September 2 – Sunday, September 4
Wineries throughout Sonoma County
See website for times

An epicurean event unlike any other, Sonoma Wine Country Weekend combines the elegance, sophistication, and style of Taste of Sonoma at MacMurray Ranch, with the festivity, frivolity and fundraising of the Sonoma Valley Harvest Wine Auction at Cline Cellars for three unforgettable days of celebration.

Is there a Labor Day weekend community event that we missed? Add it in the comments to let everyone know what else is going on this weekend.

Posted by:  Frank Howard Allen Realtors

As the stock market has declined significantly over the last four weeks, there is a silver lining to an otherwise dark cloud for investors: as many people cashed in equities and moved money into bonds, interest rates have moved to historically low levels.

Based on these low rates, you may be considering refinancing your home to lower your house payments. Does this make sense? Aside from lowering your interest rate and house payment, let’s take a look at how much you can potentially save in the long run from going to a 15-year fixed rate.

Depending on when you bought your home and the rate at which it was financed, switching to a 15-year loan may result in a little bit of a higher monthly payment. For example, in my case, when I bought a property in 2005 I got a good interest rate at the time – 5.75% for a 30-year fixed loan. After refinancing, my new rate is 3.87% for 15-years and my total monthly house payment is about $50.00 a month higher than my 30-year payment.

You may be asking yourself, why would I want to pay more than my current loan? Isn’t the goal to pay less?

To answer the question, you have to look at how much you would be saving over the course of the loan. Assuming your current 30-year loan payment is $2,000 per month, you would be paying a total of $720,000 over the course of 30 years or 360 months. If you go with a 15-year loan at an increase of $50 per month, you will instead pay $2,050 per month, for a total of $369,000 over the course of 15 years or 180 months. A savings of $350,100!

Some people can’t afford a 15-year loan as their income can’t support the higher monthly bill. Those worried about job security or a business failure may opt to go with a 30-year loan to lower their monthly payments. It’s basically the cheapest way to borrow money. However, if you are pretty confident in your income being stable and you can afford a little bit extra going towards your monthly payment, then I say, “Go for it!”

When comparing the two types of loans, there are other things to consider as well. If you are currently stuck with a high mortgage payment and you can’t save any money for retirement or for your child’s education, you may want to opt for the lower 30-year house payment in order to sock the money into a savings account for those future expenses. You should also consider the tax break advantages in that a 30-year loan will provide a bigger tax savings at first, as you are paying mostly interest for the first 15 years, which is all tax deductible. However, Congress is currently considering measures to wipe out the current mortgage interest and fees as a tax deduction, so a 30-year loan then becomes less appealing. That’s a whole other story – and I would encourage you to write your congressperson a letter to share your disappointment if that happens, as it currently is a hot topic in Washington.

If you would like further explanation or more information, please don’t hesitate to call me at 415-755-8919 or email me at rsmith@fhallen. com for more details.

Posted by:  Rick Smith

As property and home values have declined over the last three years, there may be an opportunity for you to lower your property taxes as well.

Property values are back to 2002 to 2003 levels, or roughly down 30-40% from their peak in 2007, depending on the neighborhood and town you live in. If you bought your home between the years 2003 to 2008, you may have experienced a decline in your home value as well. There isn’t anything you can do to change the tax rate, which is roughly around 1.25% of your property value. (This can vary from town to town depending on the amount of school bonds, emergency services, library services, etc. that your community supports.)

It is currently estimated that over 50% of home owners are paying too much in property taxes today. What you can do is to file an appeal with the county. To do this you have to go to the tax assessor’s website and pull similar properties in your neighborhood that have sold in the last six months. You need to be sure they are similar in size, have the same square footage, number of bedrooms, bathrooms, garage, etc. Before you pull those numbers, it’s a good idea just to make sure the assessor has your own home recorded properly. If your records have been incorrectly overstated, then you want to get that corrected first.

Armed with this knowledge, and having printed out the neighbors’ lower assessments, you can file an appeal. About one fourth of these appeals result in a lower assessment.

Filing an appeal is pretty simple: just print out the form from your county tax assessor website and provide the information you have collected. The assessor will look at each of the comparable property sales and question homes that were foreclosed on or other distressed sales. Note that since the housing market has been weak, there may not be enough comparable sales to make a judgment. You may have to hire a professional appraiser to value your home, which can run between $400 to $500 for the assessment. You can also hire a tax lawyer or property tax consultant to do the leg work of the appeal, if you are willing to pay for it. A property tax lawyer can charge 30 to 50% of the tax savings for the year.

The effort could save you a lot of money not only for the current year but in years to come. According to California law, the most the state can raise your property value is a maximum of 2% per year.

Say you bought a home for $1.2M in the peak year of 2007, and your property taxes, without the local taxes included, were 1% of the property value, or $12,000. If your home value decreased by a minimum of 30%, your value could be $840,000 today; your property taxes would be 1% of the value or $8,400, for a savings of $3,600 a year!

While knowing your property value has declined stings, at least you can save a pretty substantial sum by getting it re-assessed. You should also check to see what interest rate you are paying on your current mortgage, as it could also make sense to get your home refinanced, since interest rates are at a 50-year low. Between refinancing and the re-assessment, you could save hundreds of dollars each month for just a little bit of effort.

If you need more information or have any questions, don’t hesitate to call me at 415-755-8919 or email me at .

Posted by:  Rick Smith

There was an interesting article on August 17 in the Housing Wire news publication that talks to the fact that mortgage applications increased at a rate of 4.1% for the week ending August 12.

I’ll give you a quick synopsis of what was said, and you can find the complete article here.

The article states that, as a result of the recent stock market plunge, interest rates fell to the lowest level since the 1950s as people pulled money out of equities and put them into bonds. Based on what happened last week, I too decided to refinance my home this week at a ridiculously low rate of 3.78%.

The significant drop allowed me to refinance my 30-year loan and convert it into a 15-year loan where I am basically paying about the same monthly amount, but now it will be paid off 10 years earlier. My total savings over the life of the loan will be a whopping $240,000!!!

These lower rates will also allow first-time buyers to qualify for a larger loan amount and buy a better house than what they may have been able to do just 30 days ago.

Home refinancing comprised of almost 79% of the loan applications last week; the average contract interest rate across the country fell to an average rate of 4.32% for a 30-year loan.

I would also suspect, that as a result of the stock market declines last week, home prices could dip, as an incentive for Buyers to buy now, rather than the seller risking a longer time on the market to sell their home.

July home sales dipped 3.4% in Marin. I have to add that July 2010 was one of the worst months we have in real estate, so the number of sales were already at a low basis to begin with. As sellers see lower activity in the market, they’re faced with having to reduce their prices to move homes that have been sitting on the market since spring.

If a buyer were thinking about selling versus renting, now would be a great time to buy. Rent prices in Marin have increased 6% over last year and the vacancy rates are at extremely low rate of about 2%. Rents will only continue to go up with these low vacancy rates, as it becomes a landlord’s market in getting higher lease rates.

Posted by:  Rick Smith

Before you put an offer in on a new home you need to find a Mortgage Broker or bank to prequalify you.

Here are five important questions you should ask your mortgage professional:

1. Are you working with a Bank or a Broker or both?

Mortgage lenders that are banks have more control over the appraisal process, which is helpful as they can find local appraisers who understand the neighborhood you are looking at and can better ensure the appraisal comes in at the stated value that you negotiated in the contract. Brokerages with their own in-house bank and a large list of lenders provide a larger range of fallback options than plain old banks, and that can be an advantage if you are having trouble acquiring a loan.

2. What are the charges on a Good Faith Estimate?

A Good Faith Estimate is a pretty clear description of all the costs associated with acquiring a loan, but you should still ask your broker to go through the costs to make sure you understand everything. While the estimate shows all the costs, it sometimes doesn’t show the actual amount of funds you’ll need to close the loan, so ask your representative to prepare a fee sheet or estimate of funds as early in the transaction as possible.

3. How long will it take to close my loan, and how much time do I need to release my loan and appraisal contingencies?

This is a very important question because there is no standard time period. Some lenders can get everything ready to lift contingencies in 10 days, while others need up to 30 days, depending on any complications on the loan. Whatever the time period is, that needs to be stated in the contract because you don’t want to have to extend your contingencies, as it may throw you out of the contract if the seller doesn’t want to extend.

4. Are there any fees for the loan application and approval process?

You should ask to see if there are any fees associated with the process and understand that there is always a fee for an appraisal. A Buyer will have to pay for the appraisal up front prior to the investigation whether the home appraises for the contract value or not.

5. How long have you been doing this?

Mortgage professionals that have been around a long time know how to troubleshoot and work around issues in advance, which is essential in hiring a lender. You can even ask the lender to provide references to check to see how efficient the lender has been in the past in closing loans. If you get a relatively “green” broker, they may not know all the ins and outs of handling issues when they arise, and you may not be able to close the loan on time…It’s a lot easier if you know the loan is in the hands of a seasoned professional who can be trusted with your largest asset and the largest financial obligation you may ever have.

Posted by:  Rick Smith

So you have put an offer on a home, the Seller has accepted it, you’ve done all your inspections and got the financing for the loan lined up – Hurray, you are ready to close escrow and are almost the proud owner of a new home! While you may be inclined to sit back and relax, this is still an important part of the buying process.

Here are four key things you need to know when getting ready to close escrow:

1. Don’t Make Any Large Purchases

Most people understand they shouldn’t go out and buy a new car when they are ready to buy a new home, but you would be surprised how many people don’t know you also shouldn’t open any new credit card accounts to buy new appliances or open up financing for the remodel of a kitchen or bathroom for your new home. New accounts can show up on the account endangering the deal, generating a surprise “no deal” at the time of closing. Lenders also check the funds on your bank account to make sure no unexplained large amounts of money have either appeared or disappeared. They know that sometimes borrowers are inclined to borrow money from friends and family just before closing to help pay for the close. The lender wants to make sure you don’t have any outstanding obligations to repay that may interfere with paying on their mortgage note.

2. Disclose Everything When You First Apply for the Loan

Today’s underwriters are real sticklers for reviewing and re-reviewing facts on your loan application. As the lending guidelines have toughened up, so have the underwriters and lenders. Sometimes you may have a chain of underwriters reviewing your loan in order to close the deal. Understandably, the underwriter is the one who is responsible for funding hundreds of thousands of dollars for the loan, so they want to make sure everything is totally buttoned up and there are no mistakes when they are responsible for making the loan.

3. Watch the Closing Dates

Once the closing dates have been established and you have locked in the interest rate, make sure you understand how long that rate is locked in for. Many times a Buyer can get an approval and lock a rate during a short sale, but since a short sale can take anywhere from 3 to 6 months, the rate that was locked can expire. Now you may be looking at a higher rate, which may knock you out of qualifying for the loan, as your income to debt ratio has changed. Make sure both your Real Estate Agent and Mortgage Broker are in tune with what’s going on with your loan at all times so you can avoid any surprises, and solve issues as quickly as possible when they come up. If you are buying a short sale property or REO, make sure the Mortgage Broker knows this up front, so they don’t lock in the interest rate too quickly, and they have plenty of time to close without endangering your loan rate lock. Also, on a short sale or REO, it is advised that you keep a little bit of a cushion of cash for any unexpected surprises in case the closing is delayed for reasons beyond your control.

4. Review Your Closing Documents In Advance

Buyers should work with the Title Company and Mortgage Brokers to review the closing documents at least one day in advance. If you have to review a ton of papers and you have already determined your move dates, you want to avoid any surprises that could delay the close of escrow and prevent you from moving into your new home as planned. The best thing is to get the documents in advance and review the interest rate, the loan amount, the monthly mortgage payment, and closing costs. If you have any questions, you can get clarification before the close date and surface and resolve any issues, without disrupting the close of escrow.

Avoiding surprises before the close of escrow can really prevent a great deal of frustration and worry at the time of closing. Pre-prepare for any issues that may arise, communicate daily with your Real Estate Agent and Mortgage Broker, and above all, move as quickly as possible when you are asked to provide additional documentation. This will keep you on track for the smooth close of escrow so you can get into your new home on time.

Questions? Leave them in the comments or contact me: 415-755-8919 or rsmith@fhallen.com.

Posted by:  Rick Smith

Credit: Brandi Korte via Flickr

We’ve been saving this one. Reason #100 why we love where we live is the Golden Gate Bridge. The elegant structure has graced our landscape for nearly 75 years (with the anniversary in 2012), yet remains to this day an awe-inspiring work of art and engineering.

With its soaring towers, 4,200-foot long suspension span, striking, distinctive red color, and licorice-like cables, our Golden Gate appears magical. Add to that its setting against the backdrop of the skyline of San Francisco, the royal blue ocean and bay, and the green rolling hills of the Marin headlands, and it’s no wonder it’s famous the world over and draws thousands of visitors every year.

But that’s just our view as drivers, pedestrians, and admirers from afar. We wanted to learn what it’s like for those who experience the bridge in a different way – by actually working on it. We were fortunate enough to be able to connect with Tim Hanson, a Marin resident and one of the handful of people who care for the bridge on a daily basis. Here’s our conversation:

Credit: Brandi Korte via Flickr

Tim, what does your work involve?

I run a paint crew and we are currently working at the north end on the structure beneath the roadway. This entails rigging and setting up the sand blasting equipment in a contained area, doing a full removal of the existing paint and applying fresh primer and top coat.

What is it like to be one of the few who work on the bridge?

I feel privileged to work on this great structure and to have such a spectacular view from ‘my office’ but don’t get me wrong, it’s hard work taking care of the bridge and we are constantly battling wind, fog, cold and moisture.

Can you share a fact that not many people know? Or correct a misconception?

Credit: John K. Steddin

It’s a common misconception that we start painting at one end of the bridge, get to the end and start over. Crews are sent to work on specific areas which have the greatest need. Some areas need more paint than others because of corrosion; the weather patterns come in and corrode some areas faster than others.

What is the most fascinating aspect of the bridge for you?

The ever changing scenery and atmosphere: weather patterns, the ships, whales, sail boats and, of course, all the interesting people from all over the world.

Though for some the Golden Gate has probably become just a routine means of getting from point A to point B, for many of us in the North Bay it never ceases to be a magnificent, living masterpiece – and the most wonderful sign that one is home.

A special thank you to Tim and Nancy Hanson for their contributions.

Follow along as the full list unfolds – 100 Reasons Why We Love Where We Live

Follow the reasons on Facebook

Posted by:  Frank Howard Allen Realtors

Though we’re surrounded by water in the North Bay, falling asleep to the sound of crashing waves, the lap of the bay on the shore, or the flow of a rushing creek is not something many of us often get to experience – unless you’re among the few who have discovered the many wonderful camping options available in Marin, Sonoma and Napa.

Yes, with the recession came an increase in popularity – and necessity – of the stay-cation, and camping close to home is an ideal option, especially when you consider the amazing sites that our North Bay offers.

Credit: Emily Hoyer via Flickr

Steep Ravine in Marin is considered by many to offer the most stunning location. Located on a bluff above Stinson Beach, the rustic cabins (no running water, electricity, or curtains) and tent sites have spectacular views of the coast and sunsets.

In Sonoma County, Doran Park and Westside Park, both in Bodega Bay, are ideal for those who like to fish for their dinner and then enjoy a stroll on the beach.

Those who prefer the more predictable and warmer weather of inland sites head to Bothe – Napa Valley State Park, just north of St Helena. Campsites are located near redwoods and along a creek, and on sunny slopes – and even offer hot showers.

Whether your budget calls for a stay-cation, or you’ve just mustered the nerve to graduate from “camping” in your cozy backyard to the great outdoors-close-to-home, it’s hard to beat the North Bay for sleeping under the stars.

Resources:

Credit: Emily Hoyer via Flickr

Marin County 

• Angel Island 
• Marin Headlands 
• Samuel P. Taylor 
• China Camp 
• Mt Tam 
• Marin County Parks and Open Space

Sonoma County

Napa

• Skyline Wilderness
• Statewide Camping
• California State Parks Camping Page

Follow the reasons on Facebook

Posted by:  Frank Howard Allen Realtors

One of the most important aspects of buying a new home is the home inspection. If you aren’t familiar with a good inspector, your Real Estate Agent should know of a few good ones. After the home inspection you will usually get a 45 page report covering just about everything you can think of, including the plumbing, roof, water heater, and wiring, just to name a few items. The home will be compared to 2011 (or current) standards, so you will find a lot areas that may not be up to today’s standard but were standard when they built the home. These reports can become frightening to a prospective new Buyer if they have never seen them before. I always call it “45 Pages Of Why You Don’t Want To Buy A Home.”

The language used is pretty technical, and most of the time the reports need to be “decoded.” It’s really important for the Buyer to be present at the inspection so that the inspector can take you around the home and explain what they are speaking about in the written report.

There are several questions you should ask your inspector during the inspection to understand the gravity of the report:

Is it really that bad?
The best home inspectors are pretty unemotional and aren’t alarmist; they are all about facts. Sometimes their straightforwardness makes it hard to understand which issues are big and which are minor. You simply need to ask them if fixing is a big deal or not, and nine times out of ten you will be able to understand from them whether it’s a big issue or not by the way they express themselves.

Who should I have repair that?
I always ask this question because the response is important. If the inspector suggests a repairman or contractor, it could be a big deal. But, if he says you don’t need to hire someone, just to go down to Home Depot and pick a “whatever” to repair it yourself, that eliminates the question of whether it’s a big deal or not, especially if you can repair it yourself at a minimal cost. Even with larger repairs, you should be able to get referrals from your Real Estate Agent or Home Inspectors. Then you can have estimates done in order to negotiate a credit or reduction in the sales price with the Seller before the close of escrow.

If this were your house, would you fix this issue? And if so, when?
Many times the inspector will report that an item is “at the end of its serviceable life.” If this comes up, you should then ask them if it they would replace this item in their own home. You might be surprised to get an answer of, “I wouldn’t do a thing right now. It could break in 5 months or in the next 5 years.” Use the Home Inspector to help you prioritize the big issues and understand what needs to be repaired right away and what doesn’t. Get used to understanding that there IS constant home maintenance and it’s all part of owning a home.

Can You Show Me How This Works?
Most home inspectors are delighted to show or teach a new owner how to work things and where emergency shutoffs are for water, gas, and electricity. This one single thing is such a stress saver in the end and is worth missing a day of work to have someone explain where everything is and how it works.

The best idea is to make sure that if you don’t walk around with the inspector all day during the inspection, to at least have him walk you through everything during the last 20-30 minutes so you can go through everything on the report. It’s best if you have an inspector that takes digital pictures and includes them in the report, so that you can go back and understand what he is talking about when you receive the written report.

If you would like more information on home and pest inspection reports, I would be happy to answer them. To contact me: rsmith@fhallen.com,  415-755-8986 or leave a question in the comments.

Posted by:  Rick Smith

If you have tried qualifying for a loan lately, you probably have noticed a dramatic change in the requirements.

In the period from 2000-2007, prior to the housing crash, you could pretty much go to any lender with a stated income and a credit score as low as 650 – 690, and they would be very willing to give you a loan. That is not the case in today’s market. You should be prepared to show lenders your financial reports, W2’s, and credit scores: they now look at everything under a microscope. You must now have a credit score of 720 or higher to get a loan, and one closer to 770 or higher to get a great interest rate.

You can obtain your credit score from several firms online including www.equifax.com, www.transuniton.com, www.experian.com, and www.myfico.com. Just be aware that checking your credit score will actually take your total score down, but at least you will know where you stand on getting a loan.

Here are several ways that you can actually improve your score in order to get the best interest rates possible.

• Pay on time: No secret here, make sure you make every loan and credit card payment on time. If you have had lapses in paying on time, you may need to wait six months or so to improve your score. Scoring rules weigh the recent time frame more heavily than the past.
• Correct credit mistakes on your report : Your score should not be reduced by reporting mistakes, which are very common.
• Detach yourself from the wrong vendors: Getting a loan from a finance company instead of a bank is not a great way to go as finance companies generally lend money to high risk candidates, so the score of any borrower owing money to a finance company is lower than if the creditor were a bank. The same goes with borrowers who have credit cards with department Stores. Borrowers are penalized relative to what their score would be with a card issued by a bank.
• Reduce your balances on revolving credit cards to less than 50% of their maximum limit: A high utilization ratio is read as a sign of weakness and potential trouble and it reduces your score. Better yet, pay off your credit cards, and any balances within 30 days of a charge to really improve your score.

A reverse way to increase your score if you can’t get your credit cards paid off is to have the maximums raised by the credit card source so you are under the 50% level. In many cases, the credit card issuers are willing to raise the limits at a borrower’s request.

• Minimize the number of inquires: First, don’t apply to any more credit card companies, insurance companies or any company that requires your social security number. Credit scoring systems may not penalize borrowers who shop multiple credit grantors within a short period, but you can’t be sure.

The bottom line to applying for credit is to find your own score that you can deliver to the vendors.

• Pay off collection accounts: This will reduce your score in the short term by converting the account from an older entry with a low weight, to a new one with a higher weight. You can’t get a loan with a collection account on your record, so you must pay it off , the sooner, the better.

Posted by:  Rick Smith

Sometimes there are complications when buying a home, especially if it’s an older home and there is a lot of deferred maintenance that needs to be performed.

For instance, you may love a home, its location, and the area schools, but once you have done your inspections, you find there is a bathroom floor that needs replacing or a shower that leaks, and it’s going to take $10,000 to correct the issues. In most cases the Sellers won’t want to do the work before the close of escrow, so they may want to reduce the selling price by $10,000 and sell the home “as is.” In the long run, if the Buyers have the additional cash to pay for the repairs after the close of escrow, it’s better to buy the home at a lower cost, as close to $100,000 in interest can be saved over the course of 30 years.

However, Buyers who don’t have the extra cash for repairs could ask for a price that doesn’t reflect a reduction in the sales price, but rather a credit of $10,000 at the close of escrow to take care of nonrecurring closing costs. Even though the Buyers pay a higher price, now they don’t have to bring $10,000 to closing and can instead use the money they had reserved for closing costs to make the repairs themselves after the escrow closes.

Generally, a Buyer will be able to get a few estimates and ensure that the work done is of good quality and to their specifications. A word of caution though: Buyers should always check with their lender to see how much is allowed for nonrecurring closing costs. It does no good to collect $20 to $30,000 to find out that only $10,000 can be applied to closing costs. The excess amount will simply have to be given away if it can’t be applied. In that case, a combination of a reduction in price and a credit at the time escrow closes may be the best bet.

Almost any home you buy will not be perfect and will need modifications to satisfy your taste. Perhaps the house needs to have a new backyard developed, or maybe a deck, or repainting in colors you prefer. Most people feel they should recoup investments they make when they sell their home. However, studies show that most remodel projects never pay back 100% of the amount invested. For this reason, always be selective in what projects you invest in and keep the resale value in mind.

Making changes to a home to reflect your taste improves the quality of your lifestyle while living there, and the longer you live in a home, the more valuable the enhancements will be to you.

If you would like further explanation on how all this works, don’t hesitate to call me: 415-755-8919, or email me: . I’ll be happy to give an in-depth explanation.

Posted by:  Rick Smith

Sunshine, festivals and quality time with dad. There are a ton of fun events happening this weekend all around the North Bay. Here’s our round-up of some of the best. Have we missed anything? Let us know in the comments!

Friday, June 17, 2011

Friday Nights on Main / Tiburon / 6 PM – 9 PM
Tiburon’s annual “Ultimate Block Party” kicks off tonight and runs Fridays through September 30. Info

Jazz & Blues by the Bay / Sausalito / 6:30 PM – 8 PM
The weekly summertime event continues tonight with artist Wendy DeWitt; food sponsored by Sausalito Youth Sailing Foundation, serving brats, hot dogs, potato salad, chili, cornbread, and cookies. Info

Film Night in the Park / Old Mill Park, Mill Valley / 8 PM
This local favorite kicked off last week in San Anselmo and tonight the cinema moves to Old Mill Park for a showing of How to Train Your Dragon. Info

Saturday, June 18, 2011

Tiburon Classic Car Show / Shoreline Park, Tiburon / 11 AM – 4 PM
Celebrate the beauty of classic cars against the stunning backdrop of Tiburon’s waterfront. Info

Cotati Jazz Festival / La Plaza Park / 12 PM – 7 PM
The Cotati Jazz Festival takes place every year in La Plaza Park and surrounding clubs and restaurants in downtown Cotati. Best of all – admission is Free. Info

Rodney Strong Annual Summer Concert Series / Rodney Strong Vineyards, Healdsburg / 4 PMThe summer series presents Jazz Attack!: Rick Braun, Gerald Albright, Peter White performing amongst acres of beautiful vineyards on the winery’s intimate concert venue, The Green. Info

Marin Art Festival / Marin Civic Center Lagoon / 10 AM – 6PM
Join over 250 fine artists in a spectacular setting by the Lagoon for two days of art, music, dance, wine, food and stilt walkers. Info

Furb on the Green – Music By the Bay / McNear’s Beach, San Rafael / 12 PM – 7 PMAn afternoon of food, drink, laughter and music by the Bay. Proceeds from the silent auction and food and drink sales will be used to help raise awareness about Huntington’s Disease.  Info

Art Houses of Marin Gala and Auction / Mill Valley Community Center / 5:30 PMGourment sit down dinner, beer and wine tastings, margarita bar, live auction and live music. All to benefit the Ritter Center. Info
 
 
Sunday, June 19, 2011 – Father’s Day 

Marin Art Festival / Marin Civic Center Lagoon / 10 AM – 6PM
Join over 250 fine artists in a spectacular setting by the Lagoon for two days of art, music, dance, wine, food and stilt walkers. Info
 
Hairspray / Cushing Memorial Amphitheatre, Mill Valley / 2 PM
If you haven’t made it to the Mountain Play yet this year, Sunday is your last chance as it’s the final show of Hairspray. Info

Tiburon Music Festival / St. Hilary’s Church, Tiburon / 7:30 PM
This evening’s program pairs Albert Lortzing’s fanciful 1832 sing-spiel “The Life of Mozart” with local composer Vincent Stadlin’s cantata “Anna’s Windows,” a musical tribute to Anna Allsman, the late Marin artist who created the stained glass windows of St. Hilary’s Church. Info

Posted by:  Frank Howard Allen Realtors

Everyone agrees that to sell a home, you need a reputable real estate agent who will: advise you on how to prepare the house for market, hire a professional to take the photographs, and show the home as often as possible. Here are five more things that will help you get your home sold – that may not have occurred to you as a prospective seller.

1. Neighbors & curb appeal- Most homeowners know that they need to make their home as appealing as possible both inside and out. What they also need to understand is the importance of how the neighboring properties look. It’s in your best interest – and theirs – to inform the surrounding neighbors that you are trying to sell so that they might also put their best foot forward in attracting the right buyers. Furthermore, neighbors can help you sell your home because they may have friends or family looking to move into the neighborhood. For these reasons and more, it’s important that the realtor send “Just Listed” postcards to neighboring homes.
2. Sights, smells, and sounds – It’s no surprise that smelly foods or animal odors, or the sound of sirens from a fire station next door, can make selling a home a real challenge. What many don’t realize is that pleasant scents and sounds can truly help seal the sale of a home. A yard with jasmine or lavender can be attractive to even the allergy victims out there, but do refrain from artificial air fresheners as they can be a turn off. Of course, the wonderful aroma of baking bread always seems to do the trick for many homes. Although you may be desensitized to the views your home offers, always pull back the curtains and turn on every light in the house to make your home lighter and brighter. If you are thinking of doing some painting inside, refrain from using dark colors: the lighter and brighter the better as they make rooms appear larger and more appealing.
3. Your dog-  If you have a well-behaved dog, believe it or not, sometimes they can help in making the home feel more inviting to a family, just make sure it is clean and doesn’t smell. Ask your agent if you are not sure. Sometimes even showing pets in the listing photos can be an appealing idea to get the welcome message across.
4. Your happiness- Video and even letters that talk about all the virtues you love about your home, environment and neighbors are terrific to show prospective buyers. Wide open curtains that stream light and accentuate home features create the thought that people that live here seem very happy to live here. Of course, keeping the home in terrific condition, with the gardens well cared for and children’s rooms decorated in a customized fashion always helps, but make sure you don’t over do it. Having 20 posters of Justin Beiber carrying a theme for a child’s room may turn off many prospective buyers. Staging your home for a life well lived is the way to go. It’s not just about paint and carpet.
5. The freeway you think is too close- There is such a thing as having a train or freeway too close as to rattle the walls, but attitudes are changing as gas prices continue to rise. Being close to freeways and bus lines is starting to make a little more sense in cutting commute time. I’ve never heard so much talk about the environment and buyers looking to own homes that allow them to get rid of their cars entirely as I have in recent years. What might have been too close to the freeway before, may now have a new spin as a convenient commute to San Francisco!

These are only a few things to help benefit you as the Seller. If you would like more ways, don’t hesitate to call me at 415-755-8919 or visit my website.

Posted by:  Rick Smith

The North Bay counties of Marin, Napa and Sonoma are known worldwide for their natural beauty. With breathtaking redwood forests, spectacular coastlines, lush open space and gorgeous vineyard valleys, it’s no wonder that residents want to preserve that beauty for future generations. The policies and practices of nearby uber eco-conscious cities San Francisco and Berkeley, and our own conscientious communities like Bolinas, Fairfax, Sebastopol and Guerneville, illustrate how sustainable living is woven into the fabric of our culture and more than just a fad.

Sure, it’s cool to drive a Prius (and chances are you’ll park next to an identical one in the Whole Foods parking lot), but for those who are serious about green living and preserving the environment, the North Bay is ripe with resources. Solar powered pizza parlors, a bounty of organic foods, green contractors and landscape architects, solar hybrid busses, green MBA’s, natural and organic gifts, green career counselors – all these and more allow us in the North Bay to live green from head to toe and from roof to floor.

Green Guides 

SF Green (Green Guide from the SF Chronicle):

Marin Green Guide (sponsored by the Marin County Department of Public Works)

Green Living Tips (sponsored by the County of Marin)

Living Green (Santa Rosa Press Democrat blog) 

Green at Home

Build It Green

Energy Star

Household Emissions Calculator

PG&E ClimateSmart Program

Living Green

Bay Area Green Business Program

Clean Green Napa

EcoBroker

EcoNow Networking Events

Environmental Education Coalition of Napa County

Green Chamber of Commerce

Marin County Sustainability Team

Marin Organic

Marin County Bicycle Coalition

Marin County Parks & Open Space

Napa Valley Sustainability

Recipe for Sustainability

Sonoma County Energy and Sustainability Division

Sonoma County Energy Independence Program

Sustainable Napa County

Sustainable Sonoma County

Walk Score

Green Events

Earth Day Napa County

Green Wine Summit

Harmony Festival

Sustainable Enterprise Conference

West Coast Green Conference

Follow along as the full list unfolds – 100 Reasons Why We Love Where We Live

Follow the reasons on Facebook

Posted by:  Frank Howard Allen Realtors

I get a lot of questions regarding the use of an owner’s home insurance for repairs. I ran across one recent home buyer who had purchased a home that was 10 years old; as the rainy Marin winter has now subsided, it appears that exterior paint is flaking off the house and they have noticed that the deck that was painted, is now rotting and lifting. If the home was staged or prepared for sale, chances are that the owner may have elected to use lower grade materials or didn’t prepare the surfaces properly at the time the paint was applied. That doesn’t mean they were trying to cover up defects, although I’ve seen that too. This point goes back to whoever did the home inspections prior to buying the home. A great home inspector uses a screwdriver to poke around the outside of the house and decks to see if there has been any dry rot, and may be able to tell you if there are issues prior to lifting your contingencies. At this point, prior to releasing contingencies, your buying agent should be able to go back and ask for a credit for repairs at the close of escrow, allowing you to take the money and enlist your own contractor to do the repairs with higher quality materials.

To answer the question of utilizing your home insurance to receive repair money, chances are the insurance company will tell you this is a routine maintenance issue that is not covered. A word of caution though, if the insurance company does cover the cost, please understand this may go on your insurance record and your insurance costs may go up. Furthermore, depending on the amount of the claim, they could cancel your policy. The second thing that might happen, if you try to change to another insurance company, is that you may be a high risk and could have problems getting the insurance, and if you do, it will be at a higher cost. It takes three years for a claim to come off your record, after which you start at ground zero again, and you could switch companies.

An important thing to do as you buy a home is to try to set up a home maintenance fund where you are saving each month to do the necessary repairs and maintenance when needed. The upside is that you will not only have the costs covered, but you will also be choosing top quality materials and thus you may not have to do these same repairs for a very, very long time.

If you have any other questions, don’t hesitate to call me at 415-755-8919.

Posted by:  Rick Smith

C.A.R. reported Marin home sales dropped 10.2% in the month of April and the median price declined 7.4% from a year ago. Median home prices for the month of April were $726,060.

However, statewide, single family homes increased 5% over last year and the median price declined by 4.5% for the total state of California. A big reason for this change is that a year ago both the state and U.S. government were offering tax rebates to entice home buyers. I suspect we will see another decline in May, as people were closing on the homes bought in April last year. June, July, and August should be the best indicator so far this year, as the tax credits were pretty much over within that time frame last year, and the playing field becomes level once again.

Other highlights in the C.A.R. report for April include:

• The unsold inventory index for existing homes was 5.4 months, down from 5.3 months in March, but up compared to 4.9 months of supply in 2010.
• 30-year fixed mortgage rates averaged 4.84%, down from 5.1% in 2010, which is great news for buyers.
• The median number of days it took to sell a home was 53 days in April 2011, compared to 37.4 days in 2010. Another indicator of how well the government programs were helping to stimulate sales last year.

You can read the complete report here.

Each town in Marin has its own set of trends, many of which are very positive. If you would like to know more about how the home sales and prices were in April in any specific town in Marin, give me a call at 415-755-8919, and I’ll be happy to go over them with you.

Posted by:  Rick Smith

Still pondering what to do this Memorial Day weekend? With three free days to frolic, it’s a great chance to explore some local activities you may have yet to experience. Here are our top picks for how to enjoy this long weekend close to home:

1. Watch a musical atop Mt Tam

2. Make friends with a pinniped

3. Spot a Peregrine Falcon

4. Cycle out to West Marin and enjoy a well-deserved sticky bun in Point Reyes

5. Enjoy a brew with a million dollar view

Fort Cronkhite Photo taken by John Weiss

6. Spend time with Snoopy and the Gang

7. Take a scenic drive along the Sonoma Coast

8. Enjoy the company of friends over a round of golf

9. Observe life on the square

10. Spend a day at Fort Cronkhite

11. Head out in search of falls

12. Saddle up

13. Go treasure hunting

14. Feel the wind in your sails

15. Swing like Tarzan, drink like Dionysus

Looking for more ideas? Check out our list of 100 Reasons Why We Love Where We Live.

Posted by:  Frank Howard Allen Realtors

Recently I’ve had buyers frustrated over two common scenarios: 1) The buyers place a bid on a home that has been on the market for a long time without any other offers. However, once they put an offer on the property a ton of others come in right after it and they lose out to a higher bidder. 2) The other frustration has been with short sales, when a short offer is accepted by the seller, and the bank then comes back with a higher counter offer. Buyers get confused because there weren’t any other offers even being considered. You hear every day that it’s a buyer’s market and what great deals there are on short sales and foreclosures – and then this happens.

To address the first frustration, most listing agents with “normal” sales strive to get the highest possible price for their clients’ homes, so it’s common for them to call any past prospects who were interested in the property to let them know there is an offer on the table and they have 24 hours to make their own offer if they want. The psychology behind this is that it creates a frenzy, gets people excited that there is now action on the home, and makes other buyers want to bid on the property as well. The key here is for the buyers’ agent to write the offer with a tight time frame to respond, eliminating the window for other buyers to swoop in. The other thing to do is to have the buyers’ agent keep in close contact with the listing agent, even two or three times a day is not overkill, once the offer is submitted.

In the second situation, on the short sale offer, it’s important to realize that what a seller is willing to accept on a short sale could be totally different than what the bank will accept. If there is a huge shortfall on what is still owed on the mortgage by the seller, the Bank may not want to accept the offer as they think the home is worth more. The bank is ultimately in control of what they will sell the home for since they are going to take a hit, not the seller. The seller just wants to get out of the loan and move on. To deal with this frustration, the buyers’ agent needs to change the approach at formulating the price they are offering. The buyers’ agent needs to get an analysis of similar properties that have sold in the area. They should also look at the list-to-sale price ratio. If homes in the area are selling under or over their asking price, find out what by what percentage and consider putting an offer with the same percentage. Getting a great deal is not necessarily the same as paying at or below asking. It’s critical to rely heavily on the analysis of the comparable sales to drive the price you offer, and then take into consideration the amount of work that will need to be performed on the home, so you are not over paying.

Last of all, it’s not a good deal if you don’t get the home. Prices have rolled back to 2003 levels; you don’t really need to beat up a seller on a price, as they have already been reduced, and whatever a buyer pays with the current historically low interest rates, will be a great deal.

Posted by:  Rick Smith

The question of whether one should sell now or rent is a common one these days.  There really is no way to know whether selling later would ensure a higher sales price, especially in the near future. If you were planning to rent your home for 10 years and then sell, there’s a good chance it will go up in value, but will the value rise next year, or the year after? There is no telling.

At the recent Marin Association of Realtors (MAR) meeting that I attended this week, the forecast was not for home values to rise this year. There is apparently a string of foreclosures waiting in the wings as shadow inventory, and MAR was predicting the last of it will not be flushed out until 2013. As long as the distressed inventory is still hanging around, it is less likely home prices will go up, as the comps in the neighborhood will remain low.

There are strong indications that massive shifts in the mortgage market may happen, with the possible elimination of Fannie Mae and Freddie Mac. If this happens, it may narrow the availability of home ownership and then it will be even more difficult to sell your home.

There is belief that the first areas to recover will be the coastal cities, including the Bay Area, but timing the market accurately has been, and will still continue to be, manipulated by government forces.

The next real question you have to ask yourself is, do you want to be a landlord?

There are many factors to consider here. If you plan on living in another state or city, it will be more difficult as you have to be able to take care of tenant issues. What happens if a pipe breaks, the heating system goes out, or a window is broken? Dealing with these types of things becomes really difficult from a distance unless you pay a property management company. You also have to consider landscaping. What if the tenants don’t water or mow the grass and your lawn looks like a disaster area when you get ready to sell? Tenants don’t have pride of ownership, and they could damage the inside and outside of the home, including the carpeting. When you are ready to sell, you could face some huge costs of deferred maintenance in order to get your house ready again. The potential costs could be more than what your home value has increased over the time you rented, and yet you have had to deal with all the time and trouble of being a landlord.

I think the big incentive for a person to sell right now is the historical low interest rates that buyers are getting.  Why is that a big deal to sell? If home loans are more affordable, there is a larger pool of people that have the ability to buy a home in a higher priced area such as Marin. If the interest rates start creeping up, and fewer and fewer people can qualify for a loan, then not only will the values not rise, but there are fewer people to buy. It may take much longer to sell your home.

It’s actually a great time to buy or sell your home in Marin!

Posted by:  Rick Smith

While more and more people are becoming conscious of the “Green” movement and trying to be more energy-efficient, the best incentive for many to go green is saving money! There was a great article in the San Jose Mercury News with four great ways to go green and save money. To read the full story, click here.

To summarize, here are their four key tips:

Tip One – Get Rid Of The Vampires!

This refers to appliances that suck energy when not in use. The biggest culpits are small appliances like coffee makers, TVs, laptops, cell phone charges, fans, and hairdryers. You can cut back on the vampires by unplugging them after every use or installing a central power strip to easily turn off all of them at one time. The estimated savings has the potential of $200 a year on an annual basis.

Tip Two – Turn Down Your Water Heater

Water heaters can account for between 14-25% of your total energy costs in a given month. The preset of most water heaters from the factory is about 140 degrees, which isn’t necessary for most washing machines and dishwashers. Most clothing items wash well in warm or cold water. Also think about buying a front loader next time, which will cut down on water and drying times.

Tip Three – Change Your Light Bulbs

You are eventually going to have to switch to florescent bulbs when the U.S. phases out incandescent bulbs. According to Energy Star, switching to florescent lights will save the U.S. about $600 million in annual energy costs, and prevents 9 billion pounds of greenhouse gas.

Tip Four – Heating and Cooling

On average, about 43% of your total energy bill each month is for heating and cooling. Buying a “set-back” thermostat is a good investment as it can automatically turn down you heat in the evening while you are in bed, when you go to work in the morning, and when you are not utilizing the home. Also, clean and replace your filter on a monthly basis and change out the heater if it’s been over 10 years since you bought the last one, as they are much more energy-efficient these days. During the heating season, keep your south window blinds open to allow the sun to heat the home, and in the summer, do the opposite; keep your blinds closed to keep the sun from heating the house when it’s sunny and warm outside.

These are just a few easy things you can do around the house to save money and help protect the environment.

Do you know of other good ways to cut down on energy costs? Please share them with me in the comments.

Posted by:  Rick Smith

Forget the humdrum slippers or gift cards. Vow to make this Mother’s Day one that she and the whole family will enjoy and remember by planning a special excursion in the North Bay. With so many places to explore, we’re sure you’ll find something to please any mom. We’ve even done the leg work by scouring our list of 100 Reasons Why We Love Where We Live for our top Mother’s Day picks:

1. Paddle boat on Spring Lake: Reason 4
2. Enjoy fine art inspired by our surroundings – Marin Arts Open Studios is this weekend: Reason 10
3. Build a sandcastle at Doran Beach: Reason 19
4. Take a scenic drive along the Sonoma Coast: Reason 34
5. Discover the magic of the ring: Reason 69
6. Dine like royalty: Reason 92
7. Go “spelunking” in the Wine Country: Reason 41
8. Take flight: Reason 6
9. Climb an island: Reason 90
10. Sink into some mud: Reason 75
11. Wind down in the Valley of the Moon: Reason 96
12. Explore nature by hoof: Reason 73
13. Look for the rainbow at the end of a waterfall: Reason 70
14. Go wine surfing: Reason 93
15. Spend a day at Fort Chronkite: Reason 59

Still need ideas? We’ve got 81 more here.

Moms – how would you most like to be spoiled on Mother’s Day? Tell us in the comments below.

Posted by:  Frank Howard Allen Realtors

There are always a lot of questions about remodeling and trying to increase the value of one’s home.

Most of the time, depending on the work you do, the average amount most people recoup is around 75% of the total cost of the remodel. You may ask why bother, but consider this: first, you will enjoy your home more, and second, when you do get ready to sell, if you haven’t remodeled and updated, you may have a difficult time finding a buyer as competing, remodeled homes may be more attractive and appealing. So in that case, remodeling or making improvements will definitely help sell your home.

I ran across an article recently from the San Francisco Chronicle about increasing the value of your home by installing solar panels.

You can read the full report here.

To summarize, the article talks about the sales of 2,000 homes sold between 2000 to 2009, and what value they recouped by installing solar panels. The data reveals that a typical home generally sells for an additional $17,000 above the cost of a comparable home. That’s in addition to saving on their electricity bills. If there are two comparable homes out there, Buyers are choosing the ones with solar panels, as they understand the long run benefits as fuel and electricity costs continue to climb. I think as people see fuel costs rise, they are more cognizant and recognize that fuel costs are never really going to go down in any significant way, and will most likely continue to climb.

Solar is a way of the future, and making this investment could really be worth a homeowner’s time and money, in both the short run by saving on electricity, and when it comes time to sell.

Posted by:  Rick Smith

There was another positive article in the Marin IJ newspaper last Friday, which really gave home owners a boost in how the Marin housing market is doing. This article can be found here if you would like to view it.

To summarize, there was an 11% increase in home sales in the month of March over last year. And even better news was that the median price of a home in Marin rose 2.4% to $779,000, according to the County Tax Assessor.

This was the first time in six months that both the sales volume and prices have increased at the same time. In the past we have seen the sales volume increase over the previous year, however, the sale prices were at a reduced level because of all the distressed property sales, which in reality, have also driven down the overall home prices.

The median sales price of $779,000 was up +28.2% over the previous month, which shows the number of distressed sales are slowing down and there is an improvement of non-distressed home sales. I know from my open house last weekend that the number of people visiting open homes is way up from what it was prior to March. Sales across the country are improving as well, and there is a lot of pent-up energy out there to buy homes that are driving the increases in sales.

One of the key factors that we have not seen in the last couple of years is the activity in the high-end of the market. 28% of the homes priced from $3 to $5 million were in contract last month, up from only 5% from the previous month. People with money are deciding that now is a good time to buy. Meanwhile, the more affordable range of under $500,000 has 49% of the homes in contract, and the price range of between $500,000 and one million now has 41% in contract. A balanced market is when about 30% are in contract at any given time, and 40-50% signals a seller’s market.

All in all, it’s a great time to buy. We are also starting to see interest rates increase, which will mean the affordability of house payments could force people to rethink what they can afford.

If you are thinking about buying, my advice is to go for it now before interest rates go up any higher!

What is your sentiment about the current spring market?

Posted by:  Rick Smith

When you are compemplating work to be done on your home, remember that many times you must have a permit. Basically a permit is the community’s legal permission to proceed with work done on a project, and your agreement to do the work in compliance with current codes.

Even if you plan on doing the work yourself, you have to have a permit. To get an exact answer as to whether you need a permit, you should first check with the building department. In general, you will need a permit if you expand or stucturally alter your home or any of its wiring, plumbing or mechanical systems.

Not all work requires a permit, such as many redecorating and repair jobs. This includes replacing cabinets, replacing floor coverings, painting and decorating, replacing roofs, replacing windows (if you are not altering the size of the openings), replacing plumbing fixtures (if you are not altering the plumbing), and replacing light fixtures and appliances (if you are not altering or replacing the wiring).

When your work does call for a permit, they are issued through the building department (may also be called “Community Development”) of your town, which you can find online. In Marin, the County website has some good basic information on their Building and Safety page. Generally the cost of the permit is based on the size of the project, the number of inspections required, and a variety of other factors. You should also call or visit the town building department ahead of time to see what you will need for the permit. For example, if it’s a wood stove, you might be required to get the name and model number of the stove.

If you decided to go ahead and do the work without a permit, and get caught, the first thing that will happen is that the building department will request you to stop work until you have obtained the necessary permits. Once you have the permits, the inspector will inspect the current work and if it has been done correctly, the inspector will allow the work to proceed. If there are errors, they will ask that those errors be corrected and then reinspected before proceeding with the work.

Another good reason to obtain permits is that it is your legal responsibility to disclose work that’s been done when selling your home. If you didn’t obtain the proper permits, you could at a minumum lose the sale of your home, and also you could have very costly liability issues. If your home is damaged, and you didn’t obtain the permits, the insurance company may deny coverage for the loss.

The best rule of thumb when is doubt is to simply call the building department and ask!

Posted by:  Rick Smith

The Good news in Marin Real Estate is that February sales increased 4.7% last month. The not-so-good news is that it could have come with a cost to Sellers as the median price fell off by 18.9% from a year ago. The median price of a home dropped to $607,500 from $749,000 a year ago.

A recent article ran in the Marin IJ last week discussing the current state of housing in Marin.

California’s Median price for an existing home also slid 6.3% in February. However, there are many issues that cloud this report as the continuance of distressed properties accounted for 44% of sales last month. This percentage significantly overweights the true values of non-distressed sales in each neighborhood. The other key issue at hand is the weight of affordability ─ Marin is bringing in a greater number of first-time buyers entering the market at lower price points, thus skewing the median home prices in a downward way.

With the increase in sales volume, there is still good reason to believe a full recovery is well on its way to the Marin market. Personally speaking, I have noticed a significant increase in the amount of Sunday Open House traffic versus a year ago, and it appears there may be two years worth of pent-up demand of Buyers wanting to get into their next home. It continues to be a great time to buy a home right now with the terrific interest rates that are out there. The current situation with the unfortunate tragedies in Japan and Libya are actually helping the home buying consumer as people trade stock equities into bonds, forcing the interest rates to come down again from the higher levels in February.

With prices continuing at be at 2002 levels, and interest rates continuing to remain low, the conditions are certainly very favorable for those looking to purchase. For more information about starting your buying process in Marin, give me a call at 415-755-8919 and I’ll be happy to go over opportunities that exist in one of the most beautiful places to live, with all the great amenities of fantastic public schools, a terrific climate, and proximity to San Francisco and the Bay area.

Posted by:  Rick Smith

Elk, gray whales, elephant seals, bobcat, deer. No, we’re not describing wildlife from the latest issue of National Geographic. These fantastic specimens can be found in the best “back yard” anyone could ask for: Point Reyes.

Elk near McClures Beach	A Pt. Reyes Icon

This spectacular area in the northwest corner of Marin offers such an amazing variety of activities and adventures – some of which we’ve mentioned in previous posts. In addition to viewing precious wildlife in its natural habitat, we’re also able to hike, bike or ride horseback on miles of stunning trails, camp on a secluded beach, or paddle a kayak or canoe on enchanting Tomales Bay.

We can go from exploring a light house above the crashing waves to pretending we’re part of a Coast Miwok tribe going about our day in the recreation of a Miwok village; and just a short walk from the village we can experience an earthquake trail and get an up-close view of the notorious San Andreas fault.

Add to the list privileged peeks at local artists’ studios and scenic dairy farms, charming blink-of-an-eye towns, and the possibility to discover a Fungus Fair.

The Pine Cone Diner in Pt. Reyes Station	Limantour Beach

We’re willing to bet that there are few places in the world that can match a day of adventure in Point Reyes.

(All photos credit: Vicens Vila)

Follow along as the full list unfolds – 100 Reasons Why We Love Where We Live

Follow the reasons on Facebook 

Posted by:  Frank Howard Allen Realtors

Recently a Seller received two offers on their home in less than two weeks. The Seller accepted the offer from the Buyer who seemed the most committed to buying the house.

In less than three days, the Buyers backed out. Why?

The Buyers did their Home and Pest inspections, and found considerable termite issues with the decks and underneath the bathroom floors, and it was also revealed that the roof was nearing its life expectancy, so the Buyers decided it was too much to take on in buying the home.

If you have ever seen a Home or Pest inspection, they generally are a 45-60 page report that details every reason why you wouldn’t want to buy a home in California. These reports reveal just about everything wrong with a home, and give recommendations for work to get the house up to the 2011 standards, even if a home was built many years ago. They leave a lot of room for worry, and unless the Buyers really talk through the inspection with the inspectors, the reports can be frightening.

It’s my advice that a Seller should have both the inspections done before going on the market, with a minimum of at least a pest inspection for two reasons. First, if there are major problems, it gives the Seller the option to fix the issues prior to putting the home on the market, or to simply not do the repairs. Second, and more importantly, these inspections become Seller disclosures to potential Buyers, so before the Buyers make an offer, they are fully aware of all the uncovered issues. A lot of Sellers resist having the pre-sale inspections done because they don’t want Buyers to know too much until the Buyers fall in love with the home. Big mistake.

The reason being, is if the Buyers are fully aware of the issues, they knowingly are making an offer based on the knowledge of any issues that were identified. More importantly, now that the owner has disclosed what’s wrong with the home, the Buyer doesn’t have a lot of room for negotiation as they entered the contract knowing the issues. Unless the Buyers’ inspections reveal other damage not noted in the reports, they really can’t ask for additional money for repairs or price reductions, because the issues were revealed at the time they entered the contract. The Buyers made the offer “As Is.”

Take my advice, and unless your home is going into foreclosure or will be a “short sale” and you can’t afford the inspections, you should always try and do them. A Seller will get more qualified Buyers and have a much greater likelihood of the Buyers not asking for huge concessions off the price of the home when they are ready to close.

If you would like to know more, give me a call at 415-755-8919.

Posted by:  Rick Smith

A short sale has potential benefits for everyone: the homeowner, the lenders, the neighbors and the agent.

Before launching into the benefits, please remember: your thoughts, comments and stories are more than welcome … it feels like KPFA pledge time … this is your life and I appreciate having you share in this dialogue which will help you and your community.

The place to begin is with the homeowner …. the most impacted of all the parties in a short sale is the homeowner … often a family with multiple losses … job loss, life-style loss, the loss of the family home, an esteem loss, and on and on … health is an issue. Stress is an issue. Impatience is an issue.

Often the homeowner has been anxiously trying to get a loan modification for three or six months or even a year … or more … this is a stressful, consuming process, a time of frustration, of living with life on hold, no time off, phone calls tugging at your soul … and with this time of pressure it is also a time of self doubt and ugly thoughts and images (Will I be homeless, living under a freeway? Is this the end of my life? Will our marriage fail? Will we lose our community and friends? What about our children, senior year of high school, hormones rushing and homeless? Our grandchildren? Will I ride the rails?) … Frequently these emotional disruptions and physical stresses lead to serious physical, emotional and mental illness … I’ve seen it and it is not pretty …

There are more therapists in Marin than doctors …. and there’s the Academy of Intuition Medicine which has produced some marvelous, state-certified energy healers … Community Action Marin has support groups … the county has mental health resources … and yes, there’s Marin Suicide Prevention to call if you’re hurting or need helpful guidance for someone you know who’s hurting … so if you know someone on the edge, on the ledge or impacted … contact me and let’s get them some support, guidance and expert help.

The upside of a short sale, properly conducted, is that the homeowner has the opportunity to regain momentum in their life … no longer ‘life on hold’ or ‘at affect,’ they can make plans and progress with goals … the low energy language of ‘at affect’ first came to me from Elizabeth Kubler-Ross when we helped create Survivors of Sudden Death … in the 1970s … cold, cut-off, desolate, doomed, forgetful, hardened, humorless, inattentive, indecisive, indifferent, invisible, listless, lost, negative, numb, resigned, spaced out, tired, unfocused, vague, wasted ….

When the load is lifted and shared by professionals, your vocabulary has the space to become filled with alive words of energy … certain, eager, loving, lucid, positive, graceful, thankful, peaceful …

Another benefit is restoring wrecked credit. Whether the sale ends up with credit either fully or partially restored (reported to the credit agencies as paid as agreed, paid as negotiated or paid in full) … or whether the homeowner has to wait 3 years (7 years or more with a bankruptcy or foreclosure) to be eligible for a loan …

So much to say about the homeowner in a short sale … but there are still ten segments in this series, so COMMENT …. and stay tuned.

Comments, please … experiences, yes …. And thank you!

Next installment, Part IV: Why Lenders Cooperate

Part I of XV, Introduction
Part II of XV, I Believe in Laughter
Part III of XV: How Homeowners Benefit

For more information, please visit www.tomverkozen.com.

Posted by:  Tom Verkozen

Quick take … of the 11 sales in my office this week, two jump to mind … one an REO, the other a short sale … both with huge interest …

There was a short sale at 24 Woodland, Fairfax, where Eduardo had five offers … house needed all of its interior redone when I saw it two weeks ago … five offers, three all cash …

And the second memorable sale was 2121 Vineyard, Novato … an REO … this four bedroom home, currently listed by Shad Cloney, sold in ’05 for $1.23M …this time it was priced at $642,500 … indeed, a half price sale …. And it flew out with eighteen offers!

Posted by:  Tom Verkozen

Good News: In San Anselmo, one in three (20 of the 63 single family homes) are in escrow … of the 63, one in four (16) are short sales or REOs (bank owned) … which is the same as last year … a reflection of market stabilization, low inventory and buyers buying with low interest rates but without the homebuyers credit that went away last year.

Sellers: If you’re selling, here’s part of a just completed analysis for a seller of a beautiful three bedroom home in a tremendous, private, sought-after San Anselmo location:

Currently there are 24 three bedroom homes on the market in San Anselmo … average of 79 days on the market … average ask of $775,954 … average square footage of 1771 … but these stats are a bit random, influenced by the following: two of these homes are just under $500,000 the next four are in the $600,000s … but included in the stats are 286 Butterfield at 998 square feet and a court sale at $375,000 … plus two homes over 2000 square feet and $1M … so let’s look further …

In the past six months there have been 23 sales .. with an average square footage of 1546 … days on market 111 … average sales price $682,798 …

In the six months prior to that … (two out of three homes in Marin sell between March and September) … 41 sales … so the number of sales at 41 is reasonable … average square footage 1855 (20% larger than the average for the prior stat, no explanation) … average days on the market 86 … (25% less time to sell) … ah, the glories of Spring! … average sales price $829,092 (a reflection of the increased square footage).

Buyers: If you’re thinking of buying, you have options, but be aware, the market is changing … when buyers are buying, as is the case right now, multiple offers are happening and then … shortly? … interest rates are going up.

Right now the market is stronger than it has been in quite some time … how it will fare with 1) the anticipated budget cuts by the State of CA; 2) improving unemployment numbers; 3) rising interest rates … 4) the next ‘event’ …. who knows …

Posted by:  Tom Verkozen

Everyone seems to be interested in what the future of the housing market will bring, and I just read a recent article from the National Association of REALTORS magazine for one take on the subject. You can read the full article here.

The author, Lawrence Yun, believes that now that the housing market has settled down and lenders are really looking closely at buyers’ qualifications, that we will hold with the population growth, and that the percentage of home ownership, which was around 69% of the population during the boom years, will settle down and maintain itself to around what it was last year at 66% of the total U.S. population. It’s still the short term economic pressure we have to worry about, but things are starting to brighten up.

Manufacturing output has been rising, and the stock market has also been on a nice upswing. Companies are flush with cash, consumer confidence has rebounded from low levels, and jobs are finally starting to be created as recent unemployment percentages have declined. We can see some release of pent up demand that’s been building up for the last three years. Rising rental costs will also likely tip more renters into home ownership.

Putting these and other factors together, existing home sales are projected to rise 8% to nearly 5.3 million units nationwide this year. In general the Bay Area, and particularly Marin, has out paced the rest of the nation when home sales start to rise, so I would bet that we are sitting in a great place to buy or sell right now. Interest rates have been inching up, and are expected to climb by the end of the year, so anyone wanting to buy should really look around now, as it could mean hundreds of thousands in savings over the course of a 30-year loan. 

Do you believe now is a good time to buy? Please let me know in the comments.

If you would like more information, please don’t hesitate to call me at 415-755-8919.

Posted by:  Rick Smith

The Marin Independent Journal headline on Monday was ‘Marin household income dips,’ … this news was offset by this week’s Jobs Report … reporting 192,000 jobs created in February … a gain of 222,000 jobs in the private sector … (downside: this was offset by job losses in the public sector) … unemployment lines were a bit shorter when the unemployment rate fell to 8.9% … under 9%!!!! … the best it has been in two years!

The accompanying quote from Robert Eyler of the Marin Economic Forum is that Marin is not immune to economics. Indeed.

Background: The rate quoted in the Jobs Report is called the Unemployment Rate, which comes from calls made to households … and while perhaps more accurate than the Current Employment Statistics (or Business Survey), derived from calls made to business, which is used to determine the headline jobs numbers … statistics are statistics and these numbers are always subject to revision.

For the real estate housing market and home loan mortgage rates … the improving trend for the job market is good news, meaning there is more buying on the horizon … People tend to avoid purchases when they’re concerned about their job stability or prospects, and tend to buy when they see everyone else buying. So, take a stab and go buy a home … one in three is a short sale or bank-owned property … and those are frequently bargains.

In the big picture … the Fed’s three goals for the second quarter are improve the economy by boosting stock prices, lowering unemployment, and creating inflation .. three goals that may well cause home loan rates to rise … so here’s the buy now … home loan rates are great and will probably rise …

Back to Marin household income … the dip … to $108,465 was down from $118,704 in 2008 and $123,463 in the boom year of 2007.

What has this to do with shopping and bargain hunting? Your guess is as good as mine, but when you know of six people buying property you’re probably too late … so now is a good time to go shopping … rates are low and will be moving up.

Posted by:  Tom Verkozen

Short sales are rugged … while they’re improving, becoming more fully understood and more often successful … I’d be remiss if I didn’t mention the role of laughter …

In his landmark book Deep Survival, Who Lives, Who Dies and Why … Laurence Gonzales unveils that in stressful situations where physical survival is the issue, people who have survived report that the pressure lifts, time stretches into slow motion and better decisions are made with laughter.

This short sales in Marin County series will be interesting and fun … if you respond … offering your experience and/or asking questions …

Last weekend, at the warm, wonderful home of Judith and Anthony Stern, the theme was laughter in literature. Yes, one of my now-traveling ‘Lit Celebrations’ … a white elephant-style … pick a number … exchange of grand books rather than gifts … this evening the theme was ‘laughter and mirth’ books …

I came home with Way to Go by Alan Spence … I devoured it … deep, dark, twisted and hilarious … I brought Jane Gardam’s Old Filth … laugh out loud funny) … Mike Snyder, a naval scurvy dog and history buff, brought First Salute … a book he contributed to that I’ve heard is marvelous … I had intended to bring Cooking With Fenet Branca … outrageous … but it went out on loan from Finola FitzClarence, to whom I’d lent it, before being returned to me … oh well, the renown poet Alan Anderson will give it back to me … trustworthy, that lad) … Natalie Shapiro knew almost all of the books …

We missed a few regulars, Bea, who will return … Michael, our local booksmith and Sherri Whyte, therapist to the stars … next time?

To the party someone brought Infidels, an amazing portrait of the Muslim world that reminded me of missing Terry Pearce, who’d have loved it if he hasn’t yet read it and Peter Sarkissian, who knows the Muslim world and his charming wife Toni Esposti (Old Republic Exchange … ahh best real estate exchanger in the world) …

A marvelous, laughter-filled time was had by all! Yes, laughter is a book theme to repeat …. laughter!

Back to real estate … within three miles of my San Rafael office there are 117 homes being sold by banks or short sales …

Another view: A home with foreclosure history just came on the market a stone’s throw from my home… you’re reading about it because when it last sold it brought the Zillow pricing down on my home …

75 Kensington, San Anselmo … this home sold in ’06 for $1,080,000 … it was a dark, dysfunctional six bedroom that was sold by the bank in ’09 as a foreclosure for $655,000 … now, after being taken down to studs and rebuilt as a stunning four bedroom, 2775 square foot beauty, it is on the market for $1,835,000.

Comments, please … experiences, yes …. And thank you!

Next installment, Part III, How Homeowners Benefit.

Part I of XV, Introduction
Part II of XV, I Believe in Laughter
Part III of XV: How Homeowners Benefit

For more information, please visit www.tomverkozen.com.

Posted by:  Tom Verkozen

Sometimes the solution to a distressed property is to get a loan modification, sometimes a short sale, sometimes accepting a foreclosure. A short sale, which we’ll explore in depth in the next few weeks, is one of several ways in which a property owner and a lender are able to resolve their difficulties with a property on which there is more money owing than the property will net the lenders in a sale.

This short sales series will be interesting and fun … if you respond … offering your experience and/or asking questions … what’s on your mind?

When the housing bubble first burst, short sales were like walking into a kaleidoscope … disorienting … Now, while technically difficult, short sales are becoming more rational (as opposed to easy or uncomplicated, which they are not). As lenders and agents have become more adept at producing results, short sales are moving faster and with less stress. I tell my sellers that 80% of the work is done up front.

Example one: This morning I met with a homeowner who, when we met with a CPA to explore options, was told (as I suspected) that it would be to his benefit to ride out the foreclosure (unless the stress level got too high) and enjoy the no rent situation. The short sale is not always the thing to do.

Example two: A client just left my office after our initial meeting. She owns and lives in a home worth right around $200,000 … the amount which she paid for it in 1999. In 2007, when she last refinanced it, her home was appraised for nearly $500,000. With a loss of income, a home that is over-encumbered and a notice of default, her home MAY be a good candidate for a short sale. Most agents would think so, I’m not so certain. Time and paperwork will tell. In the uncertainty is found the beauty of understanding the short sale … understanding who benefits (hopefully the owner, the buyer, the lender and the agent) ….

Now I’ll introduce you to a property that the lenders wish they’d been able to short sale … which will help you understand why the lenders benefit in avoiding foreclosure …. and OF COURSE … if you or someone you know wants a great grand home on lots of land … this Jeff Sterley listing could be the Bargain of the Century … even better than 10 Red Cedar!

For more pictures and information go to 1200CabroRidge.com …

This is a brand-new home that has been off and on the market for over two years. Starting price was near $4M. It was in escrow about a year and a half ago for $3.4M. The deal fell through and the property recently went to foreclosure.

The REO/lender now owns the property and wants to sell it quickly – asking price of $1.8M.

This is a Mediterranean home on 9 acres. Over 5,200 square feet on the entry-level … replete with dramatic high ceilings and a 300° view … There are approximately 2,700 square feet on the pool/deck level that has been roughed in … some work and fees remain to receive a certificate of occupancy … and the motivated lender wants to sell now!

Next installments … Part II, Laugher … and Part III, Why short sale?

Part II of XV, I Believe in Laughter
Part III of XV: How Homeowners Benefit

Questions, comments, stories …. all welcome.

For more information, please visit www.tomverkozen.com.

Posted by:  Tom Verkozen

Although the stock market seems to be in a Bull Market once again, many investors are still afraid to put their money back into equities for fear of what happened 2 1/2 years ago when everything crashed and people lost 30-40% of their wealth. This poses the question, “Should I pay off my home instead of investing in the market?”

A recent article at CNNMoney.com sheds light on what a person should do with any cash today. You can find the full article here.

The idea of cutting down your debt is a good sound strategy, but is a home loan the right place to cut? The biggest thing to think about is that the mortgage interest you are paying is tax deductible and if history continues to repeat itself, then it may be wiser to put money into the stock market.

Likewise, if you plan to trade up or downsize, it doesn’t make sense to put extra money into your mortgage: you don’t want to put more money in your home and not be able to sell it, if the market continues to be shaky.

What should be paid off is any credit card debt you may have, and if you aren’t maxing out your contributions to 401K and IRA accounts, you should definitely be putting money there as well. If you have already done that, and you are near retirement, then it would make sense before paying off your home to make sure you have enough cash left for unexpected medical or financial emergencies. You should definitely not pull money out of your IRA to pay off your home loan, since the IRA will be taxed at ordinary income tax rates.

If you are in the 28% tax bracket and you have a 5% home loan, the effective rate of return in paying off a home mortgage loan is 3.6%. By comparison, a 50/50 mix of stocks and bonds has historically returned an average of 8.2% in the long term, although today it might be wiser to anticipate around a 6% return.

Just some food for thought. You need to decide what’s best for any additional cash you may be saving.

If you have any questions, don’t hesitate to call me at 415-755-8919

Posted by:  Rick Smith

A glorious neo-modern (???) five bedroom home, one of the finest homes in San Marin …. 26 San Benito: www.26sanbenito.com … an organic sale, this one …. (organic in real estate meaning that it is NOT a bank influenced short sale or repossession (REO)) … is now available. Call and J we’ll go see! (Quickly, two agents have already asked for the disclosures).

26 San Benito is a beautiful home that received rave reviews from the delightful Novato brokers on tour Wednesday … and is now on the market … an organic sale with lots and lots of distressed property competing with it ….

So about the market after a false spring … renewed cold weather, ahhhh, I love it …. and for all of you end-of-the-season fans, the Giants with Tim Lincecum on the mound played scrappy ball to win 7-6 in their spring training opener.

Back to real estate … with 832 single family homes on the market in Marin … there are 279 of them in escrow … versus the distressed property sales … 263 of the 832 single family homes on the market are short sales or REOs … and of those 263 homes more than half – 137 – are in escrow …. 

Cautionary note: ‘in escrow’ isn’t quite the same as ‘sold’ … because of dealing with real people in distressful situations AND dealing with the unreal ….. the banks, the overloaded negotiators who rightfully only approve a perfect package, and investors, attorneys, courts, real estate agents who leave doors open (what’s that about?), deadlines, masses of paperwork, buyers who are looking for (and getting) a deal and always shopping, rising interest rates, multiple offers … short sales and REOs are a specialty market, and because of the specialized nature of the business I’ve teamed up with Michele Barton in working with people with Financial Stress Disorder (my term of art, thank you)… 

Note … 26 San Benito is NOT a short sale …. simply a beautiful home in a great location at a price that makes it competitive with all of those distressed properties … come see it … you’ll love living there!

Posted by:  Tom Verkozen