Guide Me Home 2 Marin County - Home

Spruce Up Your House To Sell

2012-05-16T06:19:41Z

7 Tips to Spruce Up Your House To Sell Quickly

I have watched first hand as Buyers find a great house that is in generally good shape, and literally talk themselves out of the sale after they notice one rickety gate, which snowballs into a nitpicky list of tiny fixes the seller had left undone. Whether you are planning on selling your house tomorrow or next year, here is a short list of maintenance items you should put on your spring to-do list.

1. Banish chips, scuffs, and scratches by adding a fresh coat of paint

This is one of the most inexpensive things you can do to spruce up your house, as these tiny blemishes create a shabby appearance on a home that may be in otherwise good shape, causing the buyer to think the home has been neglected.

2. Brighten and polish all trims

If you put two identical homes together and one has all the tricked out trims, including exterior shutters, eves, door knockers, kick plates and other exterior hardware, people will automatically rate the house with the beautiful trims much higher on a pride-of-ownership scale than the other. If you can add attractive trims or freshen up the ones you have, you can improve the perceived value of the home.

3. Noisy or broken HVAC systems

Maintaining your air conditioning and heating system is not that expensive, but buyers think it is. In fact, your furnace and AC systems are the types of household machinery that intimidate fist-time buyers. If you hold an open house in the winter and the heating system doesn't work or the air conditioning system isn't working in the middle of summer when it's hot outside, the buyers might perceive that it is a more serious red flag than it really is. On the other hand, letting buyers know that your heating and air conditioning system have been upgraded or maintained allows buyers to breathe a sigh of relief knowing they won't have to spring money on short term repair bills.

4. Mend your fences, gates, and screens

These items may not jump out at us in our own home, and it's easy to rationalize your way out of dealing with them. However, screens with holes in them and gates which won't budge or hang properly are some of the key things that catch buyers' attention and make them want to look and see if there are additional flaws. Additionally, anything to do with fences can cause buyers to envision possible future neighbor disputes over bills.

5. Doors, cupboards, and drawers

One creaky door doesn't usually kill a sale, but keep in mind that in some homes, these are the only functioning systems that house-hunting visitors will almost certainly use doing the course of a viewing. Make sure the entryway, interior closets, and cupboards are in good cosmetic shape and that they work well and don't stick easily. It's not that the buyers will get excited if they work smoothly, it's just more of a concern when they don't work properly.

6. Have everything cleaned and washed

Even the most immaculate of housekeepers can realize the massive refresh to the look, feel, and smell of their homes after it has been professionally cleaned. Springtime is a great time to have your driveways power-washed, to clean your windows and screens, as well as to have your carpets, rugs and window coverings cleaned. If you are on a tight budget, you might find vendors that have spring cleaning deals that offer many services for a package price.

7. Shred it!

If you have clutter from boxes and old file cabinets full of paperwork, it might be a good time to go through your items and shred the things you don't absolutely need. Think of it this way, you will have to do it anyway when you move out, so you may as well take care of it now to reduce the clutter around your home and open up more visual space.

These are just a few tips; if you want to learn more, contact me at rsmith@fhallen.com or give me a call at 415-755-8919, and I'll be happy to help!

Posted by: Rick Smith

Buying A Home Won't Get Much Cheaper

2012-05-08T16:42:17Z

Home buying is in full swing, and sales are pretty brisk in Marin right now: currently 46% of listed homes are in escrow and Marin is experiencing double digit sales growth over last year. The housing market has really come back and there is currently a shortage of inventory.

So if you’ve been on the fence for the last four years trying to decide if now is the time, you'll be interested in a great article that was posted by CNNMoney talking about this very subject. If you want to read the full story it can be found here.

The article sites the fact that the average home price is down 34% nationally and mortgage rates have remained at historical low levels, but they aren't going to last much longer. Chief economist Stuart Hoffman believes home prices will flatten out by third quarter and start climbing again next year. There are a number of factors that help point in that direction, including the decline of the number of foreclosures and continued job growth stimulating the economy. Some economists, like Trulia's Jed Kolko, expect home prices to pick up even more quickly.

Marin is already experiencing a rapid growth in prices and some city’s home prices are growing faster than others. Total overall single-family home prices are up 1.7% S-T-D, but prices in Tiburon are up 11.3%, Corte Madera up 13.1%, Fairfax 2.1%, and San Anselmo up 7.9%. Total unit sales season-to-date are up 19.3% in Marin County. The big turnaround is happening now.

Foreclosures have decreased 15% over last year, and investors are snapping up REO's faster than the regular home consumer can get to them, either to upgrade them to become rental properties or to sell them at higher than average prices. Home buying in many cases is cheaper than renting as the market is experiencing only a 2% un-occupancy rate. I have had many people wanting to rent homes only to gasp at the rental prices. To get a decent-sized house of just 1,400 square feet in Southern Marin, rents start around $3,500 a month and only go up from there. I recently met a couple who is having to pay $7,000 a month for a 3,000 square foot home in Kentfield. Why not just buy a home?

I think people are finally realizing they'd better get into a home quickly while prices and mortgage rates are low because they are really throwing their money away by paying the high rental prices in Marin.

If you would like more information, email me at rsmith@fhallen.com or call me at 415-755-8919, and I'll be happy to help!

Posted by: Rick Smith

Great Reasons To Go Green At Home

2012-04-24T17:24:54Z

As we just celebrated Earth Day this past weekend, I thought how important it is that we try to watch our energy consumption and carbon footprint around the home, whether it be by recycling or re-using a towel or glass again, rather than automatically washing it. There are actually some real perks in making your home more green.

Save Money Now

When it comes to the economics of trying to project the return on investment in upgrading your home, sometimes the numbers can look a little grim, and most real estate agents will tell owners to perform the upgrades that they can afford and enjoy in the time they have to live in the home. For example, your utility bills are one of the highest ongoing costs you have each year, and it looks like there is no slowing down on the rise of energy costs and utility increases. By making a number of green improvements, you can bring those costs down as much as 20-30%. If you do the math, and assume that most households have an average bill of $2000 in energy-related utilities a year, you could save between $400-$600 per year. If you install a tankless water heater, insulate your pipes and walls, and do something as simple as adding weather stripping to your doors and windows, you will begin to save money right away on energy costs. You could then take that money you have saved to invest in a college education fund for your children, or put it in a retirement account.

Sell Your Home Faster

Green homes simply sell faster than comparable homes that don't have the same green features. Today's home buyers want to save money and are willing to prioritize homes that allow them to do this. This data is certainly true for homes with solar energy systems. The U.S. Department of Energy just released a report that solar homes sell twice as fast as a home without the solar investment. If your home isn't on the market right now, you may not worry about selling your home quickly; but when you do get ready to sell, you will most likely want it to be a quick process if your family and financial plans are hanging in the balance.

Boost Your Net Worth

Not only do buyers have a preference for green homes, they are willing to pay more for them. An appraisal journal recently published data that says for every $1 that green home improvements decreased the property's annual energy bill, the home value increased by $10-$25. These numbers translate to an increase of $8,000 to $25,000 for a "greened-up" 3,000 square foot home. The same goes for solar homes, as having a solar heating system can add around $17,000 to a home's value.

Look Better And Live Longer

Part of the element of going green includes planting a garden and implementing practices like taking walks or using public transportation to increase your quality of life, whether it's to lose weight or improve the quality of air that you breathe. It can also mean shifting your diet a little by reducing the amount of red meat you eat and ingesting more of a plant-based diet, not necessarily to the extreme of being vegan, but having an eating pattern dominated by fresh or minimally processed food.

Live More Comfortably

If you have a drafty home, or hear a lot of noise outside when you are sleeping, or want to make sure you have plenty of hot water when you are washing clothes or the family is home taking a lot of baths, going green will make you more comfortable. Just installing weather-stripping throughout the home will cut down on cold drafts. Installing double pane windows will reduce your energy costs and cut the noise level down significantly for a better night's rest. Installing a tankless water heater will save you energy and ensure you have plenty of hot water for your entire family's use.

These are a few great reasons for going green, and it makes perfect sense whether you are trying to sell or not.

If you would like to know more about going green, please don't hesitate to contact me at 415-755-8919 or email me at rsmith@ fhallen.com.

Posted by: Rick Smith

Questions Answered for Inquiring Minds

2012-04-16T18:10:37Z

Being in the Real Estate profession I always get asked a lot of questions about the state of the market, buying vs. renting, the importance of location, making a low-ball offer, etc. I thought I would answer some of my most frequently asked questions to help clear up some of the blurry what-ifs about buying and selling a home.

What about Location?

Yes, it could be one of the single most important factors in the price you pay (or ask) for a home. Location effects the price of a home in many ways. The price is impacted by which school districts are nearby, as some schools have better reputations than others. The prices is also effected by the proximity to San Francisco. The further you go north or west, the prices will become less expensive. However, do you really want to spend an extra half hour in your car, as you are missing the benefits of enjoying your home while stuck in traffic? Additionally, home prices will be lower as you get closer to a noisy freeway or train tracks. In short, if you have two homes with the same similar characteristics, then location will drive the price in the end as many people will pay a little more to enjoy the benefits of where they live.

Listing Your Home High in Order to Come Down in Price

Sellers, we are still currently in a buyers’ market and competition when selling a home is steep. Even if you don't care about selling your home right away, it's a detriment to list your home over market price. After a home has been on the market for 60 days (and even after 30 days), people looking for homes will either forget about the home, or wonder what's wrong with it and why it hasn’t sold yet. The Internet has made most buyers extremely savvy in buying homes today, and trust me buyers are on the internet and visiting open houses in mass. They know when a home is over-priced and when it is not, and they will not jump on buying it if you are over the real value of your home. You are much better off by getting a good listing agent to help you price the home at a fair price who will then offer the best marketing and tools to sell your home at fair market value. Once you start price cutting, the buyers want to know why it didn't sell in the first place.

Always Offer 10% Under the List Price

Buyers, there is always a strategy in your offering price. If the home has just come on the market, chances are the owner will not want to accept anything lower than the list price during the first week, so you probably are wasting time offering a low-ball offer. If the home has been on the market for 3 or 4 months and has not received any prior offers, you may have a chance at it, but it's important to ask prior to making an offer whether or not there have been any other offers, and get a range of what the owner didn't accept. Every home has a situation where if it’s in a great location, good shape, and you have done your homework to ensure it's a good value, then you should offer the asking price, or as close to the list price as possible, and you have a better chance of getting it. What you really have to ask yourself is if it is really worth walking away for a few thousand dollars, and will you have remorse if you lose the home to someone else because they offered the full price? Contact your lender to see what the difference is in payments. I think you will find that a few thousand dollars spread over a 30 year loan is probably just a few dollars more each month, and sometimes not worth losing a great home that you are in love with.

For Sale By Owner

A lot of people think they can save a lot of money by selling their own home and not paying the commission involved. The question is, do you really want to go through all this anguish? Do you really want to receive phone calls all hours of the day or night, and try to figure out whether the buyer is even qualified to own your home? Do you want unqualified people walking though your home? If you are working, do you want to take time off to show them the home without notice. Will you miss all the marketing that goes into your home from having staged, on the Internet, having professional pictures taken, being listed in the newspaper or email blasts? What about closing; are you prepared to have an attorney help you with drawing up the paperwork and assisting you with disclosures, conditions of the sale, finding a good title company, helping you, and the being there at the close of escrow? You are much better off having a qualified listing agent to help you through all of these steps, and the legalities that involved with each step. In the days of still having law suits, you don't want to be the one who gets stung, just for not knowing the legal ins and outs of selling a home, and believe me there are a lot of them.

These are just a few things people ask all the time, and I would be happy to answer anything else inquiring minds would like to know. Just give me a call at 415-755-8919 or email me at rsmith@ fhallen.com, and I'll be happy to help!

Posted by: Rick Smith

Important Real Estate Dates for Buyers and Sellers

2012-04-06T18:06:19Z

Deadlines for certain real estate dates can sneak up on a lot of people and can be stressful if they become a surprise. Here are three important dates to have on your calendar, as well as three time periods to watch when buying or selling a home.

April 1, 2012: Home Owners Property Tax Due

This is a timely topic as it happened to be last Sunday. The good news is if you haven't mailed your April payment in, you still have time this week to do it without out a penalty. April 1 property taxes are not in default if the County receives your payment by April 10. On the reverse side, if you bought your home between 2002 -2007, your property value probably is much lower that it was when you bought the property, and you should consider protesting the value of the home to lower your property taxes. This is too late for this year, but you should definitely pursue it for next years valuation, as it could save you hundreds or possibly thousands in taxes given property values have declined anywhere from 30-40% since 2008.

December 31, 2012: Expiration of Mortgage Debt Forgiveness Act

This is important to homeowners who have lost their home or are contemplating a short sale this year. Currently if you lose your home to a short sale or foreclosure, the government forgives you for the amount of the cancelled debt for income tax purposes. After this date, you could face a double whammy of having to pay thousands of dollars for the privilege of doing so in the form of income taxes. The president has proposed extending this deadline to 2014, but that hasn't been approved. If you think you may lose your home because of unfortunate circumstances, you probably ought to consider the possibility of a short sale, to get the home in contract and ensure it closes prior to December 31 of this year.

December 31, every year Deadline to close escrow, in order to get credit for interest and taxes

If you are considering buying a home this year, you should try to be in contract roughly 60 days prior to the end of the year, so that you can close prior to December 31 and can claim any prepaid interest, points, origination fees and taxes on your income taxes for 2012. If you close a day later, you won't lose the deduction entirely, as everything will then roll into 2013.

Other important things to know regarding deadlines:

Offer and Response Deadlines

The phrase to describe “Offer and Response deadlines” is "Time is of the essence." It is really critical that once you get ready to make an offer that you adhere to any offer and response deadlines. Please make sure you understand these deadlines, and if you have a good real estate agent, they will probably set up a timeline for you so that you will adhere to the conditions. Currently there is a shortage of great properties in Marin, and there are lots of Buyers out there waiting to purchase a home. You would hate to have your offer not accepted because you waited too long and gave another party the chance to make a better offer. Currently this spring, there have been many new, great properties that have come on the market and they have had multiple offers made on them because of the shortage of great inventory. This wasn't happening too much prior to this spring, as there was plenty of inventory on the market and there were fewer Buyers. This is not true in 2012. There seems to be a pent up desire to own a home that has been building for the last few years as Buyers were hesitant to buy a home and waiting for the market to hit bottom. The bottom of the market was last spring and since then things have really turned around.

Contingency Period Expires

Most Buyers these days negotiate some sort of contingency as a way to get out of a deal if there is either something wrong with the home after doing inspections, they can't get the property to appraise, or they can't get a loan. The contingency period is the timeline the buyer has to back out on a loan and not lose their deposit money or incurring liability. The most important thing is to work quickly on doing your inspections and work with your lender to get final approval on a loan. If you wait too long to get inspections done, and discover issues with the home where you need to either get additional estimates or additional inspections, you run the chance of running over the deadline. If you find this out at the end of the contingency, you could risk losing the home to another buyer, unless you ask for an extension. I have found most Sellers are okay with extensions if there has been good will in the transaction, but some sellers are hard nosed at the deadlines and would rather put the house back on the market , if they feel they can sell it quickly and not bend on giving the buyer concessions. Whatever the case, just make sure you work quickly on getting paperwork back and forth to your lender, and have your inspections done well in advance of the contingency dates.

Rate Lock Expiration

Mortgage approval letters are issued with details of the loan amounts, interest rate, and other terms such as how long the rate is locked in and when the terms expire. It's important that you understand the deadlines. It's important that you understand that not only do you have to find the right home, you have to get into contract on it, and then have inspections done, appraisals done, and have underwriting done, all of which takes a long time. If you don't have everything completed on time, your rate lock could expire and you may have to pay for an extension.

This may not have been an issue in the last couple of years as interest rates were declining, and you possibly could even get a better rate. The lowest rates happened this past fall, and we are currently seeing increases in interest rates again. Don't get me wrong, interest rates are still excellent, but for some people who qualified for a loan at a super low rate, they may not qualify if the higher interest rates puts them in a higher debt to loan ratio. Also, just remember even a quarter of a point can cost you thousands over the course of a thirty year loan, and that's the real reason to adhere to these guidelines.

These are some of the important dates to remember either as a homeowner or someone looking to buy or sell a home. If you would like more information, as always I would be happy to help, just give me a call at 415-755-8919 or email me at rsmith@fhallen.com.

Posted by: Rick Smith

Renovations That Will Pay Off

2012-03-26T06:14:14Z

When getting ready to sell your house, you need to ask yourself, "What can I do to make my home more attractive without spending an arm and a leg?" Here are 10 ideas that won't cost a ton of money and will be well worthwhile.

Decorate Your Doors

Swap out old knobs, hinges, and cabinet hardware with finished metal pulls and handles. You'll spend around $3-$5 a piece at most hardware stores and your guests will take notice.

Molding

Adding molding on doors, ceilings, walls and windows brings a third dimension to your rooms, making them look larger and more lavish. For less than $100, you can buy panel molding, rent a miter box saw, and create a new dimensional appearance to your home. Depending on how far you want to go, it will cost you about $150-$300 per room, but the quality three-dimensional effect will make your home stand out against its competition.

Refresh Your Tiles

Bathroom renovations can be very costly and sometimes run into the tens of thousands, but re-grouting your tiles is a fast, easy and inexpensive alternative. Scrape out the old grout first, then pick out a fresh color to breathe new life into the decor. This is only about a $10 cost.

Paint A Wall

Re-painting is an easy way to upgrade a room, but if you really want to make it pop, only paint one wall. Take the main wall that people will see most often and put your favorite color on it to contrast with the furnishings in the room. The cost will only be about $25 per room (if you change colors) and your eyes will immediately jump to it: it's like putting a giant mural on your wall. If you are repainting a dark wall, you'll need to add primer and three coats to make sure the darker base color doesn't show through.

Lighten Up

Changing light fixtures is an easy, inexpensive upgrade that adds elegance. Many hardware stores sell light fixtures for less than $100; just make sure you have turned the light switches and breakers off first before attempting to work with the wires. Also, you may want to take a picture first of the wiring, so that you remember which wire goes where.

Light Switch Swap

Replacing light switches with dimmers allows you to change the mood of the room. Changing the light level will also visually change the shade of the paint, something you can't do with simple on and off switches.

Refinish Your Floors

Dents, dings, scratches, and pet accidents are par for the course, but in just two or three days you can erase them all. A 110-volt sander, sand paper, and wood stain will do the trick, and two coats of satin finish, water-based polyurethane will help protect the floor from further damage. Most people will paint walls, but a nice job on your floors will give your house a whole new look.

Fence Off Your Yard

If your fence is falling apart, a new 8-foot fence is an aesthetically pleasing way of saying this is my yard and not yours. It's an unbroken rule to give the nicer looking side to your neighbor, so be sure to abide. Ridding your yard of an old, broken or sagging fence will give your yard much better appeal to a prospective buyer.

Illuminate Your Lawn

All it takes is a couple of lights to enhance your home's appeal night or day. Low voltage bulbs will do the trick and they will last for five or more years. Scattering several small outdoor light fixtures under shrubs, and placing up lights under tall trees will really make a difference at night.

Paint That Paneling

There's not much worse than a dreary, dark paneled room. Rather than removing the paneling all together, choose a light color and give it a few coats to really brighten things up. You will be amazed at the difference. Then add a few lights and great pictures and you have totally transformed the room to a new, cheerful part of your home.

These are just a few ideas of how you can inexpensively upgrade your home to make it stand out against the competition when it is time to sell. In fact, these ideas are also useful if you're just looking to refresh a space without spending a lot of money.

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

Posted by: Rick Smith

Misconceptions Of A Short Sale

2012-03-21T20:16:26Z

As there continue to be quite a few Short Sales in Real Estate, there also seem to be quite a few misconceptions about what the issues are. In this post I address some of these misconceptions - many of which I heard while talking with puzzled Sellers and Buyers.

Common Misconceptions About Short Sales

Homeowners must fall behind in their mortgage payments in order to qualify. It probably was true prior to 2012 but not now. Now the factors that come into play are: Is there an existing financial hardship, such as the Adjustable Rate Mortgage increasing the monthly financial payments? Has there been a loss of a job or income? Are there current health or medical issues that have arisen? Has there been an extraordinary loss in home value, which could be considered a hardship? The bottom line is, if you don't want to have a major credit report issue, then you shouldn't miss a payment if you don't have to.

Banks would rather foreclose on a property than approve a short sale. Absolutely not. Banks would prefer NOT to foreclose on a property due to a short sale, as it will probably cost the bank an additional $50- $70K . Banks lose much less in a short sale than they do on a foreclosure.

Sellers have to be pre-approved by their Bank in order to do a Short Sale. Absolutely not true. Most lenders will consider a short sale offer: the main thing to remember is each Bank works just a little differently from the other, and the Seller must understand and follow the process closely.

Short Sales take months and months to close. This depends, but if you have a good listing agent who has experience in this area, it could go rather quickly. Again, certain issues may slow down the process, and no two transactions are the same; just having an agent who knows what to do when there is a stumbling block could speed up the process.

Damage to the Sellers' credit in doing a short sale is the same as if being foreclosed upon. Totally untrue: you are much better doing a Short Sale as they lead to a faster recovery on your credit score. If a Seller has not missed a mortgage payment, they may be able to purchase another home almost immediately after closing a short sale transaction. If a Seller did miss payments, then some with otherwise good credit may be able to purchase a government-backed Fanny Mae mortgage around 24 months after the short sale.

After a Short Sale, a homeowner will receive a 1099 form and be forced to declare his sale as income. The homeowner may receive a 1099 form due to the 2007 Mortgage Forgiveness Relief Act , but the homeowner may not owe any taxes as a result of doing a short sale. However, this act will expire at the end of 2012.

A lender can still sue the homeowner after the close of a short sale. Untrue: California has anti-deficiency protections in place for short sales and foreclosures.

I hope this helps clear up some of the misunderstandings, but as in all cases, it is advised that a homeowner consult with a tax advisor to get any legal issues clarified as a result of doing a short sale. There are always different circumstances for each homeowner.

If you would like further help in understanding what is required for a short sale, just give me a call at 415-755-8919 or email me at rsmith@ fhallen.com and I'll be glad to assist.

Posted by: Rick Smith

How To Have The Best Home Buying Experience

2012-03-15T18:39:26Z

Your home purchase is most likely the largest purchase you will ever make, and it might seem that emotional side effects like panic and fear are inevitable. You have the power to manage these emotions if you know what to expect upfront, and will be able to minimize the discomfort in most cases.

Here are some keys to having a great buying experience:

Fearing What You Don't Understand

Most people don't run around buying homes every day, and things have really changed in the last few years in the home buying process so there is typically the normal fear of buying a lemon or taking the wrong mortgage. Since you are not in the market every day, the best thing to do is to start educating yourself months in advance by reading books, talking to potential lenders, visiting open houses, scouting neighborhoods, and asking questions on message boards frequented by experts. Of course, the best thing to do is consult with a professional real estate agent whom you will be able to rely on for help with your questions and who will know the market you are considering.

Ask Your Experts To Manage Your Expectations

I have found many buyers on emotional roller coasters when they start out with unrealistic expectations or resist the recommendations of experts such as a real estate agent or broker. The bottom line is if you have a good agent and broker, let them advise you; ask them questions you have regarding how your offer may be handled, how long things might take, what amount you will need to bring to the table at closing, and when you will need to be available to sign papers. Listen to your hired professionals: they do this all the time, so you need to trust them.

Understanding Timelines and Deadlines

There are literally hundreds of pieces to the equation of buying a home, and the timelines are moving all the time. Understanding what needs to happen and when will help neutralize the drama of each deadline. For example, a home inspector might recommend that you get a roof or foundation specialist involved; you will need additional time to get new inspectors out, possibly pushing you over an inspection contingency deadline. Or maybe your Broker needs additional information from you at the last moment to be able to lock in your rate or release loan contingencies. Working with your real estate agent and lender to get out in front of these deadlines becomes critical. When they ask you to provide something, it's best to work as quickly as possible to get back to them, not to delay making a deadline.

Understand That You Are Not The Exception

Be immune emotionally that things are not predictable when buying a home. Short sales take a long time (from 3-6 months), so you will have to be patient when buying a home that is a short sale. Documentation to a lender floats around to different financial underwriters and administrators, and sometimes they lose paperwork that you have to provide again. If you expect the glitches and delays, then you will be better equipped to emotionally handle the situation.

Manage Your Mindset

Ultimately you have the power to manage your own mindset. Get educated about the full range of things that may happen, and plan accordingly. Try to avoid mentally dwelling on or stressing over hypothetical disasters. Learn that things are not always under your control. Focus on the things you can control. If a curve ball is thrown at you, consult your experts, make a logical decision, and then don't look back after you have made the decision.

The bottom line is to pick the right professionals that you can communicate with, educate yourself before the process, and mentally prepare yourself for the natural curve balls that come when buying a home. If you would like more information, give me a call at 415-755-8919 or email me at rsmith@ fhallen.com, and I'll be happy to help!

Posted by: Rick Smith

The Novato Real Estate Market is On Fire for Buyers and Sellers

2012-03-13T21:14:20Z

Statistics released on March 8, 2012, show that out of approximately 254 homes in Novato, approximately 152 are under contract. These homes account for 60 percent of all homes in Novato, which is a significant percentage. Such a trend would generally be considered by real estate professionals as indicative of a seller's market. However, with historically low interest rates and rapidly dropping home prices, the market is ideal for both buyers and sellers. There has never been a better time to make your move in the Novato real estate market.

Given such great market conditions, it's highly advisable to buy a home if you can afford to do so. In order to buy a home, you'll need to qualify for a loan and should be sure that you can afford the mortgage payments. Interest rates are quite low, with most home buyers qualifying for an interest rate of between 3.8 and 4.8 percent. Given such interest rates, it's realistic to say that a new home owner could pay off 25 to 30 percent of the total principle on their mortgage over the next seven to 10 years.

Even if rates are between 6 and 7 percent, which is considered reasonable in a normal market, you would only be paying off approximately 10 percent of your mortgage during the same time span. Think of how much equity you can build by paying off a substantial portion of your mortgage over the next seven to 10 years. As the real estate market stabilizes, this equity will definitely be to your advantage.

If you are interested in purchasing a home, you should speak with a certified public accountant (CPA) or financial advisor to ensure that you are making a good investment given your personal financial situation. With the real estate market on the upswing, buying property is generally a great investment. Novato is an expanding real estate market, making it an ideal location for your next purchase.

If you are looking to sell and downsize, buy or simply sell, please contact me. I am happy to provide you with a free analysis of your real estate needs. It is my goal to help every single client find the property of his or her dreams. You can place your faith in me for all your Novato real estate needs because I love where I live. Please call me at 415-328-2637 today.

Posted by: Peter Schardt

Spring Fund Raising for Schools

2012-03-08T17:16:25Z

Even if you don't have children going to school in Marin, it's in your best interest to support your local public schools. Why?

The excellence of our schools here in Marin is one of the main reasons our real estate market continues to outperform the state and the nation. It is why so many young families travel over the Golden Gate Bridge to buy homes in Marin. As the San Francisco school scores continue to remain low, most people in San Francisco have to send their children to private school, costing them a hefty fee for tuition.

The one thing I always tell my Buyers is that you can always write off the cost of interest and taxes on your income tax, but you can't write off the cost of tuition. It makes sense to invest in a home in Marin as the county is a draw for better schools without paying private school fees.

Each district offers fun and creative ways for you to support them, and here's just a sampling of what's coming up:

Larkspur and Corte Madera Schools - Spark

March 23: The Spark Fashion Show at the Mill Valley Community Center will be held the evening of March 23. This is always a fun and lighthearted event, and promises to be even more fun as it switched to an evening venue and the men are included. This one is not to miss!May 5: The Cinco De Mayo Spring Auction will be held at the Mt. Tam Raquet Club.May 28: The annual Paradise Foods pancake breatfast event will be held on May 28th.

Redwood High School – Redwood High School Foundation (RHSF)

March 31: This year's Redwood Rocks! "Denim and Diamonds" event is slated for March 31, from 6 to 10 p.m. at the Corte Madera Community Center. A casual “kick back and be a college kid again” kind of event, this one is always fun!

Mill Valley Schools – Kiddo!

It's a year off for Kiddo's big gala and golf show, but coming this year are two events:

March 21: Middle School Spring CabaretMay 4: Kiddo! Night at AT&T Park

Kentfield Schools - Kik!

May 11: Kik! Golf swing tournament and wine auction, to be held at Stone Tree.

Ross Valley Schools - YES

YES offers parent parties year round. There are ski trips, co-ed mountain bike rides, cocktail parties, and a mother-daughter brunch.

Tiburon/Belvedere – Foundation for Reed Schools

May 9: Kids’ BINGO NightMay 11: Fashion show and luncheonMay 12: The School of Rock Regatta Auction Dinner DanceJune 1: Tiburon Day at the Giants

As always, please get in touch with me if you know of someone who would like to buy or sell a home in any of these fabulous school districts. Also, if you are an empty nester, give us a call if you are ready to downsize and offer your home for sale for a fabulous family who may want to enter your neighborhood. Please give me a call at 415-755-8919 or rsmith@fhallen. com.

Posted by: Rick Smith

Pending Home Resales Show Housing Market Is Regaining Strength

2012-02-28T06:02:08Z

There was a terrific article today at Bloomberg.com that talks about the housing market return. Click here to read the full article.

To summarize, the article reports that pending home sales across the nation picked up 2% last month according to the National Association of Realtors. In Marin, total unit sales are currently up 15% season-to-date, indicating strong signs of recovery this year; in fact inventory is very low compared to a year ago, and there is a real need for additional sellers.

Buyers look to be returning to the real estate market on the heels of faster job gains for three straight months, falling home prices, and record low interest rates. According to Yelena Shulyatyeva, an economist at BNP Paribas in New York, housing demand has bottomed and we should see a gradual improvement in sales. Unfortunately, there still seems to be a supply of foreclosures that are expected to come on the market this year, which may cause home prices to remain about the same as last year in some areas.

Lower appraisals and rejected mortgage applications due to stricter lending standards have resulted in the biggest breakdown in deals. In January, 33 percent of Realtors polled said they had experienced contract failures, up from 9% a year ago.

Builders seem optimistic, as Doug Yearley, chief executive officer of Toll Brothers, said that orders were up significantly, deposits are up, and traffic is up. Borrowing costs remain low as the average rate on a 30-year loan averaged 4.09%, and in many cases I have seen them averaging around 3.75% if the Buyers credit score is higher than 730.

Faster hiring and reduced job cuts may provide a further incentive for home purchases as the unemployment rate declined to 8.3% nationwide, which is the lowest rate since February 2009.

If you would like to know more about what properties are available, give me a call at 415-755-8919 or email me at rsmith@fhallen. com, and I will be happy to assist.

Posted by: Rick Smith

It is Time to Buy Real Estate

2012-02-27T21:25:00Z

The buying strength in the Marin County real estate market is perhaps the strongest anyone has seen in the last 15 to 20 years. This extreme buying strength is a result of short sales and bank-owned properties (aka REOs) currently in the market. The purchasing power that these properties provide makes this a perfect time to buy real estate in Marin County.

It is also a great time to sell a property. Inventory is very low and demand is high: homeowners can sell their property, then buy a new property at the very bottom of the market. After their purchase, they can watch the equity increase immensely as our market begins its future recovery. This is a great way to amass a small fortune quite easily. Who wouldn’t want to take advantage of this? If you are thinking about selling, now is really a great time to do so.

Boosting the market with lower rates, mortgage lenders have made it even easier to buy, sell and obtain a new mortgage in the current market.

With all of these great reasons to buy or sell, it should not take long for those who wish to exercise this new power to start buying up the surplus of REOs and short sales. It’s simply a very smart, strategic financial move. The combination of low mortgage rates and low market prices in Marin County may not be seen again, so taking advantage of them while they exist simultaneously is very wise.

This is also a great time to purchase a Marin County property to flip. Investors will find this market perfect for rehabilitating properties that have been priced low. Once these properties are repaired and restored, they can yield a nice profit margin once flipped.

Marin County is perhaps one of the most beautiful areas in the United States, and is a highly desirable area for real estate. It only stands to reason that if anyone uses this new buying strength to purchase a property, they will be richly rewarded when the market is on the upswing. Marin County Buyers are taking advantage of the lower priced market for the potential that it will certainly offer in the future.

This is a golden opportunity for anyone interested in profiting from the abundance of real estate opportunities.

Posted by: Peter Schardt

Housing Crisis to End in 2012

2012-02-14T17:06:00Z

There was great article in DS News the other day that spoke to the end of the housing crisis and cited lenders loosening up the credit standards as a major factor towards the crisis ending by year’s end. To read the full story, click here.

The analytics firm Capital Economics notes that the average credit score required to obtain a mortgage loan is 700, and while this is higher than scores required prior to the crisis, it's about the same as one year ago. However, other market indicators point not just to the stabilization of lending standards, but also a loosening of credit availability. Banks are now lending amounts up to 3.5 times the borrowers' income level. This is up from a low during the crisis of 3.2 times the borrowers' earnings.

Banks are also loosening loan-to-value ratios (LTV), which denotes the clearest sign yet of an improvement in mortgage credit conditions. In contrast to a low of 74% reached in mid-2010, banks are lending at 82% LTV.

While credit conditions may have loosened slightly, some potential home buyers are struggling with credit requirements. Capital Economics points out that 8% of contract cancellations were a result of a potential buyer not qualifying for a loan. It is highly recommended that once a buyer starts to seriously look at homes, the potential buyer must get pre-qualified from a bank or lending broker. It's the only way to know for sure that a buyer can afford the price point they are considering. Additionally, Capital Economics says, "Any improvement in credit conditions won't be significant enough to generate actual housing price gains," and potential ramifications from the euro zone situation do pose a threat to future credit availability.

If you would like to know more about what's happening in the housing industry or about lending practices, give me a call at 415-755-8919, email rsmith@fhallen.com, or leave a note in the comments.

Posted by: Rick Smith

Great News! FHA Loan Limit Just Got Raised!

2011-12-05T12:36:31Z

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?

Home prices have been rolled back to 2001 levelsThere are historically low interest rates right nowYou can move into a home priced up to $749,000 with only 3.5% downHome 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

It's Getting Better Out There!

2011-11-22T18:11:32Z

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

What To Do When A Buyer Can't Come Up With Closing Costs

2011-11-21T05:13:00Z

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

Great News! It Looks Like The Economy is Turning Around!

2011-11-16T19:27:00Z

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

Should A Seller Accept a Contingent-Sale Offer?

2011-11-03T16:36:56Z

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

Kentfield Gardens Living

2011-11-03T16:26:11Z

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

Dealing With Last Minute Regrets

2011-11-02T05:54:56Z

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

How to Know if a Home is "The One"

2011-10-25T19:48:00Z

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!"

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.” 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!” 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." 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." 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

How To Avoid Buying A Problem Home

2011-10-20T13:32:00Z

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:

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.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.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.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.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

Home Improvement Projects That Make An Impact On Buyers

2011-10-07T13:19:38Z

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.

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.

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.

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.

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.

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

How to Avoid Close of Escrow Issues

2011-09-28T21:05:00Z

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

Are Computerized Websites Accurate In Forecasting Home Values?

2011-09-22T19:40:00Z

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:

If your home is older and has had a lot of improvements or even additions that aren't in the county records. If your homes in your area are very different from one another, you might get bad comps. 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. 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. 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

Should I Re-Finance if I Plan On Selling Soon?

2011-09-19T16:29:00Z

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

Why You Should Own Your Own Home

2011-09-13T16:42:00Z

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 2011 in the North Bay

2011-09-01T16:33:44Z

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

Get A 15-Year Loan When Refinancing

2011-09-01T16:06:00Z

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

How To Lower Your Property Taxes

2011-08-29T17:20:03Z

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

Mortgage Applications Increase 4.1%

2011-08-19T21:12:00Z

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

5 Questions to Ask Your Lender When Buying a Home

2011-08-16T19:32:00Z

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

Four Things Every Buyer Must Know When Getting Ready to Close Escrow

2011-08-08T21:19:00Z

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

Why We Love Where We Live - Reason #100 - The Golden Gate

2011-07-29T22:00:00Z

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

Why We Love Where We Live - Reason #99: Starry Nights

2011-07-21T18:08:00Z

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 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

Questions To Ask A Home Inspector

2011-07-20T06:01:02Z

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

Ways To Improve Your Credit Score

2011-07-12T18:15:22Z

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

Negotiate Home Improvements When Buying House

2011-07-06T19:34:00Z

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

Friday Round-Up: Things to do this weekend in the North Bay

2011-06-17T22:13:00Z

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

More Great Ways To Help Get Your Home Sold

2011-06-16T08:13:23Z

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.

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.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.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.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.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

Why We Love Where We Live - Reason #98: It's Good to Be Green

2011-06-08T17:39:00Z

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

Marin blog: Home Owners Insurance Or Repair It Myself?

2011-06-01T13:37:32Z

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

Marin Home Sales and Prices Decline In April

2011-05-31T15:17:47Z

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

15 Ideas for a Memorable Memorial Day in the North Bay

2011-05-27T19:25:00Z

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

Buyer Frustrations with Short Sales and Multiple Offers

2011-05-24T11:59:19Z

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

Should I Sell My Home Now or Rent It?

2011-05-16T14:08:22Z

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

Go Green And Save Money!

2011-05-10T20:57:00Z

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

15 Great Ways to Spend Mother’s Day in the North Bay

2011-05-05T20:39:00Z

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:

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

Increase the Value of Your Home With Solar Panels

2011-04-25T17:13:47Z

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

Great News! Marin Home Sales Rise in March

2011-04-20T18:30:00Z

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

Homeowner Tips: When Do You Need a Permit for Work on Your Home?

2011-03-30T12:25:53Z

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

Home Sales Increase in Marin at a Cost to Sellers

2011-03-22T15:27:00Z

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

Why We Love Where We Live - Reason #95 : Playing in the Yard

2011-03-21T20:11:00Z

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

Should You Do Home Inspections Before Putting Your Home on the Market?

2011-03-16T16:06:00Z

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

Understanding Short Sales: Part III of XV: How Homeowners Benefit

2011-03-14T16:31:00Z

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

Heating of the Market: Hot Short Sales & REOs in Marin

2011-03-11T14:51:00Z

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!

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

Posted by: Tom Verkozen

Good News in San Anselmo: Brisk Sales, Normal Short Sales and REOs

2011-03-10T14:49:00Z

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 …

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

Posted by: Tom Verkozen

Sunnier Skies are on the Way!

2011-03-08T16:01:08Z

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

Bargain Shopping Time in Marin: Short Sales and REOs may not last

2011-03-08T14:18:00Z

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.

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

Posted by: Tom Verkozen

Understanding Short Sales: Part II of XV, I Believe in Laughter

2011-03-07T16:21:00Z

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

Understanding Short Sales: Part I of XV, Introduction

2011-03-04T23:25:00Z

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

Should You Pay Off the House?

2011-03-01T15:37:00Z

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

Marin Homeowners Facing Foreclosure: 'In escrow' isn't quite the same as 'Sold'

2011-03-01T15:28:00Z

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!

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

Posted by: Tom Verkozen

Real Estate in Novato, CA: Short Sales, Bank-owned (REO) and Organic

2011-02-24T15:32:00Z

A wonderful morning it was at the Novato real estate brokers Wednesday tour …. Kristen Kern hosting the meeting, draped in splashy gold … The new look for Century 21 agents? … That’d work for me! …. Kristen was trying to pass the torch for running the meetings to Alain Pinel but hey, it’s ski week and there were only five homes on the tour (three short, two organic) … and nobody from Alain Pinel was there … so we chatted, laughed, talked about the market, interest rates, our listings and in general had fun …

First person greeting at the door … the always delightful Fariba Zolnasr, Old Republic Title … we still grin at the grand Hospice By The Bay galas we ran together years ago …. second person, the sunny Khristina Berquist with Old Republic Home Warranty … then Stevens Manning, Manning Mortgage … and Bill Hoopes, California Mortgage Advisors …. no choice of topic … we talked interest rates, loans, home warranties ….

Most interesting: Interest rates have popped up into the lofty 5% range … and thus we bopped down memory lane … to the Jimmy Carter days, when rates first spiked to 12% and the market stopped cold … and the rate hikes didn’t stop there … Back then I bought The Poet’s Loft, a marvelous on-the-water Marshall pier home with a 16% mortgage … and thought we were being lied to by Ronald R when he said he’d get rates under 10% … Woops … When I sold that dear home I’d re-fied the interest rate to high 6’s … Indeed, while 4% rates are gone … the buying’s good … so hop on it … buy real estate … and here’s more good news ..

After the meeting we all dispersed … I was off to hold open 26 San Benito, Jeff and Lyn Toquinto’s Novato home … an amazing, lively-living five bedroom home www.26sanbenito.com or go to www.tomverkozen.com … ooooo’s ahhhh’s of agents and buyers alike (four sets of buyers came through) … with the clients of agents Judy Smith of Frank Howard Allen and Cj Spielman of Bradley preparing to make offers … out went disclosures. 70% of those touring loved the bold blue kitchen … 10% hated it (isn’t that life … why bother being negative, folk? … and hey, my kitchen is the same blue! And cooks like all get out … )

Feels great to have a hugely warm reception for a property … 203 hits on the MLS in two days! … Even with rain, sleet and snow you can rush out and see this beautiful modern adaptation of the Aspen model in San Marin this Sunday before the Academy Awards … Hey, Kristen … wearing gold? Or just going for the gold?

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

Posted by: Tom Verkozen

Family Compounds in Marin County Short Sales, REOs and Organic Sales

2011-02-22T15:24:00Z

Time to update your thoughts on family compounds in Marin County … ten sold in the past six months … My favorite was 53 Brighton in Bolinas … and there were two in Novato … including a seven bedroom, 3,100 square foot home on Simmons … which sold for $750,000 four years ago and just closed escrow at $510,000 … You got it: short sale.

Right now there are 26 family-compound possibilities on the market …. one is bank-owned, 310 Pt San Pedro Road … and two are short sales …. 55 Kailua, Dillon Beach, which sold for $1.4M in ’05 and is on for $899,000 … yummy home, vacation rental right now, listed by Melinda Johnson … and there’s one on Sutro in Novato’s Pleasant Valley that sold for $1.2 in ’03 and is now in escrow with an ask of $950,000 (started over $1.5M) … listed by Jim Armstrong with whom I worked, many years ago, when we were at Creekwood Properties.

Available in Bolinas is 20 Rose … 11 bedrooms listed at $4,495,000 … Ready to make an offer? Let me know right away! Note: my favorite, the old Full Circle with 11 bedrooms and 6,000 square feet plus a great garden in Bolinas is in escrow … Here’s wishing Suzanne Shelhart well on the sale.

Another potential family compound that is still available is 9 Willow Hill, around the corner from my home in Ross … asking $6.95M … Others that are available are scattered throughout the county … Dillon Beach, Nicasio, Novato, Bolinas …

Interesting to note that the family compounds have a lesser profile as REOs and short sales … probably because they’re frequently purchased with lots of cash.

If you have an interest, let me know. Great way to live …. potential as senior co-housing …

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

Posted by: Tom Verkozen

Snapshot: Marin County Real Estate: Multiple Listing vs One Fine Office

2011-02-18T00:00:00Z

People are tired of being tired …. Make sense? If you agree, RSVP!

This past week in my office there were nine sales … eight with multiple offers! … a small sample, perhaps … (in that same week there were 38 closed sales in Marin so you might think that we sold about 20% of the homes … and maybe we did) … Led by Rocky Vannucci, the pied piper of real estate, the San Rafael office of Frank Howard Allen has led the county in number of sales and dollar volume and is constantly doing great things …

Speaking of great things … mice, men and great things … Michele Barton and I, the office social committee, put together the ‘Shred Event’ a few years ago …. this year almost the whole office is joining in to make the morning of February 26th a green morning to remember … watch for traffic jams as we have two shred trucks and a coffee cart ready to help our favorite clients clean up old files and get ready to move forward …

Back to real estate … in January there were 145 closed sales in Marin … follow the sales … eight of nine properties that sold had multiple offers …. some only two offers, a few many more, one of them eight … Corte Madera is hot, Hot, HOT … and so is San Anselmo …

WHY?

A few thoughts:

*Well priced homes sell.

*The inventory is thin …

*Interest rates are creeping up …

*People are tired of being tired … tired of being on hold with their lives …

*Amid all this activity, 40% of the sales have been all cash … many with quick closes (7 days, 10 days …) … typical of tired people wanting to get back in motion …

Interestingly, the price range for homes with multiple offers has increased … there are good buys out there … great buys … as banks, people, short sales, families … everybody is seeking some sort of stabilization … and relief from life on hold ….

Want to know more about the market? Ask me ….

Got some good information on the market? Share it … RSVP! :) Love to hear from you.

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

Posted by: Tom Verkozen

Where are Home Prices Today?

2011-02-15T00:00:00Z

The home market appears to be a great deal more active so far this year. A lot of people who were shut out of the housing markets in the Bay Area are now starting to see that they can afford to buy a home, even in Marin County. I ran across a great article from the Wall Street Journal that explains what is happening with home affordability.

To summarize the article, the Wall Street Journal talks about how housing affordability (the ratio of home prices to annual household income) has returned close to the historical average reached between 1989-2003 in 47 markets; this market today is about as affordable as it gets. If you can qualify for a loan, this is a pretty good time to buy. Unfortunately 27% of the homeowners with a mortgage were underwater at the end of the fourth quarter. Housing demands still remain weak because buyers are skittish about the economy and lending standards remain very tight.

Historical trends show housing could remain undervalued in many markets for up to 6-7 years, and in a lot of cases it’s become cheaper to buy than to rent. The question still remains whether you can qualify for a loan.

The shift in the sales trend is actually showing we are in a “balanced” market currently for homes priced under $1.0M, as over 30% of the total listings are currently under contract. If you take a look at any prices over that, it would still be a buyer’s market, although the home prices in the last three years have declined over 30%.

If you are considering buying a new home, I would advise to start looking now, as the interest rates are starting to move up. In November, interest rates hit an all time low of under 4%. You can still shop around a little, but today’s rates have already inched up to around 5% and are expected to go higher by the end of the year. What this means is, even if home prices were to drop just another few percentage points, what you would be saving over the course of a 30-year loan could add up to thousands, if you invest before the interest rates climb to 6% or higher.

Posted by: Rick Smith

Pricing your Mill Valley Home

2011-02-15T00:00:00Z

The steps for determining the value of your home are relatively simple. First, ask yourself why you want to know. If you’re planning to sell, take the issue seriously, and let’s spend the time getting the numbers right. If you’re simply curious and seeking some fun, you can check on Zillow. If you need a reliable number, say so, ask me and I’ll gladly do the work.

Yesterday I received a call about the value of a Mill Valley property. The homeowner told me a rough number would do and gave me the property history and basics. Keep this in mind: Mill Valley is pricey salt and pepper. $5 million mansions next to $800,000 cottages. Mill Valley, an area I know well. Based on what I was told about the property and the motivation in seeking a value, a rough approximation was the first step… so while sending the link, ”view lisitngs” I wrote:

“The properties you’re receiving with this email are based on a MLS radius search of 1/2 mile from your home, homes under 2500 sq ft, lots under 7000 sq ft, prices $1-2M and sales going back 1 1/2 years. The only active listing was 177 W Blithdale … which began at $1.895 and has been reduced. Closest sales are 80 Summit, a short sale, and 260 Lovell, a larger 4BR, which went quickly. Let me know your needs as we can certainly get a better approximation of the value for you.”

Going 18 months back to find similar sales is interesting and needs to be questioned. But we’re dealing with Mill Valley and that information is helpful. And we were clear that the next best step is to refine the numbers by putting the real in real estate by actually visiting the property and spending the time to determine its value.

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

Posted by: Tom Verkozen

Marin County Real Estate: Short Sales, REOs, and Distress

2011-02-10T19:12:00Z

Oh my, oh my … when I say there’s a lot of pain out in the marketplace I mean it … people up, down and sideways in so many ways … just having returned from the Thursday brokers open house tour … where one home in four was a short sale or a bank-owned property … Michele and I walked out of 787 Del Ganado, a retro-modern home in Terra Linda, listed by Lindy and Lydia for $594,000 … clearly a home that the owners love and are losing … it’s time to look at the big Marin picture.

Here’s a four-year-view of the short sale and REO (bank-owned real estate) sales through multiple listing service (MLS) in Marin County …. a study of people upside down and trying to get out of homes …

In 2007 we sold 2509 homes … less that 1% were short sales or bank-ownedIn 2008, 2080 homes sold, 8% short sales and 12% bank-ownedIn 2009, 2173 homes sold, 12% short sales and 17% bank-ownedIn 2010, 2323 homes sold, 12% short sales and 14% bank-owned

Add to this some good news, Sellers … now is a prime time to sell because buyers have nothing to wait for … the conforming limit of $729,750 is due to drop to $625,000 in September … as money tightens and interest rates creep up … no more 4% interest rates … we’re now at 5% … because the Fed is concerned about deflation and kicking rates up.

Posted by: Tom Verkozen

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

Posted by: Tom Verkozen

Belvedere, CA: Listings, Sales, Short Sales, Foreclosures

2011-02-09T14:16:00Z

In 2010 there were 32 sales in Belvedere … only one of which was a short sale … no bank owned properties changed hands. Belvedere stands tall with great water and SF views, an average price per square foot of well over $1000 …

Currently there are 31 Belvedere properties for sale …. one a short sale, another may become one … but mostly properties in Belvedere are solid … however today there are eight on by Frank Howard Allen Realtors alone …

Two properties are in escrow … 415 Golden Gate, listed by Linda Brown and previously mentioned in this blog as ‘the next home to sell’ because it’s a great opportunity … sold in less than two weeks … and Dave Ogden’s listing at 8 Windward which took about average time for Belvedere sales … currently the average market time is 246 days …

Compare these statistics to San Anselmo where 152 homes sold last year … 25 foreclosures and 13 short sales … and you see a distinctly different market … Want to go shopping? Let me know!

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

Posted by: Tom Verkozen

Costs for Home Mortgages Rise

2011-02-08T15:00:11Z

As the economy continues to show signs of improvement, the cost of getting a new home mortgage is rising and higher risk fees are starting to be passed along to the borrower.

An interesting article in USA Today discusses what is happening with the lending market and should be of interest to anyone considering buying a new home.

Basically, the article notes that for the first time since 2009, Fannie Mae and Freddie Mac are raising the risk fees they charge lenders on loans they buy for resale to investors, even for people that have had stellar credit in the past. To avoid the fees, most borrowers will need a FICO score of 740 or better and down payments of 25% or better. Lenders could absorb the costs, but most are expected to add it onto the loan costs. The increases affect most loans with longer than 15-year terms sent to Freddie starting March 1, and to Fannie on April 1.

USA Today gives an example of a buyer who is buying a $200,000 house, who has a FICO score of 700 and a 20% down payment. This buyer will now be paying an additional $1600 for the Fannie risk fee vs. $1200 before, a 33% increase. If the score were 680, then the fee would be $2800 or over double the previous cost.

Risk fees hadn’t applied to borrowers of a score of 740 or above, but now they face the smallest fee of .25% of the loan amount. For the first time, these fees are applying to everyone. Freddie says the .25% fee would have a nominal effect to the monthly payment for a home with a loan value of $200,000 or less. But living in Northern California, where the home mortgages are triple in price, could make it harder for some consumers to qualify.

Interest rates are also starting to finally creep up as well from the record lows back in the fourth quarter of last year. The lender I spoke to felt they would be up a half a point by the end of the year from where they currently stand.

My advice is if you are remotely interested in buying a home, it might be wise to do it this spring, as you could save hundreds of thousands of dollars over the course of a 30-year loan.

If you need more information, please don’t hesitate to call me at 415-755-8919, and I’ll be happy to help!

Posted by: Rick Smith

San Anselmo Real Estate Update Listings and Sales

2011-02-07T16:55:00Z

Super Bowl …. Is past … dang it, good game … wrong team won, to my mind … a few great ads … ‘Detroit’ was my favorite … and Black Eyed Peas was wonderful half time … and now the selling season begins … so let’s look at a wonderful town … San Anselmo!

In San Anselmo there were 69 sales in the past six months … 66 homes, three condos … average size, just under 2,000 square feet …. Average price per square foot: $433 … average list price: $876,918 … average sales price: $844,150 … so there you have it … pretty vibrant … solid … great town to live in …

Currently there are 49 homes and two condos for sale in San Anselmo … average list price is $895,580 … average time on the market is currently running at 97 days … 14 of these homes (and none of the condos) are in escrow … the only one awaiting a moving van is being sold by Tom and Jennifer Loucks in my office … the home at 6 Butterfield, listed by Marta Sousa … great buy on a home that started at $550,000 … at the corner of Butterfield and Drake … lots of potential … currently listed at $379,000 … court approved the sale so you are too late!

The least expensive San Anselmo property is a one bedroom, upstairs condo listed by the Frost team … $275,000 asking … condo fees a touch high at $465 … but a great location … pool … near town … The other condo available is 1 Aspen, bank-owned, started at $424,900 and has dropped to $364,900 … listed by out of towner, Tom Casazza … but easy to show … Let’s Go!

The least expensive home is 57 Valley, bank-owned two bedroom one bath with some extra space … listed by Lee Spelman … again, easy to show … Let’s Go!

Five new to the market homes … including … Bob & Carla’s 116 Madrone, which came on the market this past week … $639,000 for a cute (small) home in a great location … and one of my favorites … 12 Raymond …. Val Roger’s home … a beautiful home back with a great price at $1,139,000 … immaculate, restored … wonderful home … superb location …

In San Anselmo, 28% of the homes are in escrow …. There’s less than a five month’s supply of homes … and San Anselmo is a great place to live … so, come on down, let’s look around.

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

Posted by: Tom Verkozen

Get UP and GO … Good real estate news!

2011-02-04T14:52:00Z

There’s a bit of good old fashioned momentum in the economy … which is pleasurable reading … especially after reading about the report on real estate’s bursting bubble and the ensuing bust and on how we got to where we are …

Want signs of life? Act now or you’ll be too late!

Hey, look at the stock market … look at factory orders … look at the Marin Independent Journal headline … real estate hitting bottom … with a ? because they don’t know … I know, I do, I wrote for the IJ for 12 years! ….

Next look at real estate sales …. yes, our closed sales here in Marin for this January were three measly units short of last January … and last January we had a huge incentive with a buyer’s credit … and talk to Steve, who after missing out in a multiple offer to an all cash buyer, is now in escrow on a property to which Michele Barton said … ‘Sweet! Two yards, great remodeled bath … Sweet!’ With an interest rate of under 5%… amazing … then hear Marney Solle, with Terra Mortgage say, ‘We have a slowly improving economy’ … Yes, there is a bit of momentum back in our economic lives! And as the economy improves and the rates creep up, the opportunities of today will belong to someone else!

For fun munch on this San Anselmo good news … Bruno Denis will be re-opening L’Appart very soon … I love Le Garage in Sausalito and missed L’Appart … now I hope he rehires Magic as his hostess … she’s soooo cool … will have to be lured away from somewhere else, popular Miss that she is …

Next to one of my next favorite towns … Sausalito … where Jerry Dal Bozzo will be opening Salito’s … crab and prime rib is the rumor … and just down the road, Francesca McCartney’s Energy Medicine University and the Academy of Intuition Medicine … ta’ dah!

Then glance at the old mid-San Anselmo property known as the Rossi Pharmacy … now rumored to be owned by George Lucas and talked about either as a film center or park …. I remember that building fondly, having formed a partnership with Kent Garner, former owner of Java in Larkspur, to open a coffee house right before George Siefert bought him out of Java, and Ken Fowler bought Kent’s house in Kentfield and my buddy headed south to more sunshine … We could’ve and might’ve but we ran into a bit of San Anselmo town hall opposition … Oh well … life does move on, doesn’t it?

Here’s to loving life … and still seeing homes like 2 Espalda in San Rafael, formerly on the market for $1.1M now offered by Marlys for $699,000 …. Hey, want to go see? Not on MLS.

Other great homes … on tour today … Lori Saia Odisio’s 10 Alpine Lily … an open plan home mostly on one level but with a master suite away and above … pool, four bedrooms, vaulted ceilings …. she’s not offering lottery tickets but if you want a stunning, magical home, call me and I’ll show you this beauty … under $1.7 and available …

Or if your budget is a bit less, Deborah Solvason has a five bedroom, 2900 square foot one-level home at 10 Mount Hood Court for less than $1M … very cool, level lot, level home, stunning pool …

There’s value out there so let’s go shopping! … before the Steelers romp on Sunday!

And remember, I’m never too busy for any of your business or referrals!

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

Posted by: Tom Verkozen

How to Figure Your Property Tax Bill

2011-02-02T13:12:29Z

When buyers are looking to purchase a home, I am often asked, “What do you think the anticipated property tax bill will be?”

First of all, when you put a contract on a new home, you should always request last year’s property tax bill as a disclosure of the anticipated taxes. However, confusion sometimes happens when the buyers receive the report, as the taxes are based on what the seller originally paid as the price for the home. Property taxes are set according to value, which is a basic 1% tax on the price as sold, and then there are local taxes based on what is assessed from the local schools, hospitals, fire department, water department, paramedics, etc. So, if the seller bought during the mad home boom of 2003-2007, then the sale price is probably inflated over where homes are selling for now, and the actual tax bill could be significantly lower.

For example: If the house was bought in 2005 for $1.0M, and no improvements were made, the base tax is $10,000 plus the local taxes. Since property values have slipped between 30 to 40% over the last 3 years, the house may be selling for around $700,000 today. The 1% tax base on this home now would be $7,000 plus the local taxes, which is a big benefit to the new homebuyer, as they will save $3000 on an annual basis.

The opposite can also be true in the case where the seller has owned the home prior to 1996, when home prices were much lower. If the seller bought a home in 1996 for $500,000, then the 1% tax base would be $5,000 and the new buyer would have an increase over the reported tax reports that were given during the buyer disclosure period.

It’s hard to say what is included in the local taxes as they vary from town to town. School taxes seem to be the primary differential here. For Marin County, a general rule of thumb for local taxes is an additional .25%, so that the total estimated tax is around 1.25% annually.

For homeowners that bought during the peak period 2004-2007, it would be a great idea to call the Marin County tax assessor to understand how your home can be reassessed at the new lower value. Sometimes this means contacting your real estate agent to get a list of comparable properties that have sold within the last six months in your area at lower prices. Then you have a good case to contest the current valuation to lower your taxes.

These are fairly large generalities, so if you would like a further explanation, just give me a call at 415-755-8919 or post your questions in the comment section below.

Posted by: Rick Smith

The Water View Homes of Marin

2011-02-01T00:00:00Z

One marvelous reason for living in the San Francisco Bay Area is the magnificent water view homes … there are quite a few in the north bay … a quick search on my website led to a surprise or two … obviously most of the properties were in Belvedere, Tiburon, Sausalito and Mill Valley … with Tiburon leading the charge with nearly one in every four … but let us not forget some other locations … and as always, if you’re interested in a water view home I’m ready and all you need do is call! 415.257.2039.

For water views, Novato has Bel Marin Keys … with great, affordable homes on the water … there’s one short sale that’s been approved by the lender… 918 Bel Marin Keys … listed by Suzanne Rocha for $300,000 and ready to close … then there’s my Novato friend Dave Elgort, who has a beautiful Victorian listed in Belvedere … 288 Beach … a touch under $3M.

A surprising find in San Rafael, which does have some great water view homes, was the least expensive water view home … listed by Greg Browman at 270 Channing Way … six months to get into escrow … a one bedroom condo short sale priced at $135,000 … at the other end of the spectrum there are a couple of beauties listed by Bill and Lydia … 63 Norman, Tiburon, listed at $7.9M, and for slightly less there, 333 Belvedere, previously mentioned … for $7.5M …

And let us not forget the water view condos in Mill Valley’s Eucalyptus Knolls … there are two in escrow there …

Ready, set, CALL.

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

Posted by: Tom Verkozen

The Shadow Inventory in Human Terms

2011-01-28T15:16:00Z

Try not to notice that 70,000 repossessions occurred at Christmas.

At the start of the fourth quarter of 2010 the shadow inventory … according to a Standard and Poor’s estimate … which does not include the million-plus Fannie Mae and Freddie Mac loans … was approximately 1.7 million homes … these are homes that are either bank-owned or are in foreclosure … the ‘in foreclosure’ count includes properties where the owners are over three months delinquent … and the shadow inventory, which varies from state to state, city to city … is running, according to S&P, four years in Portland, Oregon … five years in Boston and Miami and …. Hold your horses …. Ten years in New York …. Oh my god. Try this on for size … RealtyTrac announced last week that the total number of homes taken back by banks in 2010 exceeded one million … and the number of notices of foreclosure hit 2.9 million … Hey, folks, that’s a lot of suffering souls … a growing problem with home values, indeed … but dare we think of the pained families as banks turn profits … even after writing off Billions and Billions of dollars in home loans … it seems only very slightly right that Greenspan is getting verbally spanked … and hugely wrong that 7 or 8 million people are receiving notice that they may soon be homeless …. as the bankers reap windfall bonuses … How many homes, you may ask, are under water but still current? I know of quite a few … one of my clients … just to share with you a bit of good news … has a loan with IndyMac … they contacted him and offered to reduce his payment, encouraging him to stay in his underwater home …. Which he will … his plan is to pay off the house sooner rather than later by continuing to pay the original payment …. A real win/win … a real rare event … especially when rumor has it that banks are modifying one loan in thirty! A bit more good news … at the beginning of the bursting of the bubble the default recidivism rate (my term) was over 80% … third quarter 2009, a year and a half into the process … only half of the modified loans were failing … modify, bankers, please … What does this ramble of information mean? I feel your pain. 1. There are solutions …. There are a few forward-thinking bankers with a heart … perhaps not many …. But there are some. 2. Each of us knows several families drowning in paperwork as the ‘homeowners fulfillment centers’ make them fill out endless strings of duplicate forms and offer only a pack of donkey dust when homeowners call in asking for assistance in modifying their loans … 3. Our congressional representatives … Hello, Diane Feinstein and Barbara Boxer, thank you for trying to help our relatives and neighbors … are swamped with tales of woe and horror and are trying to help … 4. We know that the shadow inventory … which varies from market to market … will depress home values and play havoc with the housing market recovery …. Stringing the pain out for years to come. 5. Robo signers and other ineptitudes have made the foreclosure process longer … and more painful …. With millions and millions of people sitting with their lives on hold. If you haven’t had enough of this ramble … hey … respond [reply]…your voice is needed. Here and elsewhere. For more information, please visit www.tomverkozen.com.

Posted by: Tom Verkozen

Luxury Estates, Water & City Views: Belvedere, CA

2011-01-27T15:22:00Z

Ahhh, Belvedere … where homes are large and views even larger … how different is the picture that emerges when we move from foreclosed-upon condos to look at real estate sales in Belvedere …

Right now there are 31 properties on the market in tony Belvedere …

New to the market is 15 Toyon, a four bedroom home listed by Karen Hardesty, the least expensive home available at $1,695,000. Relocating owners who’ve owned the property ten years .. master suite on main floor, excellent condition … great buy. Want to see, let me know!

Another great buy, just now on the market … 415 Golden Gate … listed by Karen Brown … this is a great value and I’d expect it to be the next home to sell …. Great light, tastefully renovated, fabulous views … you’d know the views are probably great simply by the address … odd numbered side of Golden Gate … this is a smaller home (2 bedroom, 2280 sq ft) with a huge open-to-the-views beamed living room … offered at $2.5M. Yummy.

Another ripe for sale is a stunning home known (I believe, but could be wrong) to many of us who’ve loved Esalen over the decades … 43 Cliff … a waterfront five bedroom home with unbelievable views and a huge dock on the bay … reduced over the past 1058 days on the market from $9,950,000 to a mere $6.5M … listed by Bob Bradley.

The most expensive homes on the market are 1 Cliff, a seven bedroom, 7,900 sq ft home which has an ask of $28,850,000 … and has been on the market for 485 days. Whew!

Next in price is the six bedroom home at 101 Belvedere Ave, eight months on the market at $27,800,000 … if you’re interested in a great cliff home on the western-most promontory on the island … imagine the views … call me NOW … it’s a joy just to be there and quite an experience of weather.

About the homes on the market … 31 as stated earlier … one in escrow … here are a few averages: list price is $6,337,871 … square feet 3936 … price per square foot $1363 … time on market 7 months.

About the recent sales, 16 in the past six months …. So Belvedere has a year’s supply of homes on the market … 4.3 months is considered healthy but hey, this is Belvedere … exquisite has not rules.

Here are the averages on the sales … listing price of $3,962,938 vs sales price of $3,580,354 (nearly half a million less …) … $1016 per square foot and 186 days on market …

Least expensive (three sold for less than $2M) … 10 Fern, listed by Jess Pearson for $1,495,000 and sold in 119 days for $1,275,000 … bay and harbor views.

Most expensive … 67 Belvedere .. previously noted as listed at $12,995,000 and sold for $11,750,000 … that’s a bundle of cash, isn’t it? After 203 days on the market.

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

Posted by: Tom Verkozen

Almost a Seller’s Market And Here’s Why

2011-01-26T00:00:00Z

We’re early into the year … January … On the eve of the President’s State of the Union speech there’s a feeling of momentum in the market place. Pittsburg football fans are drooling in anticipation of February 6. And the sense of momentum has spread to buyers … we’re having multiple offers on properties …. One of my clients just lost out to an all cash buyer (a big advantage since lenders are still creating pain for even very highly qualified buyers) … This is a market that favors sellers … for now … and here’s why …

1. Interest rates have slightly destabilized – anything with a four in front of it as an interest rate is …. Unbelievable … Remember when rates jumped from 10% to 18% … that was a great time to buy if you could. My favorite memory was purchasing a property with a 16% interest rate and refinancing the rate twice … to 8% and being very happy. But knowing that rates will not remain rock bottom has buyers wanting to take advantage of the situation.

2. Buyers are buyers because they buy – they’ve held off long enough, they’re tired of waiting … many sitting on a load of cash … everyone is a bit tired of the stagnation ….

3. Inventory is low – and that’ll be a focus today – low inventory and heavily bank-influenced sales.

So take a peek at the Marin market with that in mind … the Realtors’ tour in southern Marin had a measly 54 homes on it (the four in Belvedere averaging over $2M) … some new listings, many relisted or on the market for months and months … hey, there are good buys in the ‘stale’ inventory …. Want to go shopping? Call me! 415.637.7974 or jingle my chain by email or whatever ….

In any event, there are 1,069 properties (single-family homes and condos) on the market … 728 active and available … 341 in escrow … that’s MORE THAN 30% … almost a seller’s market … except for the fact that of the 341, only 129 are organic … which means that 153 are short sales and 59 are bank-owned … pretty much a 2/3 vs. 1/3 division … which tracks with Novato with 113 in escrow, 31 organic, 21 bank-owned and 61 short sales …

If you’re thinking of selling, consider moving forward … avoid the spring glut … avoid the mass of shadow inventory that’s hanging out there … get off the dime and take advantage of a market with nearly one home in three in escrow.

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

Posted by: Tom Verkozen

Marin Condo Update: Short Sales, REOs and Organic Sales

2011-01-24T14:15:00Z

Brian Moynihan, chief executive of B of A, called 2010 … a year in which the bank had a $4B charge … that’s right, four billion dollars … related to TARP and a write down of $12.4B … mortgage defaults … A year of Necessary Repair and Rebuilding .. and noted that their third quarter write downs for credit cards was $10B … Oh my, oh my.

Let’s take a look , for perspective purposes … at real estate in four local areas: Novato, Mill Valley, San Rafael north (94903) and San Rafael south (94901) ….

Mill Valley has seven of its 20 condos on the market in escrow … just short of half the sales (8) are bank influenced … with six short sales, two bank-owned that leaves a dozen ‘organic’ sales (sorry, organic farmers of America … the term organic is sliding) …. The most expensive condo, 47 De Silva, listed by Lotte Moore … began its listing life five months ago at $1,550,000 (it sold in ’07 for $1,645,000) and is now offered at $1.195M and in escrow … the least expensive condo in Mill Valley is a one bedroom at 554 Seaver offered by Dan and Sandra Fitting at $299,900.

In Novato there are 75 condos available … 27 (more than one third!) in escrow … and of the non-organics, 35 are short sales and 15 bank-owned. One condo, on Center Road, is below $100,000 … while Margaret Dale has 194 Ignacio Valley Circle on the market and in escrow, listed for $499,000 .. this is the most expensive condo in escrow in Novato …. It sold in 2000 for $442,000 … hey, that’s good news! This is an end unit in Marin Glen, Sante Fe Model, three bedroom and it held up well, eh?

In the south of San Rafael there are 45 condos on the market … nearly half of them (21) in escrow … and more than half of them bank-owned or short sales (25) …

In the northern reaches of San Rafael there are 65 condos on the market .. nearly 1/3 in escrow (19) … 23 short sales … nine bank-owned … of note would be 600 Deer Valley, listed by Constance Kirwin at $635,000 … this two bedroom, two bath unit began this incarnation at $825,000 … sold for $465,000 in ’04 …. Interesting numbers … more fun is the condo listed by CJ de Heer at 131 El Condor Court … $650,000 for a very LARGE end unit … went into escrow in no time.

There are bargains to be had … hey, agents and sellers, let me know of them and I’ll shout them out … or …. Hey, if you want to go shopping for a good buy, let me know (415) 257-2039 … but let us not forget that each of these bargains has a story … and we’re living that story ….

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

Posted by: Tom Verkozen

Why We Love Where We Live - Reason #90: The Angel in the Bay

2011-01-21T16:12:00Z

Photo by: Marcel Marchon

In the middle of San Francisco Bay, just a mere 10-minute ferry ride from Tiburon, sits Angel Island State Park, a wonderful natural resource offering recreation and adventure, spectacular views, scenic beauty and a rich history.

The Island’s beauty is captivating and enhanced further by the beauty that surrounds it: 360-degree views of the entire San Francisco Bay, including the San Francisco skyline, Marin County, Mt. Tam, the East Bay and all five Bay Area bridges. The best way to enjoy the views is from the top of Mt. Livermore, the Island’s highest peak. Starting at Ayala Cove, where the ferry disembarks, you have a few options for climbing the 781 feet to the top of Mt. Livermore, as the island is navigated by 13 miles of foot trails and fire roads. While it may sound daunting, the trek to the top only takes about 2.5 hours and the diverse terrain leads you through shaded woody areas and along coastal trails that let you take in the panoramic views. You also may encounter deer and other wildlife along the way. About halfway up, depending on your route, there’s a nice bench where you can rehydrate and look across the bay at Tiburon, Belvedere, Sausalito and the Golden Gate. Once you reach your destination, there are several picnic benches where you can enjoy lunch or a snack before working your way back down. But don’t leave before going to the platform on the top and spinning in a circle to take it all in.

Of course there are many other ways to enjoy the Island’s 740 acres. You can walk or bike the perimeter, take a tram or Segway tour, rent a kayak and glide around the Island, picnic, or beachcomb the secluded and sheltered shores. Not to mention, in an only-in-California way, just relaxing at the oyster bar with live music. How many state parks can boast that? And for those who don’t want to leave at the end of the day, there are nine campsites available for overnights.

Photo by M@

Because of its strategic location, Angel Island has seen many inhabitants and visitors over the years, from Coastal Miwok Indians to Chinese Immigrants to World War II POWs, making it a popular destination for history buffs and school fieldtrips. Several tours highlight the history of the island and the stories behind the historical sites, including the United States Immigration Station.

What a treat to have one of California’s most beautiful parks just a ferry ride away.

To learn more about Angel Island, check out their blog, flickr gallery and Facebook page.

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

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Posted by: Frank Howard Allen Realtors

When Will Housing Come Back in California? Five Experts Offer Their Views

2011-01-20T18:53:00Z

I get asked all the time about when the home prices will come back in California as there has been such a deterioration in home prices.

I read a recent article from the LA Times where the author, Alejandro Lazo, interviewed 5 experts to get their input. The article can be found here.

The forecasts range from the pessimism of a foreclosure specialist to the optimism of the chief economist for the California Association of Realtors. Here’s just an overview:

Richard Green, director of the USC Lusk Center for Real Estate, predicts home prices will remain flat in 2011.

Leslie Appleton-Young, chief economist for the California Association of Realtors, predicts home prices will rise 2% in 2011.

Bruce Norris, president of the Norris Group in Riverside, expects home prices to fall another 5% in 2011.

Emile Haddad, cheif executive of FivePoint Communities Inc.,expects home prices to “stabilize” in 2011 but declined to make a specific price prediction.

Christopher Thornberg, founding principal of Beacon Economics, predicts home prices will remain flat in 2011.

As you can see, their predictions are all over the place and there is no real consensus between these 5 opinions. You would have to have a crystal ball in order to really predict the future of 2011.

The signs that I look at generally pertain to what’s around the housing market. First of all, the stock market has recovered to the highest level of stock prices since June of 2008, which is a strong indicator of a positive consumer market; people are feeling better these days about their stock portfolio. Another indicator is what’s happening at retail. The car market has finally rebounded across the board and sales are positive from almost every major car maker out there. Finally, retail sales during the November-December time frame were up 4.5%, indicating people are spending money again and have a more positive attitude these days towards their finances.

My view is that overall everything will improve and home sales will increase this year. With more activity in the marketplace, prices should be generally stable from the 2010 lows, but I really don’t look for them to rise by any significant level.

Interest rates have started inching up, but they are still unbelievably low, so I think if you are thinking about buying a new home or moving up, it will continue to be a great year to do it!

Posted by: Rick Smith

Staging for The Best Advantage: Selling a Warm House

2011-01-17T00:00:00Z

Let’s talk about staging homes …

Staging in order to sell a home comes in two formats: a furnished home, which frequently needs to be ‘thinned out’ so buyers can concentrate on what’s there, and the vacant home, which needs to be ‘warmed up’ so buyers can see that it will work for them.

When agents tell sellers that they need to stage a home … whether the home is furnished or not … there’s a genuine reason … staging helps in gaining the best advantage … the key is that staging helps buyers imagine living in the home.

Here’s the deal: If the home is cluttered, the buyers look at the ‘stuff’ … if the home is cold and barren (visually) the buyers don’t connect, they rush through and leave. Finally, if the home is cold (physically) buyers rush through and leave …

There are home sales that radiate (warm word, eh?) success, fun, and moments to cherish and remember … as did 12 Barber in San Anselmo … which went into escrow last week (YES!) … and in doing so it brought back a walk down memory lane… the memory of a sale in Sausalito two years ago with Tom Davis representing the buyer … the pattern was the following …

I was referred to a seller who had had their property on the market twice without selling it. I insisted on two things: staging and leaving the heat on (timed, of course, an item that might cost $150/month … a critical expense … especially since today when I went through two COLDDDD houses).

As soon as the property was staged I emailed all of the agents whose business cards I had found in the kitchen drawer.

Tom Davis called, said, ‘Wow!’ (or something to that effect) and showed the property to a client … a client who had seen and rejected the property in the past. Yes, indeed …. the sale was put together … a reminder that the ability to feel at home, warm, comfortable is a function enhanced by the warmth … physical and visual.

12 Barber in San Anselmo has a similar story …. A story presented well in the pictures that follow: Prior listing (before pictures) …. Staging (after pictures) … that and the heat was left ON.

Same story, different agent, this time Ken Fowler … different buyers with one great similarity …. They’d seen the property before and didn’t like the energy … obviously the staging (along classical feng shui lines) made a world of difference … the home became known as the home with the Ka Ching Doors. Here are the before and after photos.

There’s more to the story … people have asked about the treatment we did to the ceilings and the flooring … we didn’t … the fan was replaced with a light and the dark walls, which absorb light, were painted … the warmth built itself up and the light brought the home to life as you can see.

So … do you have a staging story to share? Let me know and I’ll post it …

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

Posted by: Tom Verkozen

Touring Marin County: What's Hot and What's Not

2011-01-14T00:00:00Z

Thursday, January 13, 2011 … a bit of rain and 78 homes open on the Realtor tour … 31 of the homes had an agent present … maybe ten of the homes were new to the market …. and off we went, Michele Barton and I … laughing, munching, seriously having fun and catching up on the Marin world of real estate … smiling at the quality of our office and the great stats for describing last year …

Back to the tour ….

Best value went to Lindy Emrich with 30 Echo Ave … $869,000 for a beautifully remodeled three bedroom home in Corte Madera … We considered, briefly, seeing 74 Summit, held open by Kathleen Daly … with its walls of windows and views but we had too much to see, so off we went to Bea Newhall’s 6 Ace Ct in Fairfax … a two bedroom condo for $299,000 … wow, the prices! …. That rang true as we passed Oak Manor … 40 Stevens Ct was open at $1,525,000 … and Julie Leitzell has a reward for the selling agent … a 3.5% commission … thank you, Julie … wish I had the buyer you’re searching for …

For location … 110 Diablo Drive off of Goodhill in the Kent Woodlands … $1,495,000 for a huge three bedroom home with a two bedroom unit in the land of great schools … here’s wishing Mary Saxe and the owners a great sale to start the year …. This could be a good family compound candidate so if you want to see 110 Diablo, let me know!

Another we didn’t see is 98 Cornell in Larkspur … again reduced by Bob Ravasio … now $1,419,000 … near JJ Davis’ new listing (you want to know, let me know!) …

As we passed by 21 Laurel in San Anselmo … Kay Ford’s really cute cottage-style home near where I lived on Yolanda Drive … I thought, ‘Hey, Kay, $665,000 sounds good to me!’ and passing Jonathan Marks’ 1026 Sir Francis Drake cottage/recording studio for $499,000 … there are some bargains out there!

(Click to Enlarge)

Let’s go shopping!

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

Posted by: Tom Verkozen

Real Estate in Ross, CA: Fabulous Homes and Family Compounds

2011-01-11T19:53:00Z

In 2010 there were twenty homes sold in Ross, CA. These ranged from Patti Cohn’s listing (and sale) at 102 Wellington which jumped out the door at $352 per square foot … $750,000 … to three homes – all of which could’ve been family compounds … three homes that sold for more than $5M … There’s been a big pick up in the top end of the market ($5M plus) in the past year… There was Isobel’s 10 bedroom White-Maybeck listing at 1 Upper Road that closed at $14M ($1,217 per square foot) … So, Isobel, did it include the train set? …

And there was John McGeough’s beauty at 7 Laurel Grove that closed at $828 per square foot … We all know that one, right? … $8M for a 6 bedroom home to the stars … 87 days on mls …

And 170 Laurel Grove … 7 bedrooms by Laura & Kristin that went for $840 per square foot …. Started its MLS life at $6.750 and sold at $5,175,000.

Currently there are an even dozen homes on the market in Ross … two awaiting moving vans (12 Canyon, an 8 bedroom family compound listed at a smidgen under $10M and 58 Shady Lane, five bedrooms listed at $2.275 by Donna Goldman … only on the market 32 days before going pending) … and two of the other ten in escrow, light … Milann Mushet’s beauty at 41 Redwood, now at $1.2M awaiting some approvals and 24 Allen, listed by Linda Tull, and subject to the sale of another home … Am I right, Linda?

For a quick snapshot of the Ross market …. With the inventory down … hey, did you note that 28% of all homes in Marin were in escrow? … in Ross it’s 4 of 12 … 33% … Time to go shopping?

Got questions? I’d love to hear from you.

(Click to Enlarge)

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

Posted by: Tom Verkozen

Why We Love Where We Live - Reason #89: Marin Rocks

2011-01-11T19:43:00Z

Joan Baez performing at the Kidzstock
Music Festival in Fairfax,
June 19, 2010
Photo by Colleen Proppe

Decades ago, people recalled a larger-than-life personality - none other than Janis Joplin - playing acoustic guitar for nursery school-aged children. Or so the legend goes. Many longtime residents of the North Bay have their favorite music “celeb” encounter stories. Whether experienced firsthand, heard from a friend of a friend, or urban legend, hundreds of locals have stories about running into Carlos Santana, Sammy Hagar, James Hetfield or Huey Lewis at the neighborhood hardwood store, market or coffee shop. Others recount sightings of Grace Slick, Van Morrison, David Grisman, Tom Waits or Jerry Garcia, all legends that have walked amongst us here in the North Bay.

You may not think of the North Bay as being a hotbed for great music acts or the artists behind them. Of course there are wonderful venues like 142 Throckmorton, George’s and 19 Broadway that give us the opportunity to enjoy the local music vibe without crossing a bridge. But a close examination shows there is a rich music history ingrained in the fabric of the area: the Grateful Dead, Journey, Jefferson Airplane and Starship, Steve Miller, Bonnie Raitt and many others have contributed to the musical culture in Marin. Otis Redding is said to have written “Sitting On the Dock of the Bay” while renting a houseboat in Sausalito in 1967; concert promoter Bill Graham resided in Corte Madera and hosted guests like Eric Clapton and Jim Morrison. Other musical luminaries such as Aretha Franklin, Whitney Houston, Dave Mathews Band, Fleetwood Mac, Stevie Wonder and Prince have come from around the world as visitors or temporary residents to record or mix music at one of Marin’s many recording studios, including The Plant Studios in Sausalito and Tarpan Studios in San Rafael. San Rafael is also home to Metallica’s studio, HQ, where they recorded pieces of their latest album Death Magnetic, as well as the Grateful Dead’s legendary Front Street studio, Club Le Front, which was made famous by the album Shakedown Street.

All of which begs the question, “How did all of these famous musicians find their way to the North Bay?”

The Marin History Museum Music Center in downtown San Rafael soon hopes to provide the answer. A project that has been in the works for several years (the museum was projected to open in fall, 2010, but the date has been delayed), this state-of-the-art music exhibition, performance and educational space will explore and pay tribute to the county’s musical heritage. The overarching theme of the museum is “Marin as an inspirational place,” and as Chief Curator Dawn Laurant told the Marin Independent Journal, “We’re looking at what drew musicians here, why so many made Marin their home…Why they saw it as a place to write, record and play their music.”

The Music Center will kick off with the long-anticipated Marin Rocks as the inaugural exhibit and will proceed to offer a variety of exhibitions, educational programs, workshops, film screenings, special presentations, and live shows.

We’ve opined many times that Marin is truly a beautiful place. The number and variety of artists who have made it their home and found inspiration within are a testament to that.

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

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Posted by: Frank Howard Allen Realtors

Cost of Remodeling vs Value

2011-01-11T15:06:20Z

I am often asked about the costs of remodeling, and how it affects the value of the home.

Obviously costs vary from area to area, house to house, and job to job based on materials and labor. I did run across a great web site, though, for a person to get a general understanding of what the average costs are and what it can do to the value of your home. Please go to: www.costvsvalue.com to take a look.

The site gives a great explanation as to what a job may cost by looking at most areas of the home including roofs, decks and doors. What I also like about the site is that it gives you an idea of what you might recoup in the value of your home when you get ready to sell.

The first thing that is clear in almost every case is that you won’t necessarily get the cost of the remodel added directly to the value of your home. With that said, it looks as though a kitchen remodel will add the most to your home at somewhere from 69% to 73% of the cost recouped in the increase in value to the home, depending on what you do.

Probably the first thing to realize is that you should perform a remodel for yourselves as a long term investment to the home as it will add years of enjoyment in whatever you do. Secondly, if you are planning to sell your home, you need to realize what your competition is like. When you decide to put your home on the market, you should go out first and shop your competition in your price range to see what the comparable properties look like. You want to be careful that you don’t over-improve for your market, but you also want to compete in your price range.

If your home is badly in need of a remodel or update, you run the chance of not selling at the price it may deserve. If a Buyer compares your home with others in the neighborhood, sometimes just being under the competition by $30,000 to $50,000 will not matter. A lot of buyers really want “move-in ready” homes and don’t want to spend more time and money on remodeling costs. They would rather pay a little more to get something they can live in for 3 - 5 years before they start spending additional money on major work.

I have always said to try and build in a “Home Maintenance Fund” so that you can take care of things as you go along, and help avoid any huge issues down the road. Saving money for prevention and maintenance will save you tons farther down the line.

Once you decide to remodel, give me a call: I would be happy to recommend people in the industry to help you with any of your needs.

Posted by: Rick Smith

Motivated Owners: Marin Bargains, Foreclosures, Short Sales

2011-01-10T21:48:00Z

Whew! There I was, zipping out of the office to meet clients who, with the help of their trusted team of advisors … CPA, attorney and real estate agent … are restructuring their business and their lives ….. when Ken Fowler calls to let me know that he has an offer on the Home With The Ka Ching Doors …. 12 Barber … joy of joys, a solid, experienced agent with whom to work …. Ken and I’ve had several transactions together in the past and he invited me to teach a segment of his real estate class at the College of Marin … Not that the offer is a great surprise … I met his buyers nearly a month ago … they’d seen 12 Barber before and rejected it … yes, the home was a bit ‘low energy’ … Out the door … as I said … to see the foreclosure property at 240 Redwood, San Anselmo …. Listed by Lisa Dunlop for $189,000 …. Memory lane … this property was on the market in 2007 as a build to suit for $895,000 … seven years prior to that …. Yes, there’s a story in this … it’d sold for $285,000 …. Now this difference in price $189,000 vs $895,000 is a bit of apples and oranges as a $500,000 plus reduction … but how about these …. 21 Ellsworth, Fairfax, is a great property, listed by my friend Carol Scott, and it has been reduced from $2.295M to $1.799M … not quite $500,000 but dang close! …. Five acres. Also in Fairfax, 40 Stevens Court, listed by Julie Leifzell, is a very cool property that began its current sales process at $2.195M and is now at $1.525 … five bedrooms. On the mountain … the price for 50 Washington Park, which sold for $1.255M in December 2000, has plummeted from $1.795 to $1.395 … five bedrooms Near the Lucas compound, in Nicasio, 35 Los Pinos, which was on the market for $1.75M is now bank offered at $823,650 … odd price, that … Indeed, there are other properties that have had their prices refitted … yes, there are bargains and just normal, wonderful, unstressed, non-bank sales as well. Keep posted. For more information, please visit www.tomverkozen.com.

Posted by: Tom Verkozen

Why We Love Where We Live - Reason #88: Architecture à la Carte

2011-01-07T17:25:00Z

In a previous post we wrote about how one can choose weather a la carte in the North Bay, given all the micro-climates that exist in our communities. The same could also be said for architectural styles. Touring through Marin and Sonoma neighborhoods is like perusing the pages of an Architecture 101 textbook.

One can find cozy, formerly summer-only cottages, charming, detailed Victorians, and classic California Craftsmans. Single-level ranch homes fill many hillsides, Modernist Eichlers extend through whole blocks, and ultra-contemporary masterpieces call for your attention with their sleek lines and walls of glass. Mediterranean and Spanish-style homes are found close to the water or seemingly tucked away in “secret” neighborhoods. Beach homes dot the coastline, including those found in and around Sea Ranch, with their own unique design meant to blend harmoniously with weather and topography. Not to mention the most unique type of homes, the floating homes found in the Sausalito harbor.

But the choices don’t stop there. Our North Bay geography means many of these styles are available on a variety of property settings, from ocean front or bay front, to high on a bluff; from nestled on the mountainside or in a redwood forest, to bordering a lush golf course or vineyard.

Eclectic - describes our homes, our neighborhoods, our weather and us. And it’s another reason why we love where we live.

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

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Posted by: Frank Howard Allen Realtors

Inventory is Low- Now is a Great Time to Sell

2011-01-06T17:58:00Z

Inventory is generally low early in January … this year is no exception … in all of Marin the number of available (active, not in escrow) single family homes has dropped to 535 … 205 are in escrow … so of the 740 single family homes on the market 28% are in escrow … that’s huge! And as I went on tour today, looking at homes in central Marin, there were a few gems … Abby Tanem had a beautifully updated home (a relist) open at 16 Tamal, San Anselmo … new price, better showing … there were four properties in Larkspur… including 140 Tulane, listed by Jason Bousquet … a well located, four bedroom, corner home with great finishes for $1,699,000 … and one, 7 Woodhaven Road in Ross …. Not a lot to look at …

To explore the market a bit more … look at Larkspur … at the end of the year the median price of the (five) homes sold was $900,000 …. Compared to a year ago in July when the median was nearly twice that number … ahhhh, the joys of a small sample.

Here’s a bigger picture of the Larkspur market … enjoy … and share your thoughts with me …. Look at the inventory picture, explore the prices … and go to my website if you want to search specific properties … or call me and I’ll rattle them off for you.

(Click to Enlarge)

One home I enjoyed seeing was Marty K’s own home, near Chalet Basque, and SHE have me and my touring partner Michele Barton, a golden dollar. A dollar saved is a dollar earned … and Marty’s home is a cutie …. 28% of homes in escrow … what a wonderful time to sell!!!

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

Posted by: Tom Verkozen

Why We Love Where We Live - Reason #87: The Wind in Your Sails

2011-01-04T17:39:38Z

The San Francisco Bay is considered by many to be the best place in the world to sail. Our place on the map has made for a rich maritime history, and each year the sailing season opens with much pomp and circumstance during the annual Opening Day on the Bay, with the traditional blessing of the fleet and boat parade. It is truly a sight to see hundreds of boats take to the water that day with their colorful sails and energetic crews.

There are several yacht clubs in the North Bay, including Belvedere’s San Francisco Yacht Club, the oldest yacht club in North America west of the Mississippi, Tiburon’s Corinthian Yacht Club, San Rafael’s Marin Yacht Club, the Presidio Yacht Club, the Inverness Yacht Club and the Sausalito Yacht Club. These organizations offer scenic harbors, social events, and organized races, including one that we are proud to help sponsor, the annual Leukemia Cup Regatta. While a relatively new addition to our Bay, this race is held in the fall and is now ranked as the top fundraising Leukemia Cup nationwide. In 2010, the San Francisco Yacht Club, for the fourth year in a row, was the top fundraising club in the US for all Leukemia Cup Regattas. This is a true testament to the dedication of the local sailing community.

Our own Bill Smith at
the helm of his boat

It’s no wonder that the most prestigious event in all of sailing will come to our waters in 2013. The 34th America’s Cup will draw the top sailors and yacht designers from around the world to the city of San Francisco and surrounding areas and will provide a general uptick of interest in the sport. (The Cup is said to provide the third largest economic impact in sport to its host countries, behind the Olympics and soccer’s World Cup.) This is a tremendous honor for San Francisco, which will be the first US host city since 1995, and will bring the Bay Area to the forefront of a national stage.

To stay up to date on all things Sailing in Marin, visit the appropriately named blog maintained by Marin Independent Journal sailing columnist Michelle Slade who keeps tabs on news, racing results and other stories from yacht clubs around the bay.

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

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Posted by: Frank Howard Allen Realtors

Mixed News on Foreclosures and Short Sales and Thoughts on Recovery

2011-01-04T00:00:00Z

Hey, the Dow bounced up over 1% yesterday … real estate in San Francisco proper is doing quite well (outlying areas not quite so well) …. and there are other items of a positive nature showing their heads as well … but before you go celebrate … look to Europe to taste the international nature of the financial situation …. Then look at local foreclosures … (which are not a lagging indicator) …. and note that they are jumping. In Seattle notice of defaults (NODs are the first major sign of a home going into foreclosure) rose a robust 71% last month … and the Financial Times led into 2011 with a ‘Spike in foreclosures despite talk of recovery’ headline on page one … they reported that ‘as fewer borrowers qualified for loan modifications’ compared with the 2nd quarter, the 3rd quarter rate of foreclosures nationally increased 31%. But not all is shown in the headlines.

In yesterday’s blog posting I gave you the example of a top-end Belvedere home … 276 Beach … which sold in’08 for $4.6M and just now, after nearly a year on the market, for $3.3M …. Something around 30% down in two years …. And you’ve certainly noted either next door to you, here in this blog, or elsewhere … homes selling for far less than they sold for at the peak. Take a gander at the condos in Marin Lagoon …. There are two short sales going on there in the smaller units …. Asking price $299,000 …. One of which sold at $475,000 three years ago … how typical is that 30% drop in value? Quite typical.

As far as loan modifications go … look out … don’t count on them … best figure I’ve heard (but not substantiated) is that 1 in 30 applications for a loan modification is successful. You need to doubt any statistics in this arena because the lenders are relatively inept in communications AND most people who are trying for modifications have applied several times ….

From my crystal ball to your ears…Prices have not stabilized. Demand is still lacking. More foreclosures are in the making and homes are ripe for the taking by lenders as owners continue to fall behind while in trial modifications or simply applying ….

On the other hand … If you want to sell a property but are thinking, “let’s hold on until prices bounce back” … you had better be talking long haul … Think: even if prices were to increase 3 to 4% per year, making up for a 30 to 40% drop will take many moons.

It’s a new year … go back and read the best good cheer you can find …. And please … call … so we can talk … or respond on the blog, and we can dialogue … Blessings, from my home to yours ….

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

Posted by: Tom Verkozen

Negotiating the Sale

2011-01-03T17:24:44Z

Probably one of the most important steps in buying your new home is negotiating the sale. An important part of this is to get your Real Estate Agent to find out as much as possible about the seller. There are several questions you can ask and the answers can be quite revealing.

“Are the Sellers motivated to sell?”

Are they ready to come off their price in order to make the sale? How long has it been on the market? If it’s been over 60 days, then perhaps you have sellers willing to negotiate a lower price.

Has the home had previous offers, and if so, what were they? If the Sellers haven’t accepted a low offer before, then plan on a price that may be closer to the asking price.

Do the Sellers really need to sell? Have they already found another house and do they need to get into contract quickly in order to close and buy their new home?

Is this a “short sale”? Many Sellers need to move quickly in order to avoid foreclosure and may go lower in order to make it happen.

Are there any past disclosures or inspections that the Buyer can look at? If there have been previous inspections, and the Buyer has seen them prior to getting into contract, the problem issues may have already been identified and the price may reflect repairs that are needed, so don’t count on getting allowances after the fact. However, I always suggest the Buyer get their own inspections, as there may be additional issues that pop up or the cost of repair may be greater than originally indicated on the previous reports. Then you have the opportunity of getting additional allowances towards the selling price or closing costs.

Are the Buyers selling because of an employment-related move? Sometimes the Sellers may be receiving additional incentives from their employer if they sell the house, and may accept a lower price in order to get into contract.

Are the Sellers empty nesters that are downsizing to make a profit in order to retire more comfortably? Sellers that are downsizing and don’t have to sell may be holding out for the greatest profit on their home and may not want to reduce their price at all or have a small threshold of a price reduction.

Is this a Trustee sale? Maybe the beneficiaries just want to dump the home they have inherited and want to move quickly in order to not pay for taxes, additional repairs, house payments, etc. Great news for a Buyer.

Buying and Selling a home is an emotional experience. Many Buyers and Sellers view negotiation as adversarial. You should try and look at this another way. Turn this around and look at this as a process where both parties are trying to reach a common goal - the sale of the property. Buyers should anticipate a process that may involve several counter offers, but if you really love the home and want to buy it, don’t be the one to walk away from the table until you have exhausted all possibilities of trying to make it work.

Above all, choose the right agent, such as myself, who asks these questions, and has experience in negotiating in each of these situations. The best agents will give you the best advice on negotiating with both the Buyers and the Sellers to make sure you get the best deal on your new home.

Posted by: Rick Smith

Got Cash for a Good Real Estate Investment? Try Belvedere and Tiburon.

2011-01-03T00:00:00Z

Shopping for a real estate investment property for some rather cash flush clients …. who do not want to or need to complicate their life … knowing interest rates on income properties are under five percent … This year’s shopping began with the six-unit building on Ross Avenue, San Anselmo … although one bedroom rentals do have a higher rate of turnover than larger units, these are pretty townhouse-style one-bedroom apartments in a great location. No complaints of riff-raff, no complaints of noisy tenants above, or broom stick pounding people below … rather nice but also rather pricey, I thought. Listed twice at $1.5M … Pricey, the market thought as well?

For numbers, first, I talked to Russ Peterson, friend and review appraiser for Luther Burbank Savings … Ball park, I asked? Russ had me talk to Sam Shummon in their lending department. Sam and I talked loans, loan-to-value ratios, indexes , loan terms … the man is very clear … Luther Burbank will loan up to 70% of the purchase price on a five-year fixed mortgage at less than 5% interest … thus at a purchase price of $1.5M they’d loan $1,050,000 ….

BUT the million dollar loan is an assumption. Thus Sam did an analysis of the income, making more refined assumptions, popping in a 5% vacancy rate, etc … Conclusion: a buyer would need to bring in 50% cash because while this looked like a vanilla building (meant in the most positive sense) in a great, close-to-town location with seemingly no deferred maintenance (but little upward mobility in the rents) it will only cash flow at a level sufficient to carry a loan in the low-$700,000s. Putting $800,000 to work for minimal gain is not likely a good investment.

What will the seller do? I don’t know …. Depends upon their level of need for their investment (it is priced at close to the same price I believe they paid for it a few short years ago) and their need for selling.

Onward …. There are other properties …. Other investments …. Other opportunities …

Speaking of others … One great buy mentioned in an earlier blog, 276 Beach, Belvedere, listed by Chelsea Hardesty, sold …. in 1996 for $1,815,000 … in ’08 for $4.6M and just now, after nearly a year on the market, for $3.3M …. Something around 30% down in two years …. Certainly a grand property, probably a good buy … and one of two dozen homes over $3M to sell in the past six months … Hey, in that time frame two homes in Belvedere and one in Tiburon scaled the $7M mark ….

And the biggest recent sale, another blog-mentioned ‘great-buy’ Tiburon home, sold for over $11M, cash.

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

Posted by: Tom Verkozen

Marin County Single Family Homes: The Influence of Bank Influenced Sales

2010-12-29T13:55:47Z

Here’s a quick December snapshot of single family homes … excluding condos, just because … during the month of December, so far …

There are, on the market, 796 homes … of which 225 are in escrow … and slightly more than half that number have closed escrow (118) … Keep in mind that the end of the month/year provides a spurt of closings.

Of the nearly 800 homes available, 86 are bank-owned and 178 are short sales … of the 796 homes listed, when you take away the 264 that are directly lender influenced (short sales or bank-owned), you are left with 532 homes that are available and being sold without direct lender ties …

What is all the repeating of ‘direct’ ???? … whether or not the bank owns or is controlling the sale (a short sale needs bank approval), the price that a home sells for is heavily influenced by the bank-controlled inventory … look at the 225 homes in escrow .. 103 of those are short/bank-owned properties … and their sales price will determine the price an appraiser will arrive at in valuing the 122 not short/bank-owned properties.

Selling remains tough … but workable. Buying remains an elegant domain for the buyer who is willing to be patient and go for quality. Welcome to the end of the year sales in real estate … Now back to family … my home is filled with joy and yes, I’ve pretty much ignored real estate (aside from some showings of 12 Barber, San Anselmo and a few clients who’ve checked in, getting ready to move forward in 2011).

Happy New Year … and do call, email, blog and say hi!

Posted by: Tom Verkozen

Great News - Energy Tax Incentives for 2011

2010-12-21T00:00:00Z

A bill is being signed today or shortly thereafter extending the energy tax credits for 2011. Take a look at the article to get the most complete information.

This is especially important for those who may have just bought a new home or anyone thinking of improving their home by buying a new dishwasher, clothes washer, refrigerator, furnace, water heater, or double pane windows. The incentives vary from product to product, but these credits could save you lots of money on both the item and the high costs of energy.

As oil prices continue to rise, these products could save you thousands over the life of the product you buy.

With all the great sales events that are happening during the holidays, you could really get great savings out there. And if you need new windows, don’t hesitate to ask for a winter discount, as most companies are hungry this time of year for business and offer some great incentives to buy prior to spring.

So if you are thinking about new appliances or a little remodeling, go out and take advantage of the savings, they are being extended to 2011.

Posted by: Rick Smith

In Support of Our Community: Amazing Grace ... John Pederson, Judy Kaufman and George Lucas

2010-12-20T17:34:00Z

Below is a snapshot from the shop of the king of strings … our local, all instruments with strings, repair shop … imagine all the guitars, banjos, mandolins and ukuleles that John and Judy have brought back to life at Amazing Grace. P.S. John self-published a ‘world of music meets New York’ novel …. an entertaining read. I hope a few of you … neighbors … write to San Anselmo in support of George Lucas’ plans …. To continue the beautification of that formerly derelict strip on the Miracle Mile by moving Amazing Grace into the to-be-renovated adjoining building … please? This photo was shot late on a dark and stormy night at John and Judy’s annual party/string jam … stormy it was … buckets …. puddles … And even while I was tempted by the perfect night shoot scenario… imagine this … 4th Street, Berkeley bedecked in blazing multi-colored lights … a chance to be there, shooting the street amid the storm, at night without cars, with crisp reflections dancing from the puddles right into my lens …. But the winds were gusting, registering a real howl and yours truly, having just told of my Vietnam ‘hot cross buns’ adventure, knew I needed to let Reason overcome that edgy picture, asking myself, why push the limits, Mr. artist man …. The pristine streets of San Anselmo are safe enough … but the Richardson Bay Bridge in my little convertible in high winds …. Let the storms continue …. I’ll catch the next wave. And if you love where you live, salute the town Council serving us … write in support of all things good and great … enough … Now, after an email to London where the branches are loaded with snow and a five mile trip takes four hours … now I’m off to set a fire in the fireplace at 12 Barber and greet potential buyers (come on Ken, write that offer! … a holiday joy for your dear buyers in So Cal …) … Happy Holidays!

Posted by: Tom Verkozen

Why We Love Where We Live - Reason #83: The World’s Most Beautiful Commute

2010-12-17T16:52:00Z

Let’s face it, there are probably very few people who actually enjoy the morning drive to work. You haven’t had your first cup of coffee yet. There’s traffic clogging the road. The radio is filled with drivel. But here in the North Bay, that pain subsides a bit if you take the time to look up and pay attention to your surroundings.

Work in the City? Sure, the $6 bridge toll to cross the Golden Gate is a hard pill to swallow ($5 with a Fast Pass!) – but few sights are more iconic and spectacular than the Golden Gate Bridge, an internationally known landmark, and acclaimed as one of the world’s most beautiful bridges. Tremendous towers, sweeping cables, an impressive span, and a red hue that glows in sunlight, the Golden Gate Bridge is a treasure for the senses. And what’s more, the Bridge seems to act as a frame for the view that surrounds it: crashing waves of the ocean and Bay, rolling hills of the Marin Headlands, the bright white San Francisco skyline, rugged Angel Island. Basking in the sun, cooling in the fog, glowing under a sunset, or illuminated against the night sky, the Golden Gate Bridge is a stunning treat.

Another way for our city commuters to start the 9 to 5 is by Ferry – with locations in Larkspur, Sausalito, Tiburon and Vallejo serving the North Bay. Before the Golden Gate Bridge was completed in 1937, ferries were the only way for residents and tourists to cross the Bay. Nearly 75 years later, ferries remain a practical and popular form of transportation. And if you take a moment to look up from your phone or iPad, it’s a wonderful way to enjoy the sights, smells and sounds of the Bay – seagulls flying overhead, dolphins frolicking, and fellow boaters navigating. You’ll pass by beautiful waterfront homes, take in the imposing Alcatraz and land at the San Francisco Ferry Building Marketplace, located along the Embarcadero. Recognizable by the 245-foot-tall clock tower modeled after the 12th century bell tower in the Seville Cathedral in Spain, the Marketplace is a gem in and of itself with its delicious restaurants, and unique stores and food purveyors.

If you commute within the North Bay, the sights found off the 101 and 37 aren’t too shabby either. Richardson Bay, Mt. Tam, peaceful grazing cows, lush rolling hills, acres of colorful vineyards - all the things that add to the scenic beauty and the list of reasons why we love where we live.

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

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Posted by: Frank Howard Allen Realtors

Market Update: North San Rafael 94903

2010-12-16T00:00:00Z

As I drove around Terra Linda, getting ready to counsel a client and viewing homes that have just come on the market THE THOUGHT struck …. Update northern San Rafael, Tom … So here you have it … there’s a set of graphs at the end that cover all of San Rafael.

In the past six months there’ve been 134 sales in the 94903 area … which means that the 153 homes currently on the market represent about seven months of inventory … That’s reasonable, even if that’s a few months higher than for all of San Rafael … and then more good news … 13 of the homes on the market (nearly 1 in 10) are simply awaiting a moving van … they’re ready to close, hopefully before Christmas?

In the past month there have been 29 homes brought onto the market while 34 were reduced and 31 sold … that’s brisk selling … and a reduction in inventory. All of this is good for sellers … especially compared to some towns that are simply not selling right now.

The least expensive property is the one bedroom condo at 260 Merrydale … listed at $99,000 … the most expensive is a subdivision that has been on the market a smidgen over six months … 277 N. San Pedro Road is a great ready–to-build opportunity for a builder at $2.750M … will take a bit of processing through the courts but ….

Why does this area sell so well? Schools, reasonable prices (the most expensive property in escrow is 101 Pikes Peak, just a tad over $1.1M) …. There are, of course, two homes on Leona offered in the mid-$2.5M range … time will tell.

Here are the statistics for all of San Rafael (note the inventory at 4.4 months)… and as always, if there is something specific you know, let me know!

(Click to Enlarge)

Posted by: Tom Verkozen

Why We Love Where We Live - Reason #82: Lacing Up

2010-12-15T23:21:00Z

Dipsea Trail Sign
Photo by Kristie Wells

Dipsea Race
Photo by K Gam

Dipsea Trail towards Stinson Beach
Photo by Miguel Vieira

Marin Headlands. Tennessee Valley. Muir Beach. Ring Mountain. Baltimore Canyon. Muir Woods. Bootjack. Pantoll. Rock Spring. East Peak. Phoenix Lake. Deer Park. Bon Tempe. Lake Lagunitas. Samuel P. Taylor. China Camp. Big Rock Ridge. Indian Valley. Mt. Burdell. Olompali. Bear Valley. Audubon Canyon.

With over 600 miles of trails and plenty of open space, Marin County is home to one of the finest urban park systems in the world. We’ve talked extensively about things to do outdoors as we’ve gone through our list of why we love where we live: surfing, cycling, golfing, and all the ways to get up and go. We’ve also mentioned some of our favorite recreation areas: Ring Mountain, Muir Woods, and Spring Lake.

But one of the things that we love the most is that if you’re looking for an easy, economical way to exercise, relieve stress, or simply enjoy some fresh air, all it takes is a pair of good running shoes (and no surprise, the North Bay has plenty of places to find those, too – check out Marin Running Company in San Anselmo).

In fact, the North Bay has long been home to a very active running culture. The annual Dipsea Race is the oldest cross-country trail running event – our fellow centenarian will celebrate its 101st run in 2011 – also making it one of the oldest foot races of any kind in the United States. Known for its difficulty and scenic beauty, the race takes off from downtown Mill Valley, goes up three flights of stairs as tall as a fifty-story building, and winds its way up and over majestic Mt. Tam along trails named “Dynamite,” “Cardiac,” “Swoop,” and “Insult Hill,” before culminating at Stinson Beach. However, despite the foreboding names, the Dipsea trail is a favorite amongst hikers and runners year-round and is also the location of the Double Dipsea and the Quad Dipsea races (yep, there and back four times, or 28.4 miles).

There are many other organized races throughout the North Bay. Whether looking for a 5K, 10K, half or full marathons, you can pretty much pin a number on your shirt on any given weekend. Check out active.com and do a search for upcoming races nearby. This is a great resource for runners – and fitness fans in general.

In addition to races, the local running subculture meets in organized clubs, such as the Tamalpa Runners Club whose Saturday morning runs commencing at the Mountain Home Inn are open to non-members – just show up ready to tackle 7-10 miles in those good shoes of yours.

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

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Posted by: Frank Howard Allen Realtors

How’s the Market? San Anselmo

2010-12-15T00:00:00Z

How’s the market?
… Before we get to the market …. My hat is tipped to Patti … damn it … :) :( :)… who ended our last email back and forth with the scream … IT’S TIME FOR US TO DO A DEAL! I’M SETTING MY INTENTION FOR 12 BARBER AND THEN SOME! … Look out, world! … How about the property in Sausalito that I’ll be listing shortly … First Barber, please, but this property on Bridgeway has great energy and five bedrooms (if you wish) with LOTS of extra space, potential and great parking … ideal for running a big home business? …

Onward .. yes, I recycle thru :( and :) … it’s okay to be _ and to say _ but enough emotions for that listing ….

I’m feeling like right NOW is a moment in time … a zip zap of energy striking … the sun is peeking out and a spot of rain due for the next two days … so I checked in on San Anselmo … 20 hits on 12 Barber in week five (total hits at 381 … averaging more than ten hits per day)– I thought someone would have fallen in love and acted with an offer by now – there have been, to my knowledge, three parties who’ve fallen in love … one grumpy husband ‘needs’ a two-car garage and Suzanna, his agent, has tried … so you offer a price that’d give you the cash to build the dang garage … or not … the other couple are coming back from Hawaii on Thursday, says Ken, their agent … So much fun to be having good product on the market.

How’s the market? San Anselmo … let’s get to the point … in the past 30 days the real estate market in San Anselmo has seen: seven properties brought on to the market; 18 properties reduced in price; Flourish here … NINE sold.

Another reason for the upbeat is that our little-engine-that-can office is chugging along quite fine … Jin is wanting to return (stop it! Relax … want a good read?) right now … and Rocky is saying, “Seven is all we ask. One sale a day.” I’d like to try taking that personally and do a sale a day for a week or two, then level out and breathe … and Marney is throwing great bashes … great meal for the office and a bit of improv … tis great.

Hey, keep your comments and emails coming … tis the season …

Posted by: Tom Verkozen