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

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

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

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

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

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

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

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

Happy Holidays!

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

Click here if you would like the full story.

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

Have a Wonderful and Happy Thanksgiving!!!

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

Posted by:  Rick Smith

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

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

Problem #1: Appraisal Comes In Too Low

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

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

Problem #2: Property Condition Issues

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

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

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

Problem #3: Loan Approvals

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

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

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

5. How long have you been doing this?

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

Posted by:  Rick Smith

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

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

1. Don’t Make Any Large Purchases

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

2. Disclose Everything When You First Apply for the Loan

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

3. Watch the Closing Dates

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

4. Review Your Closing Documents In Advance

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

You can read the complete report here.

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

Posted by:  Rick Smith

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

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

Posted by:  Rick Smith

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

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

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

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

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

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

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

Posted by:  Rick Smith

The 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

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

The economy continues to improve, and the stock market has defiantly turned around in a big way, but there seems to be a bit of uncertainty amongst the home buyers I deal with. There is always that one second thought surrounding the purchase of a new home…

“What if I get laid off and can’t make the payments?”

The good news is that the California Association of Realtors is now offering a program that pays the buyers’ mortgage if they are laid off. It’s called the Home Payment Protection Plan (HPPP) and is offered by REALTORS to sellers at the time of listing as an added incentive to prospective buyers. The insurance is paid by the seller and is completely optional. It covers both new and repeat buyers for 12 months from the close of escrow and provides up to six months of mortgage payments up to $1,500, depending on the coverage selected by the seller. A seller can pay $200 for six mortgage payments up to $1,000 or $275 for six mortgage payments up to $1,500.

Check it out when you get ready to sell. This could be a great incentive to a buyer who could be having second thoughts on a purchase and could help ensure that the seller gets his house sold and the escrow closed.

Posted by:  Rick Smith

Many times when working with buyers they ask me about when to lock an interest rate. While it’s difficult to predict (much like predicting when the housing market will peak or slide), here’s my advice.

With interest rates dropping into the 4 to 4.5% range this year, you can save a lot of money over the course of 30 years by locking in a great rate. This is sometimes hard to gauge, as interest rates can change two or three times in one day. Many buyers lock in at the time they submit their loan application, but others wait until only a few days till close of escrow. The length of the lock can vary from 7 to 60 days, and sometimes longer.  

Today, it is wise to lock your rate in for 45 days when you submit your loan package. With delays due to appraisal issues and lenders asking for additional information, it can take this long to close the loan.  

There are advantages and disadvantages to locking in a rate. If rates fall after locking, the lender probably won’t give you a better rate. However if rates rise, then the lender has to give you the lower locked rate as long as you close on time. Some lenders are offering a “float down.” This would come into play if interest rates were to drop between the lock date and the date your loan documents are drawn. The lender probably won’t allow you to go to the market rate, but something in-between. A float down is a one-time-only option.

As rates have an expiration date, it’s essential to provide as much financial documentation needed to qualify you for the mortgage as soon as possible, as it will speed up the process. Trust me, lenders are asking for much, much more financial information than they did several years ago. Ask your mortgage broker or bank exactly what the lender will require, like pay stubs and information supporting your down payment and cash reserves that may be in an IRA or 401k, because sometimes it takes a while to transfer these funds around. If you drag your feet producing additional documentation, it could jeopardize your loan and rate lock. Extensions in rate locks are sometimes granted, but don’t count on it. Try to get the rate lock in writing. Some lenders will do it and others only give verbal commitments, which are hard to enforce. 

Now is a great time to refinance not only because rates are low, but also because of fewer home sales and less competition to worry about in terms of getting the loan closed on time. Remember, one full point in interest will cost you up to $300,000 over the course of 30 years on a $1.0M home. Watch the rates, be prepared, and lock in to save money over the long haul. 

Posted by:  Rick Smith

Prior to the Real Estate correction, or should I say bust, of 2008, one of the single most important influences in deciding to buy a home has been location over price. Let’s face it, in Marin, the closer you live to the Golden Gate Bridge, the greater the demand for the home, and consequently, there is a higher price associated with the shorter commute to San Francisco.

The question is, now that the correction has happened, is location still the most important consideration?

With the recent craziness of so many distressed homes being on the market in places like the East Bay, Solano, and even Sonoma counties, it raises the question whether a fire sale mentality has swept the housing market. Thankfully, although Marin has had its share of distressed sales, most of the county remained fairly stable when you look at other parts of the state. If you examine most of the foreclosure areas carefully, most of the foreclosure activity that occurred last year and even this year was speculative; investors bought properties that were not in prime locations or areas at huge discounts from peak levels. The profitability of these investments will depend on the strength of the economic recovery. At one point it seemed like everyone wanted to buy a foreclosure or an REO, but when buyers really examined them, and had the ability to do inspections, in reality most of the wise buyers figured out they would have to put in $100,000 to $200,000 to make these properties desirable again, and then why not buy something that was in a great location at around the same ultimate cost.

Distressed properties that are fixed up still require a lot of cash outlay, and then you have to find tenants who can afford to pay the rents to cover the upfront expenses and taxes. In many cases, with the high rate of unemployment, this can be a risky situation. Although buying a cheap house can be a good strategy for investors, buyers that plan on occupying the home for the long term should not let price be the primary factor influencing their purchase. A home that won’t work for the long term is not a good deal if you want to move again in a couple of years. In fact you could lose money. As it does look like home prices may be stabilizing, they are not increasing at the tremendous rates of the 90’s and 2000’s. Just covering a move with closing costs and real estate fees could set you back more than if you would have found the right house in a great neighborhood, that stands a chance to increase in value.

Another thing to watch when lower priced homes don’t sell is incurable defects. A shared driveway, a home close to a freeway, a home that is two flights up from the garage, are all considered defects which you will never be able to solve. Remember, whatever you buy, you need to be able to resell it if you have to, and in a down market, this may be impossible unless you are willing to take a loss to sell it.

The bottom line is you really want to buy a home that will be in demand in ANY market. If you can’t find one that is in move-in condition, it’s better to find one you can afford that only needs MINOR improvements in a good location that you know will sell once you have made those improvements.

DON’T JUST BUY FOR PRICE!

Posted by:  Rick Smith

Many times I am often asked, “Will Green features pay off when you are selling your home?”

With all things being equal, the answer is: “If buyers have a choice between a house with low water and energy costs and one where the costs are high, they will probably choose the home with lower operating expenses.”

Most of my buyers today are pretty savvy about a lot of the features of energy efficiency and noise reduction, and most of my buyers generally take into consideration the cost of installing double pane windows versus buying a home that already has them. Installation for double pane windows can be expensive, so the ones that already have them definitely have an attractive selling feature. Let’s face it: homes in the Bay Area are expensive compared to homes in other parts of the country. So, if the buyers know there may have to be an additional outlay of money down the line, they will try to avoid it. On average replacing windows returned more than 75% of the total cost over the long run. Combine that with possible incentives, lower energy costs, and the appeal for when you sell, and it’s almost a no brainer.

Consider:

• A tight house prevents heat loss. Utility companies are are now offering rebates for installing weather stripping around windows, doors, vents, cables, and electrical outlets.
• Using a programmable thermostat and setting it to reduce output when no one is there or when you are sleeping will save another $100 or more per year.
• When you buy a new furnace or new appliances, buy ENERGY STAR appliances that meet high-level energy efficiency. Depending on what you buy, the government will rebate up to 30% of the cost of the furnace or appliance this year, as long as you purchase by December 31, 2010, as part of the Federal Tax Credits for Consumer Energy Efficiency.
• Another inexpensive way to save money is by changing light bulbs to fluorescent from incandescent. And, as I heard from Consumer Reports the other day, the trend towards LCD lighting, which will give you a brighter, more natural light at a lower cost, is on the way.

So as you think about selling or buying your new home, you should think about these new incentives. It’s apparent that energy costs aren’t going down anytime soon, and with the tragic accident that just happened in San Bruno, someone will have to pay for the expense of rebuilding and examining all the gas lines for any additional problems. Something tells me it won’t be just PG&E: they are bound to pass the costs on to the consumer in the form of higher energy costs.

As the Nike commercial says, “Just Do It.” In the long run you will be glad you did for both the sake of your home and the reduction of greenhouse gases in the future.

Posted by:  Rick Smith

There really is great news for all prospective home buyers out there, but not so good news if you are selling, I’m afraid.

Now that the government stimulus package is finished, the Real Estate Market looks as though it is back into being in a mild slump.

This sounds like more bad news, and it is for some sellers. The good news is for all those prospective Buyers out there.

Let me explain.

What’s been happening in Real Estate is simple: the supply and demand have gotten out of whack again. As there were lots of new home buyers flexing their muscle in Spring, this gave off an artificial aura that the Real Estate market was back on track, which led to a lot of people putting their homes up for sale in May- July. But now it appears that the tax credit mainly accelerated purchases by people who were going to buy anyway, rather than creating new purchases of homes. With the tax credit gone, and one of the largest excesses of home inventory on the market in years, the market is now more aggressively seeking its own natural price and sales levels. Demand is far lower, so prices have to come down before sales will completely normalize.

It will continue to fluctuate because sellers don’t know where the sweet spot is in pricing, and our less-than-stellar hiring in the job market makes them unusually hesitant. Many sellers put their homes on the market for what they hoped was a reasonable price, and then took them off once they got no offers. That means the prices are still too high, and it will take months or years for so many sellers to accept that. With the tax credit gone and another dip in sales, we may be getting closer to prices that are real and sustainable. The faster that process works itself out, the better off we will be in the long run.

The great news for Buyers: the abundance of inventory and these lower prices mean now is an excellent time to reap the benefits.

Buyers: Don’t miss out in buying that great house, as interest rates continue to get lower too.

The stars are in alignment. Both lower interest rates and lower prices are nicely combined for the Buyer to make that perfect purchase.

You have a huge choice now of so many great homes at great prices. Don’t miss this huge fall sales clearance event!

Posted by:  Rick Smith

It’s never easy trying to figure out how much you should offer when buying a new home. Although the housing market appears to be stabilizing, you never know whether or not prices will slip more, or begin to rise.

The one thing to remember today is, don’t buy for the short term or future appreciation. Buy a home that will work for you for years to come, at the best price you can negotiate, and for the interest rate and financing you can afford. Make sure you ask your agent, whether it’s me or anyone else, to give you a summary of what properties in the area you are interested in have sold for (including the list price, the final sale price, and how long it took to sell the home). It’s also great to have information on the average sale price over the last year. Overall, have prices declined or are they increasing?

During your home hunting education of the market, make sure you continue to get reports about market changes. If a home you have been looking at that was priced too high gets a reduction, and is now in your price range, make a point of looking at it as soon as possible. A new price, most always, attracts other buyer’s interests as well, so you will need to be ready to react quickly. If this truly is the home of your dreams, don’t let someone else steal it before you have time to react! A well-priced listing is likely to sell quickly. Be prepared for more than one buyer making an offer on the same property, and you may need to make an aggressive offer at near or over asking price, to secure the offer. Becoming knowledgeable about the Marin market enables you to know when to make a strong offer on a brand new listing, even though you may hear the overall market is not up to its peak.

However, it’s a different story when you find a home that has been listed on the market for months. It’s highly possible to offer much less than the asking price and then negotiate aggressively. But, if this one doesn’t work for you, be prepared to walk away and look for the next one. Buyers making offers that are contingent on the sale of their own home are many times disadvantaged, and usually have to pay more for a home than an all cash buyer who can close quickly. If you are in escrow, you will be in a much better position to bargain on the next one. The best bet though, is to have your current house sold and closed, as it removes any questions in the sellers mind and makes them more receptive to a lower offer.

So do your homework: go to as many open houses as possible, learn what is well priced and what is over priced, so that when the time comes, you, the educated buyer, are ready to make the right offer!

Posted by:  Rick Smith

One of the questions that come to mind for a home buyer or seller is “How do I prevent problems in closing my escrow?”

The key to making sure your escrow closing goes smoothly is choosing a great Realtor that will anticipate problems before they happen. In order to stay on track, a great real estate agent uses a checklist of tasks that must be completed before the close of escrow, and then follows up to make sure they are all completed prior to the sellers or buyers going to the Title Company to sign closing papers.

Most issues that delay or prevent closings fall into three categories: loans and appraisals, titles, and home inspections.

1) Loans: Financing falls through at the last minute - An agent needs to help buyers understand that a prequalification letter doesn’t necessarily mean they are preapproved. Because of tighter lending standards and heightened concern about mortgage fraud, there is a lot more paperwork required from the buyer today. Making sure that the buyer gets in all of their documentation as quickly as possible to the lender is key, because 9 times out of 10, there is always something else that a lender will need in order to issue closing documents to the Title Company.

2) The appraised value doesn’t come in to support the contract price – FHA loans require comps to be within a three-month time limit, which means it can be hard to find comps in some neighborhoods. The agent should always work with the appraiser if possible to submit comps or reports that show the property’s condition and the neighborhood that the banker has never seen.

3) Title can’t be transferred at closing – Title defects are another issue. Getting a preliminary title report as quickly as possible to surface those issues is extremely important for a buyer or seller, as you then have time to resolve them quickly. Short sales and REOs are particularly prone to issues, as sometimes the owner doesn’t surface them or the owner isn’t around. Perhaps there was work done on the property and if it went unpaid, the sellers might now have a lien on the property, or maybe there are unpaid HOA fees. Make sure the proceeds of the sale will cover any mortgage liens and unpaid fees.

4) A home inspection uncovers serious issues - For the seller, it pays to have their own inspections done and work performed prior to listing their home for sale, as many issues can be resolved before they become problems during the negotiation process with the buyers. However, sometimes sellers can’t afford this, but having a good agent to do a thorough walk-through with the owner helps. Asking the owner about the age of the roof, any repairs that have been made, and looking at the foundation is also helpful, and alerting buyers to possible high-ticket repairs and suggesting they factor those costs in will cut down on the amount of post contract negotiations.

Above all, allow more time for the transaction and closing to happen. A good buyer’s agent can get a realistic estimate of the clients’ closing date by creating a timeline of how long inspections and approvals will take to ensure making the closing day on time.

Posted by:  Rick Smith

1. Choose the real estate agent that is right for you

Of course, you want a professional, knowledgeable and committed agent on your side, but it is also important to find one that you can easily work with. Communication is key. You and your agent form a team prior, during and after the sale.

2. Get pre-approved

Take the time to talk to a lender and get pre-approved before searching for a home. This important step helps determine the price range of the house and the payments you can afford. It can also lessen stress and disappointment.

3. Don’t forget about Closing Costs

You need more than a down payment and loan to buy a house. Remember to ask your lender and agent about loan fees, title fees, insurance, homeowner association fees (if applicable) and taxes. You don’t want an unexpected surprise at closing.

4. Patience is a virtue

While you might find the first house is the right house, keep in mind that your priorities may change as you search for a home. Location, size, school district, yard, length of commute, etc. are all factors to consider. Decide what is truly important to you and what you can live without. 

5. Sometimes it’s just not meant to be

There is more than one perfect house for you. Whether you can’t come to terms with a seller or your transaction falls apart due to inspections, don’t despair. New properties come on the market each day and one will be right for you.

6. Get a Home Inspection

It’s best to know all that you can about the house before it becomes yours. Saving a little money by not having inspections may mean losing more money in the end.

7. Ask for a Home Warranty

During your first year of home ownership it is a good idea to have this insurance policy against unexpected repairs. Read the policy thoroughly to see what is covered and what isn’t. Usually basic repairs are covered.

Are you a current homeowner? Is this something you wished you would have known beforehand? Please share in the comments.

Posted by:  Alva Falla and Associates

I pride myself in having expertise in dealing with a lot of first-time homebuyers. After meeting them and striking up a working relationship, they often ask:

“I want to start looking at homes right away. How do we get started?”

Most new homebuyers want to immediately jump into looking at homes, which can be done early on by visiting open houses and using internet home searches to get a feel for what the current market holds. However, probably the single most important first step is to determine how much of a mortgage payment you can afford each month and how much of a down payment a lender will require. This can be accomplished through what is called a pre-approval.

The pre-approval process is typically a free service where a lender evaluates the borrower’s financial situation and credit rating and determines the loan type, down payment requirement, interest rates, monthly payments, closing costs, and other terms that the lender is prepared to offer. The lending broker business is a competitive one, so you should meet with at least three lenders to determine the best rates and who you feel works the best with you.

There are several reasons why most housing experts recommend that you get pre-approved before starting your search:

1. Before spending time and effort, you should know if you are qualified with the right down payment and credit scores to look for a home;
2. By getting pre-approved, you know what you can afford and won’t spend time looking for homes that are not in your price range;
3. And probably the most important reason in my mind is this: Say you have found your dream home and you are ready to write an offer. Unfortunately, in today’s market, I have not come across a single listing agent that will even accept an offer without a pre-approval letter because the sellers don’t want to get involved with unqualified buyers who can’t afford the home or get a loan. Once buyers have found the home of their dreams, it can be very devastating to them to find out that they can’t even make an offer.

Regarding down payments, it is important to know that many lenders require at least a 20% down payment or more these days. One benefit of a larger down payment is that the borrower can offer much better terms on the mortgage loan. If the down payment is less than 20%, most lenders will require the borrower to purchase private mortgage insurance (PMI), depending on the nature of the loan. The best thing that happened in the last two years because of the economic recovery is that the government changed its limits on how much you can borrow on a government backed FHA loan. In Marin County, you can now get an FHA loan for loan amounts of up to $729,750 (for a single-family home), which is almost double what it was a couple of years ago!

With this loan you can qualify for the “conforming jumbo loan,” which is a much better rate than the Jumbo. And the best news yet is that your down payment can be as little as 3.5%!

This is great news for the first-time homebuyer in Marin. With home prices down roughly 35% from where they were two years ago, interest rates at the lowest that they have been in 60 years, and a down payment at only 3.5%, it is probably one of the largest single opportunities a new homebuyer will have in many, many years. Don’t let the opportunity slip away from you!

Posted by:  Rick Smith

Successful Short Sales In Marin County
(The Fourth of Four Installments)
The Buyer’s Perspective
In Marin, from January through April 2010 the short sales of single family homes increased 94% over the same time in 2009.

That short sales are finally working out is good news for potential buyers because along with the increase in closings there is an increase in the speed with which the short sales are being approved.

Types of Distress Sales
Buyers interested in taking advantage of the market opportunities in these trying times need to differentiate between the short sale (bank approval needed), trustee sales (cash sales on the court house steps) and bank owned properties (called REO’s).

The short sale properties often take many, many months from offer acceptance to close of escrow. While less time is involved now than six or eight months ago, these sales do take patience.

Trustee sale, an all-cash no escrow, on-the-spot sale, results in a limited deed given on the spot.

REO properties, marketed through the multiple listing service, often close escrow very quickly and are often offered at surprisingly pleasingly attractive prices.

Drawbacks to short sale purchases
Short sale properties have been difficult purchases for a variety of reasons:

• The time period from offer acceptance to close of escrow is often many months and can take a year or more. Many buyers get ‘cold feet’ and give up.
• A buyer in contract can lose the purchase if another, better offer comes along.
• The owner of the home is selling often without realizing enough money for first and last month’s rent on a new home.

Success
Until recently, the successful purchase of a short sales home was most often found in dealing with lenders who had portfolio loans (for example Wells and Wachovia) and where there was only one loan on the property. This may change with HAFA. Time will tell.

The Big Picture
Short sales create a downward price pressure on the market that spills over and creates other opportunities. While San Anselmo hasn’t had too many short sales, there is evidence of the downward pressure on homes in San Anselmo’s Seminary that illustrate this: 75 Kennsington was sold by Catherine Hogan in November ‘06 for $1,080,000 then sold again by George Desalvo in July ‘09 for $665,000. Other sales of note in the area include a condo sold by Jeannette Anne for $190,000 (oh how I wish I’d been the buyer!) and a home at 68 Ross Avenue that sold for $1,184,000 in August ‘05 and was sold by Barbara Major this month for $925,000.

Was this series helpful to you? Do you want or need more information?

If you think the time is right and you’re interested in buying property contact me at tverkozen@fhallen.com or call me at (415) 257-2039 and we can discuss the possibilities.

Successful Short Sales in Marin County
Part 1 – Overview
Part II – Short Sales from the Homeowner’s perspective
Part III – Short Sales from the Bank’s perspective
Part IV – Short Sales from the Buyer’s perspective

Posted by:  Tom Verkozen

The Frank Howard Allen banner is ‘Love Where You Live’… and since I live in Ross, I track the market as I walk to Pheonix Lake, to visit friends or stroll into San Anselmo or Kentfield. Some amazingly beautiful homes, a great high school (Branson) and highly rated elementary school (Ross School) are features of this sleepy, pristine town.

The only other Frank Howard Allen agent who lives in Ross is Patti Cohn. Congrats to Patti on her third Ross sale this year … a real beauty at 98 Laurel Grove listed by Susan Bowman for $4.25M. Dang, I wish they’d picked me… three weeks, full price, all cash. Oh well, share and share alike (ha!).

Real Estate Update:
In Ross there is currently a six month supply of homes available (19) and the average days on the market for those that have sold in the last six months (16) is 92 days, a rather balanced market.

On the average sellers have been getting 87% of their asking price… an average greatly influenced by the two large sales (The Gray’s home at 1 Upper Road that initially listed for $22M and sold for $14M and the Penn home on Laurel Grove with a price that came down millions and sold for $8M). The price per square foot on active listings in Ross is $807 while the sales have averaged $714 per square foot.

My favorite Shire of Ross home currently on the market is 3 Hill, off of Lagunitas Road. I find tranquility in this home with the quality of the finishes and the light. It is listed for $1,649,000 and has four bedrooms and three baths. If this sounds good, email me and let’s go see if this home is the one for you!

Posted by:  Tom Verkozen

If you are toying with the idea of jumping into the market, either as a buyer or seller, Open Houses can provide a wealth of information – most importantly, the type of information that you cannot get from the Internet. This Sunday, April 25, is Frank Howard Allen’s Open House Extravaganza and hundreds of our listings throughout the North Bay will be open to tour. Whether you’re a buyer or seller, looking for a potential agent or just curious about the market, here are some things you can learn this weekend:

For Buyers
If you are a “potential, somewhat skeptic, maybe yes, maybe no” buyer, you most likely want to assess the homes in your price range to find out if there’s anything that even appeals to you. (This is sometimes called the “I don’t want to waste your time” stage, and we recognize that it really is the “I don’t want to be bugged by a real estate agent” stage.) When at this stage, public Open Houses allow you the freedom to check out specific homes and neighborhoods, become familiar with comparable sales, and learn what your money can buy.

During this process, you will also learn about yourself and what you really want in a home. Most buyers don’t end up with everything on their wish list; the more homes you visit, the easier the task of deciding what you can and cannot live without. It’s very difficult to do this without hitting the road.

If you have not yet chosen an agent to work with, Open Houses are an ideal place to interview for one. It’s important to find someone who is a good match for you, whether the criteria is personality, expertise, presentation or a combination of all three. Visiting an Open House allows you to observe agents in action and find the right fit.

The buying process can have many false starts, so if you meet an agent that you are impressed with but find that you need to put the brakes on the process, keep in touch. He/she will be able to provide you with updates so when you do get back into the market you are not beginning at square one.

For Sellers
If you are considering selling your home, the first order of business is to check out the other homes for sale in your neighborhood. It’s vital to know what your competition is because when it’s time to set your asking price, your agent will include these homes in the “Comparative Market Analysis,” the report that is used to determine where the market places the value of your home. It’s to your advantage if you have actually seen the homes yourself.

Another reason why it benefits you as potential sellers to visit Opens is that you can quickly learn how homes should – and shouldn’t – be presented when they are placed for sale. First impressions are the most important and you will want to “showboat” your house for prospective buyers.

Looking for an Agent?
If you have not selected an agent to sell your home, visiting Open Houses can teach you a great deal about agents and the service they provide. Ask yourself these questions when you go:

1. Was the agent enthusiastic about the house or did it seem like he/she was just marking time till the open house was over?

2. How did the agent engage with the public? If you were a buyer, would you feel comfortable asking him/her questions about the property?

3. Try to gauge the agent’s market knowledge: is he/she experienced in selling properties in your neighborhood?

4. Was the agent effective in getting the house ready for public viewing? How about the agent’s attention to detail?

5. Are you impressed with the quality of the agent’s marketing materials?

6. Did the agent seem genuinely interested in you?

The final question to ask yourself would be: Based on this person’s performance, is this someone you would want to represent you and your interests?

Buyers and sellers, we’re glad to see you out and about at Open Houses and we hope to see you this Sunday.

Posted by:Noreen Smith

Well it is a good time to be a first time home buyer in Marin and Sonoma Counties. The Obama Administration has announced financial incentives. The main one is the $8,000 federal tax credit is now going to be offered for a down payment according to the housing secretary for the Department of Housing and Urban Development (HUD); they will publish policy that will allow FHA approved lenders and some others to monetize the tax credit through short term bridge loans.

If you would like more information about this subject you are welcome to call me (415) 899-9221 or email pschardt@fhallen.com and I will be glad to help you and guide you to use this credit if you are a first time home buyer. Go out and enjoy our beautiful counties we live in and have a nice day!

Posted by:Peter Schardt

Whether you’re on the fence about buying, are considering investing in a condo for your kids to share after college, or are actively searching for a new home, don’t miss our Open House Extravaganza this Sunday. There will be over 170 homes in Marin alone available to tour. From houseboats in Sausalito to an estate in Nicasio, there’s a variety of properties in all shapes, sizes and price points.

You’re also welcome to stop by our offices. Our agents will be available to answer questions about where the values are, what neighborhoods to consider if schools are of utmost importance, and what properties make sense for your lifestyle and budget. Our in-house financing experts from Residential Pacific Mortgage will also be available to explain financing options, the first-time buyer credits, and more.

For the locations of Open Homes, click the “Open Houses” button on the homepage of our award-winning site http://fhallen.com or check the real estate section of this Sunday’s Marin Independent Journal or the Santa Rosa Press Democrat.

Posted By: Noreen Smith

This question is always asked – is it the right time to buy? Well there are many factors in deciding if it is the right time to buy. First, are you (the buyer) financially ready? How is your credit score? What about job security? Next is to find out what amount you can borrow, and how much money you will need to put down on the home (this will vary depending on your loan). These are the first items that need to be addressed. Next is the city, location in the city, type of house that will meet your specific criteria and the cost of this home. After this is determined (along with some other minor details) you can now look at the condition of the market, compare interest rates to past markets and determine if it is a good time to buy for you.

I have watched the real estate market and researched past markets and found that anytime there are many years of appreciation (2001-2006) in price, at sometime there has to be a correction and that usually means depreciation in price. Well the Marin and Sonoma markets have depreciated from 10%-50%.

Also, the mortgage industry is offering amazing rates for FHA loans up to $417,000, at 4.8% with 1 point and first-time home buyers $626,000, interest rates at 5.25% with 3.5% down WOW!

In my opinion IT IS A GREAT TIME TO BUY! If you have any questions about homes in Marin and Sonoma Counties or Loans (Andrea “Andy” Shine RPM mortgage) please call me 415-328-2637 or visit my website at www.peterschardt.com. You can also reach me by email at pschardt@fhallen.com.

Posted By: Peter Schardt

Do we sell? Can we afford to sell? Will WaMu cooperate with a short sale? How about the 2nd loan? What is going to happen next with the economy?

When our country’s economic brainiac Geithner says, ‘we don’t know what will happen next … but we’ve set a direction and will tweak our plan as we go’ how do you, a simply-complex person somewhat like me (?), decide what to do with your economic building blocks, your home, your investments, your job and your life?

You might turn to books by neuroscientists like Jonah Lehrer, “How We Decide” or Daniel Gilbert, “Stumbling on Happiness.” Both fine books. Yet I’d suggest something else, something quite simple, that helps: Find Places of Rest in the Middle of Things.

Your place of rest, your relaxation, may entail dining at a fine restaurant, taking a hike at Muir Woods, reading a poem or discussing a book (I just started David Robertson’s COM class on Literature and Law and find the class a mostly relaxing space as well). Sometimes it’s as simple as a chat with an old friend in a faraway place.

As global economics constrict, as increasingly more and more friends, family, community members and our communities themselves face the prospect of job and/or home loss to the omnivorous economic beast coming over the mountain … in our case to Marin ( 44% of all Novato real estate sales last year were economically distressed) we might turn to the hospice model of support.

I began volunteering at Hospice by the Bay in Larkspur, formerly called Hospice of Marin, in 1997 and a decade later do volunteer bedside care and the sitting of end-of-life vigils. In that context I’ve seen that the ability to make the most solid, satisfying decisions in times of high stress is best supported by the duality of competent counsel (the wisdom of experience, and perhaps a book or two, blended with good communication skills) and, thank you Frank Ostaseski, founder of the SF Zen Hospice, for the term of art, “Finding places of rest in the middle of things.”

The value of competent counsel is huge. We all know that.

What I believe is that we (I?) often forget is that there is a great need during stressful times to seek ‘no think’ spaces. To go places where the ‘R’ word is not spoken. Reading Patti’s blog about Heidi Krahling’s Marinitas restaurant (I used to live on Marinita Avenue in San Rafael … oh, good news … a $2M home on Marinita had multiple offers this week) I recalled seeing a dozen people I knew – all having a marvelous, de-stressing time ‘in the fun house’. I believe it was Carl Fricke (or was it Jerri Dexter?) who noted that ‘there’s no recession here’. I heard the same remark from David Rabb at Sausalito’s finest, Le Garage. And have felt the same sitting at Stinson Beach watching the sunset, working out at TJ’s CrossFit gym and playing a game of blokus with friends.

A best antidote for these times is to go where the ‘R’ word is not spoken. Go, play. Then come back to ‘that other dastardly reality’ with a new perspective. Seek counsel, make the decisions that need to be made and look forward to more sunsets.

Posted By: Tom Verkozen

I have always loved Eichler homes. Joseph Eichler designed and built these mid century modern homes from approximately 1949 to 1966. It is interesting that his home design and floor-plans have remained relevant and popular throughout the years. Indeed, during the early to mid 2000s most Eichlers in Marin that were for sale received multiple bids and sold over asking. I believe their popularity is due to their timeless style and eco- friendly characteristics. The atrium Eichlers, a particular Eichler floor-plan, features an interior courtyard. This characteristic allows air to pass through the courtyard and home on hot days but also protects one from wind & cold on winter days. The open floor plan is also an efficient use of space and completely contra to some of the monster homes we have seen built over the last decade. These large homes are hard to heat & cool and many rooms are never even used – a complete waste of materials and energy! It should also be noted that Eichler homes were built on a slab with radiant heating, which is another eco-friendly characteristic of these homes.

What makes me so passionate about these homes is that I just had the opportunity to sell two atrium Eichlers to my buyer clients. Whereas in the recent past, one would have to overbid to acquire these coveted homes, my clients were able to negotiate on price and “get-in” to the Marin market at a very friendly price point. It is a great example of what a great time it is to purchase in a wonderful community while taking advantage of favorable prices and interest rates. It gives me no end of pleasure to know that my clients bought quality homes and were able to purchase well under the asking price.

Posted By: Adrienne Murphy

You have found a neighborhood that intrigues you with good prices, a charming feel, but you want to know more. The easiest way to research a neighborhood is to go online.

You can start by going to the following sites:

• The city’s website
• The county’s website
• The local visitor’s bureau website
(These local links can also be found on our website.)

Other online resources:

• Local newspaper sites – Marin County: www.marinij.com; Sonoma County: www.pressdemo.com
• Google
• Local blogs

Additionally, you may want to know more about the local schools and area demographics. We offer this information through our Neighborhood Navigator research tool. To use this tool, launch Neighborhood Navigator, and enter your desired City, Zip, School, etc…

 

Neighborhood Navigator provides in depth information on community information with population, turnover, and housing inventory, age demographics, and crime versus the national average.

School information including student to teacher ratio, discretionary spending per student, and school test scores are also available.

Of course, when you are looking at a neighborhood it’s important to go offline as well.

• Walk through the neighborhood
• Attend open houses
• Drive through to get a feel for the daily traffic patterns, especially during traditionally busy times, such as school drop-offs and commute hours

For more information, please contact our local specialists at 800-336-0899 or info@fhallen.com.

Posted By: Noreen Smith