Happy New Year!

All the best in 2008!   Mark Lomas   415-789-7777     MDLomas@gmail.com

Median Price Malarky

        The top headline in the November 16, 2007 Marin Independent Journal “Median Leaps to $978,000″ is not only misleading, but it borders on irresponsisble jounalism.  The problem lies in the statistics, and how they are misinterpreted by the media and public.  According to the Marin County Assessor, there are 61,500 detached single family homes and 13, 259 condo/townhouses in Marin.   This is the “population” used for the statistics.  These residences range from one bedroom condos to large estates.      The statistical problem with this population is that it is highly non-homogeneous.  Each month, only a very small percentage of these homes sell (200 to 300) and they are the only ones included in the statistics. More important, each month it is a different sub-set of homes that sell, so to compare the median price from one month to another month is absolutely meaningless, the IJ is comparing apples to oranges.     The median price statistic is rising because more high priced homes are selling and fewer lower priced homes are selling.  The president of the Marin Association of Realtors pointed this out in the article?   Because of this change in the mix, it is  incorrect to conclude that home prices in general are rising or are even flat.  Unfortunately, most of your readers will misinterpret the statistics…especially with headlines like ” Marin Real Estate Prices Climb Again!”     If you look at individual neighborhoods throughout Central and Northern Marin, you will see a mostly downward trend in selling prices with many sellers offering incentives to attract the few serious buyers.  Lender foreclosure sales are also starting to have an impact.  Lenders are starting to “dump” foreclosed properties to get them off thier books.     The fact that the number of sales is dropping (down 30 percent) is another indicator that supply and demand are out of balance and exposes the meaninglessness of the median price statistic.   How can prices be rising if demand is declining?   This is basic Economics 101….supply and demand.   With the exception of some prime Southern Marin properties, buyers can pick and choose, but mostly they are not buying at all.     If the IJ is going to report the median price home statistic, it would at least be helpful to include a disclaimer in the article that the statistic is completely meaningless for determining price trends.This editorial was reprinted with permission from it’s author, Keith Marsh, who is a certified appraiser in San Anselmo.  Keith’s phone number at work is: 415-456-9836 and his web site is: Keith Marsh

Mortgage Market Trends

     The following information has been gathered from fairly reliable sources over the last twelve days.  The opinions are those of the individual, and may not reflect this web sites point of view.  The information provided here, I believe, contributes to an “open forum” or “atmosphere” for ideas that might benefit the general public, and real estate professionals.     This post begins with a link to an article published a week ago in the Marin Independent Journal newspaper:Marin Independent Journal’s Foreclosure Article followed by a response from Fred Morfit of Elite Lending Services:“I’ve had enough! This is what I sent to the IJ after reading yesterday’s front page.  Your article of Sunday rightly points out that the effect on Marin of the upswing in home foreclosures is relatively modest.  Too bad that wasn’t what the headline said.  “Not Immune” and the lead pragraph about the fellow in Mill Valley who lost his home is hardly representative of the rest of the market or the rest of your article.  As sad as Mr.Minto’s story is, it is the logical result for someone who has lost a job and fallen behind on their mortgage payments.  You don’t need a “credit crunch”, a “foreclosure spike”, or a “mortgage meltdown” for that to happen.  If you don’t make your car payments someone from the bank will repo it.  If you don’t pay your light bill you’ll find yourself sitting in the dark.  If you don’t make your mortgage payment you’ll be sitting in the street.

By way of factual correction: 2nd mortgages aren’t “sold” in the course of refinancing as Mr.Minto claimed.  They are simply paid off.  As for the matter of him not being able to refinance: good.  Any lender who would have financed Mr.Minto’s home knowing he had no income source (therefore ability to make the payments) would have been making a truly sub-prime loan.  Isn’t that what got us into this mess in the first place?

Mr.Minto was a poor example used to make the wrong point.  The right point is that despite the problems there is good news in the Marin Real Estate market.  Values are, for the most part, holding.  THe investors are returning to the secondary market so interest rates on jumbo loans are coming down.  If there is a problem it’s that the buyers are inundated with the “Sky is Falling!” tales from all the media outlets which is making them as skittish as feral cats.  It’s time to stop preaching doom and gloom unless you have some vested interest in self-fulfilliing prophesies.  Say it often enough and eventually you will be right!”Fred Morfit: 415-383-8836 / fred@fredloanguy.comWasserman – Boston GlobeFred Anlyan’s “Anlyan Report”MBA and Broker Associate11/4/2007: “This is a healthy market where buyers and sellers who are prepared to negotiate in good faith are having great success every day.  For those who’ve been waiting to see what the market will do, the upcoming holiday lull may present just the opportunity you’re looking for.  My guess is the spring market will be a very active one.  Experienced real estate professionals know the market, they know the neighborhoods, and they know values. 11/8/2007: “Regarding the Condominium market in Marin County only two units have sold in the past week, but enough condo’s went Pending to push the percentage in contract over 15% making this area very much a “buyers market.” Condo’s in Marin continue to be a great opportunity for buyers.Facts about the Marin County Real Estate market:1. The number of single family homes over $1 million available for sale today is 15.7% greater than 2005 and 8.2% less than in 2006.2. The number of single family homes under $1 million for sale today is 71% greater than in 2005, but 3% less than in 20063. The number of condominiums under $1 million available for sale today is 124.8% greater than in 2005, and 1.6% less than in 2006.  

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Bubble Bloggers, Virtual Doom and Gloomers with an occassional hint of humor

  This is not an endorsement of some profoundly virtual negative types. But, in the hope of creating (and maintaining) an open forum for ideas (whether you agree with these bloggers or not) here’s a little piece from the dark side of real estate blogs.  If you can look past the underlying bitterness that’s laced throughout these blogs, you’ll find that there are occassionally some creative insights, and great ideas.  Also, and this is the best part, the sarcasm and humor here is often pretty funny. Don’t take any of this too seriously , and enjoy.

Bubble Blogger links:

Reality Parser

The Housing Bubble Blog

Bubble Meter

Piggington

Paper Money

Housing Bubble Bust

Housing Panic

Housing Doom

Dr. Housing Bubble

House Bubble

Bubble Blogger’s Glossary:(the humor)Homedebtor (recent homebuyer): Perpetual debtor who will probably never own the house outright, thanks to cyclical refinancing (used to fund conspicuous consumption) and property taxes.Serial Refinancer: A homedebtor who is addicted to mortgage refinancing as a street addict is to crack. This type typically refinances several times a year for the purpose of “liberating” more equity to purchase such essentials as exotic vacations, plasma TVs, massive humvess, and anything bling!Loanowner: Another synonym for homedebtor, that more accurately describes what one really owns.Jealous Bitter Renter aka JBR: Someone who pays a homedebtor for the right to live in his home at a huge discount. (No downside risk of falling property prices, rising property taxes, or maintenence nightmares)Sheeple: Derogatory term for the vast herds of Homedebtors unaware of the bubble’s existenceAlligator: Investment property that eats more income than it generates, such as a neg-am Florida condo purchased in the last two years.McAlbatross: Play on McMansion. Homedebtor that cannot sell home. Described as living “under house arrest”Accidental Landlord: Cannot sell house and finds oneself in the position of becoming an unintentional landllord. This type is easy to spot.  Usually has simultaneous “for rent” and “for sale” listings on Craigslist.  Careful if you rent from an Accidental Landlord, if they sell house, the new owner may not honor the prior rental agreement.Buyer-User: Industry term for someone who buys a home to actually live in it.  An increasingly rare and endangered species.     Obviously, if you’ve found yourself caught between a rock and a hard spot none of this is too funny, and you have my deepest sympathies.  Markets run in cycles.  It is my belief that the market peaked in July and August of 2005.  As long as there are no acts of God (Earthquakes, Hurricanes, ect.) or terrorist attacks, this current market should turn around in the next couple of years.  Some areas of the country may take longer than others.   So, be careful, cautious, and talk to a reputable Realtor as to what your best options are.  All the best!

Congress and the Mortgage Industry

      Top economic minds have been clamoring for federal action to help out the estimated 2 million people who are in danger of losing their homes.  It may take more dire circumstances to push Congress ,and President Bush to do something.  Why aren’t the candidates running for the Presidency in 2008 making more of an issue out of this?     President Bush has suggested that borrowers could refinance their mortgages with fixed rate loans under a cautious remedy proposed by Bush.  This will only apply to the 80,000 who have 3% equity in their home and can prove their original loan was being repaid until it was reset.     Congress is divided on measures that would ease mortgage problems. Proposals include federally chartered mortgage companies to help refinance delinquent mortgages held by the kind of people that Bush’s plan won’t cover.     Later this month the Federal Reserve could cut interest rates, which would lower monthly payments for those struggling to pay their adjustable rate mortgages.  The Fed has issued guidelines urging loan service companies to work with borrowers who are in danger of default.     Banks could renegotiate loans.  The problem with that is that banks often sell their home loans to investors, so the original lender no longer has a stake in the credit.     The bottom line is that if the Fed doesn’t lower interest rates, more needs to be done.*  The mortgage industry can’t rely on the President and Congress to come to any kind of agreement. And, if that ever happened , how long before that could be implemented?     The American economy, since 1995, has been driven by the housing market.  Now, more than ever, we need some leadership from within the Mortgage Industy and Congress.  Stay tuned, this story seems to rewrite itself every day.*Yesterday discussions began regarding Fannie Mae and Freddie Back freezing some forthcoming rate increases for some adjustable loans that are set to reset.  This was seen as a positive beginning but right now we’re only in the theorhetical stages, so stayed tuned to see what happens.

Win $2,100,000 “Dream Home” in Marin County, California!

                                                      

if(requestedWidth > 0){ document.getElementById(‘articleViewerGroup’).style.width = requestedWidth + “px”; document.getElementById(‘articleViewerGroup’).style.margin = “0px 0px 10px 10px”; }  A San Rafael-based nonprofit is hoping to fund its programs for the poor by offering raffle ticket buyers the chance to win a San Rafael “dream home” priced at $2.1 million.    Community Action Marin – which operates 15 programs that focus on mental health services, early childhood development, HIV/AIDS, food programs, the homeless and more – will sponsor three drawings over the next five months. In addition to the house, which is the grand prize, Community Action Marin will give away 349 smaller cash prices, ranging from $300 to $25,000.    ”The fact that the local anti-poverty agency is raffling off a $2.1 million house is a little ironic,” said Gail Theller, the agency’s exective director.    But recent cuts in funding by the Marin Community Foundation, the federal government and the state government left Community Action Marin with little choice, Theller said.    The nonprofit lost about $200,000 a year in funding from the Marin Community Foundation recently when the foundation’s trustees decided to take money away from ongoing programs so they could finance new initiatives. In addition, Gov. Arnold Schwarzenegger eliminated funding for a homeless program that served the mentally ill when he sliced $703 million in health spending from the new budget. That move cut $500,000 a year from Community Action Marin’s budget, Theller said.    Stacy Swor, a Mill Valley lawyer who has been on the agency’s board for 18 years, said, “The truth of the matter is we’re being bled to death. Believe me, we’ve tried everything. Bake sales and car washes just don’t do it these days.    ”People are willing to support a charity if they can see something for their money,” Swor said. “What we’re faced with is ongoing operational expenses, and those are expenses that are just about to get contributions for.”   Although this is the first time that a nonprofit in Northern California has used such a raffle to generate revenue, the practice has gained popularity in Southern California, where it has been used by St. Jude Medical Center, school districts and cultural organizations, Theller said. A law passed by the California Legislature in 2001 made it legal for nonprofits to conduct such raffles.    Still, the agency took no chances, Theller said. It checked with the state attorney general’s office and the Marin County district attorney before proceeding with the raffle.    Community Action Marin has hired Neal Martin, a former high school school teacher who oversaw a similar raffle for a college prepatory school in Watsonville, to manage the raffle. Mount Madonna School sold 19,000 raffle tickets costing $150 each and raised about $1 million for the school while paying out a grand prize of about $1 million, Martin said. Community Action Marin expects to do better than that.    ”We are convinced we are going to net $2.2 million,” Theller said.   Because Community Action Marin is also charging $150 per raffle ticket, it needs to sell 35,000 tickets to meet that goal. The prizes will be paid for with proceeds from ticket sales. If fewer tickets are sold than expected, Community Action Marin has reserved the right to reduce the size of the grand prize – to an even split of the raffle’s total profits. The grand prize winner also has the option of a $1.7 million cash prize in lieu of the “dream house.”    Theller said she found the house at 204 Southern Heights Blvd. in San Rafael by mailing letters to 100 people who were trying to sell homes in Marin. If the grand prize winner does opt for the cash, the owner of the house will be paid for holding the house out of the market for six months, Theller said. She declined to say how much.    Theller said she thought it would be difficult finding a homeowner willing to take their house off the market for so long, but half of the people contacted expressed interest. The owner of the San Rafael house had priced the home at $2.1 million, and will be paid that amount if the prize winner chooses the house.    People who buy the raffle tickets will know that they’re giving to a worthy cause, Martin said.    ”It’s not a mystery – unlike the state lottery where the funds from the state lottery are going to end up being budgeted in the next fiscal year,” Martin said.    Nevertheless, raffle winners will get no special treatment from the Internal Revenue Service. Like any raffle or lottery, prizes over $5,000 are subject to a 25 percent government tax, Martin said.(This article was written by Richard Halstead and was posted on the Marin Independent Journals web site: 9/6/2007)COMMUNITY ACTION MARIN’S ‘DREAM HOME’ RAFFLE ADDRESS: 204 Southern Heights Blvd., San RafaelSIZE: 4,400 square feet, 4 bedrooms, 4.5 bathrooms; quarter-acre lotDESCRIPTION: Bay views, chef’s kitchen, lush landscaping, library suite, all-new appliances, infinity pool, gated entryCOST OF RAFFLE TICKET: $150HOW TO ENTER: By phone, 800-431-5166; by mail, CAM Dream House Raffle, 29 Mary St., San Rafael, CA 91949; or by fax at 415-738-7664.                                                    GRAND-PRIZE DRAWING: Feb. 9, 2008

 

Mortgage Trends in Marin County

     As simply as possible…     Due to the price of real estate in Marin County the “Jumbo Loan” is the primary loan that is used. The guidelines offered here are in a state of flux due to the changing mortgage environment.  Due to the mortgage liquidity crisis, and the record number of defaults, the requirements or guidelines have become more stringent during the last couple of months.     A “Jumbo Loan” is any loan amount in excess of $417,000 and is also refered to as a “non-conforming loan.”   Conforming loans are any loan up to $417,000.  There are rumors that Fannie Mae will soon be increasing those limits in California     First time buyers will need at least 10% to put down, and have a minimum FICO score of 680.  There are other programs for buyers that are available.  Here’s a quick overview:Loan: $750,000       5% down      FICO Minimum: 660      3 months of reservesLoan: $1,000,000   10%down      FICO Minimum: 660      3 months of reservesLoan: $2,000,000   20%down      FICO Minimum: 700      3 months of reservesLoan: $3,000,000   20%down      FICO Minimum: 680     12months of reservesLoan: $5,000,000   30%down      FICO Minimum: 700     18months of reserves     As mentioned above, these guidelines are in a state of flux, and could change at any time.     Now, more than ever, a buyer needs a loan agent/mortgage broker that is experienced and knowledgeable. I recommend working with a local professional to assist you.  I’ve heard stories from various mortgage professionals about multiple offers (yes, they still happen) in Marin County and San Francisco, where the buyer made an offer with a Pre-Approval letter from an online lender, and those offers weren’t even considered in the process.     When you make an offer in today’s market, and the listing agent for the seller cannot directly call that lender if they have any questions (whatever time it may be/day or night), you are at a distinct disadvantage.      Any questions?Some of the information for this post was provided by:Dominic Pomilia      Manager, First Security Loan in Mill Valley      415-381-7015Anthony Dailley      Indy Mac Bank, Retail Lending Division          415-706-1495

Buying in Today’s Real Estate Market

 In today’s real estate market, with all the recent changes in the Mortgage Industry, prospective buyers should:1. Get prequalified by a Mortgage Brokers or Lender.  If you did this prior to August 2007, you’ll need to get prequalified again.  Take the time to talk to a Mortgage Broker or Lender.  Their specific questions in regard to income, debt, ect. will help you determine the price range you can afford.  It is a very important step on the path to home ownership.2. Have the home your considering purchasing inspected by reputable home inspector.  Qualified home inspectors will detect issues that many buyers can overlook.  There are many different kinds of inspections you will want to consider.  Some of the basic inspections people typically order are: 1.Contractors Inspection 2.Pest Control Inspection 3.Engineer Inspection and 4.Roof Inspection. If possible, attending these inspection can prove to be a very valuable experience.3. Be careful not to limit your search for properties to open houses, ads, or the internet.  Oftentime, homes that you’ll find in a real estate magazine or on the internet (if they are priced properly) have already been sold.  Your best course of action is to contact a reputable realtor that can work in tandem with your parameters for finding a home.  As a Realtor, I have up to date information that isn’t always available to the general public including pocket listings that myself or other associates might have or be aware of.  “Pocket Listings” are homes that are not on the Multiple Listing Service.   Sellers that do not want to formely list their home for sale, but are willing to sell their home, will use this methodology sometimes.4. Choose a Realtor that is commited to forming a strong business relationship with you.  Making a connection with the right Realtor is crucial.  Choose a professional who is dedicated to serving your needs – before, during, and after the sale!5. Buying a home is a process of elimination, not selection.  New properties come on the market every day so be open to all possibilities.  When you think you’ve found the home you want have your Realtor prepare a comparative market analysis for you.  This compares similar homes that have recently sold, or are still for sale.6. Consider your long term needs.  It’s important to think ahead.  Will the home your considering buying fit your needs in 3 to 5 years?7. Purchase adequate Homeowner’s Insurance.  Advice from an insurance agent can provide you with answers to any concerns you may have.8. Purchase a Home Protection Plan.  This is not related to your homeowner’s insurance but is essentially a mini insurance policy that usually last one year from close of escrow.  It usually covers basic repairs you may encounter and can be purchased for a nominal fee.  Talk to your Realtor to help you find the Home Protection Plan you need.9. Know the total costs involved!  Early in the buying process you should talk to your lender (and Title Company officer/representative as soon as you open Escrow)  for an estimate of closing costs.  Title Company and any attorney fees should be considered.  Prepaying through the Escrow process Homeowner’s Association Fees and Home Insurance must be taken into account. Also, remember to examine your closing or settlement statement prior to closing.10. Due Diligence: Buyers should make a list of any concerns they have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions ect.  Ask the questions before making an offer on a home.  Be diligent, so that you can have confidence in your purchase.

Selling in Today’s Real Estate Market

 When I represent Sellers my goal is not to simply sell their house, but to help them realize the best possible price obtainable for their property, with the best terms and conditions, in the shortest period of time.  To help achieve this goal I provide proven marketing techniques on how to prepare your home for sale.  These suggestions require a minimum amount of time and expense to complete and are designed to make your house stand out from the competition.     Did you know that within 15 seconds a buyer has developed an opinion of your property? This is why establishing the right first impression is critical to achieving a successful sale.  The following is an outline of those elements which will create the overall first impressions, including suggestions on how to make sure the buyer reacts as favorably as possible.                                                                                              The best way to make a buyer “feel at home” is to create an enviroment similar to that found in a model home.  Obviously, you cannot recreate the feeling of a perfect display home without starting from scratch, but there are some valuable techniques that can be learned.  When you walk into a model home you will notice several key points:   * The environment is neutral.   * The colors and interior decorating accent the home’s features.   * The smell is new and clean   * The sound is either quiet or enhanced by subtle background music.   * All details are looked after, from manicuring the lawn to a floral arrangement in the entry.      This is the first in a series of Tips for Sellers.  In my next posts I will be offering suggestions to help enhance your homes exterior, interior, and other areas of your property. PART ONE

Tips For Sellers Part Two

INTERIORS: 
  
     Appeal to the senses: There are many ways to create a more exciting and saleable interior, at surprisingly little cost.  I’ll briefly discuss the sensory selling tools that can have an enormous impact, then provide you with some suggestions:
LIGHT:   It is proven that people react more favorably to property shown under bright light than dark.  The following steps should help you keep your room as bright as possible.  Keep windows clean.  Use adequate wattage in light bulbs. Consider replacing old florescent lamps.  Use mirrors to magnify the feeling of light and space.  Use light wall colors.  Open drapes and blinds and turn on lights prior to showing.
COLOR: A fundemental rule when selling your house is to keep colors neutral and light.   Avoid highly patterened wallpaper whenever possible.  Limit bright colors to accents like flowers, towels,area rugs, and shower curtains.
SOUND: The sounds of peace and quiet are some of the best sounds to have when your home is being shown to a prospective buyer.  Other consideratons are: Avoid barking dogs and noisy children, if possible. Avoid sounds like vacumns,dishwashers,and lawn mowers.  Light classical or instrumental music can be effective to creating a pleasing atmosphere.
SMELL: Smell has more impact than you might expect.  The smell of newness is positive. Also, the smell of cleanliness is important to the selling enviroment of your home.  Fresh flowers can be very effective. Smells to avoid are: pet odors,tobacco,cooking,and oil or gas.

PREPARING THE INTERIOR:
ENTRY: The entry is where the first impression of the interior is created.  Here you have the opportunity to make a big statement in a small area.  If need be: Repaint the entry using light, neutral colorss. Tile or linoleum flooring should shine.  Replace plastic switch plate covers with brass or porcelain.  A new hall light fixture can make a big impression.  Make sure area is well lit.

KITCHEN: The kitchen is perhaps the most important room in the house.  Make sure the kitchen is virtually spotless and smells fresh.  Consider replacing outdated light fixtures with new track lighting.  If your appliances are dated by colors like harvest gold or avocado, consider having them professionally refinished in a new color like almond or white.  This will make the appliances look new at a fraction of the cost to replace them.  Spruce up cabinets by installing new knobs or hardware.  Organize cabinets to demonstrate how much room you have.  Remove small kitchen appliances from countertops to create an uncluttered look.  Chipped or damaged countertops should be replaced or repaired.

BATHROOMS:  The bathroom has become an important selling feature in today’s home.  It is a room that has moved from the utilitarian to the exciting.  There are many ways you can improve deficiencies and create interest by: Placing a vase of fresh flowers on the vanity. Install a wall telephone for a high tech look. Replace old toilet seat with a new one. Replace old light fixture with a new style light strip or make up light. Refinish an old porcelain tub using a porcelain finishing service.  Place all personal care articles out of sight.  Freshen air with lemon scented products.  Replace old towel racks with new ones.  Add color and richness with new towels and shower curtain.

LIVING ROOM: Use mirrors whenever possible to enhance the perception of size. Show fireplace off to its best advantage.  Sweep clean and make sure screen is in good condition.  Remember buyers look for “impressive living rooms!”

BEDROOMS: The bedrooms can do as much to sell your house as they can to turn off a buyer. Make sure the bedrooms are spotless.  Organize closets to increase their perceived size.  Bedrooms should be well lit.

THE END RESULT:  By showing attention to detail and understanding the buyer’s need to visualize your house against a neutral backdrop, you can dramatically increase the saleability of your property.   And, I will be very happy to assist you with recommendations to help your house sell for the highest price, with the best terms and conditions, in the shortest time possible.

Tips For Sellers Part Three

INTERIORS: 
  
     Appeal to the senses: There are many ways to create a more exciting and saleable interior, at surprisingly little cost.  I’ll briefly discuss the sensory selling tools that can have an enormous impact, then provide you with some suggestions:
LIGHT:   It is proven that people react more favorably to property shown under bright light than dark.  The following steps should help you keep your room as bright as possible.  Keep windows clean.  Use adequate wattage in light bulbs. Consider replacing old florescent lamps.  Use mirrors to magnify the feeling of light and space.  Use light wall colors.  Open drapes and blinds and turn on lights prior to showing.
COLOR: A fundemental rule when selling your house is to keep colors neutral and light.   Avoid highly patterened wallpaper whenever possible.  Limit bright colors to accents like flowers, towels,area rugs, and shower curtains.
SOUND: The sounds of peace and quiet are some of the best sounds to have when your home is being shown to a prospective buyer.  Other consideratons are: Avoid barking dogs and noisy children, if possible. Avoid sounds like vacumns,dishwashers,and lawn mowers.  Light classical or instrumental music can be effective to creating a pleasing atmosphere.
SMELL: Smell has more impact than you might expect.  The smell of newness is positive. Also, the smell of cleanliness is important to the selling enviroment of your home.  Fresh flowers can be very effective. Smells to avoid are: pet odors,tobacco,cooking,and oil or gas.

PREPARING THE INTERIOR:
ENTRY: The entry is where the first impression of the interior is created.  Here you have the opportunity to make a big statement in a small area.  If need be: Repaint the entry using light, neutral colorss. Tile or linoleum flooring should shine.  Replace plastic switch plate covers with brass or porcelain.  A new hall light fixture can make a big impression.  Make sure area is well lit.

KITCHEN: The kitchen is perhaps the most important room in the house.  Make sure the kitchen is virtually spotless and smells fresh.  Consider replacing outdated light fixtures with new track lighting.  If your appliances are dated by colors like harvest gold or avocado, consider having them professionally refinished in a new color like almond or white.  This will make the appliances look new at a fraction of the cost to replace them.  Spruce up cabinets by installing new knobs or hardware.  Organize cabinets to demonstrate how much room you have.  Remove small kitchen appliances from countertops to create an uncluttered look.  Chipped or damaged countertops should be replaced or repaired.

BATHROOMS:  The bathroom has become an important selling feature in today’s home.  It is a room that has moved from the utilitarian to the exciting.  There are many ways you can improve deficiencies and create interest by: Placing a vase of fresh flowers on the vanity. Install a wall telephone for a high tech look. Replace old toilet seat with a new one. Replace old light fixture with a new style light strip or make up light. Refinish an old porcelain tub using a porcelain finishing service.  Place all personal care articles out of sight.  Freshen air with lemon scented products.  Replace old towel racks with new ones.  Add color and richness with new towels and shower curtain.

LIVING ROOM: Use mirrors whenever possible to enhance the perception of size. Show fireplace off to its best advantage.  Sweep clean and make sure screen is in good condition.  Remember buyers look for “impressive living rooms!”

BEDROOMS: The bedrooms can do as much to sell your house as they can to turn off a buyer. Make sure the bedrooms are spotless.  Organize closets to increase their perceived size.  Bedrooms should be well lit.

THE END RESULT:  By showing attention to detail and understanding the buyer’s need to visualize your house against a neutral backdrop, you can dramatically increase the saleability of your property.   And, I will be very happy to assist you with recommendations to help your house sell for the highest price, with the best terms and conditions, in the shortest time possible.

Changes in the Mortgage Industry

     Your probably aware that there are problems in the mortgage industry in the sub prime and Alt-A lending arena.  The problems occured because underwriting standards became too lax.  This has resulted in higher incidences of mortgage defaults and foreclosures.
WHAT DO THESE CHANGES MEAN FOR THE LENDING INDUSTRY?
      * Some loan programs are being eliminated and underwriting guidelines are becoming more conservative.
      * The difference in interest rates between Conforming loans (less then $417,000) and Jumbo loans are 
      widening significantly, in some cases as much as 1.0% to 1.5%.
      * Fully documented loans are becoming the norm.  Stated income and asset loans will be requiring at least
      10% down and available only to well qualified buyers.
      * Mortgage insurance is coming back to help structure loans with less then 20% down.
WHAT DOES THIS MEAN TO REALTORS?
      * Stated income buyers will need high credit scores (720+) and a minimum of 10% down
      * Agents should “re-approve” their buyers
      * Always carefully review pre-approval letters
WHAT DOES THIS MEAN TO SELLERS?
      * Work with a trusted realtor (like myself) and lender (I can help direct you here)
      * The market for seconds has momentarily dried up…some exceptions
 WHAT DOES THIS MEAN TO BUYERS?
      * If your currently in contract to purchase talk to your lender and make sure that there are not any issues
      with your loan due to recent industry changes.
      * If you were pre-approved before 8/1/2007 you need to have your lender re-verify your terms in writing.

Mortgage Industry Meltdown

What’s Happening?
     In recent weeks, lending criteria for home mortgages have tightened considerably, making it more difficult and expensive to borrow when purchasing or refinancing a house.
What Happened?
     First, housing prices, after enjoying a huge run up over several years began cooling. Then, many borrowers who had taken out mortgages with low teaser rates could not make payments when those variable rates reset.  Mortgage delinquencies and defaults, especially in the sub prime market, began rising.
     As a result the secondary market on Wall Street for sub prime and other risky home loans dried up. Most home loans are repackaged and sold to investors.  Now, faced with nowhere to sell those loans and get fresh capital, scores of lenders all over the United States have closed, went bankrupt, or stopped making certain kinds of loans.
How will this affect Real Estate Sales?
      In the short run the impact of this Mortgage “Crunch” may be profound.  Already in Marin County we’ve seen real estate transactions fall apart as lenders become more restrictive with their lending parameters. Right now, fewer of the remaining lenders are offering second mortgages, 100% financing, loans to people with poor credit, and “no doc” loans that require little evidence of income or assets.
      Even though there are some lenders that say they are still funding loans to those with good incomes, large down payments, and strong credit scores…consumers will pay higher loan fees to compensate for the fact that the market for repackaged loans is skittish and many lenders must keep these loans in their own portfolios.
      Stay tuned.  The immediate impact appears to be significant.  The Mortgage Brokers I’ve spoken to in Marin County believe this is temporary.  But truthfully, only time will tell.

If you need help check out:
www.bankrate.com  Free, online source for personal finance information. Has an entire section on mortgages and local rate comparisons.
Or, contact a reputable local mortgage broker!
 
     

     
    

What Realtors Do To Earn Their Commissions

What do Real Estate agents do to earn their commission ? Ever heard that question? Here’s a comprehensive and humorous take on that very question from a Home Inspector who’s worked closely with Real Estate practitioners.
   ”They don’t do @*!?&% thing! Why they just stick a sign in the yard and make easy money.  I could do their job any day of the week.”
   Well, maybe you could do their job.  But it just won’t be any day of the week.  And if you intend to be successful at it (which means satisfying a bunch of clients, mortgage lenders, appraisers, and countless other associates), it will probably be EVERY DAY of the week as well as most nights, weekends, holidays, anniversaries, special occasions, sick days, snow days, and unpaid vacation days.
   Understood, there are Real Estate agents, and then there are good Real Estate agents.  Just like Doctors, Lawyers, and Indian Chiefs.  This article is about the good ones.  The ones who go to work before,during, and after the times mentioned above.
   To serve their clients and stay competitive in their profession, today’s Real Estate agent are expected, assumed, requested, required, and or demanded to perform, be knowledgeable of or have access to the following: Information Brokerage Services, Multiple Listing Services, tax rate adviser, appraiser, mortgage lender,financial planner, legal expert, credit counselor, city planner (fortune teller),building inspector, chauffeur, shuttle service, travel agent, tour guide, delivery boy, order taker, public relations expert, therapist,marriage counselor, family doctor, nurse, baby sitter, advertising executive, general contractor, construction estimator and superintendent, and multi-talented subcontractor (not excluding locksmith, yard man, maintenance man, garbage man, plumber, electrician, decoder scientist for alarm systems and programmable thermostats).
   They’re often perceived as the bad guy when interest rates go up and the bad guy when your house doesn’t sell by 10am the next day.
   It’s helpful if their talents include being a diplomat, a negotiator, a referee (similar to those used in Roller Derby and Monday Night Wrestling) and, in general, a walking bureau of information for everything about anything – including whose check is good and whose wife or husband isn’t.
   They must know about schools, churches, governments, public utilities, crime rates, world affairs, this weeks jail term for this weeks Environmental Protection Agency violations, future developments that no one has ever dreamed up yet, transportation, shopping, day care, soccer, T-ball,how many termites it takes to eat a house, every homeowners association formed since 12 BC and what kind of fences they don’t allow, should you water and fertilize the Bermuda grass before, during, or after mowing, the best place in town to buy pizza, if you can buy beer on Sundays, and at least two dozen other skills and talents that I don’t have room to mention.
   So, be nice to your broker/agent.  Next time you start thinking. “They have it so easy”, go spend a day with them.  You’ll soon realize that, like most of us, they work hard for their money, and your satisfaction really is important to them.

Mark Lomas              Marin Real Estate Blog                    MarinCountyRealEstate@gmail.com

Marin County Leads State in Health, Education, and Financial Stability

 

if(requestedWidth > 0){ document.getElementById(‘articleViewerGroup’).style.width = requestedWidth + “px”; document.getElementById(‘articleViewerGroup’).style.margin = “0px 0px 10px 10px”; } A new study says Marin children and families are tops in the state in terms of health, educational success and financial stability, but experts caution the results do not include everyone.The 2007 California County Data Book, published by the Oakland-based nonpartisan group Children Now, ranked Marin County first among the state’s 58 counties in eight of 10 major indicators of children and family prosperity. They include economic well-being, mothers who receive early prenatal care, preschool enrollment and English and math proficiency across all grades.

Marin scored better than the state and Bay Area averages in 24 of 26 sub-categories that examined how many children are in good physical condition, pass state high school exit exams and meet entry requirements for both state university programs.

“Every time we look, Marin does extremely well,” said Corey Newhouse, a senior policy associate with Children Now.

Kay Wernert, chairwoman of the Marin County Child Care Commission and director of Marin Head Start, agreed that local children are receiving exceptional health care. But she said there is a big group of children unable to attend services such as preschool because their parents earn more than federal poverty guidelines,

not enough to afford those programs on their own.”They make too much, but they can’t qualify,” she said.

Newhouse said Children Now performs the California County Data Book study every two years. The 2007 study is the fourth.

She said California has cut in half the number of children without insurance during the past 10 years. But she said rural children around the state still lack health insurance and access to preschool programs.

Children who do not have access to those services

(Click to enlarge)

during their early years have more problems later in life, she said.In the category of children with health insurance, Marin came in second place with 98 percent covered. San Francisco topped Marin, but only because officials there provide free health insurance for all children.

Wernert, of the county’s child care commission, credits the Marin County Board of Supervisors for spending on health insurance programs for children who otherwise would not receive it. “There may be only 100 kids in Marin who don’t have health insurance,” she said.

In terms of preschool attendance Marin, at 74 percent, had the highest rate of 3- and 4-year-old children enrolled in the state.

“It should be no surprise to us that Marin County is in a strong position as it relates to the state,” said Mary Jane Burke, superintendent of the Marin County Office of Education.

Burke said there is room for improvement because not all local children have access to proper health care and perform well academically.

“We must not rest on the fact that we’re in a good position,” she said.

Newhouse said a big reason Marin does so well is its per-capita income, which is twice the state average. But she noted that 6 percent of Marin’s children – or 2,996 kids – are considered very low income.

“Even for the counties at the top, there are still a lot of families struggling,” she said.

Ethel Seiderman, executive director of Parent Services Project, said Marin’s affluence doesn’t reflect the pinch many local families feel. She said child care costs more in Marin County than almost anywhere in the state.

In addition, she said there are 800 to 1,000 children who need child care in Marin but whose families are unable to find it or afford it.

“We need to take the rose-colored glasses off,” she said. “There is a needy population here.”

Neighbors from Hell?

     Earlier this year ,Diane Tuman of Zillow.com, posted an article in Zillow’s Real Estate Blog in response to an article/post from Bradley Inman’s Inman Blog about a “Noisy Neighbor from Hell”. The article Diane posted led with the above photo in which a neighbor war in Utah led one neighbor to install a vent on his house in the shape of a middle finger salute.  He would not remove it until his neighbor apologized.  They did and he did.

     How many neighbor from hell stories are there out there?  Your stories are more then welcomed!

     For those Realtors that live in California, you should be aware of an initiative passed by the state, that could forever change your thinking on what  a residential neighborhood is.   The Marin Independent Journal has been reporting on a property owner in San Rafael that has been purchasing homes in a fairly exclusive subdivision of San Rafael.  Each of these homes has been converted into commercial Rehabilitation facilities.  When the neighbors found out what their new neighbor was doing, with these homes he’d just purchased ,they then found out that the State of California  supports this kind of commercial property use in residential areas.  By passing this initiative the State allows the commercial use of a property to supersede existing zoning regulations.  Think the neighbors are happy about this? 

     One party doesn’t have to play by the rules that everyone else does.  And that individual is increasing their property values at the expense of their neighbor’s property values.

     Has a precedent been set here? Can the new property owner that’s operating these rehab facilities
(for alcoholics and drug addicts), then sell the property to someone else who wants to run a similar business
for profit?

     This is only the beginning.  Another similar initiative passed by the State of California allows for large commercial Day Care Centers also to be placed in residentially zoned neighborhoods. And, as in San Rafael, the State super cedes existing zoning regulations.  One such Day Care Center is operating in Tiburon, California. 

     Is their a Rehabilitation Facility, or a large Day Care Center moving into your residentially zoned neighborhood?    Don’t be too sure….   

     Please, if you have any interesting Neighbor’s From Hell stories, I’d love to hear them ! 

Are Your Views Protected in Belvedere and Tiburon California? Not always…

 On June 18, 2007 the Marin Independent Journal reported that Belvedere resident Robert Bernheim is appealing before the Belvedere City Council and Planning Commission, with several neighbors, to protest  the new construction where steel columns and platforms have unexpectedly jutted into their views.  Belvedere City Manager George Rodericks said the issue with the construction project is that ”the neighbors should have been more aware of what that structure was going to be.”
     The IJ also reports that, “the latest view snafu follows other view related discussions in nearby Tiburon over the past few months, including the term “borrowed views” (sight lines that cut across a neighboring vacant lot) in the town’s construction guidelines.  And, as you’ll see below, this also applies to 1 story homes that want to build a second story.
     Would someone from the Town of Tiburon, and the City of Belvedere, clarify publicly that their respective Tree and View ordinances are guidlines, and do not assure a property owner that those guidelines will protect their views.  Having attended many Town of Tiburon Town Council meetings, and after many conversations with Tiburon’s Planning Department, I’ve learned that if you live alongside or above a vacant lot, or a 1 story home, the potential for that property owner to build a two story home is a very real possibility.
     Unless there are pre-existing height restrictions in your neighborhood, subdivision, CC&R’s, or height restrictions in your Deed , every property owner has the right to build up to the maximum height.
     Tiburon and Belvedere could do a better job communicating this.  It’s unfortunate that Robert Bernheim and his neighbors were blindsided by this information.  Even Rodericks acknowledged that, “maybe the City could have done a little more outreach.” You think ?
     Almost 2 years ago a property owner on Palmer Avenue in Tiburon submitted a plan to tear down his one story home to build a huge 2 story house in front of the neighbor’s primary views.  The neighbors appealed the application.  Before the Town of Tiburon approved the second story, councilman Andrew Thompson told the neighbor that, “they’d had a “borrowed view” for 29 years.”
     Not too long ago a home sold on Avenida Miraflores in of Tiburon.  The owner represented that the house below would never be able to build a second story because the the Town of Tiburon protected property views.  Curiously, the owner below, has every intention to build a second story.  Do you think there might be a huge problem beging to brew here?
     Both Tiburon and Belvedere could do a better job making this information more public.  This is an unpoplular subject for affected homeowners, sellers, real estate agents,  and Planning Departments .  Wouldn’t it be in everyone’s best interest to shed some light on ”borrowed views”?  Each individual property has it’s own particular set of issues, and typically view issues are addressed on a case by case basis.  Nonetheless, long time residents and prospective home buyers should be aware of all the possiblities here … you think?

For the whole article click below:
http://www.marinij.com/fastsearchresults/ci_6167323

Marin County Real Estate Blog ………   Mark Danforth Lomas

Realtors, 8 Safety Tips to Protect Yourself

 It never hurts to be careful in this crazy world we live in.  Here are 8 tips for Realtors to consider so they can protect themselves. We work in a very unusual work environment, where occassionally we are meeting strangers.  Recently, in a Mill Valley, California Real Estate office, a well dressed couple walked in, and robbed the floor agent.   Another couple with a similar profile has been also robbing houses throughout the Bay Area.    If you feel this information is helpful, please pass it on to someone you know.

      1.  (Tip from Tae Kwon Do)  The elbow is the strongest point on your body.  If your close enough to use it, do!
      2.  From a tourist guide in New Orleans.  If a robber asks for your wallet or purse, Do Not Hand It To Him!  Toss it away from you…chances are he’s more interested in your wallet or purse than you, and he will go for the wallet or purse.  Run like mad in the other direction!
      3.  If you are ever thrown in the trunk of a car, kick out the back tail lights and stick your arm out the hole and start waving like crazy.  The driver won’t see you, but everybody else will.  This has saved lives.
      4.  Women have a tendency to get into their cars after shopping, eating, working, ect. and just sit (doing their checkbook, or making a list, ect. Don’t Do This!  The predator will be watching you, and this is the perfect opportunity for him to get in on the passenger side, put a gun to your head, and tell you where to go.  As soon as you get into your car, lock the doors and leave!
         If someone is in the car with a gun to your head…Do Not Drive Off, repeat Do Not Drive Off! Instead gun the engine and speed into anything, wrecking the car.  Your air bag will save you!  If the person is in the back seat they will get the worst of it.  As soon as the car crashes bail out and run.  It is better than having them find your body in a remote location.
      5.  A few notes about getting into your car in a parking lot, or parking garage:
      A. Be aware: look around you, look into your car, at the passenger side floor, and in the back seat.
      B. If you are parked next to a big van, enter your car from the passenger door.  Most serial killers attack their 
          victims by pulling them into their vans while the women are attempting to get into their cars.
      C. Look at the car parked on the driver’s side of your vehicled, and the passenger side.  If a male is sitting
          alone in the seat nearest your car, you may want to walk back into the mall, or work, and get a guard
          or policeman to walk you back out
          It is always better to be safe than sorry  (and better paranoid then dead)
       6.  Always take the elevator instead of the stairs   (stairwells are horrible places to be alone and the perfect
crime spot.  This is especially true at night.     
      7.  If the predator has a gun and you are not under his control, Always Run!   The predator will only hit you (a running target) 4 in 100 times: and even then, it most likely will not be a vital organ.   Run, preferably,  in a zig zag pattern!
      8.  Women try to be sympathetic: STOP.  It may get you raped or killed. Ted Bundy the serial killer, was a good looking, well educated man, who always played on the sympathies of unsuspecting women.  He walked with a cane or a limp, and often asked for help into his vehicle or with his vehicle which is when he abducted his victims.
       Not too long ago I was leaving a Broker’s Open House with a friend who’d used his lockbox for us to gain access to the property.  As we were leaving, a very good looking young couple pulled up in a brand new BMW and pretended they were agents also out on the Wednesday’s Broker’s tour for Southern Marin County.  They said they were agents, and could we leave the door open so that they wouldn’t have to use their lock box key.  My friend trusted them and let them in,  and the next day he was called by the listing agent (Marin County lock boxes code who was in the house, and at what time) to find out they had robbed the house.  Fellow realtors, please be careful, and all the best. 

Careful when considering using an Online Lender

         If you’re the kind of person that is more comfortable working with people  virtually, Online Lenders might be a good place to start shopping for a loan. But, if you’re the kind of person that likes to deal directly with the person that will be delving into your personal finances, there definitely are merits to working with a local lending institution or mortgage broker. Now more so then ever with all the recent events that are taking place in the Mortgage Industry.        A few years back Realtors were concerned when they found out that their buyer was working with an Online Lender. Oftentimes mortgages originated online closed late causing all kinds of problems. If your loan isn’t approved within the time frame set forth in the contract, or doesn’t fund on time to close, your out of contract. 

        I was working with a couple that had been Pre-Approved online not too long ago. When it came time to remove our loan contingency they were advised to do so by the Online Lender.  Then, when it came time to close escrow, the Online Lender decided that they would not fund the loan? Two days before closing, we found a local lender that was able to fund a week later, and they went ahead with their purchase. What a roller coaster ride!
       Initially, the only way to communicate with this Online Lender was via email.  When things went south, they were able to get a phone number for a manager that wasn’t always easy to reach?

                  Dian Hymer, an excellent journalist that is featured in the Marin Independent Journals Home and Garden section reported, “Anecdotal evidence suggests that the world of online lending has improved. Recently, well-qualified buyers with a large cash down payment had no trouble closing the purchase of their new home on time using an online lender. However, there were a few hiccups along the way.

                  Fortunately, they were hooked up with a good real estate agent who helped the process along. The buyer’s agent knew that the seller of the property was a stickler for detail and unforgiving by nature. So the agent encouraged her clients to submit a second application to a local mortgage broker. That way, if the online lender failed to perform at the last minute, the buyers could proceed with their second option and close the purchase.

      The appraiser sent by the online lender was from out of the area and knew nothing about the 
local market. The agent provided the appraiser with comparable sales information that was appropriate for the property in question. Armed with this information the appraiser was able to turn out a finished report in two days.”

      Dian also suggest,”You may be able to find a lower interest rate or fees online but there is likely to be a tradeoff in terms of service. Buyers whose loan qualifications are marginal, or buyers who are trying to buy in a competitive market, will probably have better success working with a local mortgage professional.”

Dian Hymer is featured regularly in the San Francisco Chronicle and the Marin Independent Journal.
Marin Real Estate      Mark Lomas    2007