Gene Ward's Real Estate Blog

It's hard work

Gene Ward (Area Pro Realty NorCal) — Mon, 14 Sep 2009 18:13:01 -0500

Real estate, where we all make tons of money, drive fancy cars, wear stylish clothing and eat in expensive restaurants, yeah, right.

The real estate business is dynamic, changing conditions mean brokerages and agents have to stay on top of what works and what doesn't. Is it a seller's or buyer's market? Are interest rates going up or down? How much inventory is out there?

These questions and many more are presented everyday to those working in the real estate business. One of the most important question for most is, "where is my next deal coming from", or "how do I find more clients". The life of an entrepreneur, it's so wonderful and exciting!

The answer to these types of questions depends on you and what you are willing and able to do. Walk neighborhoods, mail postcards, buy Internet leads, hold open houses, social networking, the list is endless. What do you feel comfortable doing, find out what it is, that way you'll do it consistantly until it produces results. If you hate holding open homes don't expect that activity to produce results. Your real feelings will shine through the veneer and devulge your true desire to be elsewhere.

Not all agents work the same, what works for one agent may not work for another. For example, I won't buy internet leads from the lead aggregators, not that I don't think internet leads have value, it's just that I believe the aggregators are stealing our business then selling it back to us. So if internet leads are your thing, generate your own through social networking, websites, blogs, etc., or buy leads from an agent recommended aggregator. Make them prove their leads produce results, talk with their existing agent clients and make sure you hold them accountable. And if they won't let you try before you buy, keep looking.

If you love to meet and talk with real live people, hold open houses or walk the neighborhoods, this may be exactly what is needed to get your real estate business moving. It's amazing the effect any activity can have on our businesses.

One of the things I like most about the Area Pro Realty franchise is you are allowed to be who you are and run your business so that it meets your needs and your clients. Whatever floats your boat, as long as it's legal and ethical, you'll get the support of the whole company. So whatever "Your Thing" is, do it often, do it right and always remember, Never give up, never surrender.

If you are an experienced agent looking for the right career opportunities, or a broker interested in the availability of an Area Pro Realty franchise in your area, follow these links and/or call Mike Volkin for more information, you'll be glad you did. (925) 798-2732

Welcome aboard to our newest franchises:

Area Pro Realty Treasure Coast, Stuart, Florida
Area Pro Realty East Bay, San Ramon, CA.
Area Pro Realty Mount Diablo, Clayton, CA

Alamo Home Search and Market Conditions

Gene Ward (Area Pro Realty NorCal) — Sat, 08 Aug 2009 12:36:47 -0500

If an Alamo home search is in your future the following market statistics and conditions are encouraging.

Active Listings = 133

Total Pending Sales = 29

- Pending Short Sales = 11

- Pending REO (bank owned), = 1

- Pending in Last 30 Days = 15

Months of Inventory (Active Listings divided by pending sales in last 30 days), = 8.86 months of inventory.

Sales in the upper end market seem to be doing well compared to other areas here in Contra Costa county. Alamo has always been a desirable area so those that can afford to move up are doing so.

If you are in the market for an Alamo home now is the time to make your move before interest rates begin their enivitable climb. Jumbo loans are now available at interest rates far below where they were at the beginning of this year. For more information about Alamo and available properties give me a call or shoot me an email to start your Alamo home search.

Open House in San Ramon, CA

Gene Ward (Area Pro Realty NorCal) — Sat, 01 Aug 2009 11:50:43 -0500

Do you have any buyers for the San Ramon, CA area? If yes, stop by my open house this Sunday, August 2nd between 1pm and 4pm. This is a fantastic home with over 1/2 acre, RV parking, 3058 sq. ft. single level home. For more information visit the properties web site here.

http://909regencycourt.epropertysites.com

Can't think of a thing to blog about

Gene Ward (Area Pro Realty NorCal) — Mon, 27 Jul 2009 17:52:39 -0500

As I was getting ready to write this blog I realized I had no interest at all in what I was goint to blog about, after all, it's Monday. I should be blogging about a new listing and the low ball offer we received after just one day on the market.

But... I would rather talk about the great time I had this last Sunday. You see, I like to ride motorcycles, I like to ride them as often as possible. In fact the more time on a bike the better.

I swear I'll take the camera next time because you just won't believe how absolultely beautiful the California coast was. Myself and two friends rode from the east bay over the San Rafael bridge. We took Lucas Valley road through the country to Highway 1. Rode north to Tomales bay and stopped at Tony's on the water for BBQ oysters. Man where they good! Stopped for gas and met two other bikers from South Carolina. They were on a road trip across country to S.F. then north up Hwy 1. They were eventually going to end up in Sturgess before heading back home. Very nice people come from S.C.

The weather was perfect, fog was just on the coast enough to need a jacket. The ocean is fantastic and Hwy 1 winds it's way up the coast line. We went north to Stewarts Point. There is a road heading east from Stewarts Point that looks a little sketchy, always claimed I would take that route someday. Sunday was the day. What a great 47 mile ride through the wilderness to Healdsburg. We didn't get home until after 7pm.

BTW - We did counter the offer, was countered back and generated a counter to that counter. We'll see what happens in the next day.

Just a sidenote; one of the other bikers riding with us was the home owner for the listing.

It's was a wonderful life until Monday roled around.

Alamo CA Home Search and Market Report

Gene Ward (Area Pro Realty NorCal) — Mon, 13 Jul 2009 12:46:41 -0500

I spent Sunday riding around Alamo, Ca to see what's happening in the housing market. What I saw during my Alamo home search was nothing less than a market correction still playing itself out. As I'm sure you are aware, 2006 was the last year of the "booming real estate market". Some say the downturn started in 2005. As unemployment (currently 12%), continues to rise in California, even more homes will be put up for sale, most not voluntarily.

Let's compare last months market report (June/17/2009), with the current market data to determine the direction of the market, up or down.

Status June July

Active 132 142

Pending (last 30 days) 14 7

*Months of Inventory 13.2 20.3

*Months of inventory is determined by dividing the number of pending sales in the last 30 days into the number of current active listings.

The number of active listings has increased about 9%, but the number of properties that went pending decrease by 50%, which was a slow month.

I don't enjoy reporting on poor market performance but as a real estate agent and broker I must always be honest with my clients and the public.

If you need to sell your home, visit 10 homes for sale in your area that compare to your property. Grab the property brochure and start making notes about the good, the bad, and the ugly. Now go home and view your property just like a buyer would. Compare your home's features, location, condition, etc., with the 10 homes you just visited.

If you were in the market to buy a home in Alamo, would it be your home or one of the others? Let's suppose you selected your current home for whatever reason, how much would you offer? This is an exercise you really should perform as correctly pricing your home in this market will guarantee your home is sold when so many are available.

On another note, I have a listing coming on the market this thursday in San Ramon, view the property site here. http://909regencycourt.epropertysites.com

Commercial Loan Modification

Gene Ward (Area Pro Realty NorCal) — Wed, 01 Jul 2009 12:58:31 -0500

We offer assistance to commercial building owners having trouble making the loan payment because of economic conditions. To obtain your free loan consultation simply go to http://www.geneward.com/?q=loan+mod and fill out the contact information form.

Many businesses are struggling to meet their obligations on their commercial real estate loan. The staggering number of defaults have influenced many commercial lenders to start renegotiating the terms of commercial mortgages.

Our team of well-trained professionals specialize in commercial loan workout solutions.

We are committed to our clients and their loan modification needs. Our strong work ethic and persistence are the reason we get results. The organized and efficient back office strategy we implement has literally saved commercial property owners from bank foreclosures and has helped these owners become cash flow positive.

Commercial Loan Modificaton Services

Comprehensive evaluation of your commercial portfolio and Financial Situation

Thorough analysis of your property and consultation from one of our Loss Mitigation / Commercial Loan Modification Professionals

Present all options to you so you can make an informed decision

Renegotiate the terms of your existing commercial mortgage to help avoid a default

Restructure your current loan for better property income cash flow

Negotiate favorable terms with your lender so you get the best deal possible

What is a commercial loan modification?

Commercial Loan Modification is when a business or individual that owns a commercial property such as a mall, hotel, or apartment complex, agree with the mortgage holder to permanently alter the terms of the original loan.

San Ramon estate home

Gene Ward (Area Pro Realty NorCal) — Wed, 17 Jun 2009 13:55:57 -0500

This is a sneak preview of a San Ramon, CA estate home that will be coming on the market in the first week of July. It is not yet on the MLS so if you are a real estate agent please don't try to show yet. Call agent for more information.

This home is in the San Ramon, Ca neighborhood of Old Ranch Estates. There is no HOA or assoicated dues and rules. It's one of the only detached single family home neighborhoods built in the 80's in San Ramon that doesn't have an HOA.

The current owner kept an eye on this neighborhood for several years before they purchased this unique property. The side yard access and RV pad were big selling points. Custom estate fencing was added to sheild the RV from the street. This lot is .56 acres, mostly flat, fully fenced and abuts open space at the end of a cul-de-sac.

View the online property website for photos and additional information.

http://909regencycourt.epropertysites.com/?refid=consolidated.data.base

Alamo Home Search - REO and Foreclosures

Gene Ward (Area Pro Realty NorCal) — Wed, 22 Apr 2009 18:43:08 -0500

While checking on the housing market conditions in Alamo, CA I used Google base to search for "Alamo foreclosures and REO properties", there were 20 listed. I used realty.trac and found 17, which is correct? Not sure but the numbers below still paint a bleak picture for this upscale community of Alamo.

17 Bank owned

43 in Default (pre-foreclosure)

6 Trustee Sale properties in Auction.

From the MLS:

132 active listings. (That's the most I've seen in over 10 years.)

14 Pending Sales (Just 10 went pending in the last 30 days)

132 divided by 10= 13.2 months of inventory.

With 13.2 months of inventory I would say it's definatly a BUYER'S market.

I thought we would be on our way out of this mess by now but I'm not sure anymore when that will happen. So if you have a home for sale, or thinking of selling one, you have a lot of competition, be prepared to negotiate everything.

Is this a good time to buy? Maybe, depends on where you think the bottom is. If you're thinking of buying a home and you have a secure job or business and need to move or want to move up, go for it. Take on one of those bank owned properties, or a short sale, you're bound to get a pretty good deal.

Current real estate market for Alamo, CA

Gene Ward (Area Pro Realty NorCal) — Mon, 30 Mar 2009 15:39:03 -0500

So... How is the Alamo CA housing market doing today? With all the talk about the big increases in housing sales here in California you might assume everything was great, right? Well in Alamo and the surrounding communites of Danville, Blackhawk, San Ramon and Walnut Creek you would be wrong.

The Alamo, CA community has not seen a single family detached home priced below $600,000 since way back in 1996/97. I was doing my Alamo Home Search this weekend and found a home priced at $625,000, granted it was very close to the freeway and on a busy road but still, it's a detached home with a 1/2 acre lot. It is not a fixer and had many fine upgrades. When and if an offer is presented on this house you can be pretty sure it will be closer to $600,000, less than the asking price.

There are 116 homes listed in Alamo as of today. Just a few years ago the average number of listings was between 40 and 60. See the charts below for Average Days on the Market and Months of Inventory. As these charts go back two years they graphically tell a story. So why are these previously sought after Alamo homes languishing on the market?

There are a few good reasons...

1. Interest rates on loans exceeding the FHA conforming limits start around 6.7%, This rate requries at least a 20% down payment and an excellent credit score. In comparison, conforming loans can be found today under 5% with as little as a 3% down payment. And if it's a jumbo loan you'll need to find a bank willing to lend.

2. Jobs - Even in the executive arena people are loosing their jobs. No job, no money to pay the mortgage.

3. Option Arms and Alt A loans in default. Many of these currently listed Alamo homes that are either in foreclosure or REO bank owned were purchased between 2002 and 2006, when prices were at their peak and the banks were lending to anybody with a breath. In fact, I'm not sure breathing was even a requirement!

Is it going to pick up anytime soon? That's the $64,000 question and the answer is directly related to jobs and interest rates. If the government keeps printing money interest rates will most certainly rise. If businesses can't borrow money job growth won't happen. It all depends on our current batch of leaders and how they handle the current problems. If they do a good job we'll come out of this sooner rather than later. If they get it wrong, all bets are off. But if you are in a position to buy a home in Alamo, now may be a great time. Prices and interest rates are low but no one knows for how long. Find a great agent with knowledge of the market and proceed with caution.

History of Home Prices and Interest Rates

Gene Ward (Area Pro Realty NorCal) — Wed, 18 Feb 2009 20:21:53 -0600

Average Selling Price for Detached Single Family Homes

Average selling price, since 1983, for detached single family homes for the towns of Alamo, Blackhawk, Danville, San Ramon and Walnut Creek, California, with corresponding inserted interest rate chart.

I've charted and graphed price changes for the last 25 years in these areas. It's interesting to note that if you were to project a line at an angle aligning the most stable years you'll see we're still about 25% higher now than we should be, but that's just my opinion.

Take a look at the interest rate chart which goes back to 1963. Current interest rates are exactly the same as they were in 1963. This is a historic low for interest rates but hang onto your hats, it's going to be a bumpy ride.

Also note how high the interest rates were in the late 70's, early 80's. If you're old enough to remember, and I am, that's the last time the government tried to control the free market economy (Jimmy Carter years).

National Average Mortgage Contract Interest Rates

To put the current mortgage interest rates into perspective see the mortgage interest rate chart below. These rates start in 1963 and go through 2008. This chart confirms that we are experiencing historically low mortgage interest rates.

I had no idea!

Gene Ward (Area Pro Realty NorCal) — Sat, 14 Feb 2009 12:55:36 -0600

Just discovered some interesting information about a group of people that work for you.

Read to the bottom, you'll be surprised by the answer.

500+ employees

29 have been accused of spousal abuse.

7 have been arrested for fraud.

19 have bounced checks.

117 have bank rupted at least 2 companies.

3 have done time for assault.

71 cannot get a master card or visa because their credit is so bad.

14 were arrested for drug charges.

8 have been arrested for shop lifting.

21 are currently defendents in lawsuits.

84 were arrested in the last year for drunk driving.

Who is this infamous company?

It's your U.S. Congress

To find out the real truth about how we got into this housing mess follow this link and read the article "How we got into this mess".

http://www.campaignforliberty.com/article.php

Get involved, ask questions, vote.

Is it time to buy a home yet?

Gene Ward (Area Pro Realty NorCal) — Sun, 08 Feb 2009 17:07:57 -0600

Last year was a slow one for real estate sales but it did start picking up towards the end of the year when buyers started realizing that homes were now affordable. Lot's of bank owned properties being sold 50% less than they sold for just a couple of years ago. If fact, everyone of the homes I sold last year were bank owned, REO properties.

We just went pending on a seller owned COOP I had listed in the Rossmoor retirement community back in 2007 for $180,000, but did not get any offers. We rented it out for one year then put it back on the market in December 2008. The new listing price was $140,000, then reduced to $129,888. This was a property that sold in 2005 for about $300,000. It will close in 15 days.

So what has changed so much that a property would be reduced by more than 50% and still have difficulty selling? It's simple, there were few buyers ready willing or able to purchase in 2007/2008 and the banks did not want to make loans without 20-30% down payment.

Now that interest rates and home prices have dropped to reasonable levels buying just makes a lot more sense than renting. Not to mention the $15,000 tax credit that will be offered very soon.

The majority of my real estate business is representing buyers. We've been writing offers on bank owned (REO's) and have the knowledge and experience you need to make sure you get the best deal possible. As a standard practice we write into the offer that the seller (bank) pays up to 5% of the value of the purchase price towards the buyers closing costs. That even includes buying down points on your new loan's interest rate.

As a example, let's say the loan interest rate is 5%, part of the seller's consession can be used to buy down (points), the loan interest rate to 4.5%. That means the loan payment will be approximately $450 per month per $100,000 borrowed.

Considering the historic lows in interest rates, the availability of reasonably priced homes, banks paying the closing costs and FHA loans with as little as 3% down, it's time to take a look at the benefits of home ownership.

So if you have been thinking of buying a home but have been afraid to do so, now's the time to reconsider. We've been through tough times before but you can be assured that America will survive and prosper. Home prices will stablize when the cost of replacement is more than the cost of existing homes. Do the math to determine if existing home prices in your area are less than the cost to build new. If they are, it's time to seriously consider buying a home. Give me a call if you would like to discuss further. We have many ways to structure a deal that will benefit your needs, not the banks.

Is it to late to stop big government?

Gene Ward (Area Pro Realty NorCal) — Sat, 07 Feb 2009 17:15:55 -0600

I believe the root cause of all our current problems is the government and the policies they enact. Even well meaning programs that sound good will have unintended consequences. Social Security is a good example of failed socialist programs. I know I'll never get back anywhere near the amount I've contributed. If only I could have saved that money in my own account. After all, isn't it my money?

Freddie and Fannie providing loan guarentees to unqualified buyers at the request of the government during the 90's was the start of this housing crisis. It was a noble cause but like all socialist well meaning programs, they don't work because of human nature. Banks that provided these types of loans should be held responsible. The investors should lose their investments, not receive bailout money from "we the people". (Remember the S & L Crisis of the 80's? This was not supposed to ever happen again.)

Less government is the best government. If you don't believe it take a look at the state of California as an example of big socialist government. We have many well meaning government programs to take care of every conceivable situation, including the required care and feeding of illegals. Over 50% of all school children here get free school lunches because they are poor. Does that make sense to you? I remember buying or taking a lunch when I was in school, and we were poor. Now "we the people" of California pay some of the highest taxes in the country because our state government is afraid to deny services to anyone, even when we can't afford it.

What can "we the people" do about it? The next time you vote, vote for anyone except a Republican or Democrat. They just play off each other to scare the public. There really is no difference in these two parties. Don't be fooled again. The Libertarian party is starting to look pretty good about now.

To get our country and freedom back a good first step would be to require all elected officials to uphold the constitution of the United States, after all, didn't they swear on a bible when they were sworn into office? To many have fought and died for our freedom. Please don't forget their sacrifices. We owe it to our children to pass on the freedom so many have fought and died for.

Walnut Creek, Rossmoor Listing

Gene Ward (Area Pro Realty NorCal) — Sat, 29 Nov 2008 17:50:31 -0600

Gene Ward | Area Pro Realty NorCal | 925 798-2720

1300 Canyonwood Court, Unit 7, Walnut Creek, CA

Rossmoor 55+ retirement community, available 2 bedroom 1 bath unit.

2BR/1BA Co-Op

offered at $129,888

Year Built	1967
Sq Footage	1,054
Bedrooms	2
Bathrooms	1 full, 0 partial
Floors	1
Parking	Unspecified
Lot Size	Unspecified
HOA/Maint	$767 per month

DESCRIPTION

Fantastic Rossmoor retirement unit with view of the hills from the private balcony. Clean and neat this unit is ready for the fussiest buyers. Close in carport parking and laundry. Enjoy this 55+ retirement community, it's golf course, tennis, swimming and active lifestyle.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Living room
Dining room	Dishwasher	Refrigerator
Stove/Oven	Microwave	Balcony, Deck, or Patio

COMMUNITY FEATURES

Covered parking	Guest parking	Business center
Clubhouse	Laundry on-site	Storage space(s)
Fitness center	Swimming pool(s)	Sauna/Spa
Tennis court(s)	Golf course	Secured entry

ADDITIONAL PHOTOS

Seller contact info:

Gene Ward

Area Pro Realty NorCal

925 798-2720

For sale by agent/broker

Equal Opportunity Housing

Posted: Feb 6, 2009, 4:17pm PST

Looking for MLS software

Gene Ward (Area Pro Realty NorCal) — Tue, 25 Nov 2008 18:37:08 -0600

We're completing the design of our new company websites and was wondering if anyone in the tech corner knows of a good MLS IDX form provider. We will be building our own company listings database but would really like to have the ability to feed MLS listings into each franchisee and agent sites.

We are a new franchise with a business model not at all like the traditional brokerage houses.

Please take a look at our Area Pro Realty websites. Any suggestions?

www.areaprorealty.com this is the franchise website

www.geneward.com this is the Area Pro Realty NorCal web site. This site has more features than the Franchise site above.

Best regards,

Gene Ward

ActiveRain feed has problem in Firefox

Gene Ward (Area Pro Realty NorCal) — Tue, 18 Nov 2008 18:32:17 -0600

I checked all settings in my Firefox browser but could find no settings to properly display my AR blog feed.

The AR rss feed is in an iFrame and it works great in IE 7 but not such luck in Firefox version 1.5.0.1.

This is what's displayed. Anyone have this problem and find a solution? Is it a setting in the blog feed?

This XML file does not appear to have any style information associated with it. The document tree is shown below.

It then dutifully displays all text along with the markup language. Any insite would be appreaciated.

Open this link in Firefox and let me know if you see the blog formatted correctly.

http://www.geneward.areaprorealty.com/My%2BReal%2BEstate%2BBlog

Alamo Home Search

Gene Ward (Area Pro Realty NorCal) — Mon, 17 Nov 2008 15:08:43 -0600

I ran into one of my past clients at the Alamo hardware store this weekend. He wanted to know how the housing market was doing in Alamo as he was thinking of selling his San Ramon home and buying a home in Alamo. I represented him when he purchased the San Ramon home back in 2003. He would like to move to Alamo if he can find a home and purchase it at a good price. His only concern was his San Ramon home might not get top dollar.

What he didn't understand is if his current home sells for less than he thinks it's worth, any home he finds for sale in Alamo will also be selling for less than that seller thinks it's worth. My suggesting, let's perform an Alamo home search and see what's out there that meets his needs. If we can find homes in Alamo that work we could then list his San Ramon home. The end result would be he gets a home in the town he really wants to live in, Alamo.

Alamo California current market conditions

Gene Ward (Area Pro Realty NorCal) — Mon, 15 Sep 2008 14:09:57 -0500

Spent some time driving around Alamo, CA looking at homes that just came on the market. Whenever I do an Alamo home search I always find something interesting. A little research provided some information about the current market conditions in the town of Alamo California.

In a community of around 13,000 people there are 145 homes for sale. This is a lot of inventory for Alamo which usually falls between 40 and 80 listings. Is the market turning? I don't see it here in Alamo. There were a lot of short sales listings. The current market value of active listing;

high price = $8,498,000

low price = $545,950

average price = $2,065,726

median price = $1,649,000

There are 16 listings that are currently pending.

Since July 1st of this year 17 listings have sold.

With a low number of 17 homes sold since July 1st of this year it does not look like the market has picked up at all. In fact it looks like it's getting worse. Just 17 closed escrows in 2 1/2 months. At this rate and with the slow winter season upon us it will take many more months to reduce the unsold inventory of 145 homes. Maybe when the numerous short sales turn to REOs and the prices drop we'll see more sold activity.

This brings me to the big question, how did we get here? There are a lot of opinions on this subject and all have a bit of truth to them. Here's my two cents.

Our elected officicals are no longer held responsible for their actions, missed budget deadlines, special interest monies, etc..
Since when did the USA start handing out money to the same banks that caused the problem?
When did the taxpayer become financially responsible for the actions of lenders and bankers?
Are your taxes to high, to low? Is 50% of your income paid to the government OK?
Do you believe the taxpayers should be responsible for the health and welfare of those entering this country illegially?

It's time to take a look at where we are headed as a country. We need to be well informed of each presidential candidates positions and philosophy. Do some research on each candidate. How did they vote on bills before them while in the senate. Did they vote at all or abstain. By researching what they've voted for or against in the past you'll get a pretty good idea of what they'll do in the future.

Check out this blank obama book video, http://www.obamaresearch.com/ the author is looking for his credentials to be our next president.

The USA is in trouble if all it has to offer are the choices the democrats and republicans are offering. Yes there are other parties but most voters don't hear much about them from the news media. No wonder the founding fathers were against the party system.

Frustrating Market!

Gene Ward (Area Pro Realty NorCal) — Sat, 09 Aug 2008 12:46:44 -0500

We're supposed to be in a down market right? My last three offers were 2 REO's and 1 Seller owned property, all three were multiple offer situations. I have a qualified buyer with a 20% down payment and excellent credit scores. We lost all three to all cash offers from investors. Our offers were in second place on each of the three. Seems the bank and sellers will accept all cash offers if it's basically the same as another offer that requires financing.

The listing agents told me the all cash offers were above the asking price, which was already higher than the property would appraise for, and so was ours. With the appraisal contingency in effect we know if the offer is accepted at the higher price the bank and seller will lower the price to the appraised amount to keep the transaction alive.

I understand the reasoning behind the banks and sellers decisions to take all cash but still can't help but feel frustrated. I know the all cash offers can still get financing before the close, and a lot do.

Not much can be done about this situation, just keep moving onto the next one and hope we find a property that is not in a multiple offer situation.

So if you think the market is stagnate, think again. It's alive and well, just takes a lot of dedicated work and knowledge of current market conditions to get it done. I spend a lot of time educating my buyers so they understand the market conditions. If you don't educate your buyers they may lose faith in your abilities and all the hard work you've done so far will be for nothing. Thankfully my buyers have been educated to the market conditions and stay faithful.

It happened just like I said it would

Gene Ward (Area Pro Realty NorCal) — Sun, 03 Aug 2008 18:10:06 -0500

This is a followup on an earlier blog post about a listing I had that expired because the sellers wouldn't listen to advice about the market direction.

http://activerain.com/blogsview/474653/Unrealistic-Sellers-Don-t

If they would have listened, they would be ahead approximately 30k and 40k. While listed with me there were two offers but they were rejected by the sellers. Both offers were good offers, just not the amount the sellers wanted to get. One offer was all cash. They were sure someone would come along and pay more for their home than it would appraise for.

To make a long story short, the home just closed escrow $15,000 less than the first offered received while listed with me. The second offer was $10,000 more than the one they finally accepted while listed with another agent. If they would have taken the first offer, not only would they be ahead $15K dollars on the offer price, they would have saved 6 months of mortgage and property tax payments. Each month was around $3,500 for loan and taxes. that's about 20k, plus the $15k from the first offer = $35,000.

That's a lot of money to lose because you won't listen to good advice about the direction of the market from an active agent.

Time off from real estate

Gene Ward (Area Pro Realty NorCal) — Thu, 17 Jul 2008 19:23:34 -0500

After reading Mike Mueller's blog about "Who's to Blame", I thought about the frustration this melt down has caused. So.... I thought about my bike trip a few weeks back and how it helped keep me centered. I needed a vacation from real estate more than I realized. Sometimes, all it takes is for use to think back on the good times to realize the present is not all that bad. Sure we are in a mess but we're digging our way out just a little every day. Hope these photos help sooth your nerves a little. If you ever get a chance to take a road trip do it. You meet some of the nicest and most interesting people. It really does expand your horizon and make you think about how really good we have it here in the good old USA.

What a wonderful week of riding through N. CA., Oregon, Idaho and Montana. My best friend and I rode 2600 miles in 7 days through some of the most beautiful country in the western US. I have done this before by myself but it's much better if a friend can ride along. Words can't describe the beauty of the open road so I'll insert a couple pics of my favorite roads, rivers and places. Enjoy.

Abert Lake, Oregon, Hwy 395 north of Alturas. Before you get your water skies out, it's a brine/alkali lake, but it's big and beautiful.

Payette River, Idaho, Hwy. 55 from Boise to McCAll

Payette Lake near McCAll Idaho. Looks like a smaller version of Lake Tahoe but without the crowds. Very u upscale community and the water is o'so cold!

Whitetail Lodge, McCall Idaho. Sits right on the lake. I highly recommend this lodge. The food, rooms, service and attitude are the best. The bridge on the left is where the Payette river exits the lake.

Heading north (hwy 55 to 95), from McCall Idaho to New Meadows. Twisty road follows this river.

Lochsa river, Hwy 12 Idaho. Heading north east from Kooskia to Lolo Montana. This is the Lewis and Clark Trail. Probably one of the most beautiful roads in the country. Over 100 miles of breathtaking scenery. It's so hard to take it all in as there is so much of it. Great bike road too!

Lochsa river, Hwy 12 near Lolo pass Idaho, 8236 ft. elevation at the pass with interpetive center.

Bitterroot mountain range, hwy. 93 from Lolo Montana to Salmon Idaho. Very beautiful area of western Montana with real friendly folk and 93 octane gas for my bike.

Salmon river, Hwy. 75 from Challis Idaho heading west towards Stanley Idaho

This is one of my favorite places. It's one of the most beautiful areas in the country. This is Stanley Idaho and the Salmon river. You can see the Sawtooth mountain range in the background. Just over this mountain range is Sun Valley Idaho.

Still plenty of snow around Crater Lake Oregon in the middle of June.

I'm not to happy in this photo because I know it's my last day on the road. The Immortal Tree which can be found on the Avenue of the Giants which parallels Hwy. 101 just south of Fortuna. BIG TREES!

Real Estate Market Update

Gene Ward (Area Pro Realty NorCal) — Fri, 06 Jun 2008 18:17:58 -0500

Have not blogged in a while so thought I'd at least add something about what I've been up to.

Who said the real estate market was slow? Seems like it was for a while there but not any more. I've been working with first time buyers lately and they just keep coming. My daughter introduced me to some of her 30 something friends and all are wanting to get into a home now that the prices have dropped to reasonable levels.

I love working with first time buyers, they need to be educated about the market, loans, neighborhoods, schools, etc., and these young professionals don't slack off when it comes to due diligence. I'm very impressed with their budgeting skills and the fact that they stick to it. They don't want to buy a home just because they can afford it, they want to buy a home they can feel comforatable in and still have money left in their budget to have a life.

Most homes are REOs so they take about 60 days to close and the sellers won't do anything and really stress the "AS IS" section of the contract. Even if damage is done while in contract, just try to get them to fix it.

In addition to real estate I develop software for real estate companies and agents. Still delivering a program we developed and released in 2004, Real Estate Real Easy. It's contact management, escrow tracking, accounting, mail merge, email, forms, etc. Great program with over 2000 installed to date. Those agents that use it, including myself, love it. Best organizational software for real estate agents. If interested take a look, we even offer a free demo version so you can check it out before purchase.

www.realestate-real-easy.com

In the final stages of completing a new real estate enterprise wide version web site CRM system. It's looking pretty good and should be done by months end. It will handle all the web sites for our franchisees and their agents, with a virtual office built-in. New Area Pro Realty franchises will be available nationwide in about one month. It's a virtual real estate company offering 100% commission and Low monthly and per transaction fee. I became involved a little over one year ago and find it the best business model for experienced real estate and loan agents. I'll keep you posted on the new company and web sites in a future blog.

Must get busy finishing up some loose ends as I have much to do before taking a one week motorcycle vacation through N. Calif., Oregon, Idaho and Montana. My friend and I plan on being on the road 7 days and about 3000 miles. It's been over two years since I took any time off so this is going to be fantastic!

Unrealistic Sellers - Don't waste my time

Gene Ward (Area Pro Realty NorCal) — Fri, 18 Apr 2008 15:24:00 -0500

Listing a home in this market takes a lot of research to determine the best listing price at which it can not only attract offers but also appraise at the purchase offer amount.

I just had a listing expire after 6 months on the market. The sellers asked that the listing price be higher than my recommendation. I informed them of the dangers of doing this, especially in a declining market. They said they were not worried about it until after the first of the year. Well, the new year rolled around and after much discussion I was able to receive a price reduction. Not enough of a price reduction to make much difference. The listing price was still about $50 thousand dollars more than the market indicated.

During the listing period we received two fair market priced offers, both countered by the sellers with a price that could not be justifed. As you might expect, both buyers walked. The second offer was 80% down, a quick close, and right on the money according to the comparibles. Even had an appraiser take a look at my evaluation and they came up with the same numbers.

The sellers were sent market updates and viewing activity reports weekly, indicating the home was getting good exposure.

One of the sellers felt they knew better how to market a home and insisted it be held open every Sunday. Even felt they knew better than I where to place the open house signs.

When it came time to expire or relist I told the sellers that without adjusting the price to what the market is saying their home is worth there was no reason to expect different results. The two offers were only $5,000 apart in price, with the first offer being more and the second less as the market had dropped a little more by this time. The appraiser and I both felt the home was in the range of $650,000 to $675,000, depending on upgrades. This home fell into the lower of the range as the kitchen and bathrooms had not been updated. The offers were $655,000 and $650,000.

After informing the seller that I would expect an adjustment in price, and that holding it open every Sunday was a bad idea, they decided not to re-list with me. I do not want to take listings that won't sell because the sellers can't or won't listen to what their agent and the market is telling them.

As I look back on this listing experience I keep trying to see if there was something I had done wrong. Even though I did everything right it doesn't matter when the sellers refuse to see the logic. So the lesson here I guess is this; Don't take a listing if the sellers are not willing to listen to you or what the market is saying. Of course you don't always know this in the beginning but I'm sure there are a few additional questions I'll be adding to my listing presentation interview.

Home sales in the San Francisco Bay Area

Gene Ward (Area Pro Realty NorCal) — Fri, 28 Mar 2008 18:44:05 -0500

Here are the latest Data Quick housing statistics for the San Francisco Bay Area 9 counties.

All Homes	Number Sold Feb-07	Number Sold Feb-08	Percent Change	Median February 2007	Median February 2008	Percent Change
Alameda	1,356	753	-44.5%	$585,000	$486,500	-16.8%
Contra Costa	1,160	753	-35.1%	$537,000	$450,000	-16.2%
Marin	228	136	-40.4%	$829,000	$775,000	-6.5%
Napa	93	57	-38.7%	$612,500	$525,000	-14.3%
Santa Clara	1,654	984	-40.5%	$677,000	$658,000	-2.8%
San Francisco	375	431	14.9%	$757,500	$736,000	-2.8%
San Mateo	528	343	-35.0%	$720,000	$646,500	-10.2%
Solano	458	278	-39.3%	$445,000	$350,000	-21.3%
Sonoma	453	254	-43.9%	$515,000	$400,000	-22.3%
Bay Area	6,305	3,989	-36.7%	$620,000	$548,000	-11.6%

Are the banks being reasonable?

Gene Ward (Area Pro Realty NorCal) — Fri, 28 Mar 2008 18:06:00 -0500

I have two offers on REO homes, both owned by the same bank. We are in contract on one after the buyers signed the banks counter offer. The other counter will be signed by the buyers today.

I did a CMA on the Brentwood home and the buyers offered a little less than the CMA recommended with up to 5% back to the buyers for closing costs. Now the appraiser has informed me that the home will not appraise for the amount offered. My CMA was about $5000 high according to him. That's still pretty close on a 399k listing price.

The appraiser is giving us this estimate before visiting the property. We had another appraiser do the same thing without knowledge of the first appraiser and he came in exactly the same. As I have visited the property and many others in the same price range/location/condition I think my estimate is closer to the real value. I take into account the ammenities, location and condition of the home compared to the others. This home was in great shape compared to the other bank properties.

What I'm wondering is this;

Will the bank be willing to lower the price to the appraised value and still leave in the buyers credits in place?

If the buyers decide to back out for some reason will the bank put the home back on the market at the appraised value?

Any new buyers would also need the home to appraise so I assume the bank would lower the price.

It may be crazy but if the bank won't budge and puts the home back on the market at a lower price, we'll make a new offer on the lower price.

One other point I would like to comment on.

When I write an offer I porvide the buyers with an estimate of closing costs. It's almost impossible to do now as the banks are choosing the title company, not the buyers. Yes, the buyer can select their title company but it's not recommended for REO's. Not sure how they get away with this, respa and all. So the banks say their title fees will be less if the buyers use their title company so the buyers agree. But after one week in contract there is still no estimate of closing costs from the title company. Heck, they still have not told us who the title company will be.

These are the same banks that wanted to get into real estate. This is a good indication of what would happen if they did.

The old saying, "Those with the gold rule" fits this situation with banks in control of the escrow process.