The headline reads Prices Up 20%.

What do these numbers mean? I am sorry to tell you, your home did not increase 20%. Buyers don't get scared off and sellers don't put your home on the market for 20% more than you paid last year.

These numbers are totally misleading. Prices are increasing in some areas and in some price points but not by 20%. Possibly 3-5%.

You can make numbers do whatever you want. First you need to know if the numbers are for Single Family homes or Condominiums or both. Then are they comparing it to the same month in a previous year or just the previous month.  Are they talking about median price or average price. The Median price is the price that is in the middle; there are an equal number of transactions above and below. These numbers are very general. It is interesting and might give a slight indication as to the market in the country, in your state, in your city but Real Estate is very localized down to the neighborhood in the city. If you want to know the value of your home call your Real Estate consultant. 

An example of Median prices:

220,000
350,000
480,000
490,000
510,000

AVER IS 410,000

MEDIAN =480,000

The numbers recently announced are really telling us that higher priced homes are beginning to sell. In San Mateo County 32% of Single Family homes sold in Feb. 2009 were under $500,000 that dropped drastically to 13% in 2010. Homes over $500,000 increased from 50% to 59% from Feb. 09 to Feb. 10, driving the median price up. Homes over $1,000,000 increased 11% from 17% to 28%.

The number that shocks me is that over 27% of all sales in the nine county Bay Area were paid in cash. That is with a median price of $354,000. Many people are taking money from the stock market and or IRA account and equity from their homes. Cash is King.

Please look at the numbers below. Inventory has decreased more than 10%, sales have increased almost 10% and the days on market has decreased a dramatic 25%. This is for single family homes listed on the MLS.  All the numbers are indicating good things ahead.

San Mateo Cty. Inventory Sales DOM
Feb. 2009 1576 208 83
Feb. 2010 1346 228 64

http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100318.aspx

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

www.leesellsmore.com

A lot of positive bills, thoughts and activities have been happening on the Bay Area Real Estate Front. I have been trying to write this for a while. Each time I sit down to write there is more I have to add to it. That is a good problem. So exciting!  Enjoy the Good News.

Home Buyer's Delight
You can still get the federal Home buyer credit of $8000 for the first time buyer or $6500 for the move up buyer. You must be in contract by the end of April and close by the end of June.
For additional information: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Because California Home Buyers are special Governor Schwarzenegger signed into law a State credit for home buyers. I personally think this program is great. It helps many people purchase their first home and it puts people to work. A Win-Win!!!
Under the provisions, the bill:

• Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes.
• Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
• Sets aside $100 million for each program, for a total of $200 million.
• Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, and then must close escrow by Aug. 16, 2011.
• Requires buyers to live in the home for at least two years.
• Provides for the tax credit to be paid in thirds over a three-year period.
• Sets no income limitations on buyers.
• Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

For additional information: http://gov.ca.gov/ htp://www.mercurynews.com/news/ci_14758523?nclick_check=1

Bay Area Home prices increase 20%
The number of home sales in the 9 County Bay Area were down for Feb. 2010 as compared to 2009 but the median home price increased more than 20%. I wish I can tell you that your home went up 20%. What I can say is that the higher priced homes are beginning to sell after months of being stagnant.
For more details:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Having trouble making payments? Have no fear help is finally on the way.

Bank of America has announced a program for a select group of Countrywide loans where they will forgive the principal. Yea! Let's hope others will follow.
Please click on the link for the details. http://www.bankrate.com/finance/mortgages/bank-of-america-offers-home-loan-forgiveness-1.aspx

HAFA -Home Affordable Foreclosure Alternatives
The federal government has recently announced a new program to take effect April 1 2010. It will make the loan modification and short sale process easier and more systemized.
For additional information: http://www.realtor.org/government_affairs/short_sales_hafa

Just yesterday Obama announced and even newer program focusing on people owing more than their home is worth, people underemployed or unemployed. Stay tuned. The details of that are not out yet.

All these programs are great but my solution I think is more of a Win-Win. I propose to reduce the principal to market value and then the bank and owner should share in any equity build up when the home is sold. Under the Lee's Act, the homeowner stays in their home, we maintain home pricing by putting a stop the deluge of short sales and foreclosures and the banks and homeowners have a chance to make some money down the road. Everyone wins; Homeowner, bank and neighbors by stabilizing home prices and avoiding blight!

Tax relief for debt forgiveness
State Tax Relief for those who incurred debt forgiveness from a lender through the loss of their homes to foreclosures and or short sales is still up in the air. I believe the IRS is ok with it until 2014 but California is still up in the air. Governor Schwarzenegger is asking for a proposal before April 15.
Click the link for additional information. http://www.sacbee.com/2010/03/16/2609494/california-tax-relief-for-forgiven.html

Homeowner Savings
Are you considering purchasing a new appliance. The California's "Cash for Appliances" begins on Earth day, April 22, 2010 and runs only for a month. Purchase a new energy efficient appliance and recycle your old one and you are eligible to get up to $100 per appliance.
The program highlights are:
Purchases starting Apr 22, 2010 until May 23, 2010

· Claim within 30 days of purchase

· Claim by Jun 22, 2010

• May be combined with other rebates
• Must recycle existing appliance
• State resident

Click on the link for the real details. http://www.energy.ca.gov/recovery/energystar.html or http://www.kcra.com/cash-for-appliances/21363879/detail.html

.More Energy Efficient Savings:
Our federal government still offering a credit if you purchase an energy-efficient product or renewable energy system for your home. You may be eligible for a federal tax credit if you replace water heaters, solar energy, windows, doors, heating and cooling systems and more.
You will find an overview of the federal tax credits for energy efficiency by clicking on the link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Capital Gains Tax
If congress does not act Capital Gains tax will be increasing by 5% in 2011. They could propose to increase it even more. Due to the economy it is doubtful for them to maintain the current capital gains rate OF 15%. If you are considering selling an investment property today might be the right day. Call me toll free at 877-Lee-Sells. http://money.cnn.com/2010/02/01/pf/taxes/obama_budget_tax_changes/index.htm

So there you have it in a nut shell .Hope you found it helpful. Please, I encourage updates comments and questions  and send it on to your friends.
If clicking on the links do not work please copy and paste.

Please visit me at www.leesellsmore.com

A lot of positive bills, thoughts and activities have been happening on the Bay Area Real Estate Front. I have been trying to write this for a while. Each time I sit down to write there is more I have to add to it. That is a good problem. So exciting!  Enjoy the Good News.

Home Buyer's Delight
You can still get the federal Home Buyer Credit of $8000 for the first time buyer or $6500 for the move up buyer. You must be in contract by the end of April and close by the end of June.
For additional information: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Because California Home Buyers are special Governor Schwarzenegger signed into law a State credit for home buyers. I personally think this program is great. It helps many people purchase their first home and it puts people to work. A Win-Win!!!
Under the provisions, the bill:

• Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes.
• Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
• Sets aside $100 million for each program, for a total of $200 million.
• Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, and then must close escrow by Aug. 16, 2011.
• Requires buyers to live in the home for at least two years.
• Provides for the tax credit to be paid in thirds over a three-year period.
• Sets no income limitations on buyers.
• Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

For additional information: http://gov.ca.gov/ http://www.mercurynews.com/news/ci_14758523?nclick_check=1

Bay Area Home prices increase 20%
The number of home sales in the 9 County Bay Area were down for Feb. 2010 as compared to 2009 but the median home price increased more than 20%. I wish I can tell you that your home went up 20%. What I can say is that the higher priced homes are beginning to sell after months of being stagnant.
For more details:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Having trouble making payments? Have no fear help is finally on the way.

Bank of America has announced a program for a select group of Countrywide loans where they will forgive the principal. Yea! Let's hope others will follow.
Please click on the link for the details. http://www.bankrate.com/finance/mortgages/bank-of-america-offers-home-loan-forgiveness-1.aspx

HAFA -Home Affordable Foreclosure Alternatives
The federal government has recently announced a new program to take effect April 1 2010. It will make the loan modification and short sale process easier and more systemized.
For additional information: http://www.realtor.org/government_affairs/short_sales_hafa

Just yesterday Obama announced and even newer program focusing on people owing more than their home is worth, people underemployed or unemployed. Stay tuned. The details of that are not out yet.

All these programs are great but my solution I think is more of a Win-Win. I propose to reduce the principal to market value and then the bank and owner should share in any equity build up when the home is sold. Under the Lee's Act, the homeowner stays in their home, we maintain home pricing by putting a stop the deluge of short sales and foreclosures and the banks and homeowners have a chance to make some money down the road. Everyone wins; Homeowner, bank and neighbors by stabilizing home prices and avoiding blight!

Tax Relief for Debt Forgiveness
State Tax Relief for those who incurred debt forgiveness from a lender through the loss of their homes to foreclosures and or short sales is still up in the air. I believe the IRS is ok with it until 2014 but California is still up in the air. Governor Schwarzenegger is asking for a proposal before April 15.
Click the link for additional information. http://www.sacbee.com/2010/03/16/2609494/california-tax-relief-for-forgiven.html

Homeowner Savings
Are you considering purchasing a new appliance. The California's "Cash for Appliances" begins on Earth day, April 22, 2010 and runs only for a month. Purchase a new energy efficient appliance and recycle your old one and you are eligible to get up to $100 per appliance.
The program highlights are:
Purchases starting Apr 22, 2010 until May 23, 2010

· Claim within 30 days of purchase

· Claim by Jun 22, 2010

• May be combined with other rebates
• Must recycle existing appliance
• State resident

Click on the link for the real details. http://www.energy.ca.gov/recovery/energystar.html or http://www.kcra.com/cash-for-appliances/21363879/detail.html

and More Energy Efficient Savings:
Our federal government still offering a credit if you purchase an energy-efficient product or renewable energy system for your home. You may be eligible for a federal tax credit if you replace water heaters, solar energy, windows, doors, heating and cooling systems and more.
You will find an overview of the federal tax credits for energy efficiency by clicking on the link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Capital Gains Tax
If congress does not act Capital Gains tax will be increasing by 5% in 2011. They could propose to increase it even more. Due to the economy it is doubtful for them to maintain the current capital gains rate OF 15%. If you are considering selling an investment property today might be the right day. Call me toll free at 877-Lee-Sells. http://money.cnn.com/2010/02/01/pf/taxes/obama_budget_tax_changes/index.htm

So there you have it in a nut shell. Hope you found it enjoyable and helpful. Please, I encourage you to share your good news, comments, updates and questions.  If clicking on the links do not work please copy and paste.

Please visit me at www.leesellsmore.com

RSVP is Coming

May 3-7

Get The Word Out!

Register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf

WHAT IS RSVP?
RSVP is an annual week-long community outreach program that takes place in May 3-7 during "Adopt-A-Senior" Week. Realtors of San Mateo County provides free assistance to seniors who cannot otherwise perform certain household tasks due to physical or financial constraints.

FREE HOME SERVICES FOR SENIORS & THE HOMEBOUND
Washing windows, changing furnace filters, turning over mattresses, vacuuming, changing light bulbs, replacing smoke detector batteries and other similar household tasks are just a few chores that Realtors will perform.
The program is one way Realtors and Affiliates can give back to their communities.
Who is eligible?  If you are a senior or homebound and live in San Bruno, South San Francisco, Daly City, Millbrae, San Mateo, Burlingame, Belmont, Foster City or  anywhere in San Mateo County.  
INTERESTED IN FREE HELP
Please call San Mateo County Association of Realtors at 650-696-8200 or
register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf

Lee@leesellsmore.com

Dear Home Buyer and Fence Sitter,

The window of opportunity is closing. Let me explain my thoughts. Prices in the Bay Area are already inching up, same with interest rates. The time to receive the Federal Tax Credit of $8000 or $6500 is rapidly approaching. (Must be in contract by April 30, 2010) FHA is talking about increasing the minimum required down payment and or increasing the cost of required mortgage insurance.

You can purchase a home today and your costs will be fixed for the next 30 years. What else can you buy and maintain the same cost for the next 30 years? Rents will continually go up. You are at the Landlords mercy. It is time to get off the fence. The first step is to get pre-approved. This will tell you what the bank will loan you. There are many loan programs out there. I could refer you to someone if you would like. The pre-approval process is easy, is no cost and with no obligation. If you don't do it now you will never know.

You do not need a large down payment. You can purchase a home with only 3.5%. Yes you need mortgage insurance. I don't like mortgage insurance but if that is the only way to own a home, then go for it. Mortgage insurance will go away once you have 20% equity. Economists think values will increase substantially in the next 3-5 years and that will more than make up for the mortgage insurance. Some people tell me they want to save for a larger down payment. That bothers me because from my experience most people cannot save as much as prices increase.

Some people tell me they do not like the home they qualify for so they want to wait until their income increases to get qualified for a larger home. My response is; your first home is not necessarily your dream home. Most Americans move every 7 years. Get into something now. Hold it for a few years, make some money and then move into your dream home. Read my blog http://www.pruvoices.com/2009/09/is-a-condo-the-right-choice/

Also, mortgage insurance, mortgage interest and property tax are all deductible on your income tax. That will save you approximately 20-30% of the payments. Check with your tax preparer for your individual situation.

I am concerned that some people whom do not take advantage today's market may never be able to purchase a home again. They may not qualify if rates go up or may not qualify for what they want if prices go up. If interest rates increase just 1% you will need an annual income increase of $8000 to qualify for a $500,000 home. If that $500,000 home increases just 5% and interest rates remain the same you will need an income increase of $3600.

I believe home ownership is the first step to financial freedom. It is forced savings. You build up equity. If you look at most of the wealthy people in this country and around the world real estate is the asset that attributed to their wealth. Home ownership may not be for you but if you don't look into it you will never know. Today's market with both record low interest rates and low prices at the same time is quite unusual. They generally work in opposites. This is a blue moon, once in a lifetime opportunity. If you want to take advantage of today's opportunity please call me for a free consultation to discuss your options, the market, and the process. I would love to help you so please contact me lee@leesellsmore.com or your favorite Realtor now. Don't put it off any longer.

Sincerely,

Lee Ginsburg CRS, SRES DRE# 01391378

You might ask, what is working and working well. I am speaking about the $8000 Home Buying Credit. A recent home buyer brought up the $8000 credit and told me that was the motivating factor for him and his wife purchasing a home. The termination date creates urgency and action. Low prices are motivating but not the cause of action. Many think they can time the market. Good Luck to them. People in the business think the lowest interest rates in 40 years should be creating urgency. It certainly makes people think but low rates is all many of these young first time buyers know. I purchased a home in 1982 at 14% interest and that was considered good. Today's 5% and below interest rates are like the "After Christmas Sale". But still does not create the urgency since many believe it will last forever.

The $8000 federal tax credit was extended and now sounds like it will really terminate April 30, 2010. Now that creates urgency! OK; the credit created a home sale and that helps stabilize pricing. Let's not forget all the mouths a home sale feeds: the realtor, mortgage broker, title people, escrow company, termite inspector, home inspector, city tax coffers, and more. Now let me show you all the mouths my client fed by spending his credit on: landscaping, painting, double pane windows, window coverings, furniture and more. Others may remodel a kitchen or bath, carpet, appliances, roof, etc. My client purchased the home from a flipper who must have put $50,000 into the home. Add that up, and the $8000 quickly turns into over $100,000 of added income to local people. That feeds lots of mouths. Being employed in Real Estate and related fields, as Americans and Smart business people we should be ecstatic. I know I am. I am a believer.

One might think that I support the credit going on forever. No, I am a realist and understand the affect will diminish over time and a firm termination date is what makes the credit successful. I think April is a good time to terminate the credit as the Real estate Market historically picks up in late spring and summer. I am hoping that will help smooth the transition and continue the market stabilization and slight appreciation.

A quick mention of the Current Home Owner Credit of $6500. Although in the Bay Area the $800,000 home purchase limit puts a damper on things it is a great opportunity for Condo Owners to step up and for others to scale down. Many people may not realize that they do not have to sell their current home to receive the $6500 credit. They can keep it and rent it out. The new purchase must be a primary residence and it must be below $800,000.

Enjoy Spending your credit!

www.leesellsmore.com

When you and I purchase a new computer we compare the memory, the speed, the screen size: does it come with a camera, DVD player/recorder and more.  A home the largest purchase most of us will ever make often is not reviewed with such detail by the people doing the lending and sometimes by the people doing the spending.  Yes, they look at the square footage, the general condition, and the location.  Appraisers often do not have any idea of the cost of section one termite repairs.  The differential in repair costs could be 3%, 5% even 10% of the purchase price.  Roofs costs could range between $5000 to $25,000.  A home with a two year old roof should be valued higher than one with a 25 year old roof.  Appraisers know roughly how old the roof is on the subject property but they don't know the age of the comparables.  Same with double paned windows and furnaces.  A home with copper piping through out or or with upgraded electric needs to have additional value added to it.  All this information does not show up in the MLS.  The MLS shows if the kitchen or baths have been cosmetically remodeled but does not go into detail if the cabinets, floors, lighting was all upgraded and how much they were upgraded. Is the home landscaped and does it have automatic sprinklers?   This could add $5000, $10,000 up to $50,000 or $60,000.  So.. What am I saying.  The government has put in all of these new laws to make appraisals non biased but we as an industry have to work together and help them compare apples to apples. 

We need to add more info to our MLS data reports.  Even comparing selling prices is not a fair comparison if you don't have all of the information.  So many purchases have a credit for closing costs and or repair costs.  Whole neighborhoods  will be overpriced real quick when just a few homes were compared to homes with 3% credit backs.  I realize some MLS's are more progressive than others and include some of this information now. Some appraisers call and get this information. We as agents, could make this a very simple process.  I suggest we add the following categories to the MLS data: age of roof, furnace, type of plumbing and electric, Cost of section one termite repairs if not completed, Amount of credit back, type of financing.  If we put this in an area only available to agents we will be more valuable to our clients and help the appraisers compare apples to apples. 

www.leesellsmore.com

Buyer's Market?  You bet it is.  I will be speaking about the low end of each market area. On the Peninsula and San Francisco we talk about Single Family homes priced under $700,000.  In the East Bay it is below $400,000.  Buyer's Market yes but not in the traditional way.  Today's buyer cannot expect to purchase a home for 20% off the list price, but they can expect to purchase a home 30-60% off of 2004 prices.  Today's buyer cannot expect the seller to take care of all necessary repairs, but the buyer can expect to receive an $8000 Federal Tax Credit and an extra $10,000 State Tax Credit if they are purchasing a brand new home.  Today's first time buyer cannot expect to be the only offer, but they can expect to receive the lowest interest rates in 40 years.  I think it is just in a different way.  

The Real Estate Market in San Bruno, South San Francisco, Daly City, San Mateo is hot just like the weather. Prices are based on supply and demand.  Demand is strong as all smart people want to take advantage of the buyers market.  By the way the $8000 Federal Tax Credit terminates Nov. 30 of this year.  many people do not understand this credit.  It is a true gift.  When this concept was originally introduced the credit was really a loan and needed to be paid back.  In 2009 it became a true credit.  You could just amend your 2008 taxes and receive your check in less than 2 months is what many buyers have seen.  Other are choosing to claim it when they file 2009 taxes.    Inventory is drying up.  Please look at the chart.  We are seeing less homes for sale today than we had last month or last year.  If you remove the short sales that have received offers (maybe 25% of the homes available we are probably close to the inventory of the hot market in 2005.  Please not the difference in the higher end and lower end of the markets.

Information deemed reliable but not guaranteed.

You are among the millions underwater and over stressed. What shall you do.  

Your credit will be most negatively affected with a Foreclosure, then a short sale. As long as you stay current on your loan, loan modification should not affect your credit.  Your credit score weather it is right or wrong is used by potential employers before hiring, landlords before renting, insurance companies before granting insurance and etc.  Depending on your individual situation maybe credit is not important. 

My client's father nearing retirement age could live in his son's rental unit and will not be looking for another job said he might pass away before his home in Las Vegas is worth as much as as his loan.  He opted for foreclosure. 

I had another client, a family with parents and adult children living at home.  They came to me for a discussion on their options. They are still working and acquiring things so their credit score is  important to them.  Being an immigrant family losing their home, the "American Dream", would be extremely emotional and their image amongst friends and family here and back home would be devastated. They struggled making payments, but after family members lost two part time jobs they couldn't do it any more and came to me for help. They pondered the situation. Should they continue making payments on a home that they owe $250,000 more than it is worth. They purchased this home with no money down and realized they would probably never be able to save the 10-20% now required down payment to purchase another home. They opted for a loan modification.  They were hoping for some debt forgiveness.

Their bank would not hear from that. But with persistence similar to a short sale approval I was able to get the bank to modify their 6.5% fixed interest only loan to a Principal and Interest loan starting at 3% for five years, 4% for 1 year and 5%  for the next 34 years. Before that, the second lender agreed easily to modify their 8.5% loan to .31% yes .31% not 3.15 but only for 1 year.  We will follow up with them in a few months.  With home ownership tax benefits their new payments are now about the same as rent would be.  They are thrilled, knowing they will now be able to afford the "American Dream".   During these negotiations I had them apply and they were approved for a property tax reduction with annual savings of almost $3,000.  

I was told during this process that each loan holder not necessarily the servicing bank has their own set of ratios and criteria for loan modification.  This worked out to be win-win situation.    Their lender will receive their full payment over a longer period of time rather than losing several hundred thousand dollars during a short sale or incur thousands of dollars for foreclosure expenses. 

We have all read that more than 50% of loan modifications are defaulting.  Maybe it depends on the modification.  I recently reviewed a loan modification for a client that was in default.  In November her loan was modified from 8.4% to 7.9%.  Maybe $100 reduction and then they had the nerve to add on another $550.00 per month to bring her current.  Her payments were $400.00 more than before the modification.  If I did not see it myself I would not believe it.  What were they thinking? It is no surprise she is in default again only 4 months later.    

www.leesellsmore.com

Many sellers are determined to set their listing price higher than they are willing to accept so they have room to negotiate.  With the New Millennium buyers they unfortunately will not get any offers.  Today's buyers are more educated than any others.  The internet gives the buyers the opportunity to research all public records.  They know the price of all the homes in the area that sold recently and are on the market.  They know the trends, the cost per square foot; they know what the seller paid for the home and how much they owe and sometimes the improvements the owner has completed.  If a home is over-priced the "New" buyer is almost offended that someone would expect them to purchase it at the "Over Valued List Price" so they don't even make an offer.  Many don't even waste their time to view the home.  That is the old school pricing method. My parents would have done that.  Back then information was not so accessible.  With today's buyer's research and knowledge they are willing to pay over the list price because they realize they are not paying over the market price.  They are just paying over the list price.  The old school seller does not understand this new Price it Right philosophy.  It is the responsibility and ethical obligation of the professional honest agent to advise the old school seller that their price is too high and to educate them to the New Pricing Philosophy.  If not, the seller will not get maximum value.   Although the Old School Seller will reluctantly reduce the price after a few weeks it is too late.  That property is now stale.  It quickly gets a reputation that something must be wrong with it mentality by the buyers and some agents.  This property may not deserve the reputation but it sticks.  When an offer does come in it will be less than the reduced price and less than the market value.  If it was priced right at the beginning most likely they would have received several offers within a week.

Buyers are out there.  Homes in San Bruno and South San Francisco priced right are having 75-100 potential buyers view their home during the Sunday Open Houses.  Homes not priced right get less than half that.  I personally know of eight homes in San Bruno and South San Francisco that went on the market priced right and within the first week received multiple offers and sold at above the Listed Price.  Not by much but they sold while others not priced right are still on the market.   Sellers must understand that for every week their home does not sell it is costing them .25% or more.

www.leesellsmore.com

30% of Real Estate Deals Don't Go Thru.  Maybe it is more, maybe it is less, but that is a pretty good estimate.  So what does that mean to buyers and their agents?  It means the property you lost out to in multiple offers or just because someone was faster than you does not mean it is gone forever.  We all know that a ratified offer on a short sale means nothing until the lien holders agree.  Many REO's and individual sales are falling through today.  Many buyers, especially first time buyers get concerned when a property falls out of contract.  They think there is something majorly wrong with the property.  Properties fall out for various reasons today, some for financing issues, property condition issues and just plain "Cold Feet".   One property that fell out and I was able to get into contract for my client was across the street from a school. An elderly couple's offer was originally accepted on it and upon more thought and said at their age they preferred not to be across from the school and cancelled the contract.  For my clients being across the street from a school was a benefit.  So you never know.   Keeping in touch with the listing agent is not enough. It is important to watch the MLS   I have found busy listing agents change the status in the MLS and do not call the previously interested agents.  I made an offer on an REO.  It fell out; I contacted the agent immediately and requested she submit my original offer.  She said she had no record of my previous offer and please resubmit.  It leads to wonder if my original offer was ever submitted. That is another subject.   

In the past, after the two week contingency period is over we would consider it a solid deal.  Not in today's market.  Banks are forever requesting more information, buyers continuously get nervous, lose their job or have an accident.  One quick story:  Two days before closing, loan docs signed and ready to fund the buyer gets a DUI, loses his license and cannot purchase the home because it was too far from his job.  I felt like an ambulance chaser but my client jumped at the opportunity to purchase the property he thought was gone.  Originally they were upset they lost this home and couldn't get it out of their mind.  They compared everything we looked at to that. When I called them with the news they were thrilled and couldn't write the check fast enough. Inspections went smoothly also.   I was a hero.   

What to do as a listing agent to prevent deals falling out?  Keep a record of every agent or buyer that makes contact with you concerning the property and contact them immediately after a deal falls through (maybe even when you get that feeling).  When accepting an offer request to see proof of the down payment, question the lender how thorough they were in qualifying the buyer, question the agent as to how serious, motivated and experienced their client is.  Have they made other offers?  Are they homeowners?  How long were they looking for?  A listing agent can do and must do the above when they have multiple offers.  Price is important but should not be the deciding factor.  If you have no other offers ask some questions and keep your fingers crossed.