Pacita's Quick Bytes of Real Estate

"Hey, Congress, get off your a** "--- a petition signed by the homeowners

Sun, 08 Nov 2009 01:20:01 -0600

Agree or disagree, this is an interesting outburst --- a voice echoing the cries of distressed homeowners and their advocates. "Homeowners: "Hey Congress.. Get off your a**!"

Petition to the U.S. government from the Homeowners proposing "an immediate halt to all foreclosures until new, mandatory guidelines are established and that these guidelines be overseen by a new Consumer Protection Agency..."

EXCERPT:

We propose an immediate halt to all foreclosures until new, mandatory guidelines are established and that these guidelines be overseen by a new Consumer Protection Agency, which was recently recommended by President Obama and endorsed by Sheila Bair, chair of the FDIC.

We also demand that these guidelines include not only a simple 31% of the borrower's gross monthly income, but that the Net Present Value (NPV) test:

be created and administered by the government, not the banks,
have its data, assumptions and formula published so that they may be verified by the public, and
be made available at www.makinghomeaffordable.gov in a calculator form so that people can learn immediately, with the other eligibility questions available there now, whether they're eligible for HAMP.

We are also strongly advocating that additional guidelines be formulated that would open the door for modifications at an even a lower rate in significant hardship conditions and for writedowns of principal when homes are severely underwater."

Read more at: http://www.huffingtonpost.com/richard-zombeck/homeowners-hey-congress-g_b_342665.html&cp

SHOCK! Lenders make more money on foreclosures than short sales!?

Sat, 07 Nov 2009 15:28:44 -0600

Lenders make more money on foreclosures than from short sales or loan modifications. That's what Steve Harney conveyed in a seminar. He caused an earthquake in San Francisco

When loan modifications are turned down, the next thing we attempt is a short sale. And we know that lenders turn over the short sale accounts to loan servicing companies who make our lives hell getting short sales approved. As such, we should know that these loan servicing companies make MORE money by letting the properties foreclose than to approve the short sales OR the loan modification.

RUMBLE...GRUMBLE...CRIES OF DISMAY!

Did he just confirm what we were afraid of?

So I researched this topic and found a few articles worth reviewing. How did I miss these? Was I under a rock in a desert?

CONSUMERLAW.ORG REPORt ON "Why Servicers Foreclose when They Should Modify And Other Puzzles of Servicer Behavior"

DAILY PRESS headline. Oct, 30 2009. Do Mortgage Lenders Make More Money when a Loan Goes iInto Foreclosure?

HUFFINGTON POST. Oct. 21, 2009, Foreclosures Are More Profitable Than Loan Modifications, According To New Report

Washington Post. July 28, 2009. Foreclosures Are Often In Lenders' Best Interest. Numbers Work Against Government Efforts to Help Homeowners.

ThinkGlink. October 21, 2009. Loan Modification Help: Why Lenders Are Slow To Provide Loan Modifications

Dayton Daily News. Oct. 17, 2009. Drop in foreclosures called "very scary". Lender's actions show they think properties are not worth pursuing.

Mortgage101.com. October 23, 2009. Mortgage Companies Make More on Foreclosures Than They Do Modifying Existing Loans. (This blog refers to the news article on Huffington Post)

FLASHBACK: Huffington Post, June 8, 2009. Short Sales: Banks Blocking Way Out of Foreclosure Crisis

FLASHBACK: Huffington Post, May 15, 2009. Short Sales Stories. Lenders tend to stick with more familiar foreclosure process, losing money for everybody.

UPDATE: Huffington Post, November 2, 2009. Homeowners: "Hey Congress, Get Off Your A**"

KNOCKING OURSELVES OUT TRYING TO HELP

So are we engaging in self-flagellation helping our distressed clients with their short sales and loan modification?

Are lenders really more likely to foreclose?

Are the short sale servicing companies really trying to help?

Or are they stalling and withholding their help because they know their leaders would rather have the property burn into foreclosure?

Is there no resolution in signt?

There oughta be a law!

WALNUT CREEK CA: Real estate sales, trends. values Oct 2007-Oct 2009

Thu, 05 Nov 2009 03:35:56 -0600

For the statisticians and other folks who prefer graphs to see what's going on a specific market, here's a snapshot of what it looks like in Walnut Creek CA, comparing the market activity the past two years, starting in October 2007 - October 2009.

MONTHS SUPPLY OF INVENTORY When there are more buyers than there are sellers, it means that it's a seller's market. The higher the months inventory, the more it becomes a seller's market. Traditionally, if the the months inventory is more than six months, it's a buyer's market, and vice versa.

In Walnut Creek the months' inventory was 8.2 months in October 2007, and 2.2 in October 2009 --- 73% decrease.

UNDER CONTRACT

October 2009 reports the highest peak, with 155 homes in contract compared to only 65 in October 20007 and 85 in October 2008.
December 2007 reported the fewest contracts. The following year, December 2008 recorded 68 homes in contract.

MEDIAN PRICE The median price was the lowest in February 2009 and bounced back in April. Nonetheless, the general trend seems to be downwards. October 2009's median price is the next lowest point. Sellers may have to adjust their expectations depending on current market values.

SUPPLY AND DEMAND Here's a good way to correlate number of properties sold (demand) with number of properties for sale (supply). .

DAYS ON MARKET So, how long do the Walnut Creek properties stay on the market before they have accepted offers? With the exception of February 2008 where the average days on market peaked to nearly 100 days, the average days on market is steady at between 60-70 days.

So...what are these graphs telling you?

BERKELEY CA: Real estate report. Steady as she goes!

Thu, 05 Nov 2009 01:54:48 -0600

Berkeley real estate market is nearly unchanged when compared with the frenetic activity in the surrounding cities.

For the statisticians and other folks who prefer graphs to see what's going on a specific market, here's a snapshot of what it looks like in Berkeley CA, comparing the market the past two years, starting in October 2007 - October 2009.

People will see different things and interpret this information in different ways --- I guess it depends on what you want to see or what you hope will happen.

in the meantime, here's what the data is SHOWING us.

MONTHS SUPPLY OF INVENTORY I like starting with the months supply of inventory. When there are more buyers than there are sellers, it means that it's a seller's market. The higher the months inventory, the more it becomes a seller's market. Traditonally, if the the months inventory is more than six months, it's a buyer's market, and vice versa.

In Berkeley the months' inventory was 2.6 in October 2007, and 1.6 in October 2009. This difference is almost insignificant --- but it is an amazing picture to show the movement in the Berkeley market. The inventory levels mirrors the activity in other cities in the East Bay.

UNDER CONTRACT Homes under contract peaked in

- June 2008 (68 in contract),
- April 2009 (66)
- October 2009 (65)

Fewest contracts were recorded in January 2008.That would have been a time when a buyer would have had more negotiating power.

MEDIAN PRICE The median price was the lowest in March 2009 and bounced back in April. Prices increased again. Although not at the peak recorded in June 2008 when median price was a $640K, October 2009's median price is close enough at $696K

SUPPLY AND DEMAND Here's a good way to correlate number of properties sold (demand) with number of properties for sale (supply). This chart shows almost no change. Demand is nearly flat.

DAYS ON MARKET So, how long do the Berkeley properties stay on the market before they have accepted offers? With the exception of December 2008 where the average daays on market peaked to over 90 days, the average days on market is steady at between 30-40 days.

Good for the sellers and their agents! While buyers and their agents are on notice that they should be fleet of foot when searching for property and when strategizing on their offers.

So...what are these graphs telling you?

Senate vote 98-0 to approve tax credit extension --- big news to us, not to them?

Wed, 04 Nov 2009 23:16:02 -0600

Received the text this afternoon.

Scrambled to find news articles. The best one I found was on Bloomberg. Headline: "Senate approves extended U.S. homebuyer tax credit"

Posted on Facebook.

Networked at a Chamber mixer. Shared news with other folks who haven't heard about it (yet).

Sent them link to Bloomberg news so that they, in turn, can spread the word.

Extension not passed yet...but with a Senate vote of 98-0 for it, it's almost a certainty that the House will follow suit. Then on for Obama's signature.

Scrambling to find details about this from other news sources.

Barely mentioned in CNN.com under headline of "Senate extends unemployment benefits by up to 20 weeks...."
And in Fox News, it's "Senate votes to extend benefts to jobless, homebuyers"
MSNBC says "Jobless, homebuer aid extensions advance"

Checked National Association of Realtors...not there yet?

In the meantime....this list is enough. Time to inform my buyers. There is hope!

When 20% of sales are distressed properties, what does it mean to you?

Tue, 03 Nov 2009 16:33:55 -0600

How you see it is the same as how you look at a glass --- half-full, or half-empty?

No man is an island. Yes, we get it. And even in our slice of paradise known as the wondrous island of Alameda, CA, we have our share of distressed properties.This is actual data. Analysts have different ways of looking at the same figures and extrapolating different conclusions.

So let's take a look at what it's like for 2009, as of today, November 3, 2009.

COMPARING SOLD PROPERTIES

Sold since January 1, 2009 - 362 homes

Of which 47 were bank-owned, or 13% of total
Of which 26 were short sales or 7 % of total
Together, 73 were "distressed properties or 20% of total

FORECLOSURES

Sold - 47 homes

Highest price is for a lagoon-facing property foreclosed at $738,000
Lowest price is for a 1 bedroom/1 bath condo foreclosed at $150,000

Pending - 10 homes

Highest price is for a large home at the newer Bayport development, currently listed at $739,900
Lowest price is for a 2 bedrooms/1.5 bath condo listed at $262,900

Active - 7 homes

Highest price is for a duplex (lower unit is totally gutted) on Park Street, listed at $709,900.
Lowest price is for a 1 bedroom/1 bath condo listed at $175,000.

SHORT SALES --- if both buyers and sellers are willing to stick it out, there are some good deals to be found.

Sold - 26. Yes, folks. We do and have closed short sales.

Highest price is for a Mediterranean style 3 BR/3 BA home that sold for $745,000
Lowest price is for a 1 Bedroom/1 Bath 640 sq ft condo that sold for $180,000

Pending (pending, pending to subject lender approval) 25 homes.

Highest price is for a large home in Harbor Bay, listed for $899.000
Lowest price is for a 1 bedroom/1 bath 740 sq ft condo listed for $199,000

Active - 13 homes

Highest price is for an overpriced then and still overpriced home on Westline Dr, listed for $918,000
Lowest price is for a 1 bedroom/1 bath 701 sq ft condo listed for $210,000

WHERE IS ALAMEDA REAL ESTATE MARKET HEADED?

So....where is the Alameda market headed? Take a look at this post: Alameda CA; Where is the market headed to get a picture of what it was like for the last two years starting in October 2007-October 2009.

Having a blue Monday? Here's just what the doctor ordered!

Mon, 02 Nov 2009 23:27:21 -0600

His practice has no room for new patients! Now, he's a medical wizard! I love this Doctor!

Q: Doctor, I've heard that cardiovascular exercise can prolong life. Is this true?
A: Heart only good for so many beats, and that it... Don't waste on exercise. Everything wear out eventually. Speed up heart not make live longer; that like say you can extend life of car by driving faster. Want live longer? Take nap.

Q: Should I cut down on meat and eat more fruits and vegetables?
A: You must grasp logistical efficiencies. What does cow eat? Hay and corn. What are these? Vegetables. So, steak nothing more than efficient mechanism of delivering vegetables to system. Need grain? Eat chicken. Beef also good source of field grass (green leafy vegetable). And pork chop can give 100% recommended daily allowance of vegetable products.

Q: Should I reduce my alcohol intake?
A: No, not at all. Wine made from fruit. Brandy is distilled wine. That means they take water out of fruity bit; get even more of goodness that way. Beer also made out of grain. Bottoms up!

Q: How can I calculate my body/fat ratio?
A: If you have body and you have fat, ratio is one to one. If you have two bodies, ratio is two to one, etc.

Q: What are some of the advantages of participating in a regular exercise program?
A: Cannot think of single one, sorry. My philosophy: No Pain...Good!

Q: Aren't fried foods bad for you?
A: YOU NOT LISTENING!!! .... Foods fried in vegetable oil. How getting more vegetables be bad for you?

Q: Will sit-ups help prevent me from getting a little soft around the middle?
A: Definitely not! When you exercise muscle, it get bigger. You should only do sit-ups if want bigger stomach.

Q: Is chocolate bad for me?
A: You crazy? HELLO . Cocoa beans! Vegetable!!! Cocoa beans best feel-good food around!

Q: Is swimming good for your figure?
A: If swimming good for figure, explain whales to me.

Q: Is getting in-shape important for my lifestyle?
A: Hey! 'Round' is shape!

Well, I hope this has cleared up any misconceptions you may have had about food and diets.

AND..... For those of you who watch what you eat, here's the final word on nutrition and health. It's a relief to know the truth after all those conflicting nutritional studies:

1. The Japanese eat very little fat And suffer fewer heart attacks than Americans.

2. The Mexicans eat a lot of fat And suffer fewer heart attacks than Americans.

3. The Chinese drink very little red wine And suffer fewer heart attacks than Americans.

4 The Italians drink a lot of red wine And suffer fewer heart attacks than Americans.

5. The Germans drink a lot of beers and eat lots of sausages and fats And suffer fewer heart attacks than Americans.

CONCLUSION..... Eat and drink what you like. Speaking English is apparently what kills you.

Alameda CA: where is thereal estate market headed?

Sun, 01 Nov 2009 15:54:23 -0600

For the statisticians and other folks who prefer graphs to see what's going on a specific market, here's a snapshot of what it looks like in San Ramon, comparing the market the past two years, starting in October 2007 - October 2009.

People will see different things and interpret this information in different ways --- I guess it depends on what you want to see or what you hope will happen. Some market observers have said the bottom was four months ago. Some say the worst is yet to come (when?).

in the meantime, here's what the data is SHOWING us.

UNDER CONTRACT Homes under contract peaked in September 2009 (height of selling season?) and dropped in October.

MEDIAN PRICE it appears the median price is recovering because the median price is only 8% below where it was two years ago. The lowest median prices were posted in January 2009, and made a comeback the next month!

SUPPLY AND DEMAND Here'sgood way to correlate number of properties sold (demand) with number of properties for sale (supply). Supply is on the downward trend, or 38% less than where it was this time in 2007. While demand increased by 55%.

So...what are these graphs telling you?

Where is the San Ramon CA market headed?

Sun, 01 Nov 2009 14:08:01 -0600

UNDER CONTRACT Homes under contract peaked in April 2009 (height of selling season?) and seems to be on the rise again in October.

MEDIAN PRICE After a significant drop in number of units sold as well as media price, it appears the median price is showing a slight uptick although the median price is still 16% below where it was two years ago,

SUPPLY AND DEMAND Here'sgood way to correlate number of properties sold (demand) with number of properties for sale (supply). Supply is on the downward trend, or 52% less than where it was this time in 2007. While demand increased by 57%.

So...what are these graphs telling you?

EXTENDED first time home buyer tax credit, and NEW tax credit for repeat buyer

Wed, 28 Oct 2009 23:02:40 -0500

My first time home buyers are whooping it up. Why not? The popular first time home buyer tax credit that was set to expire end of November 2009 may be extended through end of June 2010.

I have buyers who have been looking for months but are getting outbid so many times, or are running out of time waiting for the short sale approval/acceptance of their offers.

Even better, it isn't just first time buyers who have reason to celebrate. A new tax credit was introduced to aid repeat buyers. I wonder if this will apply both for buyers who want to move up as well as buyers who want to downsize.

Although the complete details aren't available yet, here are the key provisions.

First time home buyer tax credit

Buyers must be in contract by April 30, 2010
Buyers have 60 days from that day to close escrow to qualify for the tax credit
Tax credit is $8,000 or UP TO 10% of purchase price

Repeat buyers tax credit

Defined as homeowners who have lived in their residence for five years
Tax credit is $6,500

But wait, there's more! The levels for the home buyers were increased! Good news, indeed, for at least one of my buyers who was making more money than the previous qualifying level. So now, there's a chance that he will qualify for the tax credit after all!

Individuals earning up to $125,000, up from $75,000 for individuals under the current law
Couples earning up to $250,000, up from $150,000 under the current law'

More tax credits.

Additionally, there are other tax credits that the homeowners can explore. Although folks may argue that these tax credits are costing us....think of another way to look at these credits. They will encourage folks to BUY! And when they buy more goods and services, they (and we) do our share to stimulate the economy.

federal tax credits for energy efficiency. Time to replace that old furnace? Want to get double pane windows? Need to get better insulation? Want to replace that leaky roof? Old water heater on its last legs? There's an energy-efficient solution to meet your requirements.
ENERGY (Energy Efficiency & Renewable Energy) STAR appliances that may apply to central air conditions, washers, dishwashers, freezers, refrigerators, and more. More on this as things develop.

Have fun shopping!

Less than two months inventory signals sellers market in Oakland CA

Wed, 28 Oct 2009 02:46:30 -0500

Market observers think that the bottom of the market was three months ago. In Oakland CA, this may be the case.

GET THE PICTURE!

Months supply of inventory

Some seasoned real estate professionals and observers say that when the months inventory is less than six (6) months, it is a seller's market. In Oakland, that inventory is less than two months, and is the lowest it's been in two years. Are we there yet?

Median sold price

Astute investors always advise "Buy low, sell high." In Oakland, for data on detached single family homes, the median price saw a drop of 69% from $616K in Sept 2007 to $191K in Sept 2009.

Supply and demand

Supply of homes for sale declined by 52% from Sept 2007 to Sept 2009, while the number of properties for sale showed an upward movement by 156% during the same period of time.

If buyers are waiting for the price to drop, they should keep a close look at the dwindling number of homes for sale compared to an increasing number of buyers. They may NOT see the price dropping much more than they have already since a sellers market may be emerging.

RANT: 30% of listings don't have a single photo! What's wrong with these listing agents?

Tue, 27 Oct 2009 18:20:18 -0500

RANT! RANT! RANT!

As if researching suitable properties isn't enough of a challenge, now we have to deal with listing agents who don't bother posting at least one photo to show us what the property looks like.

While going through a list of properties using certain criteria, I identified 127 that may be suitable. But going through the list, I was dumbfounded at seeing that 30% of these listings do not have a single photo of the property.

And of the 38 that do not have pictures 31 of them were short sales.

SHORT SALE PROPERTY OWNERS ARE DISTRESSED!

For gosh sakes, when people are selling their homes as short sales, they are obviously in distress. And what they need is for someone to write an offer so that the short sale negotiator can review the file and hopefully accept and approve the offer to prevent foreclosure or bankruptcy. Right?

SHORT SALE LISTING AGENTS: Are you doing everything you can to sell this property?

We know the importance of pictures, visual tours, staging, etc in marketing a property for sale.

But if the listing agent doesn't take a single picture of the property, how does that reflect on that agent's ability to market, much less aggressively push the short sale process?

And agents, if you're not members of the local MLS where your listing appears, have you thought about either referring out the listing to someone who is, or get a reciprocal agreement so that your listing appears on the local MLS?

SHORT SALE LISTING SHOULD BE HANDLED AS DELICATELY AS A REGULAR LISTING

Yes, we know. It takes a lot of work and a long time to get a short sale approved and accepted, if a all. But these property owners entrusted us to help them sell their property to save them from a more financially disastrous situation.

If you can't give these folks the same care and respect as your regular listing, then for goodness sakes, don't take the listing.

Give it to someone who truly gives a damn!

RANT! RANT! RANT!

Make sure your short sale package is complete before submitting to the short sale lender

Countrywide wants higher short sale price of $625K although first loan is $588K. WHY?

Tue, 27 Oct 2009 16:58:39 -0500

The first lender, Countrywide, insisted on a short sale price of $625K, although the first loan with them is less, at $588K. Countrywide said that because of the missed payments, etc., the monies owed are now around $610K. HUH?

The second lender agreed to a payoff of only $9K. And usually, it's the second lender that gives us grief. Not this time.

And my poor co-Realtor, who has worked on this listing for months is puzzled. She received several offers on this property. All of them were in the $550-575K range. The sellers accepted the highest and best, and they even have someone in back-up.

The realtor provided detailed comps and market analysis to justify the $575K sales price and to challenge the BPO. But the Countrywide loan negotiator won't even present this information to their investors, and wlll not budge from the $625K.

The sellers feel like they have no choice but to let Countrywide foreclose. Or they may file for bankruptcy.

Has anyone run into this problem before? Are other lenders demanding the same thing?

Having a bad day? Play these videos for the most contagious laughs EVER

Tue, 27 Oct 2009 16:08:59 -0500

Yes, it's not Friday yet, but I couldn't wait for Funny Fridays. I needed a good laugh, and researched a video that had me rolling on the floor laughing the first time I saw it.

Everyone has seen the laughing baby videos. But have your seen this one?

Hyuk! Hyuk! Hyuk!

When ZILLOW and CYBERHOMES estimates collide!

Sun, 25 Oct 2009 00:38:14 -0500

To illustrate a point about the value of using a comparative market analysis by a REALTOR, I pulled up the information on two of the most popular places where people go. To say that the difference is startling would be an understatement!

This house in Los Angeles is owned by my client who is debating whether or not to sell the house to his relatives who are renting from him so that he can buy his own house here in Alameda.

To get the market value, I advised him to get a CMA from a REALTOR. But I had to show him what it would be like to get the estimates from two of the most popular sites. And here's what we found.

CYBERHOMES

ZILLOW

WHAT A DIFFERENCE!

My client was amazed at the difference in the estimates. At least he now knows that going to either site isn't going to give him the information he needs to make an informed decision. Although these sites are sources of information, they are not or should not be THE best and only resource.

This was a fabulous way to make that point!

REFERRAL

And this was also a good time to let him know that as part of my service to him, I will find a REALTOR who can get him the information he needs.

Since I am a member of several networks, one of which is Active Rain, I have already engaged a REALTOR who had sent me a referral earlier this year. YEY!

When is a prospective buyer not a client?

Sun, 25 Oct 2009 00:03:54 -0500

These are troubled times, true. But does that mean we will value our time any less?

When is a prospective buyer NOT a client?

SCENARIOS

WE WANT TO SEE A PROPERTY NOW. Prospect calls at 1 pm, and want you to show a property in a few minutes because they're standing in front of a property they'd like to see it.
- You ask how they heard about it, and they say they received an email notice from another agent.
- You ask why not have that agent show it to them. They say they don't have a relationship with that agent, and just gets these notices
- You ask if they're pre-approved, they say yes. But hesitate when you ask by whom?
- You tell them you're not available at this time, or that the property needs 24 hours notice. So you ask to call or email them to set up another time. They'll give you a phone number, but won't give the email. Or they'll give you an email, but not a phone number. Or they say they're only available today.

WE WANT INFORMATION NOW. Prospect calls about a property and would like more information.
- You ask the usual questions, including whether or not they'r working with an agent. They say yes, they have an agent, but he's out of town, or busy at the moment, or they don't want to bother him. HUH?

DO YOU HAVE A LIST OF HOMES FOR SALE? Prospect walks in during your floor time and wants to see a list of all homes for sale.
- You tell them that home prices range from $200K to $1.5M in your town. So what budget range are they looking at? Blank look.
- Or they tell you they'll know it when they see it.
- You tell them you'll be happy to print information on certain properties but you'd like them to sit down with you to go over their requirements. They say they can't stay, or that someone is waiting in the car.
- You ask to get their name, number, email address so that you can alert them via email notification. They wlll give you some, but not all the information you request.

YOU GIVE REGULAR UPDATES BUT....So you got the critical information. You know what they're looking for. You even managed to show them a few properties. You regularly communicate via voice mail and email. You even send notes from time to time. For a while, they were gung-ho about the search....and then it happened.
- They tell you they've postponed looking for a while. or worse,
- They don't return your calls or emails

In my opinion, if a prospect isn't willing to spend the time, or give you critical information about themselves inspite of your efforts to build rapport, then this isn't a client.

NEXT!

REALTORS: Questions about your real estate state laws? Go to the most reliable source!

Fri, 23 Oct 2009 13:21:59 -0500

Today, while reading through some questions posted online, I came across this one:

"What is the status of the CA Foreclosure Moratorium that went into effect in June 2009? Are lenders still required to try a loan mod with the borrower for 90 days?"

I wondered if this REALTOR was trying to stimulate discussion. But she honestly sounded like she needed guidance. It seemed to me that the subject matter would make an excellent blog as an update, and not as a question from a REALTOR.

So I researched it on California Association of Realtors site. There is a wealth of information there. I feel guilty that I don't visit more often to stay abreast of Market Matters or Legal Updates.

One of the best resources for this Q&A is found on the Housing Stimulus Laws for 2009 (must be a member to log in and get this info)

And that's where I found the answers to her question. I promptly responded, and encouraged her to go to CAR's website to see for herself.

CALIFORNIA ASSOCIATION OF REALTORS - This is a wonderful opportinity to review what our member benefits are. Looking at the various tabs, one will find:

Newstand that has links to daily headlines about the real estate industry
Education our California association provides high-quality real estate education for members, and this is offered via a variety of delivery methods, like Face2Face, live lecture, online, and home study
Governmental Affairs - update on what CAR is doing to advance and support REALTOR issues in politics, public policy and legislation
Legal - lots of good and timely legal updates
Meetings and Events - allows us to register online to attend meetings
Business Tools - here's where we can access member beneifts, sign up for free webinars, etc
Find a REALTOR - the search can be customized by distance, specialty, designation, language proficiency, etc

When in doubt --- go to the most trusted source!

OPEN LETTER to Short Sale Sellers. If you really want to sell your property....

Tue, 20 Oct 2009 01:09:11 -0500

MY DEAR SELLERS

During a short sale, our mutual goal is to get an offer accepted as quickly as possible by your lender to prevent a foreclosure.

And as you already know, the effects of a short sale are far less damaging than a foreclosure or a bankruptcy.

REMEMBER YOUR GOAL: SELL THE PROPERTY!

Please understand that maintaining the home is still your primary responsibility during this selling process, whether you choose to stay or not at the property, remember what it takes to sell.

MAKE IT EASY TO SHOW YOUR PROPERTY

Keep the house looking nice inside and out. You literally only have minutes to make a good impression. Make that first impression count!

If it's messy and smelly, it won't sell. And if it doesn't sell, consider the alternative: foreclosure!

Allow the realtor to put a lockbox that other realtors can use to access the property.

How can we sell it if we can't show it?

Don't insist on unreasonable windows of time to show the property, such as showing only between 12 noon - 1 pm, or requiring 24 hours notice.

If you're serious about selling, you'll do your best to accommodate all interested buyers and their agents.

Keep the utilities on. Buyers, inspectors and appraisers need the utilities on to complete their respective activities.

A dark home is gloomy and uninviting. No power on will also make the home smell musty. Bathrooms and kitchens may show mildew. These are all unappealing and are turn-offs. Why take a chance? You'll only have to turn them back on for inspections later anyway. So just keep them on.

COMMUNICATE

Be accessible. Provide a number to best reach you, and return calls promptly

When you're going out of town, make sure you can still be reached by phone, email, fax.

Complete all required documents, especially your financial information, in a timely manner.

Keep your records current and handy. Don't pack away important information like your most recent tax returns, bank statements, pay stubs.

Keep the lines of communications open. Although doing a short sale transaction will take weeks from the time an offer is submitted, by the time the offer is ratified by the short sale lender, it becomes a race for time especially if the lender insists on a specific date to complete the transaction.

Your role as a seller doesn't end until the transaction closes escrow. What if the buyer backs out? We'll need to regroup quickly.

BE REALISTIC

Accept the possibility that your property may be worth less today than what you owe, or what you paid for.

What your house sells for should not be your primary concern. Protecting your credit and your future ability to buy a home in the near future, is.

Remember that as a condition of a short sale, you as the seller will not receive any funds from escrow.

So does it really matter to you how much it finally sells for? Just aim to get it sold!

You may have to spend a bit of money to spruce up your property , but consider that an investment to accomplish your goal

TAX RELIEF

Yes, these are challenging times. Nonetheless, remember the provisions of the Mortgage Forgiveness Debt Relief Act "to amend the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income, and for other purposes."

Key point in a short sale: the difference between what you owe and what it finally sells for was normally considered income, and would have been taxed as such....until the Mortgage Forgiveness Debt Relief Act was passed in December 2007, and applies to debt forgiven in calendar years 2007 through 2012.

As such, because this is not considered income, you may not have to pay taxes on it --- please consult with your CPA to get the complete and right answer.

THANK GOODNESS FOR SHORT SALES!

Sun, 18 Oct 2009 01:46:03 -0500

As much as I bemoan the length of time and the hoops I go through to do short sales transactions, I am taking this opportunity to say, "THANK GOODNESS FOR SHORT SALES!"

Why?

...Because it's a way to guide our sellers who have found themselves in dire situations and may not know their options.

...Because it's a way for distressed property owners to avoid foreclosure or bankruptcy, and thus salvage their credit

...Because more homes are within reach for home buyers who have little money but have a lot of time and patience to wait out the lengthy short sale process

...Because while there is a frenzy for buying foreclosure where people compete in multiple offer situations for AS IS purchases, there is less competition for short sales where there is room for negotiation

...Because short sales offer opportunities not just for the buyers looking for a good deal, or sellers hoping for debt forgiveness, but also for realtors who truly want to help their clients and who are in it for the long haul. When the going gets tough, the tough gets going. Right?

...Because we've learned how to do another type of sale. And every key learning is a new marketable skill.

What do we have to lose? It takes time, sure....but eventually, it will bear fruit. The more we sow, the more we reap.

Perhaps this is a good time to add that ALL of my current escrows are with short sale buyers and sellers!

OPEN LETTER to Short Sale Sellers. If you really want to sell your property....

BEST AND WORST SHORT SALE LENDERS - a Short Sale Report from ForeclosureRadar.com

RED FLAGS: Are short sale sellers selling, just or stalling?

REALITY CHECK: 98 OFFERS!

Thu, 15 Oct 2009 20:35:08 -0500

While setting expectations for a new client, I checked with the listing agent of a bank-owned property about the offer situation for the 3 bedroom/2 bath house in Hayward. I almost fell off my chair. He had already received 98 offers!

EDUCATING THE SELLER

Yes, we understand that in many cases, the banks set the list price. And that the strategy is to move the properties as quickly as possible. But aren't they at least informed or educated about the local markets? In recent months, there have been previously-unheard of stories of multiple offers in the 50s and 60s....but 98?

By listing the bank-owned property at incredibly low (and therefore artificial) price, the bank succeeds in:

creating havoc among the buyers and their agents
creating unnecessary work not only for the REO agents who must wade through these offers,
challenging the buyer's agents who have to explain to buyers why their above-list-price offers are not even in the running

EDUCATING THE BUYERS

This is an opportunity to educate the buyers on what it will take to have an offer accepted (or at least considered or countered) --- besides offering a wad of cash at way above list price.

But how can we keep motivating the buyers?

How can we motivate the buyers agents?

I've run into competitive situations...but I can't fathom 98 offers --- and at last count, they were still coming!

Exclude realtors from posting on a real estate network. Huh?

Sun, 11 Oct 2009 13:08:39 -0500

On TRULIA a real estate related network where people post questions about buying, selling, market conditions, etc. , there was a recent question that had me shaking my head in disbelief.

What is the best way to wall off the so-called "pros" from discussions? This poster said that he "got tired of the endless self-serving promotion by realtors of themselves and the real estate market. It is quite a turnoff and just ends up dumbing down the entire discussion to a sort of infomercial level."

And he asks:

Is there any way to have a section here where realtors and brokers are excluded?

Are there other real estate forums where you can have an adult discussion?

That opened the door to a lot of comments. Since this is a real estate forum, of course there will be a lot of realtors who will weigh in. After all, this is our life.

HOWEVER.....

It does bring up the question on when and how we should present our credentials ---- as people who are sincerely trying to help and provide good information, and not as hungry agents trolling for business.

I have to admit that I, myself, have seen where others do promote themselves and have gotten annoyed at a few who are so blatant about it.

Then I second-guessed myself, wondering if that's the way to build a business --- but an associate cautioned against doing that. He said that if you yourself are disturbed by what others are doing, why would you copy them?

What we should aim to do when answering questions is to stick to our purpose: give good information and qualified guidance.

QUESTIONS:

What are the two most important words in the English language? "Thank you."
What is the least important word? "I"

This is probably the right place to share this quotation from the Dalai Lama:

"If you want others to be happy, show compassion. If YOU want to be happy, show compassion."

Man's Brains versus Woman's Brains. Knowing the difference can save your relationship!

Sun, 11 Oct 2009 11:54:17 -0500

"Men are from Mars, and Women are from Venus." "He Said, She Said." Just a couple of book titles on the subject of how men and women think and express themselves.

"You don't understand!" "It's like talking to a wall." "You just don't get it." "You're not listening!" Sound familiar?

This video probably explains it better, and in just a few minutes, in a most entertaining way.

ENJOY!

How to buy a bank-owned home. The truth hurts!

Sat, 10 Oct 2009 00:25:27 -0500

Going through angst because of challenges regarding REO properties?

If you haven't seen this yet, you should watch it. The truth hurts, doesn't it?

Someone was clever enough to put the travails of a home buyer and a buyer's agent when it comes to making an offer on bank-owned properties.

I am going to send this to my buyers --- those with a sense of humor, of course --- and hope they can see the truth behind the hilarity.

IF YOU LOVE DOGS.... what do you do when they get sick....

Wed, 07 Oct 2009 15:40:14 -0500

This is a non-real estate related post, but directed at dog lovers in this community.

My family was made aware of two ailments that befell our dogs --- diseases we did not know about. And yes, they're serious.

HGE - Hemorrhagic Gastro Enteritis

http://vetmedicine.about.com/cs/dogdiseasesh/a/HGEindogs.htm

Last Thursday, my sister said their young Shiba Inu named Aiko seemed listless, and started vomiting blood. They made an appointment to see the doctor the following morning.

That night, her husband kept vigil over the dog. At 1:00 am Aiko started heaving and vomited a lot of blood. They packed her up and went to the veterinary hospital just 10 minutes away. Aiko didn't make it.

She was barely 4 years old. She was spirited and feisty. The family is in shock at how fast it happened.

Pemphigus Foliaceus

http://www.veterinarypartner.com/Content.plx?P=A&A=2202&S=1&SourceID=42

Our rescue dog, Joey, who is a Formosan Mountain Dog, started developing some skin lesions on his nose. They would dry up, and then new lesions formed. We took him to the vet who took a biopsy and confirmed the diagnosis. Left untreated, it could also be fatal. Fortunately, we were able to get him to a vet. Although the treament will be a long one that needs to be constantly monitored (and yes, it can get very expensive), we are thankful that we don't have to endure the heartache of losing a pet again.

We have never heard of these diseases before....so I wanted to make sure that the dog lovers are aware of their existence, what the symptoms are, and how fast one should act.

Don't second guess...

Does the Seller know what a Realtor does for him?

Mon, 05 Oct 2009 03:36:10 -0500

We can't tell people enough times the value we bring to the table. Buyers and Sellers alike don't really know what we do for them. And if they don't know, how can they appreciate us or refer us?

In advertising, there is a saying, "REPETITION, REPETITION, REPETITION"

Here's a question to all: How much is your time worth? Can you afford not to get paid for service you provide?

We, realtors, don't just provide transportation and open doors. I can only speak for myself, but this is a sampling of the service I provide for my Sellers:

BEFORE MEETING THE CLIENT

I prepare a comparative market analysis and put together a marketing presentation (not a cookie-cutter presentation. There's a lot of thought, research and effort in this presentation.
REALTORS will know that putting together a comparative market analysis is not just about looking at what sold, are active or pending. One has to determine other factors to qualify specific properties to be in the comps.

DURING THE MEETING

Because of the mountain of paperwork involved, it is critically important to review and explain the various documents and disclosures requiring the Seller's signature. This is also when we discuss a calendar of action items on what the seller and I should do to prepare the property for sale

ACTION ITEMS. These are the various activities I undertake:

Services
- Scheduling inspections (home inspections, pest inspections, etc)
- Helping and guiding sellers on staging their house.
- If they don't have the right stuff, or don't have enough, I augment the staging by using a few of my things. Or, I will recommend a professional stager to consult with the client.
- Providing resources for sellers, and letting in the service personnel in the house (e.g. Wood floor refinishers, painters, plumbers, electricians, housecleaners, landscapers, inspectors)
Marketing Materials Preparation
- Taking pictures (a lot of pictures!) - Selecting, editing, cropping, re-sizing, compressing, photo-stitching
- Creating visual tours
- Writing and designing flyers
- Advertising in print (newspapers, postcards, flyers)
- Putting together a Property Binder to include information about the property, copies of inspections, demographics, permit history, etc. that I provide at the house so that agents and prospective buyers can consult this information while they are at the property. Nothing like having info at your fingertips when you want it.
Marketing Activities
- Holding brokers' tours (during which I serve refreshments to entice more agents to come see the property)
- Holding open houses as needed
- Showing the property to prospective buyers

Online and target marketing to reach the biggest audience: THE WORLD!
- Uploading the posting on the MLS.
- Showcasing the listing on REALTOR.com, uploading as many as 25 pictures, customizing the descriptions and scrolling headline for the showcase. This is critically important since this serves as the primary source of information that other realty websites pick up. So by the time I activate a listing, it is complete with pictures and visual tour.
- Creating electronic flyers using Postlets, Vflyers
- Customizing uploads on Zillow, ActiveRain, Trulia
- Posting regularly on Craigslist
- Uploading and creating website information about the property (this is posted on my website on Point2 which is networked with other Point2 members.
- Uploading the information on our company website
- Uploading disclosures online.

INFORMATION

Following up with agents and prospective buyers who saw the property -- I send notes, email, and make phone calls
Updating my sellers frequently on the activity on their house. I do this by sending them copies of the reports on REALTOR.com and Trulia on how many times it's been viewed. I include other reports that are available (how many times it's been viewed on Zillow, my website, et). I include a list of all the realtors who have shown the property, provide numbers of people who came to the open house, etc.
Having continuous conversations with my Seller on the market, and if we should make some adjustments

OFFER NEGOTIATION

Negotiate offers--- my first question to the other agent is if the offer is the BEST and HIGHEST offer from the buyer. That may give them pause, and then they ask me to counter rather than reject the offer.
If there is more than one offer, I prepare an Excel spreadsheet comparing the terms and the estimated seller proceeds
Upon presenting the offer to the Seller, we go through an intensive discussion. Sometimes, we go back and forth, and may even have more than one counteroffer.
I call the buyer's lender and the buyer's agent to get a more complete sense of the financial wherewithal and motivation of the prospective buyers to close escrow
During the escrow period, there is continuing negotiation that may involve request for repairs, credits for closing costs, etc.
Coordinate with the buyer's agent the inspections and appraisal appointments

TRANSACTION COORDINATION

When we go into contract, I remain the point of contact among all parties
I engage, and pay for a transaction coordinator to make sure our paperwork is in order
Through it all, it's follow up, follow up, follow up!

These action items take hours, days, and weeks. I don't get paid until or unless I close escrow.

OUT OF POCKET EXPENSES
Remember, that I pay for all the advertising and marketing expenses that include membership in the Multiple Listing Service (MLS), REALTOR.com, website and visual tour hosting, newspaper advertising, color flyers and postcards, signage, etc.

If the property doesn't sell, I am not reimbursed for any of my out-of-pocket expenses

PUTTING THINGS INTO PERSPECTIVE: How much is your time worth? Can you afford not to get paid for service you provide?