Nicole 's Blog

Buyers are coming out of the woodwork...

Nicole Machado (Prudential California Realty) — Mon, 12 Jan 2009 16:35:56 -0600

With the Holidays behind us, buyers are back on the Real Estate scene scoping out the new inventory. This weekend I held a home in SSF open. I had over 65 groups come through and even ran out of fliers & ended up staying well after 4pm as buyers kept showing up. I can't remember the last time I ran out of fliers or had to stay longer then the open house was scheduled.
The home was a single family fixer, in a desirable neighborhood. I figured there was an abundance of buyers because it was the first weekend of scheduled open houses, come to find out it wasn't just my open house that faired well to the buyer's scene, it was everyone's.
Every Monday morning my office has its sales meetings. In the meetings we take count of how many people came through our open houses. Today the count was 400. Those are huge numbers which gives us all something to ponder... Buyers are out in droves, prices have come down and interest rates are historically at all time lows. Has the market hit its threshold? What are your thoughts? If you ask me, no one ever truly knows when a market has hit its bottom. All I can say is when it's your time to buy or sell, it doesn't really matter what else is going on around you. That's the beauty of Real Estate.

SSF Real Estate... things are looking up!

Nicole Machado (Prudential California Realty) — Fri, 12 Dec 2008 17:30:41 -0600

As 2008 wraps up and we all grasp onto our crystal balls to determine the fate of 2009... I wanted to end the year on a positive note with some statistics from the San Mateo County Multiple Listing Service that may help to give us all a positive outlook on the Real Estate market for 2009. South San Francisco was one of the Peninsula's hardest hit cities with short sales and foreclosures, but by the looks of it, SSF seems to be bouncing back just fine.

South San Francisco's First Quarter:

New Listings	CurrentInventory	Closed Sales	Average Days on Market	Average Continuous Days on Market	Average Sales Price	Median Sales Price	% listing Price Received	Total sales volume
131	136	35	83	106	626,107	600,000	96.47	21,913,750

South San Francisco's Second Quarter:

New Listings	CurrentInventory	Closed Sales	Average Days on Market	Average Continuous Days on Market	Average Sales Price	Median Sales Price	% listing Price Received	Total sales volume
157	170	63	70	103	609,563	575,000	95.59	38,402,500

South San Francisco's Third Quarter:

New Listings	CurrentInventory	Closed Sales	Average Days on Market	Average Continuous Days on Market	Average Sales Price	Median Sales Price	% listing Price Received	Total sales volume
148	163	79	61	72	606,457	580,000	97.69	47,910,168

Take a close look at the increase in closed sales, percentage of listing price received and total sales volume, while there is a steady decrease in Days on Market. While the average sales price has dropped since the first quarter it seems to have hit its threshold in the third quarter and on its way back up... although we don't yet have the statistics for the end of the year, all signs point to even more increases in closed sales and decreases in days on market. These are all great signs of a distressed market rebounding and becoming once again a stable market with so many great opportunities for buyers.
These statistics aren't just good news for buyers, its great news for all of you home owners. A stable market leads to appreciation, which leads to equity, which is why Real Estate in my opinion is the greatest investment you can ever make. I'll let you make your own opinions, but i'm sticking to mine!

Mixing Business with Pleasure... Does it mix?

Nicole Machado (Prudential California Realty) — Fri, 05 Dec 2008 11:31:08 -0600

Have you ever felt obligated to use a family member when it came to a business deal? While most of us have, has it ever left you wondering if that was the best decision? In some cases, it is an ideal circumstance. While in others it may be an uncomfortable situation that you were strong armed into. When it comes to Real Estate, for most people purchasing a home will be the biggest purchase in their lives. Which begs the question… do you want to hire a Realtor out of obligation or acquire one that has the skill set to provide unbiased information to assure you make the right choice when it comes time to purchase? I guess this circumstance definitely falls under the double edge sword category. Some would argue that family is always the best policy because there is already a built in “trust” clause. While others may argue that using family is a bad idea and only causes tension if something goes wrong. Let’s look at both the positive and negative aspects of hiring a family member as your Realtor…. Let’s pretend for a second that you are a first time home buyer and are ready to dive in and buy your first home. You have a family member who is in the business and expects you to use him/her. However, your not comfortable with them and aren’t sure he/she is the best fit. Meanwhile other family members are pressuring you to use them. Being a first time home buyer you have no idea how the process works or what loan products would be most beneficial to you. You look to your Realtor for guidance and to educate you on what loan products are available to a first time home buyer with little down payment, however your family member shrugs you off and leaves you playing the guessing game. When it comes time to get pre-approved your family member refers you to their lender and does not tell you to shop around for the best rate or explain what loan products you should be discussing with the lender. He/she automatically assumes because you’re family they can tell you what to do and you will do it no questions asked. To add icing to the cake, he/she refuses to show you short sale listings because they take too long, even though in your price range short sale listings make up about 1/3 of the inventory, which equates to you missing out on a huge chunk of homes that may fit your criteria. With this attitude, how are you supposed to feel comfortable with the home buying process? If you’re not comfortable enough to express your concerns, why on Earth would you continue the business relationship? At this point, the tension has built and it is only a matter of time until someone explodes and the family relationship is scarred. We sometimes have the tendency to let things slide when it comes to family. However when it comes to the biggest purchase of your life, do you really want to “let things slide”? On a positive note.. You are a first time home buyer, who has a family member in the business. You have a great relationship with him/her already and feel completely comfortable hiring them as your Realtor. Your family member is very hands on and explains the home buying process in detail, while setting you up with a few lenders to ensure you get the best interest rate and loan product available to you. Because you are a first time home buyer and have little down payment your family member knows he/she will have to show you all available active homes, whether they be regular sales, short sales or foreclosures. You feel more confident as the process moves forward and know you made the right decision when hiring your family member. So the question still remains… Is it better to mix business with pleasure or keep them separate? The answer won’t be the same for everyone. I guess at the end of the day, you have to listen to your gut. If you feel comfortable going into the situation, 9 times out of 10 things will pan out. If you are uneasy going in, maybe you should stop and weigh out the pros and cons before making your decision. If you don’t want to hurt someone’s feelings, talk to them about your concerns. If he/she is a professional, they will gladly refer you to another Realtor who may better fit your needs.

Christmas come early...

Nicole Machado (Prudential California Realty) — Wed, 19 Nov 2008 00:29:39 -0600

As we approach the holiday season, while everyone else is immersed in cooking the Thanksgiving Turkey and getting up at dawn to get those Holiday discounts on the season's hottest new toy you can take advantage of the season's best toy... a house!

In the last few months competition has been fierce when trying to purchase a short sale or foreclosed property. With the Holidays right around the corner, people's priorities will shift from purchasing a home to purchasing presents for underneath the tree. Nobody ever stops to think that purchasing a home during the holiday season is the best gift of all.

With the latest interest rate decrease and the great loan products out there, while everyone else is sipping on egg nog, you can be signing your closing papers and surprising your family with the biggest present of all. Here are just a few reasons or advantages I should say on why the Holiday season is the best time of the year to purchase a home...

Less competition from other potential home buyers
More negotiating power (During the holidays, there are not a lot of buyers, so sellers are more likely to sell for less in order to get their homes sold).
Pick of the litter (Without a lot of home buyers out there, you will have your pick of the latest inventory).
Having a home to wrap those presents & sip on your egg nog!!!!

Is it a good time to move up?

Nicole Machado (Prudential California Realty) — Wed, 19 Nov 2008 00:25:37 -0600

Everyone's question these days seems to be "Is now the right time to buy"? I have come up with a chart that helps you make the decision if now is the right time to buy!

Current Home New Home

Sell	Spread (What it would cost you to move)	Buy
$100K	$100K	$200K
(Value appreciates 10%) $110K	$110K	$220K
(Value depreciates 10%) $ 90K	$ 90K	$180K

The above chart is an example of a "move-up" buyer determining whether it is a good time to purchase an upgrade property.

Now ask yourself this question... "When does it make more sense to move up- when prices have gone up less or when they've gone down more?"

If you have answered when prices go down, you are the lucky winner!!!! You profit the most when the spread is less. So whether you are discouraged that you don't have enough equity or down payment in order to move, ask yourself this question....

"If you don't feel you can move up comfortably now, how will you be able to do so when prices go up further?"

***One last thing to ponder... When interest rates go from 6% to 7.5% the prices of homes would have to go down 14.7% in order to keep the same monthly payment.

Short Sales arrrhhhhhh!!!

Nicole Machado (Prudential California Realty) — Wed, 22 Oct 2008 16:21:50 -0500

I can't wait for the day that short sales fall off the face of the planet! Many of my clients whom I have said before are first time home buyers. Sadly this means that I am writing what seems like hundreds of offers on short sales! I cringe everytime I check inventory for new listings for my clients!

I know I shouldn't be complaining because I am writing offers, but between the wait time and in most cases the listing agent knowing nothing about short sales it is just too much to bare! I have four different clients that have offers out on short sale properties, so maybe if I am lucky I will close escrow in 2010!

I try to explain to my clients that patience is a virtue and basically wait it out until one responds. One set of clients have been really proactive and we actually just got into contract on a regular sale. We viewed the property and wrote on it the first day it hit the market. My clients were actually startled by how fast everything happened and couldn't believe they were in escrow. Of course as chance would have it two of the short sales offers were both approved, so I had to regretfully say NO THANK YOU! It figures, it would take 5 months to get a response and then when my clients are FINALLY in escrow my phone starts ringing!

FHA is alright in my book

Nicole Machado (Prudential California Realty) — Mon, 20 Oct 2008 17:20:01 -0500

Most of my clientele are first time home buyers... some may say that isn't the best database to have, but I think it is definitely the most rewarding.

I am a firm believer in FHA as that is all I have encountered in the last several months. Because my buyers have limited funds for down payments, FHA has been the only way they can qualify for loans. While there may be more paperwork involved and that ever so annoying upfront mortgage insurance fee, FHA is giving home buyers the opportunity to achieve financial success when all other products have failed them.

I recently entered escrow with a couple I have been working with for 6 months now. Because they are first time home buyers their price point was in neighborhoods saturated by short sales and REO's. I can't even tell you how many offers we wrote, but I can tell you that after a long six months, a home came on the market that was niether a short sale or REO. We we wrote on it the very first day and I am proud to say my buyers are now in escrow and can't wait to move in.

This would not be possible if it weren't for FHA, so I for one say THANK YOU FHA!!!! I wanted to write about something positive, as it seems the media only likes speaking about the negative. Real Estate in my opinion is the best investment out there and I am proud to say that I assist in helping people achieve their finacial success... after all isn't owning a home the "American Dream"?

I didn't mean to say that....

Nicole Machado (Prudential California Realty) — Mon, 20 Oct 2008 16:57:08 -0500

I recently wrote a blog on my companies website, that was completely taken out of context by a few people. Has this ever happened to you? The comments my administrator was receiving were not so nice to say the least.

When I write blogs, I typically like to add sarcasm or some sort of wit to keep the blog interesting. The problem is becuase there is no real "tone" or explanation blogs can very easily be taken out of context. After reading some of the comments, I felt horrible and never wanted to write another blog again. Obviously I have decided to write again, but I feel as though I am holding back as to not piss anyone off.

So I guess my question is, how do you speak your mind or shall I say stick to your guns, without the backlash of someone twisitng your words and writing negative comments back to you? I'm beginning to think you just have to roll with the punches and if some are harder then others you just have to learn to let it go. Not everyone can agree with you at all times... right????

Social Media... is it really beneficial?

Nicole Machado (Prudential California Realty) — Fri, 17 Oct 2008 17:31:21 -0500

As technology has sped up in the last few years, Realtors really have had to beef up those skills in order to create new ways of marketing to capture leads and build their business. My question is how beneficial is it and how much time does one need to spend in order to achieve "zen" social media status??

I have set up my profile on what feels like a zillion different sites in order to get my name out there and get back in touch with people I had lost along the way. I can say that it does help in finding people, but that in its own way can be a double edge sword. What if there are just some people you don't want to reconnect with? Does the end justify the means when it comes to that?

I will have to say that I have started to get more leads as I get more involved with social media, but I feel like it is so time consuming. When is enough really enough? Any thoughts to the latest craze called Social Media and is it really detrimental to our business?

I think it is neccessary to have a web presence, I guess it is just finding a healthy mix of the "New School" vs the "old School" way of prospecting!

FHA Loans

Nicole Machado (Prudential California Realty) — Sun, 04 May 2008 19:20:45 -0500

I have recently started to take advantage of the FHA Loan Programs that are available to buyers. I thought it would be helpful if I posted the FHA requirements that may benefit you & your clients.

Why Choose FHA?

FHA Loan Limits

1 unit $729,750

2 unit $934,200

3 unit $1,129,250

4 unit $1,403,400

*Good news!

FHA'S Higher Loan Limits are here

- Purchase & Refinance

- NO DECLINING MARKET VALUE J

- No Income Limits (like most programs)

- HUD has no minimum credit score

- 1-4 units O/O only (Full doc only)

- Permits non-occupying co-borrowers w/ out separate qualifying ratios (FNMA requires the income combine for qualifying ratios)

- Cash out refinances up to 95% LTV / 97.75% rate & term

If you are a buyer in the San Francisco Bay Area & would like additional information, please email me at nicole@mve2day.com

In this Business, you have to be a go getter!

Nicole Machado (Prudential California Realty) — Sat, 29 Mar 2008 22:22:03 -0500

What do you do when your phone stops ringing and your pipeline has dried up? In the recent month I have not been getting as many appointments as I would like and with one escrow closing and not one being opened, I started to panic!

As I have mentioned in a previous blog, I recently became a first time home owner myself. With property taxes amongst us and being hit with that fabulous little tax bill called the "supplemental" I think I have focused more negative energy on that then focusing on getting new business.

During a brief panic attack after opening that dreadful supplemental tax bill I called my brother. Not for any solid words of advice or even pitty but just because I knew somehow he would calm me down! He said something to me that stuck.. "you'll find a way you always do"! At that moment I realized I needed to stop focusing on the overwhelming feeling of not knowing how to pay for these taxes and start focusing on how I was going to pay for them.

My business partner called me the next day, as I lay in bed flat on my back because I threw my back out the night before (pre-exisiting back condition; great timimg I know). He told me that he performed an MLS search and found a property that would cash flow for an investor. At that moment, I felt like the birds were singing and the angels were shouting Hallelujah outside my window! It was definitely too good to be true!

Not having a sphere full of investors, I called upon someone I know invests and never thinking he would ever use me for a transaction, I figured what the hell, I would give it a shot anyways. To my amazement, he said he would be my buyer and I could represent him if infact the property was what I told him it was! Again the birds were singing and the angels shouted hallelujah!

After going to the ER to get brief relief of my back pain, I hobbled into work wrote the offer and now sit anxiously awaiting for an answer from the listing agent!

The moral to this story is that a closed mouth does not get fed! If you are truly determined anything is possible! Now I don't know what the outcome is for this transaction yet, but I do know that I gained the respect of the investor that I wrote the offer for and that is definitely worth more to me because I now have the confidence I need to go out and find buyers who may not even be in the market to buy, but would if the right opportunity came knocking!

So the moral of this story is to start your own knocking!

Deepak Chopra, Mind-Body Guru, author of The Seven Spiritual Laws of Success

Nicole Machado (Prudential California Realty) — Sat, 29 Mar 2008 22:01:32 -0500

I thought these quotes would help to inspire those who may need a little extra hope these days....

If you don't like something change it; if you can't change it, change the way you think about it.
Mary Engelbreit

Excellence is not a skill. It is an attitude.
Ralph Marston

Work is either fun or drudgery. It depends on your attitude. I like fun.
Colleen Barrett

Things turn out best for the people who make the best out of the way things turn out.
Art Linkletter

Bite off more than you can chew, then chew it.
Ella Williams

Those who wish to sing, always find a song.
Swedish Proverb

I don't like that man. I must get to know him better.
Abraham Lincoln

Positive anything is better than negative thinking.
Elbert Hubbard

Wherever you go, no matter what the weather, always bring your own sunshine.
Anthony J. D'Angelo

The Real Estate Storm

Nicole Machado (Prudential California Realty) — Sat, 29 Mar 2008 21:50:56 -0500

I have been in Real Estate for a little over three years now. Being a "newbie" to the industry is a long hard road and I am proud to say I conquered it! I definitely have a better appreciation for fellow Realtors (good ones anyways) then I ever did before entering the business! This job is definitely not for the faint of heart!

This past October I became a first time home buyer. It was definitely the most scariest and exhilirating time of my life thus far. Scary because even though I am doing better in Real Estate each year, I am still not financially where I would lke to be! None the less I jumped into home ownership head first! After all, this is my business and if I don't believe in the product, how am I ever suppose to be successful at selling it!

Over the past few months I have had past clients call me with worries that their home values have dropped and they owe more then its worth. I keep telling them the storm is almost over and as long as they aren't selling they will ride it out and come out on top!

Recently I performed an MLS searach on the complex where I bought my condo. To my dismay, there is a 1 bedroom condo active on the market at $199K. I wanted to throw up! Since October the price of a condo has plummeted over 100K because of foreclosures and short sales. At that point, I realized how all of my past clients felt knowing they paid more for a property then it was currently worth! I couldn't help but get angry because now that the banks have shot themselves in the foot for allowing consumers to purchase and turning a blind eye to the fact that most of them didn't qualify, but now drastically under cutting our equity so they can get out of a deal!

I fear that there will be more to come and unfortunately as I have been telling my clients, we all have to ride out the storm!

The reason for this blog isn't to envoke negative energy, but to bring some positive aspects to our industry. As I have referred to this volitle market as a storm, it is my hope that this storm will wash away all the people that helped us to get to such a volitle place and when the storm clears, we can get back to selling Real Estate and watch it continue to be the best long term investment on the planet!

Conforming Rate Change

Nicole Machado (Prudential California Realty) — Mon, 10 Mar 2008 17:01:58 -0500

It appears the conforming rate has offically changed. I am not sure what kind of an impact it will have on the market. Is it just a bandaid for the time being? What will happen after Dec 31st 2008 when the rate goes back down?

I am an optimist, so I definitely hope it will change the market in a positive way and really help stimulate the economy. I am just not sold that in the short amount of time it is made available that it will have a huge impact on the current market.

With the strict guidelines from the lenders these days, some people may not even qualify to refinance their homes or purchase new ones and take advantage of the new rate change.

Does anyone have some insight on this issue????

Auctions... are they really a "good deal"?

Nicole Machado (Prudential California Realty) — Sat, 01 Mar 2008 17:32:54 -0600

I really don't understand what all the buzz is about concerning homes that have been foreclosed on and going to auction. There was recently an auction held in San Mateo County and the 4 homes that were being auctioned in San Mateo county all sold for basically what they would have sold for if they were out on the market and sold at market value. In fact, a couple of them sold for more then what they probably would have sold for if they had been placed for sale. After paying the required "buyer's commission fees" the price went over market value. So I guess the question remains... are auctions really all they are cracked up to be or does it depend on what area the homes are in where you actually do get a so called "good deal"?

Buyers are starting to come out of the wood work...

Nicole Machado (Prudential California Realty) — Sat, 01 Mar 2008 17:07:32 -0600

The last couple of days for me have been super busy with buyers that have been on the fence for months now. Either something is in the air, or buyers are starting to realize it is definitely time to take advantage of the "slow" market.

I have had 5 buyers appointments in the last few days all followed with pre-approval appointments! One of my co-workers received 4 offers on a home after only 6 days on the market.

It is important to keep in touch with your database and follow-up with good solid information to educate them. That way when the time comes they are armed and ready to make their move. Keep a postive outlook on the market and watch the leads start rolling in!

"The Secret"

Nicole Machado (Prudential California Realty) — Thu, 28 Feb 2008 23:32:14 -0600

I just finished writing a blog about the power of positive thinking! I have already received 4 responses in about 5 minutes all with comments about the movie and book "The Secret". This blog is specifically geared toward telling everyone that if you don't already own a copy of "The Secret", it is my suggestion to buy one.

It is so important to have on hand to remind us all about the power of positive thinking, especially on one of those bad days when you find out one of your clients wrote an offer with the listing agent at an open house or one of your family members just put their house on the market and it's not your sign out in the yard.

Someone once told me that in this business if you work hard and just be there that opportunites will present themselves in places you least expect it. He was right!

The Power of Positive Thinking

Nicole Machado (Prudential California Realty) — Thu, 28 Feb 2008 23:11:31 -0600

Call it a coincidence if you will, I'm going to go with "The Secret" and law of attraction! My business partner and I were on our way to one of our properties to meet an electrician. On the way we noticed a mortuary was for sale. We looked at eachother and said, "who can we sell a mortuary to"? Then we preceeded to laugh and go about our day.

Today I received a phone call from my partner.... who was blown away! He told me that he had just gotten a phone call from someone who wants to purchase that mortuary and would like us to assist him with the transaction!

Now I can pretty much guarantee we aren't going to be able to drive around see a for sale sign and have the same thing happen, but I will say that as long as you keep a positive attitude and work hard it will pay off in one way or another.

To all of you hard working Realtors out there, the lesson for the day is keep at it and you will reap the benefits!!!

Marketing to FSBO's

Nicole Machado (Prudential California Realty) — Fri, 22 Feb 2008 16:14:24 -0600

All you Prudential agents out there... I just went to a seminar that Prudential was sponsoring called the "The Brand". It focus alot on how to use the "rock" to our advantage when it comes to marketing. One of the most interesting info for me was the marketing brochure to hand out to FSBO's. It is called 20 Steps to Selling your Home. The brochure basically motivates sellers to list with you beacuse of the time intensive steps it takes to sell a home. Talk about scaring someone straight.

The brochure can be order through the prea website and may act as a good marketing tool when going after that touch FSBO market.

Packaging your short sale offer to the bank....

Nicole Machado (Prudential California Realty) — Fri, 15 Feb 2008 14:26:39 -0600

I recently attended a seminar in regards to short sales and foreclosures. The most important thing I got out of the seminar was learning how to properly package yoru short sale offer to ensure a timely acceptance.

Packaging your offer could make or break the deal for your client and with such a touchy timeframe, it may make all the difference when it comes to saving your client from foreclosure rearing its ugly head.

Here are some tips to to discuss with your seller when taking the short sale listing...

1. Ask them to pay for an appraisal (most likely they haven't made a mortage payment in the last couple of months, so they should be able to afford an appraisal)

2. Make sure that the appraiser you use is approved by the bank that is carrying the loans. The bank is more then likely to use that appraisal and skip that part of the approval process considering more then likely they would have hired him to do the appraisal anyways. *** Remember you always want third party validation.

3. Always make all of your requests in writing, the banks won't return calls and don't have time to listen to you. You usually never get teh same person twice, so why waste your own time waiting on hold forever.

4. Have your title company prepare an estimated net sheet to include in your package. Seller's net proceeds to be zero dollars

5. Seller signed authorization for lender to discuss issue

6. CMA- Print out the full format CMA, not the one line summary. Make sure to include the expired listings, this way they will understand that just putting a house on the market won't get the home sold. Get the bank to get the real picture of the market.

7. Escrow instructions

8. Preliminary Title Report

9. Financial Statement

10. Letter disclosing why the current situation exists

11. Newspaper articles regarding current market

Other tips....

Make sure that any contingencies noted on the listing agreement are transferred onto the purchase agreement, that way your client isn't trapped or obligated into commitments they may not want.

**Your short sale package should be a minimum of 60 pages.

This may seem like more work then you signed up for, but if it means getting the property sold in the least amount of time its a win-win for everyone involved.

If anyone has any other tips to add, please feel free to respond.... happy blogging