Pacita's Quick Bytes of Real Estate

GREEN BUILDING has a winner in Alameda CA's first GREEN home

Tue, 08 Dec 2009 02:16:07 -0600

Alameda Library is the first green building in Alameda. And now, 1533 Morton Street is the first green home that adheres to the green building principles as outlined by the Smart Communities Network

GREEN BUILDING PRINCIPLES

Energy efficiency and renewable energy resources. Building strategy, cost-effective energy technologies, proper siting, renewable energy systems are all designed to reduce the amount of energy the property needs to operate and to keep its occupants comfortable. Photovoltaic system is just one of many technologies used by this home.

Environmental impact. By building the home as an infill, it preserves the site's integrity, natural characteristics. A common definition of infill is "the use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program."

Resource Conservation. Some examples include selecting materials that have some recycled content, installing water-conserving and energy-efficient products. The home features non-toxic and recycled denim/blue jeans for insulation. The benefits are many.

Indoor Air Quality Avoid construction and interior products that release volatile organic compounds (VOCs) and ensure interior spaces are adequately ventilated.

Community Issues. This home is just down the block to the bus stop where one can get on the express bus to San Francisco. Its Walk Score is a high 82 which deems it "very walk able" and encourages bicycling and walking to amenities that include shopping and recreational facilities.

INTRODUCING: 1533 Morton Street. Take a look at the long list of green elements of this fabulous home.

THE HOME (Take a look at more photos by clicking on Alameda's first green home)

Built in 2009
3 bedrooms
3.5 baths
2000 sq ft of living space
1-car attached garage with combination touch pad
1-car driveway parking
Front door security system with color monitor

INDOOR AIR QUALITY

Central vacuum cleaning system
Exhaust fan in garage for carbon monoxide removal
Carbon monoxide alarm and smoke detectors at door to garage
Permanent walk-off matting system at entrance
Low VOC paint and finishes
Kitchen exhaust fan vented outside
All non-toxic cotton insulation made of recycled cotton denim/blue jeans
Air ducts and vents protected during construction

WATER CONSERVATION

All plumbing fixtures are Grohe water-saving fixtures
Energy Star rated water saver Grohe dishwasher
Dual flush toilets by Toto
Timers at all irrigation systems
Drought/heat tolerant 90% Tall Fescue/10% Bluegrass blend
Native species plants with no invasive species, with mulch and compost at landscaping

COMMUNITY

Efficient 2000 sq ft floor plan with creative design
Urban infill lot
High Walk Score, near shops, services, public transport
Homeowner manual of green features and benefits
Site orientation for solar panels. ventilation systems

ENERGY CONSERVATION

2.45 kW rated solar energy system
92% high efficiency heating system with heat recovery ventilation
Tank-less on-demand hot water system within 24 ft of all hot water fixtures and appliances
Insulation at all hot water pipes
All ductwork installed within conditioned spaces
Energy Star rated appliances by Bosch and Liebherr
Compact fluorescent recessed lighting
Energy saving lighting and fan controls
High efficiency insulated Kolbe windows and doors with low-e glazing
Passive design elements for natural lighting and ventilation
Windows at garage door for natural light and ventilation

RESOURCE CONSERVATION

40-year composition shingle roofing
Caesar Stone countertops-recyclable content
Durable Trex decking material with reclaimed wood and plastic content
Built-in recycling center
Bamboo flooring in main living areas
Cork flooring in bedrooms
Stained concrete floor at entry level
Custom bamboo cabinets in kitchen and bathrooms
Deconstruct existing structure onsite and reuse for siding at historic home
Air construction debris was sorted and diverted for reuse
25% ash in concrete for slab and foundation
Engineered wood at headers and floor joist systems
Cementations siding with recycled content and 15-year factory applied finish
Pre-wired for cable TV, telephone with Cat5e, network ready

By the way, for folks who don't know where Alameda is --- it's an island on San Francisco Bay, just across the Bay and the Bay Bridge from San Francisco CA. Easy commute to the City and other places in the East Bay. Come see us!

ATTENTION SELLERS: it's time to sell. Months inventories are low, low, low!

Sun, 06 Dec 2009 23:11:18 -0600

Looking at the market activity in East Bay's Alameda and Contra Costa counties --- you know, we're just east of San Francisco, across the San Francisco Bay ---- it points to very low inventories in nearly all of the cities.

Typically, we say that if months inventory is less than six months, then it's a seller's market. What if they're 2 months? 1 month?

Months of inventory is the number of months it would take to sell all of the homes in the market if no other homes come up for sale. Typically, a seller's market is defined as having less than three months of inventory; while a buyer's market is anything greater than six months. Simply put, it's a market that has more buyers than sellers --- and where high prices result from the excess of demand over supply.

SELLERS: IT'S A GOOD TIME TO SELL! (in Alameda and Contra Costa counties, East Bay of CA)

Buyers have a deadline to meet and be eligible for the extended first time home buyer the repeat/move up home buyer tax credit. They must be in contract by April 30, and close escrow by June 30 2010.
Inventories are low, so there's less competition for the same pools of buyers
If you're going to be repeat or move up buyers yourselves, you may be eligible for expanded tax credit, too. And don't forget the interest rates are some of the lowest in forty years!

Here's a report on the market activity between November 2008 - November 2009 pertaining to detached residential homes that sold at all price levels in Alameda and Contra Costa counties.

ALAMEDA COUNTY

	Median sold price	Average Days on market	Months inventory
Alameda County	$435,000	45	2
Alameda	$550,000	37	3
Albany	$732,000	37	1
Berkeley	$725,150	66	2
Castro Valley	$467,000	60	2
Dublin	$627,000	46	1
Fremont	$641,000	36	2
Hayward	$277,500	35	1
Livermore	$429,000	55	1
Newark	$425,000	33	2
Oakland	$258,000	39	2
Piedmont	$954,590	33	8
Pleasanton	$670,000	59	3
San Leandro	$345,000	42	1
San Lorenzo	$315,000	22	2
Union City	$460,000	65	1

CONTRA COSTA COUNTY

	Median sold price	Average Days on Market	Months Inventory
Contra Costa County	$305,000	43	2
Antioch	$197,500	35	1
Brentwood	$299,000	38	1
Clayton	$652,000	102	2
Concord	$329,000	32	2
Danville	$850,000	61	3
El Cerrito	$569,000	21	2
Hercules	$380,000	33	1
Lafayette	$1,045,000	81	6
Martinez	$375,000	49	4
Moraga	$850,000	22	5
Oakley	$220,000	47	2
Orinda	$906,724	89	3
Pinole	$311,000	35	1
Pittsburg	$195,000	39	1
Pleasant Hill	$485,000	48	2
Richmond	$150,900	41	1
San Pablo	$161,000	41	2
San Ramon	$697,500	29	2
Walnut Creek	$670,000	54	3

Oakland/Alameda Estuary Lighted Boat Parade in Alameda CA --- a fabulous show!

Sun, 06 Dec 2009 02:50:39 -0600

Dec. 5, 2009. The theme for this year's Oakland/Alameda Estuary Lighted Boat Parade is "Christmas Carols".

At around 5 pm, just before dark, the participating boats lined up and took their practice runs. Athough we didn't know it at the time, the theme was evident as boat after boat cruised by, with many of them having crews singing along with Christmas carols blaring over their boats' speakers.

Friends (and my clients) Carmel and Loretta invited several people to watch the parade on their boat, the Far Niente (which means "without a care" in Italian). Their boat had an absolutely perfect slip directly on the estuary at Fortman Marina. So we had beautiful and unobstructed views.

Other folks on the boat included another couple of friends and also my clients, Garry Merry and Patricia Simpson. The boat on the next slip is owned by Pete and Jan who held a lighted boat parade-watching party, too, so guests were boat-hopping. We happily munched on salmon and chicken wellington cooked by Carmel's son who is a chef. That in itself was a huge treat!

We cheered on our favorite boats

...while cameras (and iphones) were clicking away. There were so many good entries this year, and we had our favorites including the snowman themed boat, and a dinghy all decked up like a locomotive that seemed to struggle moving along, so we dubbed it the Little Engine That Could.

Tonight's event is one of the reasons why we love living in Alameda. Simple things like an old-fashioned July 4th parade, the free Crab Cove outdoor concerts in the summer , sand castle building, and now, the lighted boat parade.

It helps that we have such wonderful and generous friends who share these moments.

Ahhh---lameda......life is good!

GREEN BUILDING: What qualifies? If you build it, will they come?

Sat, 28 Nov 2009 17:53:46 -0600

It isn't easy being green....and Kermit isn't the only one sighing. If you build it, will they come?

First, let's try to understand the criteria. From StopWaste.org (Alameda County, CA) here's what they say

WHAT IS GREEN BUILDING?

In a nutshell, green building means taking steps to create wonderful homes that are safe for our families and communities and that protect our environment. Whether you are redecorating, remodeling or planning to build a new home, keep in mind these three fundamental green building goals:

Be mindful about using limited resources such as wood and water so that you limit waste, pollution and environmental damage.
Build and remodel with energy efficiency in mind to save money, create a more comfortable home, and reduce air pollution and global warming.
Choose healthy materials and construction methods to prevent indoor pollution from formaldehyde, mold and other contaminants.

WHAT ARE THE BENEFITS?

People are drawn to green building for many important reasons, including:

Higher quality. Most green building products and materials were developed to perform better than their conventional counterparts.
Greater durability and less maintenance. Green building encourages the use of long-lasting products that don't require a lot of time or harsh chemicals to maintain. Products that don't have to be replaced frequently also put less of a burden on natural resources and landfills.
Greater comfort and lower utility bills. Energy efficiency upgrades can reduce your energy bills while providing you with all the comfort and convenience you expect.
Healthier products and practices. Green building promotes the use of products and construction practices that don't introduce harmful chemicals or other pollutants into your home.
Natural resource conservation. Protecting the environment is another compelling reason for choosing to build green.

There are so many sites dedicated to green building including HGTV that dedicated a whole section on Green building: From the basement to the roof

I was intrigued by the article that mention a survey that says consumers are willing to pay more for green products. Is that true? Is that the reason why the perception is that it'll cost you more green to go green?

GREEN BUILDING IN ALAMEDA

Rather than building another McMansion in Bayport, the builder selected an established neighborhood where he built Alameda's first green building infill (house behind another house on large lot).

The new house is completely green. The architect and builder took the elements of the first house and applied them to the design of the new house. The best possible green materials were used

However, this property is still unsold. Why?

Resistance from the neighbors?
Aversion to the thought of a house behind another? Tthis is NOT uncommon in this city
Price? Still lot more affordable when compared to what this home would cost in San Francisco
Design? Beauty is in the eye of the beholder.

This property was designed by Sinan Sabuncuoglu, an architect who supervised the construction from top to bottom and who owns and manages Berkeley Design Center.

The choices of materials were carefully selected. We should celebrate the choice of building something green, and tout this as an example of what can be done to conform to building limitations (in Alameda, expansion is limited to 2 units on a single lot, and there should be a minimum of 2500 sq foot lot allowance per unit).

Looking forward to having more people appreciate this builder's contribution to Alameda, and for more green effort to restoration and renovations as well.

Case Study for ActiveRainers: HOW SHOULD YOU MARKET a unique ECO-FRIENDLY home?

Mon, 23 Nov 2009 20:23:19 -0600

Somehow, it seems to go against the concept of being green by advertising in print. Traditional marketing takes a back-seat if you want to reach that unique buyer who appreciates the eco-friendly aspects of a green --- REALLY GREEN --- and brand-new home.

And it also seems inefficient to use print if the objective is to reach the biggest target audience when the internet can reach the entire world!

So....what do you do, and where should you go? Here are but a few ideas. Let's hear it from the rest of you!

ECO-WORDS

The EcoBroker website has very limited listings --- and how many buyers actually look there?

Besides the usual websites like REALTOR.com and electronic flyers such as Postlets and Vflyers,what would you propose as a unique way to market an environment-friendly home that will set it apart from the rest?

Filling the description with key words is a given.....yes, we should pepper the text with words like:

- environment-friendly
- eco-friendly
- energy-saving
- green building
- sustainability
- solar energy
- bamboo floor
- cork floor
- recycled building products
- tankless water heater
- photovoltaic system

A good source for eco-friendly terms is TreeHugger.com. Getting Google juice is paramount in reaching the widest audience.

GOOD PRESS

"Build it and they will come" per the movie "A Field of Dreams". Guess those folks never heard of advertising or marketing. Thanks goodness for word-of-mouth!

When it comes to unique products, getting good press is extremely important. Engaging reporters to write feature articles about the property is worth its weight in gold.

TELL 'EM WHAT YOU'RE GOING TO TELL 'EM THEN TELL 'EM AGAIN

Let's not forget that there is a story to tell.

Focus on the key ideas, and keep repeating them. If we don't reach them the first time, we may reach them a second time the story is told. Or those who missed it the first time may find it the next time.

Put the keywords in all you online ads. Blog about it!

Once is simply NOT enough

A PICTURE IS WORTH A THOUSAND WORDS

Words alone will NOT sell a product.

With the help of careful staging, visualizing the property through a well-conceived visual tour or video, it's the next best thing to being there.

Besides showing how nice the rooms look, focus on the what makes this property green? Do a close-up of the photo-voltaic system. Zoom in on what that insulation really is made of.

Wow! Recycled denim!

NETWORKING

Perhaps an under-utilized method is networking with other like-minded people who will likely know others with similar interests.

That's why we have ActiveRain!

Will realtors ever stop saying "Now is the time to buy and sell real estate". Just give us the facts, ma'am.

Sun, 15 Nov 2009 17:09:46 -0600

Is it a good time to buy and sell real estate?

The perception is that REALTORs are always trying to convince their clients to buy or sell real estate each and any time. But the reality is that when the buyers or sellers are on the verge of making a decision, they are the people who make that decision based on the information they have, and how they process that information.

As such, it is always a good idea to stay abreast of the real estate market movement and factors that are affecting --- or effecting --- that movement.

Affect versus Effect

There is a difference when used as a verb:

Affect means: to have an influence on; to act on the emotions of; to attack or infect
Effect means: to bring about to produce an outcome to achieve a result

How to we apply this to real estate and to answer the question of whether or not it's a good time to buy or sell? The answer lies in how people process, interpret and take action on the information they know about the current situation.

Tax credits

The National Association of REALTORS helped to effect(cause to happen) the extension and expansion of the tax credits by encouraging its membership to contact their legislators to pass the bill and encourage President Obama to sign it.
Who are affected by the bill when it was signed? The first time home buyers and repeat buyers who have until April 30 2010 to get into contract, and have 60 days to close escrow to qualify for the tax credit.

Short sales and Foreclosures

The four largest lenders are staffing up their short sale department to effect a simplification of the short sale process
Homeowners who are suffering reduced incomes and drop in home market values are facing foreclosure, and are directly affected by the economic downturn. Market observers like Steve Harney say that "if anything, future foreclosure inventor is underestimated, not overestimated."
More short sales and foreclosures may adversely affect the market values of neighboring homes. So if property owners are contemplating selling their home, they should factor the projected increase in distressed properties. How can they compete? Price their homes aggressively so that they move fast and ahead of the market. Assume

Assume $500,000 home in November 2009, and owner has an outstanding loan of $400,000 at 6% interest.

Selling now for $500,000 with projected close of escrow by April 30, 2010: $64,600 net at closing
Waiting until June 2010 when more foreclosures and short sales are expected to come on the market, the value of his home may be affected by as much as 10% or down to $475,000. Projected close of escrow 90 days: $61,873 net at closing

Interest rates and FHA down payment

Historically speaking, the current rates are still some of the lowest they've ever been in 40 years. See FreddieMac for a peek at 30-year rates since 1971.

Interest rates may rise by 1 - 2% by next year. A concern for increasing rates may effect renewed interest in buying property, coupled by a desire to meet the tax credit deadlines.
When interest rates rise, this may affect the buyers' ability to qualify for a loan if the monthly mortgage payments based on the higher interest rates are higher than what their current income level can support. It is important to relate the cost of buying a home --- if prices decrease by 10%, but the interest rate increases by 1% --- how will that affect your monthly payment? Assume 30-year mortgage with 20% down payment , in Oakland CA
- $500,000 purchase price at 5% interest rate: $2,814/month
- Reduced purchase price by 10% or $475K, with increased interest rate to 6%: $2,912/month, or $98 higher

Now, about that FHA down payment....

Keep your eye on this bill H.R. 3706 that proposes increasing down payment for FHA insured mortgages from 3.5% to 5%. Reactions are mixed regarding the pros and cons of this bill and what its effect will be (more bailout?) and how it will affect buyers (more difficult to qualify to buy).

According to Wall Street Journal, the agency opposes this bill. David Stevens, the commissioner of the FHA, warned that "the biggest mistake" the agency could make is to "overcorrect."

Can one say information overload? Political intervention and interference? Who do we believe? What can we expect?

Will you let an unhappy seller out of the listing agreement?

Tue, 10 Nov 2009 22:41:18 -0600

Is it ever a good idea to simply let go of an unhappy and dissatisfied seller?

I can't remember where I first saw it, or heard about it. But I know that since I've become a realtor, I have always offered a no hassle, easy exit guarantee on my listing agreements. I figured that if someone is not satisfied with the service I provide, it is best to let go of the client and part on amicable terms.

If you google "easy exit guarantee" you will see a ton of realtors and agencies who subscribe to this principle.

But not everyone agrees.

UNHAPPY SELLER

An unhappy seller had posted her concerns about her agent who reduced on the MLS the list price on her property without her knowledge. Many realtors and brokers who responded said the same thing: that the agent shouldn't have made that change without her knowledge and written consent.

Thereupon she wrote to the broker that she wants to terminate the agreement. She included many other reasons for her dissatisfaction.

BROKER SCOLDS SELLER VIA EMAIL

The broker, instead of making a phone call or asking to meet with the seller, responded via email, starting off with....

"You personally have been extremely detrimental to your agent's efforts...."

The broker provided his own view of what has transpired as a rebuttal to the seller's complaints. He itemized examples of what he thought the owner had done or refused to do.

Then he ends it by saying he will not release the seller from the contract. And that if the seller lists the property with another agent, they will file a claim for full commission on any sale of the property.

Is this the way to build a bridge to a client base?

EMAIL IS FOREVER

The Seller is incensed. She told the broker that his assertions are incorrect.

She may wait until the listing agreement period is expires. But the damage is done. She is on the warpath and is planning to file complaints against the broker and the agent. She is also spreading the word. She is bound and determined not to let this go, invoking the power of the internet and all that.....

Is it worth winning the battle but lose the war? How would you handle it?

"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.