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Economic Sea Change

TheBayBlog — Mon, 08 Sep 2008 17:10:24 +0000

Good Article at Transparent Real Estate blog,

“With all the doom in the markets, it’s essential to get a bird’s eye reading of economic conditions when expectations suddenly change. A minority of economists and pundits timed this summer’s oil price crash correctly. The flux in all markets – stocks, housing, financial, political – will be with us for the foreseeable future, so I would expect by the November 4 election, there will be a completely different set of market perceptions.” Click Here for Complete Article

Every House’s Value is Dropping Except Mine!

TheBayBlog — Sun, 31 Aug 2008 21:08:20 +0000

Every House’s Value is Dropping Except Mine!
By: Zillow Blog, Amy Bohutinsky, VP, Communications | August 6, 2008

It’s a topic dominating the headlines, news shows and the race for president. You’d have to be living under a rock to not know the housing market is in distress and home values are dropping…. right?

Apparently not – at least when it comes to our own homes. Today Zillow released our Q2 Homeowner Confidence Survey — asking more than 1,300 U.S. homeowners their perception of their own home’s current value, as well as what they think will happen with their home and local market in the coming 6 months. The results were eye-opening, to say the least…
Full Article

Video - Fed to Curb Shady Home-Lending Practices

TheBayBlog — Wed, 09 Jul 2008 01:26:36 +0000

From Yahoo News. Click Here to Watch

620 Park Ave, San Carlos

TheBayBlog — Wed, 09 Jul 2008 01:09:51 +0000

Located in the heart of White Oaks, this home shows extremely well and has an excellent floor plan. Priced at $1,319,000 with four bedrooms, two baths and 2000 sqft of living area – This home will not last long. Jump on it! Listing agent is Tom Neel of Coldwell Banker-Burlingame. Click Here for More Info

Sold in 10 Days or Less

TheBayBlog — Fri, 20 Jun 2008 17:55:23 +0000

You probably read yesterday’s article in the Chronicle, Slowest Bay Area home sales in 20 years reported in May. The Mid-Peninsula tells a different story – since May 1st, 69 homes have Sold in 10 Days or Less. Buyers are out in full force and competitive pricing relative to the competition will get it sold. Click on the city to view the homes.

San Carlos – 7 Homes

Redwood City -11 Homes

They’ve set an Offer Date, Now What?

TheBayBlog — Wed, 04 Jun 2008 02:25:56 +0000

This is the classic way to entice a multiple offer situation and get top dollar for popular homes. If you want to play the game, here are a few strategies to consider.

1) You really want to win the game. From this position price is usually the deciding factor. First check with the listing agent to see how many disclosures have gone out. Next, find out how many offers are confirmed to be presented along with yours on the offer date and how many are circling but not fully committed. Use the number of disclosure packets that have gone out as a verification for what the listing agent is telling you. From here we can use a general math rule of thumb. I recommend that you add to the asking price 2% for each offer confirmed and 1% for each offer circling but not yet confirmed. For example, if the property is asking $1,000,000 and we have 2 offers confirmed and 1 circling, then add 5% to the asking as your purchase price. In this case, $1,050,000 is our offer’s purchase price. In addition to purchase price, make sure your terms are strong and uncomplicated and that all disclosures have been reviewed and signed prior to presenting the offer. Uncomplicated terms include: a short but doable contingency period for financing and inspections, no other contingencies like the sale of your current home, a quick close that works for the seller (30 days is typical), liquidated damages signed, as-is addendum signed. Strong terms include: a deposit of 3% due upon acceptance, include a copy of your deposit check, a large downpayment of 20% or more is ideal, a pre-approval letter and verified commitment from your lender that you can close in the time period specified. This strategy should get you in the game and possible have you as the winner once all offers have been considered.

2) You want to make an offer but not break the bank. With this strategy make sure price is competitive, refer to the strategy above and then find the middle ground from asking to top dollar offer. Again terms are still important, keep them uncomplicated and strong as possible as described above in our first scenario. Sometimes you may not be the top dollar offer but your terms are more compelling that the other offers. In this case, you’re most likely to be countered on price. Try to stay within your bounds and stick with your game plan. You just might be the winner without breaking the bank.

Lastly, have your agent bring an extra page one from the purchase contract that is blank, no price filled in, just signed. This is for just in case your agent finds out at the last minute that not as many offers as predicted came to the table. Your agent can change the price prior to submitting the offer and this could prove to be a brilliant move.

909 Elm Street, San Carlos

TheBayBlog — Mon, 05 May 2008 23:41:21 +0000

Check out the other recent sales on Elm Street then take a look at this house. Totally remodeled a few years ago inside and out. Great house, walk to downtown. Listed by Mary J. McCarthy of Cashin.
Click Here .

Market Conditions – The Real Story

TheBayBlog — Mon, 05 May 2008 23:13:10 +0000

Don’t believe everything you read in the paper, the real estate market may not have reached bottom but in general the market on the Peninsula is still good. If your home is in good condition, priced right, and in a desirable area it will sell. It will just take longer and you may not get what your neighbor did in 2005.

Inventory levels for the Q1 of 2008 are up about 66% vs. Q1 of 2007. This is for what we consider the core cities of the Peninsula, from Daly City to Menlo Park, including the coast. The areas with the highest inventory in general are those with the largest number of lower priced homes. With tighter lending standards the pool of buyer’s that fueled the market in these areas, first time home buyers, has now been reduced dramatically.

The average sale price for Q1 of 2007 vs. 2008 varies widely but the same patterns hold true. Places like Daly City, San Bruno, South San Francisco and Pacifica have seen fairly dramatic decreases. On the other hand, Burlingame, San Carlos, Redwood City and Menlo Park ,to name a few, have all seen increases in their average sales price. What you read in the paper does not usually provide enough detail to tell the true story.

We recommend the Warren Buffet strategy. Buy and hold. Buy in a desirable area, at a reasonable price, and stick around awhile. If you’re in the market to flip, speculate, or for the short term then you might face some challenges.

Support Local Business

TheBayBlog — Sun, 04 May 2008 00:20:29 +0000

Support Local Business

Before you buy that double tall no foam latte from Starbucks maybe consider the local coffee shop. In the age of global commerce it’s really more important than ever to support the local guy. The Small Business Administration (SBA) has announced the top 10 reasons to love small business, what the SBA’s Office of Advocacy calls “the heart of the American economy.” Here are few:

The latest figures show that small businesses create 75 percent of the net new jobs in our economy.
Small businesses employ about 50 percent of all private sector workers.
Small businesses make up 97 percent of exporters and produce 29 percent of all export value.
Small businesses create more than 50 percent of the non-farm private gross domestic product (GDP).
The 22.9 million small businesses in the United States are located in virtually every neighborhood.

These are the people the live and work in your community. Their kids go to school with your kids. As well as the economic benefits there are also a lot of environmental benefits to the “think global, act local” mantra. So support the local guy. We’ll see you in the neighborhood.

1277 Greenwood Ave, San Carlos

TheBayBlog — Fri, 02 May 2008 04:02:24 +0000

Westside El Camino in SCL, half block from Laurel Street. $699K on standard lot. Can’t find any cheaper. Listed by Patricia Peterson of CWB

Brookings Institute Report: Bring More Competition to Real Estate Brokerage

TheBayBlog — Thu, 01 May 2008 17:29:09 +0000

Great read with snippets below, full article link at bottom:

“We find that the traditional model for residential real estate brokerage services may be dated, and could be improved substantially with some public policy interventions that spur innovation.”

“The Internet has the potential to significantly reduce the costs of buying or selling a house as well as increase the value of real estate services.”

“… some conclude that a form of price fixing, or at least informal collusion, keeps fees at an above-competitive level. This, in turn, could result in losses to consumers.”

Click here for the full article

113 Woodland Dr, SM

TheBayBlog — Thu, 01 May 2008 04:39:39 +0000

A lot of house, with a lot of updating, in a great neighborhood. Listed by Karen Thut of Keller Williams

518 Grand Street, RWC

TheBayBlog — Thu, 01 May 2008 04:18:21 +0000

A 3/2 in Mt. Carmel for $850,000. Enough said…Listed by Julie Geyer of Carlmont Assoc.

194 Nevada St, Redwood City

TheBayBlog — Mon, 02 Jun 2008 20:26:07 +0000

Looking for a great home in Mt Carmel? Look no further. Attractively priced at $1,198,500 this 3 bedroom, 2 bath boasts 1850sqft of completely remodeled living space. Huge detached office/rec room.

880 La Mesa Drive, Portola Valley

TheBayBlog — Sun, 25 May 2008 21:35:23 +0000

Portola Valley, nice lot, remodeled house. Hard to find the combination large house and lot, plus a totally remodeled property. Listed by Celeste Henzel of Coldwell Banker.

Is The Housing Crisis Over ?

TheBayBlog — Thu, 22 May 2008 23:04:51 +0000

The answer is….I don’t know. A recent article in the Wall Street Journal has an interesting perspective on the current state of the housing market The Housing Crisis Is Over . While our crystal ball is a little fuzzier the market has shown signs of life lately. Even the SF Chronicle had a semi-positive article today Home Sales See First Monthly Gain... It’s not often that the Chronicle prints something other than “mortgage meltdown” under their leading real estate story. That writer has probably been fired because they didn’t read the internal memo entitled “Bad News Sells”.

Let’s face it everyday we read about more bad news than good. Oil is on its way to $200/barrel, consumer confidence is in the toilet, lenders are going belly up…so what should the average home owner do if they’re thinking about selling? Everyone’s situation is different but generally if you’re selling and buying in the same market you’ll be fine. You can’t have it both ways. You can’t sell high and buy low unless you’re moving to Omaha or maybe Modesto. If you’re staying in the same area and just trading up, the house you’re selling will be worth less but so will the house you’re buying. If you’re moving from let’s say San Mateo to Livermore you’ll do great. San Mateo homes prices may have fallen but Livermore prices are even softer.

There is no “one size fits all” answer to everyone’s real estate needs. Every market is different. There are actually different markets within certain cities as you move around The Bay. The real estate market from San Francisco to San Jose is a lot like the weather. There are micro climates and micro real estate markets.

So whether the housing crisis is over is really a tough call. If you make the right decisions and you’re buying or selling for the right reasons it really doesn’t matter. So the next time someone tells you it’s a bad time to sell or buy ask them where they bought their crystal ball then pick one up for me.

Sold in 20 Days or Less

TheBayBlog — Thu, 22 May 2008 20:36:00 +0000

Here is an interesting report of homes that recently sold in 20 Days or Less. Why did these homes sell so fast? In this market it’s all about the price point, the competition and the location. But the big motivator is the price. Buyers are looking for a discount in a down market. Competitive pricing relative to the competition will get it sold. Click on the city to view the homes.

San Carlos – 14 Homes

Redwood City -18 Homes

Belmont – 15 Homes

Menlo Park – 23 Homes

Palo Alto – 15 Homes

San Mateo – 27 Homes

Burlingame – 10 Homes

708 29th Ave, San Mateo

TheBayBlog — Thu, 22 May 2008 00:22:00 +0000

This is exceptional value in San Mateo, 2419sqft, 3 bedrooms with office off the master, 2.5 baths and a 6930sqft level lot. Recent remodel and new roof. All this for $1,199,000. Listed by Fred Eftekari of Remax.

1959 Fernside, Redwood City

TheBayBlog — Wed, 21 May 2008 04:24:54 +0000

Wow, what a house. Great space and a fantastic layout for the money. You won’t find a better quality house at this price. Three car garage, guest unit, 3847 s/f, all for under $1.5MM. And you can sneak into the Menlo Country Club for a quick nine. Jump on this one… Listed by Sabine Dillion of Coldwell Banker.

Peninsula Home Inventory Levels May 2008

TheBayBlog — Tue, 06 May 2008 04:24:25 +0000

San Carlos

58 Active

30 Pending

57 Average Days on Market

Redwood City

219 Active

80 Pending

93 Average Days on Market

Belmont

50 Active

23 Pending

63 Average Days on Market

San Mateo

167 Active

60 Pending

72 Average Days on Market

Burlingame

44 Active

28 Pending

65 Average Days on Market

Palo Alto

59 Active

38 Pending

60 Average Days on Market