Bay Area Beacon

Share your home-buying story & you could win a Lowe’s gift card

2011-11-06T12:07:00.000-08:00

Earlier this year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) launched “California REALTORS®. Champions of Home.” a testimonial-based advertising campaign that shows real California home buyers and sellers sharing off-the-cuff, from-the-heart stories about how their REALTOR® helped them achieve the dream of homeownership.

As part of its consumer advertising campaign (C.A.R.) is asking consumers to record and post a video testimonial talking about how homeownership has changed their lives and how their REALTOR® was their champion of home. Best of all, four videos will be selected to win $500 gift cards to Lowe’s.

Participation is easy and fun:
1. Login to your Facebook account
2. “Like” the C.A.R. Facebook page at www.facebook.com/carealtors
3. Go to the “Stories of Home” tab on the left-hand side
4. Start recording a video

The contest runs through Nov. 30, 2011.

For more information about the 2011 CALIFORNIA ASSOICATION OF REALTORS® consumer advertising campaign, visit www.car.org/aboutus/adcampaign.

Fraud Alert: Five Steps to Avoiding Fraud

2011-10-12T18:58:00.000-07:00

As financial scams evolve to keep pace with the changing American economy, it is important that consumers educate themselves about common scams. Here are five steps consumers can take to avoid becoming a victim of financial fraud.
1. Research: Before handing over money, look into who is receiving it. Go online to see what others are saying about a company. If a caller claims to be a relative, ask him or her a few questions that only a relative would know.
2. Conduct Due Diligence: Due diligence is especially important when working with someone claiming to be a lawyer, as they may not be. According to the FTC, the first question a person should ask is “Are you a lawyer,” to ensure you are entering into an attorney-client relationship.
3. Protect Personal Information: When entering personal information online, such as your name, date of birth, and/or social security number, even if it’s to confirm your identity, consumers should ask themselves how much they trust the website. Even a transaction that appears to be low risk can make you vulnerable.
4. Use a Certified Housing Counselor: Homeowners having trouble making mortgage payments are advised to speak with a certified housing counselor, who usually charges only a minimal fee, or, in many cases, are free. Counselors approved by HUD can be found at http://www.makinghomeaffordable.gov/get-assistance/counselor/Pages/default.aspx
5. File a Complaint: If you do become a victim of fraud, file a complaint to make the problem known. The FTC says that consumer complaints are how they know what’s going on in the marketplace. Consumers can file complaints with the FTC, the Better Business Bureau, the FBI, the Internet Crime Complaint Center, or the state’s attorney general’s office.

Baby Boomers & the Millennials to Save Us?

2011-06-09T19:16:00.000-07:00

The recovery of the housing market might be relying on two generations, according to Harvard University's state of the nation housing report, released on Monday. These two are the Baby Boomers (born sometime after World War II), and their children - the Generation Y, born between 1982-2000 (depending who you ask). Generation Y are also known as the Millennial Generation (or Millennials). This article outlines the full story.

Some Find it Pays to Walk Away

2011-06-09T19:05:00.000-07:00

As a Realtor, I'm constantly hearing about people who walked away from their home that was "under water," even though their income didn't go down and their mortgage was on a fixed rate. My first thought is always "oh no, another REO killing the home values." In some neighborhoods that is exactly what is happening, and rampantly. In others, the home prices are staying strong. (Great example: Cupertino!) Then my second thought is, why? You aren't being asked to pay more or facing losing your job. Well here is an interesting article that outlines why people are walking away, and why it actually works out for the best for some people. In fact, while their FICO scores plummet initially, it doesn't seem to drag on for too long.

Home Owner Forecloses on Bank of America!

2011-06-09T10:20:00.000-07:00

I know I shouldn't gloat, but this story is so good! Finally a home owner fights back the big mean bank, and WINS! How great is that? I know many people personally who have gone through the pain of foreclosure, and how insensitive the banks have been in these dealings. So when I saw this article, I had a little skip in my heart of joy! Read the article, I think you will enjoy it too!

Renting vs. Selling Your Home

2011-05-09T15:54:00.000-07:00

I thought this was an interesting article written for California Association of Realtors regarding a Q&A story on renting vs. selling your home...

Q: Although we have our home up for sale, we have so many people interested in renting that we are considering taking it off the market to have it rented, as we need to have monies coming in to cover the mortgage.

We had it on the market in 2008, and took it off and rented it for a while then. When we relisted it last year, we listed it at $50,000 less than we had it listed for in 2008. I am anticipating that the market will get better if we take it off and rent it now and then sell it at a later date. Do you see this happening?

This Q&A scenario is actually timely for me as this was a decision I recently faced with my own house, since I'm getting married this year. I wondered allowed: "should I rent if for another year, as renters seem quite interested and willing to pay more than ever before?" I'll let you know what I decided after you read the answer below.

A: There is no way to know whether selling later will ensure a higher sales price, especially in the fairly near term. If you were planning to rent the place out for 10 years, it's possible that it'd be easier to sell then. But next year? The year after? No can do.

And frankly, even in the five- to seven-year time frame, massive shifts that are currently in the works in the mortgage market (namely, the elimination of Fannie Mae and Freddie Mac) may narrow the availability of home ownership, so that many fewer Americans are even able to own homes. By that token, it could also be more difficult to sell your place then. No one knows for sure.

What most everyone does know, or believe, is that the recovery of home prices from their current levels will undoubtedly be spotty and slow nationally. As with everything in the local realm of real estate, urban and suburban, Midwestern and Southern, coastal and non-coastal markets were all impacted differently by the housing crisis -- and are all recovering (or not) at different rates. By this token, the answer to the question will depend heavily upon where exactly you live.

It does seem that areas with positive net population growth, strong job markets and home values that are affordable for a high proportion of local households will suffer less of a hit to home values in the long run, but these also tend to be areas where appreciation is generally slow and steady.

If your area has been overbuilt, has been hit very hard by the foreclosure crisis, and/or has a high rate of unemployment/low rate of projected job growth going forward, your home's value could take a long time to recover, and may get worse before it gets better. I urge you to talk with several local real estate pros to get their sense for what sort of market yours is.

Timing the market accurately with precision -- especially this market, which has been and will continue to be manipulated by governmental forces, for better or for worse -- is an extremely difficult thing to do. So don't. Or try not to, anyway.

In 2008, you probably thought that if you rented the place out for a year or two, the market would come back and you'd be back in business. Well, that time has come, and you still aren't able to sell it -- even listed $50,000 lower! It is possible that you'd have the same result next go 'round.

The better strategy here is to stop trying to use the market to drive your decisions. Get clear on your priorities, and use them to drive your decisions, given what you know about the market.

If closure, avoiding throwing good money after bad, and being able to move forward in life without the lingering obligations associated with the place is what you're after, consider doing what it will take to offload it now, even getting advice from an attorney and tax adviser about all your options, including short sale and a deed-in-lieu of foreclosure.

If closure is less of a concern and you are able to move onto your next home without getting this one sold, and your absolute priority is getting top dollar for the property, then you might consider selling it with seller financing like a wraparound trust deed at an above-market price and interest rate to a buyer who is cash-flush but may be credit- or down-payment-impaired.

You might also consider leasing your place on a lease-option, charging a premium rent (if possible) and securing a tenant who would like to own the place in a couple of years.

Tara-Nicholle Nelson is an author and the Consumer Ambassador and Educator for Trulia.com.

I decided to list to sell my home. This is a personal choice for everyone, based on their financial and personal situations, job, family, etc. I didn't need to sell my house, but I based my decision on the following factors:

Firstly, after researching possible rental properties in different California cities, I decided the equity could be better used on income properties, (rather than just covering my outgoing expenses).
Next, since my home was always intended to be owner-occupied and I had it completely remodeled throughout, with updated and designer appliances and features, I wanted to be sure to sell it while those improvements were still new.
Then, I spoke with my own Tax Adviser about potential pitfalls I may face in selling a once owner-occupied, now rented home, and focused on preserving my $250,000 Capital Gains Tax Exemption for a single person ($500,000 for married couples). Note: always consult a tax professional with any tax-related questions!
Finally, I was concerned about changes in the mortgage industry which may affect my potential buyers' buying power in the future years to come. These are all things to way in on your decision. So my home is going on the market on Wednesday, May 11th!

Trulia Report on Rent vs. Buy

2011-05-09T15:19:00.000-07:00

The latest Rent vs. Buy Index by Trulia shows that buying a two-bedroom apartment, condominium, or townhouse is more affordable than renting in 80 percent of the 50 largest cities in the U.S. Only in New York, Fort Worth, and Kansas City was renting a less costly option compared with buying.

Key findings include:

Current market conditions consisting of steadily rising rents, falling home prices and low mortgage rates have tipped the rent versus buy scale in favor of homeownership.
Price:Rent ratios in Fresno, Omaha, and San Jose experienced the largest quarter-over-quarter movement in favor of homeownership.
Aspiring homeowners in Los Angeles, Seattle, Boston, San Francisco, Portland, and Oakland face a bigger challenge when it comes to deciding between renting and buying a home. The cost of homeownership in these coastal cities continues to be more expensive than renting; however, it may make more financial sense to buy depending on the situation.

See the full report here.

Upside Down on Your Mortgage?

2011-02-16T16:36:00.000-08:00

Many people find themselves in this condition at present, and find themselves distraught over the looming threat of foreclosure. Here are some steps that you can take to avoid foreclosure and get out of this stressful situation:

Find a Realtor you can trust to list your home as a Short Sale.
Be prepared to slash your asking price to attract multiple buyers.
Negotiate with the lender to accept the price, even if it doesn't cover the entire mortgage balance.
If you have good enough credit, you can sell the home that's under water and use the proceeds and a new loan to buy a smaller and more affordable property.
If you have a few dings on your credit report, consider contacting a Mortgage Specialist who can help you with repairing your credit, so that you can get your scores up and later qualify for a new loan, loan modification or refinance.
Whether your credit is good or bad, it is certainly a good idea to cut back on discretionary spending. Enjoy "Staycations" with the family, practice what you've learned from cooking shows, what a Netflix movie.

If you haven't lost your job, there is no reason you should just walk away from paying your mortgage and go into foreclosure, ruining your credit for when you are later ready to get back into the housing market.

3 HUD Videos Explaining Home Buying Process

2010-12-03T16:00:00.000-08:00

Let's face it, the home buying process has gotten quite complicated, with all the new rules and regulations. Therefore, I'd like to share three videos created by HUD (department of Housing and Urban Development) that explain the home buying process in clear and easy to understand language to home buyers.

Reminder: Take Advantage of State & Federal Tax Credits!

2010-10-28T12:04:00.000-07:00

Two more great opportunities for home buyers are also due to expire on December 31, 2010 - to help stimulate home sales, both the federal and state governments are offering tax credits for Californians purchasing their piece of the American dream. The Federal government is offering up to $8,000 for first-time home buyers and $6,500 for long-time residents. The state of California is also offering up to $10,000 for first-time home buyers or buyers of properties that have never been occupied. Here’s a handy summary of the two tax credit laws.

Free Workshop for Home Buyers!

2010-10-22T15:39:00.001-07:00

The California Department of Real Estate has partnered with the California Community College Real Estate Education Center & San Jose City College to present "Financial Sense to White Picket Fence," a FREE workshop for agents and future home buyers, on Saturday, November 6, 9 a.m. to 2 p.m. (8 a.m. registration) at the San Jose City College Theater, 2100 Moorpark Avenue, San Jose.

This event is an opportunity for future home buyers to position themselves in today's housing market. You will learn about budgeting, saving, renting, home buying, loan options and maintaining a home for the long-term.

Limited Time Offer from Fannie Mae!

2010-10-21T14:32:00.000-07:00

Thinking about buying a bank owned (REO) property? I'd like to tell you about an exciting opportunity. For a limited time, Fannie Mae is offering home buyers 3.5% cash back in closing to help with closing costs on selected REO's. As you well know, Asante Agents offer cash rebates to buyers on regular home sales, but we don't offer them on short sales or REO's, so this is a great way to buy a bank owned home and get a cash bonus!

Buyers and selling agents must meet the following qualifications to be eligible for the incentive:

HomePath property sale must close on or before December 31, 2010 and close within 60 days of offer acceptance
Only owner occupants purchasing a HomePath property as their primary residence will receive up to 3.5% in closing cost assistance
Only selling agents representing owner occupants purchasing a HomePath property as their primary residence will receive a $1,500 bonus. To be eligible for the agent’s bonus, the initial offer must be submitted on or after September 23, close within 60 days of offer acceptance and close on or before December 31, 2010. No bonus will be given for investor purchases.
Buyers and selling agents must request incentive upon submission of initial offer in order to be eligible.

So log on to www.homepath.com today and search for an REO home, then call us and we'll help you negotiate and win a home!

REALTOR® Magazine-Daily News-Owner Financing Can Expedite Sales

2010-08-26T08:18:00.000-07:00

REALTOR® Magazine-Daily News-Owner Financing Can Expedite Sales

We Got Our Jabs for Whooping Cough!

2010-08-19T11:06:00.000-07:00

A lifelong needle phobic, I waited in cold sweats for the cheery Medical Technician to open the door to our room at Santa Clara Valley Medical Center. He took ages to return, and my fear swelled with every passing minute. I couldn't look at the door in case I might see the instruments of my terror: the injections with the Whooping Cough vaccine in them!

While we waited, I imagined I'm Mary, Queen of Scots, in the Tower awaiting my beheading. When the Medical Technician returned, I couldn't look at him; instead I focus on the wall in front of me, waiting for the attack. Before jabbing me, he laughs and jovially recounts a story from his military days.

As he gets started with the story, he begins swabbing my arm with the rubbing alcohol (a smell that's foreboding). He recalls walking through the halls of the Army enlisting office, whereupon he was assaulted by injections shooting simultaneously into both of his arms. Absolute horror. He survived Vietnam, the Gulf War and Bosnia. I can survive this shot!

Speaking of survival, my Mother had Whooping Cough when she was four months old. She was quarantined with her Mother for weeks. Back then there was no vaccine or cure and she was lucky to survive. Fast forward a few years to 2010 and the California Department of Public Health has declared an epidemic of Whooping Cough (Pertussis) in California. There have been 124 reported cases in Santa Clara County since January of this year. Six infants have died from it in California this year.

My brother and sister-in-law are expecting a baby (any day now!) We can't wait to meet the little Tyke (we don't know the sex of the baby - it is going to be a surprise).

So we have all gone out and gotten our jabs. Ouch. But it is well worth it. To find out if you should get your Whooping (pronounced "Hooping") Cough vaccine, visit: http://www.sccgov.org/portal/site/phd/

Cool New Online Tool: Mapquest's Route Planner

2010-08-18T12:04:00.000-07:00

I am a devout Google Search Engine user, have been for quite some time. As a Corporate Recruiter in my former life, I used that site exhaustively, creating boolean searches to find niche candidates for the High Tech and Biotech industries. I have always preferred Google over Mapquest for driving directions too, until now...

Introducing Mapquest's new Route Planner: http://new.mapquest.com/routeplanner !

It is so cool, you can enter multiple addresses into the trip planner, then click to sort either the shortest route by distance or the fastest route by roads/traffic. You can also select the options of avoiding: highways, seasonal roads, ferries, toll roads, country borders and timed restrictions.

This is an excellent tool for Realtors, who need to view multiple properties in one trip, but pretty much anyone can probably fall in with this tool: salespeople, people searching for homes to rent or buy, getting to know a new neighborhood. Got several parties to go to this Friday night: go ahead and give it a test drive!

Saratoga-Los Gatos Assistance League Presents "Rent A Man" Fundraiser!

2010-08-12T11:32:00.000-07:00

Saratoga-Los Gatos Assistance League, which is responsible for many volunteer efforts for the local community is hosting its annual "Rent A Man" fundraiser! Contact us now to put you in touch with our good friend, Jillian Ring, an active member of the league. Hurry, she's selling tickets fast! Here are the details:

When: Saturday, September 11, 2010

Where: The Saratoga Retirement Community

Located on 14500 Fruitvale Ave., Saratoga

Time: 5-9 p.m.

Tickets: $75 Per Person

At $75 per person, you will enjoy a wonderful evening filled with entertainment, wine/cocktails, food stations, and live and silent auctions where you'll be able to bid on amazing deals, including: Private Chef's Parties, Private Pilots, Get-Aways, Wining & Dining plus much more! Please email for further information!

REALTOR® Magazine-Daily News-NAR: Home Prices Are Firming

2010-08-12T11:22:00.001-07:00

REALTOR® Magazine-Daily News-NAR: Home Prices Are Firming

REALTOR® Magazine-Daily News-NAR: Homeownership, Stable Communities Linked

2010-08-12T11:22:00.000-07:00

REALTOR® Magazine-Daily News-NAR: Homeownership, Stable Communities Linked

Welcome to The Burgess Team blog!

2010-08-10T10:20:00.000-07:00

We called it the "Bay Area Beacon" because we'd like to be that beacon in the storm of information and misinformation that is out there in abundance. The goal of this site is to keep our clients informed of the latest real estate news as it pertains to the San Francisco South Bay Area. It is also a place for us to share opinions and let you know about local events, neighborhood profiles, featured properties, loan resources, real estate sales data, and much, much more! We welcome your feedback and hope that you will share your personal experiences and opinions with us and our readers.