Let's Talk South County Homes

Monday Morning Update

2009-08-04T07:45:00.000-07:00

Beware of Loan Modification Programs

2009-07-23T08:21:00.000-07:00

The Department of Real Estate recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish. Last July, the DRE had fewer than 10 complaints involving loan modification companies but today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 desist and refrain orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.

It is worth noting that not all firms who collect advance fees for loan modifications services do so illegally the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.

C.A.R. advises members to carefully look at any program that may appear to have a government seal. C.A.R. is not aware of any government programs that have exclusive areas for which you have to pay to participate, and cautions all members to be on the alert for schemes seeking funds from Realtors or consumers with no value, or that may be misleading or unlawful.

The above information was provided by the California Association of Realtors web page.

My 2 Cents - Almost (but not really) unbelievable that there are so many people taking advantage of people who are already financially down but there it is. Check it out on line, with the DRE or with a trusted Realtor before you give away your financial information or money to someone you don't know. Use caution and common sense and get help from a trusted source.

New Bank Owned Property in Gilroy

2009-07-22T07:43:00.001-07:00

750 Carla Way

What a great price - $289,900 for a spacious 2 story home with 1924 square feet, 4 bedrooms, 2 1/2 baths and located on a spacious lot with 7200 square feet. Home is older, 44 years old and needs some tlc but has potential. Has some of the charm of an older home with hardwood floors inside and covered patio outside. Located over by the Las Animas Park, this bank owned property should move quickly.

My 2 cents - Be aware that banks often add their own contract to the transaction which puts some of the terms in their favor and goes back to the era of 'buyer beware'. Often this means contingencies are removed automatically and any extension of close of escrow ends up costing the buyer. Read the fine print!

Leslie Appleton-Young speaks to Realtors

2009-07-21T09:29:00.001-07:00

Chief Economist for the California Association of Realtors Speaks Out

Leslie presented results from her recent survey of California homebuyers and sellers. Here are some of the highlights, insights that might aid you in your own decision making in navigating through the market:

1) Many of today's buyers and sellers are real estate rookies - 38% of buyers surveyed in 2009 were first-timers. That's up from 12% in 2002 and a historic high. 44% of sellers in 2009 were first-timers. That's a lot of people that have never been through a transaction. If you're anxious or confused about something, chances are the people on the other side of the deal are too. Be patient and recognize both sides are working toward the same goal of a closed transaction.

2) The market may be stabilizing, but buyer and seller expectations are far from matched. 70% of buyers surveyed in 2009 reported making one or more offers before closing on a property. 47% of buyers who had transactions fall apart cited seller unwillingness to accept comprises as the reason. If you're a seller this is yet another sign that buyers are out there - if you price right.

3) Buyers are not using the newspaper. Only 12% of buyers surveyed in 2009 used the newspaper to find their home. Moreover, a strong marketing plan ranked as the #1 reason sellers cited for choosing their agent. If you're a seller, don't get hung up on having your home in the paper - it's unlikely to make any impact on the sale of your home - but do make sure an agent has online bases covered.

My 2 cents - This market is still not quite settled back into balance at the same time the very nature of how homes are marketed and how consumers find them is changing. Keep an open mind and look toward a more efficient marketplace in the future.

Stay posted!

Monday Morning Statistics

2009-07-20T07:43:00.000-07:00

New Bank Owned Property on the Market in Morgan Hill

2009-07-18T10:59:00.000-07:00

New Listing located at 955 Barrett Avenue in Morgan Hill

I don't usually include maps of properties but this one is important as you can see because of the location of the house to the freeway. We all discovered in our current market, Buyers are not so forgiving of freeway noise, high tension wires or anything that makes a home less than perfect. So what might be a good deal at the moment could turn into a problem later on down the road when you decide to sell. This is a 5 bedroom, 3 bath home with 1673 square feet located on a 4356 square foot lot and is only 3 years old. Pretty home in a new neighborhood but make sure you plan on living in this area for a long time or the price of $424,900 might not seem like such a good buy. Also, check out the schools in terms of where this home is located as Buyers are also very concerned with schools and their scores.

My 2 cents - Make sure you are factoring in resale later on down the line to make sure you are getting what you want now as well as a home that will allow you to make movement in your life later on down the line.

Relocating due to new job?

2009-07-17T08:04:00.000-07:00

How to make a good decision about buying a home in a new area...

With the current economic situation , many home buyers have emerged as well as people relocating for new jobs. Finding the right home which also has the best chance of holding or increasing it's value can be challenging. There has been some study about areas where homes retain their values best in tough times and what factors they have in common.

For example, working with Realtors who are experienced and knowledgeable about an area can help with a good decision. Living closer to an urban area (i.e. where the jobs are) can increase the value of a home. Long commutes with high gas bills not only take their toll on homeowners but studies have found that prices have depreciated almost double compared to areas located closer to where the jobs are located.

Towns where zoning regulations make it more difficult to build have experienced smaller price declines than towns that experienced huge building booms in recent times. "Prices are more likely to go higher if you can't expand supply," says Danie McCue, research analyst the Harvard University Joint Center for Housing Studies. Towns nestled against barriers such as large lakes or protected wetlands also usually limit expansion.

Buyers can call towns or county planning offices and ask how many acres of vacant land are in town, how much of it is zoned for residences and the maximum number of homes that can be built. Requesting a copy of the town's master plan also should tell buyers how much the housing stock is set to expand in the next 10 years.

Homes in towns with stores, banks, and movie theaters are more likely to hold value than those that are nearly all residential, as people like to live near these services and jobs and provide the town a stronger tax base to fund public service items.

My 2 cents - Do your homework and find a realtor you can trust!

New Bank Listing in Gilroy

2009-07-16T08:41:00.000-07:00

6320 Berrybush Court, Gilroy

Not your typical REO home, good condition without needing a lot of work or TLC. Single story, valuted ceilings, open floor plan with ceiling fans and light fixtures. 3 full bathrooms, indoor laundry room, back yard with patio, hot tub, storage sheds and room for garden. Only 11 years old and good location on the west side of Gilroy, near Gavilan Colleage. This is a 4 bedroom, 3 bath home with 2045 square feet and located on a 6098 square foot lot. Should get offers soon and change status within the week but I will keep you posted.

Just for information purposes, four homes came on the market in Gilroy yesterday (and this was one of them). I did promise to keep you posted on my predictions and the home I wrote about last week at 17200 Birch Way in Morgan Hill did go under contract and is due to close the 15th of August. Stay tuned for updates!

Eagle Ridge Sale

2009-07-15T09:17:00.000-07:00

Sometimes Short Sales Actually Work!

This sale closed last week in Eagle Ridge and I was the Selling Agent for this transaction. My clients and I wrote the offer which was accepted by the Seller early February. I have to tell you it felt like forever, living through the process. The hardest aspect of a short sale is the unknown. Even when you have a listing agent who is working with you and upfront, you don't know what is going on with the lender and their behind the scenes. Or if anything at all is going on with the lender. From an agents perspective, you see an incredible lack of organization and precedent that everyone is struggling with. Waiting for a short sale to come together is an incredible act of faith on the part of everyone but especially the Buyers. The market in February was very different than it is now when we have to deal with limited inventory, competitive situations, rising interest rates, time running out on the $8000 tax credit. Back in February we were still trying to decide if the market had hit bottom.

I remember showing this property to my Buyers. At one point they discovered the balcony on the master suite and that is where I found them with their arms around each other looking out onto the green and the views. Something clicked for me and it just felt like we had found their home. Although we never cut our options off and continued to look at the market and available homes, we stayed in there and never let go of the dream. This one came true and I have very happy Buyers who just happen to be great people.

Short sales can be tough, on everyone. There are ways to evaluate the risk and whether it makes sense to continue in the process but there is still an element of unknown that has to be dealt with. I know it was mostly hard work but I also feel there was an element of luck which I am very grateful for. It's a great feeling to be able to make something work and have a happy ending.

My 2 cents - Look at your short sale situation and weigh the pros and cons. Who is your lender, how many loans are you dealing with, are the agents being aggressive in the process or passive, are people communicating, do the agents know what they are doing, do you have all the available information. And don't cut off your options. Play it straight but make sure you are playing it smart and keeping your options open.

138 Days Left on the $8000 Tax Credit!

2009-07-14T08:25:00.000-07:00

$8000 Tax Credit for Home Buyers

Unexpected, unusual and great to take advantage of is the $8000 tax credit. You are eligible if you are a first time homebuyer or have not owned a principal residence in the last three years. This is an $8000 gift from the federal government. If you qualify and buy a home while the program is available, you'll get $8000 back with your tax credit. If your adjusted gross income is more than $75,000 (or $150,000 for joint filers), then your credit will begin to shrink, depending upon your income. Also, the tax credit is for $8000 OR 10% of the sales price (if you buy a home worth less than $80,000 then you'll get a credit of 10% of that price).

There is a clock ticking on this credit. Your purchase has to be completed within January 1st, 2009 to November 30th, 2009. You will receive the tax credit after you buy your home. You can't use it for a down payment or other closing costs. But, for example, if you close on a house next month, you can file an amended tax return and get the $8000 right away. You do not have to wait until next year!

The tax credit is available for principal home purchases throughout the United States but is only for primary residences (not vacation property). The Administration and Congress created the tax credit to motivate buying and get the economy rolling again. Approximately 30 years ago during another economic downturn, the government offered $2000 tax credits and it helped get the economy back on tract at that time. An extra $8000 can really mean a lot to people all across the country.

P.S. Don't forget - allow 30 to 60 days to finalize your home purchase before the November 30th deadline.

Monday Statistics

2009-07-13T08:06:00.000-07:00

Monday Morning Update!

Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 157 active listings and 101 sale pendings

Gilroy has 132 active listings and 206 sale pendings

San Martin has 33 active listings and 15 sale pendings

Area 1 (all of the above) has 320 active listings and 322 sale pendings

Overall, last week our listing count increased while sale pendings decreased. I know two of my sales closed last week, one a home at Eagle Ridge in Gilroy (beautiful home on the golf course) and my La Bella listing in Morgan Hill. The Eagle Ridge transaction was a short sale which was accepted by the Seller in the beginning of February - it took 5 months to close! And my listing at 15665 La Bella Court (see photo) started out slow and then started to get multiple interest, which is indicative of any good listing right now. There is a lot of market activity right now and a lot of competition.

Stay tuned for regular updates!

New Bank Owned Property in Gilroy

2009-07-11T08:13:00.000-07:00

Seven year old home at 8801 Zinnia Street in Gilroy just came on the market. This home has 4 bedrooms, 3 baths and 1892 square feet, is located on a 5343 square foot lot and is an attached home. Photos show it in good condition both inside as well as out. The price is very attractive at $341,900 - this is a very competitive price range and a good price for this home. So we'll watch and see how fast the status changes to pending. This bank is requiring proof of the earnest money deposit as well as a preapproval letter from a lender but is not requiring a buyer to use their lending department (some banks want a buyer to be preapproved with them but can't insist someone uses their company). Most banks will include an addendum with terms that protect the bank and limit the rights of the buyer - make sure your read the fine print! It usually applies to timelines for the buyer to perform and clarifies the limited knowledge a bank would have about a property. Transactions with banks are often as-is but I am told it doesn't have to be that way. Most banks will pay for repairs, just not up front so it depends upon whether the listing agent has the ability to deal with getting the money ahead of time.

My 2 cents - Make sure you read that addendum and don't be so quick to give up your rights.

Update on Tenant Information

2009-07-10T09:12:00.000-07:00

C.A.R. Opposing Bill to Repeal Sunset on 60-Day Notice Requirement

Current law requires an owner of a residential dwelling to give at least 60-days' notice when tenants have been in occupancy more than 12 months, and at least 30 days' notice prior to terminations if any tenant or resident has resided in the dwelling for less than one year. SB 290 (Leno) would delete the January 1, 2010 sunset days on this 60-day notice mandate, which if left in place would repeal that requirement. C.A.R. continues to oppose SB 290 requesting amendments to require tenants to give the same 60 Days' notice that is currently required for residential rental property owners. SB 290 is currently pending on the Assembly Floor.

My 2 Cents - I think this is good information for landlords who need to be updated about the current laws. Stay tuned for more updates and changes regarding this law.

C.A.R.'s 2009 Survey of California Home Buyers

2009-07-09T09:34:00.000-07:00

Favorable home prices, record-low interest rates, and the belief that rates will rise in the near future were the primary motivators leading home buyers to purchase in 2009 compared with last year, according to C.A.R.'s '2009 Survey of California Home Buyers' released this week. Sixty-eight percent of buyers said price decreases motivated them to buy a home, while 39 percent reported low interest rates helped them move to a better location. Twenty-three percent claimed the likelihood that rates will move up as the motivating factor.

"After back-to-back years of sharp declines, home sales in California rebounded in 2008 and early 2009," said C.A.R. President James Liptak. "The increase reflected the combination of favorable prices, low mortgage rates and home buyer tax credits, fueled primarily by sales of distressed properties that accounted for more than half of the state's transactions. Housing affordability has improved dramatically in response to the decline in home prices along with historically low mortgage rates, creating a tremendous opportunity for home buyers in California."

Forty-nine percent of all buyers purchased a home through a traditional market sale, while 38 percent purchased a REO/bank-owned property, according to the survey. Reflecting the difficulty in closing short sales -- properties selling for less than the loan amount -- only 13 percent of buyers purchased a short-sale property. Home buyers who purchased a REO or bank-owned property experienced the highest level of difficulty in obtaining financing, compared with a more traditional transaction. They rated the level of difficulty as 8.9 (on a scale of 1 to 10 representing the greatest level of difficulty in obtaining financing) compared with a 7.7 for home buyers with a traditional market sale and 7.6 for short-sale home buyers.

My 2 Cents - Thought this would be interesting information provided by C.A.R. although most of the above is not surprising. The 13 percent for short sale transactions does surprise me because of the volume of contracts written on short sales as opposed to the actual closed sales. Puts some perspective on the frustration of dealing with this kind of transaction.

Home Sweet Home

2009-07-08T08:05:00.000-07:00

Another New Morgan Hill Listing

This home is located at 17200 Birch Way in Morgan Hill which is over in the Greenleaf subdivision. 3 Bedrooms, 2 Baths with 1220 Square Feet on a 7020 Square Foot lot. Looks like a cute, modest home with good use of the backyard, large rear yard with pergola and lawn. Home has pride of ownership, dual pane windows and tile floors and is located in the Nordstrom attendance area (careful of this - location doesn't always guarantee placement). Worth checking out but seems a little high compared to the listing at 155 Foothill Court which we looked at yesterday. Right now there are 108 homes under contract and pending close, healthy amount of buyer activity. I'll keep you posted on these homes and let you know when they sell. This is the price range that is moving right now as entry level buyers have opportunities due to lower prices and great interest rates (even with the recent increases) along with some of the current loan programs and tax breaks.

New Listing in Morgan Hill

2009-07-07T14:15:00.000-07:00

New Listing at 155 Foothill Court in Morgan Hill

This 4 Bedroom, 2 Bath home looks cute with 1463 Square Feet on a 7440 Square Foot Lot. This is an older home of 46 years but has been well maintained and updated - hardwood floors, crown molding & base, ceiling fans, attic fan, remodeled bathrooms, wood burning fireplace, double paned windows, recessed lighting, newly covered patio, newly painted interior & exterior. This is a good price range for this market and sounds like it has been very well maintained. The only negative that I see right off is the location which is right by the cemetary which turns a lot of people off (but not all). I'll keep you posted and let you know how long it lasts on the market. Right now it's been on less than a week. Also, this is not bank owned or a short sale - which is a plus in this market.

Monday Morning Update!

2009-07-06T08:48:00.000-07:00

Short Sales Anonymous

2009-06-01T08:22:00.000-07:00

Hello, my name is Julie and I've been in a short sale since January...

Sometimes what is very obvious from the perspective of an agent, is not obvious at all to a Buyer. I recently experienced the isolation of my Buyers who are participating in short sales which feel as if they are going on forever. And some of them are.

I don't know exactly what it looks like from the Bank's perspective, but I suspect it's a system overwhelmed and overworked, hit hard by an avalanche of work without efficient systems to make sense of the work load. There are probably a lot of people getting blamed and repremanded for situations beyond their control, living under a daily barage of criticism and abuse. With all the public scrutiny, there is no time to say stop and let's take a breath and come up with better systems and solutions to this problem.

But from a Buyer's perspective, from someone who has written a contract and a sizeable check, made the commitment to buy that home and go through the transaction, it just doesn't make any sense at all, not only for how long a time it takes but the lack of communication which also feels like a lack of professionalism and just basic good manners. It's like being stood up for something really important or being in relationship by yourself.

I won't speak for the banks by any means as I am not in their shoes and do not know everything that goes on behind the scenes. But I will say to Buyers, you are not alone. Not only do other Buyers share your frustration, but also the Agents who are working much harder than anyone ever sees are working against a tide of disrespect and lack of cooperation and communication and even financial compensation.

It's a situation that needs to be addressed. And unfortunately, we are in it together. Mostly what we can offer you as agents is our hard work and compassion and communication. Stay in touch with your agents and use information to make educated decisions about your short sale and whether the risks make sense and whether you can end up with a really great home at a really great price. I wish you the best!

Monday Morning Update (and on Monday!)

2009-06-01T08:21:00.000-07:00

Nice to be back again!

2009-05-26T09:57:00.000-07:00

Monday Statistics (well actually Tuesday)

Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 182active listings and 121 sale pendings

Gilroy has 142 active listings and 222 sale pendings

San Martin has 35 active listings and 12 sale pendings

Area 1 (all of the above) has 357 active listings and 354 sale pendings

Inventory continues to fall and sales continue to increase. Right now we are almost neck in neck with active and sales in Area 1. Certain price ranges (under $400,000) are hot right now with multiple offers. The quality listings that are priced well are selling quickly. Buyers should be ready with their prequalification letters from their lender and an understanding of what is going on in the market. Although, within the next 30 days, we will be seeing an influx of bank owned property coming on the market that could slow things down a little. Short sales seem to be getting tougher and are not necessarily the great deals we once thought.

Stay tuned for regular updates!

FALLING DOWN

2009-05-22T08:40:00.000-07:00

And getting back up

Last month, I was taking a horseback riding lesson with my daughter when I was bucked off my horse. I did not land gracefully. Well maybe gracefully isn’t the point, I was badly hurt and in a lot of pain and to be honest, I was also scared about the extent of my injuries. I was on the couch for several weeks and doing the bare minimum to survive. This did not include writing on my blog. Sorry.

However, I have not really been connected to my blog this winter for several reasons. One is I have been very busy with real estate and there are just so many hours in the day. But I miss writing on my blog and keeping you all in touch with the latest updates and all the many changes going on in real estate. I found working on articles about new legislation, writing my thought processes about property I had been viewing and sharing my experiences in real estate sharpened my senses and helped me fine tune my real estate knowledge.

It’s fun. I love what I do and I like to share my insights and experiences and hope that it helps, adds to the education of a public that has an overload of information without the tools to process them in a practical way that benefits them. That’s my job. To protect you, help you make good decisions and sometimes help you to get out of your own way.

So onward to more blogging, more information and hopefully more courageous (and interesting) reporting.

Monday (oops, Tuesday) Morning Update!

2009-04-28T09:43:00.000-07:00

Monday Statistics

Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 192 active listings and 106 sale pendings

Gilroy has 188 active listings and 213 sale pendings

San Martin has 35 active listings and 19 sale pendings

Area 1 (all of the above) has 414 active listings and 338 sale pendings

There is a serious decline in inventory number and quality. A lot of what is currently on the market (not all, of course) are not the most desirable properties. As a realtor, I am seeing a lot more activity with my listings and multiple offers on properties, a lot more activity in the market in general.

According to the Daily Real Estate News on April 20, 2009:

Fed Officials: The Worst Is Over

The worst of the economic crisis is over, according to U.S. officials speaking at a financial conference Friday at Vanderbilt University.Frank Nothaft, the chief economist for Freddie Mac, said housing sales have just about hit bottom and a third of home sales are now foreclosed properties.Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, warned that the declining commercial real estate market still poses a risk to the economy.New York Fed chief William Dudley complained that the programs the government has put in place are being undermined by public perception that they are unfair to average taxpayers and that has made some potential investors fearful that they would be the focus of public outrage if they profit from the programs."It is worth emphasizing (that) actions that lead investors to shun taking risk, especially in this environment, are ultimately detrimental to the ability of households and businesses to secure credit at reasonable borrowing rates," Dudley said.Source: Reuters News, Ros Krasny and Kristina Cooke (04/18/2009)

Stay tuned for regular updates!

Monday Morning Update!

2009-04-20T08:56:00.000-07:00

Monday Morning Update!

2009-04-06T08:44:00.000-07:00

Monday Morning Update!

2009-03-30T16:09:00.000-07:00

We did it!

2009-03-29T08:29:00.001-07:00

Historical Society of Morgan Hill sponsors the El Toro Spring Walk

We don't always have the time in our busy day to do the things which renew us. Yesterday was a beautiful day and there was a great turnout for the El Toro Walk. This year there were two times to go up - one at 8 AM and one at 10 AM which made it a lot more organized (and safer) than last year. There was the geologist speech before the walk (OK, El Toro is not a volcano and Poppy Jaspar is special to Morgan Hill), as well as the usual walkers and after walk treats. I was trying to remember how many years we have been doing this and I think it has been almost ten years. Last year it was much easier to get up the hill because I was in training then for the Avon Walk for Breast Cancer. This year I did it but maybe a little less gracefully.

My 2 Cents - Enjoy your community. There are always special events and people to enjoy!

Scams!

2009-03-24T13:14:00.000-07:00

Far be for people not to take advantage of each other during tough times but that seems to be the case in several situations.

1) The Federal Trade Commission (FTC) is warning consumers that they could get stung by economic stimulus scams, perpetrated on the Web and through email, by enticing consumers to provide personal information or a small payment. Beware of email messages and web sites asking for bank account information, asking for a small payment which will allow credit card information to be made available and links that will download malicious software or spyware. Some web sites are using deceptive names or images of President Obama and Vice President Biden to give the appearance of being legitimate while they are not.

2) California Attorney General Edmund G. Brown Jr. is warning consumers that scam artists are using the forged letterhead of major lenders to con worried Californians into paying thousands of dollars for non-existent loan modification services. Consumers can take steps to protect themselves from loan modification fraud by going to http://ag.ca.gov/newsalerts/release.php?id=1697&.

3) I have had several clients who have received letters from groups claiming they can reduce their property taxes for a small fee. We did some follow up and believe this is also a fraud. You can log onto the county's assessors' office and actually apply to have lower taxes simply by filling out an online form. You might need some help in filling it out but the information is pretty basic and is out there (at no cost).

My 2 Cents - If it sounds too good, it probably is. Ask someone you trust before you jump in and be very careful of who you let see your private information.

Monday Morning Update!

2009-03-23T10:28:00.000-07:00

Gilroy Leads in February Sales in Santa Clara

2009-03-21T08:33:00.000-07:00

Mercury News Article

I don't always agree with the Mercury about the real estate market but I thought Sue McAllister had some right on things to say in Friday's edition. Yes, I agree that Gilroy is the hot market right now with excellent deals not only in the very low range but also in some of the higher end homes like those located at Eagle Ridge on the West Hills of Gilroy. If you are a Buyer and looking in Gilroy, do your homework and make sure you have a great agent - this is a competitive market and there are many multiple offer situations. Note - the good deals are not a secret and if you can figure it out, so can the other Buyers on the look out for a good deal.

Bank Owned Properties and Short Sales are not without their cost even though the market value is usually a good deal. Banks often want to use their own contracts which heavily favor them and in short sales, the Bank makes all the decisions and both insist on as-is sales (no repairs).

The article in the Mecury also talks about the median price being lowered throughout Santa Clara county and part of the reason is the run on lower end homes (it's not only happening in Gilroy, we're having multiple offers on low priced homes in Morgan Hill also and I hear in San Jose as well). But the other piece of the puzzle is high end homes involve risks on many levels. Lenders are just not that excited about jumbo loans (which limits the amount of Buyers). These are also the people dealing with losses in stock values and concern about job stability. Put those factors together and you have a median price home 41% lower than a year ago.

Annual Spring Hike Up El Toro on Saturday, March 28th

2009-03-18T16:35:00.000-07:00

Spring Hike up El Toro in Morgan Hill

My daughter and I have been participating in the hike up El Toro for years. Our first hike was years ago when I had to help her up our "mountain" the first year we went up. But I was quickly humbled the year after when she was one of the first folks up the hill and so it has been for many of the following years. Last year I was in the middle of training for the Avon Walk and it felt good (relatively speaking) to hike up the hill. This year all my best laid plans to stay in shape have fallen by the wayside and I think I better take it slow!

I was glad to see they have scheduled the hike in two parts - one at 8AM and one at 10AM. Last year there was only one time and it was very challenging at the top. The problem is the last stretch of the hike which is very steep with hardly any traction. Every year the Boy Scouts volunteer their time and set up as well as monitor ropes for us to use. With only one time to hike last year, people were coming and going at the same time and it was challenging.

Remember to bring gloves - you'll really need them to get up the ropes and wear good hiking shoes. Peter Anderson will give a talk about the formation of El Toro before the hikes at the Morgan Hill Library which is where the walk starts. For more information, call (408) 779-5755 and many thanks to the Boy Scout Troop 799 for helping us get up that last leg.

I look forward to seeing you there - this is a wonderful community event with some interesting history thrown in for good measure!

First Time Home Buyer Program

2009-03-18T13:02:00.001-07:00

What is the Mortgage Credit Certificate Program anyway?

The MCC Program provides financial assistance to first time homebuyers for the purchase of single family homes, townhomes and condominiums. It is a dollar for dollar tax credit against the borrowers federal income taxes - currently15%. The remaining 85% remains a standard tax deduction.

Eligibility is for first-time Homebuyers who have not owned a home in the past three years, are purchasing a home in a participating city within the country, plan on living in the home and meet the income and purchase price limits.

The Borrowers income cannot exceed $97,000 for 1-2 persons or $112,470 for 3 or more (no co-signers allowed for this program).

The maximum purchase price is $570,000 for existing units and $630,000 for new construction.

If the borrower sells the property within nine years there may be a recapture tax penalty.

This program is only available with participating brokers and funding lenders. Applications are processed on a first come, first serve basis with an application fee of $275. For more information and details about this program to www.sccgov.org (go to affordable housing).

My 2 Cents - Make sure you are working with a mortgage broker up to date on all the programs currently available.

New Bank Owned Properties

2009-03-17T10:35:00.000-07:00

NEW BANK OWNED PROPERTIES ON THE MORGAN HILL MARKET

Beautiful home in gated community at 14545 Atherton Circle is a good buy at $950,600 with 5 bedrooms/3.5 baths and 3784 square feet - great views but needs some TLC. 19139 Legend Court over in Coyote Estates is an attached home but what a price at $512,900! 4 bedrooms/3 baths with 1989 square feet and mountain views. These two bank owned properties are worth checking out with their locations and price points.

Monday Morning Update

2009-03-17T08:06:00.000-07:00

Interesting Twist on Selling

2009-03-13T13:46:00.000-07:00

Huge Price Reduction?

This looks like a very nice home in San Martin although the location is very close to Monterey Road. This 5 Bedroom/3.5 Bath home has 4400 square feet on 2.5 acres with a 4 car garage and is only 8 years old. Originally listed for $1,488,000, they just reduced it to $799,888 which puts it at about $181.79 per square foot. Sounds like a very nice single story with lush landscaping, iron gate, gourmet kitchen, hardwood floors & the works. If the location doesn't bother you then this is a great deal.

One thing to think about is resale. In this kind of market, Buyers are not forgiving about location, overhead wires, etc. so this wouldn't be a good buy unless you were planning on staying a while.

Market News Update

2009-03-13T13:28:00.000-07:00

President Obama's new plan -

There is lot's of talk about the changes going on. The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000. Aargghhh! Maybe this makes sense in certain areas in our country but not in California where our costs of living and housing prices are much higher and inflated than other parts of the country. This law could negatively impact our housing market even further.

Refinancing -

Many mortgage professionals are advising clients not to wait to refinance. Stricter loan underwriting standards and declining property values could result in some homeowners becoming ineligible for the Obama administration’s “Making Home Affordable Refinance” program. As a result, many mortgage professionals are advising clients not to wait to refinance.
Refinances also are taking longer to complete. Whereas a refinance used to take three to four weeks to process, it now is taking as long as six weeks.

My 2 Cents -

I'm seeing a lot of people in distress who aren't clearly understanding the new laws. It's very important to obtain the correct information for your situation and not just trust to the new legislations to majically solve problems. Go to the sources and get updated information. Use your trusted professional to help you find those sources.

Monday Morning Statistics

2009-03-09T08:27:00.000-07:00

Great Deal in Morgan Hill!

2009-03-03T08:07:00.000-08:00

Single Family Home listed for $287,000

This is a new listing, bank owned and currently on the market for $287,000. It has 2 bedrooms and 2 baths with 1084 square feet. The lot size is small, only 3049 but the association is located on the east hills of Morgan Hill with an expansive feel plus the home backs up to open space with gorgeous mountain views.

My 2 cents - Not going to last long on the market.

Monday Morning Update!

2009-03-02T09:30:00.001-08:00

Changes in Market

2009-02-26T08:11:00.000-08:00

Home Prices Decline Nationwide in 4th Quarter of 2008

U.S. home prices posted record declines in the fourth quarter of 2008 according to a Federal Housing Finance Agency's (FHFA's) House Price Index (HPI) report released yesterday. The FHFA seasonally adjusted purchase-only house price index, based on data from home sales, was 3.4 percent lower on a seasonally adjusted basis in the fourth quarter compared with the third quarter. The decrease was greater than the 2 percent decline reported in the third quarter, and the largest in the purchase-only index's 18-year history. Over the past year, seasonally adjusted prices fell 8.2 percent from the fourth quarter of 2007 compared with the fourth quarter of 2008.

Homeowner Affordability and Stability Plan

President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes. The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. In addition, the plan includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac. Many of the plan’s details are still being worked out and will not be announced until March 4.

Increases in FHA Loan Limits

Federal Housing Administration (FHA) single-family loan limits have been revised as a result of the American Recovery and Reinvestment Act of 2009 (ARRA) and are now available online. The new loan limits, reflecting an increase from $625,500 to a maximum of $729,750, are effective for those loans for which credit is approved in 2009 and will remain in effect until Dec. 31.Federal Housing Administration (FHA) single-family loan limits have been revised as a result of the American Recovery and Reinvestment Act of 2009 (ARRA) and are now available online. The new loan limits, reflecting an increase from $625,500 to a maximum of $729,750, are effective for those loans for which credit is approved in 2009 and will remain in effect until Dec. 31. Go to https://entp.hud.gov/idapp/html/hicost1.cfm. for more information.

My 2 Cents - I see lots of movement even with all the "doom and gloom". With all the support going on looking for solutions, I think there will be more real estate activity in 2009 then there was in 2008. People are still cautious, as they should be, but want (and sometimes need) to make movement in their lives.

Another Viewpoint into the Current Market

2009-02-25T08:09:00.000-08:00

Working with Buyers!

Sorry I haven't been as attentive as I would like but I've been out working (isn't that the point after all ?). But I do like giving people good information and I find I learn so much when I'm out showing. It gives me a totally different viewpoint than when I represent a Seller. Although it's usually a specific viewpoint.

I have several buyers interested in country property so I have been out and about a lot these days in South County. 2 days ago, the above bank owned property came on the market and my buyer and I ran over there to check it out. There was a buyer there before us and one waiting when we came out. This is a 3/2 1/2 with 2230 Square Feet and about 2.5 Acres with a barn and on the market for $792,900. When I check the recently sold properties for comps, I find out that country property is selling for an average of $334.32 per square feet. This property at 8880 Guibal in Gilroy is on the market for $355.56 per square feet. That tells me there are educated buyers out there (with money and ready to go). I think this property will be sold before too long.

Monday Morning Update!

2009-02-24T08:21:00.000-08:00

Stimulus Bill and New Plan in the Works!

2009-02-19T06:18:00.000-08:00

Last week Congress passed the American Recovery and Reinvestment Act of 2009. which was signed by President Obama at the beginning of this week.

Among other things, the stimulus legislation resets the conforming loan limit cap at $729,750, up from $625,500 and reinstates these 2008 loan limits through Dec. 31, 2009.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

Earlier today, President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.The plan contains three main components, and only applies to primary residences.

1) The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house.

2) The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification.

3) The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications.

Market Update as seen by CAR

2009-02-16T08:42:00.000-08:00

American Recovery and Reinvestment Act of 2009

Last Friday, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today’s votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion.

On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

C.A.R. and NAR have long advocated for higher conforming loan limits. The conforming loan limit provisions and other housing elements in the stimulus package are a step in the right direction for our industry and all Californians.

The stimulus package also contains $308.3 billion in appropriations spending, including $120 billion on infrastructure and science and more than $30 billion on energy-related infrastructure projects. It also allocated an additional $267 billion for direct spending, including increased unemployment benefits and food stamps; and provides $212 billion in tax breaks for individuals and businesses.

Now that the stimulus package is approved and is on its way to President Obama for signature, it is our hope that Congress will turn its attention toward helping homeowners remain in their homes and will take immediate steps directed specifically at stemming the ongoing foreclosure crisis.

My 2 Cents - I like to hear what the "experts" say especially when it is in a consise form. I hope you appreciate this kind of information as well.

Monday Morning Update

2009-02-16T08:39:00.000-08:00

New Homes in Gilroy at Mesa Ridge

2009-02-16T08:27:00.000-08:00

New Dividend Homes at Mesa Ridge

There are several beautiful newly built homes on Cajon Way in Gilroy just south of Eagle Ridge off of Santa Teresa. I have been spending some time showing property in this area and I was very impressed with these homes. Especially since they were the similiar to the homes in Coyote Estates in Morgan Hill that were selling around $1,200,000 once upon a time ago. These Cajon homes are on the market for $624,000, $660,000 and $699,000 - around half of what they sold for in the past. And they are nice homes with a decent budget from the builder for upgrades. The risk is the area as they are just in their first stage. But the builder is a known and I thought the hills and the views and the area was lovely. Worth checking out if you are in the market for a new home. You can also go to mesaridgesales@dividendhomes.com or of course, contact me for more information.

Keep posted!

Monday Morning Update!

2009-02-09T09:41:00.000-08:00

Loan Modication Explained

2009-02-07T07:48:00.000-08:00

Loan Modifications

Loss mitigation encourages lenders though an attorney-based process to help create the best mortgage solution for troubled homeowners. Through this, homeowners can expect one of the following results to occur:
· Loan Modification
· Short Sale
· Deed in Lieu

What is loan modification?

It is renegotiating the terms of your existing loan. It is by far the most desired result in any loss mitigation process. Every client is assigned a personal real estate attorney and a professional loan negotiator, to effect a successful resolution through loan modification.

Results can include:
· Interest rate reduction
· Extended payment terms (up to 50 yrs)
· Principal reduction

Who qualifies?

You must have at least one of the following criteria:
· High Loan to value (90% or higher)
· Bad credit due to late payments on credit cards, mortgage, medical bills, etc.
· Adjustable Rate (has or will change in the future)
· Option Arm or pick-a-pay loan
· Temporary or permanent financial hardship ( i.e. job loss, divorce, income reduction, medical emergency, etc.)
· High Debt to Net income ratio
· Non-owner Occupied – Ok

The above information was provided to my company by Gary Foydle from The Loan Source. I thought it was good information and consise and hopefully, helpful. Let me know what you would like to hear about in the future.

FYI - If you are currently shopping for a home, rates are up at the moment (around 5.125% for a 30 year fixed). Although there are different lending options, I like to use the 30 year fixed as a sort of "measuring stick" for the lending market. Stay tuned for more updates!

New Bank Owned Listing in Gilroy

2009-02-06T09:00:00.000-08:00

New Bank Owned Property in Gilroy

This five year old home in the North West section of Gilroy has 3314 square feet, 4 bedrooms, 2 1/2 baths and is on a 7405 square foot lot. Large & Spacious Living Room, Separate Dining Room, Granite Counters in Kitchen, Upstairs Loft, Downstairs Bedroom, Corner lot. Priced at $659,900 which is maybe slightly higher than recent comps which have similiar homes sold at the low to mid $600,000's. Worth checking out.

Federal Stimulus Update

2009-02-06T08:54:00.000-08:00

On Wednesday the U.S. Senate unanimously adopted an amendment to the tax portion of the stimulus package that would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, for all purchasers, not just first-time homebuyers, in 2009 for a primary residence. Taxpayers would claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

The House-passed version of the bill continues the current $7,500 credit for first-time homebuyers and eliminates the repayment feature of the credit, but only for purchases that occur between January 1, 2009 and June 30, 2009.

The Senate legislation so far does not include the loan limit increase for FHA and GSEs, but NAR is urging its inclusion. The House-passed bill reinstates and makes permanent last year's temporary FHA and conforming loan limits of $729,750, as sought by NAR. Limits currently are $625,500.

Stay tuned for more updates!

Message from the Morgan Hill Unified School District Superintendent

2009-02-04T12:05:00.000-08:00

Dr. Alan Nishino Speaks to Realtors

Today at our County Realtor's meeting we were addressed by the superintendent of our school system. After sharing with us his passion for our kids and education, he addressed his reason for being at our meeting today. The school budget is so bad, it is at breaking point and they don't know how to make it work. We are at the bottom of the list of quality education throughout the United States and we need to change that. How to affect change? Money! His plea was to address the money we receive from property taxes and bonds and to support increasing these costs inorder to raise money for our communities and specifically education.

Guess what? I agree with him no matter how unpopular that might be. I think where we do spend our money (as well as our values) is often misplaced and there is no greater place than education for our kids. "Good schools make good communities" said Dr. Nishino and it has been proven over and over again. This is a growing community (currently there are 9 languages spoken here according to Dr. Nishino) and complicated times for our kids. Our responsiblity is to prepare our kids even better than we were prepared.

One of his points was that out of the 45% earmarked for Special Education, only 17% was received. This is especially poignant for me as I have a special needs kid who is not receiving the services she needs. As I struggle with the school system, I am enough of problem solver to know that they can't perform on the level they need to perform. For more information about this school system, go to http://www.mhu.k12.ca.us/

My 2 cents - We need to meet the challenges of these times and prioritize our values and our futures by supporting our kids and their education.

Donate Blood to the American Red Cross

2009-02-03T12:41:00.000-08:00

Giving Blood

A lot of us feel like this market is bleeding us anyway, so why not do a good deed and give blood to the American Red Cross? I thought about this yesterday as I gave blood in my town of Morgan Hill and wondered why more people don't give blood. Like a lot of things, we just don't think about it. I do believe people want to help others and would do more with just a little encouragement.

Well, here it is! Give blood to the American Red Cross! They aren't hard to find and they probably come to your area every 8 weeks (that's the time period to give blood). It takes less than 1 hour and you're done. I think these are the times to think about the many ways we can give back to our community and support each other. This one doesn't even cost money. You do have to develop a bit of a thick skin to get through their process of making sure your blood is healthy but it's obviously for the greater good. When the Red Cross comes to my town, I know I'm in for an hour of rock & roll music, some cookies and kind words along with my civic duty.

Monday Morning Update!

2009-02-02T09:11:00.000-08:00

Monday Statistics

Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 220 active listings and 61 sale pendings

Gilroy has 273 active listings and 153 sale pendings

San Martin has 39 active listings and 11 sale pendings

Area 1 (all of the above) has 525 active listings and 223 sale pendings

We continue to be down in inventory but holding steady in sales. Interest rates are also holding steady with some fluctuation. Distress properties continue to drive home sales in Santa Clara County and other parts of the state. Countrywide we have about 30 percent of our inventory under contract as compared to the 12 percent at the same time last year. Although when I check the statistics on what is actually closing, the monthly figures are still pretty low. Last month, only 14 homes closed in Morgan Hill, 44 homes closed in Gilroy, 1 home closed in San Martin and 59 homes total closed in Area 1. So what is happening to the rest of the pending sales? Could be they are just taking a long time due to short sales and financing taking longer but it could also be that a lot of these pending sales aren’t closing. However, compared to last year the market definitely has more activity and closed sales.

Stay tuned for regular updates!

Economic Recovery Package

2009-01-31T11:31:00.000-08:00

$819 Billion Stimulus Package Approved!

Last week, the US House of Representatives passed the current Economic Recovery Package(HR 1). The California Association of Realtors totes this as good news, as the bill contains a number of issues critical to our industry including extending all 2008 Metropolitan Statistical Areas' Fannie Mae, Freddie Mac and FHA loan limits throughout the end of this year.

The extension prevents an MSA's 2008 loan limit from being reduced in 2009 for Fannie Mae, Freddie Mac and the FHA. Language in the bill also specifies that if an MSA's loan limit is set to change, it can increase, but is prohibited from declining.

The proposed legislation also will eliminate an existing payback requirement on the first-time home buyer tax credit for qualified buyers who purchase a home between December 31st 2008 and July 1st 2009.

Next week, the Financial Services Committee will meet and review other housing issues.

FICO Update

2009-01-28T10:31:00.000-08:00

Understanding FICO Scores -

We all know how important FICO scores are so here are some basics to enhance your FICO knowledge. Good borrower credit scores help make it possible to qualify at better rates. For those with lesser FICO scores, FHA loans are available as an option.

This is how FICO Scores are weighted and structured:

35% by Payment History
30% by Balances Owed
15% by Length of Credit History
10% by New Credit
10% by Types of Credit in Use

And the overall calculated ranges:

720 - 850 Excellent, A-paper credit, the "good-guy" rates available;
680 - 719 Good, not much of a compromise on rates;
620 - 679 OK or Fair, clearly in range for FHA consideration;
580 - 619 Low, bottom of the range for FHA consideration, "alternate credit" comes heavily into play;
500 - 579 Poor, truly nothing can be done without credit rehabilitation.

Feel free to contact me for more information.

Behind the Scenes with Interest Rates!

2009-01-27T12:09:00.000-08:00

Loan Update

Today at my Tuesday office meeting, there were 2 mortgage brokers giving us updates on loans. Most rates these days are based on owner occupied purchases with 20% down, 720 or higher credit scores and 30 day pricing plus 1 point. Given that, a 30 year fixed conforming loan (under $417,000) is about 4.875% as opposed to a super conforming loan ($417,000 to $625,000) which is 5.625% and a jumbo loan ($625,000 to 3 million) which is 5.75%. Jumbo rates are currently down.

Gary Foydl from Loan Source, gave some behind the scene info on lending. #1 - Late last year the "Feds" began buying mortgage backed securities which resulted in lower interest rates. A lot of folks applied to refinance their homes which ended up clogging up the system which caused rates to go up. #2 - Lenders encouraged Buyers to pay at least 1 point (which can buy down an interest rate between 1/2 to 1 1/8 pts currently) and get more invested in holding onto their loans. #3 - As we know from getting a new loan, our loans are soon sold to other lenders in a package deal. Only 10% of those loans were able to be jumbo - which impacted the jumbo rates and availability. The result was to artificially raising rates due to clogged pipelines. Rates would vary due to timing.

Let me know if this is interesting or confusing. I like knowing the behind the scenes info - especially as it affects our market.

Good New Deal!

2009-01-26T10:56:00.000-08:00

New Bank Owned Property in Morgan Hill

This 4 Bedroom home at 14855 Native Dancer just came on the market a couple of days ago and I don't think it will last very long. Located on a 20,700 square foot lot, this one story home has a formal tiled entryway, hardwood floors, bright kitchen with newer cabinets and tiled counters, brick fireplace, tiled bathroom floors and large master bedroom. On the market for $675,000 and priced well for this market. If you are looking for a one story with a large lot then this might be the home for you!

Feel free to contact me if you would like more info on this property.

Monday Morning Update!

2009-01-26T10:54:00.000-08:00

Bank Owned Duplex in Morgan Hill

2009-01-23T08:41:00.000-08:00

Bank Owned Duplex for Sale!

Check out this duplex in Morgan Hill, located at 105 Spring Avenue for only $410,000 and includes 2 Bedroom/1 Bath unit on each side with updated kitchens and baths. Worth checking out for it's investment potential. Located on the west side of Morgan Hill and been on the market for a little over 3 months. I'll keep you posted on this and other REO properties.

Tax Relief for Homeowners?

2009-01-22T06:49:00.000-08:00

The following article is taken from my C.A.R. (California Association of Realtors) Newletter and I thought it was very interesting as well as worthwhile to know. I recently posted some information about loan modifications as one of the emerging solutions to our current economic issues but never expected the government to offer the following relief - read on!

IRS TO EXPEDITE TAX LIEN RELIEF FOR HOMEOWNERS

The Internal Revenue Service (IRS) recently announced it will expedite its process of providing relief from federal tax liens for distressed homeowners. With more than one million current federal tax liens against real and personal property, the IRS announcement should help REALTORS® and their clients resolve federal tax lien issues in their sale and loan transactions.

As background, a homeowner seeking to sell or refinance a property must generally pay off an existing federal tax lien. However, during the current economic downturn, many homeowners don't have the cash or equity to do so. Hence, for a refinance, the homeowner may request that the IRS makes its tax lien subordinate, or secondary, to the lien of the refinancing lender. For a sale, the homeowner may, under certain circumstances, request that the IRS discharge its claim. The IRS's processing time for subordination or discharge requests has been about 30 days. The IRS currently is working to expedite that time frame to help distressed homeowners. For IRS instructions on requesting relief from federal tax liens, go to IRS Publication 783 for discharges and Publication 784 for subordinations at www.irs.gov.

Monday Morning Update!

2009-01-19T09:03:00.000-08:00

Beautiful Cordevalle Property!

2009-01-14T13:27:00.000-08:00

Gorgeous Cordevalle Vineyard Estates Property

One of the fun aspects of my work is getting to see a variety of homes (including seeing how the other half lives). This is a beautiful home located at Cordevalle in San Martin. Located at 1285 Lions Peak Lane, some of the highlights include a French Clay Roof, Copper Gutters & Trellis, Vineyard, Stone Courtyard with Pond, Mahogany Floors & Cabinets, Gourmet Kitchen (of course), Master Suite with His & Her Bathrooms & Closets, Detached Gym, Oversize Garages plus more in this 4 Bedroom, 4 Bath Home with 4132 Square Feet and lot size a little over 2 Acres. Plus this Private Gated Community also offers Tennis, Gold, Spa & Fine Dining. Could be yours for $1,999,999! Some homes just have that special feel to them and this is one of those - shows beautiful with a comfortable, well thought out floor plan.

Loan Modifications

2009-01-13T08:18:00.000-08:00

Great Article in the Mercury News

We are seeing the evolution of different solutions to our mortgage crisis. Lately you've probably been hearing more about 'loan modifications'. Loan modifications have evolved as another alternative to having a mortgage that is too much to handle. Lenders are renegotiating with some borrowerers in order to salvage what they can, making the loan affordable to the borrowerer and thus avoiding the foreclosure route.

Counseling is available by contacting the lender directly or going to a HUD approved non-profit counceling agency (might be the smarter first step). There are also private loan-modification services that will help with the process for a fee.

This article in the Mercury gives resources and some good common sense advice in dealing with options. To read more, go to: http://www.mercurynews.com/saturdayrealestate/ci_11355649

My 2 Cents - Let's not make the same mistakes that got us into this mess. Do your homework, do your research, ask trusted professionals and most of all - deal with it! Problems won't go away by not looking at them.

Monday Morning Update!

2009-01-12T10:47:00.000-08:00

New & Interesting Bank Owned Property in Morgan Hill

2009-01-08T10:40:00.000-08:00

Great location with beautiful views from this property!

I have been inside this home located at 397 Wright Avenue. It is surrounded by lovely large homes for the most part and has great vistas from the property. I know it needs work as well as updating but because of the location, could increase in value substantially given the right attention. Details - 4 Bedrooms, 3 Baths with 2910 Square Feet and located on a 28,440 Square Foot lot (mostly unusable). It is 31 years old and pretty much everything is original with its share of wear and tear. Priced at $802,900 - maybe a little high but I suspect it will come down in price before too long. This would be a great personal home for a contractor or someone who is handy.

Investment Case Study on Gilroy Property

2009-01-07T06:40:00.000-08:00

Investment Property Case Study by Gretchen Merrick

Gretchen is a colleague of mine who did a case study on my listing at 9110 Church Street in Gilroy. I thought it was not only interesting but well done and she has given me permission to reproduce this study on my blog. It is as follows:

It has been quite a few years since a Bay Area residence could be purchased for investment purposes and have a positive cash flow from the income received from rent. But with the large drop in real estate sale prices, it appears that not only will there be great potential for gains in equity appreciation, but that the property will have a positive cash flow.

Let’s look at an example case study on a real property currently for sale in Gilroy. I chose this property because the Multiple Listing Service states that it is currently rented for $1900/month. This property is located at 9110 Church Street, has 3 bedrooms and 2 bathrooms, is 1132 sq.ft. and is on a 5227 sq.ft. lot. The list price is $279,000 (originally $369,000), and this property is a short sale.

Although we are given the current rent amount, there are other assumptions that must be made in order to analyze this potential investment. Here are the assumptions that I made:

Purchase price = $250,000, 25% down payment = $62,500
Loan: 6% interest rate with 1 1/2 discount points, 30 year loan, monthly payment = $1124.16, total acquisition cost = $5000 (including closing costs)
Utilities paid by tenant
Self-managed (no property management costs)
5% vacancy allowance
Annual property taxes = $3125
Annual insurance = $800
Annual maintenance costs = $2500
Investor’s federal tax bracket = 25%, California state tax = 9.3%
Holding period = 7 years
Annual appreciation, average over 7 years = 3% (hopefully this is a very conservative number)
Projected sales costs = 7%

Using the above assumptions, the property can be analyzed as an investment, taking into account tax depreciation, cash flow before and after taxes. We will also look at the eventual sale of the property, looking at taxes due upon the sale and the after-tax rate of return.

Income - Vacancy Allowance = Gross Operating Income = $21,660
GOI - Operating Expenses = Net Operating Income = $15,235
Subtract Mortgage Payments = $13,490
ANNUAL CASH FLOW BEFORE TAXES = $1745

Looking at my assumption of selling the property in seven years with a conservative guess of 3% appreciation in value per year:

Projected sale price in 2016 = $307,468
Subtract cost of sale = $21,523
Add 7 years of cash flow = $12,215
Subtract remaining loan balance = $168,073
CASH OUT ON SALE = $130,087
Subtract initial investment of $67,500
TOTAL GAIN ON SALE = $62,587

This example shows a viable real estate investment in south Santa Clara County with a before-tax rate of return of 8.55% on the investor’s initial $67,500 investment. Please consult your tax advisor for more information regarding the tax implications of buying, leasing and selling investment real estate.

(Thanks Gretchen!)

More Harriet's Picks - Gilroy this time!

2009-01-06T06:59:00.000-08:00

Gilroy Favorites -

My last pick’s blog started with sushi and so shall this one. For a good sushi meal and fun atmosphere, go to Ninja Sushi, located at 715 1st Street in Gilroy. We’ve always had great food there and I enjoy the upbeat, friendly energy of the place. I also like finding (& telling people about) restaurants and places that would be hard to find on their own especially as someone new to a community. O.D.’s Kitchen is one of those places and it is “unassuming with no real atmosphere” but has great breakfasts and lunches with excellent burgers. It’s located at 28 Martin Street and it is a find. Also does take out. Victoria’s Mexican Restaurant can be found at 757 1st Street for excellent Mexican goodies. Although for super quick, we go to Super Taqueria which can also be found in Gilroy (and Morgan Hill and Hollister) at 401 East 1st Street. Their homemade beans and green & red chili salsas are excellent. Try a super burrito for a filling meal and good buy. I love a lot about Gilroy, but especially the feel of the wide streets and the mature trees. Also, there is also a lot of effort going into building up the downtown area. One of Gilroy’s big attractions of course is the yearly Garlic Festival. You have to go at least once especially if you are moving here because once you live here, you will probably end up volunteering for this event (it's a huge fundraiser for our communities). Coming this summer July 24, 25 & 26th and who doesn’t enjoy garlic? And speaking of coming soon, Gilroy will have its own Gilroy Dog Park. This is due to be finished this summer and will be located at the Las Animas Park.

Stay tuned for more area picks!

Monday Morning Update!

2009-01-05T08:26:00.000-08:00

Beautiful Bank Owned Homes New on the Market!

2009-01-03T08:40:00.001-08:00

Beautiful Gilroy Bank Owned Home (on the lower left) -

New on the market this week and located at 1059 Welburn Avenue in Gilroy. This 3 Bedroom/2 Bath home has 1532 Square Feet with an updated kitchen and new paint & carpets. It is located on a 7405 Square Foot Lot. Currently listed for $349,000. Worth checking out!

Beautiful Morgan Hill Bank Owned Home (on the upper right) -

New on the market this week and located at 18130 Stoney Creek Way. Only 5 years old with 5 Bedrooms/3 Baths and 2088 Square Feet, this home is listed at $579,000. Gourmet kitchen, Huge Master Bath with Jacuzzi, Spectacular Entry, Balcony with Views - sounds like it's not going to last long on the market.

Drive while Driving?

2008-12-31T10:27:00.000-08:00

No Texting While Driving!

I couldn't resist putting in my 2 Cents about texting while driving. Does anyone else think this is a little absurd that we have to dictate that we should pay attention to driving while driving? I think we all know by now that as of January 1st it will be illegal to text or read texts while driving. I never even thought of texting while driving but then this could be generational (am I giving away my age?).

I've heard studies say that hands free talking on the phone is as much of a distraction as holding a cell phone and talking. Hello everyone, we need to drive while driving. We can get away with it most of the time but there are situations that call for a quick response. And we need to be responsible about driving. It is a matter of life or death.

My 2 Cents - Try driving while driving and let voice mail do its job while we are on the road.

Monday Morning Update

2008-12-29T09:47:00.000-08:00

Monday Morning Update

2008-12-22T10:07:00.000-08:00

Morgan Hill High End!

2008-12-18T09:15:00.001-08:00

High Priced Listing in Morgan Hill!

We've looked at the low end so why not look at the high end of the market (just for fun)? This property at 2400 McDonald Lane has 7550 sqare feet with 6 bedrooms and 5.5 bathrooms. It is a grand home, very elegant with more rooms that you can figure out what to do with. It is located on 21 acres (about half is usable). On the market for a mere $3,999,999 (recently reduced from$4,350,000).

While it is fun to look at what we call 'McMansions', it gives me pause about what we really value in our homes. If you could have anything in a home, what would you pick? Do you have a dream home? Do you know what your priorities are? Personally, having to clean a 7550 square foot home gives me the chills. But having 21 oak studded acres sounds very nice. So does a porch - my dream home has a big friendly porch looking over a beautiful vista! How about yours?

Have You Checkout Out the Interest Rates?

2008-12-17T10:13:00.000-08:00

Record Low for Interest Rates!

Now is a great time to check in with your mortgage broker or banker and find out the current interest rates as it applies to you and your finances. Yesterday, my representative from Bank of America was offering 4.875% for a 30 year fixed with 1 point for a conforming loan (up to $417,000). Even Jumbo loans were being offered decent rates (6% for a 30 year fixed with 1 point).

Sue McAllister from the Mercury News wrote today that 'The Federal Reserve entered a new era Tuesday, lowering its benchmark interest rate virtually to zero - for the first time in its 95-year history - and declaring that it will now fight the recession by pumping out vast amounts of money to businesses and consumers through an expanding array of new programs.' Sue McAllister is the real estate writer for the Mercury and was the author of a great real estate blog that was recently discontinued (sad news for us).

Could this actually be good news (haven't had any in so long it's hard to tell). Keep watching the rates and I'll keep you posted on any changes as well.

2008-12-16T10:15:00.000-08:00

New Bank Owned Property in Morgan Hill

This single family home has 3 bedrooms, 2 baths and 1177 square feet. Just new on the market and listed for $429,900. Looks like a nice home with good upgrades and worth checking out if this is your price range.

Real Estate Auctions

2008-12-15T16:19:00.000-08:00

Buyer Beware!

I've heard a lot of stories from the 'old days' and read between the lines with the plethora of disclosures these days. I suspect that the current rules and regulations for the real estate auctions resemble what real estate was like when it was less protective of Buyers and more in favor of Sellers.

Why are people buying through auctions then? Well simply, it is the possibility of a good deal. IF you know what you are doing and IF you are in the right place at the right time, THEN maybe you are getting a good deal.

I have some clients that wanted to explore buying a particular property through an auction. It was a property they were interested in when it was listed on the market. We registered with the auction and began reading their paperwork and found out some interesting facts:

1) You can't thoroughly inspect a property. You can walk through with a contractor but you can't order the usual inspections once you are in contract the way you typically would.

2) No disclosures! Of course they don't really know the properties so they can't really disclose but they also don't preorder inspections or provide the typical 'JCP Report' which gives information about the natural hazards and environmental issues for that area.

3) You can't pick the title company. That isn't that unusual because the Seller (the Auction House) was paying for the title insurance but that's all they were paying for. Santa Clara County is a Seller Pay County and typically the Seller pays most of the transfer fees (Title, Escrow, County Transfer Tax, Association Documents & Transfer Fees, Home Warranty). Yes, all that is negotiable typically but not with an Auction. They pay the Title Fee and that's it folks. They do prorations for taxes but have a disclaimer in case they are in error that puts the responsibility back on the Buyer.

4) This one actually made my lender snort when she read about it in the contract - read on! You can use a different lender than the ones the auction house provides at the auction BUT you need to have an 'unconditional approval letter' from the lender. There is no way a lending institution is going to provide a letter without having an appraisal or looking at a prelim at the very least. Basically, you have to use their lenders unless you can buy a property with cash AND THEN you still have to go through their lender's approval process just for the hay of it.

5) There were more disclaimers as we read through the terms & conditions and the contract. It is important to know that although you might be bidding a certain price, once that price is accepted, the Auction House adds 5% on to that bid for the "Purchase Price". They did repeat that fact many times throughout their literature in all fairness to them but it was that kind of circuitous thinking that was important to follow.

6) My favorite - Apparently some of the homes aren't vacant and you might end up having to evict the tenants once you actually own the property. The Auction House does not guarantee they can get the tenants out.

By the way, the home we were looking at sold at market value (my clients did not end up buying the property). It actually sold for the same amount of money that a home down the street sold for recently. The Buyers could have bought it on the market and had their representation which they gave up by buying at auction. It was interesting to me that the home found the market value even at auction.

My 2 Cents - This is way too risky for the average person. Maybe a contractor or even someone who has carefully done their homework but the risks are great. Any of the homes in the really popular areas (Aptos, Los Gatos, etc) that sold ended up being bid close to market value. The good buys were ones that weren't as desirable.

Monday Morning Statistics

2008-12-15T09:45:00.000-08:00

Good morning South County!

Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 259 active listings and 61 sale pendings

Gilroy has 326 active listings and 151 sale pendings

San Martin has 44 active listings and 8 sale pendings

Area 1 (all of the above) has 608 active listings and 217 sale pendings

Inventory is going down but sales are actually holding steady and up a bit (rates are very good right now).

Stay tuned for regular updates! Tomorrow's blog will be on the Auction I went to on Saturday and what you need to know about auctions!

The Real Estate Report - Local Market Trends

2008-12-11T06:31:00.001-08:00

Santa Clara County Home Sales up Fifth Month in a Row

The following information is a concise look at the current status of our Santa Clara Market from The Real Estate Report. They do a good job of sorting and presenting the facts.

Sales of single-family, re-sale homes in Santa Clara County were up 24.4% in November compared to last year. Month-over-month, sales fell 23.9%. Sales continue to be concentrated in the lower-priced cities such as San Jose where yearover-year sales were up 72.7%, and Gilroy where sales were up 163.2%. Year-to-date, home sales are off 3.6%. Home prices continue to
be affected by the bankowned property that has flooded the market. The median price continued to slide, down 6.9% from October, and off 40% year-over-year. Inventory crept upward last month, rising 4.5% from October, but down 4.6% compared to November 2007.
The decline in home sales from the month before combined with the rise in inventory sent our Days of Inventory indicator up 59 days to 216 days. The sales price to list price ratio dropped 0.1 of a point to 98.8%. Condo sales rose 8% from October, but were down 19.6% yearover-
year. The median price for condos fell 17.1% month-overmonth, and was off 41.2% compared to last November.

The Real Estate Reports also posts the following statistics:

Median Price for Single Family Homes during November 2008 in Santa Clara County was $515,000 compared to last month which was $553,000 compared to last year which was $858,000 (ouch). There were 609 closed sales in November 2008 compared to last month which was 832 or last year at this time which was 509. Inventory was at 4500 single family home in November compared to October which was at 4358 or last year at this time which was at 4775.

The median price of a single family home in Morgan Hill in November was $582,950, there were 18 closed sales, 286 homes on the market and the average Days on Market were 103. For Gilroy, the median price was $390,000 with 50 closed sales, 413 homes on the market and average DOM in November was 119 days.

Feel free to contact me with any specific info or feedback.

Interest Rates!

2008-12-10T09:33:00.000-08:00

Update from Bank of America

I receive a weekly update from B of A regarding the current interest rates. Looking at it on a weekly (if not daily) schedule really helps put the market in persective. Right now, a 30 year fixed rate loan has an interest rate of 5.375 (5.549 APR) for a conforming loan (up to $417,000 loan amount). That is the lowest I've seen it in a long time. A 30 year fixed for an FHA conforming loan is going for 5.5% (6.029 APR). A 30 year fixed rate for a Jumbo Loan ($729,750 to 3,000,000 loan amount) is at 6.5 % (6.708 APR) right now. Also B of A is saying this is a good time to apply for a Veteran's Loans - they are lending up to 100% of the purchase price and as of right now, they are saying they can still close by the end of the year.

My 2 Cents - I would also advise checking out your credit unions or opening an account with a credit union. They have very competitive rates and they also have money. I recently did a transaction where my Buyer borrowed money from their credit union and it went very smoothly.

Monday Morning Update!

2008-12-08T08:28:00.000-08:00

Life in Paradise!

2008-12-07T06:30:00.000-08:00

New Listing in Paradise Valley -

This sounds interesting - 4 Bedroom, 3 Bath home with 2100 Square Feet located on nearly an acre at 13415 Sycamore Avenue. Sounds like the home is in decent condition - roof, gutters, heating & air conditioning, well, septic, gate, fencing and flooring all updated within the last 3 to 5 years according to the listing agent. Priced at $799,000 and it appears they are hoping for multiple offers. Don't laugh, it is happening in our area with well priced properties and this could be one of them. Located in a very popular area.

Silver Lining Update!

2008-12-05T06:16:00.000-08:00

The gift of giving...

As of yesterday afternoon, my Intero office in Morgan Hill had collected over $1100 in donations for the little girl whose family was going through such hard times. In less than 24 hours, many agents called up and dropped checks off and said what they wanted for Christmas was a donation to Jammie.

I was going to let people know about Can Tree yesterday (but got side tracked watching the participation of agents on our company email) which is another fund raiser by realtors, only this one is sponsored by the South County Realtors Association (all the different real estate companies in our area). Every year we raise money and donate food to the local food banks. We donated over $4000 for the Thanksgiving Holiday and plan on doing the same if not more for Christmas.

My 2 Cents - I'm proud to be a realtor in this area where selling homes is closely tied to community and good works (and again, this hasn't been a great income earning year for most realtors). Happy Holidays everyone. Oh by the way, what do you want for Christmas?

New REO in San Martin

2008-12-05T06:10:00.000-08:00

13155 Lincoln Avenue , San Martin

This is a bank owned property located on a 9,900 square foot lot in San Martin. The home has 1582 square feet with 3 bedrooms and 1 1/2 baths. The kitchen has granite counter tops and nice cabinets. There is tile and laminate flooring throughout the home. Needs some TLC but could be a good deal for the right buyer (first time or investment property). The seller is offering $2,000 toward buyer closing costs. There is only one other property in San Martin listed for less (and it's also on Lincoln Avenue).

A Silver Lining!

2008-12-03T21:42:00.000-08:00

Restore your faith in people and read on -

This year our office has decided to adopt three families for the holidays and have been collecting donations. We will take the money and go shopping soon so three families can have a Christmas with gifts and some breathing room. Even though this has been a hard year on most of us, we know that it is even harder on those who have less.

So when someone from my office sent the following email on top of the giving we were already doing, I wasn't sure what the response would be. Read on (this is the email from an agent in my office) -

Hello Intero Family,

I am not one to ask of my fellow agents unless I believe it's important.

I'm sending this email because I know the fabric of the Intero Family and that you will support this young lady in her need.

This is important. There's a young girl (12 yrs old) who's dad died last year and who's mom is currently fighting cancer. She's on the Morgan Hill Raiders Junior Midget Cheer Squad with my daughter and they just placed in the regional which means they will need to travel to Orlando Florida for the National Competition. It's tough on this girls mom to foot the bill and even though they do fund raisers etc she's still $500. short to pay her way. *****$500.***** separates this young lady from a trip that would mean so much to her and go a long way in giving her a brief moment in time to forget about all the tough things she'll be returning to when this trip is over.

A little background is important to know. Every year we have a company Christmas Party and do a grab bag with a Secret Santa gift. We pick names and buy a gift for the person picked.

Within minutes of the email posting, someone replied to all that she would appreciate a donation made to the little girl as her Secret Santa gift. Well, it was as if the dam broke and all night long there have been emails saying, 'count me in', 'donate my Secret Santa gift to Jammie', 'whoever pulled my name, please donate to this little girl' and on it goes. It's fun being on line and seeing the emails continually pop up. And this is a little girl who needs support. Her dad was killed in a tragic motorcycle accident last year and her mom is battling cancer. Her family was only able to fund raise $100 and the total cost of the trip is $1700. Her coach has contributed $600 but can't afford to pay for the whole thing as both her daughters are on the squad. I figure we have raised about $600 to $700 with more sure to come in as only about half the agents in my office have responded so far.

I know it's so easy to see the down side now more than ever but I believe people are good. I believe people want to be a part of something bigger and better than just themselves. I am proud today to be part of an office that can find money to help others in a year when there is not a lot to go around.

New on the Market

2008-12-02T10:55:00.000-08:00

WELL PRICED CONDO FOR $280,000!

This condominium just came on the market in Morgan Hill. Located at 183 Del Monte Lane, it is a 2 Bedroom/2 Bath unit with 1365 Square Feet and 22 years old. The association fee is $370 (a little pricey for around here). Recent comparable sales were $320,00 closing 6/22/08 and $275,000 (bank owned which means usually doesn't show as well or is as well cared for) closing on 9/26/08. Seems priced right and if you are looking in this price range, worth checking out.

My 2 Cents - I expect this to sell soon (we shall see).

Weekly Update on our Local Market

2008-12-01T08:32:00.000-08:00

Monday Statistics

Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 265 active listings and 57 sale pendings

Gilroy has 336 active listings and 149 sale pendings

San Martin has 43 active listings and 10 sale pendings

Area 1 (all of the above) has 621 active listings and 215 sale pendings

Inventory is going down but sales are actually holding steady. Home sales increased 117.1% in October in California compared with the same period a year ago, while the median price of an existing home fell 39.9% reported by the California Association of Realtors last week. Looking back over this past year for Area 1, the median sales price of a single family home started at $580,00 in January and was $474,000 as of October of 2008.

My 2 Cents – What I question are the amount of sales being reported. While I see that the homes going into contract have greatly increased, the amount of homes actually closing are less than half. And I see that over the entire year. For example, Area one closed with 65 sales for the month (while there are 215 sales pending), San Martin closed 3, Gilroy 46 and Morgan Hill had 17 closed transactions. Don’t you think that is interesting? What is happening to all the sales that aren’t closing? I’m grateful that I do my own tracking and don’t depend on published statistics. Let me know if there is an area or specific statistic you are interested in.

Stay tuned for regular updates!

Monday Statistic Update!

2008-11-24T13:04:00.000-08:00

How to Get Rid of E-Waste

2008-11-22T12:01:00.000-08:00

E-Waste Options

Where to drop off those electronic devices that no long serve us? Keep reading!

Cell Phones

· Best Buy and Office Depot in-store recycling kiosks
· Drop off old phones at AT&T, Verizon or T-Mobile stores
· Free mail-back programs: Motorola (www.racetorecycle.com), Sprint (www.sprint.com/recycle), Nokia (www.nokiausa.com/recycle), LG (us.lge.com/recycle)
· Wireless Foundation’s Call to Protect donation program (www.wirelessfoundation.org)
Computers and peripherals
· Dell recycling (www.dell.com/recycle), Hewlett-Packard recycling (www.hp.com)
· The National Cristina Foundation donation (www.cristina.org)

iPods and MP3 players

· Apple in-store recycling (iPods only)
· Susan G. Komen Breast Cancer Foundation donation program (www.cellphonetradeins.com, iPods only; cell phones also accepted)
· eBay Giving Works, donation to a variety of local charities (givingworks.ebay.com, all MP3 players)

TV, DVD players and stereos

· My Green Electronics, to find local electronics recyclers as well as a data base for environmentally friendly products (www.mygreenelectronics.org)
· Freecycle, to find a local reuse group (www.freecycle.org)
Besides e-waste, you can go to earth911.org and enter the type of “trash” as well as your zip code to find places nearby that either recycle the material or dispose of it safely.

The above information is thanks to an article in this week’s Morgan Hill Times. I thought it was good information and worth spreading the news. Maybe if we make it very easy to recycle, it can become a life style out of choice (while we still have a choice).

Chain Emails and Snopes.com

2008-11-21T08:40:00.000-08:00

Chain Emails and Good Intentions!

The following information was sent to me by my good friend, Gretchen Merrick. I am often the recipient of chain emails and have looked for a gracious way to let folks know this isn’t something I want to participate in. Aside from the time element, I have never felt comfortable with the computer safety element in this day and age of computer viruses. So I was very happy to have the following information:

Advice from Snopes.com -

1) Any time you see an E-Mail that says forward this on to '10' of your friends, sign this petition, or you'll get bad luck, good luck, or whatever, it almost always has an E-Mail tracker program attached that tracks the cookies and E-Mails of those folks you forward to. The host sender is getting a copy each time it gets forwarded and then is able to get lists of 'active' E-Mails to use in SPAM E-Mails, or sell to other s pam mers.

2) Almost all E-Mails that ask you to add your name and forward on to others are similar to that mass letter years ago that asked people to send business cards to the little kid in Florida who wanted to break the Guinness Book of Records for the most cards. All it was, and all any of this type of E-Mail is, is a way to get names and 'cookie' tracking information for telemarketers and spam mers - - to validate active E-Mail accounts for their own profitable purposes.

You can do your friends and family members a GREAT favor by sending this information to them; you will be providing a service to your friends, and will be rewarded by not getting thousands of spam E-Mails in the future!

If you have been sending out (FORWARDING) the above kinds of E-Mail, now you know why you get so much SPAM! Do yourself a favor and STOP adding your name(s) to those types of listings regardless how inviting they might sound!You may think you are supporting a GREAT cause, but you are NOT in the long run. Instead, you will be getting tons of junk mail later! Plus, we are helping the spam mers get rich! Let's don't make it easy for them!

Also: E-Mail petitions are NOT acceptable to Congress or any other organization. To be acceptable, petitions must have a signed signature and full address of the person signing the petition. Read the full story here: http://www.snopes.com/inboxer/petition/internet.asp

Let me know if you appreciated this information and any comments you might have!

Good Faith Estimates

2008-11-20T08:56:00.000-08:00

Final RESPA Reform Rule -

The United States Department of Housing and Urban Development (HUD) has published its final RESPA reform rule. Included is a new standard Good Faith Estimate (GFE) that lenders and mortgage brokers will be required to provide to consumers. The purpose of the standard GFE is to provide homeowners with clear loan terms and costs from different lenders that can be easily understood and compared. HUD also has created a new page on the HUD-1 Settlement Statement to help homebuyers better understand what they are being charged at closing and how these charges compare to the GFE issued by their lender. Unfortunately, this will not go into effect until the beginning of 2010.

My 2 cents - I understand loan charges and I have often been mystified by some of the good faith estimates I have seen in the past. I like the idea of a uniform estimate so consumers can easily compare different lenders. Also, ask your realtor to work up an estimated net sheet of your own for all your closing costs. This will reinforce the information you are getting from your lender as well as put perspective on all the costs involved.

Mortgage Workout Programs!

2008-11-20T08:54:00.000-08:00

The California Association of Realtors has created several new resources for homeowners seeking information on existing mortgage workout programs. The main lenders that CAR has general guidelines for are the following:

1) HOPE for Homeowners
2) Countrywide Financial (Bank of America)
3) Citigroup, CitiMortgage
4) JP Morgan Chase & Co
5) IndyMac Federal Bank, FDIC
6) Federal Government Loan Modification (Participants include: Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, U.S. Dept. of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, and Wells Fargo.)

Consumer information sheets are available containing detailed information on specific programs. In general, the loan modification programs are intended for primary residences only.

It’s important to understand that mortgage loan modifications typically are handled on a case-by-case basis. Prior to calling a lender, homeowners should have the following information available:

1) Loan number
2) Income information and documentation
3) Most recent mortgage statement
4) Bank statements
5) Letter demonstrating financial hardship

If a lender is not listed above, homeowners may wish to contact their lender to determine if a workout program is available.

You may also want to contact a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA.

Hope this helps! I will continue to provide updated information as it comes my way. Also, feel free to contact me if you want any additional information concerning these programs.

More Statistics

2008-11-19T06:57:00.000-08:00

Chicago Title Statistic Update –

There are currently 281 single family homes actively on the market in Morgan Hill. 58 homes are pending sale (currently in contract) equaling 17% of the market. Out of those totals, there are 54 Short Sale properties with 26 pending sales. REOs have an inventory of 33 listings with 17 pending sales.

Also, 3 transactions closed this past week in Morgan Hill. Out of those 3, 1 was a Short Sale and 1 was a REO.

There are currently 351 single family homes actively on the market in Gilroy. 145 homes are pending sale equaling 29% of the market. Out of those totals, there are 131 Short Sales with 62 pending sales. REOs have an inventory of 91 listings with 57 pending sales.

In Gilroy, 20 transactions closed this past week including 7 Short Sales and 8 REO properties.

Chicago Title has been my title company of choice for many years. They have provided me with the above statistics regarding the percentage of homes selling, including breaking it down amongst Short Sales (transactions where the loan amount is greater than the current value of a home) and REOs (bank owned property). These statistics are from this current week.

My 2 Cents once again – There really isn’t that much different in the numbers from a couple of weeks ago. Inventory is down a little but sales are up a little, at least in Morgan Hill. Traditionally, the market will slow down over the holidays.

I’ll keep you posted!

Monday Update!

2008-11-17T10:25:00.000-08:00

Bank Owned Property in San Martin

2008-11-16T07:13:00.001-08:00

New on the Market in San Martin!

This ranchette has good square footage of 2605 with 5 Bedrooms and 2 1/2 Baths and is located on close to an acre in San Martin at 13985 Sycamore Avenue. It has hardwood floors and a newer roof, shared well and recently passed their septic inspection (according to their agent). As with most bank owned property, they are looking for an as-is sale. Has a bunch of out buildings and is near to 101 but priced at $744,900.

There were 2 recent sales of San Martin homes on about an acre selling. 14005 Harding had less square feet (1802) but better location and sold for $642,000. 1965 Gwinn Avenue also had less square feet but closer (2224) but did not show great and sold for $700,000.

My 2 cents - Could be there is some wiggle room in the price for this ranchette but still it is priced in its range.

The Real Estate Report

2008-11-16T06:50:00.000-08:00

Santa Clara County Home Sales Up Fourth Month in a Row

The following information is from a group that publishes local market trends and is a good overall view of our market:

Sales of single-family, re-sale homes in Santa Clara County were up 44.7% in October compared to last year. Month-over-month, sales fell 8%. Sales continue to be concentrated in the lower-priced cities such as San Jose where the year-over-year sales were up 99.6% and Gilroy where sales were up 372.7%.

Home prices continue to be affected by the bank-owned property that has flooded the market.

The median price continued to slide, down 7.8% from Septemer, and off 35.8% year-over-year.

Inventory continues to decline, falling 8.1% from September, and down 12.1% compared to October 2007.

Condo sales tumbled 10.7% from September, and were down 19% year-over-year. The median price for condos, on the other hand, rose 5.3% month-to-month, but was off 28% compared to last October.

If you are in escrow with one of the new high-limit,conforming loans or you expect to buy a home before the end of th eyear, remember, the new, higher conforming loan limit of $729,750 expires at the end of the year. You must have your loan funded by then. Starting January 1st, the conforming loan limit will be $625,500.

The real estate market is very hard to generalize. It is a market made up many micro markets. For complete information on a particular neighborhood or property, feel free to contact me.

Poppy Jasper Film Festival V

2008-11-14T10:03:00.000-08:00

Tonight is the opening for the Poppy Jasper Film Festival!

The Poppy Jasper Film Festival will be celebrating it's fifth year of giving exposure to young cinema artists and showcasing up and coming talent. The films will be shorts in various genres that are 30 minutes or less in length. The festival not only shows a selection of high quality short films, it also provides workshops on screenwriting and short film making that are open to the public. Also included is a "Women in Film" panel that will include prominent female filmmakers as well as various workshops and filmmaker receptions. You can find the films at the Cinelux Theater at 750 Tennant Avenue and also the Community Playhouse (next to the Morgan Hill Community and Cultural Center) at 17000 Monterey Street. You can go to http://www.poppyjasperfilmfest.org/ for more information. Come and take advantage of this wonderful cultural opportunity right here in Morgan Hill!

Update on the San Martin Incorporation Struggle

2008-11-13T06:31:00.000-08:00

San Martin the City?

I love San Martin. There is a certain charm unique to this area where you constantly encounter surprises such as a field of sunflowers, a growth of beautiful wild roses entwined over a fence, pygmy horses, alpacas or even llamas amidst the constant contrast of new construction and old farm homes. There is a lot of charm and personality to be found here in San Martin. But more than the charm, there are a lot of people who live in San Martin who want to be in charge of their own destiny and turn San Martin into its own city.

According to a recent article in the Morgan Hill Times, San Martin cannot incorporate because it is not financially self-sustaining. The county won’t consider paying for its road maintenance or allowing its independence to further drain county coffers as it seeks cityhood. LAFCO, which stands for the Santa County Local Agency Formation Commission, has been discussing San Martin’s plans to being a city since February 2007. If incorporated, the majority of its revenue would come from property taxes and transient occupancy taxes (hotel taxes) as well as vehicle license fees, sales taxes and a proposed utility user’s tax. Not surprisingly, the issue seems to revolve mostly around money. The county’s general fund could stand to lose $870,000 per year if San Martin incorporates. However, there is a strong contingent in the form of the San Martin Neighborhood Alliance who feels strongly that the people of San Martin will do a better job of preserving the real character of the town than the county will.

The latest update from the Morgan Hill Times reports LAFCO voted 4 to 1 to stop all work on the incorporation process at a public hearing last Friday as well as to prepare a resolution to deny the incorporation based on the proponents failure to pay staff fees. However, supporters of the incorporation are not giving up. You can learn more about what they have to say by going to http://www.smneighbor.org/ and hearing their side of the story.

Any comments?

More Gilroy Bank Owned Properties and Update!

2008-11-12T10:01:00.000-08:00

Here are the more to follow -

9155 Desiderio Way (near Church Street) is a beautiful 3 year old 5 bedroom 3 bath home with 2783 Square Feet on a 5662 Square Foot lot. Most bank owned property sales are "as-is" which means you can still (and should) inspect the property and do your due diligence but the Seller will not be responsible for any repairs (which is basically the price of a good deal these days).

The property on the right is on 860 West 8th Street (near Orchard Drive) and is a 5 bedroom, 2 bath home with 2014 Square Feet on a 6930 Square Foot lot (and is 33 years old). Neither one of these homes jumped out at me as 'screaming deal' but we'll see how long they stay on the market.

Update from Chicago Title this week says Gilroy has 356 active single family homes on the market with 136 currently pending sale. There are 132 short sale properties with 54 in contract and 90 bank owned properties with 54 in contract. I think the following is more significant - 20 transactions closed this past week with 4 of them being short sales and 8 being bank owned properties.

The reason I think this is more significant is although the number of sales has increased throughout the year, the percentage of transactions actually closing is much less than those going in contract to begin with. I will publish those figures on a monthly basis and feel free to comment or contact me if you have any questions.

New Bank Owned Properties in Gilroy

2008-11-12T09:48:00.000-08:00

New Bank Owned Properties on the Market

These 2 properties just came on the market this week. The one on the left is located at 8741 Church Street (near Ronan Ave) and is only 10 years old with 4 bedrooms, 2 1/2 baths and 1829 Square Feet on a 3920 Square Foot lot. This home is in good condition and has high ceilings and hardwood floors and is listed for $397,500 - worth checking out. The property on the right is located at 515 Ronan Avenue (near Wren Avenue) and is 14 years old with 3 bedrooms and 2 baths, 1380 Square Feet on a 5662 Square Foot lot for only $319,900. The home is a single sotry in good condition with a nice side and rear yard with patio - seems priced well.

There were a few more new listings that popped up this week that are also bank owned to follow.

Changing Loan Limits

2008-11-11T10:31:00.000-08:00

Did you see the article by Sue McAllister in the Mercury News regarding loan limits?

A little history – For a long time, loan amounts have been broken down into conforming and jumbo loans. Right now, a conforming loan amount is under $417,000 and usually gets a better interest rate. And yes, you guessed it, jumbo loan amounts are larger than $417,000. Earlier this year, as part of the economic stimulus bill that was put into effect around February of 2008, a conforming jumbo loan amount was created for loans from $417,000 to $729,000 which gave a better rate than jumbo loans but not as good as conforming but provided more opportunities for Buyers.

The conforming jumbo loans will expire December 31st. In Santa Clara County, the maximum for loans backed by Fannie and Freddie will drop to $625,500 as of January 1st, 2009. The new limits are affecting Buyers even earlier than January because many lenders won’t accept applications for conforming jumbo loans unless they can be closed by mid-December. Lois Jones of Bank of America here in Morgan Hill, says if you are depending upon a conforming jumbo loan, you should close your transaction by December 10th of 2008 at the latest.

Feel free to comment or contact me for additional information.

Wake up with Monday Morning Statistics for South County!

2008-11-10T09:24:00.000-08:00