Lee Sells More

South San Francisco Unified has the best Graduation rates in San Mateo County

2013-04-24T20:43:00.001-07:00

Being in Real Estate I get requests to live in the best school district. They look at the API scores (http://www.cde.ca.gov/nr/ne/yr12/yr12rel96.asp).
I am married to a school teacher for 35 years. Parents cannot expect that living in a good school district to manufacture Stanford Graduates. I believe teachers are important but parents and family are more important. You must lead by example. You go to work everyday, and they learn to go to school every day. When your children come home you ask what they learned, review their homework assignments, talk to them about the day, help them with their homework assignments, get help if they need help and you are involved. This needs to be done at all ages. Yes they way you approach the subject needs to change, but cannot be eliminated.

I just read in the San Jose Mercury News (http://www.mercurynews.com/bay-area-news/ci_22987359/california-graduation-rates-climb) that South San Francisco Unified School district had the highest graduation rate (94.1%) in all of San Mateo County. It was almost the same as our southern neighbor Palo Alto (94.6%). South San Francisco actually had a lower drop out rate (3.0%) than Palo Alto (4.7%) Please feel free to view all the numbers of your choice at (http://dq.cde.ca.gov/dataquest/) These are phenomenal numbers considering the fact you don’t have to pay a $1,000,000 for a home. Homes in South San Francisco are in the $550,000- $800,000. If you are interested in buying a home in South San Francisco give me a call at 877-Lee-Sells

San Mateo County Schools Graduation Rate % Drop Out Rate %

             Cabrillo Unified                                    85.2                                           9.1
             Jefferson Union High                         88.7                                           8.2
             La Honda Pescadero Unified           80.8                                           7.7
            San Mateo Union High                        90.3                                           6.6
             South San Francisco Unified            94.1                                          3.0              Countywide                                            83.3                                         11.0

    Several Years ago, I wrote about the Monte Verde Elementary School winning a grant from Google. http://www.prucalvoices.com/2011/06/monte-verde-student-wins-doodle-for-google/

Visit my website for more info: www.LeeSellsMore.com

Oh Where Oh Where Has All of the Inventory Gone???

2013-04-04T22:08:00.001-07:00

The lack of available homes for sale along with the strong job market bringing lots of qualified buyers are driving prices up in San Mateo County. Inventory of available homes is down substantially in San Mateo County as compared to a year ago.

I think this might be the new Real Estate environment for years to come. I say that because the recession we just got out of has scared a lot of people. It has made them be more conservative financially. In my opinion that is a good thing for the long term. Similar to when our parents or grandparents went through the depression. That thought stayed with them for a lifetime. In the past people owning an $800,000 home would step up to a $1,200,000 home or the person with a $500,000 home to $800,000. Yes people are working today in San Mateo County but they remember just a few years ago their job and home were in jeopardy. When the thought of moving up to a larger home with larger payments comes up, it gets shut down very quickly. People are staying put, they are comfortable, their home is good enough, they do not want to take the risk, they don’t want to live for their mortgage, and they want to save for that rainy day. I think that thought will stay with us for quite a while.

Seniors used to be a good portion of sellers and that is decreasing. Seniors are remaining in their own home longer, because they are healthier or by having live in assistance. Some are choosing to rent it out rather than sell.

In the last few years when the economy was not as strong and homeowners were not able to make the payments, foreclosures and short sale made up 35-50% of local sales. I am very happy to say that era is over, gone, finished. Our San Mateo County employment is very strong and with rising prices most people have equity in their homes and can make payments.

In summary we have lost three major home sellers: the move up seller, the senior, and the banks. I believe we have to adjust to a new Real Estate environment. I do not see a major change in the forefront.

To home sellers on the border line of selling or not selling, I suggest contacting your real estate agent for a value and then discussing with your options.

To home buyers facing multiple offers and all cash buyers; I say stay with it! Find a good agent that knows the area and the other agents. Everyone wants a deal and today the deal is interest rates. They are at their lowest point in the last 4- years. Don’t pass it up. Home ownership is the first step to financial freedom.

Please do not hesitate to contact me with any questions relating to buying or selling in San Mateo County. 1-877-Lee-Sells.

South San Francisco Rejects Inspection Ordinance

2013-01-21T21:26:00.001-08:00

South San Francisco Code Enforcement has been requiring inspections of homes at time of sale.

It originally began as inspections only for smoke detectors and water heaters.

It expanded into an inspection for building permits. It was beyond health and safety concerns.

Due to an outpour of concern from Residents and the San Mateo County of Realtors, on Jan, 16 South San Francisco City Council voted to "Table" the issue of Point of Sale Inspections. Mayor Pro Tem Karyl Matsumoto said the issue is "dead".

I thank you for your support in defeating this.

As of now the inspections are no longer required although if you would like I do believe the city will inspect your home at no charge if you request it.

For further information:

http://www.smdailyjournal.com/article_preview.php?id=1761730

http://samcar-updates.blogspot.com/2013/01/south-san-francisco-city-council-again.html

It is still required for South San Francisco Home Sellers to perform a sewer lateral inspection and to meet compliance prior to a home selling.

LeeSellsMore.com

New Laws and Taxes for Home Owners and Investors for 2013

2013-01-21T20:24:00.000-08:00

There is no change as of now to the Mortgage Interest Deduction!
Capital Gains rate remains at 15% for incomes up to $400,000 for single filers and $450,000 for joint filers. Over those limits capital gains tax increases to 20%.
As a single filer selling your primary residence you are still entitled to $250,000 of tax free gain and $500,000 for joint filers.
Estate Taxes are exempt from estate tax if the estate is valued less than $5,000,000 for single tax filers and $10,000,000 for joint filers. Above those limits the tax rate increased to 40% from 35%.
If a portion or all of your mortgage debt was cancelled relief is extended through Dec. 31, 2013.
3.8% tax on investment income begins now. It applies to home sales, interest, dividends, capital gains and net rents. This is a very complicated tax. If you are selling your primary residence you are still entitled to the $250,000/$500,000 tax free. This affects only those with $200,000 of AGI or $250,000 for joint filers.
Mortgage Insurance premiums remain deductible for tax filers making less than $110,000.
15 Year Straight-line cost recovery on leasehold improvements is extended through 2013.
Energy Efficiency Tax credits remains in force through 2013.

For any of the above Tax issues, I strongly recommend speaking with your tax advisor.
New Rental Property Laws
AB 1679 – Allows return of security deposits directly to a bank account designated by the tenant.
AB 1925-Limits tenant relocation costs in San Francisco to $275.00 per day.
SB 1055- Prohibits a landlord from requiring Electronic Funds Transfers as the only type of payment.
SB 1229-Prohibits a landlord who allows a pet to require that the pet be declawed.
SB 1191-Requires a property owner (1-4 units) who has received a notice of default to inform a prospective tenant.
SB 1953-Prohibits a Landlord from proceeding with an eviction if the above notice compliance has not been met.
AB 2521-Increases the threshold for tenants’ abandoned property from $300.00 to $700.000 before requiring a Landlord to take additional steps to dispose of the property.
AB 1186- Eliminates frivolous suits over Building ADA Accessibility.
AB 2610- Requires a 90-day notice on month to month tenancy on foreclosed property and requires that a lease be honored to the end of its term, unless sold to a buyer who will occupy the home (some other exclusions apply)
AB 1394- Requires before Jan. 1, 2016 a smoke alarm be installed in each bedroom. As of Jan. 1, 2013
Carbon Monoxide Detectors are required in all Single Family and Multi-family properties.
On January 16, the South San Francisco City Council unanimously rejected a proposed ordinance mandating private property inspections before the city would allow residents to sell their home.

lee@leesellsmore.com

Investing 101

2012-05-15T22:09:00.000-07:00

Recently Prudential Cal Realty continued its speaker series with Investing 101 with guest speakers Ron Ricard of Investment Property Exchange Services (http://www.ipx1031.com/regions/western/rep.aspx?id=5&region=2&office=0), and Michael McNair of Ira Services Trust Company (https://www.iraservices.com/)(and a panel of Prudential Realtors (http://www.prucal.com/) completed the speakers.
We learned that the best way to acquire property is from inheritance. Much better than receiving it as a gift. When you inherit it, your cost basis is the current market value. If you receive the property as a gift you’re cost basis is the gift givers basis. Cost basis is used when calculating the capital gains tax due when you sell.

Another good method to acquire real property is by exchanging one property for another. With that, capital gains tax is deferred. Although the language is “like property for like property” it is a very vague term. You can sell vacant land and buy a single family home; you can sell a 10 unit building and purchase several single family homes. You can sell a single family home and purchase several condominiums. You cannot live in any of the properties for at least year. Please keep in mind that capital gains tax is deferred but not waived. But there is no limit on how many times you can perform a 1031 Tax Free Exchange.
We were told that Capital Gains tax will be increasing effective January 2013. If you are considering selling and not doing an exchange do it this year and save yourself a 4%.
Remember it is not what you earn it is what you keep and that leads us to the next speaker.
Michael McNair explained to us we have alternatives to the stock market investments for our Retirement Plans. It is called a Self-Directed IRA. With a self-directed Ira one can invest in Real Property, precious metals, deeds of trust and more. Most people using a self-directed IRA to purchase real estate pay all cash. By holding real estate in your IRA, the positive cash flow and appreciation when realized is tax free. That is important today as we learned that for the first time in maybe 20 years one can invest in Bay Area Real Estate and expect a positive cash flow with a 25% down payment. Not only are home prices at incredibly low prices, rents are incredibly high. That combination along with record low interest rates has created “The Perfect Storm”. Great cash flow and great potential appreciation for your Retirement years.

The Prudential agents told us some of the best returns to adding value is still curb appeal and that is to sell or rent. Entry doors, double paned windows and a deck addition added some of the best value. For other value added improvements please visit http://www.remodeling.hw.net/2010/costvsvalue/division/pacific/city/san-francisco--ca.aspx.
The Prudential team also said to limit your management time, screen your potential tenants well. Getting the right tenant can make you a lot of money and maintain your sanity.
Be Sure to attend our upcoming Speaker Series:
Thursday May 24: Estate Planning: How to Protect Your Real Estate Investments
Marc Weissman, ESQ., Weissman & WeissmansJoseph Galligan, CPA, Galligan, Thompson, & Flocas
Trust vs. Will s Transferring to Children
Move and Keep Your Property Tax Proposition 58, 60, & 90
Tax Consequences & Benefits
Thursday June 28: A Seller’s Market??? Home Selling 101: Preparing your Home Sale
Pricing to Achieve Maximum Values Costs Involved In Selling (What is my bottom line?)
Sell or Rents Moving Up? Moving Down? Cashing Out? How To Keep Your Tax Basis
Cost-Effective Upgrades (To Remodel or Not to Remodel)s Inspections and Appraisals
Marketing Your Property (Open House, Home Warranties, Internet, Staging)
Marketing Your Prop
For to register go to speakerseries@prucal.com

“It is Better To Own Real Estate and Wait than Wait To Own Real Estate”
www.LeeSellsMore.com

It is a Seller's Market on the North Peninsula of the San Francisco Bay Area

2012-03-17T11:59:00.005-07:00

There is a lack of homes for sale on the market today. There are few foreclosures and not many short sales to bring down the value of your home. This might be the time you were waiting for. Prices are inching up ever so slightly and well-priced homes in clean, decent, condition are selling quickly with multiple offers above the list price. I think it might be time for you to talk with your Real Estate Consultant. Sunday Open Homes are over flowing with buyers. They want to buy now with the lowest interest rates ever. With the low interest rates they are approved for a higher priced home than previously. We are going into the prime spring and summer selling season. Please feel free to contact me to discuss the market, your home’s value, and your options. I also help homeowners owing more than the home is worth. I am a certified Short Sale and Foreclosure Resource.

Please look at these numbers. I don’t run these numbers often. I am in the market every day and I am amazed at these numbers and the major change from last year. A 60% decrease in the number of homes for sale. An average of 13 days for a home to sell! WOW!!!

Active Active Sold in Days on market Current
Mar. 2012 Mar. 2011 2012 for listings in 2012 months’ supply

San Bruno 25 87 33 14 1.7

SSF 32 125 40 12 1.9

Daly City 51 204 79 11 1.5

Millbrae 17 41 15 13 2.75

Burlingame 38 55 19 11 4.75

San Mateo 73 165 83 17 2

Based on these numbers we are in a seller’s market. 3 months of supply is considered an equal market for buyers and sellers. These numbers were gathered from the MLS and Sam Car on Mar. 11, 2012

"It is Better To Own Real Estate and Wait, Than Wait To Own Real Estate"

Thinking of Refinancing?

2012-02-20T19:35:00.000-08:00

With the lowest interest rates ever, have you been thinking of refinancing?

There is a lot more to it than just the rate.

How much of your current payment is going towards principal?

Want money for remodeling, college, investing?

Should you pay down your loan?

Should you go with a 30 year loan or the 15 year Fixed rate or the very tempting 5 year rate?

I invite you to join us at a Complimentary Mortgage Planning Workshop.

NO SELLING!

Just a discussion on Finding the Right Mortgage For Each Stage of Your Life.

What is the right mortgage?

When should I refinance?

Should I consider a reverse mortgage?

Mortgage Planning Workshop

Thursday Feb. 23 at 6:30 PM

Millbrae Library, Meeting Room A, Civic Center Plaza Millbrae

Free Parking and Refreshments

For Reservations call 650-871-3200 or email speakerseries@prucal.com

Thinking of Refinancing?

2012-02-20T18:42:00.001-08:00

With the lowest interest rates ever, have you been thinking of refinancing?

There is a lot more to it than just the rate.

How much of your current payment is going towards principal?

Want money for remodeling, college, investing?

Should you pay down your loan?

Should you go with a 30 year loan or the 15 year Fixed rate or the very tempting 5 year rate?

I invite you to join us at a Complimentary Mortgage Planning Workshop.

NO SELLING!

Just a discussion on Finding the Right Mortgage For Each Stage of Your Life.

What is the right mortgage?

When should I refinance?

Should I consider a reverse mortgage?

Mortgage Planning Workshop

Thursday Feb. 23 at 6:30 PM

Millbrae Library, Meeting Room A, Civic Center Plaza Millbrae

Free Parking and Refreshments

For Reservations call 650-871-3200 or email speakerseries@prucal.com

After Christmas Sale, – Bay Area Homes up to 60% off

2012-01-29T14:16:00.001-08:00

That is a big statement. Macy’s, Target, Wal-Mart and all most other stores put their products on “After Christmas Sales”. Home Sellers in San Bruno, South San Francisco, and all over the San Francisco Bay Area have put their products on the “After Christmas Sale”

I have randomly selected two recently sold homes to use as an example.

3691 Exeter Dr., a 3BR/2Ba. San Bruno home just sold on Jan 18, 2012 for $452,000 it also sold on May 9 2003 for $600,000. That results into a 36% savings in monthly payments. Look at the numbers.

3875 Carter Drive, #106 a 2Br/2Ba. Condo in South San Francisco sold on Jan 4, 2012 doe $277,000 and in April 25, 2006 it sold for $550,000. A 59% savings. Look at the numbers.

As you look at the numbers please note the lower down payment required, and the lower property tax. Both due to the lower home price. You save all around. Numbers are deemed reliable but not guaranteed.

	3691	Exeter Dr.	San Bruno	3875, #106	Carter Dr	SSF
	2012	2003	Difference	2012	2006	Difference
Purchase Price	$452,000	600,000	25%	277,000	550,000	50%
Down Payment	90,400	120,000		55,400	110,000
Loan	361,600	480,000		221,600	440,000
Interest Rate	4.25	5.75		4.25	6.5
Principal and Int.	1726.	2801		1090	2781
Property Tax @1.1%	415	550		254	504
Monthly Payment	2140	3351		1344	3285	59%

I selected these properties randomly. You might find savings greater or lesser. I want to point out to you by using real numbers the “Perfect Storm” has arrived; Low interest rates and low home prices. In the past if rates went down prices would go. This is an opportunity of a lifetime. If the I Pad was on sale like homes are on sale you would be on line at 4AM. For all of the potential buyers waiting for the right time, this is your wake up call. The time is right. Ken Rosen of the Fisher Center at UC Berkeley says “This is the best time to buy a home in 30 years”

Considering buying or want to learn more call your favorite Realtor or come to my Free Home Buying Seminar. Click here for more info and registration.

"It is Better To Own Real Estate and Wait, Than Wait To Own Real Estate"

San Bruno Eye Sore is about to Go

2012-01-15T16:24:00.001-08:00

The Treetops apartments on Skyline and Sharp Park broke ground for renovation. (It’s about time)

I thought you would be interested.

7 years after being closed down, renovation will begin and is scheduled to be completed by summer of 2013.

for more information Click Here

http://www.mercurynews.com/san-mateo-county-times/ci_19731829

The San Bruno Ave. Caltrain Grade Separation Project is moving along. Can’t wait for completion.

Completion is scheduled for the end of this year. We'll see.

for more information Click Here

http://sanbruno.ca.gov/pw_proj_current.html#streets

I will be hosting a Home Buying Seminar. If you are in thinking about buying I think you will find it quite helpful.

for more information Click Here

http://leesellsmore.com/RealtorWebPage?custompage_id=1567686030

Lee Ginsburg on choosing a home loan

2011-12-23T22:16:00.000-08:00

Do I Need An Agent?

2011-12-04T13:02:00.001-08:00

I was at a recent home buying workshop and someone asked if she needs an agent.

In the Bay Area the buyer does not pay for the agent to help them find a home, help them negotiate; walk them through the process, etc. The buyer also does not pay the agent for helping them digest the comparable properties, or get inside information concerning the home or the comparables, educate them on the neighborhood, and more. The buyer never pays the agent anything. The seller’s agent pays the buyer’s agent for assisting them in selling the home, but the agent has a fiduciary duty and obligation to their client, the buyer.

So why wouldn’t you want someone to do all the dirty work, to bounce ideas off of, and to pick their brains with no cost to you.
Every transaction is different. The buyer’s agent does all of the above and more depending on each individual situation.

The most important task the buyer’s agent performs but hardly mentioned, is helping the buyer maintain their emotions. I have seen buyer’s get so excited about a home that they would pay anything for it. Well maybe not anything but more than necessary. A good agent will protect the buyer by making them see reality. On the other hand they might be offended by the seller’s response and might react by cancelling the transaction or respond negatively and blow the deal. An agent is the buffer.

An agent will help the buyer see through the seller’s messy home to see the bones and layout of the home. An agent will keep the buyer focused on the purpose of buying a home, facing reality and prevent them from getting sidetracked. I remember helping a newly married couple with a baby purchase their first home. They liked the well decorated home in a not so good area. They were not familiar with the area. They were prepared to write an offer and I did not want to discourage their enthusiasm. I suggested on the way home we drive by again. We did and they calmed their emotions and changed their thoughts on their own.

Even in this age of the web, Real Estate is still a relationship business. An experienced agent has contacts and often can find out about the seller’s bottom line, other offers, and the true selling price of the comparable homes (not necessarily the sold price in public records). An offer from an experienced agent with a good reputation will be reviewed more seriously than a part time agent or an out of area agent. An experienced agent in the area is familiar with the customs of the area. They are familiar with the area. I know of an instance that a buyer got very excited about a home with an empty lot next door. The buyer was excited until their experienced agent told them previous to the empty lot a home very similar to the one they are looking at sat there. An experienced agent with a good reputation among other agents and familiar with the area and has a lot more to offer than the internet or a part time realtor friend. Hope you don’t mind another quick story of a buyer working their part time realtor friend. The agent not understanding the loan the buyers were getting requested a $15,000 credit from the seller. Due to the way the contract was worded the buyer’s lender would only allow a $5000 credit and the seller received the $10,000 difference.

I ask the buyer or seller for that matter thinking of representing themselves or using a friend: Would you ask a first year med student to operate on you. You know what they say about attorneys: It is a fool whom represents themselves.

Please remember a good experienced professional agent is on your side, can save you a lot of money and will only “survive” by selling you a home. They will make a good living by selling you, your friends and family a home. They are here not for a one time deal but to transform you the buyer into a raving fan whom will recommend them to others.

To learn more about me and the home buying or selling process please go to: www.leesellsmore.com

Happy Thanksgiving!!!

Dates to Remember

2011-11-04T12:13:00.001-07:00

This Saturday Night Nov. 5 - Turn Your Clocks Back
Remember to turn your clocks back an hour on Sat. night so you’re in sync when you awake for your Sunday morning routine. You get an extra hour of sleep. It is also a good time to change your batteries in your smoke and carbon monoxide detectors.

Thursday Nov. 17 -6:30 – FREE Information Workshop on Energy Rebates -180 El Camino Real, San Bruno

Energy Upgrade California, a statewide program launched in March that provides rebates to homeowners for carrying out home energy efficiency retrofits with approved contractors.

The American Recovery and Reinvestment Act and utility ratepayer funds, is offering a Rebate for Energy Upgrades, The program is a partnership between the California Public Utilities Commission, California Energy Commission, Department of Energy, San Mateo County and PG&E. San Mateo County has recently announced that it will be doubling the program’s rebates. San Bruno is offering a Third Rebate. If you are considering replacing a Hot Water heater, Furnace, Windows, Roof, or adding insulation or solar this is the workshop you should not miss. You will learn how to reduce your energy costs by up to 40% and have someone else pay for the upgrades.

For More Information follow the links:
https://energyupgradeca.org/overview

http://www.co.sanmateo.ca.us/Attachments/cmo/pdfs/Energy%20Upgrade/FAQ.pdf

http://sanbruno.patch.com/articles/does-your-home-need-an-energy-upgrade
http://www.SDIHomePerformance.com

Thursday Nov. 17, -2-5PM - Free Home Buyer Workshop -
College of San Mateo, 1700 W. Hillsdale Boulevard, San Mateo, Bldg. 10 - Room 193
The San Mateo Association of Realtors will be hosting this workshop to help you understand the basics of how to buy a home - even if you’re not at that place in life yet – Home Ownership is still the key to reaching Financial Stability and in achieving the American dream. Now is the “Perfect Storm” with low interest rates, low housing prices and low down payments. Professionals in banking, title, credit, law and real estate will provide knowledge and interact with the public on the basics in planning for homeownership. No pre-registration required.

For Additional information follow the link: www.samcar.org/homebuyerworkshop

"It is Better To Own Real Estate and Wait Than Wait To Own Real Estate"

www.leesellsmore.com

Good Article on Light Bulbs

2011-10-02T21:41:00.001-07:00

I just read this article on light bulbs.

I went to Orchard Supply recently to purchase a light bulb and left with a head ache.

I wish I had this article and hope you find it helpful.

I am not able to remember it all so I am going to print out a copy next time I need a light bulb.

follow the link http://tinyurl.com/3ekxzfy

Great Loan Options are Here!!!

2011-08-28T17:34:00.001-07:00

Dear Homeowners and Potential Home Buyers,

I want to let you know of a great opportunity. Interest rates!!!

Interest rates are at record lows. We have been hearing that for a few years and our government plans to keep it way for a few more. With that said mortgage interest rates do fluctuate daily.

Many people think loans are difficult to get. That is a misnomer. Just prove you can afford the payments and you get the loan. The bank might ask lots of questions and request lots of papers but they are willing to offer you a loan and guarantee to hold the same price for the next 30 years. Do you know of another product or service that guarantees the price for the next 30 years?

30 year fixed rates today are 4.25-4.5%. For your knowledge a 1% increase will affect a $500,000 loan by about $300. A 10% price adjustment will affect your payment by about $250.000. I am trying to show the influence of interest rate on your monthly payment.

Many people believe you need 20% down payment or equity for refinancers to get a loan. Another misnomer, that is not correct. With all that has happened in our banking system it is unbelievable but you can still obtain a loan with only 3.5% down payment or equity. For homeowners considering refinancing you can get a $500,000 loan if your home is valued at $520,000 or more. For home buyers with $20,000 saved up you can possibly purchase a home valued at $520,000. Not bad. Let me give you some of the caveats. Any loan with less than 20% equity or down payment the lender will require Mortgage Insurance (MI). I have been talking about equity and I want to make sure we all know what equity is. It is the difference between the value of your home less what your loan balance is. Back to Mortgage Insurance; it goes away after you have built up 20% equity. Depending on the loan this 20% equity can be accomplished from upgrades, appreciation or paying down the loan. This is very important to ask your lender. I neglected to mention that mortgage insurance is tax deductible. Depending on your loan specifics Mortgage Insurance is about 1%. Some loans will have an upfront premium as well. Mortgage Insurance and the premium are deductible. Some people have told me they would prefer to save the 20% rather than pay mortgage insurance. I do not believe in that thought. Not many are good savers. Not many have income to support savings of $20,000 or more a year. Please keep in mind, owning a home is saving because with every monthly payment you are paying down the loan. I call it Forced Savings. Also if you buy now and you can still put your savings toward the loan balance to get the mortgage insurance terminated earlier. I am afraid for those people saving for that “20%” that home values will increase and they will need even more savings. Also while you are saving you are throwing out money by paying rent. Rents will continue to increase and you can get your home purchase costs fixed for the next 30 years. In fact it will go do down when the mortgage insurance is terminated. I understand this gets a little complicated. You might get information from someone that purchased 10 years ago and just like cell phones and technology loans have changed substantially. If you think this is something you might be interested or just want more information in I suggest you run and not walk because the 3.5% down loan is a Government backed and there is talk of changes. Call your favorite Realtor or your lender to get the facts on your specific situation.

I do want to bring to your attention a super opportunity for some people. The adjustable rate loan. In a recent Zillow survey 57% of the people questioned did not know how adjustable loans work. You can get a loan in the mid to high two’s fixed for 5 years or so. These are not teaser rates like we had back when things were out of control. These are not negative amortization loans like we had back when. These are loans for people willing to take on some risk in exchange for a low rate. You speak with people who have an adjustable loan for a while and they are thrilled. Their rates go down annually. Today’s adjustable rate loans are really hybrid. They are fixed for a limited time, often 5 or 7 years and then adjust annually. They all have a maximum rate they can increase to and a maximum annual increase. Commonly it is 5% above the start rate. Today the adjustable rate is about 1.5% or more, less than the 30 year fixed. This can be a great loan if you know your income will be increasing, you will be getting an inheritance; you will be relocating or just are comfortable with risk. Not only will your payments be substantially less with this type of loan you can be approved for your “Dream Home”, because some lenders will use the current rate to approve you. This can also be a good option someone refinancing a small balance. A suggestion from a lender I work with is to put the money you are saving on this loan vs. a 30 year loan towards the principal. When the loan adjusts it will be based on the remaining balance. I don’t think many people are aware of the savings with this type of loan.

One more type of loan I want to bring to your attention is the 15 or 20 year fixed loan amortized over the same time. With this loan your payments will be more than the 30 year loan but you will be paying for half the time; saving you in the long run about 30%. This is great for people considering retiring soon. Last quarter Lending Tree notes that 34% of refinancers used this loan. Keith Gumbinger of HSH Associates, a mortgage research company says because rates on 15-year mortgages are so low, some borrowers may be able to refinance to a shorter term without increasing monthly payments

And one more came to my mind. There is an energy efficient loan. With this loan you can have energy efficient improvements (windows, furnace, and insulation) financed for the term of your loan on top of the standard loan. No extra down payment, no qualifying ratio, no appraisal, no extra time and little to no extra costs. Similar to that is the 203K Home Improvement Loan. This is used when the home really needs work and possibly a bank would not even loan on it in its current condition. With this loan your home is appraised and your loan amount is determined as if the improvements are complete. You get the contractor quotes and the contractor gets paid through escrow as the work is completed. I have not been involved with this type of loan yet, but am been very intrigued by it. This does need some extra time and maybe some extra closing costs.

Loans are being offered to people with credit scores in the mid 600’s. The best rates are for loans with 20% down and under $417,000. The rate inches up a bit on loans to $625,500, and then a bit more above that. No matter what your situation is, rates are excellent. Talk to your lender about the different choices. In the Zillow survey 44% of people questioned said they did not have confidence in the mortgage knowledge. Ask Questions please. The guidelines and procedures have changed since the last time you purchased or the person advising you. I think too often people are geared towards the 30 year fixed with 20% down when there are many other and possibly better options. For investors and condominium owners the guidelines are slightly different.

I personally do not do loans. I work with several very qualified, knowledgeable and efficient lenders. Please do not hesitate to contact me or your favorite Realtor for their info or any real estate related concerns.
Here are links I found interesting on loans:
http://tinyurl.com/3jwahf3
http://tinyurl.com/3o8mcs2
http://tinyurl.com/3sdvowx

I would love to hear from you concerning your loan option choice.

Homeowner Special:

San Mateo County is offering to double energy efficient rebates
http://tinyurl.com/3wk4xzm

And now San Bruno is also offering its residents a direct match for the Energy Upgrade rebates, essentially tripling the incentives.
http://tinyurl.com/3c8saas

"It is Better to Own Real Estate and Wait than to Wait to Own Real Estate."

www.leesellsmore.com
Lee Ginsburg

Good New Finally!!! - New Energy Rebates

2011-08-07T18:09:00.001-07:00

Most of us living in San Mateo County are living in homes forty or fifty years old. Older homes are always in need of some repairs or upgrading. I recently heard that San Mateo County is announcing on Monday that they will match some of PG&E’s energy rebates. You can get up to $8000 in rebates. Not sure if you have to rebuild the entire home to get $8000 but here is the info.

These will double the currently offered rebates. Some upgrades might even qualify for Federal tax Credits. I have read there is even low cost financing with income qualifications.

Attic insulation, furnace and water heater replacement, roof, solar energy and more may qualify. It is certainly worthwhile to look into if you are considering doing some work.

Follow the links for additional information.

http://www.smdailyjournal.com/article_preview.php?id=164559&title=Homeowners%20eligible%20for%20big%20energy%20rebates

https://energyupgradeca.org/county/san_mateo/action_plans/property_type

http://www.co.sanmateo.ca.us/portal/site/cmo/menuitem.c62298d126a043af82439054d17332a0/?vgnextoid=3abf1ab5fe4fb210VgnVCM1000001937230aRCRD&vgnextfmt=DivisionsLanding

ATTEND AN UPCOMING WORKSHOP:

San Bruno - Tuesday, August 23 rd 7-8:30 p.m.

Burlingame - Wednesday, August 24th 7-8:30 p.m.

Half Moon Bay - Wednesday, September 14th 7-8:30 p.m.

San Carlos - Wednesday, September 28th 7-8:30 p.m.

www.leesellsmore.com

"It is Better to Own Real Estate Than Wait To Own Real Estate"

Monte Verde Student Wins Doodle for Google

2011-05-25T21:32:00.001-07:00

Our very own Monte Verde School wins big. Monte Verde is in San Bruno but is part of the South San Francisco School District. It serves Monte Verde area of San Bruno and a portion of Westborough area of South San Francisco. What did they win? Monte Verde Elementary School won a $25,000 technology grant and 7 years old, second grade student, Mateo Lopez won $15,000 college Scholarship. This is the results of “Doodle for Google” contest. 107,000 entrants ranging from Kindergarten to twelfth grade and a second grader from our back yard won. San Bruno and South San Francisco residents should be proud of the Monte Verde School and home grown Mateo Lopez. Hurray!!! Congratulations!!!

For additional information please click on the link: http://digitallife.today.com/_news/2011/05/20/6676677-doodle-4-google-winner-matteo-lopez-7

www.leesellsmore.com

Is a Home Warranty Beneficial?

2011-05-25T20:47:00.001-07:00

In a Real Estate transaction quite often the buyer or seller discuss with their agent the cost, the coverage, the pros and the cons of a Home Warranty. Many people think Home Warranty is the best creation since chopped Liver. I am not a fan of the Home Warranty Companies. I have found they try to find any excuse not to pay. With a Home Warranty you must pay a service call of approximately $50.00. The cost of a home warranty from most of the major companies is about $500 with a few options. Let’s say you purchased an older home and needed service 3 times. That would be a cost of $650.00. When I have called a service technician to my home with no warranty the cost is usually $150 for a total of $450 for 3 calls vs.. the $650 with the warranty. If the buyer can negotiate for the seller to pay for it then you come out a winner but if not it is not the best financial investment although it could be very comforting. Please do not get me wrong, I have had a client get a water heater replaced so it can be beneficial.

The following article was in the San Jose Mercury News recently and I thought it had some very good ideas on the search for good Home Warranty Companies.

http://www.mercurynews.com/real-estate/ci_18060185?nclick_check=1

The following are some of the major Home Warranty Companies servicing the San Francisco Bay Area:
http://www.homewarranty.com/ http://homewarranty.ahs.com/?mp=Google&ovchn=GGL&ovcpn=Competitors&ovcrn=sr3_167478364go+fidelity+home+warranty&ovtac=PPC&SR=sr3_167478364_go&gclid=CIWgzfzVhKkCFUgaQgodqk8SoA http://home-warranty.firstam.com/?code=BM51
http://www.orhp.com/
http://www.hiscohw.com/
http://hghw.com/

Is the Bay Area Home Buyer Obsessed with School Scores

2011-02-18T21:35:00.001-08:00

Many homebuyers in San Mateo, San Bruno, Burlingame, Millbrae and up and down the peninsula purchase their homes based on school scores. I am not sure if API, Academic Performance Index, (http://www.cde.ca.gov/ta/ac/ap/ ) scores is an accurate evaluation method to determine a young person’s education. I find the API scores of a school to determine the college you child goes to as reliable as a City’s Median home prices is in determining the value of your home. Homes in a city are varied and encompass a large diversified area just like a school’s diversified student enrollment and have high and low performing students.

Many of our public schools have a large population of intelligent non- English speaking immigrants. Teachers are trained and cater to that specific group and they also teach to the more advanced student by offering enrichment classes, honor classes, etc. Both of my son’s went to a public High School in San Mateo that possibly has the lowest scores amongst the San Mateo High Schools. They both graduated and went to very good schools. In their graduating class several students were accepted into Harvard, Stanford, MIT and more of the top schools. Some of their friends went to a private high school, were not happy, did not perform well and transferred out. A peninsula high school with a rating of 10 has had an epidemic of suicides. Top scores is not the final answer.

I think some parents feel if their child goes to a high achieving school their child will be a high achiever. I believe an educated, happy and successful child comes more from the family and home not from a school’s API scores. A parent must spend quality time with their child as a person and also as a teacher. They must work as a team with the teacher. They must read to them and listen to the child read. They must review homework and make sure it is completed. President Obama said in his state of the union address (http://www.whitehouse.gov/state-of-the-union-2011), "We need to teach our kids that it's not just the winner of the Super Bowl who deserves to be celebrated, but the winner of the science fair."

I believe some home buying parents depend too much on school scores. I think they should also look at the parent participation, the teacher/student ratio, the teacher relationship with the students and parents, the extracurricular classes, sports, clubs, spirit, music, language classes, art programs, fund raising, and more. They should visit the school and sit in on the class. We must keep in mind some people will perform better when they are the high performer amongst their peers rather than an average performer in a high performing peer group. Often a high self esteem will lead to a more successful, happy and satisfied adult. And isn’t that our goal.

Many buyers whom prefer a high performing school are on the right track. They are probably the same parents that will begin the leaning process in their home. They will read, do math, get involved in class projects and in the school. They will bring up their children with the idea education is of vital importance. In my home it was understood that after High School it was college. In today’s home after college it is advanced degrees. As caring parents we must understand our children. Not every child needs to go to college to be a successful adult. Many of the schools are beginning to offer vocational classes again. I applaud that. There are culinary, mechanic, nursing and other very good programs.

As Margaret Lavin writes in the San Jose Mercury news, http://www.mercurynews.com/san-mateo-county/ci_16994346?nclick_check=1 "we need to talk to our children. Often that is difficult as we are working long hours and try to have a life also but tete-a-tete with your school aged children is important."

I will close with a quote from Margaret; “Standardized test scores influence teachers reputations, school funding, and of course Real Estate Prices. Being a brainiac is great, but being personable and well rounded also leads to future happiness and success.”

I would love to hear your thoughts.

www.leesellsmore.com

2010 Remodeling Cost as Compared to Resale Value

2011-02-09T20:48:00.001-08:00

Remodeling Magazine annually researches the cost of remodeling with the help of Home Tech Information Systems. They also research the value remodeling adds with the help of the National Association of Realtors. They put this information together by regions. For a complete report please go to http://www.remodeling.hw.net/2010/costvsvalue/national.aspx

Below are the results for the San Francisco region.
A small difference in the size or scope of a project, or in the quality of finishes and accessories you choose, can dramatically affect the cost.

The “value” of a project at resale is always subject to forces that are difficult to predict. Changing how a space is used may meet the immediate needs of the current homeowner, but may be at odds with what prospective buyers are looking for. How the value of a remodeling project is perceived also depends on a variety of factors that traditionally affect home values, including the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values in the surrounding area are fluctuating. Comparable values are particularly difficult to judge in the current economic climate, in which the effect on the value of surrounding homes of foreclosed properties and short sales are part of the equation. The mere presence of a large number of unsold homes, whether new or existing, well-maintained or distressed, can have a constricting effect on surrounding home values.

The Cost vs. Value Report provides an accurate snapshot of the general housing market, but it cannot be applied accurately to an individual remodeling project for your particular home. Resale value is only one factor among many that a homeowner must take into account when making the decision to remodel. I think the best course of action is to obtain construction cost estimates from reputable local remodelers and then give me a call at 877-Lee-Sells to discuss the value it will add to your home.

Project Job Cost Resale value % recouped

Attic Bedroom $70.938 $74,206 1 04.6%

Bath Addition $54,927 $44,476 81.0%

Bath Remodel $22,014 $22,440 101.9%

Deck Addition $18,636 $18,987 101.9%
(comp)

Deck Addition $15,091 $17,025 112.8%
(Wood)

Entry Door $ 4,197 $3,438 81.9%
(fiberglass)

Entry Door $ 1,546 $2029 112.8%
(Steel)

Family Room $113,274 $109,553 96.7%

Garage Addition $79,104 $64,208 81.2%

Garage Dr. Repl.$1,579 $1,992 126.1%

Home Office $34,574 $21,641 62.6%

Major Kitchen Remodel $71.015 $67,583 95.2%

Minor Kitchen Remodel $25,039 $27,816 111.1%

Master Suite Addition $143,853 $123,003 85.5%

Roof Replacement $28,699 $21,821 76.%

Siding Replacement $14,931 $11,111 74,4

Holiday Shopping for a Home? The next 10 days are Black Fridays In Real Estate!

2010-12-19T00:18:00.001-08:00

Are you serious about buying a home? Do you want to take advantage of record low interest rates and the lowest home prices in 5 years? If you answered YES to either question: Then do it now!!!

Why do I say that you might ask? You have much less competition. The people not so serious are fighting the crowds in the malls, (I hope at my son's store Designers Center at "The Shops at Tanforan") not at open houses. Sellers that have their homes on the market now are serious (desperate). Who wants people coming through their home during the holidays? Banks are even more motivated to get rid of these homes before the end of the year. The sooner they get them off their books the better. Now that the foreclosure moratorium is basically over they will have plenty more to sell. They want to get rid of these now. Make an offer. They will listen. They might even gift wrap it for you at no extra charge.

I suggest you hire a personal shopper to do your Christmas Shopping and contact your favorite Realtor to help you buy a home now! I congratulate you in advance. Merry Christmas and Happy House Hunting!

www.leesellsmore.com

Is the Giants Victory Similar to Buying a Home?

2010-11-14T21:15:00.001-08:00

How can the baseball World Series be anywhere related to Home Buying you may ask. Let me explain…

The San Francisco Giants won as a team, and that is the only way to successfully buy a home. You need a team. A great mortgage broker; Tim Lincecum. An excellent Realtor, who is not just a real estate agent (follow this link: http://ow.ly/39GSe); Cody Ross. A hardworking assistant; Edgar Renteria, an experienced inspector; Aubrey Huff, a dependable escrow officer; Busty Posey, and of course a reliable management team; Bruce Bochy.

Now you see the importance of a team. Without one player you may not get the home. A good Realtor has a good team.

Another correlation to the Giants TEAM Victory is the Team of Low Interest Rates, Low Prices, and Motivated Sellers. That leads to the Victory of Closing on a Home; Brian Wilson.

www.leesellsmore.com

Free Home Buyer Seminar

2010-10-27T21:41:00.001-07:00

Home Buying Seminar

Wednesday Nov. 10 - 6:00 P.M.
Location: 180 El Camino Real, San Bruno
Hosted by Lee Ginsburg and Wells Fargo Bank

One Person’s Loss, Is Your Window Of Opportunity!!!

·Learn How To Take Advantage of Today’s Real Estate Market. Yea!
· REO’s, Bank Owned Property, Foreclosures, Short Sales
· Qualifying For a Loan in Today’s Market. It’s not that bad.
· Low Down Payment Programs. Try 3.5% Down!
· Understand the Home Buying Process.
· Closing Costs, Inspections, Contingencies, Title Insurance.
· First Time Home Buyer Credits.
·Real Estate Auctions

Complimentary: Parking·Dinner· Home Buying Guide

There is NO CHARGE for this seminar. Pre-registration would be helpful. Guests and Walk-ins are welcomed. 877-Lee-Sells 533-7355 Or email lee@leesellsmore.com

Foreclosure Baloney

2010-10-21T22:44:00.001-07:00

I don't get this foreclosure moratorium stuff.

I don't understand why the press and politicians are putting so much into it. I can assure you the banks are not foreclosing on anyone current on their homes. Many of these home they are foreclosing on are vacant and some inhabitable.

A sad fact I heard recently is many homeowners are losing their homes due to medical bills. That should not be.

Making the banks review additional papers, re-file, and delay the inevitable is only getting revenge and that is not healthy. No good come out of that.

We should be putting pressure on the banks to modify the loans of homeowners who are good, honest, hard working people. Many of these people for whatever reason can't make payments at the current payment but can and want to make modified payments. I don't understand the need for a bank to go to the expense and foreclose on a home with a $500,000 loan and a month later sell the home to someone else for $300,000. The original owners would have been capable and extremely happy to make payments probably on $350,000. The banks would have been $50,000 + expenses better, with less property on the market values would be up protecting their equity in all their portfolio.

I have another idea to deal with this foreclosure cancer. Equity Share. Let the banks lower the principal and they share in the increase in equity with the bank getting the first 25% of any increase. This allows the bank to regain their loss and possibly make a profit. More important it keeps more people in their homes, and creates a lower inventory of homes for sale stabilizing and increasing home prices. With stable and increasing home prices it will eradicate the foreclosure cancer and increase the value of the homes already in the banks hands.

It sounds so simple. Why don't the politicians fight for that rather than trying to get revenge on the bank.

http://www.asianjournal.com/dateline-usa/15-dateline-usa/7268-california-officials-demand-foreclosure-moratorium.html

http://thehill.com/homenews/campaign/124533-foreclosure-moratorium-takes-center-stage-in-senate-battleground-states

www.leesellsmore.com

Investing: Bay Area Real Estate Vs. The S&P

2010-10-06T18:29:00.001-07:00

I personally have been investing in Bay Area real estate since I moved out here from Brooklyn in 1977. I have 75% of my assets invested in Bay Area Real Estate. Most of my remaining assets are invested in the stock market. I was curious which investment has had the best return on my investment over the last 20 years. Bay Area Real Estate has proven to produce an 8% greater return than the S&P over the last 20 years. Quite honestly I was expecting that number to be greater, but I am grateful, that with all of the ups and downs, I have made the right decision.

Let me quickly explain my numbers. I took a $100,000 investment in the S & P in 1990 and compared that to a $500,000 home purchase using the same $100,000, or the standard 20% down payment also in 1990. I am not a statistician so my numbers are rounded off and are deemed reliable, but certainly not guaranteed. These numbers are based on not selling and leaving it invested in an S&P index fund. Let me say if you paid cash for that same $500,000 home you would be substantially better off with investing in the S&P.

Please review the facts and would love your comments.

Year	S&P % CAGR *	$100,000 investment will be worth	Bay Area % Median Price Change *	$500,000 purchase with 20% down payment
1990	-3.42	$96,580	-0.005	$497,500
1991	30.94	$126,462	0.024	$509,440
1992	7.6	$136,073	-0.012	$503,326
1993	10.17	$149,911	-0.004	$501,313
1994	1.19	$151,695	0.022	$512,342
1995	38.02	$209,370	-0.004	$510,292
1996	23.06	$257,650	0.05	$535,807
1997	33.67	$344,400	0.072	$574,385
1998	28.73	$443,347	0.121	$643,886
1999	21.11	$536,937	0.131	$728,235
2000	-9.11	$488,022	0.253	$912,479
2001	-11.98	$429,557	0.046	$954,453
2002	22.27	$525,219	0.086	$1,036,536
2003	18.72	$623,540	0.077	$1,116,349
2004	10.82	$691,007	0.151	$1,284,918
2005	4.79	$724,106	0.115	$1,477,655
2006	15.74	$838,081	0.051	$1,553,016
2007	5.46	$883,840	0.071	$1,663,280
2008	-37.22	$554,874	-0.227	$1,452,043
2009	27.11	$705,301	-0.207	$1,151,470
	TOTAL GAIN	$605,301	TOTAL GAIN	$651,470

Tax consequences and principal pay down really need to be considered to compare real gains.

CAGR is the Compounded Annual Growth Return -http://www.moneychimp.com/features/market_cagr.htm

Bay Area Median Price from CAR Annual Historical Data Summary http://www.car.org/tools/smart/archive/2010ahds/

I consider Real Estate a safer and more conservative investment. The temptation to buy and sell as the market fluctuates while invested in the stock market is much greater than in Real Estate. I believe Real Estate has many other benefits; certainly the tax benefits are great. As an investor you can have a non-cash write off of depreciation, and as a homeowner you can deduct all interest and property taxes, plus you are allowed a tax free gain of $250,000. Picking a stock is much harder than picking a home. Most homes in a regional area appreciate in similar proportions. I quickly looked at San Bruno and San Mateo for the last 10 years and they both appreciated 19%. Not sure if you can say the same for the S&P. You could lose everything if you invest in the wrong stock. Having the discipline not to sell a stock is very difficult. With Real Estate you can never lose everything. Even if it burns down and you have no insurance, the land has value. Real Estate investments are a bit more difficult to liquidate so it is forced savings. Most important Real Estate offers you a home to live in. The cost of borrowing for homeowners comes with the tax benefits above and in 30 years it will be paid in full. The cost of borrowing for Real Estate investors is paid by the tenants and so is the principal payoff.

Many financial advisers believe in diversification; small cap, large cap, international, etc. I do not suggest that for Real Estate Investing. Managing single family homes is different than multi unit buildings and different again from commercial property. Managing properties in different areas even if they are the same type of property does not work either. Different areas have different rent control policies, different laws, and different expenses. I am a believer one should only invest in real estate you can drive to in an hour or two. I heard about a great investment on the east coast. If everything went as planned it would have been a great investment but being 3000 miles away I was not able to control the plan. I am happy to be out of that investment.

I would love to hear your feedback.