Interview with Donna Byrne

Located just north of 380 and right in between Highways 101 and 280, Peninsula Place was built in 1971 and has a total of approximately 870 units ranging from studios to two-bedrooms.  As far as sales there, there was only one studio sold (at $119,900), five one-bedrooms (between $150-$174K), and one two-bedroom ($235K).  One of my Prudential associates, Donna Byrne, has done a lot business at this complex over the years, both sales and rentals, so I asked her to give me her “take” on things there.

Jean Joh:  So, tell about your personal and professional experience at PP.

Donna Byrne:  I’ve been working with PP since 1989, and I own one condo there that I rent out.

JJ:  What are some of the features at PP?

DB:  One of the best features about PP is that it has private entrances, so you don’t have the hallways like you do with a lot of apartments where you get all the smell and everything like that.  Also, it has one of the lower homeowners’ dues on the Peninsula, which also includes earthquake insurance, which is a nice feature.  The HOA fees depend on the size of the unit – they are about $300 for a studio.  Mine is a 2-bedroom, 1-bath, and it’s $389 per month.

As for amenities, they have three pools, a Jacuzzi, fitness center, tennis courts, 24-hour private patrol, and onsite professional management.  They also have a maintenance department that you can hire to fix things like if your faucet breaks.  It’s only about $47 or $49 per hour, which is pretty cheap, and they do plumbing, electrical, all that kind of stuff.  Also, there’s a clubhouse you can rent out for parties on weekends.

JJ:  And what else does the HOA cover?

DB:  Water & garbage, hot water, landscaping, exterior building maintenance, including the roof, use of all the amenities and common area insurance.

JJ:  Anything else special about PP?

DB:  There’s a social aspect – several BBQs at the clubhouse, bunko night, ping-pong night, etc.  They also have great parking spaces.  In some complexes, you have one assigned parking space and then your guests have to park blocks and blocks away.  But PP has ample guest parking throughout the complex.  If you have a second car, you can even park a car there 72 hours without moving it.

JJ:  Any negatives about PP?

DB:  I think you have to watch the location.  Sometimes the first floor units can be dark and have a mold or mildew problem if you don’t keep it clean.  Some people never open up the blinds or windows, and you might see some mold or window on the windows.  They just need to clean it.  But no problems in terms of the complex itself.

JJ:  What’s the financial situation at PP?  How are the reserves there?

DB:  They have strong reserves right now, haven’t had a special assessment in years and years and years.  The one special assessment that I can remember was when they put in  low-flow toilets about 15 years ago, and they charged everyone about $200 or so.  But dues HAVE been going up every year the last couple years b/c of all the short sale and REOs, about $10-15 per year.

JJ:  Many of my clients ask me if I think the HOA fee is going to go up, and I can never guarantee anything.  Do you think the increases are a trend that is going to continue?

DB:  Until the short sales and REOs are done, yes.  They have a newsletter that comes out every two months, and it lets the owners know how much people are not paying their dues and how much in arrears.  But I know it’s been going down.

JJ:  Any special restrictions, regulations at PP?

DB:  No rental restrictions.  You can have two pets, no size restriction, and you can have cats and dogs.  You have to get permission from the homeowner’s association if you’re going to put linoleum or hardwood on the top floors, but it is allowed.  Years ago, when pergo flooring first came out, they just let people put it in and then the people below complained b/c it didn’t have the insulation, so now you have to put a certain amount of insulation in.

JJ:  Finally, why would you recommend PP over any other condo in the Peninsula?

DB:  It’s a great location, easily accessible to both highways (101 & 280), it’s a few blocks from BART, the SFO airport, a grocery store down the street, across the street from the park, and again, private entrances and low association fees.  It’s a great value.

So that’s a quick overview of Peninsula Place, although I’m sure there’s a lot more that can be said.   If you want to add any comments (especially if you live there) or have any specific questions (if you’re thinking to buy or rent), be sure to do so in the Comments section below.

Special thanks to Donna Byrne for sharing her insights regarding Peninsula Place.  For more information, you can contact her at dbyrne@prucal.com or (650) 296-8986.

Jean Joh
www.JeanJoh.com
“Because Real Estate Is More Than Buying or Selling a House…”

1)      PRICE – this will always be one of the most important issues to a seller, whether you’re dealing with a bank or a “real” seller.  Be sure to look at market activity in the area and then decide how much you are willing to pay for the home.  Just ask yourself: “How would I feel if someone else bid a little more than me and got the home instead?”  Of course, don’t offer more than you feel comfortable with, but keep in mind that you might only have one chance.  Now is not the time to lowball.       

2)      KEEP IT CLEAN – what I mean by this is, try to keep your offer as simple as possible without asking the seller to do a bunch of work on the home.  Home sellers are trying to sell the home with the least amount of inconvenience, especially if you’re talking about a bank-owned property.  Of course, if it looks like you’re going to need to do some work and you need a little more cash upfront, you can negotiate for up to 3% of the purchase price in some closing costs, but be aware that this will mean that much less profit for the seller (hence, you’ve just reduced your edge in terms of price – see tip #1).

3)      TIMING IS OF THE ESSENCE – If you are serious about buying a home, make sure to get pre-approved and have your loan agent and real estate agent get in touch with each other, so that you’ll be in a position to submit an offer as soon as you find the perfect home.  I don’t believe in rushing my clients, but on the other hand, I’ve seen far too many miss out on a purchase because they took too much time “thinking about it.”  I’ve had situations where I submitted an offer the same day it came on market, and the offer was accepted the very next day.

4)      PRESENTATION MATTERS – although the price, terms & timing are essential in presenting a good offer, it’s also important to make a good impression on the seller and listing agent.  All other things equal, it will help sway things in your favor if the offer is presented in a complete and professional manner.  Be sure that your offer includes a cover letter, a pre-approval letter, a copy of your deposit (earnest money) check, and a bank statement showing proof of funds for your down payment.  If the seller provides disclosures, sign them.  If you’re purchasing a bank-owned house and the bank requires you to get pre-qualified through one of its agents, do it.  If you’re dealing with a home owner, you might even consider writing a nice letter introducing yourself and telling them how lovely their house is…believe it or not, this has worked for several of my clients in the past, even when their offer was not the best one in terms of price or terms.

5)      REPRESENTATION MATTERS – find an agent who can assist you with all of the above.  A professional and qualified agent will help guide you through the home buying process and make sure that you have all the resources you need in order to make an informed decision.  He or she will be in contact with the listing agent and help present your offer in the best light possible.

I’d love to hear any additional tips from other agents out there, as well as any insight or experiences of home sellers or buyers out there.  And if you’re one of those people who has been caught up in this “bidding war”, the most important thing would be:  “Don’t give up!”  It’ll be interesting to see what the real estate market will look like in the coming year.

Jean Joh
www.JeanJoh.com

“Because Real Estate Is More Than Buying or Selling a House…”

Unfortunately, though, due to low inventory levels and intense competition, many of them have been beaten out by buyers, often investors, submitting all-cash (or high down payment) offers at prices often much higher than the listing price.  One couple I’m working with has submitted 12 (12!) offers in the last six months, and these offers have been fairly strong, clean offers with the only main drawback of not having a huge down payment.  One of the agents in my office told me she recently lost two clients because they were too discouraged by the process.  So, here’s my open letter of appeal to the home sellers out there:  Please have mercy on the first time homebuyers!

Think back to a time when you bought your first house and how excited you were to be able to own your very own home.  Or if that doesn’t get you, think of a time when no one would give you a break – whether in your career or a relationship – and someone decided to believe in you, which made all the difference.  When you’re looking at all those offers (assuming you do), consider the situation for each buyer, what their motivations are, how they’ll enjoy the home that you’ve (hopefully) enjoyed for years.  Please don’t discount someone just because they have an FHA or VA loan, or even a conventional loan with only 5% down, because they just might be a lot more motivated to make this sale work instead of trying to nickel-and-dime everything.

Okay, so I know that’s not the way things work most of the time.  I understand that ultimately, it will often come down to the bottom line.  It’s hard to resist an offer that promises greater net proceeds for you, and of course, when I’m representing my seller clients, I do my best to make sure they are able to sell their home for the highest price possible.  And an all-cash offer is even more attractive because it generally takes less time to close the sale, and there’s no need to fret over whether a loan will be approved or not.  So no, I’m not asking the sellers out there to just “give away” their property, but if at all possible, perhaps take an extra step to see if there’s a way to at least give an extra chance to the first time buyers out there.  That’s all I’m asking…

And for all you first-time buyers out there, hang in there!  Your persistence WILL pay off someday!

Jean Joh
www.JeanJoh.com

“Because Real Estate Is More Than Buying or Selling a House…”

“SFR” – single family homes

One important statistic is the number of months of inventory.  This is basically when you take the total number of active listings on the market the previous month and divide by the total number of sold or closed transactions in the same month.  When that number is at 3-6 months, it’s what one could call a neutral market.  When more than six months, that means there are a lot of active listings available, and in essence, you’re in a buyer’s market.  But if less than 3 months, the inventory level is low and you’re supposedly in a seller’s market.  As you can see, many areas are hovering just below and above 1.0!

And even though many homeowners might not feel this is the best time to sell their house because of the relatively low prices, the fact remains that multiple-offer situations are becoming more and more common, and many listings are being sold within the first two weeks on the market (unless you count short sales).  I guess this is a good thing for the market overall in that the increased demand and reduced supply will hopefully lead to higher sales prices.  But it’s tough for buyers right now, and many of my clients are getting beat out by all-cash offers above the asking price.  The demand definitely seems to be outpacing the supply, and it’ll be interesting to see how things change in the course of this coming year.  Why do you think will happen next?

Jean Joh
www.JeanJoh.com

“Because Real Estate Is More Than Buying or Selling a House…”

As we walked through the home, the seller answered various questions my clients had and provided much valuable information, but more importantly, she shared different memories and experiences, such as how she and her brother had played in the playhouse in the backyard.  We talked about how my clients’ daughter would enjoy the playhouse for many years and how she would decorate it with her mother.  We heard about the original colors of the bedrooms and the garage and about the friends and neighbors in the area.  All in all, it was a very heartwarming experience, and I almost felt as if I could visualize a torch being passed – one family passing a very special place to another in the beginning stages of what will hopefully be many happy years and memories to come.

Okay, so yes, maybe I can be a little sappy at times, but it really reinforced for me what I’ve come to feel strongly about being involved in real estate – it really is so much more than buying or selling property.

Jean Joh
www.JeanJoh.com

“Because Real Estate Is More Than Buying or Selling a House…”

I’m in the process of helping some my clients purchase a home in Millbrae, and we’re coming across an appraisal situation that has delayed what has otherwise been a very smooth transaction.  Basically, the appraisal came back pretty much at value, but unfortunately, was flagged for a “health and safety” issue as the water heater and furnace are in a section of the garage that is lower than ground level (has a bit of a step down) and doesn’t have a railing for the area.  (BTW, this is NOT an FHA loan.)  Granted, if I were buying the home, I would personally want to address this issue and install some barrier to prevent any accidents, and my clients were thinking to do so after they purchase the home.  On the other hand, the area is not in a thoroughfare but in one corner of the garage that one would not pass by unless intentionally.  In addition, there were two home inspections done on the house, and neither of the inspectors mentioned this in their reports.

Because of the appraiser’s note, there has been a delay of several days, especially as we first needed to figure out exactly what needed to be done (which was not specified in the report), who could do it, when it had to be done (before close of escrow?), then arrange for the work and THEN arrange for the appraiser to come back out to certify the work has been done “correctly”, which is a question in itself, considering that the appraiser is not a building contractor. 

While I can appreciate the need to protect our clients’ interests as much as possible, this type of situation doesn’t quite sit right with me.  As a real estate agent, I was trained early on not to make statements beyond my area of expertise, whether it be taxes, legal matters or structural issues and the like.  It seems to me that unless they have the expertise and training as building inspectors (and I believe FHA appraisers do need additional training and certification), appraisers should stick to their jobs, which is to give an opinion of value for the property, in which case noting a major issue would make sense.  In this particular instance, however, the railing will at most cost a few hundred dollars, and we’re talking about a sale that is over $800K, so I can’t imagine this will affect the value of the property significantly.  But because of this, we’re looking at a delay of over a week and the potential that the lock-in on my clients’ mortgage rate will expire before we can close, costing additional money for an extension.  Just doesn’t seem right…

Anyway, thankful that all parties in this transaction are working together to get this taken care of as quickly and as smoothly as possible.  But I’m very interested in getting feedback from other agents or buyer/sellers (have you had anything like this happen to you?), as well as any appraisers out there who can help provide some insight into this.

For a great blog with an overview on appraisals, be sure to read Kathy Wall’s post:  http://www.prucalvoices.com/2012/02/appraisals/
Also, check out Jay Sondhi’s blog on FHA appraisals:  http://www.prucalvoices.com/2012/02/fha-appraisals-part-ii-the-bathroom-inspection/

Jean Joh
www.JeanJoh.com
“Because Real Estate Is More Than Buying or Selling a House…”

I recently went through a very painful process of trying to get one of the bigger complexes in San Bruno approved for an FHA loan, but in the end, we were not successful and the transaction fell through. There was quite a bit of documentation needed to process the approval, and we actually managed to gather almost everything, but along the way, found out that the association decided they did not want to be FHA-approved and thus would not cooperate with an approval process.  The reason I was told for this is that they had determined recently that a high percentage of homeowners who were in default on their HOA dues were those who had FHA loans when they purchased their units.     I guess the rationale is that those who didn’t have as much money invested in their homes would be more prone to being delinquent on dues or even just walking away from the property altogether.  Personally, I would think that being FHA-approved would expand the range of potential buyers and therefore lead to higher market value for the entire complex, but I can understand the concerns as well.

So while there are some benefits to FHA loans, be aware that you may be limiting your options if you are thinking about purchasing a condo.  There are 5% conventional loans available now, which is something to consider and discuss with your loan agent as another option.

Here’s a great site from the U.S. Department of Urban & Housing Development, where you can look up which condos are FHA-approved:  https://entp.hud.gov/idapp/html/condlook.cfm

“Because Real Estate Is More Than Buying or Selling a House…”

Jean Joh
www.JeanJoh.com

This month’s program will be on Thursday, February 23^rd and the topic will be “Mortgage Workshop:  Finding the right mortgage for each stage of your life.”  Whether you’re a first-time buyer (or know someone who is), thinking about taking advantage of the fantastic rates through a refinance, or a longtime homeowner with built-up equity in your home, there will be something for everyone.

We’re hoping for a big turnout, so if you can sign up beforehand, we’ll be sure to save you a seat.  Even if you don’t have a chance to sign up, feel free to just show up and gain some valuable information.  Hope to see you there!

For more information and to sign up, go to:  http://www.prucal.com/speakerseries.aspx

Jean Joh
www.JeanJoh.com

“Because Real Estate Is More Than Buying or Selling a House…”