Real Estate News Without The Schmooze

Interests Rates Take A Dip

2008-01-08T10:22:00.000-08:00

Long-term mortgage interest rates were down again Friday with the benchmark 10-year Treasury bond yield dipped to 3.87 percent.
The 30-year fixed-rate average sank to 5.57 percent, and the 15-year fixed rate slid to 5.11 percent. The 1-year adjustable rate was down at 5.38 percent.

If you have a loan with an adjustable rate, it may be a good time to look at refinancing.

If you are looking to purchase a home, rates are still historically low.

As always do your homework with a good mortgage broker to look at your particular situation.

www.lisacartolano.com

Is Real Estate In California a Good Investment?

2008-01-04T20:59:00.001-08:00

This article on Zillow provides some perspective when evaluating your return on investment in California Real Estate. Even though values in the state have declined somewhat this past year, a property purchased 5 years ago can see as much as a 56% increase in value and a home property purchased 10 years ago can see as much at 110% increase in value.

Some food for thought if you are considering purchasing property or if you already have.

Here is the link to the article on Zillow: California Real Estate

Buying In the Current Market-- Is It A Good Idea?

2008-01-02T22:13:00.000-08:00

When the housing market slows down, buyers often wait in the wings to wait for a sign that the market has recovered. The problem is the only way to really know when the market has changed is after it already has.

You can't time the market.

A slow market is perceived as an opportunity by some buyers, It often times takes longer for listings to sell and inventory of unsold homes tends to grow. This gives buyers more choice. Typically a buyer will find that when submitting an offer they are not competing with other buyers and are able to negotiate a better deal.

You will want to be careful about what you buy and how you finance the purchase.

A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or prices could stay flat for a period of time which means you won't build equity unless you pay down the principal on the mortgage. If you need to move during a time when prices are soft you may not be able to sell for the price you purchased the home at. To help mitigate this risk, don't buy for the short term. Give careful consideration to the type of mortgage you obtain and avoid riskier types of loans.

A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price, without having to compete with other buyers. If you are purchasing a home to live in and are planning for the long term benefit of home ownership, now is a good time to look.

Happy New Year

2008-01-02T22:11:00.000-08:00

Happy 2008!!

One Fith of Bay Area Foreclosures Were Investor Owned

2007-12-19T09:20:00.000-08:00

I saw this article today in the San Jose Mercury News indicating that 1/5 of all the Bay Area foreclosures were investor owned. Very interesting. Here is the text of the article:
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SAN FRANCISCO—More than one-fifth of the San Francisco Bay area properties that fell into foreclosure this year belonged to real estate investors instead of overextended homeowners, according to a newspaper report.

The San Francisco Chronicle also reported Sunday that one in six of the properties repossessed through September had been owned by people with two or more foreclosures in their names.

Experts say the region's frenzied real estate market and the availability of subprime loans enticed novice and experienced speculators to snatch up properties with hopes of flipping them into a quick return.
The newspaper's analysis of more than 65-hundred repossessed homes and condominiums found both naive investors and perpetuators of fraud among those facing multiple foreclosures. Nearly 70 percent of the investor-owned housing was purchased without a down payment.
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What does this mean? It indicates that although there are a lot of homeowners who are currently strapped and are having a hard time making mortgage payments, a significant amount of the foreclosures are for over-extended investors.

www.lisacartolano.com

Forclosure Relief Plan Unvieled by President Bush

2007-12-07T06:23:00.000-08:00

President Bush has announced a plan to offer foreclosure relief to 1.2 million homeowners.

According to the details outlined in an article today in Rismedia, this plan includes a freeze on low, introductory mortgage interest rates that could increase significantly over the next few years.

The plan has a limited scope though. Only those who are current with their mortgage payments are eligible. It also only covers those adjustable rate mortgages with rates that are set to reset in 2008 and leaves out any who are deemed capable to continuing to make the higher payments and the new higher rate.

According to the Rismedia article some industry experts calling it “a step in the right direction.” This plan includes an agreement with the Bush administration and mortgage industry with the mortgage industry administering the rate freeze and the investors who purchased the loan. The agreement also sets conditions under which rates on certain loans could be temporarily frozen. It isn’t binding, but because it has the support of major investors, it is expected to give loan servicers much more flexibility to quickly rework some loans and direct other borrowers toward refinancing, reports said.

This plan only applies to originated between Jan. 1, 2005, and July 31, 2007, that reset between Jan. 1, 2008, and July 31, 2010.

This aid is only available to those who ask. There is a hotline you can call: 1-888-995-HOPE.

In the Rismedia article Andrew Jakabovics, associate director ofor the Economic Mobility Program, released a statement saying, “It has taken a while, but even the Bush administration, long in denial about the broad negative effects the mortgage crisis is having on individual borrowers, entire neighborhoods, and the national economy, has come around to recognizing that there is a necessary and appropriate role for government in solving the problem. As with other serious crises that have happened on Bush’s watch, the solution is to make it the next administration’s problem.”

He continued, “The five-year freeze is a welcome opportunity for the subset (no more than 30 percent) of borrowers put into suspended animation. But it also fails to address the needs of the people whose rates have already reset or the growing number of borrowers who are creditworthy but have negative equity in their homes as a result of widespread foreclosures and who have no way to get out of their challenging loans. It also does nothing to restore faith in the smooth operation of our financial system, when breakdowns in the credit market can accelerate the economic downturn or contribute to a recession. The administration can and should do more.”

There has been criticism of the Bush administration for not addressing the mortgage crisis in a more timely manner. Bush is now encouraging Congress to pass mortgage relief legislation. Bush is also careful to note that this is not a government bail out with no federal funds being used for the program.

One Warm Coat

2007-12-04T08:55:00.000-08:00

Wildfires Still In the News

2007-11-26T12:29:00.000-08:00

Unfortunately Southern California is still threatened by wildfires. Below is an article from the California Association of Realtors (www.car.org), that links to various articles regarding the current situation in Southern California.

Southern California remains on high alert as the threat of new wildfires competes with the on-going efforts to help those struggling to rebuild after wildfires destroyed their homes and businesses more than a month ago.

A round-up of news articles on the status of all of the Southern California wildfires, legislative efforts to aid the recovery process, and other information is posted daily on the REALTORS® Care pages of C.A.R. online. For more information, go directly to this link on the car website that will forward you to a roll up of different articles related to the wildfires in Southern California CAR Wildfires .

Propositions 60, 90 and 110

2007-11-13T06:12:00.000-08:00

Propositions 60, 90 and 110 relate to those persons 55 and older or severely and permanently disabled.

Proposition 60 was approved by voters in November 1986 allows under certain circumstances the transfer of the property tax base from a primary residence to a replacement dwelling in the same county.

Proposition 90 approved in November 1988 permits the Legislature to authorize each county's board of supervisors to adopt an ordinance which extends Proposition 60 benefits to qualified homeowners outside the county.

Proposition 110 approved by voters in June 1990, extends the proposition 60 benefits to severally and permanently disabled individuals.

An example of this would be a person age 55 is living in a home in LA. The person moves to Berkeley and purchases a home in Berkeley that will be the primary residence. The individual in this case could transfer the property tax base from the house in LA to the house in Berkeley.

There are some restrictions and guidelines that must be met.

1. This is a one time event. Once you transfer your tax base once, you cannot transfer it again.
2. You must apply to have transfer tax base moved from one house to the next.
3. The replacement property must be purchased or newly constructed within 2 years before or after the sale of the original residence.
4. The transfer of the original residence must be a change in ownership which subjects the property to reappraisal at its current market value.
5. The replacement property must be of greater or equal value.

For more details and questions and answers regarding Proposition 60, 90 and 110 you can visit this site http://www.boe.ca.gov/proptaxes/faqs/reappraisal.htm

www.LisaCartolano.com

Cancellation of Mortgage Debt - Questions and Answers

2007-11-08T13:08:00.000-08:00

There have been a lot of question regarding the Cancellation of Mortgage Debt Relief Bill and the Realtor.org has outlined some of the questions and answers in a recent article The full article can be viewed at http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation_qna?OpenDocument

Here is a short synopsis of the article. To view the entire article click on the link above.

Has this law been passed?
No. The House of Representatives has passed a bill, but it needs the Senate's approval, and then the signature of the president.

Current Law: The cancellation of mortgage debt rules apply only to a limited number of taxpayers. The provision is best understood with an example.

Assume you purchased a home for $650,000 with a mortgage of $600,000. Now you need to sell the home, and values in the area have declined and you can sell for only $550,000.
At the time of the sale, the outstanding balance on a mortgage might be, for example, $569,000. In this scenario there will not be enough cash closing to repay the lender the full balance of the mortgage. In some limited circumstances, a lender might forgive the amount of the balance that exceeds the purchase price ($19,000 in this example).

What happens to the seller when a portion of mortgage debt is forgiven? Under current law, the amount of forgiven mortgage debt (the $19,000 in this example), is treated as income, and taxed at ordinary income rates. Thus, the seller, who has experienced a true economic loss, is required to pay tax on this phantom income, even though no cash has changed hands and even though he has experienced a loss.

What about a refinanced mortgage? As currently drafted the provision would apply to either an original or refinanced mortgage.

The provision would also apply to commercial real estate as well.

Why is the law being considered?

Historically real estate has appreciated in value. But as need in some markets recently values have declined. This may be due to an major employer leaving and area or a homeowner needs to sell in a down market due job relocation. It seems particularly unfair to tax phantom income at a time when a taxpayer is in reduced economic circumstances.

There are a lot of mixed feelings out there regarding this potential law. Some will say that the homeowners should have been more prudent when purchasing their home and not overspent. At the same time no could predict the timing for the change in the Real Estate market. What seemed like a great deal a couple of years ago might not look that way right now. This is obviously can be an emotional process for the homeowner if they are facing this situation and potentially a huge financial impact to the lenders who forgive the loans.

There is sure to be a lot of debate over this issue to come in the months to come. It will be interesting to see how the Senate and President react.

Mortgage Crisis Not For Everyone

2007-11-06T19:32:00.000-08:00

I belong to Costco and I was recently flipping through the magazine they send to members, Costco Connection, and ran into an article Mortgage Crisis Not For Everyone.

Of course Costco was trying to sell their services, but they pointed some good reminders.

Mortgage companies are going to continue the shakeout in 2008 that has been observed this year. Despite all of this interest rates are still historically low and there are still competitive mortgages out there to be found.

Of course with the recent changes, there are modifications to the the criteria a buyer must meet to obtain a loan. Gone are the days of the stated income, 100% financing with less than perfect credit.

If you are a borrower with decent credit and some money to put down you are in a great position.

Do Your Homework!

Before looking for a mortgage or to re-finance look at your current situation

Check Your Credit

Take a look at your credit report to make sure there are not any erroneous dings on your credit. By dealing with these issues before you are looking to buy or re-fiance you could potentially increase your credit score and could expand the mortgage options available to you.

Save and Document

Saving for a down payment will tremendously help find you the best loan possible. There are programs out there that do allow for 100% financing but if you have a decent down payment you will have more options

Determine Your Budget

This is tremendously important. You really want to sit down with a reputable loan person who can help you understand the different loan options, the monthly cost of a mortgage, the added expenses of taxes and insurance.

It is imperative that you find a loan person who can and will sit down with you to help you clarify your motivations for buying or refinancing and someone who will be honest and straightforward regarding the process and help you understand the loan you have, as well as understand the monthly costs including taxes and insurance. I can personally recommend Chris Hudson. He is honest, reliable and will spend the time needed to help you understand you loan. He can be contacted by email at chris@myhomeplan.com or on the web at www.myhomeloanplan.com

It is a great time to buy. Being educated is the first step.

Banks Follow The Fed

2007-11-05T10:23:00.000-08:00

In response to the Federal Reserve lower interest rates, Banks are following suite. Institutions including Bank of America, Wells Fargo, and KeyCorp., announced that they were cutting their prime lending rate — for certain credit cards, home equity lines of credit, and other loans — by a corresponding amount, to 7.5 percent.

This also will bring down rates for first mortgages and re-finanance loans.

The Fed indicated they believe that this most recent interest rate cut along with the one in September will be enough to balance the risk of inflation. What this seems to indicate is that the Fed will leave interest rates alone when they next meet on December 11th.

Fed Lowers Rates

2007-11-01T11:21:00.000-07:00

The Federal Reserve lowered rates by .25%

The intention is to promote moderate growth and try to get us back on track after the most recent mortgage "crisis."

The tone of the Fed's meeting led many to believe a future rate cut is not a guarantee. For now, the concensus is the Fed will not cut rates again at their next meeting in December.....further speculation on this will continue with the results of economic data reported between now and then.

For now, this rate cut will immediately affect the prime index which will go down to 7.5% (we were as high as 8.25% a few months ago). First mortgages may dip slightly as well, but it may take a day or so for us to see those results.

In Berkeley Does A Condo Conversion Make Sense?

2007-10-27T10:34:00.000-07:00

Recently I was asked about condo conversions in Berkeley, CA and here is some information that may prove to be helpful.

The question that was posed to me is if a friend and I purchase a duplex together can we convert it to condos so we can have single ownership of our half?

In Berkeley there is a Condo Conversion Ordinance (CCO) that limits the number of condo conversions because by changing the nature of the real estate commodity to a separately owned condo it removes available rental units in the marketplace.

The City regulates condo conversion in Berkeley by:

Application for condo conversions are reviewed only twice a year, so depending on when you are looking to purchase a property, you may have to wait up to 6 months before you can even submit your application for condo conversion.

The process for condo conversion in Berkeley can be a complicated and lengthy process, so you will really need to sit down and evaluate if this is the best option for you. For all the details for applying for a condo conversion and all the requirements that must be met, you can visit Berkeley's Planning and Development site at Condominium Conversions in the City of Berkeley.

In this particular instance where two parties are looking to purchase a duplex together a Tenancy In Common (TIC) ownership may to a viable alternative to the condo conversion.

Any questions? You can contact me at Lisa@LisaCartolano.com or at 510.213.1139

Check me out on the web at www.LisaCartolano.com

Mortgage Cancellation Relief

2007-10-21T20:07:00.000-07:00

For homeowners finding themselves in a situation where they must sell their house for less than they owe, there is some good news.

On October 4, 2007 - The House has agreed to legislation that would provide tax relief when lenders forgive some portion of a mortgage debt. The vote was 386 - 27. Under current law, forgiven mortgage debt is treated as taxable income and taxed at ordinary income rates. The legislation would provide a permanent rule that eliminates the requirement to pay tax on forgiven mortgage debt on a principal residence, up to $2 million. There is no income restriction on those who are eligible for the relief. The revenue estimate for the provision is $1.4 Billion over 10 years. A "pay-for" has been identified that will tighten, but not eliminate, a benefit of current law.

Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139

How Accurate is Zillow?

2007-10-21T15:10:00.000-07:00

Zillow has become a popular site for seller and buyers to take a look at the value of a home. But how accurate is it?

A recent article in the Wall Street Journal had some interesting information regarding Zillow's accuracy:

The Wall Street Journal analysis of 1,000 homes on Zillow found that the "Zestimates" are often good, usually within a few percentage points to the actual price. But when Zillow is bad, it is really bad. Zestimates were off by 25% in 1 and 10 homes and in one case Zillow was off the mark by 2 million.

According to the Wall Street Journel, Zillow executives acknowledge that estimates can be way off in some cases. These estimates are a good "starting point" for people trying to figure out how much a home should cost. Amy Bohutinsky, a spokeswoman for the company states "We don't recommend it as the final word."

Zillow can be quite accurate in some markets but estimates are sometimes hit or miss. Zillow tends to work best for mid range homes in areas where there are a lot of comparable homes. It tends to be less accurate for low and high end homes were there is less data available from comparable sales.

Part of the problem with Zestimates is the data fed to Zillow does not take into account if the house has been remodeled, or if it is a foreclosure or a fixer. Reported prices sometimes are misleading as well because there are instances where family members who sell between themselves will often sell for a token price.

So if you are looking to buy or sell a home,Zillow can be a great place to begin the search to determine the ballpark range of homes in the area, but it is also a good idea to get more in depth data that takes into account variances that can affect the overall value of a home.

Any questions? Want a copy of the Wall Street Journal Article emailed to you? You can contact me at lcartolano@apr.com or at 510.213.1139

Re-Thinking The Buying Process

2007-10-16T10:57:00.000-07:00

Most home buyers claim they're picky. And why not? You are buying a home. It not only provides a roof but also needs to satisfy emotional needs that aren't easily quantifiable.

Since the home-buying experience is also often an emotional pursuit as well, there is a psychological component to consider. For example, let's say you have been searching for the right home for months, maybe even coming up on years. There haven't been many properties that fit your ideal and you have maybe made one offer during that time frame and the house you really loved turned out to be more expensive than you can really afford.

You've come close to making an offer several times, but have backed away after reconsidering. Each property had defects in terms of your ideal wish list. You weren't willing to compromise.

Buyers who find they've been looking for the right house for more than six months should pause to consider whether their expectations are in line with reality. For example you want a turn of the century home, with all updated systems in a desirable neighborhood, but all the homes you have seen are way out of your price range. Home buying involves making compromises if you're serious about buying.

In order to decide how you will compromise, you need to research what is available to find out what is realistically possible. Do your homework. The perfect house won't just magically appear. To save time, use the Internet to whittle down the list of homes for sale until you find the ones that suit your needs. Then make a point of visiting these in person, either with a real estate agent or at an open house.

Buyers with pressing needs usually have less of a problem finding the right home to buy. Say you have children who are about to enter school and you want to live in a particular school district. As long as the home has the right number of bedrooms, baths an has a yard you will be willing to give up the old world charm that you would like to have to find what you and your family need.

You may be getting out and seeing the listings that might work for you and still aren't having success. You get close to making and offer but never carry through. You find your self not being able to make a decision even when you see the right house to buy.

Buying a home is a big commitment and it can be scary. You often times are spending a large sum of money and maybe to a lifestyle that you are not accustomed to. It can really help to talk with advisers when you find that you're getting nowhere. Talk to a trusted financial advisor to see if you're looking in the right price range. You may find scaling back on the purchase price helps. Talk to friends and family who have purchased a home to find out how they made their decision to buy a home and how has it affected them both financially and in terms of lifestyle changes.

After doing your homework you may want to reconsider your wish list based on what you have learned about your local market and what to expect. By realigning your your expectations and even readjusting your price range, you may find that the buying a home is within your reach.

Refacing Those Cabinets May Be As Easy As Painting

2007-10-10T19:30:00.000-07:00

Your kitchen cabinets are looking a little, well, dingy and you don't really want to spring for new cabinets. What to do? Paint and hardware. These two things can make a huge difference. If any of you out there are an HGTV junkie like myself you will have seen this trick a thousand times.

With the proper materials, some time and some patience, you can make quite a difference in a fairly short time.

GETTING READY

Any successful paint job begins with proper preparation, and nowhere is this more true than when painting kitchen cabinets. Take your time here, and the rest of the job will go much smoother.

First, you need to decide exactly what you want to paint. Some older kitchens have cabinets that are painted both inside and out, and that may be what you wangt to do again. You may wish to paint only the outside of the cabinets and leave the insides alone, or you may be planning on replacing the doors and drawer fronts, and only need to paint the cabinet-face frames and side panels.

Although it represents a little more work up front, the job will much easier if you plan on completely emptying the cabinets. Box up what you won't need for the next several days, and what you will need can be set up on a temporary work space in another room. Remove all of the doors, hinges and knobs, and store the hardware in zipper-lock bags so nothing gets lost.

Next, all of the surfaces that will be painted need to be cleaned and prepped to receive the new paint. Cabinets, no matter how good a housekeeper you are, kitchen cabinets are abused on a daily baisis and are going to have a coating of grease on them, and that needs to be completely removed for the paint to stick well. Wash the cabinets inside and out with a solution of trisodium phosphate (TSP) and hot water. TSP is a great general cleaner and degreaser -- follow the mixing, usage and safety instructions on the package.

After cleaning, you need to lightly roughen the surface of the wood so that the new paint will adhere better. You may want to cover appliances with plastic at this point to avoid a layer of dust on them. Using 220-grit wet and dry sandpaper, moisten the paper with water and lightly sand in the direction of the grain. Wipe everything down with a clean soft rag to remove most of the surface dust, followed by a final wiping with a tack cloth. Tack clothes are simply rags that have been treated to make them slightly sticky, and they do a great job of removing the final traces of sanding dust without leaving any residue on the cabinets.

If you are painting the doors and drawer fronts, remember to clean and sand them as well. You may want to find a convenient spot in the garage to set them up for painting, or you can set them up in the kitchen as well. They are, however, easier to paint if they are not still on the cabinets.

You are now ready to start painting. Begin by recovering everything with plastic, paying close attention to protecting counters, appliances, floors, walls and other surfaces that will not be painted. If you are not painting the insides of the cabinets, use masking tape to create a clean line between the cabinet face frames and the interior. Mask where the cabinets meet the wall, using blue (lighter tack) masking tape to prevent damage to the wall surfaces when it's removed.

For best adhesion and best finished appearance, you should consider applying a primer coat before applying the finished color. Primers are designed to create an intermediate bond between the wood and the finished paint, and are a step well worth taking. Your paint store can help you select the proper primer for the type of finish paint you'll be using. Primers are typically white, so if the final color you intend to apply is dark, the paint store can also tint the primer to a color that's closer to the final paint color.

You now have to decide between applying the paint with a brush or with a sprayer. Brush painting is more convenient and requires a lot less masking, but spraying is faster and tends to apply the paint more evenly without having to worry about brush streaks. Your paint store can help you out with the proper type of brush for the paint you're using, and if you decide to spray, they can either rent you the proper spray equipment or direct you to someone who can.

Apply the primer coat, allow it to dry completely, then apply the top coat. Follow all of the manufacturer's instructions for application, drying, ventilation and other precautions. Allow the top coat to dry completely, remove the masking, then clean and add your new hardward and hindges.

All of the materials you need, along with expert advice, can be found at any well-equipped paint store. If you already know exactly what you need to buy, you can also visit your local home center.

Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139

Measure EE Rent Control Ordinance In Oakland

2007-10-09T13:46:00.000-07:00

In 2002 voters of Oakland passed Measure EE- The Just Cause Eviction Law.

What does this law mean and how can if affect you?

Measure EE specifies when eviction may occur. Except in dwellings built since 1980, the owner cannot evict rent-paying tenants who abide by rental agreements unless the owner occupies at least a third of the building or intends to move into the unit or move family into the unit. The measure also states that landlords must abide by lease agreements unless tenants fail to pay rent, damage property or breach some other portion of a rental agreement.

If you are looking to purchase an investment property with rental units, or you decide to rent our your current home, you should make sure you are aware of these laws.

Also if you are considering selling your rental property be aware that these laws still pertain to you. As you might imagine selling an occupied unit can be a bit more complicated than if it is vacant. But be aware, you cannot evict tenants to sell the property.

The City of Oakland provides an outline for landlords at http://www.oaklandnet.com/government/hcd/rentboard/landlord.html

If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139

When It’s Time To Sell, Don’t Take It Personally

2007-10-08T09:08:00.000-07:00

Selling a home can be a stressful process. There is a lot to get in order and there are a lot of details to consider.

You have the basics behind you. The house and lot are spotless and de-cluttered. Now it is time to enhance the home's features so that you can grab those potential buyers.

Your First Home Selling Step: separate yourself from the personal feelings you have about the house--it is not your home now, it is a commodity you intend to market.

Trust Your Instincts. Try to evaluate the house as if you are seeing it for the first time. If you were a home buyer, what would you think about the house? What changes would make immediate improvements? What are the house's best features and how can you show them off?

Pack It Up
Pack away most of your family photos. Buyers should be allowed to imagine their possessions in the home. Pack up your personal collections, too, so that buyers don't get so interested in looking at them that they forget to look at the house. When home buyers start deciding how their furniture will fit into your rooms, you're on your way to a contract.

Make It More Spacious
Remove excess furniture to make rooms more spacious. Clean and organize the closets. Store boxes in an out of the way location or rent a temporary storage unit so you can de-clutter every part of the house.

Expose Desirable Features
Remove rugs if they expose nice hardwood floors. Remove heavy drapes that keep out natural light, especially if there's a great view out the windows.

Add Some Life
Plants go hand-in-hand with nearly any decor--living plants, not artificial versions.

Freshen Up
How about fresh paint? Are walls in the house dingy? Are the colors dated? Should you clean curtains or other window coverings?

Essential Curb Appeal
Keep the lawn nicely trimmed, and try adding other garden elements to grab a buyer's attention before they walk in the door. Outdoor lighting does wonders in the evenings--when many home buyers do drive-bys of properties. Buy a good-looking doorknob set. Sweep the driveway; pressure wash the house or sidewalks if necessary.

Your goal is to make home buyers fall in love with the house as soon as they see it from the street. And that comes with a bonus—a great overall impression is often enough to make a buyer more lenient about minor repair issues.

Every house is different, and no one expects you to be a professional home stager--but taking the time to prepare the house to the best of your abilities may put extra dollars in your pocket, and in less than average time.

Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139

Rent to Own--Questions You Should Think About

2007-09-28T10:55:00.000-07:00

With the current state of the Real Estate Market a rent to own situation may work for both seller and buyer. For sellers the advantage is the renter will eventually take permanent ownership of the property. For the buyer who is cash strapped or credit challenged, this may provide and opportunity to get into a home.

Rent to own can be a great avenue for both sellers and buyers, but you have to be aware of potential drawbacks. You will really need to sit down and ask yourself specific questions to decide if rent to own is really an option for you.

Questions for a Seller
*Who will tend to the property and pay for routine maintenance?
*Who pays for major repairs?
*What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
*Will you manage the property yourself, or hire an agent?
*What if the renters change their minds? Who keeps the money in the escrow account?
*If the buyers change their minds, what will be required to put the property back on the market?

Questions for a Buyer
*How much of the rent is going to the down payment?
*How locked in are you if change your mind? What will it cost you to get out of the deal?
*How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?
*What happens if you don’t qualify for a mortgage by the specified deadline? Can you continue to rent?
*Who will be responsible for routine maintenance?
*Who will pay for major repairs?
*Do you hope to strengthen your credit rating by paying rent on time? If so, will the owner report your good habits to credit bureaus?

Entering a rent to own situation can work, but you must make sure you have addressed any potential issues before you enter into a rent to own situation to mitigate any issues that can come up.

If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139

New Law For Buyers In Oakland Help Pay for Siesmic Retrofitting

2007-09-25T12:07:00.001-07:00

New Law In Oakland Helps Pay for Seismic Retrofitting

The United States Geological Service (USGS) has forecasted that a magnitude 6.7 or larger earthquake will occur in the San Francisco Bay Area with 62% probability An earthquake of this magnitude would cause billions of dollars of economic loss in the Bay Area, half of which would be loss in damaged residencies.Oakland is expected to lose more than one-third of its housing in a major earthquake along the Hayward Fault.

Seismic strengthening of residences—known as seismic retrofitting— not only save lives, but also housing. This helps communities to withstand the short and long term effects of a major disaster.

A study completed by the University of Buffalo in 2006 demonstrated that a 2 story wood frame house built to California earthquake standards and then shook in a simulated magnitude 6.7 earthquake, survived with little structural damage.

It is estimated that 85% of Oakland’s existing residential buildings constructed before modern earthquake codes were adopted have not been even minimally strengthened to withstand seismic activity. Permits in the past cost 10% of the cost of retrofitting (usually $7,000-$30,000) Many homeowners were avoiding the permit process altogether to defer costs. Without City inspections, homeowners cannot be assured that the work is meeting current seismic retrofit standards.

The City of Oakland has incorporated basic retrofit standards into the City’s Municipal Code, established a flat retrofit permit fee of $250, and launched a New Homeowner Voluntary Seismic Strengthening Reimbursement Incentive Program that allows new owners of older homes one year in which to retrofit their residences to the standards, and provided they complete the work according to plan, receive up to $5,000 reimbursement for their expenses. New owners must apply for the permit within 60 days of recording the transfer of ownership to be eligible for the Incentive Reimbursement Program.

What if you already own your home?

You can still take advantage of the flat $250 permitting fee for the retro-fitting.

How can I pay for the retrofitting?

Retrofitting a home can be costly. There are a few options available. You may want to consider a home equity line of credit. Or you can try doing some of the work yourself to bring down the costs. There is a handbook created by the City of Oakland a few years ago that explains how to do several retrofitting project yourself. You can check it out on the web at http://www.oaklandnet.com/earthquake/GetRetrofitHandbook.pdf

Retrofitting is a vital component to saving probably one of your greatest investments, your home.

If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139

Special Program Available for Oakland Unified Employees

2007-09-25T10:22:00.000-07:00

Attention Oakland Unified Teachers and Employees!!

Do you currently rent and wonder if you can afford to purchase your own home?

Teachers in under performing schools qualify for a special program through the California Housing and Finance Agency (Cal-HFA).

If you are a first time home buyer or if you have haven’t owned a home in the last 3 years, you could qualify for below market rate financing through Cal-HFA and a special assistance program for a down payment or help with closing costs.

Want more information about this program?
Come join us for a First Time Home Buyers Seminar for Teachers.

Please RSVP at 510.213.1139 or by email at lcartolano@apr.com

Date: October 10th 2007
Time: 7PM
Location: LandAmerica Commonwealth Title
6200 Antioch Street Suite 101
Oakland, CA 94611

Can’t make the Seminar? Give us a call and we can meet with you personally to talk about the program.

Lisa Cartolano of Alain Pinel Realtors

I Can't Pay My Mortgage? Is There Anything I Can Do?

2007-09-18T15:34:00.001-07:00

Your Adjustable mortgage rate has just adjusted. Your mortgage payments have increased dramatically and you are having a hard time making the payments.

Is there anything you can do?

The answer is yes.

The first step is going to be talk to a lender and do it sooner than later. If you feel like you are in a situation where you will not be able to make payments, talk to a lender to see if you can re-finance your loan into a fixed rate. This may help stabilize the payments give you the peace of mind that you can afford to stay in your home.

What if you talk with a lender and it is not possible for you to refinance?

It may be that you are in a situation where you can't refinance. Maybe the house is financed for more than it can be appraised for, or maybe your credit has taken a hit and you can't get approved for a new loan, or maybe you are in a situation where you feel like you have more house you can afford.

There are options. You can sell your home. This may not be what you are thinking, but this is one way to deal with your situation if you can't refinance. You will want to talk to a Realtor to see what your situation looks like. There are two avenues of sale at this point.

1. A Standard Sale
2. A Short Sale

A standard sale is where you are able to sell the home for more than than you owe. This is what most think of traditionally when selling the home.

A short sale is where you are selling the home for less than you owe. This can be a tough situation and you will want to involve a Realtor early on to help you navigate a short sale. See my next blog for the ins and outs of a short sale.

If you are feeling like your mortgage payments are getting away from you do remember that there are options to you. Just make sure to be honest with yourself and your situation and contact a professional earlier than later.

If you have any questions or would like further information, you can contact me at 510.213.1139 or at lcartolano@apr.com

What Is A Short Sale?

2007-09-18T15:25:00.000-07:00

Odds are you have heard the news lately about real estate. Lately we are starting to see a lot more short sales.

What is a short sale?

This is when trying to sell a home you are putting on the market for less than you owe.

There are a variety of reasons for doing this:
1. You purchased a couple of years ago and values in your area have come down since then.
2. You refinanced your home to get money for other purposes and now your home is mortgaged for more than it can sell.

Why Would I sell if I Owe More Than I can Sell it?

There are a variety of reasons why you might find yourself in this situation. Maybe you are a spouse lost your job and you cannot afford to stay in your home, you have been relocated for your job and need to move out of state, your mortgage payments have increased to a point where you can no longer make the payments.

A short sale can help you avoid foreclosure

If things have gotten to a point where payments are difficult and you feel like you are not going to be able to keep them up a short sale could be a lot better alternative to foreclosure. With a short sale you can sell the house and get out from your mortgage. If you just stop making payments eventually the bank will come knocking on your door and ultimately can take possession of the house. If this happens your credit can be damaged for several years and forget even trying to buy a home for about 7.

How is a short sale different?

If you are not using a Realtor to help you sell your home at this point, you may want to. Short sales are not for the faint of heart and they typically take a lot of time and energy.

The first step is to contact the lender and speak with someone at the loss and mitigation group. Some lenders will be up to speed and will have a list of paperwork to send out to be filled and signed off on, an others will not. The tough part of a short sale is every lender will deal with it differently.

Basically the goal is to negotiate with the lender for them to "forgive" the difference between what you owe and what it sells for. Some lenders will negotiate this up front, others will want to see an offer before they will even discuss it.

Short sales can be hard to sell.

Get help early!!! A Realtor will be able to help you navigate the negotiations with the bank. In some instances it can take weeks of phone calls to even get a person with the lender that has the authorization to make any decisions regarding a short sale of your home.

Buyers can be wary of short sales

As a buyer you may have the perception that something is wrong with the house. Or if something is unearthed during an inspection will you the seller be able to negotiate work that may need to be done.

It is really important to look at your situation to see what makes the most sense for your situation. Get help early and be realistic about your situation. It is not a happy place to be in, but if you are able to successfully complete a short sale you can limit the number of financial headaches for yourself in the future.

If you would like more information about short sales, you can contact me at 510.213.1139 or at lcartolano@apr.com