Home Spun

An Early Summer Snapshot of the High-End North Berkeley Market

2009-07-12T00:04:00.000-07:00

I recently was on the listing side of two wonderful, "very Berkeley" Arts & Crafts homes in North Berkeley. Neither of them had classic floor plans, but both had tremendous amounts of original wood and wonderful period details, multiple fireplaces, updated kitchens and larger than normal lot sizes. In both cases I was successful in getting our local paper to feature these homes in the Real Estate sections during their marketing period. That special marketing, an individual website for each property with lots of photos, plus my marketing to a specialized group of Arts & Crafts and period home buffs, resulted in huge attendance at my open houses.

One was priced well IMHO, based on the comments I received from agents (though numerous buyers thought it was priced too high). The sellers had followed my advice on price, as well as on presentation. The property was vacant and staged in a manner that fit the home. This home also had spectacular views, both of Mt. Tam and Marin and also a direct view of SF. We received four offers, and it closed $150K above list price.

The second home was priced a wee bit high, again IMHO. That price was driven by the financial situation of the sellers. They also continued to live in the home, but did pack away many of their possession. Though I welcomed more than 300 people during two Sunday open homes, that property received two offers, and went just $25K above list. Interestingly, that home closed today at $1.425M, in an ALL CASH sale. Until quite recently it would have been rare indeed to see cash sales at such a high amount. But as jumbo loans become more difficult to acquire, especially in a timely fashion, we’ve seen more cash sales in Berkeley in the high end.

One obviously cannot determine a trend from just these two examples. But from my experience of living and working in North Berkeley for many years I know that the differences in behavior were somewhat predictable. Now more than ever, buyers are very sensitive to prices that they perceive to be too high, even if by only a small percentage. They also are intolerant now of deferred maintenance or even a lack of updating that they would feel to be required. Two or three years ago buyers were much more forgiving of these aspects. Buyers have read so many stories about it’s being a buyers’ market, and they want it to be so. In North Berkeley right now, the special properties are still very much in demand, and the inventory of such properties is low. As I write this, there is one new listing at just over $2M, and five listings at $1.2M or higher that have been on the market for at least three weeks. What a great opportunity for brave sellers who are willing to trust their agents and the data, rather than listening to the prevaling news of doom and gloom!

Summertime....Will the Home Buying be Easy?

2009-06-22T12:34:00.000-07:00

By Lawrence Yun, Chief Economist, NAR Research

It was a good kick-off for the summer season. The pending home sales index figure that was released earlier this month marked a third straight month of rising pending sales. That is certainly welcome and encouraging news. It is fairly obvious that first-time buyers are responding to the incentives of rock-bottom mortgage rates and the first-time buyer tax credit to pick up relatively cheaply priced homes. Indeed, recent figures suggest about 45 percent of buyers have been first-timers – a higher proportion than the typical 35 to 40 percent during more normal years.

A high proportion of the transacted homes are distressed, either in foreclosure or requiring a lender approval short-sale, with deep discounted prices. By the fourth quarter, existing-home sales are projected to be about 15 percent higher compared to the comparable period the year before if all goes as planned. Some of the recent first-time buyer transactions will help existing homeowners to make the sale and then buy the next home. Other first-time buyers purchasing vacant home still are helping in terms of absorbing inventory.

Home sales in the hard-hit California market have recently reached levels that are nearly twice as high compared to when they were in the trough. Evidently the California housing market is experiencing a tipping-point phenomenon: potential buyers suddenly wanting to enter the market all at once. People have waited and waited for the best time to enter the market. Why buy now if prices will be lower later? After having tumbled from unsustainable heights, home prices there are highly attractive and within budget for many fence-sitters. So when some buyers started to enter the market, other bystanders just couldn’t let others take advantage of the great buying opportunity. Many are now fighting to jump into the market. Multiple-bidding on lower-priced homes are said to be common in California. People who “lose out” during a bidding war don’t simply go home and wipe away their tears -- they come back with almost vengeance-like determination and hope their next bid will be the highest. What does that mean for home prices? Though the year-over-year price measurement will continue to show declines in California, probably for the remainder of the year, the month-to-month price trends will more likely be on an upswing. In short, people who buy in June 2009 will likely see a price gain in June 2010.

Will other parts of the country follow California and witness not a slow recovery, but a sharp upturn? We’ve seen evidence of that already occurring in Nevada, Arizona, and parts of Florida. The hard-hit parts of Washington D.C.’s outlying suburbs are also experiencing multiple biddings. But we shouldn’t expect to see the same trend in all markets. The sharp upturn is likely to occur in markets where home prices are overshooting downward (after having overshot way upwards during the boom years). Therefore, most of Middle America may not encounter any sharp upturn in housing because it never experienced the same exuberant big boom and big bust to begin with. And there still appears to be many hesitant fence-sitters in Middle America based on recent depressed home sales despite accumulated steady overall population gains in the country.

Some things will take a turn for the worse before improving. Employment conditions will certainly have an impact on any housing recovery. While May’s job cuts were the lowest since January, job losses will continue through the remainder of the year. Yes, we can expect some economic growth resulting from the massive stimulus package later in the year and into 2010. But the jobless rate will remain stubbornly high at near 10 percent for the next 18 months. Look for the unemployment rate to rise to 10.5 percent before all is done. People without a job or with financial capacity should not be entering the housing market. Foreclosures will rise as a result, putting additional downward pressure on prices (unless buyers quickly clear off these properties). Falling home values will in turn slow the economic recovery because of slowdown in consumer spending from further destruction in homeowners’ equity.

But even in the depth of the recession, nearly 90 percent of the U.S. workforce is employed. Discount perhaps 20 percent of those workers who have a part-time job – and worries about whether or not they will remain employed. That still puts a sizable 70 percent of the adult population with stable jobs and in a position to respond to home-buying incentives of low rates, low home prices, and tax benefits if they are first-time buyers. However, continued job losses will no doubt depress consumer confidence and the psychology factor is just as important in the current housing cycle as it has been in the past.

We also need to remember that conditions are not static. For instance, one home-buying incentive that could disappear is current rock-bottom rates. The Federal Reserve has been actively trying to push down mortgage rates by keeping the short-term Federal Funds rate at near zero and buying up mortgage-backed securities. But the fast rising budget deficit and the printing of money to partly finance that debt is raising concerns. The U.S. budget deficit in the current fiscal year is likely to hit $2 trillion. The largest deficit prior to this year was less than half a trillion dollars. In relation to GDP (that is, in relation to overall U.S. income), the current year’s deficit will be the highest since World War II. Partly as a result, the yield on the 10-year Treasury, the benchmark rate against which mortgage rates are pegged, has risen significantly over the past month from under 3 percent and currently closely approaching 4 percent. Therefore, the average mortgage rate on a 30-year fixed loan will likely rise to about 5.5 percent in the second half of 2009. It’s important to realize that 5.5 percent is still an amazingly attractive interest rate for a mortgage. But if the rate tops 6 percent then expect a significant setback not only for a housing market recovery, but also for an economic recovery.

Another potential change down the road: the first-time buyer tax credit is scheduled to expire by November 30th. That means trying to entice buyers to sign contracts by early October in order to get the mortgage underwritten by November. Some ready buyers unable to get out of a longer-term rental contract may not make the deadline. At the same time, unexpected delays are popping up. Appraisals with outside management companies are now becoming more active due to a regulatory rule change; that is costing consumers more fees with less reliable assessment.

But NAR is involved in efforts to insure that home-buying incentives continue. For instance, the Association is working to extend the tax credit deadline and make some changes to the program. Extending the deadline would make the tax credit available to more potential buyers. NAR is also looking to expand the tax credit to repeat buyers and lessen the income restrictions. We are also pushing to make sure appraisals include local experts and not solely be determined by national appraisal management companies that are owned by national banks. NAR is raising concerns with policymakers regarding issues such as the 90-day rule that are limiting appraisals to only non-comparable properties.

So, while you are making plans for your summer vacation, don’t forget to work with your local REALTOR® association to support NAR’s efforts to make sure Congress extends and maintains
federal home-buying programs. Write your Congressional representatives and let them know a true economic recovery won’t happen to any significant degree unless the housing market fully recovers. Home-buying is crucial to that recovery.

And I have a final thought for readers of this column to consider as they think about summer vacation. It’s about politics (not economics). For the most part, incumbent parties have been kicked out in nearly every recent election. The U.S. witnessed it in November and the European Parliamentary members saw it in early June. Brits look eager to shore away Gordon Brown and his Labour Party if given a chance. (As of the writing of this column, Mr. Brown has yet to announce when the next election will take place.) Europe has voted to free itself from suffocating government bureaucracy, while the American electorate seems to have moved away from wild scary rides of free market uncertainties.

But not every incumbent went home. U.S. government spending and budget deficits are not just a President’s doing – Congress is accountable as well. Before leaving office, President George W. Bush had the worst presidential approval ratings in modern history. But the “approval” rating for Congress was even worse. Presidents, though, are term limited; incumbent members of Congress keep getting re-elected and in some cases by wide margins. It’s an interesting conundrum -- people evidently hate Congress as a whole, but generally love their specific Congressional representatives and senators. Political theorists would say there are many hidden but legally permissible political tricks-and-treats in place to keep incumbents in power.

So I have a radical, but potentially very satisfying, proposal to unlock the power of Congressional incumbency. How about every 2 or 3 election cycles, voters are permitted to vote out the whole Congress in one fell scoop. In short, people could choose between “delete all” or “keep the same local vote system”. For instance, voters in Alabama could decide to remove senators and representatives that they don’t like with one single click, but understand that Alabama’s senators would also be removed.

Likewise, New Yorkers could vote to kick out non-New York senators and representatives that they may not like, but their representatives who they like would also get the boot. Those “kicked out” would be allowed to re-enter the race in the next election cycle, but they would no longer have the power of incumbency. Such a new system will force the members of Congress to focus not only on their own district, but also about what is in the best interests of the country.

Of course, I realize that such a radical change would require an amendment to the U.S. Constitution – and it would certainly never happen. But I offer it as a “fun mental exercise” for the summer. It may also perhaps be a way to let Congress know it should serve the public and not themselves.

Are Low-ball Appraisals Hurting Our Market?

2009-06-05T12:38:00.000-07:00

Houses are still selling swiftly in East Bay. Limited inventory means that sellers are still experiencing the joy of multiple offers. Unfortunately, spirits are sometimes dampened by low-ball appraisals. Houses get into contract for a fair price, dictated by willing buyers bidding in an open market. This contract price is often diminished through the appraisal process when conservative appraisers are pressed by ridiculously conservative banks.

It's a tough job for appraisers. They have new guidelines for justifying their conclusions of value. They are being asked to provide a greater number of comparable sold properties than they have needed in the past. In addition, the timeline for these qualifying properties has shrunk from data collected within the last six months down to three. Geographical requirements have also been tightened. Some lenders are requesting comparable sales within 1/2 mile radius of the subject property. This process is complicated by our limited housing inventory and low sales volume. In short, appraisers are now required to produce more data, while obeying stricter guidelines, in a market with less turnover.

At the center of this debate is The Home Valuation Code of Conduct ("HVCC"). HVCC regulations prohibit lenders and Realtors from choosing or directly communicating with the appraisers. This means that sometimes out-of-area appraisers are chosen at random and are working to justify home values in a market they do not understand. Due to resulting low appraisals, legitimate loans are being turned down and Bay Area buyers turned away (with dreams crushed.) You can help by signing the petition, Request For Reconsideration of HVCC.

Note: When an appraisal comes in low, the buyer (with an appraisal contingency) can cancel their offer, try to renegotiate with the seller or elect to proceed under the original contract terms. Often the original price is the fair price. Yet, it is difficult for buyers to feel confident paying a price that the "expert", in this case the appraiser, tells them is high.

Berkeley Hills Realty is a Certified Bay Area Green Business

2009-06-02T12:50:00.000-07:00

Berkeley Hills Realty is certified as a Bay Area Green Business! On site verification inspections have taken place, and all standards were achieved as of May 14, 2009. As a Green Business, Berkeley Hills Realty has achieved exceptional pollution prevention and conservation of resources. In addition, BHR has met environmental compliance requirements.

Berkeley Hills Realty is a locally owned company committed to our community. We are green and our chain of ownership is clean. Rest assured, there are no larger corporate entities with questionable environmental practices behind the curtain!

Furthermore, some of our Realtor Associates have obtained a Green certification, and several of our agents are on the Berkeley Association of Realtors Green Council. This deeper commitment to environmental education and advocacy benefits our clients in the pursuit of their green housing dreams.

Contact a Berkeley Hills Realty Realtor at 1.800.Hi.Berkeley.

Happy Earth Day!

2009-04-22T09:35:00.000-07:00

Be kind to Mother Earth and take a hike! Berkeley Hills Realty has walking maps of Berkeley and Oakland which include many fabulous pedestrian pathways. For a complimentary copy of Berkeley’s Pathways or Walk Oakland!—while supplies last—stop by our office:

Berkeley Hills Realty
1714 Solano Avenue (between Tulare and Ensenada)
Or contact us at 510-524-9888

Introducing Our New Agent - Auggie Wilms

2009-04-19T22:02:00.000-07:00

“We’re very happy that Auggie decided to join our company,” says BHR co-owner Tracy Sichterman. “I’ve rarely met an agent with so much energy and drive. Auggie has a great work ethic, and I think his clients will be delighted with his results.”

Auggie Wilms is an agent who really knows how to combine the ingredients of a good real estate deal. A former chef, Wilms has spent two decades combining interesting ingredients with the same talent and skill that he now brings to his real estate activity.

It almost sounds like the setup for a joke, right? “A chef walks into a real estate office... ” But it’s no joke, and it actually began a quarter century ago with the chef’s mother. In 1985, Berkeley Hills Realty co-owner Nancy Mueller helped Wilms’s mom Barbara Clark buy a house on Pine Street in Berkeley. In 2006, Nancy did the same for Auggie, helping him buy a house on Monterey Avenue. Wilms says the experience was so positive that he decided to go into real estate himself.

Aside for a brief foray to Los Angeles, Wilms is Bay Area born and raised. But after graduating from Berkeley High, he set his sights on the Big Apple and enrolled in New York’s famed French Culinary Institute. Along with slicing and dicing, Wilms learned a valuable life lesson: the importance of doing the job right. “They were very strict at the school,” he says. “You follow a classic recipe, and you don’t mess with it.”

Returning to the Bay Area in 1987, Wilms started his two decades of pleasing local palates. Among other places, he worked as a sous chef at Masa’s in San Francisco and at Lalime’s in Berkeley. In 1994, he started a business smoking seafood for local restaurants, the Ohlone Smoke Company in Emeryville.

Ohlone Smoke scored a major hit in a taste competition in December 2001 sponsored by the San Francisco Chronicle. “We beat everybody,” says Wilms, “including companies much larger than ours.” Wilms says he still hands out samples of smoked fish to his present-day clients. “I give them a small package with my card stapled to it.”

The next few years brought a series of momentous turning points for Wilms. He sold Ohlone Smoke Company, got divorced, bought his Monterey Avenue home, and hung up his chef’s toque for good. “It was time for a change,” he says simply.

But why go into real estate? How does a person move to escrows from escargots?

Wilms argues that his career switch isn’t as strange as it seems. “I’ve always been interested in building and architecture,” he says, “and I’m a hands-on kind of guy. I’ve done a lot of work on my own house, everything from attending zoning meetings to nailing up sheetrock.” In addition, Wilms has lived and worked here all his life, and has a wealth of knowledge about the local real estate scene. “I’m good with people, and I bring tremendous energy to my work,” he says. “As in cooking, my focus is on getting the job done, and doing it right.”

Auggie Wilms can be reached at Berkeley Hills Realty at 510-524-9888 x44, 415-948-6323 (cell), and by e-mail at auggie@berkhills.com.

Buy a House, but Don't Pay the Mortgage!

2009-04-14T14:02:00.000-07:00

A new reverse mortgage option, HECM (Home Equity Conversion Mortgage, the FHA term for a reverse mortgage), has been unveiled that may help senior citizens age 62 or older buy a house or downsize from a current home in the Bay Area. Reverse mortgages have been around for quite some time. However, the concept of their use to purchase a home is new.

In the past a reverse mortgage was a way for seniors to access the equity they had built up in their primary residence. The concept is simple; a homeowner receives a check (in lump sum or multiple payments) from the bank against the existing equity in his/her home and the homeowner's obligation to repay the loan is deferred until the owner dies or the home is sold.

The new version of the HECM program allows buyers to use a reverse mortgage as a plan to permanently finance the qualified buyers new home. Through the program, the qualified homeowner may live "mortgage free" and only be responsible for property taxes, insurance and maintenance costs for as long as they live in the home. Beyond living mortgage free, additional financial benefits may be found by freeing a retired homeowner's equity:

The purchase program, in effect, doubles the purchasing power of eligible buyers, several brokers said. Under the program, a couple with a $1,800 monthly payment on a home in which they have $250,000 in equity could sell the house, use $150,000 of their equity to buy a $300,000 condo and never make another mortgage payment.

They would then have $100,000 in cash that could be used for any purpose, such as supplementing their retirement savings or pension income.

Here are few of the fine points:

Buyers need to be at least 62 years old. The older the borrower, the greater the amount of the home price that can be financed.
The property being purchased must be a principal residence and owner-occupied.
Homes can appraise at up to $625,500.
Buyers need to put up a substantial down payment (often 40% or more) to create the instant "equity". The size of the down payment varies depending on the age of the buyer and the interest rate of the loan.
Reverse mortgage costs and fees can be substantially higher than for conventional loans.
Buyers must pay 2 percent of the property's appraised value - up to the maximum value of $625,500 - as a premium for federal mortgage insurance.

Resource: New reverse mortgage opens options for seniors, by Robert Hollis, Special to the Chronicle.

First-time Buyers Benefit by Employing a California REALTOR®

2009-04-03T07:55:00.000-07:00

From C.A.R: C.A.R. launches mortgage protection plan for first-time home buyers

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

To qualify for the Mortgage Protection Program, applicants must:

Be a first-time home buyer – someone who has not owned a home in three or more years

Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

Use a California REALTOR® in the transaction

Purchase the property in California

Be a W-2 employee (cannot be self-employed)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

Note to first-time home buyers: All Berkeley Hills agents are REALTORS®, and can help with the paperwork. We can also help provide details of other programs such as the $8,000 tax credit for first-time home buyers. Call 1 800 Hi Berkeley to start the process.

Median Home Price Statistics in Berkeley

2009-03-23T14:42:00.001-07:00

This is a year's worth of tracking the median home price in the Berkeley market of single family homes. The data is from February 2008 through February 2009. Click on the graph to expand the image.

The Ups of Downs - Buying Up in a Down Market

2009-03-08T10:00:00.000-07:00

Many homeowners are understandably on the fence about moving to a new home in a shaky market. We have talked to some homeowners who would like more space for their family, but are hesitant given daunting headlines. The current market, however, is ripe with financial incentives to support such a move.

Phenomenal interest rates make now an opportune time for buyers in the real estate market. A one percent rise in interest rates represents a 10% decrease in affordability. For example; a buyer with a 20% down payment can afford a principle and interest payment of $3,400/mo. Today, while interest rates are hovering around 5.5% our buyer can afford a purchase price of roughly $750,000. If rates increase to 6.5% the same monthly payment and 20% down will only purchase a home of $675,000. Try it yourself with our mortgage calculator.

If you are planning to move up to a $750,000 and sell a home in the $500,000 range you can further profit from discounted prices. Although you may be concerned about a loss on your current home, it is important to remember the benefit of the discount on your larger purchase. For instance, if we assume the same 10% depreciation for both price ranges and home locations, your current home might sell for $450,000 when it had been worth $500,000. That is a loss of $50,000. Ouch. However, the same market discounts the larger purchase by the same ten percent and the $750,000 home now sells for $675,000. Although you may stand to loose $50,000 on your home's sale, you can save $75,000 on the new purchase netting an overall savings or $25,000 through the transaction.

It is important to note that not all markets and price ranges are preforming uniformly. It is often true that the lower priced homes do better than the higher priced homes because there is greater competition in the "starter home" price range. As homes become more expensive, fewer buyers can afford them. This may benefit a buyer looking to move up to a larger home as the move helps this buyer bracket away from some competition.

Location is also very important and a couple of miles can make all of the difference. Check out Zillow Real Estate Market Reports Fourth Quarter: October-December 2008. If you are moving from a down market to an unchanged market, you may not be able to overcome the loss on your current home via our simplified formula. However, the best markets now will likely be the best future investments. It may still be worthwhile to move toward a better location while taking advantage of low interest rates and decreased competition.

This is a complicated market, and we recommend that you talk out all scenarios with your real estate agent. There are risks here. Namely, you must have confidence that your current home will sell in a timely manner. If you have the resources and can find alternative housing, the smart strategy may be to sell your current home first. This too carries the risk of becoming a "permanent renter," if things heat up and you become priced out of the market. Berkeley Hills has many experienced agents available for immediate consultation.

Introducing Our Two New Agents – Mary Gray and Mykah Larkins

2009-02-22T11:38:00.000-08:00

Two top-notch agents, Mary Gray and Mykah Larkins, have joined Berkeley Hills Realty. They are not only longtime business partners, they’re related: Mary is Mykah’s aunt. “Mary and Mykah combine the wisdom of age and the enthusiasm of youth,” says Berkeley Hills Realty co-owner Tracy Sichterman. “They make a great a team.”

Mary Gray: on Being of Service

Mary grew up in the Pacific Northwest and moved to the Bay Area in 1979 to work as a hospice nurse before switching to real estate. She worked with Mason McDuffie and Marvin Gardens, acquiring a list of loyal clients, especially around El Cerrito, where she lives.

In her real estate work, Mary uses the same intuitive skills that served her as a nurse. “I’m good at walking in other people’s shoes,” she says, “especially in times of stress and transition.” Mary says she is also good at “listening below the surface,” by which she means hearing what her clients tell her while intuiting their deeper hopes and wishes.

Mary, who is in her early sixties, is especially fond of the elderly. “When I was little, my mother and I lived with my grandparents,” she says. “The old ladies on the block taught me to play canasta before I was five, and I appreciated their wisdom and beauty.” She loves to hike and read, Mary says, “but relationships are what interest me most-and will remain so forever.”

Mykah Larkins: Learning from the Best

Born in Portland, Oregon, in 1970, Larkins forged her connection to the East Bay when she moved in with her aunt in 1986. Mary Gray was an agent with Mason McDuffie then, and would become her mentor and business partner. When Larkins decided to go into real estate in 2003, her aunt was there to help. “I would get a stager, pick the colors, and do all the preparation work,” she says, “but Mary had been through many markets and she knew exactly what was needed.”

At the time, the real estate market was booming. “Mary started training me at a time when the seller’s market was amping up,” says Larkins. “In the beginning, a house would typically get a few offers and sell for $20,000 over the asking price. But pretty soon houses would get 16 offers and go for $150,000 over the asking price.”

The pace was frenetic. “We got houses ready in three weeks, put them on the market for two weeks, and have them close escrow three weeks later,” says Larkins. “Six to seven weeks from start to finish, and you were done.”

But during all that time, Gray was preparing her niece for the slowdown she knew was sure to come. “In a down market, those houses will just sit around,” Gray warned her. “You can struggle to set the right price, do all the same preparation work, and a house might still take three months to sell.” Says Larkins: “Way back then, Mary was already training me for the market we’re currently in.”

Larkins is a great communicator, and she knows the East Bay intimately. “I live and work and play right here in the El Cerrito-Albany-Berkeley area,” she says. “My entire life is here. My children go to school here, and I’m on the PTA; I know the community really well.”

Two Heads are Better than One

Mary and Mykah—sometimes called the “M & M team”—think of real estate as not just a business, but also a service. “A house is most people’s greatest asset and buying or selling it is hard on them,” says Mary. “It’s a privilege to help somebody through the process.”

The women also form something of a mutual admiration society. “Mykah is smart and creative,” says Mary. “We’re very good together.” Both women are detail oriented, and committed to helping their clients accomplish what they want. “We’re going to sell your house, or find you one,” says Mykah. “Either way, we’re going to get the job done.”

To contact Mary Gray and Mykah Larkins:

Mary Gray: 510-524-9888 x40; mary@berkhills.com.

Mykah Larkins: 510-524-9888 x40, 510-520-6692 (cell); mykah@berkhills.com.

Homeowner Affordability and Stability Plan

2009-02-20T11:28:00.000-08:00

From the National Association of Realtors

On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

The key components of the plan are:

1. Government Sponsored Enterprises (GSEs) Refinancing for Up to 4 to 5 Million Responsible Homeowners with GSE loans to Make Their Mortgages More Affordable

2. A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac

Download NAR's Summary on the Homeowner Affordability and Stability Plan> (PDF: 100K)
Chart: The New Housing Plan> (The New York Times, Feb. 18, 2009)

Sweet Treats for Home Buyers - The Stimulus Bill

2009-02-14T16:59:00.000-08:00

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

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

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

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

*source: James Liptak, 2009 President, CALIFORNIA ASSOCIATION OF REALTORS

My Toilet Isn't Green Enough

2009-02-07T17:02:00.000-08:00

As a member of the Berkeley Association's Green Council, I am starting to lose sleep over my eco-inadequacies. I love the original tile in my kid's bathroom, but the pottie is not so hottie. Wasting over 3.5 gallons per flush is not just an embarrassment, it's going to start costing me money.

Two dry winters have resulted in the biggest water supply threat in nearly 20 years (according to EBMUD). To safeguard its shrinking supply EBMUD has declared a severe water shortage emergency. Mandatory water rationing is now in effect. Single family residences are expected to reduce water use by 19%, or face possible fines, water flow restrictions, or loss of water service.

To get me to give up my throne of green for a greener throne, EBMUD offers this pot of gold: EBMUD will rebate $150 or up to the toilet cost, whichever is less, for the purchase of qualifying high-efficiency toilets. They offer this rebate for up to three toilets per household.

EBMUD and PG&E also offer rebates for clothes washers. EBMUD will also come conduct a free on-site survey of indoor and outdoor water use. Residential customers who use at least 500 gallons of water per day during the summer can also receive a rebate of up to $1,000 for a portion of the cost of irrigation system parts and landscape materials, including permeable hardscape. The also offer some instant freebies such as water-saving shower heads and faucet aerators.

Call EBMUD 1-866-403-2683 or click here: (more...)

Introducing Our New Agent- Gloria Polanski

2009-01-15T17:10:00.000-08:00

“We’re delighted to have Gloria join us at Berkeley Hills Realty,” says firm co-owner Bill McDowell. “She has years of experience and a great perspective on the business, plus she’s a pleasure to work with.”

Gloria was born in postwar Europe, and her family eventually came to the United States and settled in Los Angeles. (She claims only very distant kinship with Roman Polanski, the famed director of Chinatown and Rosemary’s Baby.) As soon as she could, she says she left L.A. to attend UC-Berkeley. “The day after I graduated from Fairfax High School I got on a plane and flew north.”

Gloria had a great time as a student at Cal. “I got very political and was involved with SDS and the New Left,” she says. “It was the Sixties, and Berkeley radicalism and bohemianism all spoke to me.” She also set up shop on Telegraph Avenue. “I had one of the first street vendor’s licenses in the City of Berkeley.” Gloria crocheted and sold hats and vests in the winter, and string bikinis and halter tops in the summer. Later, she and a partner made tie-dyed T-shirts. “We could do a whole batch of tie-dye in a washing machine,” she says. “Compared to crocheting, which you do one item at a time, this was mass production!”

Learning from Experience

Still in step with the times, Gloria and her first husband also started Spring Mountain Hot Tubs and Solar Energy Systems. When they were looking for a house to buy, she got hooked on real estate. For once, however, Gloria’s timing was off. She went to work in a real estate office in North Berkeley in 1980, as interest rates shot up to 20 percent and rent control was enacted in Berkeley. The combination, she says, destroyed the company.

Gloria moved on to Red Oak Realty, where she worked for two decades. After a stint at Marvin Gardens, she joined Berkeley Hills Realty. “Given my skill set and expectations, Berkeley Hills seemed like the right place for me at this point in my career,” she says. “And they've been wonderful and welcoming.”

Gloria gives her clients two main pieces of advice. First, don't get overextended. “Don't put yourself in a situation where you might have to sell immediately,” she says. “Always be in a position where you can weather the next storm.” Her second piece of advice may sound contradictory, but it makes sense. “If you’re buying a home for yourself, spring for the most expensive house you can afford,” she says. “Most of my clients who bought at the top of what they could afford have been really happy, because moving is such a big deal.”

Married to a physician, Gloria has three grown children and says she is involved in some interesting things: “I’m on the board of the École Bilingue, Berkeley’s French-American school, and a member of the North East Berkeley Association” Gloria is a long-term, active member of the Berkeley Association of Realtors, where she serves on the governmental affairs committee. She’s also a charter member of the Berkeley Chocolate Club.

Gloria Polanski can be contacted at Berkeley Hills Realty at 510-524-9888 x12, 510-914-7472 (cell), and by e-mail at glohome@berkhills.com.

A Week for Giving Thanks

2008-11-28T01:54:00.000-08:00

At a time when "unprecedented" is being used to describe numerous economic events, an $800 Billion stimulus package was announced this week. The intent is clear enough: to encourage spending on new mortgages with interest rate reductions, and easing the terms by which Americans can incur more consumer debt. There is something curious to me about the premise. Interest rates were already quite attractive, hovering around 6% when historically the number to beat was 7%. In working with first-time buyers in particular, I see the dramatic differences between those who have been able to save money, and hence have had the 20% down payment required in this newly conservative lending environment, vs. those who have been unable to save.

Encouraging additional spending is clearly what economists feel is required at this juncture to reenergize an economy traumatized by huge swings in major indicators. We’ve grown eerily accustomed to the stock market being either up or down several hundred points each day, oil prices that were in "unprecedented" territory falling to half those amounts within a few months, foreclosures dominating sales in many areas and unemployment at levels not seen for decades. The intensity of the news and the volatility of major indicators are truly enough to have all of us on edge, uncertain, cautious.

I would love to assist buyers in purchasing homes in our wonderful East Bay area with its continued strength. So while I would normally welcome measures that would make it easier for buyers to enter our housing market, I can't help but feel that this latest measure, including $200 Billion set aside to make it easier for consumers to get further into debt with credit cards, is contrary to the best long-term interests of families as well as the over-all economy.

Some of those would-be buyers are convinced that our housing market will devalue further, and are unwilling to enter it until prices even in Berkeley, Rockridge and Albany are in bargain territory. It almost seems that some of these folks must be sure that the seller is experiencing pain before they are willing to buy. So far no precipitous drop in sales prices has occurred, and without that mythical crystal ball no one knows for sure if it will. My personal belief is that we may see a bit more softening, reflecting itself primarily in homes taking longer to sell. My guess is that we'll see much more optimism in our housing market after the inauguration. Bargain hunters might want to take advantage of these last months of a lame-duck administration and seasonal slowness mixed with the likely interest rate advantages from these latest stimulus attempts.

I'm currently in contract with buyers who wanted to establish a home together and were actively looking over the past few months. They know there is some risk that the value of their new home could go down soon after they purchase, but they are confident in the long-term stability of this area. They are looking forward to painting the walls something other than white, and planning a garage conversion to add space when they eventually have children. In this week of Thanksgiving I thank them for injecting some optimism in my daily experience. I thank them for being clear that buying a home is something quite different from buying stocks, and that while it is an important financial commitment, the emotional commitment is just as important, if not more.

So while this year has already brought us economic upheaval unseen since the Great Depression, even as we enter into the Not-so-great Recession we still have much for which to be thankful. We do see foreclosures in our area, but still in small numbers, especially as compared to some neighboring counties where the majority of properties are foreclosures or short sales. We live in an area of intense natural and architectural beauty. We are surrounded by an endless variety of delicious items. The life of the mind is active here. And let us not forget, even as the sun forces its way through the fog, it sets behind the Golden Gate, in this area that trully is paradise.

Fannie, Freddie Suspend Forclosures

2008-11-20T17:00:00.000-08:00

Fannie, Freddie Suspend Foreclosures
Carrie Bay | 11.20.08

Fannie Mae and Freddie Mac announced this afternoon that they are suspending all foreclosures on mortgages that the two companies own.

Both companies have ordered their national networks of mortgage servicers and foreclosure attorneys to halt all foreclosure sales and evictions involving occupied single-family properties. Freddie Mac is also including 2-4 unit occupancies as part of the suspension. The foreclosure moratoriums will take effect November 26 and go through January 9, 2009.

The suspensions will give servicers time to implement the Streamlined Modification Program announced by Fannie Mae, Freddie Mac, and their conservator, the Federal Housing Finance Agency (FHFA). The agencies' fast-track plan for getting seriously delinquent borrowers into more affordable mortgages was announced on November 11 in conjunction with the HOPE NOW Alliance and is scheduled to launch on December 15.

The temporary suspensions are also expected to give servicers more time to help troubled borrowers avoid foreclosure. Fannie Mae's attorneys and servicers plan to reach out to more than 10,000 borrowers the company estimates will be affected during the suspension period. Freddie Mac said its representatives will contact an estimated 6,000 borrowers.

“By working closely with FHFA and our servicers, Freddie Mac is on track to help three out of every five troubled borrowers with Freddie Mac-owned loans avoid foreclosure this year,” said Freddie Mac CEO David M. Moffett. “Today’s announcement builds on this momentum and provides a new measure of certainty to many of these families during the holidays.”

The chiefs of both organizations emphasized that lenders servicing mortgages they own will continue to work with distressed borrowers to consider all workout options available, such as permanent rate reductions and mortgage term extension modifications, “even if previous workout efforts have been unsuccessful,” Fannie Mae said in a written statement. This year, Freddie Mac said it expects to approve 84,000 workouts for the estimated 140,000 who are delinquent on its wholly-owned mortgages. Sister financier, Fannie Mae, did not release its workout estimates.

“Fannie Mae is committed to working with FHFA to implement the streamlined modification program as quickly as possible to help prevent unnecessary foreclosures,” said Herb Allison, Fannie Mae's CEO. “We must and will do more.”

Thanks to Gwen and Rhoda from Holmgren and Associates for this information:

REAL ESTATE FINANCE
Gwen Hoople and Rhoda Paul
Mortgage Lending Specialists
HOLMGREN + ASSOCIATES
1900 Mountain Boulevard
Oakland, CA 94611
office: 510-339-2121
fax: 510-339-1004
loans@gwenandrhoda.com

Bigger Down Payments Create Challenges for Larger Homes

2008-10-21T15:24:00.000-07:00

Some fast facts that make smaller homes easier to purchase in today's precarious lending market:

The current conforming loan limit is set at $729,000, but expected to reset as of January 1st, 2009 down to $625,000. Traditional financing is available for conforming loans with only 10% down. Down payments as low as 5% will still be possible under $625,000 with the help of FHA. The last day to qualify for the $729,000 loan is December 1st, 2008. If you act now, a qualified FHA buyer with 5% down ($38,250) can buy a $765,000 home and receive a reasonable conforming loan rate. After December 1st, qualified buyers with a 5% down ($32,500) can only buy a $650,000 and still receive a reasonable conforming loan rate.

Jumbo loans up to $1,000,o0o currently require a minimum of 25% down payment. Loan amounts from $1-1.5 million will require a minimum of 30% down. This means a jump today from a conforming $729,00o home to a $730,000 loan will require 20% more in down payment.

Today's buyer with $38,250, looks to buy the $765,000 house under the conforming loan guidelines. Say the buyer can not find a home that suits him in the price range. December first comes and goes. Time for a visit to the lender in the hopes of increasing the price range to $835,000 to meet his needs. Under the new Jumbo requirements the buyer will need 25% down ($208,750) to qualify. This buyer's wish to increase his search parameters by $70,000 is going to require digging deep. He will have to come up with an additional $170,500 down payment in the new year to accomplish his new search. Add volatility of the interest rates and the monthly payment may also increase dramatically even if the loan amount has not increased due to the larger down payment. Enter Mom and Pop: See the NYT article, Mixing Money and Family.

Jumbo rates are more expensive when buyers do qualify for them. Creative financing used to bridge the gap with second mortgages. Today, second mortgages are available up to $350,000, but only at a total loan to value ratio of 70%. This means a minimum of 30% down. These are equity line second mortgages with current rates from 4.75-5.5%.

Many clients looking to purchase larger homes do have assets. Often they already own a home with existing equity. This equity had been tapped in the past during a home purchase, based on an assumed rental value of the property. Now, in order to qualify without carrying the debt of both residences; Borrowers must retain 30% equity in the current house. They must have a signed rental agreement as proof of the rental value. They must have rental deposit verification. And they must show six months of PITI in reserves required on the current residence. Given these new restrictions, we may see more sale of house contingencies in our future. More likely, home buyers may be forced into an already bloated rental market as they seek to liquidate the equity from one property (selling first) as they strive to purchase their next home in a still competitive market. Beyond the financial stresses this often adds the stress of a second move.

Thanks to Ted and Tom from MPR Financial for helping sort out the details.

We are Rolling up Our Sleeves at Peralta Park

2008-09-17T12:47:00.000-07:00

Berkeley Hills Realty has adopted Solano-Peralta Park. In support of our local community, Berkeley Hills has voluntarily taken on the role as Peralta Park stewards. Our responsibility includes a weekly cleanup. We are at the park every Wednesday around noon, sweeping, pruning and watering. If you are in the neighborhood (Solano Avenue @ Peralta) and want to stop by, we would love to see you.

Because of recent cuts in the city's budget, the staff caring for our local parks have been stretched thin. As a result, the city was very supportive and thankful of our efforts and even donated tools and brooms. The city also put as in touch with some key individuals who have been very responsive to our questions and have provided us with guidance along the way.

If you would like to find out how you can volunteer to care for a park near you, contact your local Park and Recreation department:

City of Berkeley
2180 Milvia Street, Berkeley, CA 94704
TEL: (510) 981-6700, TDD: (510) 981-6903, FAX: (510) 981-6710
Office Hours: Mon-Fri 8am-5pm, Email: parks@ci.berkeley.ca.us

City of Oakland:
250 Frank H. Ogawa Plaza
Suite 3330
Oakland, CA 94612
(510) 238-PARK

City of Albany:
Recreation & Community Services
1249 Marin Avenue
Albany, California 94706
Telephone: (510) 524-9283

City of El Cerrito:
7007 Moeser Lane El Cerrito, CA 94530-2392
General Line: (510) 559-7000
General Fax: (510) 528-9413

Kensington
Police Protection and Community Services District
(510) 526-4141
http://www.kensingtoncalifornia.org/parks-and-recreation

News of Government Takeovers: Freddie Mac & Fannie Mae

2008-09-09T11:16:00.000-07:00

The Jury is out on whether long term government involvement of these formerly private institutions will benefit our home buyers. So far the market has reacted possitively.

Our hope is that the resulting lower interest rates (at least in the short term) may make this an exceptionally good time to invest again in real estate. Could we be facing a unique market where the bottom (assuming we are near the bottom) could actually coexist with reasonable interest rates?

From AP:
Investors, Industry Pleased With Govt. Takeover

Here is the California Association of Realtor's official (cautiously optimistic) stance:

In light of the U.S. Dept. of the Treasury's action, C.A.R. today reaffirmed its support for Fannie Mae and Freddie Mac and their countercyclical roles.

While the short-term impact of the Treasury's actions over the weekend served to calm the markets and restore confidence, in the longer term these entities need to be able to fulfill their historic mission. A privatized Fannie and Freddie will short-circuit the countercyclical role the GSEs have played during precarious times in real estate markets.

Without an institutionalized mortgage-backed securities market, mortgage capital eventually will be less predictable and more expensive, and adjustable-rate mortgages could become the standard loan for home buyers, as could higher down payment requirements. The 30-year, fixed-rate mortgage as we know it will no longer be readily available for most home buyers and may effectively disappear. The result could be a dramatic decline in homeownership rates in California and across the nation.

C.A.R. is concerned that the Treasury, and Fannie Mae's and Freddie Mac's new CEOs, will overreact and change the mission and role of the GSEs. Wall Street and investors are understandably reluctant to buy mortgage backed securities (MBS) that are not either originated from or guaranteed by Fannie or Freddie.

The GSEs hold or have securitized nearly half -- roughly $5 trillion -- of all mortgages in the U.S., and in the current environment with private lender constraints, they account for the vast majority of all new mortgages in California.

We have just recently begun to see an increase in home sales, currently at nearly 490,000 units on an annualized basis, up from 284,000 in the fourth quarter of last year. The most significant, reliable source of home loans in California today are financed by either Fannie Mae or Freddie Mac. California's and the nation's housing markets simply cannot withstand the financial rug being pulled out from beneath them. Additionally, the repercussions this could have on the already weak economy could be devastating.

Berkeley Homes Sold Prices for August 2008

2008-09-03T16:56:00.000-07:00

The East Bay real estate market remains strong, as evidenced by the recorded sales in Berkeley for the month of August. Note that the statistics for Map Area 8 are skewed by one anomoly. Most areas averaged less than thirty days on the market and many sold for more the the asking price. We captured Berkeley to give a snapshot indication of the market for the month of August. Oakland, Albany, El Cerrito and Kensington statistics are also available upon request.

Address	Original Price	Sold Price	%	DOM

Berkeley Map Area 1
2206 ROSE ST	$695,000	$695,000	100%	16
1185 GLEN AVE	$1,549,000	$1,180,000	76%	32
644 CRAGMONT AVE	$1,495,000	$1,400,000	94%	40
699 HILLDALE AVE	$735,000	$810,000	110%	18
954 GRIZZLY PEAK BLVD	$975,000	$950,000	97%	29
996 CRAGMONT AVE	$789,000	$785,000	99%	30
1175 OXFORD ST	$899,000	$910,000	101%	19
1291 GRIZZLY PEAK BLVD	$699,000	$801,000	115%	19
28 SENIOR AVENUE	$890,000	$890,000	100%	15
774 NEILSON ST	$599,000	$535,000	89%	14
2707 ROSE ST	$599,000	$725,000	121%	18
145 FOREST LN	$990,000	$981,300	99%	11
590 CRAGMONT AVE	$995,000	$900,000	90%	24
798 WILDCAT CANYON RD	$935,000	$925,000	99%	13
2652 SHASTA RD	$1,150,000	$1,020,000	89%	0
355 ARLINGTON AVE	$879,000	$920,000	105%	12
Totals	$14,873,000	$14,427,300	97%	19

Berkeley Map Area 2
1357 Northside Avenue	$620,000	$599,000	97%	68
806 CONTRA COSTA AVE	$849,000	$833,700	98%	28
1064 MONTEREY AVE	$789,000	$703,000	89%	40
1703 VINE ST	$699,000	$758,000	108%	17
1921 CAPISTRANO AVE	$1,050,000	$1,175,000	112%	13
1347 CURTIS ST	$729,000	$719,000	99%	29
Totals	$4,736,000	$4,787,700	101%	33

Berkeley Map Area 3
1301 MILVIA ST	$698,000	$764,300	109%	24
1511 ROSE ST	$650,000	$620,000	95%	66
1844 VINE ST	$799,000	$785,000	98%	10
Totals	$2,147,000	$2,169,300	101%	33

Berkeley Map Area 4
1219 EVELYN AVE	$394,900	$363,900	92%	7
1140 CEDAR ST	$749,000	$810,000	108%	16
Totals	$1,143,900	$1,173,900	103%	12

Berkeley Map Area 6
2210 7TH ST	$679,000	$620,000	91%	58
941 BANCROFT WAY	$514,900	$477,500	93%	20
Totals	$1,193,900	$1,097,500	92%	39

Berkeley Map Area 7
1531 OREGON ST	$399,000	$350,000	88%	79
2928 Otis	$529,900	$565,000	107%	10
2430 BONAR ST	$619,000	$624,000	101%	12
2302 CALIFORNIA ST	$539,000	$591,000	110%	16
1324 TALBOT AVE	$375,000	$415,000	111%	9
Totals	$2,461,900	$2,545,000	103%	25

Berkeley Map Area 8
1708 OREGON ST	$649,500	$515,000	79%	305
1402 DWIGHT WAY	$549,000	$554,000	101%	10
3020 MARTIN LUTHER KING JR WAY	$439,900	$439,900	100%	0
1525 PARKER ST	$595,000	$588,000	99%	0
Totals	$2,233,400	$2,096,900	94%	79

Berkeley Map Area 10
2925 ASHBY AVE	$850,000	$790,000	93%	48
2436 STUART ST	$529,000	$555,000	105%	20
365 PANORAMIC WAY	$929,000	$949,000	102%	13
2805 PARKER ST	$750,000	$760,000	101%	10
76 PLAZA DR	$1,195,000	$1,285,000	108%	12
Totals	$4,253,000	$4,339,000	102%	21

What Buyers Should Expect from a Real Estate Agent

2008-08-15T09:50:00.000-07:00

Buying a home is a very personal decision and you need to feel confident that your best interests are at heart. Here is what you should expect of your Realtor:

1. Preview homes. You can communicate what you want from a logical standpoint, but your agent should also see homes with you to find out what appeals to you on a visceral level. Then, he/she should be willing to do some of the leg work for you by previewing homes on Broker’s tour.

2. Educate. Beyond looking at houses, spending some “face-to-face” time learning about the market and the process is important. Our market is very unique and there is often a bell curve with new buyers. Some savvy buyers get their offer accepted on the first home that interests them. Other buyers need to write a few offers to understand our market, particularly if there is competition in their chosen area and price range. A good agent can shorten this learning curve and help you feel ready for that first house.

3. Navigate new financing options. With more banks pulling out of the wholesale market, it often makes sense to look for loans in more places. Your Realtor can help navigate the waters. Appraisals have also become a bigger issue than they have been in the past. Now the pendulum has swung so far north that houses we know to have solid value fail to appraise. If there isn’t a good comparable within ¼ mile and within the last three months (as is often the case with our inventory) the appraiser may have a problem. Your Realtor needs to know what is happening in the lending market and what the potential pitfalls are. It may make sense in some instances to have the loan/appraisal contingency run for the entire length of the transaction.

4. Know the local jurisdiction. There is a pile of paperwork involved in buying a home. Some is standard for all of California. Some ordinances are specific to each city. For instance, Berkeley has a Residential Energy Conservation Ordinance (RECO), a sewer lateral ordinance, rent control and a seismic rebate program. You need an agent who is knowledgeable in the area want to purchase in to make sure none of this is overlooked.

5. Know the land. Are there issues/concerns that are specific to the home's topographical location? Is it in an area with known soils issues? Is it built over/near a culverted creek?

6. Know the housing stock. There are also potential issues specific to our older housing stock. Could there be a buried oil tank from an old heating system? Were the proper permits taken out and finalized for any improvements? Are there any hazardous materials present such as asbestos? Can the old foundation accept bolts for seismic retrofitting?

7. Negotiate the best price and terms. With good negotiating skills you can get a better price for the house. By knowing what to look for in inspections, a good agent can limit future surprises and mitigate the expense by negotiating for repairs during the transaction.

8. Manage a smooth transaction. When your offer is accepted your agent guides the transaction to closing and coordinates inspections, manages the escrow, and maintains the time-line.

9. After sale follow-up. Most good agents are available after escrow closes for advice and resources.

In short, it is a complicated process. You are best represented by a diligent, accessible, knowledgeable agent. This is the biggest purchase most people will make in their lives and you should search to find the best representation. A good agent can buy you peace of mind.

Get an Interest Free Home Loan from Uncle Sam

2008-08-08T15:28:00.001-07:00

SFGate 8/3/08, How Home Purchase Federal Tax Credit Works:
(08-03) 04:00 PDT Washington -- Anybody who's been sitting on the sidelines hesitant to jump into real estate until conditions settle down should know these dates: April 9, 2008, through June 30, 2009.

They mark the eligibility time to qualify for the home purchase tax credit created by the massive housing bill approved by Congress. If you have not owned a house during the past three years - or are considering buying your first home - and can go to closing before the end of next June, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).

In order to stimulate the national housing market, Congress is offering this incentive to encourage buyers to buy before the June 2009 deadline. It is money you will need to pay back. Still, time is money and since you can use it now and pay it back in the future without any interest or fees; there is real value to the credit.

At its core, the new tax credit functions very much like an interest-free loan for up to $7,500. You pay the principal back in increments over time, but there's no interest charge to you.

Rob Dietz, an economist for the National Association of Home Builders, says the new credit not only will pull first-time buyers into the market, but also have a powerful multiplier effect, as thousands of sellers of these credit-assisted houses go out and purchase replacement homes for themselves - extending the impact of the credit into the move-up segment.

How do you claim the credit? If you pass the eligibility tests and buy before June 30, you simply request the credit on your tax return for either 2008 or 2009, which will be modified for that purpose. Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return.

For an overview of the credit see the SFGate article (click here), or go to www.federalhousingtaxcredit.com.

Berkeley Home Sold Prices for July of 2008

2008-07-31T15:55:00.000-07:00

The East Bay real estate market remains strong, as evidenced by the recorded sales in Berkeley for the month of July. Many homes have still sold for more than the asking price. We captured Berkeley to give a snapshot indication of the market for the month of July. Oakland, Albany, El Cerrito and Kensington statistics are also available upon request.

Address	Original Price	Sold Price	%	DOM

Berkeley Map Area 1
2371 EUNICE ST	$1,245,000	$999,500	80%	108
780 Spruce	$1,125,000	$940,000	84%	87
2471 CEDAR ST	$999,500	$1,000,000	100%	74
1501 OLYMPUS AVE	$648,000	$618,000	95%	34
2 QUAIL AVE	$940,000	$890,000	95%	35
34 FLORIDA AVE	$1,195,000	$1,195,000	100%	15
14 QUAIL AVE	$635,000	$650,000	102%	14
763 CRAGMONT AVE	$985,000	$1,050,000	107%	12
1542 LE ROY AVE	$1,795,000	$1,702,240	95%	13
2 GREENWOOD CMN	$1,079,000	$1,260,000	117%	22
192 FAIRLAWN DR	$489,000	$512,000	105%	14
1946 MARIN AVE	$799,000	$750,000	94%	21
Totals	$11,934,500	$11,566,740	97%	37

Berkeley Map Area 2
1178 COLUSA AVE	$850,000	$777,000	91%	65
532 Vincente Avenue	$1,080,000	$970,000	90%	36
740 ENSENADA AVE	$599,000	$600,000	100%	15
641 NEILSON ST	$760,000	$744,050	98%	12
1950 Vine St	$550,000	$560,814	102%	19
1793 SAN LORENZO AVE	$839,000	$860,000	103%	27
1821 HOPKINS ST	$1,060,000	$1,030,000	97%	17
1972 YOSEMITE RD	$1,295,000	$1,250,000	97%	39
560 COLUSA AVE	$769,000	$750,000	98%	18
1531 THOUSAND OAKS BLVD	$679,000	$699,000	103%	12
551 NEILSON ST	$795,000	$875,000	110%	9
1727 CAPISTRANO AVE	$798,000	$882,000	111%	13
Totals	$10,074,000	$9,997,864	99%	24

Berkeley Map Area 3
1607 Martin Luther King Jr Wy	$1,290,000	$1,035,000	80%	93
1538 Martin Luther King Jr Wy	$875,000	$820,000	94%	51
1306 MILVIA ST	$1,195,000	$1,350,000	113%	13
1740 MCGEE AVE	$579,000	$665,000	115%	11
1332 CARLOTTA AVE	$850,000	$1,111,000	131%	16
1410 CYPRESS ST	$699,000	$650,000	93%	8
1510 JOSEPHINE ST	$995,000	$1,230,000	124%	14
Totals	$6,483,000	$6,861,000	106%	29

Berkeley Map Area 4
1421 HEARST ST	$599,000	$550,000	92%	6
1377 FRANCISCO ST	$550,000	$600,000	109%	15
1607 BELVEDERE AVE	$579,000	$615,000	106%	14
1488 KEONCREST DR	$719,500	$793,000	110%	11
Totals	$2,447,500	$2,558,000	105%	12

Berkeley Map Area 5
1429 HARMON ST	$534,900	$426,000	80%	270
2512 RUSSELL ST	$975,000	$1,244,000	128%	13
1532 7TH ST	$499,000	$575,000	115%	15
Totals	$2,008,900	$2,245,000	112%	99

Berkeley Map Area 6
1716 7TH ST	$474,900	$449,900	95%	15
Totals	$474,900	$449,900	95%	15

Berkeley Map Area 7
1521 PARKER ST	$539,000	$575,000	107%	21
2350 WEST ST	$515,000	$515,000	100%	0
Totals	$1,054,000	$1,090,000	103%	11

Berkeley Map Area 8
3034 HARPER ST	$389,000	$401,000	103%	16
2901 KING ST	$295,000	$305,000	103%	16
2604 MATHEWS ST	$795,000	$855,000	108%	14
2641 MATHEWS ST	$499,000	$490,000	98%	30
2754 MATHEWS ST	$519,000	$535,000	103%	14
1314 67TH ST	$449,000	$475,000	106%	15
Totals	$2,946,000	$3,061,000	104%	18

Berkeley Map Area 9
2111 WOOLSEY ST	$579,000	$540,000	93%	53
2509 WOOLSEY ST	$975,000	$961,435	99%	13
Totals	$1,554,000	$1,501,435	97%	33

Berkeley Map Area 10
67 EL CAMINO REAL	$849,000	$810,833	96%	23
3020 BATEMAN ST	$799,000	$825,000	103%	15
3300 CLAREMONT AVE	$975,000	$975,000	100%	14
49 EVERGREEN LN	$1,545,000	$1,565,000	101%	7
46 ROANOKE RD	$711,000	$699,000	98%	8
19 ALVARADO RD	$1,595,000	$1,806,000	113%	19
Totals	$6,474,000	$6,680,833	103%	14

Places Worth Caring About

2008-07-18T11:02:00.000-07:00

The original noble purpose of this blog was to explore new ways to encourage and cultivate good citizenship in our communities. A new era is upon us. Fuel prices are increasing and fringe topics such as "New Urbanism" and "Living Locally" are gaining mainstream popularity. Suddenly it seems that community just might be what saves our planet and the human race. We knew it was a noble cause.

The East Bay is unique. There are no big box stores in Berkeley. For years I have heard its citizens proudly differentiate themselves from suburbia. Our urban centers have neighborhood or street names like Rockridge and Piedmont Avenue. It hasn't always been clear why this is better...until recent social studies sought to duplicate and distill its charms.

From the Charter of the New Urbanism:

We advocate the restructuring of public policy and development practices to support the following principles: neighborhoods should be diverse in use and population; communities should be designed for the pedestrian and transit as well as the car; cities and towns should be shaped by physically defined and universally accessible public spaces and community institutions; urban places should be framed by architecture and landscape design that celebrate local history, climate, ecology, and building practice.

To get a sense of the places we have created as a nation-- and the places we need to build and care about in the future, watch the following James Howard Kunstler discussion titled, The Tragedy of Suburbia. Please note that the F-word is used in his speech. Do not watch if you would find this offensive. The video takes approximately twenty minutes. If you want to skip any offensive language and get to the heart of the matter, the last four minutes are worthwhile.