Visit San Jose video!

San Jose, the hear of the Silicon Valley, the largest and most populous city in this valley now has an exciting new video for prospective residences and tourists. 

Visit San Jose!!!

6 Stellar Reasons to Buy a Home in 2016

Is it really 2016 already?  For those of you who happen to be planning on buying a home in the new year—or even just trying to—there’s a whole lot to celebrate. Why? A variety of financial vectors have dovetailed to make this the perfect storm for home buyers to get out there and make an (winning) offer. Here are six home-buying reasons to be thankful while ringing in the new year:

Reason No. 1: Interest rates are still at record lows

Even though they may creep up at any moment, it’s nonetheless a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%.

“Remember 18.5% in the ’80s?” asks Tom Postilio, a real estate broker with Douglas Elliman Real Estate and a star of HGTV’s “Selling New York.”“It is likely that we’ll never see interest rates this low again. So while prices are high in some markets, the savings in interest payments could easily amount to hundreds of thousands of dollars over the life of the mortgage.”

Reason No. 2: Rents have skyrocketed

Another reason home buyers are lucky is that rents are going up, up, up! (This, on the other hand, is a reason not to be thankful if you’re a renter.) In fact, rents outpaced home values in 20 of the 35 biggest housing markets in 2015. What’s more, according to the 2015 Rent.com Rental Market Report, 88% of property managers raised their rent in the past 12 months, and an 8% hike is predicted for 2016.

“In most metropolitan cities, monthly rent is comparable to that of a monthly mortgage payment, sometimes more,” says Heather Garriock, mortgage agent for The Mortgage Group. “Doesn’t it make more sense to put those monthly chunks of money into your own appreciating asset rather than handing it over to your landlord and saying goodbye to it forever?”

Reason No. 3: Home prices are stabilizing

For the first time in years, prices that have been climbing steadily upward are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers, even in heated markets.

“Local markets vary, but generally we are experiencing a cooling period,” says Postilio. “At this moment, buyers have the opportunity to capitalize on this.”

Reason No. 4: Down payments don’t need to break the bank

Probably the biggest obstacle that prevents renters from becoming homeowners is pulling together a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs to help home buyers. For instance, the new Fannie Mae and Freddie Mac Home Possible Advantage Program allows for a 3% down payment for credit scores as low as 620.

Reason No. 5: Mortgage insurance is a deal, too

If you do decide to put less than 20% down on a home, you are then required to have mortgage insurance (basically in case you default). A workaround to handle this, however, is to take out a loan from the Federal Housing Administration—a government mortgage insurer that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85% of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you fund it this way. In fact, the FHA predicts this 37% annual premium cut will bring 250,000 first-time buyers into the market. Why not be one of them?

Reason No. 6: You’ll reap major tax breaks

Tax laws continue to favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! The biggest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners may also deduct certain home-related expenses and home property taxes.

Source: Realtor.com, Kimberly Neumann
http://www.realtor.com/advice/buy/reasons-to-buy-home-in-2016/

Selling a home in 2016? Here's what you need to know

Selling a home can be a stressful experience.

If you expect to put your home on the block at some point in 2016, here are some key factors for you to keep in mind before you address issues and concerns to make the best possible deal.

It's a seller's market ...

Many homeowners remember the fallout that the housing bust had on real-estate prices. Even though most investors think of the financial crisis as having hit its peak in 2008 and early 2009, it took three more years for home prices to hit bottom.

Yet since early 2012, prices have climbed higher, and the Case-Shiller National Home Price Index is coming within spitting distance of matching its highs from 2006 and 2007.

Where you live is a key factor in determining just how much of a seller's market you can expect. Hot markets like San Francisco have seen some housing-boom-era practices return to favor, with many reports of bidding wars that result in offers well above the asking price.

By contrast, areas where economic prospects are less favorable have never fully recovered from the housing bust. The more lucrative a region's economic future appears to be, the easier you can expect it to be to sell a home.

... but mortgages could get more expensive

One key factor in how much sellers receive for their homes is how much buyers can afford. Low mortgage rates have helped fuel price increases in recent years.

But some now fear that with the Federal Reserve having begun a new cycle of rate increases, a move higher for mortgage rates could make homes less affordable.

So far, the tiny quarter-point boost that the Fed made in mid-December hasn't pushed mortgage rates appreciably higher. Historically, though, tightening has generally led to increased rates on mortgage loans. Sellers need to be prepared for greater difficulty for prospective buyers trying to get financing.

Tax benefits still favor home sales

The biggest tax break for ordinary taxpayers is still the exclusion on capital gains for the sale of a personal residence. Single taxpayers can exclude up to $250,000 in gains from the sale of a home from tax, and joint filers get a double-sized exclusion of $500,000.

To qualify, you have to meet a couple of tests. First, the property in question has to be your main home. In addition, to get the full exclusion, you have to have lived in the home for at least 24 months in the past five years.

You can't have claimed a home-sale exclusion on tax returns for the previous two years. In some cases, partial exclusions are available, but getting specific tax advice from your accountant or tax professional is essential to make sure you're aware of all the tax implications of a home sale.

Get help at the right price

Most homeowners use a real-estate agent to help market and sell their homes. Historically, the typical 6% commission on home sales was sacrosanct, but some agents have increasingly been willing to negotiate lower commissions for their services.

Flat-fee brokerages have also popped up, offering a fixed cost that sellers can count on that's often lower than the percentage-based commission would be.

The issue raises a huge debate in the real-estate community, with full-service agents arguing that they fully earn their commissions by bringing in more potential buyers and eventually getting higher sale prices.

Yet with some agencies offering incentives to buyers and sellers that reduce net commission costs, sellers should realize that they have leverage in coming up with a deal that works for them.

Selling a home is a monumental event, and it can introduce a number of complicated financial considerations. Being aware of those considerations and making a plan to deal with them will help the selling process go a lot more smoothly.

Source: CNN Money, Dan Caplinger
http://money.cnn.com/2015/12/24/news/economy/selling-home-housing-market/index.html?iid=Lead

HACKERS CONTINUE TO PERPETRATE WIRE TRANSFER FRAUD IN REAL ESTATE TRANSACTIONS

About one year ago, our column dealt with the subject of wire transfer fraud in real estate transactions. Regrettably, the topic is still a current one. On December 15, NAR issued an alert on the subject. Anecdotally, incidents have increased in the Southern California area. The nature of the scam is unchanged, so what was said last year is still on point. It goes as follows.

Wire transfer instructions are emailed to the buyer. The buyer complies with the instructions to the letter. The next day, escrow contacts the buyer asking if the money has been sent yet. The buyer checks with his bank and is assured that the funds have been transferred out. When the money has still not shown up, everyone begins to retrace steps. As it turns out, the wiring instruction was bogus. The email came from an address that looked very much like that of the escrow or title company, but it was not actually theirs.

And the recipient bank account? It was real; it just wasn't the correct one. And, yes, it has been emptied out by now.

The scheme has been perpetrated by hackers, and it has been going on around the country for a while now. Chicago Title put out an alert that described the steps involved. We summarize them here:

First, hackers identify the email accounts of real estate agents and brokers. Then they hack directly into the accounts "and identify emails referencing pending real estate deals. From these strings of emails, the hackers pull out specific details about the deal, such as: (a) the parties' names, (b) the title company involved, (c) the escrow officer in charge of the deal, and (d) other information specific to the transaction."

Next, they send fraudulent email "directly to the buyer or lender, making it look like it was sent by the real estate agent, mortgage broker, or escrow agent. These fraudulent emails now direct the buyer and/or lender to wire the funds necessary to close escrow directly to a different bank account than provided in the preliminary report or in the escrow instructions. Obviously, this new bank account is controlled by the hacker, not the title company or the escrow holder."

Then, if the buyer, or the lender, does not detect the fraud, "the money is wired to the bogus account controlled by the hacker and is immediately withdrawn. Due to the amounts involved and the complex nature of investigating and prosecuting wire fraud, the odds are that the authorities will do nothing to help in these instances." [my emphasis]

For the most part, prevention recommendations tend to focus on the non-secure nature of most email accounts. It's a fair bet that most real estate agents do not have secure accounts and they can be easily hacked. But, in a world where Target, Sony, and the Defense Department get hacked, it is not plausible to think that most agents, escrow companies, and clients are ever going to enjoy a very high level of security.

While suggestions like two-factor authentication and encrypted emails may have their place, it is refreshing that a practical, non-technical word of advice comes from, of all places, an alert put out by the Silicon Valley Association of REALTORS®. To wit:

"Buyers and sellers should confirm all email wiring instructions directly with the escrow officer by calling the escrow officer on the telephone. In that conversation, the correct account number information should be repeated verbally before taking any steps to have the funds transferred."

Certainly, if wiring instructions are changed via email, the buyer should confirm that by phone with the escrow officer and the buyer's real estate agent.

Source: RealtyTimes, Bob Hung
http://realtytimes.com/consumeradvice/buyersadvice1/item/41183-20151229-hackers-continue-to-perpetrate-wire-transfer-fraud-in-real-estate-transactions

Should You Write a Letter to a Seller?

Buyers in competitive markets want a leg up. If their all-cash, non-contingent offer is not enough to beat out the 10 other offers, they need to go to extreme measures: a letter to the sellers.

Buyers often ask if this indirect means of communication to the seller will work. The answer is, sometimes.

When it works, it’s great. But many times, the letter won’t do much. Here are some points to consider if you want to write a letter to a seller.

Who is the seller?

If you love the home and want to structure the best possible offer, it’s best to find out as much as you can about the seller and their situation. Knowing who you could be going into contract with should help inform you about the best way to approach them.

How do you do this? Through your agent. Ask her to inquire with the listing agent to find out who the sellers are, why they’re selling, and what their motivations are. The more you know, the better off you’ll be.

Some buyers go as far as Googling the seller or looking them up on social media to find a connection — any connection.

Appeal to long-time homeowners

If you’re dealing with a seller with a family home, this is your best chance. Real estate is incredibly emotional. Someone who has lived in the home for many years, or an owner’s child who grew up in the home, will have lots of experiences, memories and emotions tied up in the home. Any emotions they harbor about the house will influence them when reviewing offers.

Simply put, they’ll want to know who the potential buyers are. They might prefer a homeowner who plans to live in the home like they did, rather than a developer or investor who may demolish the home.

Appeal to their emotions by writing a letter of introduction explaining who you are, why you love the home, and how you will carry on their legacy.

Investors: don’t waste your time

If the home is a rental property and the owner has held it as an investment for that purpose, a letter probably won’t do you much good. Someone who has used the property as an investment will concern themselves mainly with the bottom line. While a letter might be slightly interesting to this owner, it will likely fall on deaf ears.

Better than a letter, give them a clean offer with your best price and terms out of the gate.

Connect with the seller

Simply by walking through the home, you may get a good feel for who the seller is. By looking at their art, furniture, family photos or diplomas, you can get a sense of their likes, dislikes, and interests. Don’t forget, they have what you want — the home. You must do your best to try to connect with them on some level.

Connecting means taking note of who they are and then delivering them something that will hit home. I once had a buyer who loved riding horses. In the home she wanted to purchase, she noticed horse show trophies stacked in the basement, so in her letter she mentioned that she, too, rode horses. This small but important connection made the difference between her offer and another with similar price and terms.

Often the buyer needs to sell themselves to the seller, particularly in competitive situations. Know your seller, do your research and understand their motivations. Look around, take note and work closely with your agent to dig as deeply as possible.

In competitive situations and with the right seller, a direct letter to them can make a huge difference.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/should-you-write-letter-to-seller-189947/

Wishing you and your loved ones a Very Merry Christmas and Happy New Year!

Sincerely,

The Mimi Wang Team

Foreclosures Just Got Way Fancier: How to Score a Deal on a Luxury Home

Think foreclosed homes are always ramshackle properties with overgrown lawns, boarded-up windows, and hordes of squatters? On the contrary, they can also be mansions on the beach or stately apartments at the top of a Four Seasons Hotel that, even in their “distressed” state, are worth well into the six figures.

In fact, foreclosures priced at more than a $1 million have been in such high demand lately, they’ve been creating bidding wars and selling at a premium.

So what’s the story behind these high-end abandoned abodes? Many represent strategic choices by homeowners to walk away from an underwater investment property. Because these owners often have more than one place, they don’t have as much of an emotional connection to each one.

“Luxury owners view it as a business decision and not as much as a personal failure,” says Bruce Ailion, an Atlanta-based Realtor® and attorney. It’s a business decision for them, but an opportunity for you!

But buying a foreclosure, especially a high-end one, isn’t for the faint of heart, since its high price tag makes it a heftier risk. So if you’re curious about what it takes, here are some tips on doing it right—and some current listings that will get you salivating.

Weigh repairs and improvements carefully

Even high-end homes have flaws that must be fixed. And while banks will typically make repairs and improvements to luxury foreclosure homes before listing them, they may make low-cost fixes that could conflict sharply with the character and value of the home—so keep an eye out for things such as cheap carpet or crummy appliances. Also, try to get an inspector with experience in the luxury market.

“Just as you would not have your Ferrari worked on at the corner garage, you should not choose just anyone to evaluate a complex home,” Ailion says. And if you or an inspector finds an issue, know that banks are less likely to pay for it than to give you a discount to take care of it. “Banks typically want to sell these properties as is,” Ailion says. And the more high-end or custom a home, the more expensive those repairs will be.

Skip the lowball offer

The days of getting a 50% discount on a property because it’s bank-owned have passed. If the home is in good condition—as luxury homes tend to be—you’ll likely be competing with investors and all-cash offers.

“Banks are a lot less motivated to make deals happen than they were in 2008, when they just wanted to get things off their books,” says Ryan Wright, CEO of DoHardMoney.com, which provides financial services to fix-and-flip real estate investors. In fact, this year foreclosures worth more than $1 million were selling at an average of 3% above asking price!

Bottom line: If you have your eye on a home, know that haggling too hard may get you knocked out of competition.

But don’t overpay, either

While lowball offers don’t behoove you, neither does overpaying. So don’t get sucked into going over budget to win the property.

“Oftentimes there are bidding wars on these properties, and we’ll see buyers pay upward of $600,000 more than what the list price is,” says Alexandria Carlson, an associate broker with Engel & Volkers in Scottsdale, AZ. Know what your limit is, and stick to it: Foreclosure or not, if you end up paying more than the property is worth (or than you can afford), you’re getting a bad deal.

Find the right Realtor(s)

Since there’s a ton of extra paperwork involved with buying a bank-owned property, smooth the process by working with a Realtor® experienced in foreclosures. And since luxury properties have their own peculiarities, you’re best off getting someone with experience in both areas: foreclosures and the luxury market. And if you can’t, consider hiring two agents that can work as a team for you and split the commission.

Here’s a sample of some of the high-end foreclosures available now:

451 Mashta Drive, Key Biscayne, FL

List price: $8.9 million

This nine-bedroom, seven-bathroom, Mediterranean-style estate is on the water with a private dock and ocean access.

132 E. Delaware Place, Apt. 6302, Chicago, IL

List price: $5.9 million

This 7,000-square-foot duplex has stunning city views and is located at the top of the Four Seasons Hotel—easily near fine dining.

12 Horizon, Newport Coast, CA

List price: $4.9 million

This 7,400-square-foot residence in Pelican Hill Estates has six bedrooms and 7.5 bathrooms. And check out that pool!

50 Bellevue, Ave., Piedmont, CA

List price: $3.9 million

In addition to five bedrooms and 4.5 bathrooms, this home has a library and ballroom—what debutante could resist?

2515 Mercedes Drive, Fort Lauderdale, FL

List price: $3.5 million

This waterfront, four-bedroom, 7,700-square-foot home needs work, but it has a private boat dock and an elevator. Apparently, stairs are optional in this multimillion-dollar home!

Source: Realtor.com, Beth Braverman

http://www.realtor.com/advice/buy/how-to-buy-luxury-foreclosure-homes/?iid=rdc_news_hp_carousel_theLatest

Preventing Accidents at Home During the Holidays

Lights are strung up on houses and trees throughout neighborhoods, snowflakes decorate grade school classrooms, and candy canes fill grocery store shelves. The holidays have snuck up on us yet again.

And with so much going on during this time of year, the old adage “accidents happen” should be kept in mind. The stress of decorating, buying gifts and prepping for the arrival of friends and family can leave even the calmest individuals feeling frazzled. And when your attention is diverted due to stress, injuries or disasters can occur.

An estimated 13,000 injuries result in visits to the emergency room each year around the holidays, according to the U.S. Consumer Product Safety Commission. To keep accidents from spoiling your holiday cheer, follow these safety tips.

Deck the halls

Decorating for the holidays is one of the most widely embraced traditions of the season, but it also can be one of the most dangerous. The most popular decorating-related accidents can be the result of hanging strands of lights, and can include anything from falling off ladders to suffering electrical shocks.

The Centers for Disease Control and Prevention (CDC) reports that the holiday months are responsible for more fall-related injuries than any other time of year.

To keep yourself from becoming a statistic, test all lights before hanging them, and have a friend or family member hold a ladder steady while you’re decorating the roof or a tree in your yard.

Wrap presents, not bandages

Few things are more central to the holiday season than wrapping presents and hanging ornaments. Many people get excited to spoil their loved ones with gifts, and to get the ornaments out of storage to make the house more festive.

Though they’re part of the fun of decorating, these common holiday rituals can result in visits to the hospital if you’re not careful.

Think about it: Wrapping presents exposes you to slicing your hand with scissors or paper, and ornaments can fall or shatter, resulting in lacerations if someone steps on a piece of broken glass.

To help combat potential cuts:

• Take your time wrapping presents, and devote your full attention to the task.
• Always supervise children when handling scissors and wrapping gifts.
• Refrain from hanging breakable ornaments on low tree branches where kids or pets could knock them off.
• If an ornament does break, keep children and pets away from the area and clean up the mess immediately, making sure even the tiniest shards of glass are removed from the floor.

Lift with your legs

Many people must travel to be with loved ones during the holidays, and that may mean lugging around a heavy suitcase. And with loved ones coming to visit, it’s important to shovel snow out of driveways and sidewalks to reduce injuries.

These tasks may seem innocuous, but they can be far from it. The CDC reports that more than 50,000 winter-related back injuries occur each year.

When shoveling snow or transporting luggage — though it may sound silly — make sure you stretch beforehand, wear appropriate attire (including shoes with traction), keep a steady pace, hydrate, and lift with your legs while keeping your upper body straight to reduce strain and tension on your back.

Chestnuts roasting on an open fire

It’s extremely likely that you’ll hear this classic holiday song this month. It’s also likely that your home may be at risk for structure fires.

Strands of lights with frayed wires, Christmas trees, space heaters, candles, flammable items placed too close to open flames, and cooking all present risks for home fires during the holidays.

According to the National Fire Protection Association statistics for home fires between 2009 and 2013, Christmas Eve and Christmas Day are two of the top three days of the year for home candle fires; Christmas tree fires resulted in $17.5 million of property damage per year; and decorations (excluding Christmas trees) were the first items ignited in about 860 home fires, causing an average of $13.4 million worth of property damage per year.

While fire typically is covered by standard home insurance, no one wants to go through the hassle.

Keep your home safe, take these precautions:

• Test trees before bringing them into your home to ensure they’re not dried out, thus becoming a fire hazard. This is done by hitting the trunk of the tree against the ground. If a lot of needles fall off of the branches, keep searching for a healthier tree.
• Check all lights before hanging them on trees or other flammable decorations.
• Keep stockings and other flammable items a safe distance from the flames of the fireplace or decorative candles.
• Never leave space heaters or food cooking on the stovetop or in the oven unattended, and keep items that can easily ignite a safe distance away (typically a minimum of three feet).

This holiday season, make sure that your home insurance is up to snuff and will protect you, your family, and your home in the event of disaster such as an injury or home fire.

Source: Zillow Blog, Shannon Ireland
http://www.zillow.com/blog/prevent-accidents-at-holidays-189848/

Massive high-rise project eyed for downtown San Jose's Greyhound site

San Jose, the heart of the Silicon Valley, is growing and renewing itself and this new development is proof of that in my opinion. As the demand for housing continues, San Jose and the other cities that make up the Silicon Valley area scramble to build more to keep up with demand.



San Jose's Greyhound bus terminal could sprout two residential towers totaling more than 700 units in what would be the largest project by unit count ever proposed for the central business district.

KT Urban, downtown's most prodigious high-rise developer, last week turned in an early concept to the San Jose Planning Department for the roughly 1.6-acre site at 70 S. Almaden Ave., according to city records. The application is preliminary, meaning it is meant merely to gather feedback from staff. But it provides the first public glimpse at what KT envisions for the location, and is a clear signal that the redevelopment of the parcel is moving forward, five months after I first reported that KT was in contract to buy the land from Greyhound.

Mark Tersini, principal with Cupertino-based KT Urban, declined to comment. Greyhound, which is hoping to move its bus terminal to Diridon Station, didn't return a request for comment.

The newest proposal comes at the end of a very busy year for residential development downtown, with several high-rise and mid-rise projects breaking ground and entering the development pipeline. Downtown development blogger Mark Haney counts 4,516 units proposed and 1,898 under construction, most of them rentals, in the central core. Right across the street from the Greyhound site, Simeon Residential Properties is seeking approval for a 21-story, 202-unit apartment complex.

And it's just the latest tower design from KT, which built the Axis condo tower, developed the One South Market apartment high-rise and spearheaded the 643-unit Silvery Towers complex, now under construction across from San Pedro Square Market.

The KT Urban concept would see a 24-story and a 23-story tower resting on three levels of underground parking. The plans show multiple potential orientations for the buildings, including east/west and north/south layouts, and it's unclear which direction the developer will be going. One tower would include 294 units, while the other would have 414. The buildings could reach 241 and 251 feet tall.

Also not nailed down: The architecture. The design firm is C2K, which has done KT Urban's other projects. Two large renderings included in the preliminary application show different facades: In one, a glassy skin resembles the One South Market look, with some vertical and horizontal elements breaking up the massing. In the other, a brick facade gives the building more texture between windows.

While much remains unclear, the site is primed for its next act. Scott Knies, executive director of the San Jose Downtown Association, called the block one of the best spots in the district, with a location that's smack dab in the middle of downtown's office towers, museums and hotels. Yet it has remained a hole in downtown's fabric even as projects have gone up around it in recent years. He also welcomed the proposal's focus on the ground floor, with perhaps 13,500 square feet of retail mostly on Post Street.

"Looking at the ground floor orientation, this preliminary application is by far the strongest of the recent initial project submissions in terms of recognizing the street level activation," Knies said. "This appropriately puts the front door of the project on Post Street. We think, long term, that’s going to be an important street in the downtown."

One priority, he said, is that the design reflect an evolution from C2K's other projects in the city. "Hopefully, a different statement can be made with the Greyhound site, particularly because it would be the largest housing proposal in downtown's history," Knies said.

Big, but complex, site
While large, the development site covers only one hard corner of the block, at Post Street and Almaden Avenue. Other property owners own existing commercial buildings that border West San Fernando Street and the corner of Post and San Pedro streets, and the proposal doesn't include those buildings.

Developers always want to largest canvas on which to build, but KT has worked around pieces before. On Silvery Towers a couple of blocks away, KT designed two towers that wrap around the historic Fallon House.

Yet KT is clearly trying to grab more of the Greyhound block. The company made an unsolicited offer to buy the defunct Plaza Hotel from the city's former Redevelopment Agency for $900,000, according to a successor agency staff report. The city of San Jose's Housing Department hopes to buy the hotel for $750,000, rehabilitate it and use the property to house the formerly homeless for several years. The agency's oversight board meets Thursday to discuss the sale, one of a slew of sites around the city that the successor agency is selling by state mandate.

The proposal comes at an interesting time for downtown development. A city incentive for downtown residential high rises is expiring soon, meaning that the Greyhound site would move forward in a new economic climate. (An exception for affordable housing fees still applies to downtown project, however.)

"This is a strong sign of downtown’s emergence, that we’re seeing serious high rise developers moving forward without any assurance of fee reductions," San Jose Mayor Sam Liccardo told me.

While some observers have called for San Jose to reserve key development sites for future office towers, Liccardo said he's fine with the Greyhound site going residential.

"As long as a developer wants to build tall and incorporate an attractive urban design, I’m not going to quibble over whether it’s residential or office," Liccardo said. "Those are conversations in future years that certainly are worth having. We’re at a very mature point in the economic cycle, and it’s important for me to take advantage of the momentum we have by allowing the market to drive the development."

What's next
KT Urban has not yet closed on the land. It's possible the transaction is contingent upon Greyhound finding another location at Diridon.

The deal, if completed, would take another downtown major downtown site off the table. That is likely to increase attention on remaining underused development opportunities, such as the so-called "Valley Title" block at 300 S. First St., the VTA's three-acre "Mitchell Block" (between Market and First streets and Santa Clara and St. John streets), and a huge parking lot owned by Boston Properties across from the convention center. There are also smaller pieces, such as the long-boarded-up former bank building at 200 Park Ave., a key entrance to downtown, where rumors of projects regularly rise and fall.

But all of that momentum is contingent on rents continuing to grow, which is not guaranteed. That means there will be much focus on the performance of the next project entering lease-up: Simeon's Centerra, a 21-story, 347-unit tower that begins move-ins this month.

Source: Silicon Valley Business Journal, Nathan Donato-Weinstein
http://www.bizjournals.com/sanjose/news/2015/12/08/massive-high-rise-project-eyed-for-downtown-san.html

My New Listing on 801 S. Winchester Blvd. #6205

801 S. Winchester Blvd. #6205, San Jose, CA. 95128

What a luxury lifestyle! Beautiful gated 10 years young Villa Cortina community conveniently located close to Santana Row, Valley Fair, freeway, schools and park. The complex offers security gates, restricted vehicle access, recreational facility, elevators, pool, playground, BBQ area. Second floor unit facing the garden, featuring large dual pane windows, fresh paint, granite counter tops in kitchen and bath and nice floor plan. NOT ON MLS YET!

Agents and buyers please call or email for more information 408-569-3808 | mimi@mimhomes.com

• 1 Bed
• 1 Bath
• 692 Sq. Ft.
• Year Built: 2005
• Central Heating & A/C
• Granite Counter Tops
• Laminate Flooring in Kitchen
• Double Pane Windows
• In Unit Washer & Dryer

Asking: $458,000

Real estate agent mistaken for burglar, held at gunpoint

Real estate unfortunately is not a totally safe occupation. We Realtors have to worry about more than not making that sale, but also our personal safety - case in point Beverly Carter. Well, apparently a Realtor was mistaken for a burglar and was held at gunpoint by a neighbor.



A 61-year-old man on Thursday mistook a real estate agent for a burglar and held him at gunpoint until officers arrived at a home the man was selling on Helican Springs Road, Athens-Clarke County police said.

The man said he went to the house upon being notified of a burglar alarm activation there, and when arriving he saw unfamiliar vehicles and people in the driveway, according to police.

“Because of past break-ins, (the man) drew his Glock 23 pistol,” police said. “As it turned out, it was a real estate agent he had never met showing (the) house to a prospective buyer.”

Neither the real estate agent nor the would-be home buyer wished to press charges, police said.

Source: Athens Banner Herald, Joe Johnson
http://onlineathens.com/blotter/2015-12-18/real-estate-agent-mistaken-burglar-held-gunpoint

'Tis the Season: Holiday Home Buying & Selling Tips

This time of year, if a seller has not sold their home, they will typically withdraw it from the market. Activity is often slower than normal between now and the first week of January. Many sellers also want a break from showings, the pressure of keeping their home clean, and feeling like they are always on.

But for the serious seller or buyer, deals still happen between now and early January. If you’re a seller who means business, know that buyers are out there through the holidays. If you’re a buyer on a mission, pound the pavement to find the most motivated sellers, and try to make a holiday miracle happen.

Tips for sellers

• Get your price in line with the market. If your home has been on the market for months without any offers, chances are your price is off. Once December rolls around, the competition (that is, other homes for sale) goes off the market, leaving you with potentially the only game in town. Now is the time to get serious. If you drop your home to the right price now, you have a captive audience, and you might even get more than one buyer. If you’re ready to move your home, this could be your chance to negotiate the best deal.
• Make your motivations known. If you want to take advantage of the holiday selling season, let agents and buyers know. In addition to dropping your price, you might want to offer an incentive to buyers, like a credit for closing costs or some furniture included, if they sign a contract before the end of the year. Or offer buyers’ agents a bonus if they make a deal happen. The point is, a motivated seller should take advantage of the timeframe, and that means making sure everyone knows you’re ready to bargain. Additionally, your agent should communicate to other agents, and the marketing remarks on your listing should demonstrate your motivations.

Best practices for buyers

• Don’t assume the market comes to a dead stop. Understand that some sellers have conversations with their agents about trying to make a deal during the holiday. These sellers are looking for you. Their list price might seem high, but they are probably willing to negotiate. Some sellers don’t want to advertise that they will take less, but once they get a buyer, they are ready to wheel and deal. Imagine yourself in the shoes of a seller who needs to unload their home. They may be willing to close even at the stroke of midnight on Christmas Eve. Deals happen if you put yourself out there. If you’re a serious buyer, leverage these last few weeks of the year to find a home.
• Do a once-over of all listings in and around your price point. Been ignoring a home or two because they seemed overpriced, or not as thoroughly renovated as you would like? Did you make an offer earlier in the year that wasn’t as great as it could have been? Circle back to every listing in and around your price point and target area that is currently on the market. Scour these listings, because they indicate motivated sellers. Go have a second look, and keep an open mind. An overlooked home can easily become your dream home at the right price.

Though conventional wisdom may state otherwise, market-ready buyers and sellers have consummated successful deals through the holidays. But don’t be a conventional buyer or seller. We live in an era of access anywhere and anytime. Information flows 24/7 and buyers, especially, use smartphones and tablets to stay connected to real estate listings at all times. Motivated buyers and sellers should open themselves to the possibilities this time of year.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/holiday-buying-selling-tips-189621/

Saturday Stats

MLSListings Silicon Valley and Coastal Regions Housing Market Overview

(Monterey, San Benito, San Mateo, Santa Clara, and Santa Cruz Counties)

Holiday Housing Market Proving Naughty and Nice

Year-Over-Year Gains with Seasonal Slowdowns

Single-family homes inventory made substantial gains compared to 2014. By county, San Mateo single-family home inventory grew 72%, Santa Clara 48%, Monterey 18%, San Benito 11%, and Santa Cruz 8%. Month-to-month inventory tells a different story, going through a cyclical drop compared to October 2015 in all counties except in San Benito, which grew 1%. Inventory dropped 24% in Santa Clara County, 20% in Santa Cruz County, 19% in San Mateo County, and 8% in Monterey County.

Single-family home sales in November 2015 remain above last year’s levels in four of the five MLSListings counties, with San Mateo showing the only decline at 3%. Monterey County sales rose 17%, Santa Cruz 8%, San Benito 7%, and Santa Clara up 3%. Compared to October 2015, sales dropped by double digits in all counties. San Benito had the largest drop at 53%, Santa Cruz 23%, Santa Clara 22%, Monterey 21%, and San Mateo sales fell 12%.

Finally, compared to 2014, the median sales price remains relatively positive, with the counties of San Benito up 19%, Santa Clara up 13%, San Mateo and Monterey up 9%, and Santa Cruz up 3%. Compared to last month, the median price dropped 5% in Santa Cruz County, up 5% in San Benito County, 4% in Monterey County, and up just 1% in both San Mateo and Santa Clara Counties.



Source: MLSListings, Inc
http://www.mlslistings.com/media-center/resources/-market-data-reports/udt_931_param_detail/228

Selling Your House? 5 Reasons You Shouldn’t For Sale By Owner

In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of those reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always, find some problems with the house
The appraiser if there is a question of value
2. Exposure to Prospective Purchasers

Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

44% on the internet
33% from a Real Estate Agent
9% from a yard sign
1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Source: Keeping Current Matters
http://goo.gl/EUgCeZ

Builders Tell Buyers: Plan For Higher Home Prices In 2016

2016 NEW HOME PRICES TO RISE, SAY BUILDERS

Home builders remain bullish on U.S. housing.

With mortgage rates low and U.S. rents rising, today's homebuilders expect 2016 to be another strong year for housing. Builder confidence is at levels not seen since last decade.

As measured by the National Association of Homebuilders' Housing Market Index (HMI), homebuilder sentiment reads 61 out of 100 -- the third-highest reading of the year and a steady three points higher than the index's 12-month average.

Builders are excited for the 2016 housing market -- and for good reason.

The combination of low mortgage rates, rising rents, and an abundance of loans for buyers with less than 20% down have changed the math of "Should I rent or should I buy?".

More than 6 million homes are expected to sell in 2016, which would be the most in 10 years. And demand for homes is moving prices up.

The best "deals" in new construction housing may be the ones you find today.

HOMEBUILDER CONFIDENCE KEEPS CLIMBING

Once monthly, the National Association of Homebuilders (NAHB) surveys its members on current housing market conditions; and their outlook for the housing market's future.

The results are compiled into the Housing Market Index.

Informally, the report is called the "homebuilder sentiment survey" and it reflects homebuilder attitudes about the nation's single-family, new construction housing market.

The index is relevant because home builders tend to witness the psychological changes of "Main Street" long before they're revealed to economists.

There are a multitude of instances in which the NAHB Housing Market Index has hinted at what's next for U.S. housing before the actual home data revealed itself.

One prominent example occurred last decade and foreshadowed the 2007-2011 housing market downturn.

Recall that mid-decade, U.S. housing was expanding quickly and home values were making new, all-time highs. Mortgage money was loose, as was underwriting. Homeownership rates were near all-time highs.

Home builder confidence, though, was slipping. Through the last two quarters of 2005, sentiment dropped 21%. And, remember -- this was before the market turned. Values were still rising!

By 2009, the HMI had dropped from an all-time high of 77 to an all-time low of 6.

Today, sentiment is a 61.

In the NAHB Housing Market Index, 50 is the inflection point in the index between "good" conditions and "poor" ones; and December's reading is the seventh straight month in which the HMI has read north of 60.

This hasn't happened in 10 years.

Buoyed by low mortgage rates and huge demand from buyers -- first-timers and repeat buyers alike -- today's home builders believe the housing market is "good".

Buyers should expect fewer price concessions in 2016, and fewer free upgrades. Homes are selling well without such incentives.

WILL U.S. HOME BUYERS GET "PRICED OUT" IN 2016?

The NAHB Housing Market Index is a composite survey. It's results are based on three distinct questions posed to homebuilder trade group members.

Each question polls a separate facet of a homebuilder's business.

The monthly readings, as reported by the homebuilder trade group :

Current home sales activity : Reading of 66 (+4 from one year ago)
Home sales activity for the next six months : Reading of 67 (+3 from one year ago)
Buyer foot traffic : Reading of 46 (+0 from one year ago)
For students of housing, it's the index's foot traffic reading which may be most relevant.

Current home sales activity and projected home sales activity are both near 10-year bests, but that's because demand for new homes is strong.

Buyer foot traffic is above its 12-month average and, although many buyers don't know specifically what a mortgage is, they do know that rents are up and squeezing their budget.

Owning a home is cheaper than renting in many U.S. cities now.

Source: The Mortgage Reports, Dan Green
http://themortgagereports.com/18675/nahb-housing-market-index-mortgage-rates-loans?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheMortgageReports+%28The+Mortgage+Reports%29

Important Clauses In Your Real Estate Contract

You have just found your dream house, and would like to buy it. What to do now?

When dealing with real estate matters, the law is clear: everything has to be in writing. Thus, you will need a sales contract, which will spell out all of the terms, conditions and special requirements you may (or will) need in order to conclude the transaction and go to closing (settlement) on the house.

If there is no real estate agent involved, your attorney should be able to assist you in preparing the contract offer. If there is a real estate agent, you can get a form sales contract from the agent. In fact, the agent should be able to assist you in preparing the document for presentation to the seller, although your attorney should review it before you sign.

Typically, the buyer makes a written offer to the seller. The seller has three alternatives:

1. The contract can be accepted;

2. The contract can be rejected in its entirety, or

3. The contract offer will be countered, with different terms.

It is rare that the seller will opt for alternatives one or two; in most cases, the potential buyer will receive a counter-offer. Then, the buyer has the same three alternatives.

There are certain things which must be included in any sales contract.

• The property must be clearly identified, preferably by street address.

• The contract must be contingent upon your obtaining financing. You should allow yourself some time -- usually 30-45 days -- in which to make application from a mortgage lender and get a written commitment that you have been approved for the loan. Under the new Consumer Financial Protection Bureau (CFPB), it will take more time, so you may want to give yourself up to 60 days in which to finalize the deal.

• Unless you are an experienced contractor, it is advisable that you make the contract contingent on your obtaining a satisfactory home inspection. You should give yourself 5-7 days after the contract is signed to have the property inspected. If you are not satisfied for any reason after you receive a written report from the inspector, you should have the right to terminate the contract, and get back your earnest money deposit.

• How much earnest money should you put up when you sign the sales contract? There is no magic formula and no law dictating a certain percentage of the purchase price. When you sign a contract, in order to make it a valid, legal document, the buyer should put up some money as a good faith earnest money deposit. These funds will be held by the real estate broker or the settlement attorney until settlement takes or until either the buyer is entitled to a return of the deposit (because the contingencies cannot be met) or the buyer is in breach of the contract, in which case the moneys would go to the seller.

Real estate agents and brokers usually ask that the buyer put up 10 percent of the purchase price as this earnest money deposit. However, buyers can put up more or less, so long as the seller agrees with the amount. Indeed, in many real estate contracts, the earnest money deposit consists only of a promissory note signed by the buyer, to be redeemed at the settlement itself.

Buyers should understand that although everything in real estate is negotiable, the earnest money should be large enough to convince the seller you are seriously interested in going forward with the purchase. I usually recommend this deposit be approximately five percent of the purchase price.

• Finally, the contract should be contingent upon the buyer obtaining -- no later than the date of settlement -- a "termite" letter. This is a report from a licensed pest inspection company indicating that the house is free and clear of termites and other wood-boring infestation. Some contracts require the seller to obtain and pay for this report; other contracts put the burden on the purchaser. Either way, this is a critical report which all buyers should receive -- and carefully review -- before settlement is completed. Obviously, in a high-rise condo, such a termite letter would not be required.

Many of these contingencies are time-sensitive. You -- as buyer -- have so many days in which to get financing and so many days in which to complete the home inspection. Mark your calendar with these due dates, and make sure you act on these contingencies before the time has expired. Otherwise, it will be too late and you will be legally bound to comply with the terms of the contract, and proceed to settlement.

Source: RealtyTimes, Benny L. Kass
http://realtytimes.com/consumeradvice/buyersadvice1/item/40804-20151211-important-clauses-in-your-real-estate-contract

Singles Are Falling For Their Dream Home

Great time at NHORA's December To Remember Extravaganza

I had a great time at the Santa Clara County  National Hispanic Organization of Real Estate Associates (NHORA) December To Remember Extravaganza at the Silver Creek County Club.

How to Home In on the Right Neighborhood for You

Location, location, location. As the real estate agents say, it’s the No. 1 attribute in real estate. But it’s not just true when it comes to assessing a home’s value—it’s also a key factor in determining your future happiness, according to Katherine Loflin, a consultant in the new field of “placemaking.”

Loflin, who has a new book out this month—“Place Match: The City Doctor’s Guide to Finding Where You Belong”—talked to us about how to find your perfect community, and why that’s so important.

Q: Why is living in the right place so important?

You live in a home, but your life happens in a place. Both are important to us living our best lives. From 2008 to 2010, I was the lead consultant in research that examined what makes people love where they live. The Knight Soul of the Community project in partnership with Gallup studied 26 U.S. diverse communities, nearly 43,000 people. The findings were remarkable. In every place studied, the same things came up as critical for creating quality-of-life places: People want a place they find beautiful, with opportunities that they enjoy, in an environment that feels welcoming. And places where residents were happy with those qualities experienced higher local economic growth.

Q: You compare finding the right place to finding the right romantic partner. Why?

Through my speeches and a couple of TEDx talks, I’d been teaching the science behind what makes people love where they live. Yet at the same time, personally I was losing my love for my own place and in the beginning stages of a difficult marital divorce. I had never felt more like a hypocrite!

During one speech I was making in 2012, I went rogue and made an unplanned comparison that mirrored my own life at the time about how certain places may not be a perfect match for everybody—a lot like marriage. To say it was a “aha moment” is an understatement. Simultaneously, I noticed a dawning awareness in the crowd. When I talk about dating your place, committing to it, or leaving it in a relationship context, the concepts just make sense to people and give them a framework for making decisions about where to live.

Q: What advice do you have for people who want to find the right place?

First, create a wish list for the place you want. What kind of place are you seeking, given where you are in your life—kid-friendly, retiree destination, walkable, cultural offerings, quintessential experiences that you crave? Just as we know the kind of person we are seeking as a partner, we should know the kind of place where we would thrive.

Next, spend some time there—date your place. And just like you should probably see your potential life partner with the flu before you marry, you have to learn about the challenges of the place. What are the issues the place is facing? Do you love it enough to want to help, or at least accept it, warts and all?

Q: What are the most common mistakes when choosing where to live?

Don’t move there based solely on vacation experience(s) there. Have you ever heard someone say, “It’s a great place to visit, but I wouldn’t want to live there”? That’s a real thing. Second, don’t make the mistake of thinking this is about “good” and “bad” places. Just like when you’re dating, it’s about your compatibility. While all people like places that are welcoming, different places do this different ways. In some places, welcoming means people hug you when they meet you. Some people love that, others not so much.

Q: How has this understanding of place affected the buying and selling of real estate?

One real estate journalist told me, “Today, houses are everywhere. We have to now also sell places. That’s what people are asking about more than the number of bedrooms.” Even when local economies failed at the end of the last decade, people who loved where they lived talked about taking solace in their place. As people felt disillusioned over the loss of a job that they had dedicated much of their life to, their values shifted. “I will no longer live to work, but work to live” was a common refrain I heard during that time.

Q: What are the most surprising stories you’ve heard about someone’s search for the right place?

The stories that always drop jaws are ones where I talk about people just “showing up” in a city or town they want to live in and figuring out the job and place to live once they get there. It is definitely a different strategy than what guided our parents, when absolutely everything 100% was dictated by the job.

Q: How can people who love their place change it?

There are always stories of a place going from unknown or declining to a thriving destination—like the upstart chef who couldn’t afford to open his own restaurant except in a small town. Then he took advantage of its rural location to help local farmers by creating a farm-to-table component of the restaurant, which further helped it succeed. And in a few short years, the place is transformed.

Source: Realtor.com, Judy Dutton
http://www.realtor.com/advice/buy/right-neighborhood-for-you/?iid=rdc_news_hp_carousel_theLatest

Half of all renters can't afford the rent

This article is a little worrisome for me. I live and conduct my real estate business here in the Silicon Valley, which by the way is among the highest rents in the country. The fact that half of renters can afford the rent tells me there is a large segment of the population that no only are struggling to afford the rent, but also they are unable save enough money for that all important down payment on their first home.

Nearly half of renters in the U.S. are struggling to afford their monthly payments.

Experts generally recommend keeping your housing costs around 30% of your monthly income. But the number of "cost-burdened" tenants -- those who spend more than 30% of their income on rent -- rose to 21.3 million people last year, according to Harvard's Joint Center for Housing Studies.

Of those, more than 26% are "severely cost burdened" and spend more than half of their income to cover rent.

Here's the problem: rents are increasing much faster than wages. Inflation-adjusted rents increased 7% from 2001-2014 while household incomes dropped 9%, the report showed. At the same time, rising demand for rental units has pushed the national vacancy rate to a 30-year low, driving prices even higher.

"These trends have led to record numbers of renters paying excessive amounts of income for housing, with little prospect for meaningful improvement," the report said. The median rent for a new apartment climbed to $1,372 last year, a 26% increase from 2012.

While low-income households are the most likely to have a hard time making ends meet, middle-income households are increasingly struggling to make rent. The number of burdened households with an income of $45,000-$74,999 jumped to 21% in 2014 from 12% in 2001.

Builders have ramped up construction recently, but supply hasn't kept up with demand and new units tend to focus on the higher end of the market. Land costs and regulations make building expensive, and developers need to make a return on their investment.

Higher rents put a strain on household budgets. Families that paid more than half of their income on rent spent 38% less on food last year and 55% less on health care, according to the report.

The 2008 housing crash has led to record rental demand with 37% of households renting in 2014 -- the highest level in more than 45 years.

Source: CNN Money, Kathryn Vasel
http://money.cnn.com/2015/12/09/real_estate/renters-cant-afford-rent/index.html?section=money_realestate

2016 Women's Council of Realtors Installation Event at Claudine's Place

Congratulations to the 2016 WCR President Claudine Tuazon Rydquist and the board members. Wishing you a very successful year.

As the outgoing President, I sincerely would like to Thank the 2014 and 2015 WCR Board Members.

I would also like to Thank SILVAR, SCCAOR, AREAA, NHORA, FAREPA, CREAA, WCR members and Business Partners. I appreciate everyone's support and trust over the past two years.

The WCR Santa Network has once again been recognized as one of the best organization in Silicon Valley.

In addition, a special Thanks to Cecily Tippery, WCR State President and Michelle Pagsolingan Perez; DVP for your support and attendance of our 2016 installation.

Claudine's Wine Experience