The Home Buyers' Guide to Getting a Mortgage

The Home Buyers' Guide to Getting a Mortgage



Buying a home can feel overwhelming, and a lot of that uneasiness can come from not understanding how to get a mortgage. This guide — which includes 20 questions to ask lenders — should help clarify the mortgage process and get you on the road to homeownership.

Determine your affordability

Before you start working with a real estate agent, it’s important to understand how much home you can afford. This will help you and your agent target your search, and you’ll avoid the heartache of falling in love with a property that’s out of your reach.

You can determine affordability in seconds using two different mortgage calculators. First use an affordability calculator to determine a purchase price appropriate for your income and down payment; then use a payment calculator to determine your exact monthly obligations.

Get started on your mortgage process

Next, you’ll actually connect with a lender to apply for a loan, and the lender will review all of your qualifying documentation. A loan officer will ask you to provide the items below — verbally or in an online form first, then with full documentation:

• Personal information. Date of birth, marital status, number of children and ages.
• Residence history. Rent payment or all mortgage, insurance and tax figures — for at least the past two years.
• Employment and income. Documentation showing wages and employment history for at least two years. If you receive commissions or bonuses, you’ll need two years of figures. Lenders average variable and self-employed income over two years. Full tax returns for two years are usually required.
• Asset balances. All checking, savings, investment and retirement accounts. You must provide all information for accounts, even if you’re only using one account for the down payment (you lender will need to see a paper trail for large deposits and withdrawals). If you’re using gift funds for your down payment, specific rules apply.
• Debt payments and balances. Credit cards, mortgages, student loans, car loans, alimony and child support.
• Social Security number. For a credit report to confirm your debts and credit scores.

Select down payment and loan type

Once your lender has your full profile, he or she can recommend loan structures based on your situation.

Perhaps your income is strong, but you’re early in your career and haven’t saved up that much money. In this case, your lender might recommend a 10-percent down payment because the slightly higher payments fit your budget and enable you to conserve cash.

Or you might start the process thinking you want to buy a 1-bedroom condo using a 5-year adjustable-rate mortgage because you think you’re going to sell the home and upgrade within five years. But your lender may look at your income and consider that you want to start a family within three years, then determine that you can afford the monthly budget and cash to close on a 3-bedroom single family home using a 30-year fixed loan.

It’s important to match your loan terms and home buying choices with your objectives. Because lenders require your full financial profile, they are in a good position to help you explore and fine-tune your objectives to make sure you select the loan type that fits you best.

Find an agent and start home shopping

After you’ve begun the mortgage process, you’re ready to find a local real estate agent and begin your home search.

Introduce your lender to your agent, and ask your lender to brief your agent on your mortgage process. This will verify your target home price and down payment for your agent and show that you’re ready to close as soon as you find a home.

Write offers, lock your rate and finalize your loan

Once you find a home you love, you’ll write an offer. Your agent will present your offer to the seller, and if the seller accepts your offer, your loan process will move to the final approval phase.

Your lender will inform you that it’s time to lock your rate. A rate lock runs with a borrower and a property, so you can’t lock your rate until a seller has accepted your offer.

Then your lender will request any updated documentation needed from you, order an appraisal on the property and review the property title report.

Once all of these items check out, your lender will draw final loan documents with your desired rate and terms for you to sign. Your lender will fund the loan, and the home will be yours!

Source: Zillow Blog, 
http://www.zillow.com/blog/home-buyers-mortgage-guide-179902/

Century 21 M&M Cares Ready, Steady, Read event!

Come join us Saturday, August 1st at Century 21 Fremont area for our Ready, Steady, Read event to promote reading with children. I hope to see you all there!

Seattle officials join push for Sharia-compliant mortgages, loans

With a great influx of Muslims in the country under Obama, there is growing pressure to provide Sharia Law complaint loans. Seattle Washington may be getting on board with soon and the trend might continue throughout the country. Not sure how I feel about this.



WASHINGTON –  A proposal in Seattle meant to increase homeownership among Muslims by offering financing compliant with strict Islamic law -- known as Sharia -- is gaining ground in the latest test for local leaders trying to accommodate diverse religious beliefs.

"We will work to develop new tools for Muslims who are prevented from using conventional mortgage products due to their religious beliefs," Seattle Mayor Ed Murray said during a press conference July 13.

"Sharia," which comes from the Koran and means "the right path," prohibits the payment of interest -- the primary way lenders earn. Many of Seattle's 30,000 practicing Muslims, therefore, are hard-pressed to find Sharia-compliant financing options when buying homes, making large purchases or starting a business.

A Seattle housing committee suggested community and business leaders find a way to help them, a push the mayor endorsed. Seattle is just the latest to explore financing options for devout Muslims -- following in the footsteps of Chicago. But the move to offer Sharia-compliant financial products has drawn fire. Critics have warned that it opens the nation's financial system to Islamic radicals and terror groups, providing a mechanism for money laundering.

In 2008, conservative lawmakers in Congress went after American International Group for offering Sharia-compliant insurance programs.

Rep. Frank Wolf, R-Va., and then-Rep. Sue Myrick, R-N.C., sent AIG then-Chairman Edward Liddy a strongly worded letter that argued Sharia financing could be manipulated and used by terrorist organizations like Al Qaeda and Hamas to launder money.

"You may defend your decision to offer Sharia products and will probably state that they have no real ties to Sharia law, and therefore pose no threat. You are wrong," the lawmakers wrote in the Dec. 18, 2008 letter. "Like Britain, the way to America's legal code is through its wallet, and if Sharia law gains a strong footing in the United States, it will be through Sharia finance and Sharia products."

The Thomas More Law Center, a nonprofit law firm that promotes conservative Christian values, sued then-Treasury Secretary Henry Paulson and the Federal Reserve in 2008 over AIG's actions. The suit argued that it was unconstitutional for AIG to offer Sharia-compliant products because the federal government had bailed out AIG with $170 billion in taxpayer money, and that by promoting Sharia products, it forced Americans to comply with Sharia law. The suit failed.

Some also claim that adjusting existing regulations to benefit one group -- in this case, Muslims -- essentially is reverse discrimination.

Others, however, like Flip Pidot, CEO at American Civics Exchange, believe that loosening financial structures are "a step in the right direction toward a less fettered financial market."

He cautions that if this is a "special carve-out for those who claim Sharia-compliance or if it's in any way subsidized or otherwise made easier for a specific subset ... [the program] becomes more of a problem." But, Pidot told FoxNews.com's "Strategy Room," it's a good idea if this just removes a "barrier" and allows lenders to reach "an unmet section of the would-be homeowners."

A basic building block of Sharia-compliant financing is "murabaha," where "two parties agree to trade at a price equal to the cost plus mark-up or profit," Rice University professor Mahmoud Amin El-Garnal said in a 2014 Council on Foreign Relations report.

Here's how a Sharia-compliant sale might work between a bank and a Muslim homebuyer: The bank agrees to buy and hold clear title to the house, then enters into a contract to sell the house at an agreed-upon mark-up price that includes profit. The buyer agrees to pay the sale price in installments, or one lump sum. The markup rate is calculated  to compete with prevailing interest rates, so the buyer's monthly payment is roughly equal to what a traditional lender might charge for a loan that combines principle and interest.

While Seattle leaders want more lenders taking part in the Sharia program, there are some already offering such unconventional financing. Seattle-based Halal Inc. advertises on its website that "instead of starting with a flawed system and trying to 'make a fit,' we took the perfect system ordained by Allah and created a legal framework for it." Multiple calls to Halal Inc. by FoxNews.com for comment were not returned.

The sector has grown to more than $1.6 trillion in assets worldwide over the past three decades. Analysts see the potential for even greater growth as the Muslim population grows in the U.S. and Europe, attracting the attention of other financial heavyweights like HSBC and Goldman Sachs.

"Global Islamic financial assets have soared from less than $600 billion in 2007 to more than $1.3 trillion in 2012, an expansion rooted in the growing pool of financial assets in Muslim-majority countries driven by consumer demand for products that comply with religious codes," according to the 2014 report by the Council on Foreign Relations.

Source: Fox News, Barnini Chakraborty
http://www.foxnews.com/politics/2015/07/23/local-and-commuity-leaders-across-us-weigh-benefits-sharia-financing-for/

The 8 Biggest Concerns for REALTORS®

The affordability issue is a big one for me. I can think of a number of sellers who what to sell their existing home and purchase a bigger home or downsize to a smaller home but don't because they don't believe they can afford the next home. So they decide not to put their property on the market, which decreases the inventory, which makes prices go even higher. It's a serious problem here in the Silicon Valley and elsewhere.


Photo Source: businessfirstfamily.com


The 8 Biggest Concerns for REALTORS®

REALTORS® are "strongly confident" about the housing market's outlook over the next six months, although confidence has eased since the beginning of this spring, according to the latest REALTORS® Confidence Index, a monthly survey of nearly 3,000 REALTORS® about local market conditions.

In general, REALTORS® continued to report "strong" local market conditions last month for single-family and townhome properties. The strong confidence is being buoyed by strong job creation, the reduction in the Federal Housing Administration's annual mortgage insurance premium rates, and the acceptance of Fannie Mae and Freddie Mac's 3 percent down payment loans.

Still, REALTORS® are reporting several issues with the market. The survey revealed the following top concerns:

• The upcoming TILA-RESPA Integrated Disclosure regulations, which take effect Oct. 3, and concerns that they could delay closings. 
• Tight inventory with a limited number of homes for-sale.
• Affordability issues: Fewer affordable homes so sellers are also hesitant to move.
• Financing issues, such as difficulty in qualifying for a mortgage due to higher FICO credit and down payment standards, protracted mortgage approval process, and condo-financing issues.
• Appraisal issues: conservative estimates, "out-of-town appraisers," and slow turn-around.
• Rising interest rates.

• Declining demand from international buyers due to a strong U.S. dollar.

• Uncertainty about flood insurance rates and reform.

Source: Realtor Magazine Online
http://realtormag.realtor.org/daily-news/2015/07/27/8-biggest-concerns-for-realtors?om_rid=AAFmZk&om_mid=_BVtnZRB9D6kdQp&om_ntype=RMODaily

Incrreased Recording Fees Will Fund California Affordable Housing

The California legislator has come up with scheme to raise money for affordable housing by adding a fee for recording documents for refinance and other situations where a document needs to be recorded (such as a trust deed). It won't apply to purchases, so if you are buying a home, you don't have to worry about it, but if you are refinancing, they you will need to pay $75 per document up to $225 max per transaction. The California Association of Realtors endorses the plan and there seems to be some specific measures in place that specify exactly what percentage of the money is used for what.

Not sure how I feel about this yet, but you decide.




INCREASED RECORDING FEES WILL FUND CALIFORNIA AFFORDABLE HOUSING

It appears likely that the California legislature is about to enact a major bill that will provide a permanent source of funding to create housing for low-income individuals and households. The legislation, Assembly Bill 1335, introduced by Assembly Speaker Toni Atkins (D -- San Diego), is expected to raise $300 - $500 million annually. Where will all this money come from? Current and future California homeowners.

AB 1335 would impose new fees on the recording of various sorts of real estate documents. It would not raise fees on the recordings of documents pursuant to a sale transaction. So, for example, in most sales a new trust deed is created in connection with the purchase financing. The recording of that trust deed would not be subject to the fee. However, when a new trust deed is created in the course of refinancing or adding an equity line of credit, the recording of that trust deed would be subject to the fee.

The fee to be imposed is $75 per document. The documents affected include, but are not limited to, the following: grant deed, quitclaim deed, deed of trust, declaration of homestead, notice of default, mechanics lien, CC&Rs, easement, abstract of judgment, and reconveyance.

In any single transaction there is a limit of $225 that can be imposed by these fees. There is no limit to the amount of fees that can be charged over any period of time to the same entity. If, for example, you refinanced twice, you might pay $450 in fees.

The total fees collected, minus any administrative cost to the county recorder, is to be forwarded each quarter to the Department of Housing and Community Development (HCD) where it is to be deposited into the "Building Homes and Jobs Trust Fund". The Trust Fund will be administered by a Governing Board.

The legislation requires the following: "(A) Twenty percent of moneys in the fund shall be expended for affordable owner-occupied workforce housing. (B) Ten percent of the money in the fund shall be expended to address affordable homeownership and rental housing opportunities for agricultural workers and their families."

Among the purposes for which the remainder of the money could be used for are matching portions of funds placed into local or regional housing trust funds, emergency shelters and transitional housing, accessibility modifications, efforts to acquire and rehabilitate foreclosed, vacant, or blighted homes, and homeownership opportunities, including but not limited to down payment assistance.

AB 1335 has garnered an unusual amount of support, much of it from specific cities and from a variety of building industry associations. 176 individuals and organizations registered support for the bill. Sixteen registered opposition, twelve of whom were county clerks, assessors, and/or recorders.

The opposition centered on two concerns: (1) the fees might discourage some people from recording documents that they really should (for their protection) record; and (2) nothing in the bill required that any of the money collected would come back to the communities where it was generated.

It came as a surprise to many that the California Association of REALTORS®(CAR) weighed in supporting the bill, as it had opposed a similar bill (SB 391) last year. But this bill differed in important respects (e.g. the $225 cap, and the 20% set aside for homeownership purposes). It probably didn't hurt, either, that the composition of the Trust Fund Governing Board is practically guaranteed to include two representatives from CAR.

Source: RealtyTimes, Bob Hunt
http://realtytimes.com/consumeradvice/buyersadvice1/item/36995-20150728-increased-recording-fees-will-fund-california-affordable-housing

Things you can negotiate on your lease agreement

Great article from Zillow.


Picture: from Zillow Blog

Lease Agreements: 5 Things You Didn’t Know You Could Negotiate

When you factor in the formulaic legal documents, generic 20-minute interview, and perfunctory tour of the apartment and its amenities, it’s not unusual for renters to feel like they must either take it or leave it. It may not seem like there is room to negotiate the residential lease agreement.

That might be true — sometimes. But renters may actually be in a better bargaining position than they realize. Often, potential renters are able to negotiate some aspects of the lease agreement, especially when the landlord is eager to rent a particular unit.

Here are five aspects of your lease agreement you may have more control over than you think.

1. Security deposits

If a security deposit requirement seems unreasonable, counter with a more sensible figure. Taking into account deposit limits set by statute in some jurisdictions, renters may be able to negotiate a lower figure, particularly if they can offer references and a record of responsible rental maintenance.

If a landlord really needs to get a unit under contract, he or she might be willing to budge on this issue.

2. Pet policies

Although more of a longshot, pet policies and fees are negotiable in some situations, particularly if an animal is small, quiet, and has never shown signs of aggression.

Likewise, if an apartment allows pets of a certain size or species only, savvy renters may be able to get their Newfoundland through the door by offering a few extra dollars in rent each month.

3. Access to amenities

If the building has certain amenities — such as a gym, pool or on-site wellness center — that require additional monthly fees, renters may be able to negotiate for these to be included in the cost of monthly rent.

As with security deposits, renters gain leverage by showing a stellar record of on-time payments and by providing a list of previous landlords willing to vouch for their predictability and consistency.

Also, potential renewal tenants may benefit from negotiating with the landlord for the inclusion of amenities for the new rental term.

4. Parking passes and guest policies

Landlords understandably discourage renters from hosting large numbers of guests. However, tenants should not feel unnecessarily burdened by a cumbersome guest policy or insufficient parking for visitors.

For instance, if a landlord is willing to offer just one parking pass, it may be worth negotiating for two or three passes so visitors can park safely and close by.

Likewise, if a lease agreement imposes limits on overnight guests, be sure to assert that this unduly restricts the number of close friends and family members who can stay over. Then, mention that it might be better to continue your search. You may be surprised how quickly this lease term evaporates from the agreement.

5. Monthly rent

This is one of the biggest — and most difficult — lease agreement terms to successfully negotiate. However, it’s in the landlord’s best interest to keep units filled and profitable, and the introductory rent is likely much higher than the landlord or owner actually needs to realize said profit. If you are a tenant with no history of eviction, late rent, damage, civil judgments, or general rental issues, you stand a strong chance of getting a rental rate reduction.

When negotiating this term, be reasonable and understanding of the landlord’s position. Also keep in mind that a low-ball counteroffer will quickly turn the discussion sour.

It may also help to research comparable rental rates in the area to show the landlord just how diligent you really are. It could definitely pay off in the end.

What not to negotiate

As your mother used to say, some things are simply not up for discussion. A landlord can’t offer leniency on any policy rooted in local, state or federal laws, so don’t ask.

Landlords also can’t allow tenants to exceed maximum occupancy requirements, as these are often set by local fire codes and are designed for tenant safety. Other non-negotiable terms may include prohibitions against smoking indoors, installing fixtures, painting, engaging in substantial construction, remodeling, subletting, or arranging a lease assignment.

On the other hand, landlords are not permitted to negotiate anything that could be considered discriminatory in nature. For instance, a landlord cannot charge extra for a service animal, the presence of small children, or reasonable accommodations for a disabled tenant. In all these scenarios, the terms are protected by state and federal fair housing laws, and are not up for discussion.

Source: Zillow Blog, Stephanie Reid Avvo attorney and NakedLaw contributor
http://www.zillow.com/blog/lease-agreement-negotiate-180207/

Boomers Competing With Millennials for U.S. Urban Rental Housing

The rental market here in the Silicon Valley is already through the roof and dog eat dog, but in the coming years, according to a new report, the rental market here as well as other major markets is only going to get worse because it gonna be the young folks competing with the the old folks for apartments.




Mike Abelson calls it his “man cave.”

After his wife passed away, the 65-year-old sold his house and began renting a 1,400-square foot apartment eight miles away in Bethesda, Maryland. The trial attorney now uses his downtime to enjoy warm summer evenings on his terrace.

“I pay a pretty steep rent, but it’s worth it,” Abelson said. “I don’t pay property taxes, I don’t pay for maintenance, plumbing or electrical. I don’t have to pay for the grass cutting. It’s just easier than being a homeowner.”

The number of renters who are 65 or older will reach 12.2 million by 2030, more than double the level in 2010, according to research by the Urban Institute in Washington. While the millennial generation born after 1980 has driven demand for apartments in recent years, baby boomers -- those born from 1946 to 1964 -- will be the next wave, pushing up rents and spurring construction of more multifamily housing.

Real estate developers such as Bozzuto Group, Abelson’s management company, and Alliance Residential Company are building projects where multiple generations can coexist. Should the supply of rental properties fail to keep up, however, younger people will be competing for housing with the burgeoning population of older Americans.

“It’s a combination of their sheer size and that they’re entering the age range where they increasingly downsize,” Jordan Rappaport, a senior economist at the Federal Reserve Bank of Kansas City, who has also studied the subject, said in a telephone interview. As a result, “it will put upward pressure on rents for all types” of multifamily homes, he said.

Growth Ahead

Rappaport’s research found that adults in their 50s and 60s accounted for almost all of the net increase in multifamily occupancy from 2000 to 2013. Once members of the baby boom generation start entering their 70s next year and downsize, “multifamily home construction is likely to continue to grow at a healthy rate through the end of the decade,” he wrote in a report published last month.

Already, rental vacancy rates are hovering near 21-year lows. That’s pushing the national median rental price for all types of homes to $1,367 a month as of May, up 14 percent from four years ago, according to data from Seattle-based Zillow, a real-estate website.

Work began in June on the most buildings with five or more units since 1987, Commerce Department figures show. They represented about 41 percent of total housing starts, up from 16 percent when the economic expansion began in June 2009.

Business Expansion

Lennar Corp., a Miami-based builder primarily focused on single-family home construction, formed a $1.1 billion joint venture that will develop multifamily communities in 25 U.S. metropolitan markets.

Alliance Residential is designing buildings with smaller, more affordable units on ground floors to attract young adults, while creating more spacious apartments on upper levels, said Ian Swiergol, managing director of the developer’s division covering New Mexico, Arizona and Utah. The bigger units feature wine refrigerators and touch-button window screens that appeal to baby boomers with more wealth.

In one extreme example, a 28-year-old man ended up living in the same community as his 90 year-old grandmother, said Swiergol, who is based in Phoenix.

At Bozzuto, which manages some 51,000 units in cities including Washington, Chicago and Atlanta, about 10 percent of renters in 2014 were at least 60 years old, up from 8 percent in 2012. The Greenbelt, Maryland-based company expects the share to continue to grow, said President Toby Bozzuto.

Seizing Opportunities

“Something’s happening,” Bozzuto said in an interview, adding that the company is looking to add rental properties catering to residents 55 and older. “A good business person tries to put themselves in front of opportunity.”

Rents have already been picking up, rising 3.5 percent in the 12 months through June, matching the biggest increase since 2008, Labor Department data show. By comparison, consumer prices excluding food and fuel advanced 1.8 percent in the same period.
Rents are putting a floor under broader inflation, which Federal Reserve policy makers have said they need to be reasonably sure will approach their goal in the medium term before deciding to raise their benchmark interest rate for the first time since 2006.

One downside is that seniors on fixed incomes who have to, rather than choose to, rent will be hurt if supply doesn’t keep pace with the projected increase in demand, said Laurie Goodman, director of the Housing Finance Policy Center at the Urban Institute. Generation X adults -- born from 1965 to 1980 -- may also introduce another wrinkle, as those who lost their homes in the housing crisis remain in rentals.

Growing Demand

“It’s not unreasonable to think that some seniors are going to get hurt disproportionately,” she said. “There’s going to be just a huge surge in the demand for rental housing, and there’s not enough.”

Amy Schectman sees this first-hand as the chief executive officer of Jewish Community Housing for the Elderly. The non-profit provides subsidized rental units for older adults in Brighton, Massachusetts, and the waitlist starts at two years for studio apartments, she said. For a two-bedroom, “you might be looking at seven to eight years.”

“We’re already seeing huge demand,” Schectman said. “And it’s only going to grow.”

Source: Bloomberg Business, Victoria Stilwell
http://www.bloomberg.com/news/articles/2015-07-21/boomers-competing-with-millennials-for-u-s-urban-rental-housing

Saturday Stats - Silicon Valley's Real Estate Busy Season Finishing Strong

Happy Saturday everyone! Great information from MLSListing Inc.

MLSListings Real Estate and Housing Update

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

Silicon Valley's Real Estate Busy Season Finishing Strong

Inventory Strengthens in June

Inventory levels rose in June when compared both year-over-year and month-over-month in all reported counties for single family housing. Monterey County had the largest month-over-month growth in inventory as it rose 21% from last May, and Santa Clara County led the way in year-over-year inventory gains with a 32% jump.

June closed sales also rose in all our home counties when compared to last month, and saw a significant increase from June 2014, except San Mateo which was down only 5%. Median prices for single family homes are also well up from last year, but are showing a slowdown in June when compared to last month. Month-over-month June median prices inched up in San Benito and Santa Cruz counties, were slightly down in Monterey and San Mateo counties, and remained virtually the same in Santa Clara County. This recent median price trend paired with strengthening inventory have helped the strong finish to this year’s selling season.

The below chart for total dollars spent compared to closed sales shows the gap between the two data points down from April and coming closer in May.

View Printable PDF version of report HERE

6 Brilliant Small Front Yard Ideas

There are many ways to improve your small front yard without uprooting your driveway or dialing back your front porch. In fact, with the right touches, small front yards can be just as appealing as large ones. Here are some ideas to make your small yard appealing year round:

#1 Take a symmetrical approach.

One way to make your small front yard more appealing is to use symmetry. Balancing the elements of your yard on either side of your sidewalk -- grass, fencing, flowers, shrubs -- will make it look grand and inviting; it will also cost less than it would in a larger yard, because you have less acreage to cover. You can also find a local landscaper to map out and implement a symmetrical yard plan for you.

#2 Make a seamless transition from yard to house.

Use materials like box planters, stone steps or retaining walls to blend your home and yard together. Potted plants on your front porch or patio will also extend the yard without cluttering it. Make sure you choose plants that complement one another, so you don't have a lot of overgrowth.



#3 Use a hint of color.

If you want to wow people in your small front yard, pick a brightly colored flower, shrub or tree that stands out either on the porch or in the yard itself. Then use neutral colors around to make it stand out. This will be the eye-catching piece in your small yard that people will never miss.



#4 Hang basket flowers.

Hang flower baskets around your front porch or patio. They add fresh color and a natural element to your home without cluttering the porch area itself. You can change them every season or every year, depending on the flowers or shrubs you choose.

#5 Light it up.

Your front yard might be less appealing if people see it at night. That's why you should add plenty of lighting. One option is to install standing, solar-powered lamps along the walkway; another is to hang lamps on your front porch to illuminate the plants there. It just depends on how much money and time you want to invest.



#6 Refresh your front door.

While not a traditional part of the "yard", your front porch is still important to the beauty of the area as a whole. This means your front door needs to be appealing as well. Fix any cracks, scratches or other damage to the door. Also, think about revitalizing it with a new coat of paint. Choose a color that complements the exterior landscape.

Conclusion

These are only a few tips to help you improve your small front yard. You want to make it seem bigger, if not at least more comfortable. Adding a fence might be another option to consider, though you'll want to lean towards an open design pattern like picket or chain link. Just keep your budget in mind and try not to clutter your yard while trying to redesign it. For more tips on making the most of a patio in a small yard, check out this post from HuffPost Homes.


Source: RealtyTimes, Andrea Davis
http://realtytimes.com/consumeradvice/homeownersadvice1/item/36912-20150724-6-brilliant-small-front-yard-ideas

How the Baller's Live

Incredible Homes That Are So Baller They'll Make You Weep

It looks nice and prim and classic and gorgeous, but this Portland, OR English-style manor is hiding a few secrets. Like the fact that the owner added a skateboard park in the attic and built a Japanese teahouse on the grounds—a feat that took a whole four years.

This new listing didn't show the teahouse or the skate park. So here's a living room with a skate ramp instead. Or, you could buy Lil Wayne's Miami penthouse, which has a skatepark on the roof, as well as "at least one stripper pole in the billiards room," said Curbed.

Either way, your house will be the best one on the block—or maybe even in the state. Heck, let's REALLY go crazy and build a home that's the envy of the world. A true baller pad that's one of a kind. Or at least has a few one-of-a-kind features.

Like this one in Brooklyn, NY.

We're used to seeing great views from NYC homes thanks to the vertical nature of the real estate. Being able to gaze out onto the park or the river or the bridge is ideal. But how about seeing them from atop—and through—a clock tower?

"This A triplex penthouse atop Brooklyn's iconic Clock Tower building in DUMBO has stunning views of Manhattan, Brooklyn, and Queens. It also has a private elevator and 7,000-square-feet of space," said Business Insider. "The 14-foot glass clock encircles the apartment on four sides. There are three bedrooms, three full bathrooms, and soaring ceilings ranging in height from 16 to 50 feet tall.



Ever thought of moving to Serbia? Would you consider it if you could live like this?

Yes, it's tiny at one bedroom. It's also not the newest of homes, having been built in 1969. But the remote abode makes us feel a little more relaxed just by gazing at the photo.



Sure, it's got a "squash court, bowling alley, tennis court, 50-seat screening room, heated marble driveway and helipad," said Oddee, not to mention five swimming pools and an underground garage that fits up to eight limos. But what self-respecting English mega-estate would be complete without 24-carat-gold leafing on the study's mosaic floor. I mean really.



If you're into impossibly beautiful beaches with architecture to match, you'll probably you're your eye on Acqua Liana, an incredible property located on Florida's Manalapan Beach and featuring 1.6 acres of land with "150 feet fronting direct Atlantic Ocean-to-Intercoastal waterway property," said Luxury Homes.

The property has it own "white sandy beach area with a private dock, and is protected by a concrete and steel beachfront seawall. However, it is the unique design that makes it stand out from other magnificent estates.

"Throughout the home, features such as water walls, water floors, waterfalls, water gardens, pools and reflecting ponds complement each other and present a kind of ‘liquid serenity.' One of the water features is a glass 'water floor' which features hand-painted tiles amongst a Monet-inspired Lotus garden motif highlighted from below the surface. There is also a 2,000 gallon arched aquarium wet bar filled with over 100 exotic fish. 24-foot oceanfront sheeting can transform into water walls."

As if that wasn't enough, Acqua Liana is also a green home that generates up to three times the home's energy use, has an advanced run-off water collection system, and "automatically controlled lighting reduces the electricity consumption by up to 75%."



For the super tech savvy…or the super paranoid, there is this 32-acre estate, which features a 12,000-square-foot home and a $6 million security and surveillance system "that would amaze any intelligence agency in the world," said Wonderful Engineering. "The four-bedroom, seven-bathroom home is protected by interior and exterior night vision cameras and the most advanced thermal imaging (which can catch a handprint on a wall 20 minutes later) all of which can be viewed on a laptop, tablet or smartphone from anywhere in the world. The house can even detect leaks in any sinks or toilets and even a sudden 10-degree change in temperature."



Parking can be a problem in dense cities. but not so in the Hamilton Scott private residence in Singapore. "Why? Because the garage is right in their living room said Wonderful Engineering. "The luxury suites come with an advanced car elevator with moving treadmills and rotating floors, which is protected by a fingerprint scanner."



Why have a measly little outdoor pool when you can build a replica Caribbean right inside your home?



Not sold on swimming indoors? How about this incredible indoor-outdoor version that comes with a twinkly ceiling and a bonus majestic mountain view.




Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/homeownersadvice1/item/36783-20150720-incredible-homes-that-are-so-baller-theyll-make-you-weep

Report: Silicon Valley's housing affordability crisis worsens

Many of my buyer clients have no problem qualifying and purchasing a home in this valley, but I am not oblivious to the fact that there are many here in the Silicon Valley who absolutely can not afford to and even rent here. It's a sad fact of reality in this hot market which is good if your a seller, not so much if you a buyer that makes less that $100K a year.

Photo from: kurtpipergroup.com

Less than 25 percent of workers and just 40 percent of households in metro San Jose are able to rent or buy average-priced housing, according to a new report from the Silicon Valley Competitiveness and Innovation Project.

The new analysis underscores some of the region's long-term affordability trends and the impact on quality of life and business competitiveness. Compiled by Peninsula-based Collaborative Economics, the data show that the average rent in May for a two-bedroom apartment in metro San Jose was $2,917 -- and that residents would need to earn $116,680 annually to afford that. Yet the median income in the area was $57,400 for individual workers and $91,500 for households, according to the most recently available statistics, the study says.

The project was launched last year by the Silicon Valley Leadership Group and the Silicon Valley Community Foundation.

The new housing data tell a "compelling story," project manager Janine Kaiser said, about issues of economic equity and business competitiveness.

"Folks who have been living here for a long time are being priced out," she said. "There are sweeping ramifications for residents in terms of quality of life. And this represents a key challenge for businesses," hampering their ability "to recruit new talent for their work forces and to the region."

Citing data from the California Association of Realtors for the first quarter of 2015, the report says only 44 percent of Santa Clara County households could afford to purchase an entry-level home -- defined as costing $833,850, or 85 percent of the county's median sale price. That percentage shrank to 29 percent in San Mateo County (where an entry-level home was $1.11 million in the first quarter) and 27 percent in San Francisco ($1.15 million).

Even well-paid technology and science workers are feeling the impact. With a median salary of $121,000 in 2014, they are generally able to rent in the region, according to the new data, though less than half would be able to buy a home of median value in metro San Jose. The median home value there is close to $925,000, according to a Bloomberg analysis cited by the study.

The Silicon Valley Competitiveness and Innovation Project attempts to mobilize businesses in support of affordable housing. It advocates for a permanent state funding source for affordable housing as well as for investment in transportation infrastructure.


Source: Mercury News, Richard Scheinin
http://www.mercurynews.com/business/ci_28512250/report-silicon-valleys-housing-affordability-crisis-worsens

Here's Where Buyers Are Paying All-Cash

While the number of all-cash transactions is dropping nationwide, a few pockets across the country are still seeing a large share of buyers paying all-cash for their home purchase.

Read more: Fewer Home Buyers Pay All-Cash
Nationwide, the number of all-cash sales making up transactions has plummeted since peaking in January 2011 when cash transactions made up 46.5 percent of total home sales nationally. Now, that percentage has dropped to 33.7 percent of total home sales, according to CoreLogic's cash sales report.

The year-over-year share of cash sales has fallen each month since January 2013.

Despite the drops, cash sales still remain elevated by historical standards. Prior to the housing crisis, cash sales made up about 25 percent of home sales, according to CoreLogic. If cash sales continue to fall at the most recent pace, the share should hit 25 percent by mid-2017.

The largest number of cash sales are through real estate-owned sales, with nearly 57 percent of cash sales being from REOs. Resales followed with the highest cash share at 33 percent, followed by short sales at 30 percent and newly constructed homes at 15 percent.

The following states had the highest share of cash sales in April, the latest data available from CoreLogic:

• Florida: 51.4% of transactions were from cash sales
• Alabama: 48.5%
• West Virginia: 48.3%
• New York: 45.4%
• Kentucky: 41.4%

By metro level, the following cities had the largest number of cash sales:

• West Palm Beach-Boca Raton-Delray Beach, Fla.: 59.1%
• North Port-Sarasota-Bradenton, Fla.: 58.5%
• Cape Coral-Fort Myers, Fla.: 58.1%
• Detroit-Dearborn-Livonia, Mich.: 58%
• Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.: 56.9%

Meanwhile, Syracuse, N.Y., had the lowest share of cash sales at 11 percent, according to CoreLogic.

Source: Realtor Mag Online
http://realtormag.realtor.org/daily-news/2015/07/20/here-s-where-buyers-are-paying-all-cash?om_rid=AAFmZk&om_mid=_BVrTcoB9DsGkv7&om_ntype=RMODaily

4 Ways to Tell How Fast Your Home Will Sell

It’s not just location, location, location — although location is certainly important. Lots of other factors make one house hot and another one not.

Here are data-driven pointers from Zillow Research that help identify which homes are likely to fly off the market (in 60 days or less):

• Keep calm and price it right. The housing market is improving, but take care not to overheat your listing price. Homes priced more than 12 percent above their Zestimate® home values are almost half as likely to sell in 60 days as those priced closer to their estimated values. The sweet spot is between the Zestimate and six percent above it — a range where homes sell about as quickly as those priced below their Zestimates.

• Take a picture, but not too many. The optimal number of listing photos is 16 to 21, but it’s better to have too many than too few. Having fewer than nine photos lowers your chances of selling in 60 days by two percentage points.

• Size matters. As a rule, smaller homes (under 1,100 square feet nationally) sell the fastest — about nine percentage points faster than the largest homes in a 60-day window — but that doesn’t hold true for all markets. In San Francisco and Indianapolis, for example, small homes take the longest to sell.

• Get the word out. Page views on Zillow are a strong indicator of how quickly a home will sell. Listings with 280 or more page views in the first week were three times as likely to sell in 60 days as those with fewer than 100 views. That’s powerful incentive to make sure your agent spreads the word early by posting your listing online.

Learn more about these data using an interactive graphics tool at Zillow Research.

The data are based on homes listed for sale for at least one week (unless it went pending in less than a week) during the fourth quarter 2014 that sold before March 31, 2015.

Source: Zillow Blog, Melissa Allison
http://www.zillow.com/blog/tell-how-fast-home-will-sell-178449/

Infographic: Home The American Home Has Evolved over The Years

There was a time when a single family home with one bathroom was the norm, but now such homes are considered outdated. In fact, no home are being built with anything less than 1 1/2 or 2 baths. Great infographic from Selftorage.com on how the American home has evolved over the years.

Source: selfstorage.com

http://moving.selfstorage.com/evolution-of-the-american-home-infographic-2/

San Francisco among the highest rents in the country

This article doesn't surprise me. It's a well know fact of life for people living in San Francisco that rent is through the roof and there doesn't appear to be any relief in sight. And the Silicon Valley where I live and work as a Realtor is no better. San Jose, the largest and most populous city in this valley, has one of the highest rents in the country. 

It's a not so great time to be a renter, but a awesome time to be a landlord/multifamily property owner.


Picture source: Trulia

Study Shows San Francisco Housing Rents Are Fastest-Growing Among Metro Areas in Country

The national multifamily rent average continues to break records, and San Francisco stands out as the fastest-growing city in 2015.

Rent prices in San Francisco reported an 11.6 percent year-over-year growth, according to a June report by Yardi Matrix, a unit of Santa Barbara-based real estate software vendor Yardi, which came in third behind Portland and Denver.

As of April, the company recorded a 2.8 percent year-over-year job growth in San Francisco. During this time, Yardi also recorded a similar growth in housing units, as a percent of total available stock. However, the company’s 11.1 percent forecast rent growth in the city was exceeded by an actual, 6-month growth of nearly 12 percent.
“What’s happened is San Francisco has undergone a sort of resurgence of urban living that’s much different than [it was] historically,” said Jack Kern, director of research and publications at Yardi. “I’m not surprised it exceeds what it’s anticipating.”

With Silicon Valley’s rent situation not much more forgiving, many major office campuses are relocating back into urban areas, Kern said. High-profile tech companies such as Google and LinkedIn have moved some of their campuses to downtown San Francisco and have reaped increases in employment numbers. The resulting influx of often-younger employees, hungry for the technology, business and research-and-development treasure trove in San Francisco, has changed the housing market quite a bit.

“Companies are very good with [knowing] what kinds of jobs work out with recruiting certain employees in urban and suburban areas,” Kern said. “It reflects in where companies move opportunities.”

As companies move into the second half of the year, growth will surge even more dramatically, Kern predicted. That’s because as business proves itself successful early on, as it has, companies are more inclined to increase hiring in the area. Kern said this will snowball into increased demand for apartments, higher occupancy rates and higher activity in retail and nightlife.

Kern lauded San Francisco’s success in promoting livability as a major city. Its current “urban renaissance,” he said, includes sustainable development as well as even a somewhat suburban quality of life, offering local employees amenities such as a nearby gym or grocery. The result is a job-heavy area that allows workers to live in a safe, environmentally conscious neighborhood within reasonable distance of their office, he said.

Incidentally, San Francisco’s rising rent growth is converging among all asset classes —renters by choice, who can afford to own a home but prefer renting, and renters by necessity, who are unable to afford to purchase a home. The report shows that in this city, either demographic usually prefers the flexibility with simply renting. It has become unrealistic to buy a home, with ownership responsibilities included, Kern said.

“What changed is the average profile of a renter is someone who is older than a typical, younger renter, has a highly mobile kind of job and earns a higher wage or average income than you typically see,” Kern said. “I think we’re going to see the same source of renters going forward.”

As the Bay Area’s housing supply continues to be squeezed, an apartment in San Francisco grows more desirable for all income levels. Going forward the city should continue to see an increase in renters by choice as both housing demand and employment grows.

Kern added that surrounding neighborhoods, such as Daly City and Oakland, also have become very attractive. Although San Francisco is feeling the strain of development pressure, there are still options nearby that perhaps have yet to see their prime.

Source: The Registry, Alice Yin
http://news.theregistrysf.com/study-shows-san-francisco-housing-rents-are-fastest-growing-among-metro-areas-in-country/

Another New Listing

My new listing at 3128 Loma Verde Dr #111, San Jose

Open House this weekend
Saturday, July 18th 2015 - 1:30 to 4:30pm
Sunday, July 19th 2015 - 1:30 to 4:30pm

California Median Home Prices and Sales Jump in June; Median Home Prices up 2.5 Percent to $415,000

Great information folks.



California, — California single-family home and condominium sales gained 8.5 percent to 41,539 in June from 38,143 in May. On a year-over-year basis, sales were up 16.4 percent from 35,681 in June 2014. Driving the increase in sales was the 19.9 percent year-over-year increase in non-distressed property sales. Of note to investors, distressed property sales volume has remained nearly unchanged for 18 months and continues to remain a source of opportunity.

“After a mediocre May, California real estate sales took off in June,” said Madeline Schnapp, Director of Economic Research for PropertyRadar.  “The year-over-year jump was the largest since October 2012 likely due to improving economic conditions and fear of rising interest rates this fall.”

The median price of a California home in June was $415,000, the highest since November 2007.  The median price was up $10,000, or 2.5 percent, from $405,000 in May. Within California’s 26 largest counties, 19 counties saw median price increases while 7 experienced price decreases.  The counties with the biggest median price increases were San Joaquin (+8.5 percent), San Diego (+5.7 percent) and Ventura (+5.5 percent).

On a year-over-year basis, the median price of a California home was up 5.1 percent from $395,000 dollars in June 2014. At the county level, year-over-year median price increases exceeded 5 percent in 18 of California’s 26 largest counties and 7 of those experienced double-digit price increases. The counties with the largest price increases were San Mateo (+20.0 percent), San Francisco (+14.7 percent), Sonoma (+11.5 percent) and Solano (+11.3 percent).

“The jump in median home prices this past June surprised us,” said Schnapp.  “Despite affordability issues, demand was high enough to push median prices still higher.”

Flip sales have been steadily increasing since January 2015, up 2.0% for the month and 1.3% over the past 12 months.  More importantly flip says have increased 43.4% since the beginning of the year.  Short sales also posted strong gains in June, up 5.7% for the month and 2.2% year-over-year. Short sales have increased 52.8% since January 2015.

“Flippers and short sellers are finding plenty of willing buyers,” said Schnapp. “With prices already high and moving higher, this market leaves room for investors to jump in and an attractive time to sell.”

In other California housing news:

Cash sales, at their second highest level since May 2014, were up 3.1 percent for the month and up 1.5 percent in the past twelve months.  Cash sales totaled 8,397 in June and represented 20.3 percent of total sales. Cash sales as a percentage of total sales remain high but have been steadily declining since reaching a peak of 40.0 percent of total sales in August 2011. Since then, cash sales are down 42.6 percent.

Foreclosure notices and sales reached their lowest levels in our records dating back to January 2007.  Notices of Default and Notices of Trustee sale fell for a second consecutive month in June, down 11.4 and 10.4 percent for the month, respectively.  Foreclosure sales fell 7.8 percent for the month and are down 16.9 percent year-over-year.
The number of homeowners in a negative equity position continued downward in June thanks to rising prices.  In June approximately 7.7 percent of homeowners, or 670,000, owed more than their home was worth, down 1.5 percent for the month and 39.0 percent from June 2014.  We started 2015 with just over one million California homeowners underwater.
June Institutional Investor LLC and LP purchases totaled 1,320, down 2.4 percent for the month but up 1.3 percent from June 2014. Since reaching a peak in December 2012, institutional investor demand has declined due to the lower return on investment and dwindling supply of distressed properties for sale.  Seasonality notwithstanding, since April 2014 monthly purchases have remained more or less constant at 1,350. Similarly, Trustee Sale purchases by LLC and LPs were down 82.9 percent from their October 2012 peak but have trended mostly sideways since May 2014.


Source: The Registry
http://news.theregistrysf.com/california-median-home-prices-and-sales-jump-in-june-median-home-prices-up-2-5-percent-to-415000/

Info Graphic of The Week

Source: California Association of Realtors

The Backyard Pool Is Dead

I haven't seen any backyard ponds in the the homes I have shown, but one thing I can say is that the traditional swimming pool is a not as popular as it once was. Many of my first time home buyer clients aren't even seeking a home with one, and I know many other agents who say the same thing.



RIP, pool. It was nice stepping off your slick decking into your chlorinated waters. If you need us, we'll be over here in the backyard pond.

"Nature lovers and chlorine haters, rejoice. There's a new pool in town. And by pool, we mean pond," said Business Insider. "These eco-system swimming creations are environmentally-friendly and will protect you from #DroughtShaming.

Drought shaming, you say? That's the hashtag that has popped up to call out those who are ignoring or inflaming drought conditions in California and other stricken areas.

But that's just one reason to forgo the traditional pool for a pond.

"If you care about the Earth, or if you hate the way your skin smells and feels after swimming in a chlorinated pool, consider going au natural," they said.

Have questions? We have answers.

1. What is a swimming pond

A swimming pond is a natural type of pool that is generally split between a swimming area and vegetation.

The vegetation is critical because it "acts as a biological filter," said Good Housekeeping.

"Plants like flag irises and water lilies keep phosphate levels in check while getting rid of nitrates so there's no algae," added Business Insider. "Gravel also plays a role in filtering the pond. To keep the water moving, go the scenic route with a waterfall or install a small pump—this will also help keep the pond clean."

2. Does it use chemicals?

One of the great benefits of a swimming pond is that it is chemical free. "When managed properly, natural swimming pools have crystal-clear water and require no chemicals to maintain because they are self-cleaning mini-ecosystems," said Good Housekeeping.

3. Are they hard to build?

No. Some people even do it themselves.

4. Does a swimming pond cost more than a pool?

"Natural pools cost about the same as traditional swimming pools—construction costs start at about $50 per sq. ft.," said houselogic. "However, because there are no chemicals to add, yearly maintenance costs are hundreds of dollars less."

5. What else is needed for maintenance?

"You're building a natural ecosystem that basically takes care of itself. Monitor chlorine? Nope. Balance the pH? Relax. The most you'll have to do is skim fallen leaves off the surface," said houselogic. "There aren't any filters to monitor, either, so you don't have change out anything. Bonus: No electricity needed to run the filter system."

Sold yet? Check out a few of these backyard swimming ponds.

Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/homeownersadvice1/item/36557-20150713-the-backyard-pool-is-dead

Obama Lauds HUD's New Fair Housing Rule

I wrote about this last week in my blog entry titled Government considering plan to force the poor in with the rich. If you haven't read it yet, maybe now you should. At the time I was under the impression that President Obama wasn't fully behind the plan, but now it looks like he is and it looks like it's going to happen sometime before he leaves office.


President Obama says the Fair Housing Act and the latest final rule issued by the U.S. Department of Housing and Urban Development will help ensure all Americans get an "equal shot in life." Obama devoted his latest weekly address to talking about the Fair Housing Act and battling discrimination in housing.

HUD last week issued a final rule on Fair Housing that aims to "equip communities that receive HUD funding with data and tools to help them meet long-standing fair housing obligations in their use of HUD funds." The rule aims to help local governments identify patterns of racial and ethnic discrimination. HUD will issue maps, charts, and other data showing racially or ethnically concentrated areas of poverty; the location of subsidized housing; and where wealthier people have access to greater community assets like top-notch schools and job opportunities.

"The work of the Fair Housing Act remains unfinished," Obama said. "Just a few weeks ago, the Supreme Court ruled that policies segregating minorities in poor neighborhoods, even unintentionally, are against the law. The Court recognized what many people know to be true from their own lives: that too often, where people live determines what opportunities they have in life. … In some cities, kids living just blocks apart lead incredibly different lives. They go to different schools, play in different parks, shop in different stores, and walk down different streets. And often, the quality of those schools and the safety of those parks and streets are far from equal – which means those kids aren’t getting an equal shot in life."

HUD's latest rule will aid communities in making sure the Fair Housing Act is in place.

"We're using data on housing and neighborhood conditions to help cities identify the areas that need the most help,"Obama said. "We're doing more to help communities meet their own goals."

Source: Realtor Magazine Online

http://realtormag.realtor.org/daily-news/2015/07/14/obama-lauds-hud-s-new-fair-housing-rule?om_rid=AAFmZk&om_mid=_BVpU4oB9DkuJPt&om_ntype=RMODaily

"What Are Comps?": Understanding a Key Real Estate Tool

Comps are Very important in this business. As real estate practitioners, we are licensed for real estate, not appraisals. Great article from Zillow below.



“Comps,” or comparable sales, is a term anyone on either side of a real estate transaction should know well. It refers to homes located in the same area and very similar in size, condition and features as the home you are trying to buy or sell.

Buyers look at comps when deciding what price to offer on a home, and sellers use them to figure out how to best price their home for the market. Real estate agents look at comps all day long as a way to keep on top of their local market. If you are a buyer or seller, it’s helpful to have a strategy to analyze comps, because all comps aren’t created equal.

Location is the highest priority

If you are trying to price a home or figure out its value, you need to look nearby. The market is based on location, so keeping as close to the subject property as possible — meaning, within the same neighborhood — is the most effective approach.

If you can’t get enough comps nearby, it’s fine to keep expanding out. But there will always be a boundary, like a school district, that you need to stay within.

Timeframe matters

The best comps are homes that are currently “pending.” Why? Because a pending home is a piece of live market data. A pending home means that a buyer and seller made a deal, and that deal will reflect the most up-to-the-minute stats on the market.

A good local real estate agent, leveraging her network, can get a fairly accurate idea what the ultimate sale price or range is for a pending deal. Try to stick with sales in the past three months, and never go more than six months, because older data is not reflective of the current market.

Factor in home features

Once you have location and timeframe, it is key to look for homes with similar features that have sold, as opposed to comparing price per square feet. While the latter is helpful, it won’t consider factors like views, a new designer kitchen or a finished basement vs. unfinished.

If you have all three bedrooms on the top floor, look for something similar. Try to compare your subject property to like properties when it comes to traits like total size, the number of bedrooms and bathrooms, and the size of the lot. You can make adjustments once you have found similar homes.

Don’t overanalyze the comps

Putting your trust in a good local agent will keep you from agonizing over the petty details of each comparable home. Your agent is likely familiar with some of the recent sales, and can help shed light on why one comp fares better than another. You may not know that one home was next to a fire station or across from a parking lot, or that another didn’t have a real backyard, but your agent will. These small nuances will affect the home’s value.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/what-are-comps-179631/

To the World, U.S. Real Estate Is a Good Deal

San Jose and San Francisco on the list as good buys to foreign investors. This news comes as no surprise to active agents such as myself who work with these buyers and/or have them making offers on our listings. No wonder why the market is so hot here in the Valley.


To the World, U.S. Real Estate Is a Good Deal



U.S. housing markets are the most affordable in the world, at least according to a recent study of more than 300 metro housing markets in nine countries conducted by the research group Demographia.

U.S. housing markets were found to be more affordable than Canada, the United Kingdom, Ireland, Australia, New Zealand, Singapore, Japan, and China.

Researchers measured affordability by taking a look at median home prices and median household incomes. A market was rated "unaffordable" if it had a calculated value of higher than 3.0 and was "severely unaffordable" if above 5.1.

The U.S. markets analyzed showed a lot of variation -- such as Detroit at the bottom with a 2.1 value while San Francisco had a 9.2 value. Still, the U.S. averaged 3.4 as a whole, making it more affordable than other countries.

Hong Kong, on the other hand, was the priciest and at a record high on the survey. The survey found that even if a household could direct all of its household income toward buying a home, it would still take 17 years before the household could afford to buy. To live on Hong Kong Island alone, a resident would pay about $900 in U.S. currency for just a 150-square-foot apartment. Hong Kong is the most densely populated places across the globe; it holds 6,845 people per square kilometer. New York, as comparison, hold 2,050.

Hong Kong also had the smallest homes in the study, with the average size of a new home at just 484 square feet.

The study found the following major markets were the most unaffordable:

1. Hong Kong
2. Vancouver
3. Sydney
4. San Francisco
5. San Jose
6. Melbourne
7. London

Source: RealtorMag Online > Think Housing Is Pricey in America? Be Glad You’re Not in Hong Kong
http://realtormag.realtor.org/daily-news/2015/07/07/world-us-real-estate-good-deal?om_rid=AAFmZk&om_mid=_BVnCG4B9DXlYSt&om_ntype=RMODaily

4 Ways to Keep Your Closing Process Moving

As a Realtor who has closed quite a few transactions, I've seen my share of deals that have fallen apart or stalled due to one issue or another. I'll spare you the gory details, but anyway buying a home in this valley can be challenging enough, and when you do get your offer accepted, the last thing you want is for your deal to go bust. Great article below from Zillow.




Buyers and sellers typically plan to meet the closing deadline in good faith. In some parts of the country, there are no consequences for closing delays, while in others, a few days’ delay is allowed without ill effects. However, delays most often involve a monetary penalty or require some negotiation.

One closing will frequently have an effect on many others. If a seller is simultaneously trying to buy a home, and their purchase closing can’t happen until they sell, and then their seller needs to close to buy, the situation can get tricky.

When this happens, tempers flare. Keep this in mind when signing a contract, either as a buyer or seller. Don’t commit to a date if you have any doubt about your ability to meet that deadline.

Once you have a closing date set, here are four steps you can take to ensure the process doesn’t get delayed.

Have your agent watch for problems

Once a property is under contract, the buyer’s agent should check in with all parties at least twice per week, if not more. Because a good agent has completed so many transactions, they know to be on the lookout for any transactional surprises or changes.

Both the buyer’s and seller’s agents should identify potential problems before they happen, and put a plan in place to solve them.

Keep lenders in the loop

Buyers should check in with their lender regularly. Today banks require so much paperwork — and sometimes need the same information over and over.

If your mortgage professional asks for follow-up documentation, get it to her right away. If one document — or even one signature — is missing, it can hold up the closing.

What’s worse is if you have a rate locked and a delay occurs. You could lose your rate and be forced to re-lock at a higher rate, not to mention delay the seller — and potentially their purchase.

Beware last-minute seller surprises

Sellers can sometimes cause bumps in the road by not being able to move out in time, or failing to make the agreed-on fixes.

If the seller agrees to make repairs prior to closing, put a deadline on those repairs. No matter how big or small the fix, you don’t want to show up at the walk-through to see the seller doing the work. Ask for the work to be completed a week before the closing, and put it in writing.

It’s common for buyers to be unsatisfied with repairs when the seller is done. If you leave time for any follow-up on the repair work, you can avoid delays.

Keep your finances stable

Buyers obtaining financing should not make any major changes before closing. The littlest change can affect your ability to close. If you purchase a car or apply for a new credit card between the time you sign a contract and close, that debt will affect your loan. If you change jobs, you could lose the loan or delay your purchase.

Nine times out of ten, delays can be avoided by planning. Staying on top of all parties and aspects of the transaction should assure an on-time closing.

Once in a great while, something comes out of left field, and no planning could have prevented it. When that happens, notify all parties and tackle the problem head-on as soon as possible.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/keep-closing-process-moving-179305/

My good friend Heather with Roh Habibi with Million Dollar Listing San Francisco

Heather Thompson-Twardus with Old Republic Title, a good friend and colleague of mine had the pleasure the other day of meeting with one of the new stars of Bravo TV's Million Dollar Listing San Francisco, Roh Habibi. I look forward to watching the show this season for sure.

Million Dollar Listing San Francisco

The Top Three Reasons Buyers Choose The Homes They Buy

You may think buyers will love your home because of your extraordinary taste in home furnishings or the incredible job you did with your home addition. Nope, it's not the décor or the vast add-on that gets them to commit, although they may help. There are three top reasons a buyer chooses to buy a home -- price, condition, and location.

Let's start with Price. To choose the right asking price for your home, you need to know if your neighborhood is in a buyer's market or seller's market. A buyer's market is characterized by large inventories of six months' supply or higher, few buyers making offers, low offers, and many other concessions asked of sellers. A seller's market is characterized by low supply of six months on hand or less, heavy buyer traffic, multiple offers, and close to full price or full price offers.

Bankers, buyers' agents and buyers all have access to the same market information that your agent has given you. If you overprice for the current market, your potential buyers won't get to see your home, and even if they do, they won't get their loans approved.

Condition

Allow your real estate agent to help you market your home by putting it in the best condition possible. Buyer's pet peeves may be easy items to fix, but you don't want your house to go to the bottom of their list because you failed to paint, mow, replace the carpet, etc. Sometimes you have to invest a little money to make money.

Remember, today's buyers are more skeptical about buying a home, so creaky steps, dripping faucets, and outdated wallpaper just give buyers a reason to skip your home.

Location

You can't do much about your home's location, but you can make your home more attractive with lovely landscaping, fences to block out ugly views and sounds, a lower price and immaculate condition.

If you do have a great location, don't overprice. People expect to pay more for a great location next to schools, transportation, shopping and restaurants, but if you overprice, they will scrutinize the price and the condition.

It's hard not to be sentimental about the home you've lived in for years, but to buyers, your home is a commodity. Like you, they simply want to make a good deal on a home they love.

You'll quickly find out what real estate agents and their buyers think of your home. If you get a quick offer, you know you priced it right for the location, condition, and the current market.

If you don't get an offer within a couple of weeks, or whatever period is normal for your area, there's something wrong. Look at your price and condition and see if you can make your home a little more desirable.

Source: RealtyTimes, Blanche Evans
http://realtytimes.com/consumeradvice/buyersadvice1/item/36230-20150702-the-top-three-reasons-buyers-choose-the-homes-they-buy

The Property Tax Man Cometh

With property values going up and up here in the Silicon Valley because of a hot real estate market, due in large part to cash investors and the tech sector job market, one unintended consequence of this is that property taxes are going up to many homeowners dismay. The article below from the Mercury News talks about how the current assessment tax roll is now at a staggering $409 billion - the highest ever!

This is good news for property owners who were here in 2008 when the market took a dive and lost value on their property as result of that, and during that time many owners had their property taxes go down. But now the table has turned and its time to pay the piper because property owners in this valley are going to be hit with a rude awakening with a higher property tax bill.


Photo Source: dentonlawyer.com

Property values reach milestone: $409 billion in Santa Clara County
SAN JOSE--Just a few weeks ago, the tax man said Silicon Valley's booming economy was driving property values so high that a good number of homeowners should expect a sizeable bump in their tax bills. On Wednesday, Santa Clara County Assessor Larry Stone all but delivered on that promise when he announced that the assessment roll had hit a milestone -- $409 billion.

"The demand is driven by job growth, and Silicon Valley is at the epicenter of the nation's recovery," Stone said in a prepared statement.

The value of residential property and apartment rents has exploded, the assessor said. The median price of single family homes in the county increased 11.1 percent to $810,000 last year. The average price of homes sold was even higher a whopping $1.1 million.

The roll is a snapshot of the assessed value of all real estate and business property in the county as of Jan. 1. After exemptions, the net amount that can be taxed is about $388 billion. That's still an increase of 8.7 percent, or $31 billion over last year.

Stone said the recovery is "positive news" for homeowners who saw their largest asset lose equity or even sink underwater -- lower than the purchase price -- during the Great Recession, which many economists date from 2008 to 2012. Many of these homeowners saw their property taxes reduced, but Stone said he'll have to restore the assessed values that were reduced during the downturn. Last year, 38,000 properties were assessed below their market values. That number dipped to 22,000 this year.

"The residential real estate market has been so strong that some property owners will experience double-digit increases in their assessments," Stone said.

He added that major office and apartment building in northern parts of the county, including northern San Jose, is driving property values upward. A symbol of this growth, he said, is Levi's Stadium, assessed at $1.4 billion. Another is the new Apple campus, still under construction, which he assessed at $820 million.

Meanwhile, the average rent for a two-bedroom apartment in San Jose reached $2,300 a month.

"It is a huge crisis for people who are already doubling up in apartments and living in garages," said Poncho Guevara, head of Sacred Heart Community Service in San Jose.

He described the super-hot recovery as a double-edged sword for the working poor: There are more jobs out there, but higher earnings at the lower end of the employment spectrum aren't keeping up with escalating rents.

During the recession, Guevara said, the number of people coming to Sacred Heart for services or food baskets doubled to about 75,000 in 2014.

"The biggest pressure people are facing right now is the cost of housing," he said. "They're coming to us for food because they can't afford the rent."

Stone said homeowners who think their assessments are higher than market value should file appeals.

Source: The San Jose Mercury News, Joe Rodriguez

http://www.mercurynews.com/bay-area-news/ci_28409575/property-values-reach-milestone-409-billion-santa-clara

Government considering plan to force the poor in with the rich

The Silicon Valley has its share of wealthy communities such as Los Gatos, Saratoga, Los Altos and Palo Alto. Now imagine for a moment owning a spectacular home in one of these communities that you've worked hard to earn the money to pay for and then to wake up one day to learn that bureaucrats in the federal government are forcing your community to build low cost housing a few blocks down the street from you. How would you feel? What effect would it have on your property value and that of your neighbor's home? Do you think it would affect quality of live issues in your community such as higher crime rates?

Well, now it seems the White House is considering a plan that would force cities to report out every 3-5 years on their housing patterns for racial bias and go even further by setting and tracking goals to further reduce segregation. HUD will withhold funding from communities that fail to comply with their utopian vision of how their community is supposed to look.

I won't get into the politics of it. I'll let others do that, but all I'll say is that if this plan is allowed to go forward, it doesn't seem to me to be a good idea. I mean, after all, I am a Realtor. I love to help first time home buyers buy a home of their dream. I would truly love to see everyone own a home, BUT I am also a realist in that I mean that if someone can't afford a particular zip code or neighborhood, then they can't afford it. That's just the way it is. Let the market determine who lives where. Someone in Washington, thousands of miles away from here, shouldn't be sticking their fingers into the hyper local business of residential real estate.

The plan will be carried out through HUD (the Department of Housing and Urban Development) and Obama's HUD Secretary Julian Castro seems to be fully on board with it. 

"This important step will give local leaders the tools they need to provide all Americans with access to safe, affordable housing in communities that are rich with opportunity."

Of course I realize that on the local level, cities such as San Jose are requiring new developers to designate a certain percentage of of units to low income. And I know there are section 8 housing units in different areas of this valley, so I know both of these are basically examples of government control that is already in place of meddling in housing market with the feel good goal of helping the poor. BUT, my point is, do we really need another government entity dictating who lives where, especially seeing how far removed a Washington bureaucrat will be from this community? What say you? Let me know if the comments below.

"This overreaching new regulation is an attempt to extort communities into giving up control of local zoning decisions and reengineer the makeup of our neighborhoods, just as the president has used the DOJ, IRS and DHS as a political weapon, he has now expanded his arsenal to include HUD as a way of punishing neighborhoods that don’t fall in line with his liberal agenda, how we can live, where we go to school, how we will vote” and “what this utopian type of neighborhood should look like." - Rep. Paul Gosar, R-Ariz

Good intentions or power grab? HUD unveils regs to diversify neighborhoods

WASHINGTON –  The Obama administration announced new rules on Wednesday that are meant to racially integrate America's neighborhoods but some conservatives claim are an attempt by Washington to play a heavy-handed role in creating “utopias.”

The new HUD housing rule comes on the heels of a landmark Supreme Court decision that reaffirmed the federal agency’s power to ban housing policies that hurt minorities.

The Fair Housing Act, which originally was passed in 1968 and barred racial discrimination, demanded the government end segregation.

The new rule takes this a step further and requires cities across the country to scrutinize their housing patterns for racial bias and report the results every three to five years. Communities would also have to set and track goals to further reduce segregation.

“Unfortunately, too many Americans find their dreams limited by where they come from, and a ZIP code should never determine a child’s future,” Julian Castro, the secretary of the department of Housing and Urban Development, said Wednesday in a written statement. “This important step will give local leaders the tools they need to provide all Americans with access to safe, affordable housing in communities that are rich with opportunity.”

But others say the rule is nothing short of a government power grab.

“This overreaching new regulation is an attempt to extort communities into giving up control of local zoning decisions and reengineer the makeup of our neighborhoods,” Rep. Paul Gosar, R-Ariz., told FoxNews.com in a written statement on Wednesday. 

“Just as the president has used the DOJ, IRS and DHS as a political weapon, he has now expanded his arsenal to include HUD as a way of punishing neighborhoods that don’t fall in line with his liberal agenda," he added.

In June, Gosar said the HUD rule attempts to tell Americans “how we can live, where we go to school, how we will vote” and “what this utopian type of neighborhood should look like.”

Gosar believes the proposal will have far-reaching consequences that only boosts the federal government’s power over where homes can be built and who can live in them. He adds that if cheaper homes start to crop up on the outskirts of wealthier properties, it could potentially depress property values.

Gosar sponsored an amendment to the House HUD spending bill – which passed -- that would block any future funding for the new rules.

“This rule is not about racial integration; racial segregation in housing is illegal and has been for decades,” Heritage Foundation fellow Hans Von Spakovsky told FoxNews.com. “Americans have the ability to live anywhere they want. This is about left-wing, progressive social urban planners who have taken control through the Obama administration who hate suburbs and don’t like Americans using cars or owning single family homes in neighborhoods that are not high-density.”

Von Spakovsky believes the rule will make things worse for the poor.

“They are using federal housing money intended to improve the bad housing of poor Americans as the lever to force compliance with these new regulations,” he said. “But that money is most needed in blighted, inner city urban neighborhoods, where there are a large number of African Americans. This federal utopian vision will divert that needed federal money into suburbs where it is not needed, leaving poor Americans living in substandard, terrible housing.”

Last month, Castro defended the new rule to skeptical lawmakers on Capitol Hill.

“It’s not just about affordable housing -- It’s about good transit. It’s about access to good schools; it’s about all that,” he said at the time.

Rep. Mia Love, R-Utah, pressed Castro during the Housing and Urban Development Department Oversight Hearing, for examples where the federal government has been able to successfully diversify areas or end discrimination.

“I know that, as mayor, you wouldn’t want the federal government coming in to tell you what to do with your zoning laws or with your rules, because you have more skin in the game; you have more of an incentive to take care of the people that live in your areas,” Love told Castro, who served as mayor of San Antonio, between 2009 and 2014.

Source: Fox News, Barnini Chakrbory

http://www.foxnews.com/politics/2015/07/08/new-hud-rule-good-intentions-or-another-government-power-grab/