Where is the Real Estate Market Going? is a post from: Mark's Remarks

With the Federal Tax Credit expired, mortgage interest rates at their all time low, values down 20-80% off the peak and a pent up demand for housing, just where is this market going? If I knew the answer, I’d be Warren Buffet and even his crystal ball is in the shop…

My best guess, is that with the numbers of defaults continuing, especially on loans over $1Million, we have not seen the end of the housing collapse; which makes this, an ideal time to buy! Many buyers are paying less for a mortgage than they are for rent. Most of that is because of low rates. When I bought my first home, the rate was 8.87%…and that was a good rate. Believe it or not, there are many markets which are still entertaining multiple offers. 

The time to buy is not when the economy is surging upward, rather it is when blood is running in the streets.

Last Call: Champagne Tuesday, 2/9/10. is a post from: Mark's Remarks

Champagne Tuesday, February 9th is a post from: Mark's Remarks

Fundraiser for "Moment by Moment" Tuesday, 2/9/10

The Real Estate Market: Where is it going? is a post from: Mark's Remarks

In a market that changes almost weekly, Real Estate in 2010, looks like a good bet to bounce back slightly as housing inventories remain relatively low. The big question remains: what about the banks’ shadow inventory? 

With over a million homes being held by banks throughout the country, will the banks release a foreclosure tsunami or will they dole out REOs more judiciously than the last time around? Only time will tell. Word on the street has it that we may be seeing a fresh batch of foreclosures as early as the first week of February and into March, April and May. What will this do to the existing market? Stay tuned…

Are Appraisals Getting Easier? is a post from: Mark's Remarks

In recent months, I have experienced a relaxing of appraisals on single family homes. Earlier this year, it was like pulling teeth to get an appraisal through and now with Obama getting touch with banks, we may see Real Estate transactions boosted. 

Condominiums and Townhomes can still present a challenge as there are new bank guidelines which scrutinize Homeowner Associations to the gnat’s eyelash.

Where Have the White Picket Fences Gone? is a post from: Mark's Remarks

I was having lunch with Steve, a good friend and colleague, last week. He is a 10 year seasoned Real Estate veteran. We often get together and discuss the current market. In the middle of the main course, he turned to me and asked, “What happened to the white picket fence?” 

It’s hard to believe where we have come in the last decade. When I began my career almost 12 years ago, people would still call our office with an inquiry regarding a home they’d seen for sale in a black and white magazine. 

It’s no secret –  by the 2000’s, things began to change rapidly. Email took over as one of the cardinal communication modes. Websites like Realtor.com, Zillow, Trulia and Cyberhomes popped up. Investors snapped up and traded properties like baseball cards. Buyers no longer needed to contact a Realtor until they had perused the internet for the perfect home. Sellers might dial up a website to update themselves on the value of their home. 

In addition, folks bought homes, not to live in, but to “fix and flip.” The white picket fence had become a commodity. Now, with rampant bank foreclosures, lending institutions are selling “tapes” or bundles of foreclosed properties to smaller institutions for cents on the dollar. These homes are then redistributed to end users, mainly investors, for profit. 

Of course there are still buyers opting for a place to call home and trust me, I am all for making a living and improving one’s lifestyle via prudent investments. But the face of Real Estate has changed forever and looking back, I sort of liked the value that Jimmy Stewart displayed in It’s a Wonderful life. Everyone has a right to the American Dream and sometimes it may even include a white picket fence.

NEW FORECLOSURE RUMBLINGS is a post from: Mark's Remarks

On Monday, I spoke with an colleague who is involved with the Wachovia asset management team.  He expects a new wave of foreclosed properties to hit the market in Q4.  What will that do to the market?  Only time will tell. 

“Clearly, there has been a terrific pent up demand for housing and a lot of frustrated buyers out there,” replies another colleague.

 Are we finally approaching an equillibrium in the Buyer/Seller arena?  Could this be one of the most “normal” markets we’ve seen for years?  As always, waiting may be a wise choice, but if you see that perfect home, at the right price combined with historiaclly low interest rates, you may want to go for it – for you may never pass this way again.

Short Sale vs. Foreclosure: Consequences and Penalties is a post from: Mark's Remarks

In these times of economic turbulence and many homeowners are faced with hard decisions, it pays to have the facts about which choices to make regarding your property.  As the following guidelines are an overview of some of the effects of each Foreclosure and Short Sale and designed to give you an idea of the consequences of either, each case is different and I recommend to seek the advice of a qualified specialist before you or someone you know makes a decision:

 Foreclosure:  Homeowners who lose their homes to foreclosure are ineligible for a Fannie Mae backed loan for a 5 year period. 

Short Sale:  Homeowners who successfully navigates, negotiates and closes on a short sale are eligible for a Fannie Mae backed loan in 2 years. 

Foreclosure:  Will often reduce a borrower’s anywhere between 250-300 points and remain on credit record for over 3 years. 

Short Sale:  After closing, not reported on a credit score.  There is no specific ‘Short Sale’ item on credit score.  Report generally reads: ‘Paid in Full, Settled’.  Beware of “rolling late payments” prior to Short Sale.  This WILL negatively affect borrower’s score. 

Foreclosure:  Security clearance can be revoked or terminated if a borrower is a police officer, military personnel, CIA or Security officer which requires such clearance.

 Short Sale:  Does not challenge most security clearances. 

Foreclosure:  Employers have the right to check the credit of employees in sensitive positions.  A foreclosure may be grounds for immediate reassignment or termination. 

Short Sale:  In most cases, not reported on a credit report. 

Foreclosure:  Many employers are requiring credit check on all applicants.  A Foreclosure on a credit report may challenge employment. 

Short Sale:  In most cases, not reported on credit report.

In closing, be aware that in a Short Sale, a bank may ask the borrower to sign a promissory note committing to pay back losses to the lender.  Additionally, the bank may send a 1099 to the borrower for the motgage relief.  Again, always check with a qualified specialist before making any decisions.

Come Out to the Lafayette Art & Wine Festival – This Weekend! September 19th & 20th is a post from: Mark's Remarks

 If you love red or white wine, fabulous art, upbeat music, delicious food, exciting entertainment, happy people and just a good old time, check out the 14th Annual Lafayette Art & Wine Festival in downtown Lafayette.  This event is sponsored by the Lafayette Chamber of Commerce.  Be sure to stop by the “Trust in Education” booth and shake hands with our local hero, Budd MacKenzie, who helps set up schools and businesses in Afghanistan.  You can find an article about his crusade on the front page of the Contra Costa Times http://tiny.cc/rAtO5

How to Buy a Home in Lamorinda: Part I – Be Aware of Soil Movement is a post from: Mark's Remarks

Just east of Berkeley, CA, lies a group of communities that is shielded from the San Francisco Bay Area fog, has top ranked schools, rolling oak studded hills and a small town feel.  I am referring to Lafayette, Moraga and Orinda otherwise known as it’s nickname, Lamorinda, CA.  

As a resident for almost six years, I have gotten a chance to experience this wonderful hamlet, a mere 20 minutes from downtown San Francisco.  Additionally, BART or Bay Area Rapid Transit, offers a short public transportation option to the “City by the Bay.”

You may have been perusing several Bay Area communities if you are relocating from out of the area and found pluses and minuses in the North Bay, SF proper and the South Bay.  As far as value goes, the East Bay can’t be beat.  Summer days are a little warmer than other Bay Area communities, but Real Estate has definitely more bang for the buck. 

When purchasing a home in the Lamorinda area, be aware of the clay-adobe soil in the valleys and mantling the hillsides.  This type of soil shrinks in the summer months and swells during the rainy season, potentially resulting in seasonal movement of patios, decks and even foundations that have not been designed to mitigate the movement.  Have a qualified home inspector thoroughly check the foundation, exterior stucco or siding, interior drywall and flooring for signs of previous movement, cracks or out of plumb windows and doors.  If possible, find out which type of foundation the home has, such as shallow footings or deeper drilled piers. 

Soil creep, hilly terrain, weak bedrock and soil, poor drainage around the foundation, and lack of rain gutters as original equipment can all be contributing factors to general instability in buildings and structures throughout the Lamorinda area.  In addition, check with city officials for any past geologic issues in the location in which you are purchasing.  If questions are raised, you may want to contact and engage the services of a registered geotechnical  engineer or certified engineering geologist to further evaluate the problem. 

According to John Dye, Principal Geotechnical Engineer with Cornerstone Earth Group in Walnut Creek, he says,

 “Generally there is no cause for alarm as thousands of residents have purchased and lived in Lamorinda for decades, but conduct due diligence by carefully reviewing all disclosures and noting any history of past soil movement or slides.  Most Buyers do not conduct a geo-tech inspection chiefly because of the cost involved…a due diligence evaluation can range from several hundred to several thousand dollars depending on the complexity of the property.”