Housing Affordability - High Record for 3rd Straight Quarter!

November 19, 2009 - Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.

The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.

"At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."

Maintaing Your Wooden Deck!

Maintaining Your Wooden Deck

A regular maintenance program can improve the appearance of your wood deck and significantly extend its life. The primary causes of wear are moisture and sunlight. Moisture can be trapped on the deck by leaves, debris, or items stored on the deck, such as planters. Debris tends to collect in the spaces between deck boards, trapping moisture, which causes decay in the deck framing. The shady underside of the deck is more likely to be damaged by decay. A putty knife, another narrow tool, or a hard spray of water from a garden hose can remove the debris from between the deck boards. If the deck boards are too close together, they can be widened to approximately 3/16 inch by using a circular saw.

To clean an older deck and improve its appearance, scrub it with a stiff brush and a solution of TSP (trisodium phosphate) in warm water; mix one cup TSP crystals into a gallon of water. Be sure to wear rubber gloves and, if you are scrubbing by hand, wear protective goggles. If you are going to be working on your hands and knees, rubber kneepads would be helpful. After scrubbing, hose off dirt and solution with water. If areas of the deck are discolored with mildew, apply a solution of one part water to three parts household bleach to the stained areas. Commercially prepared deck cleaners are also available. Some cleaners contain fungicides and mildewcides and others contain special bleaches to lighten the wood.

For large, heavily soiled decks, a power washer is ideal to clear off surface grayness and save a lot of scrubbing and effort. A power washer with a 2,000-pound per square inch pressure pump rents for about $25 per hour or $75 per day. These sprayers are very powerful and special care should be made to avoid damaging the wood. Be sure to wear safety goggles. After the deck is clean and dry, examine the surface carefully for loose boards, nails, and other damage. Use a nail set to punch nails below the deck surface.

Oxalic acid can make your just-cleaned deck look almost new. Oxalic acid is sold at paint or hardware stores and it lightens and brightens the wood as you apply it. It is also useful for removing stains. Oxalic acid causes skin irritation so wear rubber gloves and protective goggles when handling it. Avoid contact with nearby plants. Mix four ounces of crystals to one gallon of warm water. Apply liberally with a sponge, mop, or garden sprayer, but do not use metal buckets, wire brushes, or steel wool. The more time it takes to dry the better it works, so try to work in the early morning or on an overcast day, rather than in the full sun. Let the solution act on the deck; then thoroughly hose off the surface. The deck may look quite new when finished, but do not expect this to last. The deck will slowly gray with time and sun exposure.

There are stains that can restore the original color and keep it looking new. Water repellents or wood preservatives can help maintain deck appearance. Read the manufacturers' recommendations on these products for coverage and application methods. These products should be applied with a brush to allow for adequate penetration of the material into the wood. Do not apply these materials in direct hot sunlight, as you want it to soak into the wood instead of evaporating. Reapplication of these materials may be necessary every three to four years, depending on the amount of sun exposure and climate in your area.

The framing beneath the deck should be examined periodically for signs of decay. This is usually indicated by a white or brown growth on the surface of the wood, followed by softness and deterioration. Minor decay can be treated by wire brushing the surface and applying a fungicide such as copper napthenate (Copper Green) to the area. Probe the wood with a screwdriver to determine if it has weakened.

Any wood that is seriously weakened by decay should be replaced. If it looks like there are areas of significant damage it is probably best to hire a deck specialty contractor to make repairs, especially if the deck is high off the ground.

Mortgage Impound Accounts - What are they?

Mortgage Impound Account Payments

The purpose of a mortgage impound account is to have you pay the lender each month:

-your regular loan payment

-income taxes

-hazard insurance


The first charge is a lender charge. The other two charges are third party charges that you must pay periodically or annually. Instead of waiting around to pay these amounts, the lender collects this from you monthly.

Mortgage Impound Account Purpose

The lenders collects this money and pays it on your behalf, in theory. In practice sometimes they are late with this, so you need to keep on top of this.

Lenders often give a borrower a discount on their interest rate if they agree to pay their additional expenses such as taxes and insurance on a monthly basis.

The purpose of this is to make sure you don't get behind on paying these other charges.

Some lenders can require that you do this every month. This is usually if the size of your loan is over 90% of the value of your property. This can vary from lender to lender and state to state.

When comparing offers from lenders you can check to see if the rate reflects these impound accounts and the discount that goes with it.

It is also important to know what your total monthly payment will be after you get your new mortgage loan. If it includes impounds this can end up being several hundred dollars more per month extra.

Below Market Rate Housing in San Francisco (Lotttery)

The San Francisco Below Market Rate ("BMR") Inclusionary Housing Program requires developers to sell 15% of units in new, private developments at a "below-market-rate" price that is affordable to low to moderate income households. The program is administered by the Mayor’s Office of Housing (known as "MOH") and currently includes over 750 ownership units. At least 100 new units to become available each year.

To get into a BMR an applicant is placed into a lottery and there are no guarantee!

Program Highlights:

How the BMR Units are Priced?

Most BMR units are priced to be affordable to median income households spending no more than 33% of their income on housing expenses. We price the units to include condominium association fees, property taxes, the current interest rate, and we assume a 10% down payment from the buyer.

Maximum Income

The majority of projects will be available to households with a combined income of no more than 100% of median income, although some will be available to households whose income is at 80% or 120% of median income. The amounts are adjusted on an annual basis. Our office will update these income maximums between March and May of each year.

100% of Median Income for the City and County of San Francisco 2008

*
A one person household can make no more than $58,050
*
A two person household can make no more than $66,300
*
A three person household can make no more than $74,600
*
A four person household can make no more than $82,900
*
A five person household can make no more than $89,550


For more information please visit the following website: San Francisco BMR

Winter Home Sales - Normally Slower...NOT this Winter!

House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different!

What is different for the Real Estate Market this Season?

Reason #1:

We're going to see far more interest in the fourth quarter than we generally do because of the tax credit. Traffic surged on Trulia.com on Nov. 5th due to the extension of the home buying tax credit. The new law extends tha tax credit for First-Time home buyers. This will create a higher volume of interest this Holiday Season.

(To Read more on the tax credit click on link: $8,000 Tax Credit)


Reason #2:

Low interest rates will create a desire for home buyers to take action this Winter Season. The Real Estate makret along with other aspects of the Economy have seen positive improvement creating the "act now" attitude with buyers in Today's market. Rates will not be where they are at Today a year from now. if positive movement continues with the Economy, the cost to borrow money will become higher to balance inflation.

Reason #3:

The Winter Season has always been a great time to get a "deal' in the Real Estate market. If you were Selling your home, would you want buyers coming through while you were getting ready for family and friends? Sellers that stay on the market during this time "need to sell". This allows buyers to negotiate better terms and price on homes still on the market. Also, because there will be less amount of buyers out there looking, in turn this will be less competition for you as a buyer.

If you would like a FREE buyer Consultation contact George today! (415) 336-8191

Happy Holidays!
-

Bay Area Real Estate Makes A Comeback!

Bay Area home prices have begun to rise from the depth of a 3 year slump. Homes are now selling for 3.8% more.

Prices on bank owned properties are driving the market. There was an 11% surge in home sales over $500,000. We are now seeing multiple offers and homes going for over asking price.

Inventory of homes is about 50% less than a year ago. Buyers seem to have confidence that the market has hit bottom and are taking action.


If you would like a market analysis on homes in your area please feel free to contact me and I will provide a detailed FREE report.

To watch a full report click on link! http://abclocal.go.com/kgo/video?id=6982902

Great News! $8,000 tax Credit Extended until April 2010

Today the Senate passed the extension on the $8,000 tax credit. The home buyer tax credit was due to expire in 28 days. The Senate has passed the extension until April 30th, 2010.

The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

What is new in the law?

$6,500 maxiumum credit would be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

The tax credit has fired the housing market, driving existing home sales to the highest level in over two years. Sales jumped 9.4% according to the National Association of Realtors!

How Much More Does a Home Cost Compared to 25 years ago?

So over the past 25 years we have seen the Real Estate Market go up and down like a yo-yo. But how much more does a home cost today compared to 25 years ago?

1984 Home Price of $100,000
Interest Rate at 17%
Total Monthly Payment was: $1,425.68


2009 Home Price of $500,000
Interest Rate of 5%
Total Monthly Payment: $2,684.11

A difference of $1,258.84!]

Does it seem like owning a home costs that much more today? You be the judge!

Write your thoughts....and let me know what you think.

Bay Area's Hottest & Coldest Real Estate Markets!

Below is a list of the Bay Area's Hottest & Coldest Zip Code's. Hot Zip codes are determined by the ratio of Sale Price to Asking Price.

Emeryville is actually one of the Top 10 Zip Codes in the Nation as of Today!

Home Priced Right, Good Condition, Good Location = SOLD!!!

HOT BAY AREA ZIP CODES BELOW: These are the Bay Area ZIP codes where houses sold for the highest ratio to their asking price in the third quarter.


City ZIP Ratio (Sales Price to List Price)

Emeryville 94608 105.65%
San Jose 95122 105.22
Oakland 94606 105.06
Berkeley 94703 104.78
San Lorenzo 94580 104.45


COLD BAY AREA ZIP CODES BELOW: These are the Bay Area ZIP codes where houses sold for the lowest ratio to their asking price in the third quarter.

City ZIP Ratio
Rio Vista 94571 93.47%
Napa 94558 93.45
Alamo 94507 93.07
Half Moon Bay 94019 92.94
Los Gatos/
Monte Sereno 95030 92.26

Search for home in your area at www.GeorgeLangford.com

Home Buying given you a sour taste? Watch Video and Call Me!

This was fun so I thought I would share. Fun Friday! If you feel like this or have experienced this give me a call today. Home Buying with a personal experience.

Happy House Hunting!

Buyers paying close to asking price in Today's Market?

A report was just released that home buyers are currently paying closer to listing price in August, but are still negotiating thousands in discounts. This is a look at the market from a national standpoint.

Here are the numbers:
Buyers paid $6,525 or 3% less than the asking price in August. This is down from $7,017 or 3.3% in July.

24.7% of all listed homes have had at least one listing price reduction.

So what about here in San Francisco & California?


In two California Markets buyers paid more than asking price during August. In the El Centro MSA, buyers paid 2.2% or a median $2,479, more than asking price. In the Stockton MSA, buyers paid 1.3%, or $2,515, more.

San Francisco Market:

The homes that have been sold in the past 30 days have gone for 99.47% of the listing price. In some small markets here in the city we are seeing multiple offers on properties in great condition and well priced.

So does this mean the market is in an up swing?

At this time I do not believe so, although we are seeing lower inventory which allows seller's to have the ability to negotiate more on their behalf. Buyers don't have all the options they had 6 months to a year ago. A rise in foreclosure's is projected, so this may allow more negotiating power for buyers as inventory rises again.


Any thoughts?

George

Credit Problems? You can still get a mortgage!

Worried that you can’t qualify for a home loan due to lack of credit?

Did you know that some lenders will approve your loan even if you have NO FICO SCORE?!

Yes NO FICO score. Work with your mortgage professional to gather documentation to submit “alternative credit” to the lender. This is done by simply getting letters from companies and/or individuals such as your auto insurance company, PG&E company, cell phone company, cable provider, or your landlord. Have them type a letter on a company letter head that simply states you have been a customer for at least a year, you are in good standing, you have paid “x” amount on-time for the past year (2 years is even better!) and their information for reference, Signed and dated. DONE! This will be submitted to the credit bureaus as alternative credit and added as a credit supplement. So if credit issues are stopping you from buying in this great real estate market…. Get off the fence and contact me today to guide you through the process of home ownership.

Does it cost to have a Realtor represent a Buyer?

I had a client (Buyer) the other day ask me how much do I charge for my service. So I thought that education is key and decided to write a post in regards to this topic.

Does a Realtor charge for representing a Buyer in a transaction? Yes!

The answer is yes. Commission is split between the Seller's Brokerage and Buyer's Brokerage. This is typically agreed upon when the Listing agent has the Seller sign the Listing agreement. This is an incentive to Buyer's agents to get the home being listed Sold.

So how much does it cost the Buyer? Nothing!!

The commission is strictly paid by the seller for both agents. Buyers do not pay a Fee or Commission to a brokerage representing them. It's free representation for the buyer. So remember that when you are purchasing a home you have a FREE service that is available to use. USE IT!

*If you are a buyer and a company requires you to pay them for you service do not pay them any money!*

(The above statement is true for Northern California, other area of the state and US may vary for commission terms and conditions of agents commissions: San Francisco, East Bay, South Bay, Peninsula, North Bay areas.)

Thanks again for reading and Happy House Hunting!

First Meeting with a Bank or Lender.

Buyers should always be prepared when meeting with a Lender or Bank to get pre-approved. Homes that are priced right and in great condition are starting to move quickly. Being prepared to write an offer at any time when looking for a home is a must. In order to get a pre-approval from a bank it's good to always have all your documentation ready for review. Not having the proper approval letter could cost you your dream home. So what do you bring to the appointment. Below I have examples of what a lender or bank might request to pre-aprove you. Keep in mind that every bank is different and that your Real Estate agent should call them prior to the meeting. A well prepared team is a successful one! Happy house hunting!

What to Bring to Your Loan Appointment:

* W2's and 1040 tax returns for the past two years

* Paycheck stubs covering one month

* Residence addresses – covering the past two years

* Names and addresses of each employer – covering the past two years

* Last two months’ statements for all assets (i.e. checking, savings, stocks, retirement accounts, etc.)

* Addresses of other real estate owned

* Payment for credit report and appraisal

* Photo ID

NEW Loan Program - .5% (half percent) down payment

There is NEW Loan Program available to buyers. The program only requires .5% (Half Percent) down payment. This program is utilized as two loans. The rate today (Rates are subject to change) would be 5.5% on the first loan and 8% on the second loan. No FICO score required. Full documentation of income, assists and debt are required by the lender. If you would like more information on this program contact me today! (415) 336-8191.

Pending Homes Sales on a Record Roll!

Pending Home Sales on a Record Roll

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.


My Opinion: We have seen a rise in the number of multiple offers on properties here in the city. of course every market is different. Especially here in San Francisco. We have sub markets within the San Francisco market that are divded up my neighborhoods. But with rates at an all time low, tax credit of $8,000 available to first time home buyers and the times of processing and underwritting from banks are getting faster. Does this mean a recovery of the market? The only way to measure that will be time and facts or statistcs to be released. The ONLY way to know if the time is right for you if affordability. Everyone has a different situation. If you can afford the payments on a home than you should own one.

Any thoughts?

FREE Home Buying Seminar - October 24th, 2009

Happy Belated Birthday San Francisco Rent Ordinance

On June 13the rent ordinance had it's 30th birthday. Do you think this ordinance has lived up to it potential?

To evaluate whether the Ordinance has accomplished it purposes in life, we have to go back to the beginning. The Ordinance starts out with the following:



“Tenants displaced as a result of their inability to pay increased rents must relocate but as a result of such housing shortage are unable to find decent, safe and sanitary housing at affordable rents levels. Aware of the difficulty in finding decent housing, some tenants attempt to pay requested rent increases, but as a consequence must expend less on other necessities of life. This situation has had a detrimental effect on substantial numbers of renters in the City, especially creating hardships on senior citizens, person on fixed incomes and low and moderate income households.”



“. . . a housing shortage still exist with the City and County of San Francisco and total deregulation of rents at this time would immediately lead to widespread exorbitant rents increase and recurrence of the crisis, problems and hardships . . .”


National Apartment Association for several years in a row, has identified San Francisco as one of the cities with greatest annual increases in rents. How can that be? 1978 is looking pretty good by comparison if you’re a renter.

The basic economic rule here that we need to remember is that when you have adapted such a rule and allow a restriction on rents you create a shortage of available units. When available housing does come on the market it's allows for those rents to be higher to balance for the lower rents.

In order for this ordinance to create reach exactly what it was meant to do it would have to create complete stagnation in San Francisco. Does everyone want to live in the same apartment from 22 until they die? I don't believe so, so this basic human nature eliminates the use of this ordinance. San Francisco with it's great weather, beautiful views and strong economy would not allow for this.


Your Thoughts?

3 Bedrooms, 2 Bath Silver Terrace Home Offered At $499,000

Wonderful property that shows pride of ownership. This Silver Terrace gem has been well taken care of and loved by the same owner for over 50 years. There are wood floors under carpet and wood burning fireplace in living room. There is a good sized eat in kitchen with updated granite counters & skylight. Grow your own vegetables in the back yard. Add to the mature fruit trees, hot pepper plants, herbs, tomatoes and so much more. Close to Highways. Make this your new home and schedule a viewing! Call TODAY!

What Buyers should know regarding Short Sales - PLEASE READ!

What Buyers Should Know About Short Sales

A San Francisco title company familiar with short sales estimates that only 20% of all accepted offers on short sale listings close escrow. Buyers who choose to make offers on short sales need to know that the likelihood of closing the escrow is not good and that if escrow closes the property may be in substantially different condition from when it was first viewed. This is important when buyers are expending money on inspections, appraisals, etc., or when buyers need to have occupancy by a certain date. Following is a brief description of the short sale process and a list of some of the pitfalls that can occur in a short sale.

What is a short sale? A short sale occurs when a seller owes more on their home than it is worth. As an example:

Existing Financing Negotiated Short Sale

Current market value: $600,000 $600,000
First loan: -$ 500,000 Reduced to -$450,000
Second Loan -$ 150,000 Reduced to -$110,000
Cost of sale (Commission, etc) -$ 40,000 Commission -$ 40,000
Amount Due from Seller at Close of Escrow ($ 90,000) -- 0 --

Since most sellers in this situation are unable or unwilling to bring money to the table at close of escrow the only way they can ‘sell’ the property is if the lenders agree to reduce the amounts owed them. In effect, the owners ‘own’ title to the home but the lenders have all the equity. The owners can only sign an offer to sell the home subject to the lenders agreeing to take less on their payoffs.

Lenders control the deal. Lenders will only reduce the principal amount they are owed when they believe that there is no alternative. Sellers must show hardship and lenders must be convinced that the offers received represent maximum sales price for the property. Even when the lenders have agreed to reduce the loan balances they often reserve the right to ‘change their mind’ and occasionally they do at the last minute. Changes of this kind can result in the failure of the transaction to close or the buyers’ having to bring additional funds to close the escrow.

Lenders move slowly. Lenders do not move quickly on short sales and when there is more than one lender with a lien on the property then it is necessary to negotiate with each lender and for the lenders to cooperate with each other. It can take four or five months for a lender to approve a buyer’s offer on a property in which the lender is agreeing to modify the principal balance of the loan. Often, even after the lender has approved an offer it will reserve the right to accept a better offer should one come in.

Short sale offers do not stop the foreclosure process. If the seller has not been making payments on the loan, the lender has likely started foreclosure proceedings. Most lenders have different departments for negotiating short sales and for processing foreclosures and these departments do not necessarily communicate with one another. It is possible that a property may be foreclosed upon while a short sale is being negotiated and that the buyer may be unaware that the ownership of the property has changed. A purchase agreement for a short sale does not translate into a purchase agreement for a bank owned property and it is unlikely that the buyers will be able to purchase the property directly from the lender.

Short sales are “as is”. Most short sale purchases are ‘as is’. Buyers are generally allowed to have
inspections but lenders rarely make concessions for repairs or pay for required retrofit work or other costs of sale. These costs frequently must be borne by the purchaser.

Seller’s liability may be limited by seller’s ability to pay. In a normal buyer/seller transaction if the seller does not comply with the contract the buyer can pursue the seller for damages. Because the seller in a short sale is not receiving any proceeds from the sale and usually has no other assets there is little a buyer can do to ensure the seller’s compliance with the contract as the seller may be “judgment–proof”. There is no way to guarantee that the seller will convey the property in the condition in which the buyer viewed it. Frequently all appliances and fixtures and even sometimes the copper plumbing are removed from the property; sometimes the interior has been trashed. The seller may have rented the property to tenants while in escrow and kept the rent and security deposit, leaving the buyer with a tenant occupied property. Sometimes the seller refuses to move after close of escrow and claims occupancy rights as a tenant. Sometimes the seller decides that it is in his best interest to allow the property to go to foreclosure and refuses to sign the closing papers, essentially killing the deal. Additionally, while the seller is required to fill out the Transfer Disclosure Statement in a short sale transaction, it is important to understand that a buyer has little redress against a seller who has made inaccurate or incomplete disclosures.

Foreclosure: Terms & Processes

Type Description

Short Sale : When there are not enough proceeds to close escrow per the contract terms.

REO – Real Estate Owned : The foreclosure process is completed and the property is Real Estate Owned (REO)
generally by the lender.

Sold : as per normal real estate transaction with some disclosure exceptions.

Notice of Default (NOD): Letter sent to party as reminder loan has not been paid; may include a grace period
and penalties for failing to cure the default.

Lien : holder may file a Notice of Default (NOD) against the property. Timing is days 1-90.

Notice of Sale (NOS): The next 30 days after the NOD. Days 91-120.

SD – Sale Day: Day 121.

When the property is “SOLD” or auctioned on the “Steps of City Hall”. Redemption Period Right of mortgagor to property by paying debt before sale at foreclosure; right of owner to reclaim property after its foreclosure sale to settle claims for unpaid taxes. Generally up to 5 days before the sale date by bringing loan current plus all charges for owner occupied 1-4 dwellings. Up to 90th day on other property. Civil Code Section §1695 Civil Code Section §1695 mandates various duties of the Buyer and Seller.

Note: Seller gets 5 days notice and can rescind accepted offer within this period.

Example – “within 5 days after acceptance”. Must be in state mandated form. Civil Code Section §1695 is used when it cannot be ascertained whether the property is to be owner occupied or not. Use the CAR contract form “Notice of
Default Purchase Agreement” (NODPA). This form includes the “Declaration and Proof of Real Estate License” as well as the notice required by Civil Code Section §1695 (page 11 of NODPA – rev. 4/08). Civil Code Section §1695 is issued on any property where a Notice of Default (NOD) has been filed including short sales. An equity purchaser (person who acquires title to any residence in foreclosure) is exempted from Civil Code Section §1695 if the property is to be a personal residence. Zephyr highly recommends Civil Code Section §1695 be used in all transactions whether exceptions apply or not when a property has a filed Notice of Default (NOD).




Issues in the foreclosures process:
1. How does a commission get paid?
2. How do the Buyers get financing?
3. Do I get a full title policy?
4. How do we get fire/liability insurance?
5. How and/or can we do an inspection?
6. How do we get the owner and/or tenant(s) out?
7. How do I get the security deposits for the tenant?
8. Are leases valid?
9. Why in the heck did I ever think about doing foreclosures???

No loans for condos reported.....FALSE! Please read

Today on SFGate.com the following story was posted in regards to financing in the condo sector of the housing market. There are loans available for condos and with as little as 3.5% down payment. Below are a couple points I wanted to point out in regards to this article.

1) New construction is very different lending and that was a problem in Mr. Hong did not close until July. The unit was not finished at that time
2) The ratio of owners that actually live in the complex vs. renters has always been a determination when buying a condo and is nothing new. Even when times were going great we still had to watch that ratio in certain complex's.


San Francisco Specific: Always remember that in San Francisco we have condo and TIC (Tenancy in Common). Condos will have less of a downpayment than a TIC. TIC will require at least 20% down.

There ARE loans out there for all. If you have a specific circumstance please feel free to contact me at (415) 336-8191 or email at georgelangford@zephyrsf.com.

Condo buyers find it tough to get mortgages

Carolyn Said, Chronicle Staff Writer

Back in September, when Tae Hong signed a contract to buy a condominium in Oakland's new Pacific Cannery Lofts, he expected to move in quickly. With a 20 percent down payment, excellent credit and good employment as an...

Read Full Story

Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/c/a/2009/08/04/BUCT190GMM.DTL#ixzz0NKEdyLI8

New Rule in Protecting Home Loans Effective July 30th

Example of Good Faith Estimate Disclosure Click Here

The Federal Reserve Board on Thursday approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA).

The MDIA seeks to ensure that consumers receive cost disclosures earlier in the mortgage process. In several respects, the MDIA is substantially similar to final rules issued by the Board in July 2008. However, the MDIA also broadens and adds to those regulatory requirements. The final rule largely follows a proposal issued by the Board in December 2008. Under the MDIA, creditors must comply with the new provisions on July 30, 2009. The Board's implementing regulations apply to dwelling-secured consumer loans for which a creditor receives an application on or after July 30, 2009.

The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history. These requirements are consistent with the Board's July 2008 final rule, which applied to loans secured by a consumer's principal dwelling. The MDIA broadens this requirement by also requiring early disclosures for loans secured by dwellings other than the consumer's principal dwelling, such as a second home.

In addition, the rules would implement the MDIA's requirements that:

• Creditors wait seven business days after they provide the early disclosures before closing the loan; and
• Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance.

The rules would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

The notice that will be published in the Federal Register is attached. Publication is expected to occur soon.

Eureka Valley - Dolores Heights Single Family & Condos/ TIC/ Co-op Housing Report

Below please find the current housing numbers for Eureka Valley - Dolores Heights Area. Please note this information is pulled from the Multiple Listing Service. The validity of this information is based solely on the providers. Zephyr Real Estate , George Langford deem this information to be reliable but take no legal responsibility.

Eureka Valley - Dolores Heights
May 2009- July 2009


Single Family Homes

Active - 18
Pending - 2
Sold - 14
Avg Listing Price - $1,549,000
Avg Sq. Ft - 2,112
Avg Days on Market - 73
Avg. Sale Price - $1,469,643

Condo/Coop/TIC/Loft

Active - 26
Pending - 3
Sold - 15
Avg Listing Price - $824,114
Avg Sq. Ft - 1,356
Avg Days on Market - 72
Avg. Sale Price - $747,167

For information in an area other than the one stated above, contact me and I will provide a detailed Report for an area of your choice.

11% Increase for June Home Sales - GREAT NEWS!

Today the U.S. Department of Housing and Urban Development released a report for June Homes sales. newly constructed single-family homes spiked 11%. However sales are still 21% less than last year and prices are still continuing to drop.

What does this all mean?

This is a good indicator that the recession is bottoming out. We have to get all the inventory currently on the market into Buyers hands. Once we have done this, new construction will resume again which in turn will create more jobs and help to boost the economy into a more positive territory.

All this news is wonderful, although we have to continue to watch and see if this is caused by the tax credit. The tax credit at this time is set to go away in December.

10 Dos and Don'ts for Selling a Home

This market offers vast opportunities for home owners who have equity and are in need of a larger home to sell and make it a reality. Below is a list of Dos and Don'ts that can help you prepare your home for sale.

5 Dos

Consult a real estate agent (George Lanford) before prepping your home for the market. If you just start making changes, you may be focusing on things that are not as important as others. If you spend $1 you want to get that dollar back or maybe even more.

Make sure an agent (George) will have a strong online presence. The majority of house hunters begin their search on the Internet and then narrow down which ones to actually visit. 80% of home buyers start on the internet and making your home present on the internet is the key to creating exposure.... More Exposure = Greater Selling Price!! $$$$$$

Be certain your agent is knowledgeable about the area. He or she should have a good understanding of the local community, schools, recreation and politics to share with potential buyers.

Feature professional color photos of your home. This is as important for the Internet listing as it is for the printed brochures. The brochure should also include a detailed floor plan. Ask your agent to take local pictures of shops & Parks to highlight the area you live.

Have a clear understanding of the selling process. Familiarize yourself with the typical marketing time in your area, what to expect with a home inspection and any hot-button items that could be of concern. Also, be familiar with the contract process, attorney review, mortgage contingency, deposit escrows and closing time frames. In San Francisco or the Bay Area there are different City requirements that need to be completed when selling a home. For example: San Francisco is completely different than San Bruno or even Oakland.

5 Dont's

Don't just go with the agent who tells you your house is worth the most. Conduct some research to verify the pricing, and consider looking at the competition.

Don't just assume that the agent who sold you your house will be a good fit on the selling side. Interview more than one person to find out what each has to offer. There are agents that work directly with Buyers and directly with Sellers. Know what exact areas the agent you are using specializes in.

Don't ignore offers that don't meet your asking price. By not countering even low offers, you could easily discourage what may ultimately be a good offer.

Don't assume that your agent works full-time. Many do not, so be sure to ask.

Don't just accept everything your agent says. Get it in writing. Make sure he or she offers a written marketing plan with which you agree. Also, understand that once you sign, you are locked in to a legal contract for the term agreed upon.

** Most importantly don't be afraid to get creative. Your agent should not be doing the "norm" in this not so "normal" market. Contact me to hear about my selling techniques that are different for Today's market.***

Multiple Offers Up In June Vs May- 2009

Redfin announced today that 80% of offers this month so far have been made on properties with multiple offers. That is up from 69% last month. This was reported on the website SFGate.com.

This is a good indication as to the market, but we also have to realize that this is only what Refin is reporting. We have not had any agency like NAR (National Association of Realtors), or CAR (California Association of Realtors) report any stats like this at the moment.

Personal Note: I would agree that in the areas that they are reporting (East Bay & Central Valley) we have seen an up turn in the number of homes being sold. On the other hand though this is nothing like 2006-2007 when we were seeing multiple offers going 10-20% over the asking price.

San Francisco has seen an upward movement in the amount of properties that are currently being sold. We are even seeing on homes that are priced correctly and show in excellent condition are moving and even getting multiple offers.

Over all Market: Now is a wonderful time to buy. We have loan products out there and available to everyone. We are still able to finance 3.5% down payment, credit scores down to 580, closiong costs negotiated to be paid by seller and stated income for self employed is available. If you can afford to buy now and it makes sense financially.....Call me Today!

** Blog post to follow with more information on Self Employed Stated Loans now Available**


Article Referenced in above remarks: http://www.sfgate.com/cgi-bin/blogs/ontheblock/detail?entry_id=44120&tsp=1