McGuire Neighbors

Farmer's Market

abuehlmann@mcguire.com (Alex Buehlmann) — Sun, 11 Jan 2009 20:20:58 -0800

Due to popular demand, the Divisadero Farmer’s Market is now a year-round market. It’s a great shopping experience where you can sample the goods, develop a relationship with the grower, learn about unique food varieties and cooking tips, and greet your neighbor. The market is located on Grove Street at Divisadero, and is open every Sunday from 10:00 am – 2:00 pm.

The end of the world as we know it

adaro@mcguire.com (Aman Daro) — Wed, 04 Feb 2009 11:10:46 -0800

A true story: every time a high school friend took a test in French class, she would swear she flunked. Instead, she got straight A’s. One day, worrying herself into a tizzy, she finally flunked her test. Her mother’s response? “Finally! You achieved what you set out to do.”

Things aren’t so different in the San Francisco real estate market. After the burst of the dot-com bubble, pessimistic buyers have expected prices in the city would never recover. But almost immediately, prices continued to rise, reaching historic highs year after year.

At long last, at the end of 2008, we achieved what we set out to do: In December, average prices were down 19% year over year. You might say we’ve created our own reality.

But let us not forget that this is not the end of the world. Those who purchased 5 years prior are still at an average of 18% appreciation. And 13 years prior? 178%.

As we have seen many times in our past, the San Francisco market is cyclical. So if we can, let’s be patient. The market has done right by us in the past – it should do right by us in the future.

Appreciation_SF_Q408.pdf

Luxury Portfolio Design

prodgers@mcguire.com (Peter Rodgers) — Wed, 04 Feb 2009 11:14:18 -0800

Nearly 100 McGuire Real Estate agents and special guests experienced a rich display of luxury real estate marketing intelligence and tools presented by one of the industry’s leading experts, Paul Boomsma, President of Luxury Portfolio Fine Property Collection, on October 31, 2008, at the Golden Gate Club, in the Presidio.

In addition to revealing the latest tools available to McGuire agents, Paul highlighted the extraordinary benefits of building community among luxury marketing partners such as interior designers, architects, art consultants and virtually any connection that helps make a house a home.

Award-winning Marin-based interior designer Jean Larette spoke about her experience connecting with talented luxury market professionals. One hundred percent of Jean’s business comes from client and/or partner referrals. Both she and Boomsma emphasized the importance of understanding the character and quality of design that is present in luxury homes.

Imagine the wallpaper in a home was hand-painted by a famous person, at a cost upwards of $10,000. Like this one that Paul exposed, there are stories that help uncover the essence of homes if one looks deeper.

The possibilities for real estate agents, home buying and selling clients, and design professionals to connect at a deeper level and generate a more rewarding experience is profound.

Managing into the Abyss

cmoore@mcguire.com (Charles Moore) — Wed, 04 Feb 2009 11:23:06 -0800

Economic upheaval. Leery buyers. Hesitant sellers. Confusion abounds.

So here’s the obvious: We’re just as concerned about the state of the local real estate market as you. And no matter what the pundits say, none of us know if things are really as bad as the reports will have us believe. I will say that after I read the WSJ or The Economist I am sometimes more confused than before!

So that just leaves us with the present, and choosing to believe in a future, good or bad. At McGuire, we’ve decided to take a hard, realistic, and often scary look at the present. But as for the future? We have dared to be cautiously optimistic.

This is because of what history has taught us. We know the San Francisco Bay Area real estate market moves up and down in what are typically 5-year cycles. We know the market has core strengths, like limited size, relatively low unemployment, and a destination for global thought leaders. We personally know owners who purchased less than 10 years ago and, even in today’s market, are still looking at over 100% appreciation.

Will these history lessons repeat? We sure hope so. When? It’s anybody’s guess. But here’s my litmus test: if you only had $100,000 to invest, where would you put your money? Stocks? Under your mattress? Other commodities like gold? Or real estate? Heck, even my blue chip stocks are way down, and to compound my problem, I don’t understand them nor do I have any control of their future. There’s not a thing I can do to change their performance.

So “stocks” are out for me. my answer is real estate. I understand it, I can see it, kick it, alter its “bricks & mortar,” etc. Its ultimate performance can be affected by me. I am more in control of its destiny.

In the meantime, we hope you gather your own information and form your own “guesstimate” that makes you comfortable. Because really, that’s all any of us have.

Southern Marin Real Estate Market Update

hpay@mcguire.com (Heidi Pay) — Wed, 04 Feb 2009 11:22:34 -0800

The Southern Marin real estate market includes homes sold in Sausalito, Mill Valley, Tiburon and Belvedere. During the month of December of 2008, only 18 homes in these areas sold. The median price was $1,300,000, down 11% from last December. Sellers are feeling the effect of increased inventory with 45% more homes on the market in those towns.

With stiff competition and increased supply, the listing prices are coming down with the median list price dropping over 20% from last year from $2,262,500 to $1,799,000 – a $463,000 difference. However, this difference in list price does not necessarily represent diminished value.

In 2008, a median home in southern Marin sold for $721/sq. ft., compared to $730 the previous year, a 1% decrease in square foot price. Square footage pricing in averages assists in determining if there is true value erosion, because a decline in average or median price may reflect increased activity in more affordable homes.

Caution should be exercised in computing valuation on Marin properties because we have very unique homes and that pricing method is most applicable to locations with extensive subdivisions, unlike Marin.

While substantially more homes are on the market – 224 compared to 154 last December – there is still activity where buyers are finding value from anxious sellers with realistic pricing. More units were in contract last month than the previous year – a 17% increase – which may be in part due to the outstanding interest rates that buyers with solid credit and documented income are able to find.

This market offers an excellent opportunity to transition up to a more expensive home since a reduction in value is a greater figure on a more expensive home. Combined with low fixed interest rates and a reduced tax basis, those in a position to buy are starting to take advantage of the opportunities to purchase homes in areas they previously could not afford.

Marketing Real Estate using Social Networking (web 2.0)

kdara@mcguire.com (Ken Dara) — Wed, 04 Feb 2009 11:29:32 -0800

I remember in the early 90’s when cell phones were just becoming popular, and I was speaking to a group of agents on how this new technology was going to change their lives. They all thought I was crazy.

Moreover, I was teaching agents how to be more productive using a computer in their business. I would say if you can’t afford the computer go out and buy a genuine nylon computer case and stick your MLS book in there so you look automated.

Flash to 2009 and a good percentage of agents are strapped to their smart phones and laptops working everywhere and anywhere. We’ve gone from marketing locally to marketing globally using the web. And now a new era is emerging: social networking. Sites like Facebook, ActiveRain, Twitter, LinkedIn are changing how we market properties and lead generate for new business.

Here is a post that I really liked and can at least educate you on how to get started.

Look me up on Facebook!

Sellers Under Siege

rbrisbane@mcguire.com (Robert Brisbane) — Wed, 04 Feb 2009 11:31:00 -0800

There are buyers out there — but they are waiting. They are waiting for sellers to give in and lower both their prices and their expectations.

It reminds me of hordes making a siege on a castle during medieval times. The whole idea behind the siege was to wait out the castle dwellers until they surrendered, starved or came out to fight. The mindset of value-conscious buyers seems to be just to wait until sellers waive the white flag. The white flag in this case is a lowered listing price.

So what does the seller do? Just surrender.

More and more this seems to be the answer. The best strategy may be to surrender earlier than later while better terms can still be negotiated. If a seller overprices the market and slowly reduces the asking price through multiple, modest price reductions, then the result appears to be a disappointingly low sales price.

Buyers today are content to wait. If a seller prices low in the beginning of the sales process then the buyers are called to action by the perceived value and often times multiple offers will result (even in today’s market). The multiple offer scenario drives up the purchase price, and this ultimately is what every seller wants.

Breaking Old Habits updated 4.15.09

cmoore@mcguire.com (Charles Moore) — Wed, 08 Apr 2009 06:40:17 -0700

Most veteran buyers and sellers have been through 2 or 3 recessions, but we’ve never seen anything like this global economic meltdown before. So here we are in the midst of something that we can’t quite quantify. What we don’t understand, we fear.

In most parts of The Bay Area prices have dropped to 2002 levels or by 25% of the previous “high water mark.” Veteran sellers and buyers have experienced V-shaped recessions, and most hope that the recovery will be the same this time around as well. But nobody knows for sure. It seems that most economists predict the forthcoming recovery to be very slow and mild; unlike the V-shaped recessions this, they say, will be more L-shaped. If the bottom of the real estate market drops 30% from the high water mark, it will take 10 years to recover previous value at 3% a year. So the “let’s wait this one out” strategy won’t work this time.

What will? My take is this: as a seller, if you have to act within the next year or so but are waiting for the swift return of your property’s value, you may be in for a big disappointment. The silver lining may be this: When you sell for less than you had hoped, you should be able to bargain for a better deal on the buy side. The “perceived loss of value” is actually less when you’re able to buy “right” to compensate.

Just musing….

Added Post Script 4.15.09, SF Chronicle, Business section Forecaster (Economist Ken Rosen) sees woes in State, US: “California ensnared in a ‘great recession’ that will persist until the middle of next year, followed by a long and anemic recovery….”
My interruptation of this is that the ’recovery will be low & slow much like an “L” shaped curve.

Is the Bottom in Sight?

agavzer@mcguire.com (Adam Gavzer) — Thu, 09 Apr 2009 07:29:58 -0700

Everywhere you look these days, someone is spouting off about how bad the real estate market is. News articles trumpet how foreclosures are still rising, that there is a “shadow foreclosure rate” and that prices are in free fall.

While some of this is certainly true, what is also true is that it is impossible to predict the true bottom of the market. And which market bottom are you trying to predict? In the Bay Area, as in various locations throughout the nation, there are a significant amount of “micro-markets” that are more difficult to track. When such sources as the Case-Schiller report provides their data, they refer to the “Bay Area,” but which part of the Bay Area? Their data encompasses a wide range of cities, neighborhoods, locations and micro-markets. They are all lumped into one region so the information can be misleading.

In the neighborhoods that I specialize, I am noticing a great deal of traffic at my open houses, but also see that most buyers are wary of submitting offers, fearing that the market may continue downward in the coming months. I have begun to detect a sense that buyers are hoping that they do not like a property, since then they won’t have to make a decision. If they like it, then I see this “deer in the headlights” look come over their faces: “Now what?” Then they usually ask me to let them know if any other offer comes in. While I think this is a silly thing to wait for, since it will put them into competition for the property, I do understand the psychology behind the question. They want validation that the property they like so much is also desirable to others. If this is the case, then they feel more confident in submitting an offer. But being in competition with another buyer removes any edge they may have had in negotiating with a seller, so I am left wondering why they don’t just submit an offer where they perceive the value and see what the seller says? Most sellers have come to terms with the reality of the current market, and if they are selling now, they understand that there will most likely be a negotiation with the buyer and there will have to be some give and take.

We will not know when we have hit the bottom of the market until it is already passed, so the savvy buyer is keeping an eye on the available inventory and working closely with their agent to track properties that appeal to them.

The amount of traffic I am seeing at my open houses indicates a great deal of pent-up demand on the part of buyers, so once everyone gains the perception that the bottom has come, then I believe we are going to see a rush to purchase, and many qualified buyers may very well miss out on this great opportunity.

Fortune Telling

cmoore@mcguire.com (Charles Moore) — Thu, 09 Apr 2009 17:26:46 -0700

So our new web 2.0 site (www.mcguire.com) has been talked about on other blog sites. I got a kick out of one blogger who says the following about it:

"What does that graph tell us that we didn’t already know? That real estate had a long run-up and that it has recently declined? Wow, McGuire, thanks for the news flash!

What it doesn’t give us is any insight into whether we can expect real appreciation in the next 5 -10 years (i.e. whether we’ve hit a bottom and it’s actually a good time to buy now)."

Its gotta be fun to blog anonymously because you can say really esoteric things like this.

So you want a forecast do you? Well OK then! Here goes: The Bay Area real estate recovery depends largely on how The Bay Area buyers and sellers react to the Federal stimulus package. Will they like that mortgage interest deductibility on primary residences has been lowered? I think not. How will they like larger capital gains taxes? Not! Both the West and East Coasts are not stimulated by The current stimulus package. California and New York are critical to the national recovery. Combined, they are responsible for a huge portion of the national GDP. Ultimately, this will become known to those in Washington. When? When stagnation continues in spite of their “stimulus” package.

So it really doesn’t matter that the economists don’t really know how to accurately predict our future either. No one’s seen this kind of global trauma on the financial systems before, so they’re guessing too. (Although they tend to agree that this recovery will be at a mild pace with slow growth of, perhaps, 2 to 3% appreciation per year.)

But alas, I have a crystal ball so I can tell you, Mr. Blogger, what the future holds. So here it is: Buckle up. It’s going to get a lot bumpier before it gets better. Plan on hard times for the next six months and, maybe, into the first half of 2010. By then, The Federal stimulus package will have something ‘stimulating’ to jettison the markets on both coasts.

When to buy, you ask? Where’s the bottom? IMO the answer is this: The affluent areas of The Bay Area haven’t found their bottom prices yet. I’ll tell you this: If you’re in this for the long haul (5 years or more), the best time to buy is NOW. It is better to act now than to be caught once again “bottom feeding” as a side-liner who “shoulda, coulda, woulda bought if I only knew.”

So there it is, my advice. In the interest of transparency, for all to see.

New Frontier LANGUAGE

cmoore@mcguire.com (Charles Moore) — Fri, 10 Apr 2009 09:43:51 -0700

It seems every generation develops new expressions or a reuse of an old English word. Growing up in the 1960’s, common expressions were: COOL, OUT OF SIGHT, GROOVY MAN.

My son, who’s 17, has taken up the newest evolution of our language by saying “that is really sick,” meaning “that is really hot or cool.” I’ve also noticed use of the phrase “SHUT UP!!!” I take this to mean “no way” or “really?”, but I may just be optimistic.

Similarly, language changes within the business community. Now we’re in the Great Recession era, I’ve noticed new phrases emerging:

There’s “burn rate,” referring to the rate at which one is using their cash reserves. How about “upside down” or “under water,” referring to debt over value? Then there’s “roll up” or “fold-in” when referring to acquiring a business opportunity for little or no cash.

What about “short sale”..? Did you ever think that expression would become so prevelent?

I’m hearing a lot more about “roll-ups” and “fold-ins” than is comfortable. I just hope I’m never at the wrong end of one. I don’t like quitting, so I’ll have to find a new hip word for “never give up!”

Anyone else heard any interesting expressions?

Farmers’ Market Comes to UCSF Mission Bay Campus

bwilliams@mcguire.com (Bill Williams) — Tue, 05 May 2009 12:01:44 -0700

Get your fresh, seasonal, and local fruit at the new Farmers’ Market at the UCSF Mission Bay campus.

Vendors will be selling their organic and non-organic fruits, vegetables, nuts, flowers, and more on the Plaza at Mission Bay Housing on Gene Friend Way between 3rd and 4th Streets.

The market at Mission Bay will be held every Wednesday, from April 22 to November 25, 2009, from 10:00 am to 3:00 pm. This weekly event is a partnership between UCSF Campus Life Services Retail and Pacific Coast Farmers’ Market Association.

See more photos from RhondaWinter at Flicker

Public parking is available at the 1360 3rd Street Public Parking Garage, located east of the Plaza. Purchase $5 or more at the market, and pay just $1.25 for the first two hours. Visit the market manager’s table to validate your parking ticket. The UCSF Mission Bay campus is served by the Muni T-Third Street line, which stops at the UCSF Mission Bay Station, located on Third Street near 16th Street. This applies for both north- and southbound travel; going downtown, or out to San Francisco’s southeast neighborhoods.

- From UCSF Campus Life Services

Have we hit bottom?

adaro@ubayp.com (Aman Daro) — Mon, 13 Apr 2009 17:04:24 -0700

Have we hit bottom? It’s the $64,000 question, and no one really knows the answer, no matter how sure they are.

But the Wall Street Journal offers some intriguing statistics for the argument we hit bottom in February.

What do you think?

See video here.

Got Religion?

cmoore@mcguire.com (Charles Moore) — Tue, 14 Apr 2009 15:30:17 -0700

Easter service is a tradition for our family, but this year it really felt special. Why? The minister’s message was about renewal, hope, attitude and endurance.

Church should be about hearing the “word” with absolute focus, but all I could think about was the relentless pounding real estaters are taking in these challenging times. It’s so darn tough out there, I thought, and I’m dead tired of this recession. It’s a demon to be reckoned with, and it is our current reality, but we don’t have to submit to it or like it.

And maybe that’s where religion comes in. We must believe that we will find our way back to prosperity, and we must make a herculean effort to stay positive in the face of all this uncertainty. Absolute faith and trust in the long-term value of real estate is necessary to avoid fear of action — and the fear of transacting.

So this I believe: that time and over time. real estate will out perform any other investment. Period. I have faith in real estate. This recessionary cycle will end and those that have acquired real estate as a long-term investment will be fine.

History tells us this. Investing in real estate will be rewarded. It’s only a matter of time.

When we look back upon this era we undoubtedly will see clearly that it was chalk full of opportunity. But it really is up to us….

Competitive Bidding in This Market?

jdavis@mcguire.com (Jennifer Davis) — Mon, 20 Apr 2009 10:23:27 -0700

I have been working with a buyer for the past 6 months who wants to upgrade from a condo to a single family home. We all are aware the market has softened and the time is right to make a move.

My client finally found the home of her dreams last month but felt the market had not hit bottom and wanted to wait things out — see if the Sellers would drop their price. Sure enough, another buyer thought this home was their dream home too and made an offer that was accepted immediately. Surprised and disappointed, my client continued her search.

The next dream home surfaced just a week later. The listing agent set an ‘offer date’! (what year is this – 2005?) and would not entertain offers until there had been 2 Sunday open houses. The offer date arrived. Three offers (including ours) were presented. The offer that was accepted was head and shoulders above our offer, according to the listing agent. The sellers didn’t even bother to issue a counter. The belief was it is best to accept the top offer than to take their chances in issuing a counter (what if the buyer went away? This market is too fragile to risk it, they felt).

I’ve also seen two single family homes (fixers!) go into contract in under 10 days.

I know we are in a softer market, but it is not a market that can be generalized. The nicer properties, priced well, will go alarmingly fast. My perspective is why wait? If you see a property that fits your needs, write your best offer now. Many times, the first offer in is the best offer. Sellers know that. But even if a seller does not know that, an agent representing you knows that.

My 2 cents.

Realtor "Survival" Reality Show

cmoore@mcguire.com (Charles Moore) — Tue, 21 Apr 2009 10:07:47 -0700

If we were producers for a new TV Survivor reality show about our current luxury real estate market it would probably go something like this:

We’d create of tough environment within which to survive. We’d set a threshold of $2 million+ as “luxury housing.”

We’d present the following scenario about the market, followed by a “survive this” challenge of some sort.

Sales volume is down 66% YOY Q1 2008 – 2009.
Average days of market is up 67%, averaging 88 days.
Homes are selling below list price, a drop averaging -6.3%.
No Bay Area region is performing better than the other, but The Peninsula market volume is down 73%.
In four of the past six quarters, prices have declined.
Consumer confidence is near record lows.
Many sellers of luxury homes are taking the “wait it out” strategy, leading to stagnation of the market.

Now the challenge: You’re a real estate professional, sole earner, accustomed to earning a high annual income. You must not only survive this market but, in order to win, you must excell by doing whatever is legal, moral and ethical to reach your goal.

So here it is, ladies and gentlemen, fellow competitors. What would you do?

Almost a Hearst Castle in Sausalito

lsalmon@mcguire.com (Lise Salmon) — Wed, 22 Apr 2009 08:43:23 -0700

Did you know we almost had our very own Hearst Castle in Sausalito?

In April of 1890, a young William Randolph Hearst began constructing a castle on a Sausalito hillside overlooking the southern end of Bridgeway (called Water Street back then). Hearst dreamed of building a grand home, filled with art like the palaces he saw in Europe with his mother as a child.

Despite his wealth and status, the residents of Sausalito gave him a cold shoulder and did not invite him to be a member of the local yacht club. This snub might have stemmed from the fact that Hearst lived openly with his mistress.

No worries. He stopped work on the would-be castle and decided to build on a lovely hilltop above San Simeon. The rest is history, as they say.

And, yes! The remarkable Julia Morgan was the architect for the proposed palace in Sausalito.

You can see her elevation drawing of this project. For additional information, visit the Marin Historical Archive.

Julia Morgan with William Randolph Hearst, making a dream come true.

Eating Crow

ccummins@mcguire.com (Cynthia Cummins) — Wed, 22 Apr 2009 20:54:15 -0700

So, I’m holding open a house on one of those all-too-rare sunny hot San Francisco Sundays. The house has a gorgeous garden. All the favorite Realtors’ adjectives apply: incredible, amazing, unparalleled, stunning, spectacular, unrivaled, and so on.

There are Meyer lemons and vining roses. There are roses and lavender. There are trees shimmering in the soft, warm breeze. And in the center is a bird bath where tiny yellow songbirds are splashing joyfully. Mother Nature herself is helping to stage this beautiful home!

Into this urban idyll flaps a gianormous black crow with — get this — a whole cupcake in its beak, purloined from a kid birthday two fences over. And BAM! He (or she) bombs it right into the birdbath. Tweeties scatter. The cupcake disintegrates upon impact, forming a scummy soup with a ridged wrapper floating on top.

So much for Staging by Mother Nature. And guess who gets to clean it up?

Getting with the program

mrobertson@mcguire.com (Michael Robertson) — Fri, 24 Apr 2009 12:08:55 -0700

So I am having dinner with my wife and some good friends, and my wife tells our friends that I am stuck in the 80’s by the way I dress and my ability (or lack there of) to use the Internet. So what happened after that was she bought me a new pair of jeans for a price that I could have purchased five pairs of Levi’s 501 for, and of course I am now trying the newest and greats thing for McGuire.com, Blogging. I think this is a great tool to help buyers and sellers connect with their city, San Francisco, and what’s happening in the real estate market.

I know that there are others out there like me that are slowly progressing into the new century, that is nine years old, and I look forward to making this journey with you.

Time Traveling

mteixeira@mcguire.com (Mary Ann Teixeira) — Mon, 27 Apr 2009 12:31:13 -0700

Time travel back to 1956? What a refreshing jolt of optimism!

A client and I spent yesterday morning in the rolling highlands of San Mateo touring beautifully restored Eichlers. These fabulous open-plan homes create unique environments blending indoor-outdoor spaces, simples lines, high ceilings, and walls of glass. You can just FEEL the excitement, optimism, and promise of post-war America! (Think: George Jetson and Tomorrow Land).

In response to housing demand in the post-war era of the early 1950’s, Joeseph Eichler constructed neighborhoods of affordable, modern, open-spaced contemporary homes in various peninsula neighborhoods. The Eichler Home Tour 2009 of San Mateo Highlands opened nine of these restored beauties to public view.

Proceeds for the annual tour go towards support of the local Highlands Elementary School. (Could you possibly think of a better cause)? AND, many of the home have been restored with the use of green practices, and environmentally sound building materials.

I might just strap on my “jetpack” and fly up there for a second visit today: www.EichlerHomeTour.com.

Stolen Staging

ccummins@mcguire.com (Cynthia Cummins) — Mon, 27 Apr 2009 12:34:25 -0700

Who did it? Who?

Who pocketed that dainty round bar of soap – still in its pleated paper wrapper? I’ll admit it was pretty as a piece of candy. That’s why I put it there: in the clean white soap dish, next to the glass of cotton balls, beside the fluffy white towels, atop the shiny marble counter top, in my master bathroom.

Twenty-plus years of doing open houses and never has a client reported a theft. Then today, in my own home, in my own bathroom! A kleptomaniac strikes.

They didn’t take the prescription drugs or the jewelry or the painted decorative box or the cell-phone charger tucked hurriedly in a drawer next to the toothpaste. Only that cute cake of soap.

Whoever you are: Bring me a full-price offer on the house and all is forgiven!

Spotted Owls in Mill Valley

lsalmon@mcguire.com (Lise Salmon) — Tue, 28 Apr 2009 08:54:20 -0700

The majestic Spotted Owl is one of our country’s most endangered species. These stunning owls, with white mottled feathers on their chest, have declined in number by one third since the 1990’s. Yet, here in Marin, we have one of the richest populations of Spotted Owls located in the southern limit of its range.

Recently, the Marin County Board of Supervisors awarded a contract to the Pt. Reyes Bird Observatory Conservation Science to monitor Spotted Owls in Marin.

Typically, Spotted Owls roost in damp, old-growth forests, on northern-facing slopes. My daughter & I recently had the thrill of seeing a Spotted Owl on the trail off Tartan Road, Mill Valley, as the trail heads around the hillside toward the top of Glen Drive (just below the Fire Road). The owl was perfectly camouflaged and motionless in the still of the late afternoon. What an incredibly beautiful animal to see!

Multiple Offers in the East Bay

hsittig@mcguire.com (Heather Sittig) — Wed, 29 Apr 2009 14:44:07 -0700

I am stunned to report that the real estate market in the East Bay has started performing like the good old days. Recent activity from the past week includes:

3 offers on our Lake Merrit/Adams Point condo listing, priced at $215,000

2 offers on a house I wrote on in Moraga, priced at $910,000

5 offers on a house Hugh wrote on in the Glenview neighborhood of Oakland, priced at $699,000.

8 offers on a property I showed in the Glenview, priced at $499,000.

6 offers on a property I showed in Pleasant Hill, priced at $499,000.

2 offers on a house that Hugh wrote on in the Laurel neighborhood of Oakland, priced at $489,000.

35 packets out on a house in the Laurel District priced at $489,000.

I think we have turned the bend, at least in the sub-million range. I expect we will see market recovery in the East Bay before we do in Marin, SF, and the South Bay.

What does this mean?

If you are thinking of buying in the East Bay this is absolutely the time to do it. I believe we have bottomed out.

Tiburon Historic Sales

hpay@mcguire.com (Heidi Pay) — Fri, 01 May 2009 16:48:55 -0700

Historically, Tiburon has been one of the most expensive locations in the Bay Area to purchase a home. In 1965 the average home price was just above $40,000 moving to an all-time high of over $2.2 million in 2007. This is in comparison to San Rafael which started in 1965 at $30,000 and peaked at around $900,000 in 2007.

The proximity to San Francisco, stellar views of the city and the bay, as well as having great schools (all three elementary schools are California Distinguished Schools), contributes to the acceleration of value over time.

Here is some information on the last four years of single family home sales in Tiburon:

Year	# Sold	Avg $/SF	Avg Price	% List $
2005	116	$752	$ 2,329,170	96%
2006	99	$787	$2,278,268	97%
2007	113	$819	$2,607,565	96%
2008	78	$778	$2,534,120	95%
2009 YTD	12	$720	$2,636,582	90%

Year to date figures for 2009 were somewhat of an anomaly due to the sale of a $9 million home. Removing that sale from the data, the average sales price drops to $2,058,091.

A Real Estate Harmonic Convergence

agordon@mcguire.com (Adrian Gordon) — Thu, 07 May 2009 09:33:14 -0700

Oft Asked Question: Are we at the bottom of the real estate market yet?

Answer: We won’t know the market has hit bottom until the evidence is “in the rear view mirror.” But by then it may be too late to capture the best deals in years.

More Insightful Question: When was the last time we had a dip in Bay Area real estate prices, very low interest rates, and high rents at the same time?

Answer: 1993-1995, which was just before the last run up in real estate values.

We’re currently in a period of buying opportunity that we won’t see again for awhile. With prices and interest rates down, the cost of real estate ownership today is as reasonable as it’s been for 5 to 10 years. Yet rents have not retreated very much. They have remained high in San Francisco, Marin and San Mateo. Rents are at levels that allow a buyer to break even with as little as 25% down in some cases.

Reasonable break-even figures are obviously important for apartment investors, but they’re also important confidence builders for home buyers. A person should be more confident of buying a home if that person knows that he can rent it out without suffering a loss if he loses his job and has to relocate to a find a new one.

To arrive at this convergence of low prices, low interest rates and high rents wasn’t easy. We’ve had to suffer through the worst economic implosion in modern times. There was a lot of excess to be eliminated. Out of control lending had to be reined in. Property values had to reset down to comprehensible levels.

There are emerging signs that signal that the economy is no longer in free fall. In fact, there is reason for some encouragement here and there:

Yes, unemployment is high and likely to go higher, but the last few announcements show a slowing of unemployment.
The stock market, almost always a leading indicator of economic trend, has been rising during the last few months.
First quarter corporate earnings have not been good, but were expected to be worse.
Existing home inventories in many locations have been dropping from their painfully high levels.
Fortunate demographics have prevented the worst from happening in Marin or San Francisco.

A cautious person might wait until there was no doubt of economic recovery and of increasing property values. This would be a fine approach for some. However, perhaps by then the Federal Reserve will have raised interest rates to fight expected inflation and sellers will have become more firm in their asking prices. An opportunistic buyer will look at the existing convergence of favorable property prices, interest rates and rents and act now.

The table is set for those who want to look ahead.

To Sell or Lease?

bwilliams@mcguire.com (Bill Williams) — Thu, 07 May 2009 12:17:37 -0700

As I talk with my clients about the state of the real estate market, I hear the same dilemma: "Should I sell or lease?"

Together we arrive at your answer by objectively basing your choices on the facts:

Cash flow
Expenses
Current rental value
Market conditions
If you’ve lived in it for a number of years, have you considered that by leasing, even with a negative cash flow, you can still do better when you consider tax consequenses? (I can help you consider questions to ask your tax advisor.)

Together we can flesh out potential possibilities you may not have considered, or other options that are better mapped out on paper than left as vague ideas. This is how a good real estate consultant can be helpful. Practicing collaboration by gathering multiple decision-making factors empowers you to make more informed decisions.

While there’s no replacement for intelligent intuition (have you read Blink?), and no one is a better judge of what you need than yourself, it helps to work with a professional who can help you execute your goals by asking the right questions to ensure that you haven’t overlooked any important considerations.

Sausalito Living and Its Advanteges

mmonsef@mcguire.com (Mike Monsef) — Tue, 05 May 2009 16:18:29 -0700

Sausalito’s proximity to San Francisco has always attracted new home buyers. But few are aware of the culture and history that this unique and elegant city offers.

Strolling down Sausalito’s waterfront on a cool night, you’ll feel you’ve escaped this continent and been swept away to a quaint European city by Mediterranean Sea. This is especially true in the summer on a Friday night with the sounds of Jazz and Blues by the Bay. You feel like you’re in an Italian costal town.

Very few people know about the stairs in Sausalito. Originally these stairs were built for the children since there were no bus services to and from schools, so it was convenient for parent to send their children to school through short cuts. Today, young people use the stairs for exercise as well as exploring different neighborhood.

The Wooden boat building shop in Sausalito is one of the few old crafts that still is being preserved by the community and the City Government. It’s definitely worth seeing. Brightwork is Spaulding Wood Boat Center’s blog.

Sausalito always has been heaven for sailors. The marina is practically a museum of old and new sail boats and motorboats.

Eating establishments are unique to the area. From the fine dining of Murray Circle at Cavallo Point to the casual eatery of Fish Restaurant, there is a wide range of eating options on the water front.

Even if you’ve visited Sausalito, make sure you explore the impressive details of this attractive community. It just might make you want to pack up and move.

The Wisdom of Crowds

bwilliams@mcguire.com (Bill Williams) — Wed, 06 May 2009 20:09:44 -0700

I’ve noticed a curious link between imagination and emotion.

Both have their place in our lives, especially those of us who like to think of ourselves as creative. But the down-side of imagination and emotion is the harm they can do when we try to make a sound decision, especially when it comes to buying and selling real estate.

For example, people get caught up in the heat of the market, which is emotional, and they assume that that hot market will carry on forever, which is imaginative. The same thing goes when the market is in a downswing, as it is now. They forget about the fact that markets are cyclical, especially here in the Bay Area.

When people are overly reliant on imagination and emotion, it’s easy to become stuck and stressed out, wrestling with dilemmas that are removed from reality. Eventually it’s easier to pass these decisions off to someone else, ending up with "take my word for it" advice from a well-meaning friend or real estate agent.

But let’s face it: when you have a decision to make, such as buying or selling a home, you’re responsible for your choices because in the end, you’re the one who has to live with them. That’s why, especially in stressful situations, it behooves you to collaborate with a consultant, gathering information and objectively evaluating the factors that support the making of an informed decision.

A recent book comes to mind on this topic: The Wisdom of Crowds. It suggests that, under certain circumstances, the best results come from asking the opinion of as many different people as possible.

While I wouldn’t go so far as to make decisions by asking everyone, I do think that it’s always a good thing to have a second pair of eyes from a seasoned professional. You get informed feedback, reminding you of your goals. And watching your back.

Having choices is one of our greatest gifts in life. And when choices are really tough, I’ve found that knowing I’ve done whatever it takes to make the best decisions, even when things don’t go my way, provides peace of mind and makes all the difference in the world.

The Intricacies of Mill Valley Neighborhoods

rglazer@mcguire.com (Robin Glazer) — Wed, 06 May 2009 20:27:47 -0700

Many young couples who work in the city consider moving to Mill Valley because of its public schools as well as its relatively easy commute to San Francisco. However, once they start looking at open houses in the various neighborhoods, they’re not really sure why there is so much variation in price per square foot in one town.

There are many factors that influence this. These include:

Distance to the freeway
Distance from the downtown center restaurants and shops
Distance to schools
Flats vs. hills
Age and condition of home
Recent remodeling

There are other factors that may be less obvious such as

Immediate neighborhood
Traffic noise
Number of stories
Proximity to a park, tennis club or golf course
Amount of fog

Each neighborhood is unique and has its benefits and drawbacks. It is helpful for buyers to consider what is most important to them when they start looking:

Do they want to be able to have their kids walk or bike to a particular school or playground safely on their own?
Do they want to be able to regularly walk to downtown for coffee or their favorite restaurant or grocery store?
Do they want an easy commute to San Francisco?
Do they want to play golf or tennis with their neighbors?
Do they want a bigger house for the money? Or a newer house?

You may also want to explore many of these neighborhoods using McGuire’s interactive data tool. But when thinking about moving, make sure you speak with an agent who really understands the differences between Mill Valley neighborhoods. It can save a buyer time and help them sort out these different priorities.

Better Late Than Never

acongi@mcguire.com (Aldo Congi) — Fri, 15 May 2009 12:05:49 -0700

The San Francisco residential real estate market has seen a significant increase in market activity in May.

Typically the activity level increases in the spring (March), but this year due to economic factors, consumer confidence, etc., March and April were mired in the doldrums that we usually only see in the winter.

With May we have see new vigor. For example of the 27 properties I viewed on brokers tour on May 12, 4 were already in contract before the first tour. This is certainly the quickest response to new listings we have seen in some time.

Is this an event that can be sustained or a blip on the radar? Stay tuned.

Noise & Faith

cmoore@mcguire.com (Charles Moore) — Fri, 15 May 2009 12:47:15 -0700

"What you do speaks so loudly that I cannot hear what you say." -Ralph Waldo Emerson.

Sometimes being right isn’t as important as the provocative debate. We learn from varying points of view. With that in mind let me ask you this:

How do you feel about our economic future? Are you in a state of trust about the current stimulus plan?

I’d certainly understand if you say yes. I would only ask why? What are you seeing that I am missing?

My wife is the eternal optimist, who has faith that things will be alright if you stay positive. Time will heal all.
I marvel at her ability to be so ‘up’ all the time. My banker, on the other hand, won’t accept "faith" payments from me. Just cash.

You see my problem may be just like the apostle Thomas: "Doubting Thomas" who needed proof of Christ’s resurrection. I guess I’m just not that good at blind faith. For me "blind" and "faith" shouldn’t be used together. I can achieve a faithful mindset if I can see the logical path. Only then can I believe. So this leads me to my point on the economy. The stimulus plan isn’t working. Not in California or New York.

WHAT TO DO? What our markets need — and need NOW — are direct inducements to transact, such as a capital gains tax moratorium for real estate sellers or a tax relief on IRA/ 401Ks for buyers to use to acquire homes. Until we get something that stimulates our markets we are doomed to proceed more deeply into this abyss. people and companies will continue to contract to survive, leading to more stagnation and deeper unemployment.

In the meantime I will pray for divine guidance. And I would love to hear your thoughts.

Agree or Disagree?

cmoore@mcguire.com (Charles Moore) — Sat, 23 May 2009 14:25:50 -0700

Topic: San Francisco real estate — where is it headed?

In a recent meeting of 7 real estate CEOs about local market recovery, the consensus opinion was:

The real estate market recovery will be anemic, linked to flat, slow growth from year to year
We will NEVER to return to Halcyon years of the past (2005)

What are your thoughts? Do you agree or disagree? These opinions are neither right or wrong, until time itself will tell the truth….

May Flowers

acongi@mcguire.com (Aldo Congi) — Thu, 28 May 2009 09:23:22 -0700

I was interviewed Tuesday by a reporter from Bloomberg News. Of course the question came up, “How’s the market?” An impossible question to accurately answer as real estate in San Francisco is made up of numerous micro markets in our many diverse neighborhoods.

So I submitted to him a barometer that I use in looking at recent listing activity:

Of the 28 properties I saw on tour May 12th, 6 (21.4%) are in contract.
Of the 39 properties I saw on tour May 19th, 4 (10.2%) are in contract.

So totaling the these recent new listings, 14.9% have gone into contract. Historically, my experience is that healthy activity for new listings would be any amount over 10%. It seems that May flowers, in a real estate sense, are coming into bloom.

Will it be sustained? Stay tuned.

Bouquet of Flowers by Pepe

From Denial to Action

cmoore@mcguire.com (Charles Moore) — Thu, 04 Jun 2009 11:12:21 -0700

I drew this chart on a coffee house napkin after trying to understand my feelings the other day.

In October 2008 I refused to believe that Bay Area real estate prices could drop so precipitously, to be so volatile to drop 30% in value. I thought, why hasn’t the market come roaring back? This was my DENIAL phase.

In February/March this year, after several months of consuming all that I could in the WSJ, The Economist and others, it dawned on me that our economic problems were deeper and more systemic than I had ever imagined. I was starting to understand and it made me ANGRY. I was so disappointed at those charged with the responsibility of oversight of our financial systems. (I’m not an angry person by nature so I really didn’t like myself during this phase.)

Ultimately I thought of the prayer: "Lord, grant me the serenity to accept the things I cannot change, the courage to change the things that I can. And the wisdom to know the difference." Time to move on and chart a course that recognizes our current circumstances. I ACCEPTED the environment and RECONCILED that it was our reality. This step was very freeing because it allows us to act — to find the opportunities. Our management team charted a course that recognized appropriate to the times.

We were free to move to ACT with the confidence that we had studied all the known variables, charted our course and now we could move forward with confidence to find our best opportunities.

I hope our process and this chart helps you. If you find you are stuck in one of these early phases know that we were, too. To find your groove — to truly manifest yourself — you must work out of these early phases to get to the action phase.

Good luck and we look forward to your thoughts….

Noe Valley and Eureka Valley Homes Sales Spring forward

rlevy@mcguire.com () — Sun, 07 Jun 2009 22:15:45 -0700

Given all the discussion of a softened real estate market, it’s interestingly positive to note the resiliency of single family home sales in the Noe and Eureka Valley/Dolores Heights market over the past 31 days (May 6 – June 7). To say the market is showing signs of life is an understatement.

Consider the following facts. Since May 6, 19 homes have sold in just these two sub-districts at an average sale price of $1,415,553. Compare that to the same time frame a year ago (25 homes sold at an average sales price of $1,495,922) and you’re looking at only about a 5% decrease in average sales price. The 25% drop in sales volume year-over-year is made up in part by the very slow loan processing time which is backing up the closing process. To substantiate this point, as of June 7, there are an additional 28 homes currently in contract and pending close of escrow as well.

If we look at the very heady Spring ‘07 period, the same May-June period had only 22 homes sold (albeit at an average price of $1,681,227), so at 19 in ’09 we’re seeing a fairly commensurate sales rate.

Though average price per foot may be an even better barometer, we need to caution as a reasonable number of homes sold don’t list square footage and thus don’t calculate in. Nonetheless, as a reasonable comparison, this 30-day period netted the following price per foot:

2007: $778
2008: $805
2009: $756

The combination of a solidifying stock market, interest rates having bottomed out (coupled with a perception that they will be on the rise), and a growing attraction by home buyers to both sub-districts, is adding fuel to the proverbial fire.

Expect sales to continue on a strong pace in both Noe and Eureka Valley/Dolores Heights, though we will likely see some diminished activity as we hit our traditional mid-summer slow down.

The Power of the Prep

acongi@mcguire.com (Aldo Congi) — Fri, 12 Jun 2009 10:02:32 -0700

No we are not referring to my alma mater, Saint Ignatius College Prep. We are speaking about preparing a property properly to catch the eye of the market.

McGuire was called in to priced a Spanish Mediterranaen home in the Marina where the owner had lived for many years and passed on at a ripe old age. When I viewed the property first four months ago it was in a significant state of cosmetic disrepair and, in its raw state, I felt the list price should be in the area of $1,695,000. The McGuire listing agent prevailed and the new seller, a trust, accepted his counsel and prepared the property through painting, a hardwood floor refinish and staging. This week this property was put on the market at $1,895,000 and received 15 offers.

The agent and I had a little contest as to where the property would sell, the prize being a cappucino in North Beach. He won, I lost. For our client’s sake I was happy to lose.

Ciao for now.

Sellers, Where Are You?

hsittig@mcguire.com (Heather Sittig) — Sun, 21 Jun 2009 19:36:45 -0700

I am currently working with 23 different buyers actively looking to buy a house. I had lunch with an East Bay colleague in Rockridge this week (at the delectable Wood Tavern) and he mentioned he is working with 28 buyers. So between the two of us we have 51 potential home sales desperate to happen. Unfortunately for us and our clients, this week the new houses that came on the market were few and far between.

So I ask, sellers, where are you?

For the past 7 years my sales have been consistently 50% buyers and 50% sellers. This year to date my buyer-side transactions are 33% higher than my seller sides. I believe the explanation for this is that sellers who have experienced deteriorated property values (let’s face it, that includes all of us who own real estate) believe that if they hold out their values will “recover.”

While this may be the case for those of us who plan to hold on to our properties for at least 5 years, and probably longer, according to those who track statistics like the Audubon Society tracks the Spotted Brown Owl, it is equally likely that over the next two years values, according to the same experts, will erode further.

If you don’t want to put your life on hold for the next 5 years, then the time to sell is now, while there is still some enamel left on your real estate dentin. Be brave, be bold, put your house on the market priced appropriately, and you will look like a genius a year from now.

Image courtesy of dpalmer_md on Flickr

Marin County Video Market Update

rparks@mcguire.com (Ronald Parks) — Tue, 23 Jun 2009 19:27:36 -0700

How are sales in Marin County? How are prices? Take a look at my newest market update video.

15 year vs. 30 year mortgage

nicholascooper@gmail.com (Nick Cooper) — Wed, 15 Jul 2009 12:31:19 -0700

Check out my latest video on the 15 year mortgage, and why it is becoming increasingly popular.

Is It Summer or Spring?

acongi@mcguire.com (Aldo Congi) — Wed, 15 Jul 2009 20:08:55 -0700

I’m confused.

What month is this?

Obviously I can read a calendar, I can tell that it’s mid-July, but from a San Francisco real estate perspective it sure feels like March.

Traditionally the heaviest activity in the San Francisco market occurs from March to June of each year. My theory is that because of the economic issues in Q1 2008 and Q2 2009 the spring market was delayed.

In my blog May Flowers I indicated that in May there was an increase in the ratification of contracts. That activity level has sustained through June and now into July.

I’ve been tracking the properties I’ve viewed on a four week rolling basis as to how many have ratified. In the last four weeks, out of the 97 properties I’ve seen on tour, 23 — or 23.7% — are in contract. In my experience anything north of 10% shows a normal activity level, and since this is more than double the normal level, it appears we are still in the midst of a spring market.

What will August bring? Even though we are not like the French who take August off, this month is typically one of the least active in San Francisco. I’ll keep my finger on the market’s pulse and report at a later date.

As for now Au Revoir and Bon Chance!

Courtesy of arrogantfrenchman

We, The Jury ...

kmcinerny@mcguire.com (Kate McInerny) — Sun, 26 Jul 2009 13:14:17 -0700

Last May I served on a jury involving a single woman who had purchased a house on a ten-acre parcel near Nicasio in late 2002. She had at least eleven inspections during the escrow period as she was a first-time buyer purchasing a property with a well and septic system. The sale closed and in a short time, she began to experience alleged mold issues.

Over the next several years she began to tear the interior of the house apart trying to remediate this problem. Numerous contractors and specialists were called in and eventually she moved out of the house because she believed she was becoming ill from contamination. She eventually sold the house at a considerable loss in late 2008.

In 2005 she filed a lawsuit against the Seller and both listing and selling agents (and their brokers), along with every contractor she had contact with. Some settled out of court with her, while the case dragged on. Eventually she fired (and sued) her attorneys, and when our trial began, she had chosen to represent herself against six attorneys.

The trial lasted six weeks and we heard endless testimony about mold, as well as about electro-magnetic fields, building materials, methods of repair and abatement, etc.

The jury was comprised of a group of Marin residents who, interestingly, became very cohesive and close through the trial. It was clear that everyone on the jury took their job seriously. We would chat and joke during breaks, play poker and work puzzles, but we remained alert, open-minded, and discerning while trial was in session.

The turning point in the case came when the Defense (six attorneys) called a neuro/psychiatrist to testify about an evaluation he had done on the Plaintiff. It became painfully clear that the Plaintiff was suffering from significant mental issues and had filed the case on a delusional belief that both the real estate agents and all the inspectors, specialists, and contractors were collaborating against her. She so believed she was sick that she wore a surgical mask during the entire trial.

In the end, the jury decided 100% in favor of the Defense (which included Frank Howard Allen Realtors). The Plaintiff failed to prove her case and, once the case was over, we became privy to additional information not included in the trial which futher supported our decision.

When the decision was read, the response from all the Defendants was so emotional, we knew we had made the right decision. Thousands of dollars in legal fees, time away from work and families, the sheer stress of having to defend themselves against someone who had, consciously or unconsciously, abused the system, brought tears to most of us there.

The most important part of this whole experience is the fact that the Plaintiff’s case was built on a very thin "slice" of alleged non-disclosure. The Sellers had repaired a toilet leak in the mid-90’s and did not include mention of it in their Seller Disclosure Statement. Technically, because the problem had been fixed, they were under no legal obligation to disclose it. Nonetheless, the Plaintiff used this one "omission" in which to build her entire case.

The lesson here is that we as agents cannot stress enough the importance of disclosure with our clients. When in doubt, disclose! The ramifications of even the appearance of non-disclosure can exact a very heavy toll.

The reward for serving on this trial was the opportunity to see our justice system at work and to see what can happen when we encounter the "wrong" kind of client, buyer or seller. We jurors became so bonded through the experience that we have since gotten together to enjoy each other’s company and to further discuss the trial. Several of the attorneys have joined us, saying they were fascinated by how we arrived at our decision. We invited Judge Adams to join us, although she could not, but she wrote us a very touching e-mail saying that we were possibly the best jury she had ever worked with in what was a very difficult case!

Courtesy of americancaesar

Two Ways to Save for a Down Payment

nicholascooper@gmail.com (Nick Cooper) — Sun, 26 Jul 2009 13:49:57 -0700

As financing grows increasingly challenging, down payments are more critical than ever when buying a home. But how does one save in today’s topsy-turvy financial environment? Watch my video and learn two ways to save for your down payment.

Is the Recession Really Over?

adaro@ubayp.com (Aman Daro) — Wed, 29 Jul 2009 14:02:44 -0700

This week Newsweek’s cover article announced “The Recession is Over”. I tend to be dubious when anyone declares a trend dead, so I wondered whether there was any nugget of truth in this broad statement.

In the Bay Area, things are definitely looking up.

Between the first and second quarters of 2009, SFR prices in the Bay Area increased 28% (Source: MLS)
In the same time period, quantity of units sold increased 66%

Those are great numbers, and they reflect other recent news that prices and sales were up for the third consecutive month in June and national new home sales increased 11% in June, the biggest gain in 8 years.

But this is not surprising news. Sales and prices always increase month-over-month in the Spring. This tells us that we are no longer in a sharp decline — the market’s behavior is somewhat “normal.” For example, see this chart on sales by month in San Francisco.

The real test is how the market is performing year over year.

Comparing Q2 2009 sales to the same time period in 2008, quantity of units sold is also showing strength, up 2%
Average price is down 29%

But even with this bad news there is a silver lining. It appears the rate of decline is slowing.

In San Francisco for example, prices were down almost 30% year over year in January. But through 2009 we saw a steady decrease in the decline, where June’s decline was just over 10%. Declines in value are never a good thing for property owners, but at least the signs are pointing in the right direction.

According to this data San Francisco did, indeed, hit its bottom in January. While we were uncertain the Spring buying season would show up at all, it did. And it appears the season is sustaining it’s strength later in the year than expected.

While the right metrics are looking positive, all we can do is hope that confidence is returning to the Bay Area real estate market and that this is not a dead cat bounce.

Negotiating Strategies for a New Era

hsittig@mcguire.com (Heather Sittig) — Fri, 31 Jul 2009 09:43:08 -0700

Many buyers are excited by unprecedented opportunities to buy property at what does appear to be a significant discount. In the past most residential real estate transactions have occurred between a buyer and a seller — a seller who is selling their primary residence. This buyer/seller relationship typically creates an emotional playing field for negotiation. Sellers usually have a strong personal attachment to the property they are selling, and this can have an effect on how they approach negotiations.

We often hear buyers say they don’t want to write an offer so low that it will “offend” the seller. Buyers have even resorted to writing real estate “love” letters to attempt to woo a seller to accept their offer through emotional appeal.

In this day and age of REOs, short sales and corporate buy-outs, we now find that buyers are often negotiating with unemotional sellers. It is important to adjust our tactics accordingly.

When negotiating a contract with an REO, the bank owner is unimpressed by stories about how much the buyers are looking forward to raising their newborn in the neighborhood. Banks are more concerned about the financial wherewithal of the buyer, and often require that the buyer be pre-approved with the bank that owns the property, as a risk-reducing consideration.

When negotiating a short sale, often the offer is presented to the resident seller who stands to make no profit on the sale — their foreclosure clock is ticking loudly through the night, likely impeding sound sleep. This seller is anxious to sell, and so is less likely to let pride get in the way of accepting what may have been considered an “offensive” offer before these days of desperation.

Finally, when making an offer on a property that is owned by the corporation that purchased the property to facilitate a relocation, we are often negotiating with a relo company that has a duty to get the property sold quickly in what is perceived to be a declining market. In these situations there is no risk in starting a negotiation with a very low offer, so long as there is no competition.

All in all, it is critical to understand the variables involved in each unique transaction and to tailor you negotiating strategy to fit the scenario. With the right real estate agent on your side you may just make out like a bandit!

Marin-ite explores the Great Pacific Garbage Patch

dandrews@mcguire.com (Dianne Andrews) — Fri, 31 Jul 2009 10:21:21 -0700

An area called the North Pacific Gyre is home to an “island” of garbage estimated to be twice the size of Texas. On Tuesday, August 4, Marin-ite Mary Crowley – a friend of mine – will sail there to explore the area and learn of the best ways to clean up this garbage.

Learn more about Mary’s exploration in this recent Marin Independent Journal article. I hope all boaters and sailors – and drinkers of water in plastic bottles – should be interested in being part of the solution.

Courtesy of superdumpa

Belvedere: The Best Place to Put Your Money?

hpay@mcguire.com (Heidi Pay) — Mon, 03 Aug 2009 19:51:46 -0700

Just across the bay from San Francisco is the jewel city of Belvedere. The town offers views that rival the most glamorous cities in the world. This location has held its value throughout the recent economic downturn.

Courtesy of Bilkoy

The median price of a Belvedere home is $2.8 million, down a modest 2% from the peak in 2007. Looking at the average price of Belvedere homes, however, can be misleading. Average home prices in Belvedere have risen 47% from 2005 but this is due in part to some of the staggering prices paid for a few of Marin’s most expensive homes.

In 2007 there was a home sale for $15.5 million, capped by a $19 million dollar sale in 2008. This year, the highest sales price according to local MLS statistics was a mere $5.2 million.

With such a variation in average price and relative consistency in the median price it can be difficult to know how much the actual property values have changed. Both the Median and Average Sale Price statistics measure where the bulk of the market activity is, not the change in value on a specific type of home.

The average price change from 2005 indicates an increase in value of 47, and a modest 4 drop from peak in 2007. My analysis shows that a typical Belvedere home has enjoyed a real net gain of 16% from 2005 and a drop from the 2007 peak of only 3. Using the same valuation algorithm to compare, the typical Marin home has seen a loss of 25 from the peak and 17% from 2005.

"Genesis" on Real Estate and Food

ccummins@mcguire.com (Cynthia Cummins) — Wed, 12 Aug 2009 22:29:40 -0700

Adam and Eve got relocated.

They left the garden, sobered up and realized they’d have to set about the business of living. Which meant they would need food, clothing and shelter. Which meant they’d need a good real estate agent.

Lucky for them, they’d landed in San Francisco and a McGuire office was just down the street.

Their agent helped them find their own sweet slice of Eden, and pointed them toward the best restaurants in the neighborhood and that little boutique on the corner. The agent told them all about dry cleaners and grocery stores and MUNI lines and parks.

Then she said, in a confidential tone, “Of course, if you want the best Thai food in the city, you should head over to Polk Street where there’s this little place I just love…”

Adam and Eve thanked her for the tip, all the while wondering “What can she mean by tie? Did she say tie? What’s tie food?”

And so their gastronomical adventure began, by virtue of living in a foodie’s paradise. Bon appétit!

WSJ: The Economy Is Out of The Recession, 8.11.09

cmoore@mcguire.com (Charles Moore) — Thu, 13 Aug 2009 14:51:50 -0700

In the August 11 issue of the Wall Street Journal, 27 of 47 economists polled by The Journal say the recession is over.

Do you agree? Do you think we can we start concentrating on managing our recovery phase? As Aman blogged in July, and as it was announced at our most recent sales meeting, activity is way up in all our Bay Area markets.

Your thoughts?

Lombard Street To Become Giant Candyland Game Wednesday

adaro@mcguire.com (Aman Daro) — Mon, 17 Aug 2009 20:31:10 -0700

As reported in SF Appeal, Lombard Street will be turned into the the world’s largest game of Candyland on Wendesday. It’s all in honor of the 60th anniversary of the classic board game.

This isn’t something you see often on Russian Hill.

Dog Days of Summer

acongi@mcguire.com (Aldo Congi) — Wed, 19 Aug 2009 11:13:43 -0700

As we move through the second half of August I am reminded of this title in relation to the baseball season.

The dog days of summer refer to the tediousness of August, as baseball teams move through the hottest days of the year while looking forward to the stretch run of September — which leads to postseason play.

From a San Francisco real estate point of view, August is typically a slow month foractivity, leading to the fall season where there is normally an increase in inventory and activity. Just returning from my vacation I’ve researched the number of listing which have ratified that I toured July 21st and July 28th: Out of the 45 properties seen, 22 are in contract! 48.8%!

This tells me two things:
1) Buyers are out despite the month of August
2) Properties that are priced correctly are going into contract

We shall see what September brings, but clearly this August has shown to be an extension of an active May, June and July.

Image courtesy of David_Maggie

Have we hit bottom?

adaro@mcguire.com (Aman Daro) — Tue, 25 Aug 2009 09:27:28 -0700

Have we hit bottom in the San Francisco real estate market? We explore the state of the real estate market in the San Francisco Bay Area: where are the hot areas? Are we trending up or down?

This video includes interviews with San Francisco and Marin County real estate agents, as well as footage from San Francisco, Mill Valley, Noe Valley and the East Bay.

Click below to view.

Letting Go

ccummins@mcguire.com (Cynthia Cummins) — Wed, 02 Sep 2009 10:26:47 -0700

I’ve been a real estate agent in San Francisco for 22 years. I’ve been married to the same person for more than 20 years. I’ve given birth to two sons. I’ve driven across the U.S. three times in a Chevrolet Vega. I’ve climbed down a fire escape ladder in my Stuart Weitzman shoes while holding a kitty litter box sloshing full of rainwater and cat poop.

But the hardest thing by far that I’ve ever done is sell my house of 15 years. This involved purging, staging, showing, packing, organizing, moving, purging again, unpacking. In other words, it was Pure Hell.

Two months later, I’m beginning to recover and I realize I have some new insights and resources to share with
1) real estate professionals to help them empathetically and effectively support their clients and
2) people who are in the process of moving and/or selling.

Here’s my tip for today: Check out the website www.unclutterer.com. More specifically, check out this article by unclutterer’s editor Erin Rooney Doland that appeared in Real Simple magazine.

In order to purge effectively it’s imperative to get yourself into the optimum head space: a self-compassionate yet ruthless psychological stance. Doland’s 10 Commandments of letting go can make all the difference.

Print them out and post them on your forehead. It’ll make an impossible task much easier.

Market Metabolism

ccummins@mcguire.com (Cynthia Cummins) — Tue, 08 Sep 2009 12:16:47 -0700

We in San Francisco are always developing cutting-edge marketing strategies for selling real estate.

Back in the 80s, we figured out that pricing low could goose competition between would-be buyers and thereby induce them to pay top dollar for a house.

In the 90s, agents were quickly sold on the value of staging. I personally only had to see one sow’s ear turned into a silk purse to convince me of the miracles made possible by paint, rental furniture and shade-loving impatiens planted in the dark corners of the yard.

And in the 00s, ever part of the vanguard, we harnessed the internet for marketing purposes. Now every studio condominium has its own website with lavish photographs, virtual tours, floor plans and agent biographies.

In a “down” market, the simplest and most fool-proof marketing tool – which involves the wise strategy of “selling agents first” – is the offering of free food on broker’s tour.

In a town full of foodies, it’s a no brainer and it’s making a big comeback right now.

I believe that the amount of food being offered on brokers’ tour is a reliable barometer of market health and one that pundits and prognosticators sadly ignore.

The more robust the market, the more tilted toward sellers, the less food you will find on tour. If the balance tips toward buyers, an active agent can plan on a 5- to 10-pound weight gain over the course of a few months.

It is currently possible to have a lavish breakfast in Russian Hill, snacks and bottled water in Pacific Heights, dim sum in the Richmond district, light lunch in Noe Valley and, finally, dessert on a loft terrace in SOMA.

Back at the office, the break room will be filled with leftovers from various agents’ various epicurean efforts. Giant chocolate chip cookies and slightly droopy Aram sandwiches are pretty much guaranteed.

Crunches, anyone?

Image courtesy of teenytinyturkey

Understanding Life in the Hills of Mill Valley

lsalmon@mcguire.com (Lise Salmon) — Tue, 08 Sep 2009 12:49:33 -0700

The Marin Independent Journal published an article of mine today: “How it is: The hills are alive with the sound of happy homeowners” (link).

I’ll be honest and say the title was theirs, not mine, but the sentiment is truly from the heart. It’s a reflection on living life in the hills of Mill Valley — a little quirky, and definitely tongue in cheek, but filled with intangibles only “hill people” like me seem to get.

Thoughts? Opinions? Please share!

The Beauty of Emeryville

godom@mcguire.com (Gina Odom) — Wed, 09 Sep 2009 23:13:44 -0700

I read this interesting article on the transformation of Emeryville and it reminded me of why I chose to buy in this city.

I moved to a neighborhood where Emeryville and Oakland meet, also known as the Golden Gate Neighborhood. I bought here because I saw the value in this area and always regarded Emeryville as very well planned, with smart expansion and development potential.

In the past three years that I have lived here, I have seen many changes:

We have a new playground and picnic area at Hollis and 61st called Doyle Hollis Park.
There is a new and delicious pizza place called Rotten City Pizza. If you love New York style pizza, this is a place you will want to check out.
Café Biere opened this past year providing our taste buds with exciting and unique beers from around the world. If you happen to go there, ask the owner to tell you about The Dutchess – the reason he opened this pub. The story is delightful and the beer will make you come back for more.
The brand new Glashaus from Pulte Homes have been completed and now, even in this market, are close to being sold out.
Heck, even Clif Bar is coming back to Emeryville to restake there claim in the business arena where they originally started.

Often times, when I meet people in Emeryville, I feel a sense of an underground movement of artistry and uniqueness. I love my location and I enjoy the families on my street who have been here for many generations, coupled with being in the mix of the young, hip crowd who have claimed their stake on the richness of Emeryville.

Image courtesy of Michael Layefsky

Today's Top Questions

hschmulewicz@mcguire.com (Herb Schmulewicz) — Thu, 10 Sep 2009 14:48:28 -0700

Question: It’s human nature to want the best deal.When we are selling, we want the most for our property. And when we buy, we want the best price. As a seller we want to time the market, and as a buyer we want to time the market. So when is the best time to pull the trigger?

Answer: Do it when you are ready and make sure it fits in to your overall financial plan and situation.

If you are selling, you must be realistic and realize where the economy is now. Many think the economy is settling; however, it is dynamic.

Question: Interest rates will go up at some point, so why should you care?
Answer: For sellers, as interest rates will go up, a buyer’s buying potential is instantly diminished. Where a buyer could have afforded your house prior, the buyer may not be able to afford it now. Do you want to risk that?

For buyers, if you decide to wait for another drop and believe the prices will fall another 3%, that’s great and you could be right. Now factor in an interest rate hike. Even the slightest change in interest rates can impact your buying potential. Consider the impact to your mortgage payment over the long haul.

Question: How do you think more foreclosures and short sales will impact values? Are foreclosures and short sales good deals?
Answer: It depends. They can be, but they can they can also help you lose financial wealth. Be careful and make sure you understand this market.

Just a few random thoughts for today. More coming soon…

Sausalito Floating Homes Tour

Victor@MarinHomeSale.com (Victor Fisher) — Thu, 17 Sep 2009 17:47:47 -0700

After a couple of years off, the much anticipated Sausalito Floating Homes Tour is back. This famous community has been portrayed in songs, movies and poems. Having lived on a houseboat as well as selling them, I can tell you what a truly unique community it is. Come and see if this lifestyle speaks to your soul.

This years tour takes place on Sept. 26 from 11:00AM to 4:00PM

For more information go to my Marin Home Sales blog post.

September 19, 2009: Where is the Mission District?

cisaacs@mcguire.com (Carole Isaacs) — Mon, 21 Sep 2009 19:23:16 -0700

With the downturn in the economy I have taken to the tried and true, but not for everyone, cold call. Yes this means knocking on doors and introducing myself as a Realtor based in the McGuire Real Estate Noe Valley office at the corner of Church and Clipper. This is the first installment in a series of blog posts as a record of my experiences “on the street” and the questions, thoughts and comments of the people I meet.

Walking up 25th Street from Church toward Dolores I spotted two young men who looked old enough to be home owners in shorts, no shirts, basking in the sun having lunch on the deck on top the garage. Climbing the stairs I said to them, “You guys really know how to spend the day” and introduced myself. They stopped me and said they did not live there, but were tourists from Sweden staying in the bed and breakfast. We chatted a moment and they commented on how great it was to be in San Francisco staying in the Mission. A bit surprised, I told them this was Noe Valley, not the Mission District and they asked, “Where is the Mission?”

I answered that the Mission is roughly bordered by Valencia, DuBoce, Potrero and Cesar Chavez. But for real estate there are specific borders with a jog here and there, and that this was true in all areas. This is especially meaningful with Internet searches, because the San Francisco Association of Realtors produces a map divided into areas labeled with numbers (districts) and letters (sub-districts/neighborhoods). If a search is set on one of the many real estate sites and Noe Valley is checked]=, a home may be only across the street in the “Mission” and will not appear in the list produced from the search. Also property values are higher than in the Mission and just being labeled the “Mission” can affect the value of a property.

My clients all use the Internet in their search for property. It is important to look closely at the SFAR map and search a wide area that includes all possible streets of interest.

I said good-bye to the Swedish convention visitors knowing they could return home and begin their search for their San Francisco pied-à-terre and find one in Noe Valley.

FHA Guidelines Are Going to Get Tougher

rbrisbane@mcguire.com (Robert Brisbane) — Tue, 22 Sep 2009 10:49:35 -0700

The FHA is going to tighten lending standards on January 1, 2010.

The exact extent of the credit tightening is not clear, but the result will be less people qualifying for FHA loans for purchase and refinance. In addition, the FHA will comply with tighter appraisal standards. In the first half of 2009 FHA financing was used in 19% of new home purchase and that number should increase in the second half of this year. The FHA is simply running out of reserves and must slow down the lending by tightening standards.

The rules of real estate are under constant stress and change. Never before has there been such a need for a true real estate expert. Pick your Realtor well.

REOs vs Short Sales

mleverette@mcguire.com (Marlene Leverette) — Tue, 22 Sep 2009 12:01:18 -0700

I have been asked by clients if short sales are better for lenders than REOs.

In talking to an attorney friend of mine who handles a number of these sales, I have concluded that short sales are better for lenders. The banks do not like REOs being on their balance sheet. That is why REOs happen rather quickly, not necessarily to the highest bidder, but rather to the all cash, no contingency buyer where the bank can count on a rapid closing of escrow.

This unfortunately has made it difficult for first time buyers to benefit from this market and has has been a terrific opportunity for investors who clean them up and flip them. Short sales, on the other hand, seem to take forever because the banks are not yet savvy about how to make these happen

However, this is quickly changing and I think we are going to see a lot more short sales in the future.

PUD Pet Restrictions

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Wed, 30 Sep 2009 17:26:58 -0700

Recently a buyer asked if an HOA had pet restrictions. The answer is this: Most, if not all, do.

When puchasing a townhome, even if it is considered an single family attached home with a large back yard, never assume anything when it comes to your four legged family member.

In Foster City there are many large PUD complexes (define) with huge back yards. In most of these the HOAs will allow a pet.

But here’s where it gets confusing.

Some have weight restrictions, some have type of pet restrictions (e.g. cats not allowed; dogs are). Even the type of bird or number of birds you have may not be acceptable. Just becasue the MLS may say pets are allowed it is imperative to read the HOA documents carefully.

About 2 years ago while showing a townhome in Foster City my clients came across a very unusual situation. The neighbor had a rooster. Not a good thing at 4am. It seems the HOA said that birds as a pet were allowed, but it was not specific enough to exclude farm birds. Needless to say, the pet rules were changed.

Currently the “Rules and Regulations” for Bay Vista in Foster City are being updated.

Anyone purchasing a PUD should ask this question: Are the CC&R’s updated or in transition?

Image courtesy of Raafje

HOA Stories Pt 1

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Thu, 01 Oct 2009 17:06:49 -0700

In August 2008 I had the pleasant task of preparing a townhome for sale. It was in a Planned Unit Development (PUD) and obviously had monthly dues. The dues were slightly higher than the average in this community, but it did include water, gabage, and earthquake insurance. Priced slightly below market — and remodeled — I just knew this would sell quickly.

While reading the HOA documents, I noticed that some of the meeting minutes seemed rather “sterile”. What I mean to say is the meetings seemed to be rehursed and not as lively as some that I had attended in my own PUD community. The reserves were ok but not great. The budget seemed to be on track. There also seemed to be an unusual number of “Executive Sessions” (meetings that homeowners are not allowed to attend).

My first open house was subdued and even though I sent invitations the neighbors stayed away. My first Broker Tour 3 days later revealed what would become a year-long nightmare for my sellers:

A homeowner came to the door and informed me that there most likely will be “special assesments”

It turned out to be $38,000 per unit. It seems as though the major component of the complex had been neglected over the years — items like the siding, sewer system, common area parking structures and roofs. The complex built in 1973 had over 200 units and was in a fragile state.

This leads me to a few lessons that were learned from this experience.

Lesson 1: If you live in a PUD, attend the Board of Directors meetings. Most of the homeowners in this complex never attended a single meeting or ever voted for a Board Member.

Lesson 2: If you live in a PUD and you see deterioration anywhere in the complex, report it via email to the management company (document the comunication and response time). Remember this: Even though the damage may be on the other side of the complex, you share the ownership regardless of the location.

Lesson 3: Before puchasing in a PUD, read and truley understand the HOA documents. Find out when major repairs have been completed and if there is a budget for emergency repairs. Question everything. Your real estate agentshould contact Board of Director members and the management company prior to removing your inspection contingecies.

There are many townhome complexes on the Peninsula that are managed very well that still have low dues and high reserves. Even some that were built around 1970 are in great shape. There’s no secret to a successful HOA, but you as a homeowner should be activly involved. Know your neighbors and join a CERT program through your local public safety organization.

Most of all, before writting an offer, choose a Realtor who knows about HOAs.

Possible Extension of First Time Home Buyer Credit

nicholascooper@gmail.com (Nick Cooper) — Fri, 02 Oct 2009 15:39:38 -0700

Will the $8,000 tax credit be extended into 2010? Congress is trying hard to keep it alive, but what does it mean for buyers of real estate? Watch my latest video and find out more.

Short Sales -- Patience is a Virtue

hschmulewicz@mcguire.com (Herb Schmulewicz) — Tue, 06 Oct 2009 09:52:01 -0700

A short sale is one in which a seller owes more on the property than what it is going to be purchased for. As a result, not only does the seller need to agree to the sale, but so does the current lender. The process is quite lengthy for many reasons, but can have a positive result in that a buyer has the opportunity to make a purchase below current market value.

I hear of people who shy away from short sales, but in my opinion, they simply provide another approach to buying or selling real estate. While they’re worth consideration, they also test our negotiation skills, patience and professional tenacity. A recent experience proves a perfect example.

I met with one of my clients who thought she was priced out of buying a home. So we looked at short sales. It didn’t matter how long the purchase would take, it was more about having the right place at the right price.

Month 1: We make an offer on a property and wait, wait, wait.

Month 2: Another offer — with a higher offer price — is submitted by another buyer. We think our deal is dead and search on.

Month 3: We write an offer on another short sale. With all this waiting my client is losing enthusiasm.

Month 4: We hear from the listing agent of the second property that they don’t think our offer is going to be enough for the lender and that they are going to submit an offer from another buyer.

Month 5: We are back to the drawing board. Our patience is being tested, and my client starts to think that it wasn’t meant to be.

Month 6: We get a call from the listing agent of property number 1 that the buyer with the higher offer can’t be found and we are being asked if we are still interested. Amazing! My client can’t believe it!

Month 7: My client, a woman who started off thinking she could never buy a home, moves in. She did not have to change her expectations – she simply had to be patient.

It was a lengthy process, but it felt good in my heart that I helped this person.

Short sales may not be right for everyone, but don’t rule them out. Here in San Mateo, Pacifica and the San Francisco Peninsula, short sales will, for better or worse, be here for a while.

Great Values in Saint Francis Wood?

cisaacs@mcguire.com (Carole Isaacs) — Tue, 06 Oct 2009 09:52:24 -0700

A few years ago, buyers were grateful to have sellers accept their offers. Today they are not only looking for the perfect home, but they also want a deal.

Although my McGuire Real Estate office is in Noe Valley, on Tuesday Broker’s Tour I look at a wide range of properties covering many neighborhoods with two goals in mind:
1) I look specifically for property of interest to my clients
2) To understand the San Francisco real estate market

Recently in Saint Francis Wood and Monterey Heights there were several large homes – over 2,500 square feet, with the almost mythical two car garage, plus ample street parking – priced under $1,800,000. In Pacific Heights this could be the price of a condo.

Until recently living in a Victorian or a traditional home in Saint Francis Wood or Monterey Heights was the ultimate goal of many buyers. Today the real estate pie is more diverse. Many young people want modern designs that were unthinkable not that many years ago. But Saint Francis Wood remains one of the most beautiful neighborhoods in San Francisco, and there are moments in time when there are opportunities to make an exceptional purchase. And this may be one of them.

Looking at the tax records of three houses for sale in the Saint Francis Wood and Monterey Heights neighborhoods under $1,800,000:

One is a trust sale
Another has had the same owner since 1979
The third has a very low yearly tax and must have been in the same family for many years

These sellers will all make a substantial profit on the sale of their homes. This is a win/win situation where the sellers will make a profit and the buyers will find a deal in comparison to what their money buys in other San Francisco neighborhoods.

My goal is always to provide my clients with the best opportunity within their price range. This may include suggesting a neighborhood previously unknown to them or believed to be out of their reach. You might be surprised where your ideal home can be found.

Photo courtesy of FoundSF

HOA Stories Pt. 2

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Tue, 06 Oct 2009 21:31:26 -0700

Last year the board of directors of a townhome community on the Peninsula decided to remodel its clubhouse. It was built in the 1970’s along with 189 townhome units.

The board decided to vote on a proposal to upgrade the clubhouse’s small kitchen and spruce up the party area with bright colors and new window covers. There was even talk about a flat screen TV. The budget was $45,000.

The vote was passed. Because many homeowners never attended the meetings, there was no one to object to the remodel. No one could have predicted the unusual circumstances that followed.

While trying to get city permits, it was discovered that this free-standing structure was not on record with the city. There were no plans, no permits, no blueprints — nothing to indicate that this structure was legally built. Some speculated it may have been a temporary sales office back when the townhomes were built.

Even the pool was not on record with the city and county. The county had to inspect the pool and immediately closed it down pending upgrades and safety issues. The HOA also had to pay additional costs to have inspectors come to the site.

Because the building is almost 40 years old, EPA inspectors need to inspect for and remove asbestos and lead paint. Clubhouses in a complex are considered a “public” and there are many new laws that must be complied with. The structure also had extensive termite infestation and dry rot. It was a mess.

Needless to say the “remodel” for $45,000 will probably top $150,000+.

This horror story got me thinking about a few lessons we could benefit from.

Lesson 1
When purchasing a townhome in an older complex with a pool, have your Realtor contact the management company to make sure the pool is on record with the county and complies with safety issues. Ask for documentation.

Lesson 2
If you are viewing properties that have a clubhouse, make certain you inspect the clubhouse and its bathrooms. You will become a part owner of the structure and you will be partly responsible for its repair and maintenance.

Lesson 3
Your Realtor MUST contact the management company to find out when the clubhouse had its last termite inspection. If you already own property in a PUD, attend the board of directors meetings and voice your concerns.

Despite this unforeseen mess, this complex is one of the most well maintained HOAs on the Peninsula. The roofs, painting, driveways, and fence repairs are kept up in a timely manner and the grounds are gorgeous. The reserves are more than enough to take on this project, and the budget is on track. No one would have imagined that the thorn in its side would have been its free-standing clubhouse and pool.

Even though this situation is a fluke, it doesn’t hurt to have a Realtor who knows what questions to ask.

Appraisal Controversy

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Wed, 07 Oct 2009 15:46:59 -0700

Eight days ago an appraisal was conducted on my listing in San Mateo. The lender is Bank of America. They needed 10 working days to produce the appraisal. Although there was time enough for the contingency period to comply, I thought it was very odd that the appraisal report would require so much time.

Fast forward to yesterday.

An appraisal was conducted on yet another home in San Mateo in a transaction where I am representing a buyer. The lender is Wells Fargo. The complete appraisal report will take only 48 hours to receive. We received a verbal ok and will move forward with the appraisal contingency when we receive the report tomorrow.

Although there are misconceptions about the appraisal process, as well as different lenders’ ability to close transactions, all of the hearsay and rumors really mean nothing. It is the borrowing strength of the buyer that is the real key to a successful transaction.

Mill Valley Real Estate Market Update

jzeiter@mcguire.com (John A. Zeiter, Jr.) — Wed, 07 Oct 2009 19:02:55 -0700

If you are thinking about purchasing Mill Valley real estate. here are some numbers to look at this week.

The largest number of available homes for sale in Mill Valley is in the price range of $1,250,000 thru $1,499,999 with 24 available homes.

Over the last 6 months, the largest number of homes sold is 22 in the price range of $1,000,000 to $1,299,999.

For more statistics visit the McGuire Local Explorer or my website at www.JohnZeiter.com.

Corte Madra Real Estate Home Sales

jzeiter@mcguire.com (John A. Zeiter, Jr.) — Thu, 08 Oct 2009 13:03:49 -0700

If you are looking for Corte Madera real estate, here are a few stats to help you:

Currently, the most active homes are in the price range of $1,000,000 thru $1,249,999 with 5 available homes.
Over the last 6 months, the most sold homes at 7 were in the $950,000 thru $999,999.

For more information visit McGuire’s Local Explorer.

A Home of One's Own

lsalmon@mcguire.com (Lise Salmon) — Mon, 12 Oct 2009 21:56:54 -0700

Stealing from Virginia Woolf, when a buyer takes that journey to find the right house, they are truly looking for a home of one’s own.

In other words, a buyer is a bundle of unique characteristics seeking a spatial match; a house that suits them. And, like any good relationship we seek, the intellect plays a part and the heart plays an equal part.

As an agent, it is always fascinating to witness the unveiling of a buyer’s priorities — the intricate matchmaking of space, place, price, and aesthetics.

Sometimes lightning strikes, like love at first sight. Other times, it is a progressive dance of possibilities. Buyers may simply have to “try on” on a variety of different homes, and by doing so, learn what fits. Either way, there is a great deal of creative thought going on.

A million synapses trigger every time a buyer visits a home for sale and thinks “Hmmm, is this me?”

Image courtesy of Mel Rodicq

Mill Valley - A Community That Pulls Together

sstephenson@mcguire.com (Stacey Stephenson) — Fri, 09 Oct 2009 17:16:56 -0700

Mill Valley residents are undertaking the restoration of the city’s steps, lanes and paths. A wonderful City resource, these walkways are unique and historic. In fact, many were created during the initial development of the community as routes to the downtown stores and the railway to the San Francisco ferries running out of Sausalito.

Today these steps, lanes and paths, especially some of the hillside staircases, are viewed not only as recreational pathways, but as an emergency exit routes.

Many in the Mill Valley community who want to encourage walking, improve emergency escape routes, and fight climate change have joined the Steps, Lanes and Paths Volunteers as they gather for work days to help restore Mill Valley’s historic steps, lanes and paths network.

This week the volunteer group started the second of the twice-a-year project to build SLP #246 from Hillside to Elinor. I was among the six volunteers yesterday and after only 2 days we had already put in 30 treads.

If you would like to volunteer to help with the renovation work, please contact Mill Valley Parks and Recreation Director Christine Sansom at 383-1370 or Victoria Talkington (our incredibly committed and fearless leader) at 383-4049.

Multiple Offers

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Mon, 12 Oct 2009 17:36:08 -0700

At least 2 of my listings this year have sold with multiple offers. One may think that they sold over the list price. The answer is no.

For a townhome I had listed in Foster City there were 5 offers, all under asking price. My seller chose the strongest offer.

With a single family home there were 3 offers. My seller almost chose a lower offer because of the terms of the offer. The offer that was accepted was right at the list price and terms were worked out.

Alameda County also seems to have its share of multiple offers. One home in Hayward currently has over 80 offers. My clients (buyers) were in disbelief.

The best advice to give is write the offer based on what the comps are and NOT to get caught up in feeling like they are competing with the other buyers.

There are still a lot of great opportunities out there. More are coming.

Whole Foods Opens in Noe Valley

cisaacs@mcguire.com (Carole Isaacs) — Tue, 13 Oct 2009 21:31:40 -0700

On September 30, 2009, Whole Foods opened their newest location in the center of Noe Valley’s commercial district, 24th Street. To property owners in Noe Valley this is an important addition to the community.

A few weeks ago I held open a property at 75 Clipper Street on Saturday and the owners as they left said: “Be sure and tell the buyers that Whole Foods is now in walking distance.” This past Sunday, when I held the same home open, several buyers commented on how happy they were to have Whole Foods in the neighborhood.

I highly recommend attending one of Whole Foods’ many events, including tastings. You can sign up for them on their calendar. You can also follow them on Twitter.

No one thing will determine the value of a property, but the addition of this well-known organic food store has been received with excitement, and it is a wonderful centerpiece to the Noe Valley neighborhood.

For more information on Noe Valley, feel free to drop me a line.

Image courtesty of doglington

Great News! AB 957 Effective Immediately

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Wed, 14 Oct 2009 15:26:02 -0700

Governor Schwarzenegger signed Assembly Bill 957 (Buyer’s Choice Act) on Monday October 12th. This prohibits a trustee or beneficiary who acquired a property through foreclosure from requiring a buyer to purchase title and escrow services of the sellers’ choice as a condition to receiving offers or selling the property. The law is effective immediately.

The buyer can agree to accept the seller’s recommendations of which title or escrow provider to use, only when a written notice of the buyer’s right to make an independent selection of these services is first given to the buyer by the seller.

All too often during a transaction with a foreclosure the title offices are sometimes in Southern California or Sacramento and are not up to par with the local laws governing real estate transactions. It can turn a simple transaction into a mess. Last year a title office was closed down in Sacramento while in the middle of several REO transactions.

Of the 14 bank-owned transactions I was involved in 2008 with an REO team, only once were we able to use a local title office. The buyers were never allowed to choose.

This is a huge victory for buyers.

What Can You Do if You Close After The Contract Date?

jrichardson@mcguire.com (Judy Richardson) — Thu, 15 Oct 2009 16:11:18 -0700

Recently I had a listing where my sellers agreed to a 30-day close period. The transaction was on schedule until a $9,000 credit was issued to the buyer for a patio that was not sealed properly. This caused the lender to request a re-appraisal and delayed the contract from closing.

We did eventually close (twelve days late), but my seller was upset because they had done everything the buyer requested and the bank ultimately caused the delay. So the question is: do my sellers have any recourse to request a daily PITI (principle, interest, taxes and insurance) per diem?

According to our legal team, the sellers did not have any legal recourse since banks in today’s world tend to delay closings. The buyer also could not contribute to the sale because the bank would not allow any more money from the buyer contributed into escrow without causing even more issues and delays.

On the flipside, my sellers would not agree to the terms and the closings unless compensated for the late closing date. So we were at a stalemate, but ultimately we came to a compromise.

Bottom line, sellers know what your rights are if an escrow is delayed due to the banks’ slower processes, and be sure to ask your Realtor if a 30-day escrow is, at the end of the day, truly realistic.

Loma Prieta Remembered

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Sun, 18 Oct 2009 09:25:44 -0700

Twenty years ago, on the way home, I stopped to get a movie at a video store. In a matter of seconds, the store was in shambles. We scrambled to escape through the glass door (attached to a wall of glass). It was obviously the worse thing to do. Safely on the street, we realized we could have been killed just by scrambling to get out.

Once on the sidewalk, the situation was surreal.

People were pouring out on the street, El Camino Real in Palo Alto was literally a parking lot. I didn’t think I would make it home to Cupertino very soon. I was wearing uncomfortable clothes and had on a pair of pumps. It was mid-October and the weather was balmy. My feet hurt and I was tired, hungry and worried about my family.

Thankfully I made it home in about 4 hours by staying mostly on the El Camino, to Sunnyvale and then cutting down Wolf Road to Cupertino. Along the way I was astonished at the calmness and kindness of the people I encountered. Traffic moved at a snail’s pace. The news said freeways had collapsed and the power was knocked out but couldn’t say where. When I arrived home to our tiny two-bedroom house, I was shocked to see lights and TV on. The family – including our 2 doggies – was safe. I was home.

Even though we all made it home safely, since that experience, each of my family members always keeps an emergency kit in our cars. This includes:

2 pairs of sweats, pants, T-shirts, sweatshirts and rain gear
1 pair of tennis shoes and several pairs of underwear
Baby wipes, toothpaste, tissue and personal needs
Food items including water, crackers, peanut butter and more
Flashlight, radio and batteries (kept in original packaging)
Blanket, pillow and first aid kit

Even though this looks like a lot, it is only a small duffel bag and a small office box, both tucked away in the back of my trunk.

There are many resources to help you get prepared for an earthquake or other natural disaster. Some are do-it-yourself like 72hours.org and Ready.gov; you can buy earthquake preparedness kits at sites like the Red Cross; and local public organizations have wonderful CERTS training for emergency preparedness.

I can’t believe it was 20 years ago.

Image courtesy of NASA

"Neighbor to Neighbor" Blog Series: Trees, a Growing Concern

agordon@mcguire.com (Adrian Gordon) — Mon, 19 Oct 2009 13:04:48 -0700

“Hey, what happened to my view?” It’s hypothetical question, but it could be real for you.

Let’s say that 12 years ago when you bought your home you had an unobstructed view of the Bay. The neighbor’s home below remained the same size (thankfully), but its surrounding Monterey Pines and Redwoods did not. They grew about six feet during that time and devoured your Bay view.

Now you want to sell your home, and your real estate agent has informed you that the view, if restored, would be worth between $150,000 and $300,000 or more, a potential 10-20% addition to the sales price of your home. The issue could be the diminished amount of sunlight that falls on your home or garden, but the thought process is similar.

So what to do? If you place a high value on the benefits of trees (e.g., natural beauty, oxygen generators, heat insulators, etc.), and remember Joyce Kilmer’s work I think that I shall never see a poem as lovely as a tree…, you may decide to swallow hard on the financial opportunity and do nothing. However, if you want to bring back some of the view that first attracted you to your home and capitalize on it in your sale price, then you need to talk to your neighbors.

Invite them over for tea or coffee, at your home if possible. Perhaps they have already thought about doing some tree work. If you don’t know the neighbors very well or they are reluctant to come over, then you may need to take a scene from Desperate Housewives and stride resolutely but deferentially over to their place, Jo Malone candle in hand, with your request to prune, top, thin or remove certain sections of their trees. It will help if you offer to pay for the work, but maybe only a portion of it if you sense that the neighbors see your suggestions as mutually beneficial.

For reluctant neighbors, sometimes a bargain can be struck. For example, if your property is uphill of theirs and they have been unhappy with the quantity of rain runoff, perhaps you can agree to divert the water in exchange for an agreement on tree work. If you’re going to spend a significant amount of money to accomplish your end of the bargain, I would suggest, at the least, writing a letter describing the agreement and having both parties sign it (memories can grow dim over the years). When you are in the process of selling your home, you can provide a copy of this letter to your real estate agent to disclose to potential buyers. If your neighbor sells first, you might want to hand a copy of the letter to the neighbor’s agent for disclosure to potential buyers of their property. Without prior notice, a new owner can say that he or she is under no obligation to continue to allow you to trim his or her trees.

If you want to be more careful, you can have an attorney draft an easement for view or light and record this easement in the county title records. This will cost you some money and likely slow down the process, but it will have the benefit of “automatically” providing notice to all who purchase your property and your neighbor’s that the agreement exists and that it must be honored.

If neighbors can’t resolve a tree issue, there are attorneys and others who will serve as mediators to help the parties toward that end. Litigation is the last resort. Trials can produce unpredictable and disastrous consequences because of their winner-take-all format, to say nothing of their cost and time delay. Tree Wars, in the February 2009 edition of Marin Magazine, wonderfully illustrates this point.

Resolution of a tree issue may take a vastly different path depending upon location. San Francisco has a detailed tree ordinance which attempts to strike a balance between rights to sunlight and view on one hand, and the environmental benefits of trees on the other. Marin towns, such as Belvedere and Sausalito, have also stepped into this arena. Mill Valley has strong right-to-life laws for certain types of trees. My next blog post will take up this topic in the context of these laws. Please check this space about the beginning of November, or subscribe to our RSS feed.

In the months that follow I plan to discuss a wide variety of neighbor issues: fences, construction, noise, animals, etc. I have a background in negotiating or mediating neighbor disputes. If you have any stories or questions about dealing with your neighbors, please send them to me at agordon@mcguire.com. I will try to incorporate your anecdotes (anonymously, if you like) in subsequent blog posts. (Read Part 2)

Tree image courtesy of Travis LoDolce

The Cow Hollow Fix and Flip

jcomer@mcguire.com (Jamie Comer) — Mon, 19 Oct 2009 15:53:46 -0700

It was an active week for the flip market in Cow Hollow. This showcased both the fixer opportunity and the finished product within blocks of one another.

2130 FILBERT
Originally built in 1874, 2130 Filbert was purchased in 2008 for $1,300,000. This was a 2 bed/2.5 bath home, 1,500 sq ft (aprx).

Nineteen months later, 2130 Filbert was back at a price of $2,450,000. Having undergone a down-to-the-studs remodel, the developer transformed the home to a green-certified 3 bed/3.5 bath with 2,500 sq ft (aprx) and 2 parking spaces. Because of the historical significance of the home, the planning department would not permit any façade changes or height additions. The square footage was added to the back-side of the top floor, which was not visible from the street.

This home received 3 offers and was under contract in 5 days.

3055 LAGUNA
Two blocks away, a fixer was getting a lot of attention: 3055 Laguna was on the market for the first time in over 50 years. At 1,040 sq ft (aprx), it was being offered at $829,000. Despite the fact that the only open house was during the Blue Angels’ performance, and the only brokers’ tour was during a torrential downpour, an offer date was set with whiplash speed.

3055 Laguna garnered 4 offers, one of which was all cash, and was under contract in 8 days.

3041 LAGUNA: FROM $1.1 M TO $3.7M IN 3 YEARS
Two doors up from 3055 Laguna, 3041 Laguna was purchased for $1,100,000 in November 2005. At that time it was a 2 bed/1 bath stuccoed-over Victorian that was 915 sq ft (aprx).

Three-and-a-half years later it re-emerged as a 5 bed/4.5 bath home with 3,250 sq ft (aprx) and was priced at $3,750,000.

It was under contract within 9 days.

When considering a similar remodel for 3055 Laguna, Mark English, noted San Francisco remodel architect and principal of Mark English Architects, estimated a remodeling cost of $800K-$1M.

While the rest of the country appears to be suffering from a mortgage crisis and wavering consumer confidence, in San Francisco’s Cow Hollow, there are clearly good opportunities to purchase a fixer and flip a few years later at a notable profit.

Don't Let The Feet Trip You!

rmerryman@mcguire.com (Robert Merryman) — Mon, 19 Oct 2009 19:39:20 -0700

Square footage can often be confusing — to the buyer, agent and appraiser. Recently I forwarded a listing to a client for a single family home with 3 bedrooms and 2 baths. Her first question was, “What’s the square footage?” After checking the tax records (1,441) her immediate reaction was: too small.

In the meantime, she gave a favorable nod to a listing for a 4 bedroom/2 bath home on three levels (1,700+ sq ft). There were 4 bedrooms squeezed into the same space where the other home had 3 spacious bedrooms.

Of course, we’re looking at these homes on the computer. Seeing, touching and walking the floors made it all the more “real.” In reality, the “bigger” home (on three levels) felt about the same size as the “smaller” home. And the fourth bedroom was the size of a postage stamp!

The catch: square footage includes all interior measurements, including hallways and stairs! The measurement can also vary from source to source. Square footage SHOULD NOT include outdoor space, patios or decks. Don’t let the feet fool you. Go, see, touch and walk the home for yourself.

Extended Tax Credit for Military

godom@mcguire.com (Gina Odom) — Tue, 20 Oct 2009 07:52:06 -0700

Great news for military clients serving or having served overseas:

The House of Representatives voted unanimously last Monday to extend the deadline for the home buyer tax credit for certain individuals. The Service Members Home Ownership Tax Act of 2009, or HR 3590, will allow eligible military personnel, foreign service, and intelligence officers to apply for the $8,000 tax credit for one year beyond the current Nov. 30th deadline.

Those who meet these requirements for the credit must also be serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year.

The bill was introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for this one-time opportunity to purchase a home.

The House passed with 416 votes and 16 abstentions. Not yet law, however, it is anticipated that it will be approved by the Senate.

Cocktail Party with Jonathan Vaughters

cmoore@mcguire.com (Charles Moore) — Wed, 21 Oct 2009 12:20:04 -0700

Join Jonathan Vaughters, CEO of Slipstream Sports and founder of the Garmin-Slipstream Professional Cycling Team, at an exclusive cocktail reception.

Hear Jonathan talk about his vast experience with the professional peloton – first in the saddle and most recently from behind the steering wheel of the team car.

The Garmin-Slipstream Professional Cycling Team has grown from a small US based development to an international cycling powerhouse, winning races all over the world, due in no small part to Jonathan Vaughters’ direction.

Please join us for what promises to be a fun evening. Purchase tickets here >>

Marin Forclosures

jzeiter@mcguire.com (John A. Zeiter, Jr.) — Wed, 21 Oct 2009 16:49:34 -0700

The news is out about the increase in notice of defaults for Marin County. The number of defaults for the third quarter of 2009 increased 66 percent compared to the third quarter of last year. You can view the full article from the Marin Independent-Journal.

In Corte Madera, there were 13 notices of default in the third quarter of 2009, per the tax records on Realist. In this same period, there were 11 homes with a notice of a trustee sale.

What does this tell us?

First, Corte Madera, like many towns in Marin, has very few foreclosures, but they have increased from last year. Some of the notices are an effect of the mortgage meltdown, and some are from the recession (lost jobs or income).
Second, Novato and San Rafael have the majority of the foreclosures due to the size of these cities and the number of entry-level homes in Marin County real estate.

We may see a slight increase in default notices over the next few months as the next wave of adjustable loans come due. This will be of particular interest as these loans were typically taken on high-valued properties.

The Autumn Wind

acongi@mcguire.com (Aldo Congi) — Thu, 22 Oct 2009 09:56:42 -0700

As we transition from Indian Summer to Autumn, it is timely to examine the market activity in reaction to the increased inventory which is typical in September for the San Francisco residential market.

In general the activity in ratified contracts has been very strong. To wit I keep track of activity with a device for want of a better word, the “Aldometer.” I retain the Tuesday broker tour list for the previous four weeks and track which properties are in contract.

Of the 137 properties I viewed in that period 43 are in contract, a healthy 31%.
To take a weekly snapshot of the 28 properties viewed on October 13th 9 are in contract or 32%.

In general we are experiencing a typically active fall market as we head toward the holidays. Let’s see how the wind blows this Autumn. Stay tuned.

Image courtesy of pawpaw67

Neighborhood Spirit on the Peninsula

mteixeira@mcguire.com (Mary Ann Teixeira) — Mon, 26 Oct 2009 08:25:31 -0700

I love this time of year because it provides me with the perfect religious-neutral reason to door-knock and hand-deliver a festive gift to each door step. Yep, I have been delivering shiny orange pumpkins each festooned with a black satin bow. And this year, the reception has been wonderful once again.

I have come to realize that this is one of the reasons that I love living on the peninsula. There is such a sense of community, neighborhood and pride of ownership. I am delighted with the transformation of the front yards, stoops and porches as the holiday season nears. Front lawns become ghoulish graveyards, oak trees become the back drop for flying ghosts, and entire houses become enshrouded in white webs and oversized black spiders. And this is just the beginning….

Once October 31st passes and the witches, goblins, and dark creatures are returned to their storage boxes for their annual retreat, the Thanksgiving paraphernalia emerges. Pots of chrysanthemums flanking entries, artful gourd arrangements lining stairways, and stalks of corn bound and placed as accent to the old wicker chair on the covered porch. And naturally, this decor will recede in time to make way for sparkling white lights tracing eaves, holly wreaths, and doors decorated with swaths of gold and silver fabric.

Now don’t get me wrong, I loved living in the City, and did so for 20 years. AND I loved the holidays there. However, there is something to be said about an entire street transforming itself in the spirit of the season. It sure makes walking the neighborhood a lot of fun.

BMR Condos in San Francisco

aswetland@mcguire.com (Andrea Swetland) — Tue, 27 Oct 2009 10:49:41 -0700

As you are reviewing a disclosure package in San Francisco you might come across a disclosure form that is named “Notice to Buyers and Sellers Regarding Preliminary Title Reports (Possible Re-Sale Restrictions for San Francisco Affordable Housing Programs).”

I know that is a mouthful — most of my clients look at me in confusion, just want to sign it and move on. However, here’s a word of caution: if you are buying a condo, you really do want to look at this form closely. More importantly, you want to check out the preliminary title, particularly in the exception to the title and the condo map.

For buildings built or converted in the 1980’s, part of the approval process required that developers provide a certain number of below market rate condos for sale. Be careful. Ask the question. If you don’t you could end up buying a condo at “market price” that has restrictions on what price maximum it can sell for.

Believe me, it’s a big difference!

Don't Forget The Final Walkthrough

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Tue, 27 Oct 2009 11:00:21 -0700

A final walk-through prior to the close of escrow is vital to a successful transaction. After conducting inspections and removing all contingencies, it’s the last important step before handing over the keys.

The seller must maintain the home throughout both the listing and escrow periods. Because of the storms two weeks ago, my clients, who were purchasing a home that needs a roof, were concerned with the possibility of leaks and who would be responsible.

Thankfully the home held up against the storm and passed the “final” walkthrough.

A second walkthrough should be conducted a few days before the close. This is to assure the buyers that the smoke detectors, water heater compliance and any other safety issues that are required by the state are in place. Often these simple issues are overlooked during the escrow, so it’s important for buyers to make a check list.

One last issue that must be noted: what is or is not required if the home is “bank owned” or a “trust” sale? The water heater strapping and smoke detectors compliance requirements must be followed, no matter the type of sale.

Marin County School Award

Victor@MarinHomeSale.com (Victor Fisher) — Tue, 27 Oct 2009 15:39:26 -0700

Marin County schools have always been a big draw for people moving north of the Golden Gate Bridge. Given all the attention around government cutbacks to the state’s school system, some good news has just been released. Tamiscal High School in Larkspur is one of just three in California to receive the Exemplary Independent Study Recognition Award from the California State Department of Education and the California Consortium for Independent Study.

The school in the Tamalpais Union High School District also earned recognition earlier this year as a California Distinguished School, an acknowledgment of its high academic standards and achievements.

Tamiscal students also tend to do well on standardized tests. The school set a new record for high achievement on the California Standardized Testing and Reporting exam in 2008, and then broke that record in 2009. About 85 percent of Tamiscal juniors scored at proficient or above in English in 2009, compared with 76 percent in the rest of the Tam district and 63 percent in Marin County.

That’s despite the fact that it’s an independent study school and Tamiscal teachers don’t provide test preparation classes or discuss the test during their weekly meetings with students. Because it’s an independent study program, students have to be motivated to succeed. Given the award and the waiting list to get in, it’s apparent that they’re doing something right.

To receive a copy of the Marin Public School information Guide CLICK HERE and for more information on Marin County public and private schools, contact me at 415-720-6100.

What Do You Mean By "Parking"?

aswetland@mcguire.com (Andrea Swetland) — Wed, 28 Oct 2009 13:54:09 -0700

When buying a condo in San Francisco you really need to read the fine print when it come to parking.

There are 3 types of parking when buying a condo:

Deeded parking means you actually get a particular space that is mentioned in the actual deed of trust.
Exclusive use easement means you have the right to parking but you don’t have an actual space deeded to you. The parking spot can change at any time
Leased parking requires you pay a monthly fee for the parking, but there is no guarantee that you will have parking from owner to owner.

Make sure you know the difference before you remove your contingencies.

Image courtesy of ZeroOne

San Francisco - Seen From the Sky

ckosel@mcguire.com (Cathie Kosel) — Tue, 27 Oct 2009 19:44:26 -0700

I asked my friend who is a commercial airlines pilot to send me photos from her flights. She took this one of San Francisco last Sunday morning and captured the commerce, industry, parks, homes, culture and spectacular beauty of our city in a single frame.

What a wonderful place to live, work, and play!

Green Homes Required in Novato?

nswetland@mcguire.com (Nate Swetland) — Wed, 28 Oct 2009 20:31:05 -0700

Green homes: What a controversial topic!

At the Novato city council meeting last night, they reviewed a proposal that would establish rules/building codes requiring new construction — and eventually remodeling of homes — to comply with the changing “green” standards of Marin County. This came from Marin Green BERST

Short-term benefits include reduced energy bills for the homeowner, and long-term benefits include saving the local environment. While everyone agrees that the environment is important to protect, the costs of doing such work could outweigh the immediate benefit. There are two schools of thought:

Green Side
On one hand, the environment should be protected, and we must put in place ideals today to make for a better tomorrow. The added costs associated with green building, whether for new construction or remodeling, are nominal compared to the long-term benefits.

versus

Economic Side
Any added costs or approval conditions/reviews to the construction process (whether remodel or new construction) may preclude and/or reduce the number of projects from moving forward, which may have a negative affect on the local Novato economy — which is already in a difficult spot.

At first it seems to be an easy answer, but there are many nuances of bringing a feasible solution to the table which will adequately balance both sides. There are many facets to this process, and determining how to incorporate them into the current approval process is a delicate balance.

I am thinking that the short-term economical issues caused by such a proposal will be mitigated by the new opportunities in the construction and real estate arenas. We already see many established contractors adding the scope of “green” construction to their palette.

Maybe the costs of green living construction will be incorporated into standard practice, and the approval process will be streamlined, sooner than we can imagine.

Image courtesy of Army Environmental Update

Scandal! Intrigue! Pub Crawls! Just Another Marina Community Association Meeting

llanzone@mcguire.com (Laura Lanzone) — Thu, 29 Oct 2009 11:03:52 -0700

Last night I attended my very first Marina Community Association meeting.

Surprisingly, it was quite interesting, or maybe I’m just getting old. There was drama! There was intrigue! There was scandal (think Bridge Motel – who knew?)! There were Halloween cookies! All in all, not a bad way to spend a couple of hours on a Wednesday night.

Most of the talk concerned the Doyle Drive/Presidio Parkway Project, of course. The contractor has been hired and the work will start on the west end in November. The ramps between the Marina and Richmond Districts will be closed (grrr), so avoid Divisadero at all costs. You can sign up to receive alerts about changes and closures by Twitter or email. If you have problems or questions you can stop by the onsite project office at the new, temporary location of the Crissy Field Center (next to the Yacht Club), or you can call the hotline at 263-5953.

A few other interesting tidbits I learned tonight:

There seems to be great concern over the environmental impact that professional dog walkers are having on the Presidio. Apparently this was not taken into consideration when they came up with the original Dog Management Plan.
The current Crissy Center is going to be CalTrans headquarters for the duration of the Doyle Drive project.
Alcatraz will soon be solar powered.
The captain of the Northern Police Station, Al Casciato, will be handing the position over to a very nice woman named Ann Mannix.
There have only been 44 robberies in the Marina this year to date, but assaults are up due to alcohol-related bar fights on Chestnut. Also, they caught the porta-potty firebug, so arson is down this year from 10 to 2!
Pub crawl buses are NOT looked upon kindly by the residents.
The only Presidio Trust proposal that seems well received is the renovation of the theater by the San Francisco Film Society.
The art that would have gone in Don Fisher’s proposed Contemporary Art Museum of the Presidio will now go to the San Francisco MoMa.
There are plans for a Loma Prieta Memorial on the Marina Green Seawall, but they are still $750,000 short.
Last, but not least, the dreaded Bridge Motel. Like I said before, who knew? Apparently, everyone but me! It seems the Bridge is a regular HOTBED of criminal activity and the City Attorney has even filed a civil suit to try and get them out.

Loma Prieta Memorial

Lots more that I left out, but you get the idea.

In the end I paid my $25 to join the Association, ate a cookie, gossiped with my neighbors – and came away feeling really lucky to live where I do.

Building (or Rebuilding) Wealth

hschmulewicz@mcguire.com (Herb Schmulewicz) — Fri, 30 Oct 2009 15:00:24 -0700

I was having dinner with some very senior folks of a major financial institution. In a kind way, they suggested that I have a wealth seminar — and that I do it in the near future.

Why? Because we are at a unique juncture where both prices and rates are low. If you think about the history of the housing market, it would make sense to consider buying property now. Wouldn’t it?

While interest rates are low, I think we will see an incline by the middle of 2010. Those that have refinanced and or made a purchase before then will be quite happy. Although there will still be plenty of buying opportunities, I really do think taking advantage of these interest rates is a great way to build wealth.

For those who may not want to purchase, you still may want to take advantage of the low rates and consider a refinance. You’ll have to consider how much time you have left on your loan, not just the reduced payment, but if you are at all thinking about refinancing, this may be the time.

These are great times to think about your finances and how to build or rebuild your wealth. What are your thoughts?

Will They Extend the First Time Home Buyer Tax Credit

cduncan@mcguire.com (Christine Duncan) — Sat, 31 Oct 2009 20:44:40 -0700

With the November 30, 2009 First Time Home Buyer Tax Credit deadline fast approaching, will the US Senate extend it into 2010?

Realtors and brokers, mortgage lenders, home inspectors, appraisers are just a few in the real estate industry scrambling to meet the current deadline.

Whether home prices rise or fall in the coming months, there are proposed changes in the new tax credit that could benefit a larger group of home buyers.

Investment Corner: Q3 2009 Market Update

linda@quinnsolutions.com (Linda Quinn) — Tue, 03 Nov 2009 10:44:46 -0800

Buyers looking for “deals” beware: a significant highlight in Q3 2009 was the rarity of quality buildings. Lack of supply in the supply/demand model will help support values.

Two 3-unit buildings, 1837-1841 Jefferson and 768-772 Green, sold for $2,165,000 and $4,320,900 respectively. Jefferson has attractive outdoor space and good updating. Green has very high-end upgrades and spectacular views.

At $573/sq. ft. and $800/sq. ft., these buildings are not cheap. Jefferson also sold quickly with only 20 days on market. That Green sold for over $4M is impressive, being an Ellis-Acted building and having a small buyer pool in that price range. This is not a negative for buyers making longer term purchases: location is helping to retain value.

Sellers also met with a disappointing reality: for those having bought between 2005 and 2008, many had to sell for less than what they paid. Jefferson’s previous purchase price was $2.46M in 2005; Green’s was $4.6M in 2007.

Other notable sales:

508 Cabrillo, 4 units with no parking, sold for $1,285,000 ($345/sq. ft.).
183 Chattanooga and 85-87 Chattanooga are two small 2-unit buildings with no parking. They sold at $938,000 ($453/sq. ft.) and $675,000 ($519/sq. ft.) respectively.
472-474 Oak Street is a two unit bank-owned property on a very busy street with no parking. This sold for $890,000, which is a healthy $355/sq. ft. and $40,100 over list price despite the location and distressed circumstances. (Sale price was $81,000 below the last sale in 2001, which was $975,000.)

508 Cabrillo sold for $245,000 more than its 2005 sale price, illustrating the sometimes-elusive upside when a seller renovates and succeeds in increasing rents within a few years. In contrast, 85-87 Chattanooga sold for $131,000 less than its 2005 sale price likely because the seller could not remove a protected tenant that originally came with the property. These prices are landing consistently and at minimum in the mid-$300/sq. ft.

The western Avenues is a nice place to live and own, with lower prices. One of the better buys in Q3 for smaller buildings was 708 Great Highway, a duplex with ocean views. Built in 1991, it has no rent control. Sale price was $1,103,000 ($271/sq. ft.).

Please visit quinnsolutions.com for detailed charts, market statistics and a full quarterly report.

Special Assessments in a Condominium

aswetland@mcguire.com (Andrea Swetland) — Tue, 03 Nov 2009 16:14:16 -0800

When buying a condo in San Francisco, make sure you ask very specific questions in writing to the seller or condo association.

It’s important to know what special assessments have been discussed, even as a possibility. Many times we check to see if there are any special assessments on the condo disclosure form. Ask specifically:

Have there been any discussions on work that may need to be done soon?
Are there any bids “even if they haven’t been voted on”?

At least know what you could be getting into BEFORE you sign-off on the disclosure.

Noise? What Noise?

aswetland@mcguire.com (Andrea Swetland) — Fri, 06 Nov 2009 12:55:17 -0800

Buying a condo in San Francisco is a great process, but if you are sensitive to noise make sure you clarify what is considered “noise” to you.

Many people expect that they will be able to hear something from their neighbors. Also, street noises, barking dogs, garbage trucks: these are city noises that many people don’t think twice about.

For those of you who have an issue with noise and consider this a deal-breaker, ask specific questions of the seller. Also, you might want to go visit the unit in the evening when people are more likely to be home and going about their daily rituals. Check out the neighborhood as well to see how many restaurants, buses and the like are nearby. You’ll be happier you did.

Image courtesy of woodleywonderworks

FHA for your first purchase?

cbamberger@mcguire.com (Cameron Bamberger) — Wed, 04 Nov 2009 13:50:06 -0800

I represent many first-time home buyers during the purchase of their first home in San Francisco. More and more buyers are aware of Federal Housing Administration (FHA) programs as an option when working with a low down payment or less than stellar credit scores. When buying with FHA though, you have to profile the properties you are considering or you may be spinning your wheels.

FHA will lend on single family houses, but beware the FHA appraisal. If you are not using the FHA loan designed for fixers, the house needs to be in good condition. If it is obvious there are windows, walls or floors missing, you probably can’t get a loan on it. If there is obvious dryrot and/or termite damage, you may not be able to get a loan on it.

It is imperative to work with a good lender to watch for issues that might impede your ability to complete your purchase. Knowing the possible roadblocks and having solutions ready may also help you to get the listing agent to have their seller accept your offer. Many agents are wary of having their seller accept offers that include FHA loans.

The listing agent may be even more wary of accepting your offer to buy with FHA financing if you are looking at a condo. Unless the condo complex is already FHA approved, you need to have some idea if the guidelines will allow you to purchase in the complex. Again, your best resource is a good lender experienced with FHA programs.

There may be issues with smaller complexes, though rumor has it FHA will be allowing purchases in 2-unit condo buildings soon, an important change for FHA condo buyers in San Francisco, since we have many 2-3 unit Victorians that have converted to condos. But there are more rules, like the complex must be at least 51% owner-occupied. If you are trying to buy in a 2-unit complex and the other unit is rented, your deal will not go through.

Regarding combining assistance with your first purchase:

The San Francisco Mayor’s Office of Housing (SFMOH) recently reduced the amount of funding available to limited-income, first-time home buyers through their Downpayment Assistance Loan Program (DALP) program. Now they are providing funds only to certain borrowers and only for bank-owned and short sale properties (I suspect SFMOH approvals and funding will slow to a crawl since many distressed properties will have problems with the FHA appraisal). When using the DALP program, the interest-free, payment-free loan that the City awards the buyer does not count towards the down payment in the eyes of the lender. You will need a local lender who is approved by the SFMOH in order to participate in any of these available programs.

It is easier for me to convey this information and more either by phone or in person! Please do not hesitate to contact me.

Novato Home Price Update

nswetland@mcguire.com (Nate Swetland) — Thu, 05 Nov 2009 20:30:54 -0800

Prices in Novato are increasing, according to Altos Research.

The median price of single family homes in Novato went from $675,000 in May 2009 to $750,000 in early November (see chart). Condo prices, however, has stayed relatively flat.

It does seem that more buyers are out there right now looking at properties. At my open houses, I have qualified buyers coming through asking the right questions. It just may be that they are waiting to see what happens.

The rumor is that another wave of REO properties will hit the market in the springtime. But might it be possible that there is enough demand to equal this new supply, thus keeping prices stable. Who knows? Only time will tell.

Many buyers look to Novato and Terra Linda real estate as viable alternatives to Southern Marin County because of the benefits:

Novato/Terra Linda areas are only 20-30 minutes from the City
Median home prices that range from $250 to $350 per square foot
Great school districts
Great climate

Image courtesy of udpslp

Visit me at www.marin4you.com or call/text me at 415-320-5588 with any questions.

Where Are All The Double Strollers Going in Noe Valley?

cisaacs@mcguire.com (Carole Isaacs) — Thu, 05 Nov 2009 14:40:26 -0800

Many are just out for a stroll. But others are on there way to the Noe Valley/Sally Brunn public library. Located at 451 Jersey in San Francisco, the library offers activities from Toddler Tales to Shakespeare performances, with a new book club starting up Nov 18, 2009. The full calendar is online here.

Houses for sale in the neighborhood can be found here. Contact me to view any of these homes.

Noe Valley Library, 1916 from the San Francisco Public Library

Spring Forward or Fall Back?

kgolden@mcguire.com (Kathryn Golden) — Thu, 05 Nov 2009 15:08:48 -0800

When I reflect back on the real estate market in the Spring, I’m reminded how terrible it really was. No credit, depressed prices and neither buyers nor sellers were making any moves.

Spring forward, and now we’re back to pre-2008 levels of activity. There are multiple offers on some of the well-priced entry properties.

At a recent open house in the Mission Bay, over 40 buyers came through. By the end of the week, four offers were presented, one of which was an all-cash offer. Savvy investors are paying cash in order to win the bid process, and then perhaps refinancing after the close.

Even at pricier points, homes priced correctly are going into contract within a week. Recently 1155 Vallejo St, a single family home at the $3 million price point, went into contract over the weekend, even before there was a broker’s tour. So no longer is it a buyer’s market – it is both a buyers’ and sellers’ market.

1155 Vallejo St

Finally! Extending Loan Limits

khartquist@mcguire.com (Karen Hartquist) — Thu, 05 Nov 2009 15:05:16 -0800

In February 2008, President Obama signed the Economic Stimulus Act of 2008 into law. This act temporarily increased the FHA loan limit and Government Sponsored Enterprises’ (GSEs) conforming loan limit to 125% of an area’s median home price, up to a maximum of $729,750.

What is a conforming loan limit? It determines the maximum size of a mortgage that GSEs, Fannie Mae and Freddie Mac can buy or guarantee. Due to the increased risk to the lender, non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for the consumer.

Currently, as a result of the economic stimulus plan, the conforming loan limit is $417,000 for most areas in the U.S., but $729,750 in high cost areas such as the Bay Area. The loan limits were set to expire at the end of 2009, and could have been lowered to $625,500 for high cost areas.

Now here’s the good news: President Obama signed a resolution to extend the current limits for GSEs and FHA loans through 2010. And on October 29, this resolution was passed by Congress, extending the current limits through 2010.

Great news for home buyers!

Home Buyer Tax Credit Finally Extended

gbryan@mcguire.com (Gregory Bryan) — Sun, 08 Nov 2009 08:34:14 -0800

The Home Buyer Tax Credit Extension was approved today by President Obama as part of the $24 billion economic stimulus package. This extends the current $8,000 tax credit for home buyers who have purchased their first home and meet certain criteria.

Currently, those eligible for the credit are first-time home buyers who bought after January 1, 2009, went into contract by April 30, 2010, and closed by July 1, 2010. The credit is reduced by $2000 each following quarter and expires at the end of 2010. The credit can be used towards the down payment.

There is also a new provision allowing current homeowners a $6,500 credit if they purchase a new home and have lived in their current home as their primary residence for 5 years or more during the previous 8 years prior to purchasing.

Additionally, the income level requirements have been raised, allowing more to qualify:

Maximum credit applies to those individuals who earn up to $125,000 or couples up to $225,000
Credit diminishes for single home buyers who earn between $125,000 to $145,000, and for couples who earn above $225,000 to $245,000
Single home buyers earning more than $145,000 and couples over $245,000 do not qualify for the credit

Note this credit does not apply to homes of $800,000 or more. You have to keep the new home as your primary residence for 3 years or repay the credit.

I recommend that you contact your accountant or lender for further information and details.

Facing Marin Traffic

sfaccinto@mcguire.com (Sharon M. Faccinto) — Fri, 06 Nov 2009 14:09:27 -0800

While the Bay Bridge was closed last week, there was an unusual amount of heavy traffic on 101 through Marin. It reminded me how lucky residents of Southern Marin normally are.

Image courtesy of Peter Kaminski

An easy and beautifully scenic commute to the city is the lucky lot of residents of Sausalito, Mill Valley, Strawberry, Tiburon, Larkspur, and Corte Madera, on most days. With a choice of commuting by ferry, express bus or car, and with the institution of FasTrak on the Golden Gate Bridge, the traditional backup at the toll booths is just about gone and our daily commute usually goes quite well.

Residents of Kentfield, Ross, San Anselmo and Greenbrae have it nearly as good. Normally, the traffic does back up during evening rush hour just south of the Sir Francis Drake exit — which is the main exit for Greenbrae and points west, as well as the first access to the Richmond/San Rafael bridge — but that slowdown only affects them for a small stretch of their road home.

Golden Gate Transit buses get high marks and post healthy ridership figures, as do the ferries. Check their stats, routes, and schedules at www.goldengate.org. The express ferries from Larkspur Landing tend to be the most heavily used, as they run the most frequently at commute times; however, the ferry boats from Tiburon on Sausalito also work for many Marin residents as a daily commute option.

How about biking to work? Whenever the Golden Gate Bridge has the sidewalk along the southbound lanes open, you’ll see scores of people — mostly residents of Mill Valley, Strawberry, Tiburon and Sausalito – commuting by bike. While the Bridge District does not currently keep that bikes-only sidewalk open 24/7, both the Marin Bike Coalition and the San Francisco Bike Coalition are working to improve bike access hours for the bridge.

When the Doyle Drive Improvement project (also known as the Presidio Parkway, Marin residents will probably face temporarily slower traffic on the bridge and along the 101 corridor at commute times. This should result in heavier usage of the ferry system. Some of my friends, neighbors and clients say they intend to work from home more frequently, or modify their schedules to drive in before or after rush hour. Personally, I’m in favor of a fleet of “gypsy” ferries — Zodiacs and Boston Whalers carrying the workforce to and fro across the bay — but that will probably remain a dream. Until then…

Doyle Drive image courtesy of mattymatt

Mortgage Debt Relief Extended

jzeiter@mcguire.com (John A. Zeiter, Jr.) — Mon, 09 Nov 2009 15:43:03 -0800

The Mortgage Debt Relief Act of 2007 was extended though 2012, as part of the Emergency Economic Stabilization Act. The original provisions on this Act stated that it was only good through the end of 2009.

The Act generally allows taxpayers on their primary residence to exclude income from discharged debt through mortgage restructuring or foreclosure. Up to $2 million of forgiven debt is eligible ($1 million if married filing separately).

Here is more information about this Act and its implications, and here is the direct link to the IRS with more information and examples.

A WAR of Generosity

bwilliams@mcguire.com (Bill Williams) — Tue, 10 Nov 2009 12:07:38 -0800

The real estate negotiation is an inherently adversarial process. The agent on each side of a transaction is trying to protect his or her client’s interest against those of the other side. While there’s value in an adversarial process, it quickly reaches the point of diminishing returns.

People often think that getting the best deal involves fighting for their own needs. The thing is, once you start demanding, the other side stops giving anything beyond what they are grudgingly obligated to give. This can end up canceling potential benefits on both sides of the negotiation.

This is why it’s not as important to win every battle as it is to focus on winning the war. I like to call this “A WAR of Generosity.”

Once you start this kind of WAR, a similar response from the other side often follows. Generous gestures that are not required get people responding favorably instead of reacting negatively. Before you know it, each party outdoes the other with cooperation, good will and generosity.

This may sound like some kind of crazy, altruistic fantasy. However, the longer you’ve been involved in negotiations, the more you see anticipating the needs of your counterpart as a strategic advantage.

In a recent transaction, my sellers and I were in counter-offer on a listing. We asked a potential buyer to increase their offer. They would consider it, but they asked us to include the furniture in the deal. This caught my sellers by surprise, which could potentially kill the deal.

As we learned more about the buyers, we found they were investors who wanted to get the place rented. So instead of digging in our heels, we got generous: We offered to let a rental agent show their property during escrow. That was enough of a benefit to the buyers that they increased the amount of their offer. Both sides got what they wanted.

So next time you want to fight to win, consider A WAR of Generosity and count all the spoils well-earned – and shared – by both sides.

Is The Lease-Option A Good Idea?

rglazer@mcguire.com (Robin Glazer) — Mon, 09 Nov 2009 20:07:14 -0800

Many people have heard of a lease-option, but don’t know exactly what it is, or when it is appropriate. It’s often referred to as “lease purchase,” “rent-to-own” or “lease with option to purchase.”

It is a type of real estate contract (actually three contracts) that is typically between two parties: the tenant (also called the lessee), who will occupy a house or apartment, and the owner/landlord (lessor), who owns the property. A lease-option needs to be in the interest of both parties to work, but in today’s market, it is often an excellent idea to consider.

Typically with a lease option, the lessee would pay an up-front option payment to secure the purchase of the property at a future date for an agreed-upon price (“option contract”). This option payment is usually credited toward the purchase price if the lessee exercises the option. The option amount is negotiable, but is often at least 3% of the purchase price.

During the term of the lease (typically six months to a year), the lessee pays agreed-upon rent to the lessor, and in exchange is permitted to occupy the property (“lease contract”). Often all or a portion of the rent is credited toward the purchase. The rent is typically market rate, but if the lessee makes a smaller option payment, the rent might be a little bit higher.

At the end of the lease term, the lessee has the option to purchase the property outright for the agreed-upon price, minus the negotiated credits from the option payment and rent (“purchase contract”). If the lessee does not exercise the option to purchase the property at the end of the lease, then the lessee forfeits these payments to the owner.

For example:

Purchase price: $800,000
Lessee to pay: $25,000 option payment plus rent of $3,000 per month ($1,000 of which credited toward purchase)
At the end of the year: lessee could purchase the house for $763,000 ($800,000 – $25,000 option – $12,000 rent credited to purchase)
If the lessee does not exercise the option: owner keeps $25,000 plus all rent ($36,000), and would put the house back on the market in a year.

In order for it to work, a lease-option needs to be in the interest of both the lessor and lessee, but in today’s market — particularly in Marin County — this is often the case. Many potential buyers have homes to sell before they can buy, but they may need to move to relocate for work, school districts, divorce or other reasons. With the residential sales market much slower that it has been in the past, buyers may not want to wait until they sell their house before they find their new house (or sell at a loss), and they may not want to have to move twice (rent one place and then buy another later). Other buyers may need to improve their credit or save for a down payment before they buy, and like the idea of an option payment and some of their rent being credited toward a purchase down payment, almost like an automatic savings account.

Owners are also attracted to lease-options for a variety of reasons. If they have been unsuccessful in selling their home for several months, they may want to receive some rent from the property rather than having it sit vacant. And if their ultimate goal is selling the property, they may prefer a lease-option versus a straight lease in order to avoid having to put the house back on the market. In addition, if the seller wants to make repairs or has debts or expenses, the option money can be used for these purposes. Finally, with the uncertainty of the market right now, sellers may find it in their interest to lock into a price now, rather than waiting to see what the market will do at the end of the lease term.

Although lease-options may seem complicated at first glance, it may be the best solution for all parties involved. A knowledgeable Realtor should be able to guide a lessee or lessee simply and easily through this process.

Sausalito Revelations

sfaccinto@mcguire.com (Sharon M. Faccinto) — Mon, 09 Nov 2009 21:22:43 -0800

I used to think of Sausalito as a town for international visitors and yuppies.

Common misconception, it turns out. Sure, it’s a popular tourist draw, but I’m learning that Sausalito appeals to singles, downsizers and now, even families. Here are a couple of facts you may not know about Sausalito.

Whence these revelations? I’ve been enjoying a lot more time in Sausalito lately for work and for fun. The work part entails holding open house at my new listing at 315 Richardson. Also, I take part in a jewelry fabrication class, held in one of Sausalito’s many artisan workshops and taught by world-class jewelry artist Amy Nordstrom. Both of these activities have allowed me to converse with Sausalito locals willing to share their local knowledge.

The famous waterfront stretch called Bridgeway is NOT the local’s main “Main Street.” That distinction goes to the calmer but equally enticing Caledonia Street. This stretch of small businesses and shops contains galleries, restaurants, a grocery store, movie theater and a hardware store. It stretches from the The Taste of Rome to about the Sausalito City Hall and Library.

Another interesting fact: Sausalito has a new(ish), high-perfoming K-8th public charter school with a dedicated parent-teacher community. Surprised? I was. I had heard great things about the Willow Creek Academy, but assumed it was a private school. It’s not. It’s a public charter school. It’s free, and for those who rate their schools based on test scores, it’s high-scoring.

The positive energy and dedication I sense in the Willow Creek community reminds me of some of the other amazing parent communities of Marin’s best public and private schools. There are some distinctions worth boasting about, though:

WCA claims to be the most diverse school in Marin.
Then there’s that whole K-8th thing. Parents of young children tend to adore the K-8 format (perhaps imagining that the middle school phase can be skipped altogether?), but there exists only one other K-8 public school in all of Marin County, and that is the very sought-after, high-achieving Ross School.
For more info on Marin’s public schools go to www.marinschools.org

Some other hidden and not-so hidden treasures of Sausalito:

The Children’s Discovery Museum
Southern Marin Mothers Club
Sausalito Art Festival
Sausalito Historical Society
Le Garage, a French bistro tucked away in what used to be an boat garage. On a balmy day, a harbor-front table can make you feel transported to a little port town on the French Riviera. The food is yummy and easy-going.
A very casual waterfront place is Fish where you’ll get delicious dishes like fish and chips or Thai fish sandwiches, along with an education about sustainable fishing and fish consumption. Their website alone is an education!
There is nowhere better for special occasions than the spectacular Murray Circle and Farley Bar, located nearly at the foot of the Golden Gate bridge, at the Cavallo Point Resort
And could Cibo have the very best cup of coffee anywhere in Marin? Try their slow-drip dark roast or their espresso drinks and see if you agree they’ve got to be in the top 3. Of course, Peet’s may give Cibo a run for their money, if they do in fact open at the waterfront café space across the street as planned.

Not too bad for a little town of tourists and yuppies.

Image courtesy of John H. Kim

Stop! A Condo Conversion Tidbit You Need to Know

aswetland@mcguire.com (Andrea Swetland) — Tue, 10 Nov 2009 12:26:29 -0800

Even an illegal unit in a 2-unit building in San Francisco can block your ability to convert to a condominium.

If the illegal unit has been rented in the past then it can – and probably will – be looked at by city planning as a rental unit. City planning is hesitant to take any rental units off the market, and they are the ones that decide if it is a 2- or 3-unit building.

Make sure you speak to an attorney before you purchase a 2-unit building with an illegal unit.

Community Gardens in Mill Valley

lsalmon@mcguire.com (Lise Salmon) — Tue, 10 Nov 2009 12:36:26 -0800

Yes, it is autumn, but gardens are always abloom in the Bay Area.

One of the real joys of living in the Bay Area is 4-season gardening. With the rains arriving, this is the perfect time to plant carrots, broccoli, kale, chard, and peas ( especially sweet peas).

If you are looking for a place to plant a few seeds and seedlings, try the Mill Valley Community Garden next to the Mill Valley Middle School. This garden was established in 2007 with a mission of helping Mill Valley citizens work collaboratively, experience the rewards of gardening and produce beautiful food. Many of the gardeners share their harvest with programs serving others in need, such as Meals of Marin.

For information on reserving a plot or getting involved in the Community Garden, please contact Stuart Kessler at 415-383-1370.

Another special garden in this town is the Mill Valley Children’s Garden at the Edna McGuire School. This 1/3 acre “classroom laboratory” is used to teach children botany, ecology, science, math, land stewardship and community service. It is supported by the heartfelt efforts of dedicated Edna McGuire parents.

Both gardens are truly a community treasure!

The Real Skinny About All Cash Offers

jrichardson@mcguire.com (Judy Richardson) — Tue, 10 Nov 2009 13:16:51 -0800

I think that most people would agree that in the difficult mortgage world in which we currently live, buyers with all cash offers are typically treated like royalty.

However, that’s not the case in Berkeley. Currently the limited inventory has created pent-up demand. Multiple offers are back. An all cash offer at or just below the list price is no longer attractive to sellers who are now receiving five offers on their properties. All cash offers are being cast aside for offers with larger down payments and much higher offer prices.

Recently I put an offer in on a 3 bedroom, 2 bath in north Berkeley. The house was very cute but needed about $30K in work, so my clients made the decision to go in all cash with a 10-day close and short inspection contingency, but at an offer price just below asking. To my surprise, the house received eight offers and our offer was rejected without even a counter. The sellers ultimately accepted an offer that was all cash but $100K above list price.

All cash offers are still attractive, but only if the offer price is on par with other higher offers in a competitive situation.

Image provided by woodleywonderworks

Let’s Make a (Multi-Million Dollar) Deal

ablakeley@mcguire.com (Amy Blakeley) — Tue, 10 Nov 2009 12:15:49 -0800

A recent San Francisco Chronicle article recognized an increase in default notices in the Bay Areas’ high end markets. Noticeably missing from the list: any of San Francisco’s most expensive zip codes. A quick look at foreclosure stats on this chart shows only a few foreclosures per high-end neighborhood for Q2 2009, and some of those rates were lower than their stats the same period of 2008.

The good news for buyers is that there is an overabundance of high-end properties on the market — a total of 20 on the north side of the City ranging from $4.1 million to $65 million. Although 45% of these properties have had at least one price reduction since they first appeared on the market, sellers still appear unrealistic about what buyers are willing to pay in the current climate.

With a combined average of 225 days on the market, some sellers may be growing weary of the selling process, which, combined with the continuation of low interest rates, makes this an opportune time to aggressively negotiate a great deal on a high-end home.

The Peninsula Humane Society's New Facility

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Wed, 11 Nov 2009 20:12:06 -0800

Yesterday I attended the ground breaking ceremony for the Peninsula Humane Society’s new home. After much debate, it will be located at 1450 Rollins Road in Burlingame.

A no-kill facility since 2006, PHS has become one of the most highly regarded and most well-organized animal shelters in the state. Sadly, the antiquated building had become obsolete and we finally will see a new state-of-the-art facility in 2011.

Ken White, President of the society, spoke at the event, and with much emotion explained that what was once an animal testing site will now become an animal shelter that will house everything from reptiles and birds to poodles.

He announced that the facility would be named “The Tom and Annette Lantos Center for Compassion” Many remember the late Tom Lantos for his unwavering fight for human rights, but few knew of his dedication to animal rights as well.

There were many tears yesterday as Ken White spoke of Lantos’ work towards both no-kill shelters and the Peninsula Humane Society. Tom and Annette rarely were away from their dog Maxco and were fearless when it came to advocating animal rights.

Burlingame Police department’s Police Chief, as well as K-9 Officer Ivan, were on hand to celebrate the event. Many volunteers were there with adoptable dogs. It was very difficult not to take on of these shelter animals home.

Ken White and Supporter

Officer Bryson and K-9 Ivan

Officer Bryson, K-9 Ivan and Phyllis McArthur

Phyllis’ new rescue from a no-kill shelter

Multiple Offers? Says Who?

jmiller@mcguire.com () — Thu, 12 Nov 2009 09:03:28 -0800

A client recently told me that in the Bay Area, according to the newspaper, asking prices and offers are down, foreclosures are up, and this is a buyer’s market through and through.

The newspaper may be right about some of the Bay Area, but San Francisco likes to be unique, and that includes the real estate market.

For example, take the $600K-800K price range in Glen Park. I personally have written 3 offers in the last month that were multiple-bid situations and ended up going $10K, $20K and even $30K over the asking price.

As I learned very early in my career, San Francisco is a city of neighborhoods. Each has its own personality, community, and often even its own weather. So it pays to find an agent that specializes in a particular neighborhood to help you navigate the complexities of the market.

Whether it’s a buyers’ market or a sellers’ market in the Bay Area, San Francisco always has a little of both, depending on where you look. So research, ask your Realtor a lot of questions, and don’t believe everything you read. Well, except this blog of course.

Image of Glen Park courtesy of PhliarShamim

Oakland: The Rebirth of Cool

cfinkle@mcguire.com (Claudia Finkle) — Wed, 11 Nov 2009 21:54:42 -0800

In a city that has been accused of having no there there, Oakland has witnessed a new and vibrant scene in the Uptown Arts and Entertainment District. What started with shivering in your fleece at First Fridays or an occasional good concert at the Paramount Theatre has developed into a full-blown hangout for both hipsters and us old folks :)

There was a time when dressing up in the East Bay was a waste of time. High heels and perfume were reserved for a trip across the bridge. Now join a virtual fashion show at Mimosa Champagne Lounge, the brand spanking new bar on Broadway, or put on your dancing shoes for a worldwide music journey when CaribelinQ presents World Carnival at The Den in the Fox Theater building.

There is no shortage of glamour here. But if you feel like taking it down a notch and going underground, check out visual art studio turned restaurant at Mua where proprietor Dong turned his own studio into a bit raw but exciting dining and drinking venue. The name actually means a place where people are here but they’re in another place.

OK, enough for esotericism.

One of my favorite new spots is, in fact, so new it has not opened. It’s Jim Callahan’s re-creation of the California Furniture Company at 18th and San Pablo into the new home for Piedmont Piano. Jim, a lover and aficionado of all music with a soft spot for jazz, will be opening his store in the evenings for bi-monthly concerts and musical events. Last week he had a great turnout at the preview concert featuring renowned jazz pianist Art Lande and Peter Sommer on sax. I am looking forward to hearing Cuban pianist Omar Sosa who, sometime next year, will be playing here as well.

It may not be Paris in the 20’s or Harlem in the 30’s but, Gertrude baby, welcome to the new millennium where THERE is HERE.

The Fox Theater, a new centerpiece of Oakland’s Uptown
Image courtesy of NeitherFanboy

Destination: Piedmont

kthompson@mcguire.com (Kristen Thompson) — Wed, 11 Nov 2009 22:10:54 -0800

Piedmont is mostly known as a small city in the Oakland hills (population 11,000) with excellent public schools. Piedmont is not too suburban, not too urban, an enclave for many Bay Area families. San Francisco is minutes away, there are lush parks and playgrounds, carpools, nearby shopping, and fantastic trees that canopy streets, giving Piedmont a European ambiance. Most importantly, Piedmont is more attainable for many buyers.

Though only about 3,750 homes make up Piedmont (1.7 square miles), it has been one of the strongest real estate markets in the East Bay. The median list price of active homes in Piedmont this week is $1,575,000 with the least expensive list price at $785,000. There are 19 homes on the market, of which 47% have been reduced in price. The average days on the market is currently 166.

Data like this may indicate a buyers’ market, and certainly a great time of opportunity in a fabulous destination.

Image courtesy of Sam Pullara

A Buyers' Market in Piedmont, Montclair and Rockridge?

amesj@mcguire.com (Jennifer Ames) — Thu, 12 Nov 2009 17:40:39 -0800

According to the current rate of sales versus the amount of active inventory, it remains a buyers’ market, even in highly desirable areas such as Piedmont, Rockridge and Montclair.

The majority of houses in the area are selling with one or two offers. New inventory has slowed due to the holidays and will continue to be light throughout the remainder of the year. Buyers remain uniquely positioned to take advantage of low interest rates, low housing prices and the tax credit recently extended through April of next year.

Here is a market update of these three areas.

Rockridge:

Median list price: $839,000

Average days on the market: 85

Percent of properties listed that have had a price decrease: 45%

Market index: 24 (cool buyers’ market). A market index of 30 indicates that the market favors the buyer.

Montclair and 94611:

Median list price: $870,000

Average days on the market: 135

Percent of properties listed that have had a price decrease: 50%

Market index: 19 (strong buyers’ market). Inventory has tightened.

Piedmont:

Median list price: $1,467,444

Average days on the market: 170

Percent of properties listed that have had a price decrease: 44%

Market index: 21 (moderate buyers’ market). Inventory has been decreasing and prices have stayed fairly consistent over the past few weeks.

You can view detailed charts here

Top 10 Reasons a Home Doesn't Sell Immediately

jdavis@mcguire.com (Jennifer Davis) — Thu, 12 Nov 2009 20:08:10 -0800

When buyers come across a San Francisco property that has been on the market for a month or more, they say, “What’s wrong with this property?” “Why hasn’t anyone made an offer on it yet?”

While buyers may think there must be something wrong with such a property, I like to look under the hood since this could be a real deal.

Why doesn’t a home sell immediately? Here are the top 10 reasons:

Seller does not really want to sell (i.e. priced too high)

Poorly run homeowners association (can be seen in rundown common areas)

Showing restrictions (no weekend showings make it tough)

Odors (e.g. cigarette smoke is very hard to neutralize)

Highly stylized or overdone remodel (narrows the pool of buyers)

Bad photography (buyers search online first, so photos had better be great)

Poor marketing (lack of exposure; poor quality materials)

Clutter (too much clutter and the home looks cramped)

Condition (dirty, rundown interiors deters buyers)

Lack of staging (professional stagers do WONDERS)

All of these factors can lean in your favor if you work with an agent who can sort them out. There can be a goldmine of opportunities if you are willing to take the time to get past the initial perception and truly evaluate your options.

I had a buyer that bought a home after it was on the market for four years! Even with the upheaval in the market, he has a home that has appreciated in value.

What did Goethe say? “Boldness has genius, power, and magic in it. Begin it now.”

Be bold. Buy a home that has been “just sitting” on the market!

60 Day close of Escrow

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Thu, 12 Nov 2009 20:19:31 -0800

Here’s a difficult situation, particularly for those with small children: Ratifying a contract just before the holiday, on a home that is occupied, and closing in December.

Will you close on time? Will the seller move on time? How will it impact the busy days before the holidays? And all of this while the kids are out of school on break? Just a little stressful, don’t you think?

In a case like this, there are some tough choices to be made:

If the buyer and seller agree to closing in 30 days and allow the seller to “rent back,” is there a rental agreement to worry about?

If the buyer and seller agree to closing in 60 days, what happens to locking in a rate? Does the buyer have to pay extra points? Will it be necessary to conduct two appraisals?

If you are looking at an escrow period that lasts more than 45 days, choosing an exceptional escrow officer and mortgage broker is key.

If there is a rent back involved, having an escrow officer who is experienced in the rent back process makes it easier.

Having a mortgage person that also underwrites the loan also makes the transaction less stressful.

With such challenges at the end of the year, it would be interesting to see how many sales for the month of November actually hold out until January to close.

I welcome your thoughts!

"Neighbor to Neighbor" Blog Series: Tree Talk, Part 2

agordon@mcguire.com (Adrian Gordon) — Thu, 12 Nov 2009 20:50:36 -0800

Love and Hate in the Urban and Suburban Forest

A reader of my previous blog post Trees, a Growing Concern, is upset. She is a peace-loving person who would like to see people get along. The blog reminded her of an article she came across in the Marin Independent Journal about a bitter and expensive lawsuit between neighbors in Larkspur.

The dispute, now running in excess of 10 years, pits a homeowner who wants her grove of 45 eucalyptus trees to be left alone against several neighbors who are fearful that some of those trees will crash down on them in a storm. The judge in the lawsuit has ruled that 28 of the blue gums must go.

Is it over now? I don’t know, but I’m pretty sure that a lot of money has been and will be spent by the time it is over, and it will probably be difficult for these neighbors to get along in the future.

As we become more affluent and our properties more valuable, disputes over tree placement and size are becoming more prevalent. Avoiding these disputes, or resolving them before they become white hot, is the ongoing objective of this blog series. Some suggestions toward these objectives are:

When purchasing a home, before you remove the inspection contingencies in your purchase contract, ask the seller in writing if he/she has had any issues with any neighbor regarding the trimming of trees either on the seller’s property or the neighbor’s. Request an answer in writing — email will do. Talk to the relevant neighbors as well to try to establish a rapport before you purchase the home and move in.

If you are purchasing a home where view is really important, take photos of the views at the time of purchase and date those photos. San Francisco and some towns in Marin have ordinances that protect views and try to balance the right to a view and sunlight against the right to privacy and the environmental importance of trees. These ordinances usually provide a framework to allow neighbors to find this balance without going to court. Tiburon’s ordinance goes further. It allows the town government to enforce a resident’s rights to view and light against trees that fit the description of a “public nuisance.”

On the other hand, San Francisco and many Marin towns also have laws that prohibit the cutting down and even trimming of certain trees without a permit. And these laws do not necessarily agree. In Larkspur, a “heritage tree” is a tree “of historical significance” or “which has a [trunk] circumference of 50 inches or more.” In Novato, a heritage tree is a tree with a minimum circumference of 75 inches measured 24 inches above the ground. While Mill Valley protects its redwoods almost as assiduously as its residents, Sausalito, with its emphasis on preserving views, classifies the fast growing coast redwoods as “undesirable.”

As part of your home purchase “due diligence,” you should search the preliminary title report for covenants, conditions and restrictions (CC&R’s), sometimes established by the home developer, that may regulate the growing and managing of trees.

If views are very important to you, you might consider purchasing or trading your neighbor for a view easement with the assistance of an attorney (I touched on this topic in my previous blog). You should weigh the cost of this easement, including attorney fees, against the potential loss in property value if the view is overgrown by vegetation or a human-made obstruction. Your real estate agent can help in this analysis.

Will these suggestions prevent a conflict like the one described above? Not necessarily. Maybe the best advice is don’t move next to a forest if you don’t like the trees. If the forest grows after you have moved in and you don’t live in a town with a view ordinance, then a tray of homemade cookies and a smile may be your best approach.

When thinking about trees and people, it’s good to remember that one person’s sense of privacy, aesthetics and desire for shade may be another person’s blocked view, diminished sunlight, perceived source of fire or toppling danger. If we’re going to get along with each other, a substantial dose of good will and a sense of fairness are essential ingredients.

Image provided by joiseyshowaa

Bernal Heights on the Rise

dvarni@mcguire.com (David Varni) — Thu, 12 Nov 2009 21:31:44 -0800

Recent real estate trends in Bernal Heights make for a unique buying opportunity.

Prices have declined 4% year-over-year (Q3 2009 vs. Q3 2008). For those who put their homes on the market during this time, there has been a high level of stress to price the home correctly and get it sold.

Now that we are heading closer to the holiday season, this stress is greater than usual: there will be fewer people looking for homes, and fewer buyers means the sellers need to adjust pricing quickly. However, this is a great thing for the few buyers that are still looking. It’s deal time!

But don’t expect this downward pressure on sellers for long. Come mid- to late February, we tend to see buyers come back out, generating more competition. The chances for acquiring a property at a good price are waning. In fact, we’ve already seen an uptick in the market in the third quarter of this year. When compared to the previous quarter:

Average price per square foot increased 8% to $585

Average days on market decreased 7% to 55 days

So any buyers looking for a “deal” in Bernal Heights, don’t wait!

Source: SF MLS

Termite Inspection AND Property Inspection?

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Sat, 14 Nov 2009 10:23:37 -0800

Recently some clients and I toured homes in San Mateo. One home in particular (a lovely Tudor) was in pristine condition and perfectly staged. As we sat at the dining room table we discussed the need for inspections. There was already a property inspection that was conducted by the sellers but no recent termite report.

As we chatted I noticed something out of the corner of my eye. It looked like flying ants. They were flying close to the floor and had transparent wings. My clients knew immediately what they were. Termites. I had never seen one in all of my career and was fascinated that these critters were out in the open. As we followed their path we noticed that they were coming from a tiny hole in the corner of the hardwood floor.

Although the home was vacant, it would be difficult not to notice this invasion.

As a seller’s agent, it’s my opinion to always conduct a termite inspection. Some owners have told me they are “cash poor” and can’t afford the expense. There is always the misconception that buyers will always obtain their own inspections, but here are some things to remember:

Termite inspections can sometimes be paid at the close of Escrow.

If your home sells quickly and the buyer finds out there may be subterranean termites, they may ask you for a credit back – or just walk away.

Keep in mind a borrower cannot obtain an FHA loan on a home that has termites or wood-destroying beetles.

It’s always best to have a disclosure (report) from a licensed termite inspector so a buyer knows up front
what to expect.

Recently, a termite inspection was conducted in a north peninsula community that is known for its damp, foggy environment. The home appeared less than perfect on the surface. It needed paint, new floors and upgrades. Amazingly, the termite inspection indicated no bugs, beetles, or termites at all. I was shocked. Having dealt with this termite inspection company for almost 10 years I had faith that the report was accurate. As it turned out, the sellers did not keep up with the cosmetics of the home; however they were acutely aware of the dangers of a coastal community’s pitfalls concerning dryrot and wood-destroying pests. They had as had an inspection 1 year ago and addressed the problems immediately.

That’s one case of a home that was well cared for (on the inside), but as you can see, you can’t always be sure.

Image provided by Velo Steve

What the Heck Are Short Sales?

emartin@mcguire.com (Ernie Martin) — Sat, 14 Nov 2009 10:31:00 -0800

Simply put, a short sale is when a homeowner owes more than their property is currently worth, and in order to sell the property, they need to get all the lien holders to agree to a “short” payoff.

Lien holders are typically the banks that hold the mortgage(s), but in a lot of situations the county is owed property taxes too, so they become a player in the short sale. In the case of condominiums, the HOA is sometimes in the mix depending on much they are owed. There are also judgment liens, general liens, mechanic liens, and other lien types which all need to agree to the short payoff in order for a short sale to ultimately work out.

Short sales are becoming more common in the San Francisco Bay Area real estate market as property values adjust and a lot of home owners are finding themselves underwater on the properties they own. Knowing what they are and how they work is becoming increasingly important as they will make up a larger portion of all real estate transactions in the years to come.

Short sales can take anywhere from 2 to 10 months to complete, or even longer in unique situations. They can be a great way for a patient buyer to buy a property at a discount. They are also a great alternative for a property owner facing foreclosure since the way short sales are reported to credit bureaus is a lot less damaging than the way deed in lieus or full foreclosures are reported.

Stay tuned for my next post: Do I qualify for a short sale?

Is Kent Woodlands Real Estate Recession Proof?

vharlan@mcguire.com (Valerie Harlan) — Fri, 20 Nov 2009 15:29:26 -0800

Kent Woodlands, the exclusive enclave in Kentfield, Marin County, is the neighborhood of choice for the billionaires, movie stars, sports celebrities, rock stars, and more.

Kent Woodlands Market Update
In the last 4 months:

There have been 5 sales between $3.1 million and $9.8 million.

3 of these properties have closed with less than 17 days on the market, 1 closing at almost $1 million over asking, and with multiple offers.

A new listing has come on the market at over $1,000/square foot.

0.6 acre lots with tear downs are closing at over $1.5 million.

Hard to find flat, private, one acre, sunny lots with a one level home, pool, views and plenty of guest parking, like 90 Idlewood Road-, are found in Kent Woodlands.

What Attracts Buyers to Kent Woodlands over Ross, Tiburon or Belvedere?
All of the reasons why we live in California and, in particular, Marin County, are found in Kent Woodlands. Large homes, large lots, privacy, sunshine, pools, lawns, views of the San Francisco Bay and Mt. Tam.

It is because Kent Woodlands offers buyers its own upscale Harrod’s-like market, Woodlands Market, coffee and pastries at the Rustic Bakery, the best Thai restaurant at “R’noh”;http://www.yelp.com/biz/r-noh-thai-larkspur, nationally ranked level USTA tennis at the Mt Tam Racquet Club, Lagunitas Club, or the Ross Valley Swim and Tennis Club?

Or is it because Kent Woodlands is surrounded by the top private and public schools like Marin Primary, Branson, San Domenico with its on-campus Equestrian facility and school bus service to the Marin Country Day School, neighborhood sheriffs patrols, and world-class Mt Tam hiking and biking trails?

Are these the reasons or is it simply Economics 101: low supply and high demand?

View from Kent Woodlands provided by ilya_ktsn

What's Up With All The TLA's?

mali@mcguire.com (Melane Ali) — Sat, 14 Nov 2009 10:58:45 -0800

Three Letter Acronyms. TLA’s.

Realtor’s may love ’em, but buyers and sellers are often perplexed buy the myriad of odd abbreviations that pepper listing descriptions, correspondence, and even conversations.

Why is it necessary to reduce everything to a three letter abbreviation, you ask? My guess is that it’s a habit, left over from the days when expensive, pay-by-the-character classified ads was the primary method of promoting a property for sale. While we now use many other channels to advertise properties, the multiple listing service (MLS) used by all Realtors as a central database still limits the number of characters we can use to describe a property.
So until we Realtors can be trained to use full sentences, without all the TLA’s, here’s a partial decoder list to make life a little clearer while hanging out in real estate land. Keep the list handy and send me a note when you come across new TLA’s!

ARM: Adjustable Rate Mortgage

FHA: Federal Housing Administration

FP: Fireplace (only 2 letters)

FRM: Fixed Rate Mortgage

FSBO: For Sale By Owner (ok, it’s four letters, but still…)

GRM: Gross Rent Multiplier

HDW: Hardwood floors

HEL: Home Equity Loan

HOA: Home Owner’s Association

HVAC: Heating, Ventilation, Air Conditioning (I know, four again…)

LTV: Loan to Value Ratio

MLS: Multiple Listing Service

NOD: Notice of Default

NOT: Notice of Trustee’s Sale

OBO: Or Best Offer

PITI: Principal, Interest, Taxes, and Insurance

PMI: Private Mortgage Insurance

PSF: Per Square Foot

REO: Real Estate Owned by Lender

SFH: Single Family Home

TIC: Tenants In Common

Parking (and Home) Karma

agavzer@mcguire.com (Adam Gavzer) — Sat, 14 Nov 2009 11:08:18 -0800

Have you ever noticed that if someone, on the way to your favorite restaurant, says: “We’ll never find parking!”, sure enough you end up driving around the block, then neighborhood, then zip code looking for a spot?

I’m a firm believer in parking karma, which must begin the moment you decide to drive anywhere. You have to visualize your parking space in the right place at the right time, and avoid all negativity. (I also cross both sets of my fingers on both hands at the same time, but that can be a bit dangerous.) Sure enough, just as you arrive at your destination, you see some guy coming out of the restaurant and step to his car right in front. Rock star parking!

I think this same lesson can apply to real estate. As soon as the decision is made to buy a home, it is so important to visualize what you’re looking for. This process will help you clarify what is most important in a new home, and to allow you to move toward that goal. Your ability to communicate this vision to your Realtor will provide them a clear framework from which to build a tailored search profile.

Try to avoid the defeatist belief that you will “never find a home” in your price range or neighborhood of choice. This kind of real estate market in San Francisco can offer exceptional opportunities for buyers previously priced out of the market, so stay positive and start visualizing your new home!

The same goes for selling. If you focus on the benefits of your home and address anything that you think will be a concern for a prospective buyer, then visualize the right buyer finding your property at just the right time, you will have a far better experience (and outcome) than if you only see the negative. This holds true whether you are facing a difficult market or the boom times are here again.

Staying positive through challenging times is difficult, but will prove to be even more important than when properties sell easily. I’ve seen ups and downs, but have been able to maintain an upbeat, positive attitude throughout it all. You can too!

Caffeine Buzz in Marin

cdenike@mcguire.com (Chris DeNike) — Sat, 14 Nov 2009 10:51:34 -0800

It seems that grabbing a cup of coffee, cappuccino or tea in Marin County these days is as easy as stopping the car.

Whether you are in Corte Madera, where you are given the choice of Peet’s, Starbucks or Tully’s, or in Sausalito where you might choose Fred’s Coffee Shop, it seems that we’ve got it made.

These various roasters offer a variety of services that can include:

A complete lunch (Emporio Rulli in Larkspur, Cibo in Sausalito)

Free wi-fi (Starbucks in Sausalito, Mill Valley, Corte Madera, Larkspur, Marin City, Novato, San Rafael)

Terrific and eclectic atmospheres to meet a friend (Marin Coffee Roasters in San Anselmo, LaCoppa Coffee AKA Bonavita Coffee & Tea in Mill Valley, Taste of Rome, formerly Caffe Trieste, in Sausalito, Fairfax Coffee Roastery and, of course, The Depot Café in Mill Valley).

Recently I read that Peet’s Coffee is in the process of opening a new store in the old Northpoint Coffee Company location on Bridgeway in Sausalito. This would truly be an accomplishment because Sausalito in the past has not allowed “chain businesses” on their waterfront.

Whether on a bicycle, foot or in a car, for those of us who like a jolt now and again look no further than Marin County.

Image provided by AgentAkit

Pilates and Gyrotonic Studio Opens in SOMA

agavzer@mcguire.com (Adam Gavzer) — Sat, 14 Nov 2009 22:15:05 -0800

I attended the grand opening of my clients’ new SOMA venture last night.

Infinite Bodyworks is a neighborhood studio that just opened in the South of Market area of San Francisco at the corner of Brannan & Ritch St, between 3rd & 4th Streets.

I took the opportunity to test out some of their equipment, which is a first for me. Christine was so encouraging as she ran me through some of the basic moves. I kept thinking: “This isn’t so hard! Is it really doing anything for me?” Then trainer Amy showed my associate Alicia and me some other moves involving springs and sit-ups. Well, I can now report I feel it this morning, but not in a bad way. It seems to work on a very subtle, but deep level. My “core” never felt so good!

If you are in the area looking for a great workout, be sure to check them out. Professional, friendly trainers with a great attitude. One-on-one sessions, semi-private or group classes available with introductory rates. Beginners are welcome!

Property Tax Re-Assessment

nicholascooper@gmail.com (Nick Cooper) — Sat, 14 Nov 2009 22:20:25 -0800

Describing the steps to apply for property tax re-assessment and how it can save you money.

Click below to play this video.

Alamo Square

nicholascooper@gmail.com (Nick Cooper) — Sat, 14 Nov 2009 22:33:35 -0800

Alamo Square is one of the best parks in San Francisco. For those of you who aren’t familiar with Alamo Square, it’s located in the “NOPA” (North of the Panhandle) neighborhood. The streets that border the park are Scott, Fulton, Steiner and Hayes.

Most people know the park, because part of it faces the Painted Ladies (located on Steiner) which are the famous Victorians seen on postcards, San Francisco travel guides and, of course, on the intro to the popular TV show Full House.

One of the best times to enjoy the park is at sunset. The views of the sun setting over Buena Vista park and the western section of the city is absolutely beautiful. If you have time, walk the perimeter of the park and enjoy more views of gorgeous Victorians as well as a distinct vantage of downtown San Francisco.

There are tennis courts, a large playground/play structure for children, and half of the park is also an off-leash dog park, so it’s a great place to meet up with other dog owners.

Alamo Square truly is a wonderful park and another reason the NOPA neighborhood is a fantastic place to live.

Image provided by JavierPsilocybin

Getting In (and Out) of a TIC

dsaroni@mcguire.com (Dee Saroni) — Sat, 14 Nov 2009 22:11:27 -0800

Tenancy in common (TIC) is the term used for ownership of real estate by two or more people. It can prove valuable, as it makes home ownership affordable for those who cannot purchase on their own. TICs continue to be quite prevalent in San Francisco.

There are two types of TIC financing available:

Group financing (i.e. blanket loan), which includes all members on one loan.

Individual financing (i.e. fractional loan or fractional financing), making each owner responsible for their own payments.

The trick with TICs is that getting in can be easier than getting out. Fractionally financed TICs are often easier to get in and out. But not so for TICs financed by a group loan:

When the unit sells, it may require the entire loan to be refinanced. This would call for a change in finance charges and interest rates, plus the usual closing costs, etc. The new buyer generally is responsible for paying the upcharge in fees.

Finding a lender can be tricky as well. If the building is new, in most cases a preferred lender is already on board. In other cases, the seller’s loan might be assumable. But be sure to read the fine print.

But what if a buyer pays all cash?

When dealing with a group loan, getting in is easy — the buyer who paid cash helped the group lower their debt load. Upon sale, however, they would need to offer a new financing for the perspective buyer.

When dealing with a fractional loan, buying for cash would not present the same issues. Upon sale, the new buyer would only need financing for the single unit they are purchasing, not the entire building.

There are also financial advantages to each loan type:

Group-financed TICs often have more attractive financing rates.

Fractionally financed TICs might be at a higher interest rate, BUT (and this is a big one!) you are not subject to the defaults of other co-tenants affecting your ownership.

TICs can be complex, so while interest rates are important, this is just a small piece of what you should consider when buying in a TIC.

Leukemia, Lymphoma and Training for a Cure

scramer@mcguire.com (Steven Cramer) — Sun, 15 Nov 2009 19:06:47 -0800

The Leukemia & Lymphoma Society (LLS) is the world’s largest voluntary health organization dedicated to funding blood cancer research and providing education and patient services. It has invested more than $680 million in research since 1949 – over $69 million alone in 2009 – specifically targeting leukemia, lymphoma and myeloma. Last year alone, LLS made 4.9 million contacts with patients, caregivers and healthcare professionals.

I recently joined the Leukemia and Lymphoma Society’s Team in Training (TNT). Over the past 20 years, TNT has grown to become an unparalleled sports training program. It is the world’s first, best and largest charity sports training program, and the only one to offer a full complement of exciting, sports training options. I have opted, for personal reasons, to participate in the upcoming Lavaman Triathlon in Kona Hawaii. I will be doing my part to help. You can too, just click here to donate.

The Mystery of Underground Oil Tanks in San Francisco

rholden@mcguire.com (Roberta Cohen Holden) — Sun, 15 Nov 2009 16:48:17 -0800

When preparing a home for sale, a seller is responsible for completing various federal, state and local disclosures. Several of the state and local requirements cover hazardous waste that includes asbestos, lead-based paint and underground oil tanks.

Leslie Lum, Senior Environmental Health Inspector for San Francisco says, “The cast-iron tanks were installed to provide fuel for heating purposes to homes in San Francisco right after the 1906 earthquake until the early 1940’s when natural gas was again available as a heating source. They were installed mostly in the northern part of town, including the Richmond, Marina and Pacific Heights. Besides providing heat for individual homes, some large apartment buildings situated on corners had large tanks with pipes that supplied heat to smaller homes in the immediate area.”

Les also explained that these old tanks now have to be removed because a lot of them still contain oil, and over time, as the cast iron tank corrodes, the contaminant is released into the environment which can negatively impact soil and ground water thereby creating hazardous waste.

How do you tell if there is an underground storage tank on your property? There are no records of where the tanks were installed, so local regulations require a visual inspection by a Registered Environmental Assessor. There are several indicators of a tank, including:

A bent pipe coming out of the building about 10 feet above ground that is shaped like a candy cane and a fill cap.

An access plate in the ground, around 6-12 inches in diameter that was used as the opening to fill the tank.

Once in a while the plate covering the opening will show the name of the company that installed the tank.

If you’re selling your property, in order to satisfy the state and local requirements, it’s necessary to have an inspection of the site to determine if there is a tank. If one is discovered, it’s the seller’s responsibility to have it removed before the close of escrow. Removal of tanks can cost thousands of dollars.

For more information, visit the San Francisco Health Department website or contact Leslie Lum at 415.252.3915.

Image provided by Lindsay & Wilson Environmental Construction Services

Doyle Drive - Inconvenient But Necessary

apaolucci@mcguire.com (Andrew Paolucci) — Sun, 15 Nov 2009 21:49:18 -0800

SAFETY FIRST
Failing a seismic safety test is never a good sign, especially when the structure failing is responsible for carrying over 144,000 travelers on any given weekday. From crumbling concrete to narrow lanes, San Franciscans have complained about the deficiencies of Doyle Drive for decades. This fall, the city is answering such complaints by beginning construction on a three year, $1.045 billion, massive renovation project.

THE PLAN
If you are one of the thousands who ue this route you’ve undoubtedly wondered where all the trees have gone. Clearing the land is the first step in the renovation, as clearly visible construction has officially begun. The features of the finalized project include:
Center divider barrier to prevent head-on collisions.

Direct vehicular and transit access to the new Presidio National Park.

Vastly improved design to increase safety and expand views of the Golden Gate Bridge ad the National Park.

Expanded transit, carpooling and alternative commute options.

Intelligent Transportation System technologies for toll collection, vehicular safety enhancement and transit schedule coordination.

IMPACT TO ME
Whether you use Doyle Drive for your commute from Marin County or live anywhere near, the impact of construction will have some affect on you. Traffic is not going to be smooth, but will be manageable. The San Francisco Transportation Authority proposes that about 90% of the traffic using the new detour will be distributed over local city streets and through the Presidio on Lincoln Boulevard. Such detours will come later in the project, altering driver routes in 2011 and 2012. If you are a commuter, this gives you plenty of time to tune up that old bicycle in the garge, figure out how to use the ferry, or buy your favorite books on tape for traffic time. If you live in the Marina District, be prepared for heavier congestion on streets in and around your neighborhood.

All said, the new updated plan has many benefits that far outweigh the short-term inconvenience, most importantly safety, easy access, and construction that blends and follows the natural terrain.

For more information regarding the project or its impct on you, visit the website here and watch the video below.

Master Your Curb Appeal

rswann@mcguire.com (Rachel Swann) — Sun, 15 Nov 2009 22:00:56 -0800

You’ve heard the term curb appeal? It’s that excitement you feel about a house when you drive up to it. When you’re a seller, it’s a critical for your home — it sets a positive tone for the buyer before they’ve even stepped inside. And since we’re in the midst of a buyer’s market, if you don’t have curb appeal, you probably don’t have the sale.

Don’t let your home be passed by when a potential buyer dismisses it for its unappealing exterior. Small touches make all the difference. Here are 5 inexpensive things you can do to change your curb appeal.

Add new hardware. Is your lock outdated? Are the hinges rusted? Often hardware is a quick fix to spruce things up.

Paint the front door. View colors online or in your neighborhood. Holiday season? Add a wreath for a festive look.

Add light fixtures. Use lighting to light up the doorway or landscape.

Manage the landscaping. Make sure the lawn is trimmed, add appealing flowers, flower boxes or a fountain.

Clean the driveway or garage of debris, weeds and stains.

Details, details,details are now as important as location, location, location.

Cash Offers: Getting No Respect

szamalin@mcguire.com (Slava Zamalin) — Sun, 15 Nov 2009 22:11:20 -0800

I`ve recently worked with buyers who had a lot of cash on their hands. Wow, lucky you would say! What couldbe better then cash in today`s market? We submitted a fabulous full price/all cash/quick close offer, and yet we got rejected. The seller decided to hold an open house and then look at all offers in anticipation of a multiple interest.

Smart? If you ask me, I do not think so. A lot of sellers out there are still living in a fairy land of multiple offers, but its not always happening they way they want.

So back to my story. We withdrew our offer and my clients took off for the weekend. On Monday around 12pm, while I was out showing properties to another couple, I got a phone call from the listing agent, panicking and almost yelling on the phone that she really hopes that my clients are still interested because she thinks there will be no offers coming in and her client now regrets that he did not accept our offer and he is very frustrated and she does not know what to do.

Okay, I thought to myself, you`ll probably get your offer back, but a few thousand less then what was offered before. Brutal, you`d say? I do not think so. Time was of the essence and they lost their opportunity.

We are in a counter to counter over a few minor items now and my clients could not be happier. But just goes to prove that cash offers, even in today’s market, get no respect.

A Recession Is a Terrible Thing to Waste

pmueller@mcguire.com (Paul M. Mueller) — Sun, 15 Nov 2009 22:35:59 -0800

Contrary to instinct, a recession is not necessarily the best time to avoid acquiring real estate. Quite the opposite, it might be the perfect time to buy.

In times like these, clients typically have a series of questions on their mind:

Will the real estate market continue to decline?

Have we hit bottom?

Will interest rates be lower?

Do I have enough for a down payment and how much will it cost me to carry this property?

Should I buy now or wait?

To be honest, no one can predict with accuracy when the real estate market will hit bottom. The best you can do is try to buy as close to the bottom as possible. (When the media states that we have hit bottom, the prices are already on the way up.) We currently are in a buyer’s market with well-priced inventory, and this window of opportunity will not be indefinite.

This is not a market for those planning to flip properties. But if you are comfortable with the fact that the market prices might drop slightly and you plan to hold this property for several years, don’t sit on the fence — low inventory and low interest rates are making this a surprisingly good time to buy.

Life in the 'Hood – Marina/Cow Hollow, That Is

mmoresi@mcguire.com (Marla Moresi-Valdes) — Sun, 15 Nov 2009 23:08:36 -0800

As both a resident and an active real estate broker, I have to say that the Marina and Cow Hollow districts of San Francisco are arguably two of the most livable neighborhoods within our city. Why? Because everything you need is within a hop, skip, and a jump – no car required. A Vespa or bicycle is nice to have, but not critical.

In the coming months I plan to cover every single topic you can think of about the Marina and Cow Hollow: homes for sale, homes for rent, favorite restaurants, retail shopping, exercise (where to go, how to do it, and how to get results), transportation, and hot spots – you name it I’ll talk about it, so long as it takes place within the ‘hood at hand. If there is anything you’d like to hear about – please let me know because I don’t want anyone to feel like they need to “leave campus” for anything.

Wanna Get Your Grub On?
This month I would like to give a shout out to Jovino. Their menu is diverse, they serve breakfast, lunch and dinner, and honestly everything I’ve ever had there is both good and relatively inexpensive. They are pretty much open around the clock, and there is always a nice, diverse crowd there as well.

I highly recommend their scones (AMAZING), huevos rancheros (YUM), meze platter with hummus and homemade naan (WOW), and their sangria (THE BEST I’VE EVER HAD, sorry CHA, CHA, CHA)! Please check out Jovino – it’s another great reason to move to the ’hood.

Marina/Cow Hollow Current Average Prices – Rentals:

Efficiency studios (no kitchen): $800-$900/month

Studios: $1200-$1600/month

1-bedrooms: $1800-$2200/month

2-bedrooms: $2700-$3500/month
(A parking space will typically tack on $250/month – another good reason to get a Vespa or bike ;-).

Marina/Cow Hollow Current Average Prices – For Sale:

Studios: $415K-$475K

1-bedrooms: $575K-$710K

2-bedrooms: $800K-$1.2M

Single Family Homes (2-3 beds): $1.5M-$2.4M

Until next time…

Image provided by ThreadedThoughts

How's The Market Doing?

jwinans@mcguire.com (James Winans) — Mon, 16 Nov 2009 21:21:04 -0800

I’ve been asked numerous times in the past few weeks “How’s the real estate market these days?”

Since the question usually comes either at an open house or in touring with my buyers clients in South Beach and SOMA, I usually take the opportunity to share how there are many micro-markets within San Francisco and some are perennially active.

For the South Beach and SOMA neighborhoods, I’ve seen a small pull-back in activity since a very robust August/September period. The lower price-point ($400K-600K) is moving briskly while properties around the $1M price range are not moving the way we would like. Prices have declined and sales have been reduced to a level many believe to be about as low as they will go, and these current levels will continue possibly into 2011.

However, opportunities abound for those looking to trade-up or to get into the market for the first time. Interest rates are still at very attractive levels and there are signs that the American economy is slowly rebounding. With the proper research and consideration, this might just be the best time to jump right in.

Man's Best Friend

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Mon, 16 Nov 2009 21:19:09 -0800

Recently a couple that was searching for a home on the Peninsula finally settled on something I least expected.

They wanted a home that was A) close to San Mateo, B) in move in condition, and C) most importantly had a two-car garage. After months of searching they finally made a decision on purchasing… a bit of a fixer with a converted garage.

Why? Their feisty Dalmatian would be able to have a large backyard. It was a spectacular space for their dog, but I never asked them about this while we were looking.

Several years ago another couple looking for a home wanted a 3 bedroom, 2 bath with 2-car garage – NO exceptions. What they ended up purchasing was… a 2 bedroom 1 bath with a 1-car carport.

They literally called me from their car while parked in front of the vacant home. When I drove up to the Oak Knoll Manor area in Redwood City, I was shocked. It was nothing that they had described in what their original search, but it did have a 10,000 square foot flat lot. The back of the home looked like a Lake Tahoe retreat.

They had lived in apartment and wanted to finally get a dog. The property was perfect for that. They assured me it was “the one” and they could build and add on an addition later, and what was important to them is they could finally have a family pet.

When clients are animal lovers, you should never be surprised how decisions can be impacted by the family pet’s needs.

Image provided by Photos8.com

Are Buyers Too Zillowed?

lfleming@mcguire.com (Lea Ann Fleming) — Mon, 16 Nov 2009 14:39:07 -0800

At a recent open house a buyer asked me “how many square feet is it?” Not an unusual question. In fact, it’s often the first question a buyer asks, as if that one answer will tell them everything they need to assess the price. Has our Internet / Zillow / SocketSite society trained everyone that price per square foot is the best measuring tool?

As always I had prepared to answer this question because I know how often the tax records (the most frequently used source for square footage) are wrong. For this particular listing, the tax records showed 2,196 square feet, but the owner had done remodeling with permits. Based on a measurement by an appraiser, I was able to quote 2,631 square feet. The buyer quickly computed the price per square foot based on the asking price. And yet, as he went down the stairs, I wanted to say, what about:

The lot size? In this case it’s 135’ – extra deep in a neighborhood where the lots are often 100 or 120 ft deep. A lot can also be wider than the oft seen 25’; it’s amazing what a difference a foot or two makes. Also, is the garden area accessible, usable, in light or shadow?

The garage? Is it one car, two or more? Again, not part of the square footage measurement.

Remodeled? Buyers look for a remodeled kitchen and baths, but behind the newly painted surfaces, what about new double pane windows, a new sewer line to the city connection in the street, new copper water service into the house, recessed lights, etc.

I can Zillow my own house but the records they rely on are not accurate. The tax records only reflect about half the square footage that exists according to an appraiser. The comps used to compute value may be equally flawed.

The moral of this story is if you want to know the value of a property — your own or one you are thinking of purchasing — ask an informed source like an appraiser or a Realtor representing your interests. Price per square foot is only the tip of the iceberg.

Burlingame Park Historical Studies Recommended by Planning Commission

mteixeira@mcguire.com (Mary Ann Teixeira) — Mon, 16 Nov 2009 15:22:45 -0800

Early in September, Sarah and Rawson Groves-Hobart were ecstatic. They had engaged with a potential buyer on an all-cash deal to sell their home at 1540 Newlands Avenue in the Burlingame Park neighborhood.

The prospective buyer made an inquiry to the Burlingame planning department regarding what kind of permits he would need to add another story to the home. City officials told him that because the house was more than 50 years old, any changes to it could require environmental review under the California Environmental Quality Act. Before the planning commission would take any action, he would need to procure an historical assessment of the property, costing $3000.

Wanting to complete the sale, the Groves-Hobarts paid for the independent historical review. It was determined that the home had no historical value, but it came too late – the buyer had already withdrawn his offer.

To avoid such deal-smothering red tape, two other sellers have already commissioned an independent firm to determine whether their property has any historical significance.

Image provided by InfoMofo

Buyers and sellers fear that a precedent has been set. It now seems clear that owners of any home in the Burlingame Park neighborhood that is at least 50 years old will be forced to fund a report on their property to go before the planning commission for approval of improvements.

That could change.

On Monday, November 9, 2009, the Burlingame Planning Commission moved to request the City Council fund a widespread historic resources report for Burlingame so that individuals do not have pay the expense on individual property and rulings are consistent throughout the city.

Bill Meeker, Community Development Director, said early estimates indicated this report would cost $50,000 or more, and the council would need to pull the money from the City’s general budget. Officials this year have frozen virtually all new spending and cut services in response to a $4 million deficit.

Burlingame Public Library provided by Loren Javier

When the Burlingame City Council examined this issue in the past, there has been disagreement on the benefits of financing a city-wide historical report. However, the council will change on December 7th with current Planning Commissioner Michael Brownrigg replacing five time Mayor and Councilwoman Rosalie O’Mahony.

Past and future city council members were all present at Monday’s hearing but said afterward they needed more details on the survey before deciding whether to endorse it.

TIC Nuts & Bolts for First Time Buyers

jchapin@mcguire.com (Jason Chapin) — Tue, 17 Nov 2009 10:48:26 -0800

What is a TIC?
We use the term TIC loosely to refer to a type of property, but TIC (Tenancy In Common) describes a form of ownership, and it is really an estate-planning tool. It is how two or more people hold title when they want to specify or account for fractional interests. You can imagine that investors would prefer this type of ownership.

We use the term TIC to refer to an individual unit within a multi-unit building where owners must hold title as Tenants In Common. In San Francisco there are strict limits governing the conversion of multi-unit buildings to individual condos. So, for example, when there are three parties interested in buying separate units within a three-unit building, they can take title as Tenants In Common and behave as though each owns their own specific unit. We would describe each unit as a TIC, but it’s important to remember that we’re talking about the form of ownership.

How is a TIC different from a condo?
A condominium is a legally subdivided parcel. When you buy a condo you take title to that whole parcel separate from other condo owners. You can encumber your interest with a residential loan as you see fit. A TIC isn’t a separate parcel from the whole building, and though your interest is a specified fraction, you share title with other TIC “tenants.” To secure a residential loan all tenants would work together as the loan would be secured by the whole building.

TIC members develop legal agreements fractionalizing interests among the owners, defining exclusive use areas for each unit and creating budgetary and operating guidelines for the whole building and common areas.

What are the risks associated with buying a TIC?
Buying a TIC in this or any market bares additional risk. They are less marketable, which is why they’re more affordable. You can finance a condo, single family home, or multi-unit building (up to four units) with a residential loan. Strictly speaking, you cannot finance a separate TIC unit (a fractional interest) with a residential loan. To secure a residential loan all “tenants” would have to work together and underwrite the whole building. They would be underwritten as a group and share liability to the loan. The downside to this is that all four owners become equally liable. In essence, group loans impose shared liability.

In the early 2000’s a few local lenders created fractional financing for TIC ownership to fill a need in this segment of the market. These lenders will write different loans for each TIC unit, making each owner liable solely to their own loan. This eliminates the risk associated with a group loan.

On the other hand, there is no secondary market for a fractional TIC loan. They are not considered residential, so they cannot be sold to Fannie Mae and they’re not as marketable to Wall Street. Their relative interest rates are higher than residential loans and so far fixed-rate terms are not available.

Fractional TIC loans eliminate the risk associated with a group loan. However, they introduce risk associated with higher rates and adjustable rate terms. There is also a risk associated with having a relatively new kind of loan that is not guaranteed to exist for future buyers. (See further implications of group and fractionalized loans here.)

What are the benefits of buying a TIC?
There are two primary benefits. First, their respective prices are lower. Generally, TIC prices are lower than condo prices by 20% – 35%. Additionally, there are circumstances where owner-occupants may bypass the condo conversion lottery system. This improves marketability and creates individual ownership. In these cases, TICs can represent interesting investment opportunities.

The second benefit is that in certain neighborhoods – older neighborhoods where new development is rare – TICs represent an large pool of inventory. Most of San Francisco’s multi-unit Victorian buildings have not been converted to condos, so buyers interested in this style have more opportunities in the TIC market.

Walk Score and Real Estate Values

smartin@mcguire.com (Stasi Martin) — Mon, 16 Nov 2009 22:57:47 -0800

“Walkability” has recently become a buzzword in real estate, especially in progessive, environmentally conscious cities. In fact, I’ve noticed that, in this market, homes with high walkability scores can be easier to sell.

Walkability can now be measured automatically. Visit WalkScore.com and you’ll see it in action.

How does this service define walkability? It generates a “Walk Score” that measures the walking distance of a house (or particular location) to any number of destinations like grocery stores, dry cleaners, post office, major public transit (e.g. CalTrains or BART), restaurants, cafes, etc. A score is measured from 0 (car dependent) to 100 (most walkable). The higher the walking score, the higher the walkability.

How does a walk score relate to real estate values? The greater the number of buyers that are interested in a home for sale, the greater the home value. Buyers in San Francisco often want to feel they can have easy access to local amenities; in fact, this is typically one of the top 10 criteria when buyers narrow their focus on where they want to purchase. In fact, a recent study concludes that one point of Walk Score is worth up to $3,000 depending on the metro area. See study (PDF).

Who rates the walkability of a location? Walk Score was launched in July 2007 by “civic software company” Front Seat. It has a grant from the Rockefeller Foundation and is an independent system set up to promote and encourage walkable neighborhoods. Realtors such as myself have found it to be an important tool that offers value to a home in a particular neighborhood. Visit www.walkscore.com to learn the walkability of your home.

Here are a few fun Walk Score facts:

Overall score of San Francisco is 86

San Francisco is the highest-ranked city in the US; New York is 2nd (Walk Score: 83)

The top San Francisco Walk Score location is Chinatown

Dollar value assigned to 1 point of walk Score in San Francisco: $2,985

The Future Is Looking Green

jhoffman@mcguire.com (Jason Hoffman) — Tue, 17 Nov 2009 10:38:49 -0800

San Francisco commercial buildings are blazing the trail for green building, and I believe that the “greenification” of residential San Francisco homes will soon inspire as well.

On Sunday, The Chronicle reported on the green trend and its infiltration into green residential homes. Since 1997 the Bay Area has set a precedent in green building. The Gap’s headquarters in San Bruno, CA had one of the first and best-known commercial-scale green roofs in the United States. The 62,000 sq/ft roof still reduces the structure’s carbon footprint.

Last month the San Francisco Public Utilities Commission broke ground on its future office. The 13-story glass tower is purported to be the “the greenest urban office building in the U.S.” The planned 277,000 sq/ft building will:
*Utilize solar panels and wind turbines to generate electricity

Recycle rainwater and gray water

Window position and light bouncing techniques will maximize daylight and increase worker productivity

Feature low-flow toilets and waterless urinals

Reduce water consumption.

Image courtesy of KMD Architects

Granted, it is easier for the large commercial consumer to “go green,” but what about the little homeowner? The more commercial projects, like the SFPUC, incorporate green innovations, the cheaper manufacturing becomes. Consequently, home owners will start to see a trickle-down of more cost-effective, energy saving and environmentally friendly products. These features will be an add-value to homes, both in energy-savings and uniqueness.

Though it may take some time for technology to find its way into the local hardware store, there always is room for simple green improvements:

Sealing cracks around doors and windows

Adding insulation

Using daylight for lighting

Replacing traditional lights with LED and compact fluorescent lights

Turning off/unplugging appliances

Adding a tankless water heater

It may be several years before San Francisco dons turfed rooftops, as does the California Academy of Sciences, and wind turbines, but change is coming. Expect to see great green strides in residential homes in the next few years. If you want to know what is next, the answer is blowing in the wind.

Stealing Great Homes in Marin

rzipkin@mcguire.com (Roger Zipkin) — Tue, 17 Nov 2009 11:05:08 -0800

The information permeates the newspapers, TV news, topics at social gatherings, even simple conversation in line at Woodlands Market. Home inventories are up, sales are down, rates are low and it’s a great time to steal a home. The best of the best in Belvedere, Tiburon, Mill Valley, Greenbrae, Ross, Kentfield – where ever in Marin – is now obtainable, and priced well under market! But it’s rarely easy.

I work at an open house every Sunday. I’m very particular about what home I’ll work. The price point, the ambiance, the flow, location and setting, just to start. It’s like being a buyer, just not as personal. Every Sunday the question comes: “Why can’t I find a great home that’s a steal?”

A simple analogy: How often do you walk through city streets and find a dollar bill? Once a year? Once every 3 years? It’s extremely rare. Finding a steal of a home is like that elusive dollar. Simply finding “the” home is difficult enough in Marin, and you want to do so at 20% under current market with the best of rates? Best of luck.

It’s true, there are some really great buys to be had, but you need patience, due diligence and a really good agent working in your behalf. At the end of the day, a “steal” needs to be defined and understood in a very personal sense, framed by specific market and personally relevant information. Ultimately it is much more than just finding a dollar.

Image provided by mwilkie

Mount Tamalpais Wonders

sfaccinto@mcguire.com (Sharon M. Faccinto) — Tue, 17 Nov 2009 11:30:55 -0800

The Leonids: At 4:30am this cold, clear morning, my family and I stood on a Mt.Tamalpais trailhead above Mill Valley, in the dark, gazing at the starry sky. Cold, eucalyptus and bay laurel scented air. Coffee in thermos. Kids in pajamas and down jackets. All of us oohing and aahing at the spectacular meteor display as if we were watching the Fourth of July fireworks. Every few seconds, a streak of colored light bright as an emergency flare would shoot across the sky. In between, tiny “falling stars” dropped through the air vertically, like so many crystals falling from a chandelier.

Image of Lenoids by Velo Steve

Driving home this morning as the sky grew light, I reflected on the reading I had just attended a few days before by the authors of the beautiful new book Tamalpais Walking by Tom Killion and Gary Snyder. How true what they said: Tam is truly a “lived” mountain, and one whose incredibly varied biozones make it unique in the world. I would add that, being flanked by such towns as Muir Beach, Stinson Beach, Mill Valley, Larkspur, Ross and San Anselmo, provides it with an adoring population who thrive on having trails right outside their back doors.

Tamalpais Walking, beautifully illustrated with Tom Killion engravings, is a wonderful collection of Mt. Tam fact and lore, oral histories, and the poems and lively stories of renowned poet Gary Snyder. The reading was to benefit the O’Hanlon Center for the Arts, a quintessential old Mill Valley art center known for lively drop-in art classes and a warm and friendly gallery space.

Just two little facts from this wonderful book:

Before the dominance of the automobile, thousands of people ferried over from San Francisco and Oakland on weekends — many of them German, Swiss and Austrian immigrants who brought a hiking culture with them, including the custom of singing as they hiked. These groups disbanded during WWII. After the Golden Gate Bridge’s completion, car culture came to the mountain.

Co-author Gary Snyder first described hiking here in 1949, and later brought his friend Jack Kerouac on many rambles around Tam. Jack returned the favor by writing him into this Dharma Bums as Japhy Ryder. Buy it from your local bookseller and enjoy.

See you on the trails.

Bolinas Ridge Sunset (2009), size: 14×17, by Tom Killion

The Whys of A Home Warranty

amanning@mcguire.com (Anne Manning) — Tue, 17 Nov 2009 21:46:29 -0800

I strongly support the purchase of a home warranty for homeowners. The coverage provides a savings to the homeowner on the bulk of the cost of repairs on specific items within the home. A few things you should know about home warranties:

There is an annual fee for the basic home warranty plan and a flat rate fee per each request for repair services

The home warranty company has service agreements with local service technicians that respond to each of their customers service request

There are options to purchase that include additional items that are not covered in the basic plan

I favor a company that provides me a report each time a client of mine has a service request. In this way I can check in with my clients to obtain their feedback about the repairs. I like First American Home Warranty. Their basic plan for a single family home costs the following:

Annual warranty: $365

Service call fee is $55.00

A first class upgrade, which allows for a higher level of accessories, is $70 for buyers

Seller’s coverage is $0.74 per day with an upgrade at $0.19 per day.

If a service technician cannot repair an item, then a request to replace the item is called in to the home warranty provider for approval

I have gotten involved with discussing the replacement of items with the service providers for my clients. A client of mine, a seller, received:

A new dishwasher

A new automatic garage door opener kit

A new countertop range

A new doorbell (including wiring)

The cost to remove the old items and install the new items far exceeded the cost of the coverage. In this transaction the buyers benefited by:

Not having the service call cost on their own home warranty plan

Not having to schedule time off for the service technicians

The benefit of immediate use of these newly installed items

The sellers benefited because their cost was minimal and the newly installed items assisted in:

The presentation of the home to the market

Obtaining positive feedback during the open house

Obtaining offers free of request for repairs on those specific items

Reaching their goal: the sale of the home.

Some companies periodically add items that they will cover within plans, and I am not afraid to ask a provider for assistance on specific items. I recently got a yes for a client’s Sub-zero refrigerator repair. I do recommend that clients renew the home warranty each year to ensure the ongoing potential savings benefit.

Image Is Everything. Or Is It?

bhoolhorst@mcguire.com (Bill Hoolhorst) — Wed, 18 Nov 2009 14:57:06 -0800

Ken Auletta recently published his newest book Googled: The End of the World as We Know It. At a recent speech he made at the Google headquarters in Mountain View, he referred to Microsoft as a company of cold businessmen, and Google as a company of cold engineers. (Of course he was going for effect with an exaggerated profiling of techies.)

Similarly Tuesday’s Non Sequitur comic was again making fun of engineers by claiming that the most anti-social people in the world are the ones who created all those social networking programs.

Sometimes groups enlarge get a bad rap. Which leads me to real estate.

An August 2009 Gallup poll rated the American public’s image of 25 major businesses and industries (most positive to most negative). To my surprise, real estate was number 22 out of 25, just below the legal field and banking. What gives?

How did we Realtors get profiled in such a negative way? My observation from the inside is that the real estate industry comprises an extremely honorable group of professionals. Individually, are there a radical few that give us a black eye? Or globally, is it an industry public relations issue?

I can use some enlightenment. Let me know what you think.

Pastel by B. Hoolhorst

Marin Buyers are Hot for Distressed Properties

sstephenson@mcguire.com (Stacey Stephenson) — Thu, 19 Nov 2009 15:42:39 -0800

After analyzing Marin’s Multiple Listing Service (MLS) data today, it appears buyers in Marin are certainly seeking out and increasingly going into contract to purchase distressed properties.

Distressed properties are those that are flagged on the MLS as either:

In Foreclosure

Notice of Default (NOD)

REO (bank owned)

Short Sale

As you will see below, distressed single family homes currently for sale makes up about 10% of the total number of houses for sale, but they make up nearly 45% of the total number of houses in contract to be purchased. For condominiums, the percentage of distressed properties is substantially higher for those both active and in contract.

Total

Distressed

Non-Distressed

Single Family Residences:

Active (for sale)
702

77

625

Pending/Contingent
337

146

191

Condominiums:

Active (for sale)
172

46

126

Pending/Contingent
138

90

48

If you’d like any additional data on distressed properties in Marin check out www.MarinDistressedProperty.com.

Pros and Cons of a Condo Converison

godom@mcguire.com (Gina Odom) — Fri, 20 Nov 2009 14:57:09 -0800

There is a new condo conversion in West Berkeley currently offering 2 units for sale:

1 unit is remodeled and listed for $265,000 and just went pending

1 unit is offered “as-is” and is listed for $245,000

Currently these units are the lowest priced 1 bedroom condominiums listed in the MLS in Berkeley. Several of my buyers in this price range have expressed interest in these units. Why? Because it’s the best bargain in Berkeley for first time home buyers.

Condo conversions often provide the perfect entry-level opportunity for renters to become homeowners. Why rent when you can own something, build equity and hopefully make a return on your investment? Condo conversions tend to be cheaper than other units on the market and definitely cheaper than new construction. From a developer prospective, it is cheaper to invest in a conversion than to buy vacant land and build something on it. Often times, once a developer acquires an apartment complex, they will offer a discount to the current tenants to buy a unit. The tenant feels like they are getting a better deal than other buyers and the developer gets the ball rolling by selling units quickly.

So what should a buyer think about when considering a condo conversion? A condo conversion is much different than buying a newly constructed unit. New construction is built from the ground up and is constructed with new building materials and stricter building codes than in the past. It’s a good idea to ask many important questions like:

When was the apartment building built?

Was it recently or in the 60’s?

What exactly did the developer do during the conversion?

What exactly was replaced in the building?

What type of sound proofing was installed to maintain noise control between units?

How old id the roof?

It’s also important to speak to your lender if you want to make an offer. FHA guidelines state that buildings of 4 units or less, newly converted or not, are not FHA approved. Therefore, a potential buyer must get approved for conventional financing and have a down payment of 20%. Also, in a four unit building like the one in West Berkeley, there must be three units sold or in escrow in order to close. This can be tricky and requires a certain amount of patience on both sides. However, with patience and little creativity, this could be a great opportunity for a first time home buyer.

Do I Have to Read That Big Stack of Condo Documents?

smortenson@mcguire.com (Susan Mortenson) — Thu, 19 Nov 2009 15:47:39 -0800

When you’re buying a San Francisco condominium, I hate to say it, but yes.

Chances are your real estate purchase may become one of your largest assets. So it would be wise to read all of your condo documents. A good agent representing you will read them too, and draw your attention to any red flags. Yes, quite a few of the documents are boiler plate-type documents, but there’s a lot of value there.

Here’s a quick guide to the most critical documents you’ll need to review when buying a San Francisco condo:

The Sellers Transfer Disclosure Document (TDS) and the supplemental TDS (Sup TDS) will give you some of the best historical insights, directly from the seller

The 3-R Report, produced by the City and County of SF, will give you an idea if any permitted work was done on the unit or building. It’ll give you great insight into the history of the condo you are about to buy

The governing documents – Covenant, Conditions and Restrictions (CC&R’s), By-laws, and Building Rules – give great insight into a variety of topics (e.g. Can you lease out your condo? Are there pet restrictions? Can you wash your car on the premises?).

My favorite document is the 1 year of meeting minutes. It gives you insight into many of the intricacies of living with other people:

How well people in the building get along?

How well run is the building?

what problems individual condos or the total building has had in the recent past?

What type of corrective action as a group do they take?

How they spend money? Are they a frugal group, or do they throw money at a problem to make it go away? Because some of that money is yours from your monthly dues.

Finally, take a look at the amount of reserves on-hand – and a Reserve Study if they have one – so you know what type of expenses you may be facing in the next few years, or possibly decades.

So as you can see, only by reading each document can you truly get a complete picture of your new, largest asset.

Image provided by gregoryjameswalsh

College Madness

sfaccinto@mcguire.com (Sharon M. Faccinto) — Sat, 21 Nov 2009 17:56:00 -0800

Let’s face it: the price of Marin property is directly linked to that elusive thing called Quality of Life. Economists know it, though they lump it into “demand,” along with factors like the availability of credit and jobs. All quite important, but as a Marin Realtor, homeowner and parent, I know why buyers buy in Marin in good times or bad. It’s quality of life – security, scenic beauty, community involvement, and especially, great schools.

So, what is it like to take kids who grow up in Marin and launch them into the real world? Many of the buyers I work with move to Marin with very young children. They know they’re joining high-achieving areas with high expectations for students, but may not be aware that it can get rather intense toward the end of high school. That can be a good thing or a bad thing, but it’ll be upon you sooner than you think:

College Application Madness.

It sneaks up on you. Just a few years ago my little guy, resplendent in yellow t-shirt and home-made teddy bear-pilot bolo tie, squeezed my hand for courage as we crossed the vast blacktop playground to his first day of school at Neil Cummins Elementary. Calming himself with a few deep breaths after dodging some big scary 2nd graders, he said quietly, “You know, I think this is going to be just fine.”

Fast forward to September ’09, walking across the UCLA campus. Calming ourselves as we dodged some rowdy seniors, our son bounced up the walkway ahead of us, brimming with enthusiasm, happy to be exactly where he was. I squeezed my husband’s hand for courage and recalled my son’s brave little voice from 13 years before. It really had turned out just fine.

But in between, we didn’t entirely avoid that special kind of madness! Anxious and ambitious parenting has apparently become something of a trend in many communities (for an interesting discussion on that, explore: campuscalm.com and challengesuccess.org), but somehow, my husband and I were latecomers to this trend. I didn’t even know that some parents consulted private college counselors as early as freshman year. Some common strategies for students aiming at top college include:

Picking high school classes for maximizing grade point averages

Choosing certain elite-college-tracked sports

Racking up impressive summer activities

Preparing early and well for the SATs

Latecomers yes, but we weren’t entirely immune: by the end of our son’s junior year, we went from laughing at the few obsessively managing parents we knew to wondering if it was too late to change our approach, best deemed “see where your own hard work along your own path leads you.” Suddenly, it seemed almost negligent.

Yet somehow, my children seem to be finding their own enjoyable and challenging paths. One found the perfect fit at UCLA; the other, a high school senior, has good reason to expect some of her college choices will welcome her with open arms. Yet neither of them are elite athletes. They have not saved any small African nations, or earned over a 4.0 GPA. To put this in perspective, the average GPA of this year’s freshman class at UCLA was 4.36 (admissions.ucla.edu). No, it’s not grade inflation. It’s what happens when the bar for success is set higher and higher, and more advanced classes are made available to high school students.

Looking back I can honestly say my children were so busy I don’t think I could have added any resume-building activities. They were just growing up, being kids, participating in family and neighborhood events, playing with friends, reading, studying, tackling big school projects. They enjoyed little league, art, guitar, piano, ballet — and not for honors or awards. They even were responsible for a few chores (a tradition frowned upon in many quarters, I found). No professionals were consulted, yet it has all worked out just fine. But here’s a thing or two I learned during our time in College Madness:

College ranking and prestige are far less important than finding the right fit for your student. Three great tools for students to see what life on campus would actually be like? Rate My Professor, the Princeton Review and Google Earth).

Students graduating from Southern Marin’s public high schools the past few years attend top-tier schools in about the same numbers as private school kids do. I’ve also noticed that the vast majority of those heading to Ivy League schools are recruited athletes who also have very high grades and test scores.

Colleges evaluate applicants from different areas differently. And guess what? Kids from Marin are among those held to the highest standard. Growing up in safe, inspiring areas full of cultural and academic opportunities, with the support to fully explore them, is, sadly, not the lot of every student. College admissions folks take this into consideration and attempt to balance each class regionally, socio-economically, etc. Makes sense. And explains number 2, above.

Applying is a lot more work than it used to be. Today’s high school seniors generally apply to 7 or more colleges, following advice that 2 colleges should be “safeties” or surefire admits, 3 should fall into the “probable admits” category, and 2 should be “stretches.” Does this skew the statistics posted by colleges about how selective they are? It sure does. Come spring every year, the high school halls are buzzing with news of rejections and acceptances on a daily basis. Most kids have at least a couple of acceptances to choose from at the end.

So there is a little bit of information from the trenches. If it’s expert advice you’re after, there’s plenty of it out there. But I hope you’ll figure out a way to provide good guidance while managing to avoid College Madness entirely. Don’t say you weren’t forewarned…

The author’s son (left) and friend in Kindergarten and at graduation from Redwood High School.

HOA Stories Pt. 3

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Fri, 20 Nov 2009 15:14:57 -0800

All condo buildings and PUDs have CC&Rs. It is vital to read everything in these documents prior to removing a Property Condition Contingency. The rules of a PUD are usually to protect the “quiet enjoyment” and aesthetics of the complex.

In many of these complexes on the Peninsula there are the obvious rules such as pet restrictions, parking rules, and noise factors.

One of the more obscure rules is the restriction regarding hanging your laundry on a clothesline in your private patio or backyard area. The purpose of this rule is so that your neighbor does not have to look at unmentionables flapping in the wind if the are sitting by their window.

But now that the conservation of energy is top of mind for many people, it could save a lot of electricity and energy costs if a PUD could change the rules regarding hanging out your laundry.

Once such PUD in Foster City has done just that. The board of directors has voted to change the rules to allow homeowners to hang their laundry out in their own tiny private backyards. Each homeowner must vote to approve this new rule.

While visiting a friend in this complex she had mixed feelings about the new rule change. While her home faces the bay, her master bedroom faces her back patio area AND part of the next door neighbor’s patio.

I ask you as a homeowner or potential buyer of a PUD: what would you do? How would you vote?

One Hawthorne: New Boutique San Francisco Tower Opens in 2010

jdavis@mcguire.com (Jennifer Davis) — Mon, 23 Nov 2009 09:21:16 -0800

A new San Francisco development will be opening in Downtown San Francisco in early 2010. It will be known as One Hawthorne, located at the corner of Howard and Hawthorne Streets. Compared to The Infinity at 656 units, One Rincon at 709 units and The Millenium at 419 units, One Hawthorne is a boutique building offering just 165 units.

One Hawthorne will have condos ranging from junior 1 bedrooms to 3 bedroom penthouses. Pricing can only be estimated right now as ranging from the $400,000s to $2,000,000.

And pricing will be key. The South Beach and SOMA developments that listened and responded to the market in 2009 were rewarded with plenty of buyers. For example:

The Infinity has less than 50 units available after selling an average of 40 homes a month (making it one of the top selling development in the country)

One Rincon states to be 80 percent sold out

Other nearby developments such as The Montgomery have only a few unit left for sale.

One Hawthorne is positioned well as an alternative to the larger towers in South Beach and SOMA:

Located on a quiet(er) historic block in Downtown San Francisco

A rooftop garden for residents

A new restaurant Benu (from the former chef de cuisine of French Laundry) is opening right on Hawthorne Lane.

As the debate continues on whether or not we have hit the bottom of the market and starting a recovery, the sales at One Hawthorne will be an exciting indicator. It is looking to be a gorgeous development with the best of the city’s amenities. One Hawthorne will a welcome beginning to 2010.

San Mateo’s Hillsdale Mall Welcomes Trader Joes!

cduncan@mcguire.com (Christine Duncan) — Sat, 21 Nov 2009 18:14:38 -0800

The meeting of two great institutions: Trader Joe’s and the Hillsdale Shopping Center in San Mateo.

For many years, the only neighborhood grocery store in Westwood Knolls has been Mollie Stone’s on 42nd Ave, but on October 30, 2009 Trader Joe’s opened its doors to local residents of Westwood Knolls and neighboring San Mateo areas, who couldn’t be more pleased. Not since Petrini’s was located on 31st Ave at the Mall has Hillsdale been home to a grocery store.

The Hillsdale Mall has had many transformations over the years, with stores coming, going and moving like Sears, which recently moved from Hillsdale Blvd at El Camino to the Emporium locale at 31st Ave and El Camino.

Trader Joe’s is expected to have a very long stay in this Westwood Knolls neighborhood just as Petrini’s did many years ago.

San Mateo Park Mysteries and History - Part 1

mteixeira@mcguire.com (Mary Ann Teixeira) — Mon, 23 Nov 2009 09:09:52 -0800

Imagine. Another beautiful peninsula spring day. Radiant blue skies host puffy wisps of clouds. Verdant green rolling hills are topped with flowering trees, and California poppies flop about in a light breeze.

Except it’s May 1902.

San Mateans pass sedate Sunday afternoons watching trotters cruise the circular race race track at the Clark Dairy’s horse field. Horse and buggy riders scurry down the tree-lined El Camino streets, eager to get home from church to Sunday supper.

The Sunday newspaper announces another turn-century-land deal with the headlines:

SAN MATEO PARK… Very Desirable… AT AUCTION — 97 VILLA LOTS… to be held May 10, 1902
Auction to be held at the platform at Liberty Hall, 2nd and B Streets. Southern Pacific railroad will run three special excursion trains from San Francisco for 60 cents round trip. The first one-hundred ticket buyers will be entitled to a free lunch at the elegant Union Hotel on 3rd and Baldwin in downtown San Mateo.

The area up for auction was modern day San Mateo Park. Mr. Clark had been deeded the 200 acre parcel for legal work he completed helping William Howard convince the U.S. Land Commission of Howard’s right to the title of 6,000 acres of land granted to him by the last Mexican governor of California, Pio Pico. Howard’s original parcel included Hillsborough, Burlingame and San Mateo Park.

Howard paid a mere $54,757.70 for the entire land grant. Clark was hoping to get a lot more.

The terms of the auction were:

One-third cash

A 10% deposit at the fall of the hammer

An interest rate 7, or 5 if the purchaser accepted a bond for the deed

The balance was due in one or two years

The principal and interest were payable in United States gold coin

The nearly 700 people who arrived for tours of the property that was to become San Mateo Park were delighted with the already 20 -foot tall trees and smitten with the bright green circles and oval planted beds. A Scottish gardener named John McLaren had worked with Howard to establish islands planted with trees representing separate countries. (Yes, this is the John McLaren who also transformed hills of sand to the now-acclaimed Golden Gate Park in San Francisco). Many of these landscape-designed islands within San Mateo Park provided prospective buyers that day with shade.

After tramping the turf and sighting the lot lines, prospective buyers climbed back into the rigs and headed downtown. Following a sumptuous lunch, the convivial crowd convened around the auctioneer J.P Baldwin.

Mr. Baldwin took the platform and promptly put on the block what was declared to be “The Best Lot in San Mateo Park.”

After spirited bidding, H.H. Lynch, superintendent of construction of the United Railroads of San Francisco, demonstrated his faith in San Mateo Park by upping the bids to $1,825.

On that May day in 1902, 53 lots were sold, far short of the 97 “Cracker Jack Villa Lots” that were offered for sale.

The combined sales figures of those 53 lots ran to $51,350, nearly $1000 per lot. The lowest priced lot went for $755. As of today, November 21st, 2009, there are 4 single family homes on the market, the average asking price is $1,870,750, and the average lot size of those 4 homes is 9,250 square feet.

Most buyers would be delighted with that selling price in San Mateo Park today.

So Thankful for San Francisco Real Estate

aswetland@mcguire.com (Andrea Swetland) — Wed, 25 Nov 2009 19:01:11 -0800

As we look back at a tough real estate year, we do have so much to be thankful for. In many cities/states, you can’t give a house away. There are so many foreclosures and run-down empty homes that are decrepit and uncared for. We really do not see that in San Francisco.

Although the real estate market has gone down in San Francisco in recent years there are still many buyers out there looking to buy in San Francisco. In fact, when comparing October 2009 to October 2008, quantity of units sold are up 4.9% and prices – which had been in negative territory for the past 12 months – are flat at 0%. (Source: MLS)

Be thankful if you own in San Francisco. Even those of you who have had to short sale properties, your loss is so much less than people in other parts of our very own state of California.

Beautiful Coastal Scenery

hschmulewicz@mcguire.com (Herb Schmulewicz) — Wed, 25 Nov 2009 16:14:51 -0800

I was on my way back from El Granada a few weeks ago, and stopped to meet a client in Pacifica at Linda Mar Beach (also known as Pacifica State Beach).

It was a cold and foggy day, yet you wouldn’t have been able to tell. There were people walking, jogging and even surfing. I felt compelled to head back down to the beach at some point and take pictures. The coastal communities take on a personality of their own.

These picture were taken at 8:00am today. Take a look at the beautiful scenery.

Presidio Heights - San Francisco Luxury

smortenson@mcguire.com (Susan Mortenson) — Wed, 25 Nov 2009 15:49:49 -0800

I moved to San Francisco in 1980 to advance my career in brand marketing. But I ended up falling in love with San Francisco real estate. I remember telling my father, “If I could only own just a piece of Pacific Heights, I’d be in heaven.” Three years later I did. Then one day I drove just 6 blocks beyond my slice of heaven to discover a more luxurious neighborhood – Presidio Heights?.

I remember showing the area to a friend from Grosse Pointe, Michigan and saying, “Look! Some of the houses have front yards!” In 1996, as the U.S. was pulling out of a recession – very much like today – my husband and I got a great deal on our Presidio Heights house. Then, as only San Francisco can, the real estate market just took off, and we saw a return on our Presidio Heights investment in just 6 months.

What’s so great about Presidio Heights?

It has clearly defined boundaries, giving it a real neighborhood feel, with only about 800 households, and its own very powerful Home Owners Association, PHAN.

The houses, many built in the early 1900’s, are large with spectacular craftsmanship and superb curb appeal. Some feature astounding Golden Gate views, au-pair quarters, and don’t forget those front yards. Houses for sale run from $2 million (if you can find one at that price) up to around $15 million. Condos run from $700K to around $2 million. It is an affluent area, and attracts many captains of industry, socialites and newly minted Internet millionaires.

Most of Presidio Heights is flat, so the walkability factor is out of this world. In fact, Walk Score ranks Presidio Heights as the 76th most walkable neighborhood in the country.

Laurel Village, a very unpretentious strip shopping center across the street from Presidio Heights, has at least 2 of everything: 2 coffee shops, 3 banks, 2 grocery stores, 2 children clothing stores, but just one incredible Five ‘n Dime that is straight out of the 1950’s and carries EVERYTHING you would ever want.

We stroll daily to Laurel Village to pick up a cup of coffee and dinner for that evening. We are guaranteed to run into one of our neighbors and catch up on what is going on in their lives.

Sacramento Street, with its upscale restaurants, antique shops, hair salons, boutique clothing and consignment shops, is a destination street for many other San Franciscans.

California Pacific Medical Center caters primarily to woman and children. It is located on the outskirts of Presidio Heights, so many of our doctors are all within walking distance.

From an activity standpoint, the Arnold Palmer-managed Presidio Golf Course is nearby and open to the public. So is the recently re-built Jewish Community Center (JCC), with top-of the-line workout equipment, a tot and lap pool, dry and wet saunas, personal trainers, Zen spa and much, much more.

There are 2 recreation parks: Presidio Heights Playground/Clay Street Playground and the famous Julius Kahn (JK) Playground. JK was recently renovated by the city of SF, but contributions from its wealthy neighbors make it by far the fanciest park in the city. JK has tennis and basketball courts, an elaborate children’s play area (filled with nannies), soccer, lacrosse and baseball fields, a recreation building with daily activities, picnic tables, and is a favorite spot for children’s birthday parties.

Crime is very low, but there is a private security service you can subscribe to that will watch your home while you are on vacation, or walk you to your door when you get home late at night.

And the final point, Zillow rates Presidio Heights as one of the best places to go trick-or-treating because of the “high home values (read: better, bigger candy), walkability and sidewalks, and density of single family homes.”

On average just 23 condos and 23 houses sell in Presidio Heights annually. But you won’t find a lovelier San Francisco neighborhood with beautiful homes, safety, walkability, great outdoor activity amenities, friendly neighbors and neighborhood prestige than Presidio Heights.

Julius Kahn Playground

View from Washington and Spruce Streets in Presidio Heights

Luxury Homes for sale around the fabled Alta Mira in Sausalito

Victor@MarinHomeSale.com (Victor Fisher) — Tue, 01 Dec 2009 15:52:24 -0800

The Alta Mira in Sausalito has long been a favorite destination for tourists and locals to take in the view of the San Francisco skyline and surrounding Bay.

The historic Alta Mira dates back to the 1880s when it was first a private home for the Jackson family. In 1885 it was converted to a hotel and for years was known as one of the best places in Marin County to sit on the patio, have brunch, enjoy a cocktail or host a wedding party or event.

Jack London was known to have stayed in one of the cottages and it may be where he was inspired to write his novel The Sea Wolf that starts off in Sausalito.

In 2007 the Alta Mira was converted into a treatment center modeled after similar ones in Malibu California for those who suffer from addiction, mental health or eating disorders.

The treatment center recently closed its doors and five of the the high-end residences associated with it have been put up for sale. From the hotel owner’s residence at 100 Harrison Avenue that dates back to 1877, to the recently constructed home at 25 Santa Rosa Avenue, these residences are located in the desirable Banana Belt area of Sausalito.

These homes are truly a piece of Sausalito history.

Tree Planting and Removal in the San Francisco Bay Area

amanning@mcguire.com (Anne Manning) — Tue, 01 Dec 2009 15:18:01 -0800

When planting or removing trees on or near your property, San Francisco Bay Area cities have distinct and very specific rules that owners must abide by.

For instance, in San Francisco, Burlingame and Hillsborough, the homeowner could be required to obtain a permit for the removal of trees of a certain size, significant type (heritage/protected trees) or value of the removal project.

Here is a partial list of commonly asked questions about tree planting and removal for several Bay Area cities:

San Francisco
Private trees should be located at least 10 ft from the public right of way. A permit is required for:

Trees 20 ft or greater in height

15 ft or greater canopy risk

12" or greater in diameter, a measure 4’5" or above grade

It is best to contact the San Francisco Public Works at 415-554-6700 to obtain information on the city’s planting and tree removal permit requirements.

Hillsborough
The owner must have a design review approval and tree removal permit when removing a tree on a lot which contains a structure or other improvements when:

The trunk is 36" or greater in diameter (circumference 113" or greater), measured at 4’6" above natural grade; or

The open-market valuation of the project involving the tree removal exceeds $5,000.

Applications for the design review are available from the Hillsborough Planning Department at 650-375-7411.

Burlingame
Trees located on streets without a planter strip, measuring from the edge of the sidewalk to 7 ft within the property, are maintained by the city. A permit is required for:

The removal of trees on private property with a 48" or more circumference measuring 54" or more from the ground up.

The removal or trim of one third or more of the crown or the roots of a tree.

Contact the Burlingame Planning Department for tree planting and removal permit details and requirements at 650-558-7330.

Foster City
Permits may be required when:

Removing trees that were part of an approved landscape plan

Landscape modifications in planned developments (common area and on individual properties in the planned development), commercial properties and multifamily developments (apartment complexes).

Foster City does not have a heritage tree ordinace. A permit is not required to remove trees in a R-1 (Single Family Residence) district.

Contact the Foster City Planning-Code Enforcement Office for details on the city’s tree planting and removal permit requirements at 650-286-3225.

A few companies in the Bay Area that specialize in providing estimates and tree removal services are:

Advanced Tree Service: 925-935-9397

Arbor Well: 510-881-4260

Mayne Tree Expert: 650-593-4400

Timberline: 650-697-2310

Peninsula Tree Care: 650-349-9367

Neck of the Woods: 650-366-9801

It is always best for a homeowner to ask a service provider for referrals.

Holiday Delight for Children (of all ages)

sfaccinto@mcguire.com (Sharon M. Faccinto) — Tue, 01 Dec 2009 15:40:03 -0800

Marin has some wonderful holiday events every year, and one of my favorites is the Gingerbread House Workshop at the Bay Area Discovery Museum in Sausalito.

Little ones delight first in piecing together their own gingerbread house (from a kit), and then decorating it with icing, candy canes, gumdrops and chocolate bits. When I peeked in this week, the room was full of cheerful chatter and delicious smells, and it seemed to me that the program had managed to hit just the right balance of enough order to accomplish the task and a festive, glorious mess.

Muir Woods Winter Solstice Celebration

sfaccinto@mcguire.com (Sharon M. Faccinto) — Tue, 01 Dec 2009 15:40:15 -0800

After the Gingerbread Workshop, another favorite event that falls during the holiday season is the annual Winter Solstice walk and bonfire at Muir Woods National Park on Mt. Tam, just above Mill Valley and Muir Beach.

Imagine strolling slowly through the dark, incense-scented woods along pathways lit only by candlelight. Luminaria line the mostly level pathways through the worlds tallest trees. There’s nothing quite like being in a quiet and dark grove of giant Sequoias, followed by a warm cider or cocoa at the bonfire back at the Interpretive Center. Night falls early on this longest night of the year, so children’s events begin at 3, with storytelling, songs and cocoa. I do it every year, rain or shine, with whomever I can manage to pry out of their warm houses. From the website:

“Activities and events include the making of solstice crowns, a stage performance of songs, stories, and puppetry, and walking the trails of Muir Woods lit by luminaria. No reservations required. The program is free. Daytime activities between 3 – 5 pm. Activities in honor of the longest night of the year between 5:30 – 8 pm. This evening can be dark and chilly; we ask visitors to bring a flashlight, dress warmly (layers/blankets), and bring a mug for warm drinks.”

Personally I have found that forgoing the use of the flashlight enhances the experience. The candlelight from the luminaria provides enough light to keep you on the pathways, but allows your eyes to adjust to the darkness. This tends to keep your pace slow and your senses more alert to the sounds of the forest. What better way to experience Muir Woods this December?

Image provided by Anoop Joy

History of the San Mateo Medical Center

cduncan@mcguire.com (Christine Duncan) — Sat, 12 Dec 2009 09:11:48 -0800

San Mateo Community Hospital on 39th Avenue in Westwood Knolls first opened its doors in 1923. After several name changes, including San Mateo County General Hospital in 1962 and Chope Hospital in 1970, the hospital is now known as the San Mateo County General Hospital which is part of the San Mateo Medical Center.

Having grown up near the hospital, I’ve seen it change into a thriving county medical center after being in danger of losing its accreditation because of the condition of the physical plant in 1993. Beginning in 1994, the SMMC began its renovations with the additions of new wings and facilities on the campus, which completed in 2002.

The remodel changed the physical landscape of the area with the construction of beautiful modern buildings and large parking areas. Although this mostly residential neighborhood has felt the effects of the improved county health center with increased traffic and street parking, this facility services all cities between South San Francisco and Menlo Park as well as the Coastal cities, and is a facility to be proud of.

Image of the former Chope Hospital, courtesy of the Online Archive of California

Today’s San Mateo Medical Center

Burlingame Community Events

hschmulewicz@mcguire.com (Herb Schmulewicz) — Tue, 01 Dec 2009 22:14:18 -0800

Burlingame: A great city to live in, but even better when you take part in all it has to offer. I’ve listed some of the upcoming events for your enjoyment.

The Fresh Market Burlingame Extended to December 20
Sundays, 9:00 a.m. – 1:30 p.m.
Park Road at Burlingame Avenue
Learn more

City Tree Lighting and Holiday Open House
Friday, December 4
5:30 p.m. – 8:30 p.m.
Learn more

Broadway Cheer
Saturday, December 5
4:00 p.m. – 7:00 p.m.
Learn more

Save the Date! The Burlingame Chamber of Commerce
Annual Meeting and Installation of Officers
Featuring Matier & Ross, San Francisco Chronicle Columnists*
Thursday, January 14, 2009
Reception: 11:30 a.m.

Mercy High School Alumnae Association’s Annual Holiday Boutique
Christmas at Kohl Mansion
December 2, 2009, 5 – 9pm
2750 Adeline Drive
More than 65 vendors will display unique holiday treasures, jewelry, clothing and holiday decorations. There will be two docent tours of the historic Kohl Mansion, at 6:30 and 8:00 p.m. For more information call Carol Fraher or the Alumnae Relations Department at 650-762-1190.
Learn more

Help Needy Families at The CALL Primrose Center
The CALL Primrose Center has been providing food and other assistance year round for 25 years and reports a 60% increase in requests for food and other aid since October 1st. A record number of families will be served for Christmas, and we will be breaking another record for their Christmas/Holiday distribution on December 18th. Donations of food, funds and toys are greatly needed. Please help them help others by dropping off donations M–F, 9–3. CALL Primrose is located at 139 Primrose Road, Burlingame, 650-342-2255.

Rebarts Interiors “The Season of Giving” Holiday Charity Event – Samaritan House
December 10, 2009 5:00 p.m. – 9:00 p.m.
Rebarts Interiors Window Fashion Gallery
1115 California Drive in Burlingame
For more information call Becky at 650-348-1268
Come and celebrate the holidays! Door prizes, raffles, gift certificates, win a cruise, champagne fountain, hors d’oeuvres buffet. Bring joy to a child by bringing a toy gift, or bring a bag of groceries (unperishable goods) for a family in need. Cash donations are also welcome. Rebarts Interiors is giving 5% of all purchase orders placed December 1–10 as a donation to The Samaritan House.

Hyatt Regency San Francisco Airport
1333 Bayshore Highway, 650-347-1234
Celebrate the holidays with a special Christmas Day Buffet at the Swiftwater Café. You’re invited to join them on Friday, December 25 12-5 for a memorable menu full of delectable holiday dishes for you and your family. Their Christmas Day buffet is $50 for adults, $25 for children 5-12, and free for children 4 and under.
Please call 650-696-3030 for reservations.

Community Education
3401 CSM Drive, Rm. 217, San Mateo, 650-574-6149
Upcoming Classes: Basics of Selling on eBay, Walking Tour of Bernal Heights (SF), Powerful Writing Skills for the Workplace, Champagne: a Shared Passion, Fall Floral Creation, Fascinating Wine Flavors and Aromas, and more!

What Next on Noe Valley's 24th Street?

cisaacs@mcguire.com (Carole Isaacs) — Tue, 01 Dec 2009 22:21:19 -0800

It seemed that Noe Valley and 24th Street had arrived when Whole Foods Grocery opened a month ago, but there was still something missing. I found myself longing for an almond croissant from one of the many La Boulange bakeries around town. I barely finished the thought before La Boulange Noe appeared at the corner of Sanchez and 24th Street on November 17th, in the nick of time for the holidays.

This is a great location, with café tables on Sanchez and sun shining all day through the windows. A “walk to coffee” could not be more perfect.

Great America's Got Nothin' on Shoot-the-Chutes

ccummins@mcguire.com (Cynthia Cummins) — Wed, 02 Dec 2009 14:46:50 -0800

About ten years ago, I listed and sold a classic craftsman house in the 700 block of 10th Avenue. Located just outside Golden Gate Park in the Richmond, the house was built around 1910, not long after the earthquake. My client – I’ll call her Sarah – had lived there her entire life.

She told me how she and her siblings played for hours in the woods south of Fulton, and how her mother would stand on the front steps and yell for them to come home for lunch.

“Before the house was here,” she said, “There was a giant water slide that emptied onto this street.”

Wow! I thought. I’d heard of Playland-at-the-Beach, which closed in the early 70s. But I’d not heard of a water slide.

“Believe me,” Sarah said, “There was a water park here. Whenever they do work on the street, they’re always finding remnants of the concrete walls.”

Sure enough, I recently found information about what was called The Chutes Amusement Park

And while you’re at it, check out this link that says Fulton and 10th was The Chutes’ second location in the city, after Haight between Clayton and Cole!

Playland Funhouse courtesy of Dennis O’Rorke

Foster City in the Movies

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Thu, 03 Dec 2009 15:09:14 -0800

I adore the movies that were filmed in San Francisco – Milk Vertigo and Dirty Harry to mention a few of my all-time favorites.

Very few people have heard of Jonathan Kaplan’s (and Matt Dillon’s first role) film Over the Edge. Although not filmed in Foster City, it was based on tragic events that took place in this brand new planned community in the 70s. Barely a decade old, this small town was not planned with teenagers in mind. Its sterile facade and cookie-cutter homes had no warmth, much less anything for kids to do. The teen center closed at 6:00 pm.

Charlie Haas, a reporter for the San Francisco Examiner, wrote a column about the 1970s out-of-control crimes rate in Foster City. “Mouse Packs: Kids on a Crime Spree” was the title of his story. It was brutal, but painfully true. Anarchy, drugs guns, gangs. (It was also one of Kurt Cobain’s favorite movies.)

Haas and a fellow film student at UC Santa Cruz decided to put a story/film together about the events that took place in Foster City. They actually interviewed some of the teens that were involved in the events that led to the tragic events. They researched every known fact about the crimes to be as accurate as they possibly could.

Unfortunately they did their job too well. Although some of the police were depicted as clownish, the raw truth of this story was far ahead of its time. It was a brutally honest look at what can go wrong in a “perfectly planned community.”

It really was a true story. The film was not released upon completion because of the riots that occurred during a previous film The Warriors. Orion Pictures refused to release "Over the Edge to theaters for fear the same thing would happen. In 1981 it was released to HBO and eventually had limited theatrical showings.

Foster City today has one of the lowest crime rates in the Bay Area. Recently a Realtor chided me about types of crimes in Foster City: “A bird bath knocked over in Foster City”; “Bananas stolen out out of an unlocked car in Foster City.”

Thanks Foster City Police Department. I wouldn’t have it any other way.

South Beach Hot Spots

jdavis@mcguire.com (Jennifer Davis) — Thu, 03 Dec 2009 15:30:30 -0800

I have a new challenge for 2010: keeping up with the new hot spots that keep opening up in San Francisco’s South Beach.

In 2009, and in just the past few weeks, I have seen these South Beach establishments open for business:

Ironside Restaurant at 680a 2nd St. @ Townsend

Iron Cactus Restaurant at 683 4th St. @ Bluxome

Sohberts Cafe at 144 King Street @ 2nd St.

South Beach Salon and Spa at 2 Townsend @ Embarcadero

Coming down the pike is the long-awaited Prospect restaurant (a spinoff from Nancy Oakes’ Boulevard Restaurant) that will be located on the ground floor of the Infinity building at 300 Spear @ Folsom.

These new establishments continue to enhance the walkability of the South Beach neighborhood. That is great for the real estate values in the area. And there are some great deals in South Beach these days.

Stay tuned. There are more South Beach hot spots to come in 2010!

Interior of Sohberts

Just When You Thought Rates Couldn't Get Any Lower

dvarni@mcguire.com (David Varni) — Fri, 04 Dec 2009 15:02:53 -0800

In case you haven’t read the news, home loan rates have gone down again, dropping to their lowest level on record.

And not just the 30 fixed has dropped to an all time low. According to the weekly Freddie Mac survey, this is the first time ALL rates have been at their lowest level. For example:

30 yr fixed: 4.75%

15 yr fixed: 4.25%

5/1 ARM: 3.75%

As you can see by this chart of rates since the beginning of 2009, you can see how quickly they can increase.

If you are looking to purchase a home you should contact your lender today. Combined with the homebuyer tax credit, waiting could cost you an opportunity to put an even bigger smile on your face this holiday season.

What a Difference a Store Makes

cseeley@mcguire.com (Christie Seeley) — Fri, 04 Dec 2009 20:45:14 -0800

The Southwest Berkeley area is lookin’ good, having experienced a surge of upgrades at the Dwight Way/San Pablo Avenue intersection with:

The opening of Lalime’s Sea Salt

Evening jazz performances at Caffe Trieste

Fun shops like Juniper Tree, Twister’s Vintage (retro clothing) and Mignonne Decor, where Johnelle Mancha puts a new twist on found furniture that one cannot resist

Residents are showing their pride by renovating and improving their properties and real estate values are on the upswing.

Add to that a splash of Emeryville development:

Café Aquarius with a great bakery

Enoteca E22 with live music and wine tasting on Friday afternoons

Townhouse Bar & Grill

Bucci’s Restaurant

Cocina Poblana

Plus attractive loft developments bringing in an active, urban population

And voila, you have the makings of a “hip” residential area.

Occupants of 1415 Alcatraz Avenue, one of McGuire Oakland Office’s recent listings, are already reaping the advantage of living in an innovative, very cool complex in this developing and vibrant scene.

To add to their great living space, the Actual Café has just opened at the corner of San Pablo and Alcatraz. Described by owners as a “not the usual wi-fi shack,” this is a place where folks meet eat and drink and contribute to their community’s sustainability. If that isn’t enough, around the corner on Sacramento Street, Casa Vino serves up fine wines and home-cooked dishes.

I know people who live in Rockridge and travel down to San Pablo to the new Berkeley Bowl West located at 9th and Heinz across from Ecole Bilingue de Berkeley (the French American School of Berkeley) to do their shopping.

Berkeley Bowl image courtesy of gojanelin

The neighborhood is also close to upscale shopping at both Bay Street in Emeryville – which includes West Elm and Ikea, so you can furnish your new place in style – and 4th Street in Berkeley, with legendary shops and yummy food at Betty’s Oceanview Diner, Café Rouge and Dona Tomas’ Tacubaya.

Tacubaya image provided by On My Plate

(Also see Oakland Magazine’s interview with 8 top chefs, 3 of which are represented in this area.)

Close to freeways, Ashby and North Berkeley BART stations and bikeable to UC Berkeley campus, Southwest Berkeley is not to be overlooked!

Smile Train

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Sun, 06 Dec 2009 21:39:45 -0800

This year there’s less money for donations. Each year my daughter supports the Peninsula Humane Society. I too support them, but sadly it’s been a little more difficult for many to continue.

Some friends and I have supported Smile Train during the holidays. One hundred percent of the proceeds go to corrective surgery for children with severe cleft deformities in poor nations.

Smile Train’s co-founder ad President Brian Mullaney had a vision of changing the lives of these children. He and others have realized their vision. All of the Doctors donate 100% of their time and skills. They have performed over 500,000 surgeries on children from all over the world. Each surgery costs $250, and the completely volunteer staff consists of only 43 people. They travel to locations at their own expense.

In 2008 a little known film called Smil Pinki won an Academy Award for best documentary. There were no actors, everyone in the film was real and they were paid nothing. It was set in one of the poorest countries in the world. The story is about a little girl named Pinki who waited 6 long years for a 45-minute surgery.

The New York Times described Smile Train as "one of the most productive charities-dollar-for-deed in the world.\r

Candice Bergen, Tom Brokaw and Colin Powell’s PSAs (just to name a few) are included on the DVD version of the film.

It’s not for small children, however. Kids after the age of 11 (just my opinion) should watch it. It will inspire.

Click to watch the trailer below:

Investment Corner: Hard Choices – Short Sales

linda@quinnsolutions.com (Linda Quinn) — Sat, 05 Dec 2009 17:33:29 -0800

How long does it take to do a short sale? Once the listing agent steps in, it could take countless months.

However, that’s actually the tail end of a drawn out process.

Most property owners go through a much longer and painful period:

Watching, hoping and being disappointed that prices are not going up again

Shopping, applying for, and being denied refinancing

Using savings, salaries and credit cards to pay negative cash flow

Then going through the frustrations of hopelessly negotiating loan modifications

Perhaps the hardest decision is to default on the loan. Unfortunately, you cannot do a short sale without being in default. This means seriously damaging your credit – and it is irreversible. It is not like canceling a loan application, or taking a property off the market because you have changed your mind.

By the time I help sellers with their hardship letters, I see how starkly the process has drained them financially and emotionally.

I am currently talking to two sellers on the brink of a short sale. They have been going through these stages for at least two years. Hard choices. The short sale itself – regardless of the outcome – may really be the easiest part.

For a week-by-week account of a short sale, visit my blog.

Safe San Francisco Neighborhood? Or Not?

smortenson@mcguire.com (Susan Mortenson) — Sat, 05 Dec 2009 17:45:42 -0800

When working with buying clients in selecting a home to purchase in San Francisco, the thing of utmost importance is neighborhood safety.

Much is dictated by the old real estate adage: location, location, location. To help my clients evaluate a neighborhood, the San Francisco Police Department maintains a wonderful free website called CrimeMAPS.

The San Francisco Police Department states, “This site has been created to allow people with an interest in public safety to easily produce maps and reports of incidents from data contained in SFPD police reports. Members of community groups and neighborhood watches can get public safety information whenever they like – as often as they like.”

It maps offenses by address, radius of the address, near landmarks, or within a boundary. It also covers incidents from the past 1 to 90 days.

This is a fabulous tool that gives great peace of mind to my clients in making their purchase decision.

Cash for Caulkers

godom@mcguire.com (Gina Odom) — Fri, 11 Dec 2009 20:53:28 -0800

President Obama proposed a new program Tuesday that would reimburse homeowners for energy-efficient appliances and insulation. The legislation that is currently being crafted by the help of Steve Nadal, Director of the American Council for an Energy-Efficient Economy, could contain up to $12,000 in rebates. The proposal is part of the President’s larger spending plan, which also includes money for small businesses, renewable energy manufacturing and infrastructure.

Items like air conditioners, heating systems, washing machines, refrigerators, windows and insulation would likely be covered, Nadal said. Consumers might be eligible for a 50% rebate on both the price of the equipment and the installation. And so far there are no income restrictions attached to the bill.

It’s not clear as of yet how the home efficiency plan would be administered – the government may issue rebates, or through a tax credit, or through state companies. Currently, PG&E offers rebates for you as a homeowner. And so far, it is unclear if this will change. Rebates offered by PG&E include adding attic and wall insulation, replacing your old furnace with a new energy-efficient furnace and changing your old water heater for a new one.

Many more rebates our offered and it’s easy to fill out the application online for your rebate.

Renovating in Piedmont

jrichardson@mcguire.com (Judy Richardson) — Sat, 12 Dec 2009 21:16:38 -0800

I recently have completed a two story remodel in Piedmont. The city of Piedmont’s planning department has very strict guidelines and the approval process can be difficult, but it can also be very arbitrary. It can come down to the mood of the commissioners and the neighbors reaction to your project that can either get your request approved or denied.

I have recently learned that you can also be penalized if you do not complete your project on time or let permits from years’ past expire. Piedmont residents who sell their houses often find out the hard way if work was done without permits, or if work was never completed and the permit had expired years ago. Homeowners are forced to correct or post a bond in order for the sale to go through.

Homeowners wanting to sell need to realize that the city of Piedmont is a small area and the Piedmont planning department actually visits open houses and looks at listings online. If you have performed work without permits, the city can fine you after the sale has been completed and even require that the new owners correct the violations. In our case, new vinyl windows were installed throughout our house. Piedmont will only allow wooden windows. Therefore, when we went to have our addition approved the inspector required that we replace these windows and even rebuild our main staircase because the risers were uneven and not to code.

So buyers and sellers beware. When buying in Piedmont you should always consult the city of Piedmont planning department prior to purchasing. The staff is extremely helpful, but the process to remodel and gain approval is difficult and sometimes impossible.

Maggie

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Sat, 12 Dec 2009 22:18:30 -0800

There have been several reports around the Bay Area about dogs dying from eating poisonous mushrooms. Gary Bogue with the Contra Costa Times did a story recently and cautioned pet owners to watch for the Death Caps that have seemed to have multiplied during the rainy season. Ginny Prior wrote about this in the Oakland Tribune. KPIX on November 24th also had warnings.

It was too late for our “Maggie”.

On September 3rd we lost our family pet to poisonous mushrooms. Her name was Maggie. My daughter Amy adopted her for me from the Peninsula Humane Society on Mother’s Day in 2004. Maggie was deemed unadoptable because she had behavior/personality problems. Amy thought she would be perfect for me. She was right.

We had our Maggie for over 5 years. A small mixed breed, she had been adopted twice before and returned. It took quite some time to socialize her, but within just a few months we considered ourselves truly lucky to have found her, and I loved her so very much.

We never thought we would lose her suddenly to poisonous mushrooms that had begun to spring up in Foster City. She was never off leash and we had a great yard for her to run. The misconception is that Death Caps are most prevalent in the winter months. Maggie passed away during Labor Day week. It was close to 90 degrees. Since we live in a PUD, the green belts are beautifully maintained (and watered frequently). We actually had seen some of these mushrooms around Foster City in the summer months, but on our morning walks Maggie showed no interest in these mushrooms and we didn’t realize how deadly they were. It only took a split second. We never saw her eat one. It could have been in our yard. The vet said it was poison mushrooms that killed her.

Our hearts broke when we lost her.

Our Maggie is one of hundreds of family pets that have been lost around the Bay Area recently because of wild mushrooms. It happens very fast. We took Maggie to San Mateo Animal Hospital late in the afternoon on September 1st and she was gone within 48 hours. We miss her so very much.

Today a friend called me and said a local news station was going to do a report about family pets dying from death caps in the Bay Area. I couldn’t – and didn’t – watch the report.

The symptoms are:

Vomiting immediately after eating or drinking fluids

Pet may appear to have pain when walking

Lethargic

Limping when trying to walk

Dryness at the pet’s mouth

If your pet is extremely active the way Maggie was, it’s difficult to catch the symptoms until a day has passed by, and then it may be too late. It’s important to not let your dog off leash in a grassy area in the winter months unless the entire area has been investigated for wild mushrooms.

Tiburon Market Update

rparks@mcguire.com (Ronald Parks) — Fri, 11 Dec 2009 22:43:14 -0800

Let’s preface this article by saying that prices in Tiburon and Marin as a whole have had a wonderful rise for the past few decades. The median price of a home in Tiburon in 1994 was $597,500 and today it is $1,673,000. It is said that history repeats itself, but in the case of the Marin and Tiburon housing market no one can be confident that we will continue to see the type of appreciation we have seen in the past.

Home price appreciation in Marin and the entire San Francisco Bay area came to a halt in 2005/2006, and residential prices have dropped each year forward. If you take a look at Tiburon as a whole (and I am only going to talk about the single family home market), average prices peaked in 2007 at $2,561,000. The average sale price of a home in Tiburon fell to $2,095,000, an 18.1% decline.

In Marin, sales of homes under $1 million represented 55% of the market from 2005-2009. If you look at the higher end ($2 million and more) then we have a very different story. Homes sold over $2 million from 2005-2009 represented only 11% of the market. The highest percent during the last 5 years was 13% of the total market and the lowest was 7.3% of the market through 8/31/09.

The stresses in these price points are stronger than in the lower price ranges. When a seller loses a house through foreclosure at the low end, or needs to leave equity on the table because they must sell, there are many more buyers around to bid on that house and to make the sale. When a seller in the over $2 million range needs to sell, or for that matter wants to sell, we are seeing less demand and therefore greater price pressures on those home.

Below are some of the general statistics for reference:

ALL TIBURON – SINGLE FAMILY HOMES

2005

2006

2007

2008

2009

Average
$2,234,000

$2,266,000

$2,561,000

$2,509,000

$2,095,000

Median
$2,022,000

$2,017,000

$2,000,000

$1,992,000

$1,673,000

# Units
128

108

120

80

42

Highest
$10,000,000

$7,600,000

$20,000,000

$12,518,000

$9,000,000

The current drop in demand is due to general economic weaknesses:

Job uncertainty

Unemployment

Under employment

Decreased wealth caused by the decrease in values of investments

One of the biggest factors is real estate lenders taking the most conservative stand after years of being very liberal in their lending

All of these elements have caused a perfect storm for the real estate market, negatively impacting money demand for ownership.

Also, one of the unspoken reasons for a drop in demand, and a potential continuation of the stresses on the housing market, have to do with consumers’ opinion on where prices are going. No one wants to buy in a strongly uncertain market, especially if they feel price will move down again. At the lower end of the market the demand for these homes is exceeding the supply, therefore keeping the homes moving out of inventory. At the upper end of the price pyramid the demand has been decreasing since 2005 and continues presently.

94920 ZIP CODE
the number of listings in Tiburon (excluding Belvedere) stands at 109. There are 83 single family homes market for sale on the Multiple Listing Service. You need to look at these in the context of the total number of homes sold annually in Tiburon as follows:

2009: 44 (through 8-31)
2008: 80
2007: 120
2006: 108
2005: 128

At current annualized sales of 66 units for 2009, the current inventory of 83 homes will take more than one year to sell. There is anticipation that more properties will be hitting the market in the next few weeks, pushing up the listings competing for buyers.

The breakdown by price of these homes is also interesting to follow:

Less than $1 million: 5
$1 million to $2 million: 23
$2 million to $3 million: 20
$3 million to $4 million: 14
Over $4 million: 21
TOTAL Single Family: 83

There are 86 homes currently on the market in Tiburon with 15 listings under $1 million. In the price range of $1.5-3 million there are 35 actively being marketed. Sales numbers for the past 5 years are below:

2009: 19 (through 8-31)
2008: 43
2007: 61
2006: 59
2005: 69

I am not in the business to make predictions on the prices of the housing stock in Marin. I think we will encounter some obstacles to a robust recovery of housing prices as the ability to buy larger and more expensive homes is directly correlated with a combination of increasing income levels, increasing asset wealth and the employment market.

If some of these indicators turn positive for an extended amount of time, we can see buyers coming back into the market and therefore demand will hopefully push prices up. I do not see another housing boom as the one we had over the past 5-10 years. In addition, any additional distressed properties that hit the market will have an impact on the general housing prices.

Home Ownership: A Right or An Impossibility?

amenendez@mcguire.com (Ana Menendez) — Sat, 12 Dec 2009 21:06:32 -0800

I believe that many homebuyers – those that believe they deserve the right to buy a home, particularly via a low down payment and FHA loan – are being led down a primrose path, only to find frustration, confusion and disappointment.

They have come to believe that nice homes in good neighborhoods can be bought at a pittance with a 3.5% or 5% down payment. In reality these buyers find themselves in shark-filled waters, competing with all cash investors, and lose out on a home that starts at a low price point, receives 26 offers, and ends up double the amount listed.

Even in the outer reaches of Fairfield, Pittsburgh and Brentwood, with large 2-5 year-old homes, time and time again buyers coming in with FHA loans are repeatedly beaten out by investors or financially stronger buyers.

I believe these FHA buyers are being completely ignored, and time and time again, they are being placed at the bottom of the pile. I believe that I am not the only one experiencing this phenomenon.

I thought these loans and tax incentives were for the hard pressed, the ones at the bottom that so believe in the dream of home ownership. Instead I see that these tools cannot truly help those realize this dream.

I feel my social worker background coming out and want to expose this travesty. Let me know if you are having a different experience; I would love to turn my skepticism into something positive!

Outer Church Street in Noe Valley

dsaroni@mcguire.com (Dee Saroni) — Sat, 12 Dec 2009 21:41:54 -0800

On any given day in the outer Church Street section of Noe Valley, you will find people leisurely enjoying all the outdoor coffee shops with their dogs by their side. Some can also be seen sipping tea inside Lovejoy’s Tea Room.

When you are browsing through the quaint and interesting shops, you’ll be lucky to find Lovejoy’s Attic at 1350 Church. The shop features new as well as vintage gifts, cards designed by local artists and Noe Valley Honey.

One of the newer shops is Omnivore Books on Food located at 3885 Cesar Chavez. They carry a wide variety of cookbooks. You might also find books about food science and food history as well as other vintage and rare books.

Interior or Omnivore Books on Food

After all that browsing and shopping you will probably be hungry. There’s a collection of eateries to satisfy any hunger. A must for a great lunch is Eric’s Chinese Restaurant at 1500 Church.

For a special occasion you might want to want to consider La Ciccia at 291 30th Street. This intimate restaurant has more than 150 wines on their list. They feature Italian food from the region of Sardinia with an emphasis on seafood.

Now for dessert. It’s just a short walk to Mitchell’s Ice Cream located at 688 San Jose Avenue and 30th. Mitchell’s is a San Francisco institution and it’s evident by the line of people out the front door. They have unique flavors and it’s not your ordinary ice creamery. You may have to wait a bit to be served, but you’ll be pleasantly delighted.

Mitchell’s Ice Cream, provided by akarmy

Investment Corner: Loan Modification Report Card

linda@quinnsolutions.com (Linda Quinn) — Sat, 12 Dec 2009 21:57:50 -0800

The media recently announced loan modification results of participating lenders. See the chart below.

The news reports centered on how few loans are modified and eligibility was not really explained.

A client who owns a four unit building asked for help after his application was rejected. The only explanation was that “he had too many assets” and that what he could do was “re-apply”. Despite pressing for more details, criteria, and whether and how a re-application could succeed, we received no other information.

Although loans on multi-units are eligible, the program’s goal is to keep borrowers in their homes. So you have to live in the building. This means that rental properties, including houses and condos, are ineligible.

A couple of cautionary points:

The call center is also a debt collection department. Representatives have the additional goal of trying to persuade callers to pay arrears. My client had made a payment. He thought that by making a payment he would be helping his loan modification application. Not so.

Lenders are subsidized by a government program for all modified loans. If a lender reduces the interest rate by 2 percent, it does not mean it loses 2 percent of interest income. The program will compensate the lender at least for part of the loss. It means that the more successful the program, the more tax dollars are used to compensate lenders. I’m ambivalent about this.

Fort Mason for the Holidays

llanzone@mcguire.com (Laura Lanzone) — Mon, 14 Dec 2009 15:36:34 -0800

I have lived in the Marina for a very long time now and there are many, many things I love about it. The way it feels like a small town neighborhood with big city amenities (shopping, restaurants and movie theaters on Chestnut), the dog beach at Crissy Field, and of course, Fort Mason. If you haven’t been there lately you really should check it out for the holidays.

Fort Mason is made up of 13 acres of open space, buildings and piers belonging to Golden Gate National Park. Over 15,000 events happen in their venues every year. Among the many permanent residents are:

The famous vegetarian restaurant Greens

The Magic Theatre

City College Art Campus

Several galleries

Book Bay Fort Mason Bookstore, supporting the San Francisco Public Library

The Blue Bear School of Music

There is also a dog-friendly park with fabulous Golden Gate Bridge views and the cutest little community garden you’ve ever seen.

Christmas is a great time to discover Fort Mason: tons of unique gifts to be had as well as the Guardsman Christmas Tree Lot (until the 19th), Renegade Craft Fair (19th and 20th), and a big party on New Year’s Eve called Crawl SF. And lots, lots more!

It’s definitely worth a trip (so close and there’s plenty of cheap parking!), and a nice place to spend an afternoon with those out-of-town guests.

The Fort Mason Center entrance and parking lot is located directly across the street from the Marina Safeway on Marina Blvd. Open 9am-8pm except major holidays. 415-345-7500 for info.

Image provided by a tree is nice

In the Spirit of the Holidays, GO Green

kgolden@mcguire.com (Kathryn Golden) — Tue, 15 Dec 2009 22:01:12 -0800

Recently when I did a final walk through on a client’s property before closing. I noticed in the lobby a “green” notice that would be commencing that week: The entire building would be collecting their food waste for compose and the city would provide free pick up. In the condo, there was a small bucket for placing food waste.

What are you doing this holiday to go more green?

Do People Really Buy Real Estate During the Holidays?

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Wed, 16 Dec 2009 12:57:15 -0800

Yes it’s true.

December 14th 2008 I sat in a conference room with clients, writing an offer for them before they were to leave for holiday in England. They had enough time to wait for a response before they left, and they found that their offer was not accepted. They tried again on New Year’s Day, 2009 and we ratified 3 days later. Our manager Robert Brisbane drove by the office on January 1st and said he was shocked to see so many Realtors’ cars in our parking lot.

My buyers, who are expecting to close escrow the first week in January, received news that the sellers are moving on the 20th of this month. They wondered if the buyers would like to move before Christmas Day!

As far back as 2001 I’ve had clients who have purchased their home in December. In 2006 I even had buyers open escrow on the 23rd of December.

When it comes to buying and selling real estate, you’d be surprised how often it becomes a holiday gift!

Saving Money On Your Applicances This Holiday Season

gbryan@mcguire.com (Gregory Bryan) — Mon, 14 Dec 2009 21:14:36 -0800

I am writing to all homebuyers and homeowners in San Francisco, from Pacific Heights to Noe Valley to the Mission: there are a variety of incentive programs available for “going green.”

Local government, utilities and federal tax credit programs are available, and many people are not aware that these programs exist. The incentives vary depending on where you live, but a great website for finding out which programs are available in your neighborhood is Flex Your Power. Here you can just type in your zip code and the incentives will pop up.

Some of the programs include PG&E, one of the utility companies in my neighborhood, which is offering $150 for purchasing a high energy efficient washer, and the San Francisco Public Utilities Commission which is offering $200. The SFPUC is offering free low flow shower heads to their customers. There is also a 30% tax credit from the US Department of Energy for qualifying solar water heaters. These are just a few of the 80 or so programs available in my zip code.

So if you are going to buy any new appliances, doing any plumbing, home improvement work or installing solar or other green technology products in your home this holiday season, you should definitely check FYPower.org.

If you want other great tips on other programs or need any real estate assistance in the San Francisco area, don’t hesitate to email me.

A good school in Sausalito?

cdenike@mcguire.com (Chris DeNike) — Mon, 14 Dec 2009 20:23:01 -0800

In the past most families moving to Marin County would not consider living in Sausalito because of the lack of school options. This all changed 8 years ago when Willow Creek Academy, located at 630 Nevada Street, opened its doors. In fact Willow Creek Academy recently learned that their students’ API score jumped 30 points and now sits at 856 – something to be very proud of.

WCA is one of only 2 schools in Marin that offers K-8th grade (the other is Ross School in Ross). WCA, a charter school, currently has 180 students with a teacher and an assistant in classes K-3 where there are 20 students per class. Those parents who have children outside of Sausalito can apply to have their children attend, but Willow Creek Academy, like most charter schools, gives priority to those families who reside within Sausalito city limits. As of today no students have been turned down due to classes being full.

Because WCA is a public school, there is no financial cost for your children to attend. There is, however, a mandatory 50-hour-per-year time commitment worth of volunteer work required by one parent per year. The goal is to keep the parents involved with the school and their children’s education. Most children who graduate from Willow head off to Tamalpais High School in Mill Valley. Therefore, when you and your family are considering a move to Marin County, include Sausalito in your search.

If you would like a private tour of the campus don’t hesitate to contact them at info@willowcreekacademy.org or Carol Cooper for an appointment. For more information on schools and real estate in Marin, feel free to contact me or browse our website.

Mix It Up in The Richmond District

rmerryman@mcguire.com (Robert Merryman) — Mon, 14 Dec 2009 20:44:49 -0800

The western reaches of San Francisco are often overlooked by visitors and home buyers alike. But the Richmond district provides city residents and visitors a gateway to a variety of outdoor activities flanked by Golden Gate Park and ending at Ocean Beach. A fine weave of culture and architecture give the Richmond district its unique and distinct “style.”

When visitors arrive in San Francisco they head to the usual attractions. This might include the De Young Museum in Golden Gate Park. Another highly sought after stop is the Palace of the Legion of Honor. While the De Young is known for its American painting collection, the Palace of the Legion of Honor is home to European paintings spanning six centuries.

But many overlook the best free museum. The ground floor of the Beach Chalet houses a fresco designed and painted by Lucien Labaudt in 1936 as part of a federal works program and then restored in 1988. The unique depression-era mural depicts scenes of San Francisco in the round. There are also some interesting tile murals as well as an intricately carved balustrade. The building houses a brew pub and two restaurants, one of which provides a front row seat to endless sunsets (on a clear day!) over the Pacific Ocean.

Image of the Beach Chalet provided by dolanh

Within the residential area of the Richmond district you might find a grand Edwardian home on a street with “modern” apartment buildings. Many mid-century building make up the general housing stock as the area was developed mainly during the 50s.

The residents of the district are as varied as the architecture. Together, Russian immigrants and Chinese residents may be shopping at a Mexican produce stand. The restaurant scene in the Richmond district is also equally as varied as the residents; the United Nations to dining.

What matters most: variety and affordability. The Richmond district provides residents with easy access to freeways and transportation. Housing prices allow a buyer to “get more home” for the money.

When I tell others that I live in the Richmond district one of their first replies is “all the way out there?” Another response: “Isn’t it foggy out there?” I am quick to dismiss these protestations with my favorite retort: “I sleep in complete silence, park right in front of my house – and the fog is good for the skin.”

Image of the Richmond District provided by Moonage Daydreamer

TARP... Say What?

rswann@mcguire.com (Rachel Swann) — Mon, 14 Dec 2009 21:05:57 -0800

Major headlines over the last few days have President Obama calling the banks “fat cats.” Obama says they are obliged to help the U.S. economy rebound. Why? Because the bailouts came out of the taxpayers’ pocket. Yours and mine. In the wake of these revelations, most of us find ourselves scratching our heads and still trying to figure out what TARP even is.

TARP (Troubled Asset Relief Program)
This program was set up by the Treasury to assist troubled banks by buying mortgage securities from banks. Well over $30 billion dollars have been given to Bay Area banks. You’d think the banks would apply these funds to generate more loans, but this begs me to ask, how many qualified buyers can there really be? If the buyers are not there, where are these funds really going?

The money is being used for more than just loans. The bill put together for TARP is large in scope. This allowed the Treasury to also buy stocks in banks to help build capital. The bank pays a small dividend back to the Treasury, 5% for years 1-5 and 9% thereafter. The option to buy the stock back from the Treasury is available after a term of 3 years. One local bank that received $43 million in TARP funds reports lending $14.7 million to a redevelopment agency in Santa Rosa for BMR (Below Market Rate) housing.

What was the banks response to Obama? Citi responded by saying they will pay back $20 billion of the money they received and exit the TARP program. Wells Fargo is the last bank yet to have an agreement to pay back the funds. They still seem to be struggling. Just today I saw a commercial touting them as strong and stable. Reality says different. Unfortunately, who wants to work with a brand seen as the weakest link? If they continue to lose customers, this will be yet another blow to the Wells Fargo brand.

Some smaller community banks are weary of mortgage loans after this crisis. In all honesty these types of loans are marginally profitable, expensive to deliver and highly regulated. Many community lenders blame mortgage bankers for setting up a loan, taking their commission and walking away. The finger pointing is also vice-versa. Meanwhile, we as consumers would like to see solutions.

Whatever will become of the banking industry is still unclear. It does seem that with the launch of the Consumer Financial Protection Agency (a consumer watchdog agency), consumers will have a better shot. This group will write rules to ensure financial products are clearly understood, transparent and fairly distributed.

That said, I think a few key things have happened lately that point to better days:

The Dow and S&P 500 have rose for the fourth straight session. It’s the Dow’s seventh consecutive Monday gain, and today stocks closed at a 14-month high.

The fact that Exxon Mobil just struck a $31 billion stock deal and Abu Dhabi will foot $10 billion to help Dubai is also boosting markets.

Industrials and commodities are sending the market up along with these big deals.

After a very rough two years, I see the sun on the horizon.

Healthy Holidays in Cow Hollow

mmoresi@mcguire.com (Marla Moresi-Valdes) — Mon, 14 Dec 2009 21:42:07 -0800

The holidays are such a tough time to stay on top of your diet and keep your exercise in tow. Between all of the lunches, happy hours and parties, how does one stay healthy and not gain 10 pounds? Well, if you live in Cow Hollow there are lots of things you can do to prevent the dreaded weight gain. As we all know, diet and exercise are the leading factors to keeping trim. So for the month of December I’m going to share some Cow Hollow restaurants and grocery stores, along with where to exercise, to maintain your waistline throughout the holiday season.

Let’s start with food. Everyone’s body is different, but I whole heartedly believe that what you put into your stomach is the main factor effecting your health and weight. This past month I tried a couple of organic and/or vegetarian restaurants that I recommend.

The Plant Café Organic, located at 3352 Steiner Street, is an excellent café with a very diverse menu. They serve weekend brunch and lunch/dinner on all other days. They even serve organic wine, beer, and sake! Almost all ingredients are 100% organic in everything they serve, so I don’t think you can go wrong.

Alive Vegetarian Cuisine, located at 1972 Lombard, is another great option for very healthy food. Their hours of operation are a bit more minimal, but if you are craving an amazing veggie-burger, then Alive is the place.

If you like to cook or quick take out from a really tasty deli I suggest The Real Food Company located on the corner of Filbert and Fillmore. Their fruits, veggies, and meat/seafood department have excellent choices and their pre-made food in the deli department is FABULOUS! I highly suggest any of their roasted veggies, salads, or salmon.

If you need to cure your sweet tooth there are several frozen yogurt/smoothie shops close by: Lilly’s Organic Yogurt at 2760 Octavia, or Tuttimelon on Chestnut/Scott, to name a couple.

Alive Vegetarian Cuisine Interior

Healthy eating and moderate exercise go hand in hand, at least if you want to be at optimum health. If you have some extra cash at holiday time there are several gyms/studios you can join.

Crunch has two locations in the area: Chestnut/Scott and Union/Gough. They always have some type of deal going on. If you are a good negotiator you can probably get at least a one week pass, maybe even a 30 day trial pass just to check out the gym and decide if you want to join.

There is always 24 Hour Fitness on Buchanan near Marina Blvd. if you want to find something that is a little less expensive.

If you are more interested in core body strengthening and stretching then I highly suggest The Bar Method on Fillmore/Chestnut or Global Yoga (Bikram) on Chestnut/Divisadero. I promise you will sweat enough in one Global Yoga class to shed at least 1-5 pounds!

Alas, if you don’t want to spend a dime then I highly suggest the good old-fashioned way: get your sweat going outside. Running along Crissy Field and out to Fort Point is an amazing run.

Last but certainly not least, the Lyon Street Steps will kick you into shape really fast.

Image provided by JamieSanford

Best Kid Holiday Events in the East Bay

amesj@mcguire.com (Jennifer Ames) — Tue, 15 Dec 2009 11:16:23 -0800

Tonight we are headed out for our annual pilgrimage to visit Santa. There we’ll take a ride on one of the East Bay’s treasures, the rare 1911 Herschell-Spillman Menagerie Carousel in Tilden Park.

The park is open from 5:30-8:30pm, with Santa making his appearance every Monday and Tuesday night through December 23rd. The grounds and trees are decorated with lights, and Christmas trees line the merry-go-round. It can be cold, but the hot coco and the good cheer will warm you up.

One of our other favorites are the Zoo Lights at the Oakland Zoo. Our 3 year old loves to ride on the train (cold or not) and see the Christmas lights around the zoo as all the animals sleep. There are LED lights throughout the zoo, a row of giant toy soldiers and Santa’s village. Definitely bundle up, grab some hot coco and enjoy the show!

Image provided by CW 44cable12

Don’t Forget The Sewer Line

rholden@mcguire.com (Roberta Cohen Holden) — Tue, 15 Dec 2009 11:07:49 -0800

One of the most important steps in both preparing a home for sale and purchasing a home in San Francisco is to have inspection reports that give you a reliable assessment of current systems in the home.

One inspection that is frequently overlooked involves the sewer line. A faulty sewer line can cause a lot of distress (like backed-up toilets) and can be expensive to repair. Considering that many buildings in San Francisco are 60 to 90 years old, it’s not surprising that many sewer lines, especially those made of clay, function at less than their intended capacity, whether:

From tree roots that have worked their way into the lines;

Debris that over the years causes a build-up in material that reduces the flow in the lines;

Breakage from the pressure of cars and trucks on the street and driveways that can eventually cause a very unpleasant back-up in the system.

As a Realtor I counsel my clients, both buyers and sellers, to review and perform all inspections necessary to get a true picture of the physical building – which is a big factor in determining the value of a house. This may include paying for inspections by reputable and trustworthy inspection companies if those inspections have not already been performed.

The best way to determine the status of a sewer line is to send a camera down into the line. The sewer line that runs from the house to the street, including under the sidewalk, is usually the responsibility of the owner. The City takes responsibility for the line from the end of the sidewalk to the hookup under the street where it connects to the city sewer system. Companies that perform termite/pest and contractors inspections will note any indications of a faulty sewer line, but they do not usually include sending a camera down into the line, so it’s best to call a plumbing company that specializes in sewer lines and has the proper equipment to perform the inspection.

The cost, sometimes $250-$300, is well worth it because having to put in a new sewer line can cost thousands of dollars.

"Neighbor to Neighbor" Blog Series: Vehicular "iSore"

agordon@mcguire.com (Adrian Gordon) — Wed, 16 Dec 2009 12:45:56 -0800

Imagine awakening to the sight of a large yellow school bus parked in front of your neighbor’s home. You think (and hope) that this is a very temporary thing. If it’s late summer, perhaps your neighbor will be driving to Burning Man and leaving the bus in Black Rock City after the event. But the weeks and months drag on without a change in location of the bus. In fact the bus now has blue calico curtains on the windows. What to do? You think that a permanent stay for the bus means, at the very least, embarrassment when your friends visit and, in addition, quite possibly a loss in your property value.

Most people don’t like conflict, especially with a neighbor. However some action appears necessary. The first thing to do is to talk to your neighbor and courteously ask how long the bus will likely remain where it is. You also would want to politely indicate that you don’t think that the bus fits the neighborhood vibe. Hopefully that would take care of it and your neighbor would move the bus to a rented parking place or somewhere else more appropriate.

If simple discussion doesn’t resolve the issue, then it’s time to do some research. In fact you may want to have done some research before the first conversation just to understand the rules. If you live in a condominium community or any area with a neighborhood association, then chances are there are written covenants, conditions and restrictions (CC&Rs) that govern the parking of vehicles, whether on the street or on a driveway. You may have a copy of the CC&R’s in your dusty home purchase file complied by your real estate agent. If not, obtain a copy of the CC&Rs by contacting one of the association’s officers or by searching county records. In the latter instance, a title company (perhaps for a fee) will locate the CC&Rs as a document filed against title to your property and that of your neighbor. You can also visit the county recorder yourself.

If there are no privately enforceable rules via CC&Rs and no permits required for local parking, then you need to consult local government ordinances. The California Vehicle Code generally prohibits the parking of any vehicle for 72 or more consecutive hours on a highway in violation of local ordinance. “Highway” is defined as a publicly maintained right of way, including a street, for the use of the public for vehicular travel. So if your town, city or county has an ordinance adopting this California Vehicle Code section, and most jurisdictions do, then the police or sheriff will ticket and tow an illegally parked vehicle, usually after a citizen complaint.

I recently spoke to the Marin County Sheriff’s office to get an interpretation of the law in the County (outside city limits) and learned that the Sheriff will not cite a vehicle parked on a street designated as “not county maintained”. If you plan to ask the police to tow a vehicle, in the spirit of good will, it would be a good idea to first talk to your neighbor suggesting the possibility of this action. As I’ve said in earlier blogs, mediation services are available either through community boards or the offices of private mediators and certain attorneys.

If an unsightly vehicle is parked on the driveway (off the street) and no CC&Rs are available to assist, then maybe you’ll just have to live and let live. However, if the vehicle’s appearance is clearly offensive to the average person, there may be recourse through a lawsuit for “private nuisance.” Some towns have laws on the books that may define nuisance (in this case, a public nuisance) to include the vehicle in question. For example a Mill Valley ordinance includes the following definition of a public nuisance:

“Maintenance of property in a condition that is defective, unsightly, deteriorated, or in disrepair such that it causes appreciable diminution in the values of surrounding properties or is otherwise materially detrimental to adjacent properties or improvements.”

This is the “heavy duty” side of neighbor issue resolution. Good neighbor relations almost never follow. Using a nuisance lawsuit or pressing the city to declare a public nuisance should be the last resort, perhaps suitable for situations where a person, with utter disregard for his neighbors, leaves one or more rusting and broken down vehicles in full view for an extended and indefinite period of time. However, if the cause of the unsightly mess is not malice or a lack of care but instead a lack of funds, or if there is an aging resident involved, maybe a courteous offer of help from the neighbors will get the mess moved away and leave everyone feeling better for it.

San Francisco’s Special Situation
In the City, the number of live-in vehicles has mushroomed during these hard economic times. The City is trying to satisfy its citizens’ desires for clean and safe streets by moving the vehicles out of long term parking situations on the streets, and at the same time it is trying to avoid exacerbating an already tough situation for vehicle residents. To satisfy these sometimes conflicting objectives, the City at times is sending out Homeless Outreach Teams instead of uniformed police to knock on vehicle doors. Team members gently ask if there’s anything that they can do to ameliorate basis issues for the residents, such as offering medical care, shelter beds and motel rooms, and substance abuse and mental health counseling. With an estimated 2000 to 3000 people living in vehicles in the City, this type of help is more important than it has been in a long time.

Image provided by Visualist Images

New Condos in The Mission (555 Bartlett Update)

jchapin@mcguire.com (Jason Chapin) — Tue, 15 Dec 2009 21:23:02 -0800

If you live in Bernal Heights, Noe Valley or the Mission, you have probably driven by and noticed the new construction project at the corner of Mission and Cesar Chavez. The four-story building with street-level commercial space has been ensconced in scaffolding for several months with a banner hung outside reading “555 Bartlett Coming in Fall 2009.”

Things are moving forward at 555 Bartlett, also known as 3400 Cesar Chavez, but we don’t anticipate the first sales until late February or early March. The scaffolding came down this week, and the developer seems to be entering the finishing stages. According to their website, the sales team is discussing an open house reception at some point in mid- to late-February.

On the upside, 555 Bartlett promises to be affordable to first time buyers. With one-bedroom homes starting in the $400K’s, two-bedroom homes starting in the $500K’s and a few three-bedroom homes priced in the $600K’s, there has been sincere interest. The location is central to transportation (think BART, MUNI and 280/101) and is within close walking distance to a diverse array of restaurants.

Yes, Cesar Chavez is both busy and noisy, but it’s about to undergo a greening project that should cut down on both.

A Love Note to Burlingame

szamalin@mcguire.com (Slava Zamalin) — Tue, 15 Dec 2009 20:41:55 -0800

Burlingame. This is where I live and I really enjoy it.

When I moved to the Bay Area, Burlingame was recommended to me by several people. If you’re not looking for nightclubs or a very active social scene, Burlingame is just about perfect. The weather is superb, and when you want to go to San Jose or San Francisco, freeways and public transport (BART via Millbrae or Caltrain) will get you there quickly.

It is indeed the City of Trees with areas reminiscent of my hometown: Kaliningrad, Russia. It’s safe and the schools are good. Burlingame is the coolest city on the Peninsula. Many of the houses are super cute and date from the 1920s. It has not one, but two cute shopping districts: Broadway shopping district, where the storefronts look like they’ve been there forever, and Burlingame Avenue, where there are so many upscale stores and restaurants I wish I could live next to it.

On top of all that there is a nice old train station, the Pez Museum, the beautiful Orthodox Church of All Russian Saints on El Camino Real, BALCO (home of the Barry Bonds steroid scandal), California Drive with its rows of eucalyptus, and the crazy chain restaurants and hotels out on Bayshore Highway.

Not only that but the amazing smell of brownies floats up from the Guittard chocolate factory to the Millbrae BART station all the way to the center of Millbrae. One could only imagine the entire town of Burlingame might be inundated with brownie smell. It goes without saying that I want to live in a city that smells nice and fudge-y.

Image provided by Pascal Vuylsteker

SOMA Holiday Party

pmueller@mcguire.com (Paul M. Mueller) — Tue, 15 Dec 2009 20:54:08 -0800

The McGuire SOMA office had its annual holiday party at one of the most vibrant restaurants in the area: Tres Agaves, and it was fantastic!

The Bluxome Street agents occupied the private dining room where they enjoyed the mini cilantro lamb burgers served with stunning chipotle sauce as well as many other dishes. The food comes from the state of Jalisco in Mexico, and from the décor to the food, everything was perfect.

Tres Agaves features 100 percent blue tequila, and as you might imagine, the margaritas were spectacular, making our holiday party all the merrier.

While we were enjoying our private party, other customers were enjoying themselves in the energetic main dining room. I will definitely bring my clients here.

Image provided by bbum

Riding San Francisco's Historic Street Cars

khartquist@mcguire.com (Karen Hartquist) — Tue, 15 Dec 2009 21:48:58 -0800

San Francisco is home not only to the world-famous cable cars but also boasts a fleet of historic streetcars. They run along the North Waterfront, from Fisherman’s Wharf to the Ferry Building, then up Market Street all the way to the Castro district.

Known as the F-Market & Wharf line (F-Line), this line is both:

The world’s longest publicly-operated vintage streetcar line in daily service, at 6 miles long

One of the most popular with over 20,000 daily riders, along with the St. Charles line in New Orleans.

The F-Line operates more than 30 authentic streetcars from around the world, with even more being restored every day. These streetcars come from places such as New Orleans, Louisville, Philadelphia, Chicago, Boston, Milan, Melbourne, and Blackpool, just to name a few cities.

Although the F-Line is extremely popular with the tourists, it is also a great way for locals to get across town and take in the sites. You can hit the North and Central Waterfronts, Financial District, SOMA and the Castro all in a “Museum in Motion!”

The Affordable Solar Option

ablakeley@mcguire.com (Amy Blakeley) — Tue, 15 Dec 2009 21:56:50 -0800

We’d all like to pay less on our energy bills, right? Most of my clients don’t mention solar power as a desired amenity. Why? Solar panels are few and far between on homes in San Francisco; basically they are just too expensive to consider. But not anymore.

CBS Evening News recently presented a segment on how some solar companies are making solar panels affordable for homeowners. I contacted SolarCity to see how the program works.

Companies such as SolarCity, who lease solar systems to customers, do consultations on homes and determine the system and the rental rate. Once installed, the customer pays his (now reduced) PG&E bills plus a monthly rental fee for the system. Although the CBS news segment quoted the monthly rental fee to be $100 per month, a spokesperson from SolarCity stated that the monthly rental rate is based on the size of the system, and indicated that the monthly rate for San Francisco County would most likely be less.

Lease terms for solar panels are 15 years, with small increases in the rental rate annually. The annual increase can also be bought down at the beginning of the lease term to reduce the percentage of annual escalation (currently about 3.9%).

What if you decide to sell your home before the 15 year lease is up? The leases are transferable. You can also choose to pre-pay the remaining amount of the term, which would be a great perk to the new buyer. At the 15 year mark, customers may negotiate a fair market value and purchase the current equipment, or enter into a new lease.

Holiday Present for North Side Investors

apaolucci@mcguire.com (Andrew Paolucci) — Tue, 15 Dec 2009 22:51:58 -0800

We’re now deep into the Winter/holiday season, and investors who’ve been waiting for the optimal time to leverage their buying power have reached their peak position.

With prices for small, multi-unit properties (2-4 units) on the north side of town at historic lows (under $630 sq. ft.), investors have an opportunity to engage properties from a pure value-based approach and reap the benefits, not to mention the year-end tax advantage.

T’is the season for investing.

Upper-End Activity in San Francisco

lfleming@mcguire.com (Lea Ann Fleming) — Wed, 16 Dec 2009 13:18:01 -0800

There are lots of statistics and analyses about real estate flying around right now. Many are about real estate nationwide, throughout California, or about the San Francisco Bay Area, which usually means nine Bay area counties, not just San Francisco. In the midst of all these numbers it’s interesting to zero in on a couple of new upper-end deals in the city of San Francisco. Specifically:

2505 Divisadero, asking $8,995,000, just closed escrow. This house was originally listed in 2007 at $12.5 million and has been on the market since then, with price reductions over time until it was listed in Oct. 2009 for $8,995,000.

3022 Washington, asking $3.9 million, is reported to be in contract. It was originally listed in 2007 for $4,850,000 and then withdrawn. It was relisted in May 2009 for $4.4 million, and reduced in August to $3.9 million.

2849 Pacific has been listed since Sept. 2009 at $14 million and is now in contract.

What does this activity mean? These houses, like other properties, have languished on the market during this tough year of 2009. For these three specifically, it sounds like people with money, who can afford these price points, found houses that they wanted at a price they thought was fair — and a seller willing to sell.

As 2009 draws to a close, the same may be true for all ranges of price and types of property. It sounds like holiday shopping is taking place outside the mall!

2849 Pacific courtesy of SocketSite

The Tale of Two Boulevard Ways

jrichardson@mcguire.com (Judy Richardson) — Thu, 17 Dec 2009 14:49:11 -0800

Two houses are being listed across the street from each other on Boulevard Way in the Lakeshore area of Oakland.

The first is listed by Highland Partners and presents as an updated 3 bedroom, 2 bathroom house that is over 1900 sq ft. The house is listed at $799,000 (reduced from $849,000) and has been on the market now for 56 days without an offer.

Across the street is quite a different story: a duplex in good shape listed at $379,900 with two 2 bedroom, 1 bath units with garages. Each unit is over 1,000 sq ft. and are vacant. The house is a REO (real estate owned) property and took offers on December 7th after being listed for 10 days. According to a colleague in my office, who had a client who offered on the property, there were over 20 offers on the property and he never even received a response to his all cash offer at the asking price.

It just shows you there is a high level of pent-up demand for a deal in a good neighborhood. The house across the street clearly shows the value of the duplex to be twice of what it was listed for, and it will be interesting to see what the new owners paid for it once the house closes in January.

Stay tuned!

No Mortgage, Yet Foreclosure?

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Thu, 17 Dec 2009 17:30:40 -0800

There are cases in which owners have lived in a home for 30+ years, yet the home ends up as a “Bank Owned” property. How could that happen?

Several years ago a good friend called me. She was in tears. Her 90 year old grandfather had received a default notice for his “house payment.” The home, located in San Leandro, had been owned by the same family for 80 years and had no mortgage for most of that time.

What happened was this: While at his local banking institution a teller asked him if he would like an equity line of credit. She explained that he could write checks on the account, but he didn’t understand the monthly payment. The account was set up, and he used it occasionally, writing checks on this account.

He lived only on Social Security payments, and had more than enough funds in other accounts to live very well, but there was no way for him to pay back the money he wrote out of this equity account. He was completely unaware he was writing checks against the equity line of credit rather than his bank accounts.

It became a mess. When his granddaughter tried to clear it up, the bank would not communicate with her because of confidentiality laws. After a few weeks, a power of attorney was established. Luckily the granddaughter was able pay off the debt and close the account.

Unfortunately there are many elderly people that are not so lucky.

While working with an REO team in 2008 I saw a similar situation: no mortgage for 30+ years, then an equity line of credit was opened. They used the money and couldn’t pay it back.

If you have elderly family members it’s best to make sure they fully understand their accounts. It can be difficult to talk about because seniors’ independence is the most important thing to them, and their private matters are usually not up for discussion, but this is an issue that cannot be ignored.

San Mateo Park History Part II

mteixeira@mcguire.com (Mary Ann Teixeira) — Fri, 18 Dec 2009 14:39:15 -0800

San Mateo Park, one of San Francisco Peninsula’s most beautiful communities, is adjacent to the towns of Burlingame to the north and Hillsborough to the west and south.

The neighborhood ambiance and lush gardens throughout the development were the collaborative effort of George Howard, Jr., a noted local architect, and John McLaren. McLaren is famous for his design of Golden Gate Park.

Together, Howard and McLaren laid out gently winding streets, conforming them to the rolling terrain of San Mateo Park. They crafted 69 meticulously landscaped circles, medians and crescents to adorn this upscale neighborhood.

Howard formed strict deed restrictions to assure that every home built in San Mateo Park would be of quality, both in construction and design. San Mateo Park is the home of an assortment of architecture styles: Queen Annes, Mission Revivals, Craftsman Bungalows, English Tudors, Colonials and Mediterraneans.

A number of landmark properties designed by noted architects Bernard Maybeck, Julia Morgan, and, of course, George Howard, Jr. grace the tree-lined streets. Over the years, many of these landmark homes have been lovingly restored.

Today, “The Park,” as it is affectionately called, is one of the most exclusive addresses in the San Francisco Bay Area close to 5 star restaurants, upscale shopping and fabulous schools.

San Mateo Park boasts of an excellent elementary school, the San Mateo Park Math and Science Magnet School, which has received funds from the Federal government to:

Increase test scores

Develop a diversity-sensitive community

Develop and implement a program with unique and specialized curriculum

Close to downtown San Mateo, Park residences can dine at five-star, award wining Voigner Restaurant, which features plush booths, a stunning display of homemade charcuterie, a cozy fireplace, and a blazing wood-fired brick oven. Known for its wine and menu pairings, Voigner won Wine Spectator’s 2008 Award of Excellence.

Voigner is housed atop San Mateo’s “Best of Choice” award-winning market, Draeger’s, which features a huge selection of specialty foods and produce, as well as a renowned wine department.

However, it is the neighborhood feeling of well-maintained homes, and landscaped gardens along with the exuberance of its architecture and landscaping, that lends unique character and makes San Mateo Park so desirable.

For more information about San Mateo Park, visit the neighborhood association website.

Do I qualify for a Short Sale?

emartin@mcguire.com (Ernie Martin) — Fri, 18 Dec 2009 14:44:21 -0800

Qualifying for a short sale depends on a number of things.

The first question you need to ask is, if I sell the home at its current market value, will I have enough to pay off all the loans, back property taxes (if applicable), other liens attached to the property, and transfer fees and other closing costs? If the answer is yes, then you qualify for a traditional, “normal” sale. If the answer is no, you’re half way to qualifying for a short sale.

The second part is the gray area. Different banks will have different requirements for a short sale approval. Many of these requirements will change depending on several other factors the bank will look at. Some of these factors include:

What your net monthly or annual income is

What your monthly expenses are

If you have any other assets

If the loan(s) are purchase money or refinanced

Is it your primary residence

What state the property is located in

Do you have a hardship

Have you stopped making your mortgage payment

Are you forced to relocate

Do you qualify for a loan modification

Most importantly the bank will consider the amount of the offer received for your property, and then weigh that against the above in determining if they’ll say yes to the short sale.

Regardless of how the above questions play out, the thing to keep in mind is that the people the banks employ to make decisions on its behalf don’t necessarily care if the property goes into foreclosure. It’s not always what you tell them, a lot of times it’s how you say it.

Representation and Breaking My Own Rules

rzipkin@mcguire.com (Roger Zipkin) — Mon, 21 Dec 2009 08:24:47 -0800

Today I’m meeting a new client who has asked me to represent them in their purchase of a home I have listed (a.k.a. “dual representation”). Both buyer and seller are supportive, yet I’m torn. In virtually all cases I simply refer the purchase out to a known and trusted agent in my network, separating the representation.

Today I’m considering breaking my own rule. This new client has presented me with an option to represent both parties, or potentially face their use of a discount online buyer’s service.

Question of the day: What’s in the best interest of the client?

So where will this “online” agent be in 2½ years if the client is in trouble? Is the online broker capable of delivery in a potentially litigious and challenging environment? Do they have the financial backing to support challenges if they arise? Will they even be in business given the changing market?

An open mind is a great asset. In this case, breaking personal rules actually serves both buyer and seller. My brokerage chooses agents with care and great diligence. Management team members carry MBAs and Stanford law degrees. Ownership lies in multiple generations of highly respected and ethical family ownership, along with the financial strength to weather storms as they arise. This is a great opportunity for the client to steal a great home, protected with great representation. And yes, it costs. The key to breaking the rule is, it also returns….

Multi-Units: Question for the New Year

linda@quinnsolutions.com (Linda Quinn) — Mon, 21 Dec 2009 11:20:48 -0800

I recently wrote about the hard decision of defaulting on a loan to do a short sale. Most of those sellers had very little down: 0-10%.

A different investor group has an equally hard decision to make on whether to sell: those who bought income properties with large (20-50) down payments, but who also have sizable mortgages. Many are either close to break-even or have a negative cash flow because of debt payments. Repeatedly, they wonder whether to ride out the downturn.

If someone has a building that is worth $1,000,000 today, but wants to sell it at $1,200,000, we need to see a 20% jump in property values. Remember, I’m talking about a price jump for income properties, not single unit primary residences. Especially with the smaller buildings (2-6 units), the rates of return are lower than larger buildings, and from the buy side, they become harder to justify in this economy.

The most significant question is: What does the recovery look like? I believe this conversation must consider two economic trends: deleveraging and a muted recovery.

People want to pay off their debts.

They cannot get new debt.

A jobless recovery may not give us a hockey stick price rise for rental properties.

Some investors have cut their losses this year and I give real life examples on my blog on what those losses look like. The losses are usually six figures.

None of us has a crystal ball, but I predict some owners are asking this question as we enter the new year.

Social Networking: Business Boon or Time Suck?

cbamberger@mcguire.com (Cameron Bamberger) — Wed, 23 Dec 2009 13:10:19 -0800

I scramble to understand and adopt every new technical innovation and iPhone app in the hopes that it will turn me into a money magnet and I will never have to worry about my bills again.

Will I be the next real estate Tila Tequila, discovered for my online notoriety? Will that bring me real estate business or destroy my career? Or spawn a new but derivative reality TV series? In the meantime, will my future husband pick me out from across the universe while browsing LinkedIn?

Tila Tequila image provided by sarahinvegas

These are rhetorical questions I devised to amuse myself while writing this blog post, trying to come up with something that makes me appear to be an intelligent source of information. I realize the goal is that clients will be drawn to the phone hypnotically to ask me for help with their real estate needs. Or they will happen to see my information first, last, intentionally or mistakenly, and call me!

The issue is that the more social networking sites I have to update daily, the less work I can do for my clients. In business, my primary goal is to be responsive to the needs of my clients. Would you want to do business with a real estate agent who plays video games 20 hours per week? If not, why would clients want to work with an agent who spends 20 hours a week updating their Facebook account(s)?

I am not saying that social networking does not hold value for many things (vague, I know), but honestly, I hate having to log in in order to respond to a message I receive from Facebook (which may be changing soon). I would rather interact with people outside the platform. Even that isn’t always easy – there is unwritten protocol about asking for a person’s email address after you have been talking to them on Facebook.

Should I even be spending time pondering such things? Or could my time be better spent elsewhere?

True, it is convenient for me to complain about such things in this medium, but I prefer face to face contact, and spend my time on other things.

Buyers Don't Buy in a Buyer's Market

ccummins@mcguire.com (Cynthia Cummins) — Mon, 28 Dec 2009 08:20:41 -0800

A TV reporter acquaintance of mine called, asking if I could comment on camera about Congress just passing a law giving homeowners a $6,000 incentive to sell their existing home and buy a new one.

“What do you think about that,” he asked?

“Hmm, I don’t know if $6,000 would make a very big difference,” I ventured.

“OK,” he said, “can you meet me at your office in 45 minutes and we’ll get it on camera?”

“I suppose so, yes,” I answered, thinking excitedly about 15 minutes – or 15-sound-byte seconds to be more exact – of fame. Since I’d just gotten home from a workout I had to rapidly suit up for business, apply lipstick, brush my hair, put on some earrings and hightail it over to McGuire.

On the drive, I considered his question and decided that $6,000 does make a difference. It gets people’s attention. It reminds them that now is the time to take advantage of low interest rates and terrific prices.

“Besides,” I said to the rear view mirror, “people love a bargain!”

Seated at my desk with my laptop, I spoke earnestly in reply to the reporter’s on-camera questions. I added a spontaneous comparison of the tax credit to the “cash for clunkers” program. Then I threw in something a trusted colleague of mine always says: “Buyers don’t buy in a buyer’s market.”

“Think about it!” I enthused, “It’s true. Buyers wait until the market begins to turn around and then they buy. They don’t buy when the buying is best.”

Satisfied with our interview, the reporter and his cameraman took off for their next assignment. He called me 30 minutes later to tell me that his story and my interview was getting bumped because of some breaking news.

Plus, he explained, they had a story to air about foreclosures.

Oh well.

Will Buyers buy in 2010 before market continues to climb?

aswetland@mcguire.com (Andrea Swetland) — Mon, 11 Jan 2010 13:34:32 -0800

I am currently in counter offer with three different buyers to purchase a home. But I also have a lot of buyers that are hesitating.

They are worried about the market and what 2010 will bring. For example, interest rates may rise, reducing some buyers’ purchasing power. I am recommending to buyers that they really look at all the facts and benefits of buying sooner rather than later:

If the market goes up and you can’t buy, you can’t buy.

If market stays the same or dips slightly in the next year, at least the buyer is in a property, getting a tax benefit, enjoying a good rate and unless he/she needs to sell. The dip means nothing to them.

Buyers: Look at all the facts and scenarios before deciding not to buy in this current market. In the 80s when interest rates made it ridiculously expensive to buy a place, people still bought. Over the years the market went down, went back up, leveled out. Those people are still “positive” in most cases. In fact, since 1995, San Francisco properties have appreciated an average of 183% (not accounting for inflation).

Happy 2010.

Let's Lose 5 Pounds Fast!

ccummins@mcguire.com (Cynthia Cummins) — Mon, 04 Jan 2010 15:47:23 -0800

Will 2010 be lean or fat?

We’re watching. We’re looking at news, websites, blogs, tarot cards.

We want facts, statistics, prognostications: Are things improving? With the San Francisco real estate market, I mean.

I’ve just received a copy of my first Tuesday broker’s tour of the season – a super slim 9-½ pages. Now, normally this would mean that sales are brisk and we’re back to our “buyers-show-up-naked-with-a-basketful-of-money-on-their-heads” market. But the dearth of inventory is really only due to it being very, very, very early in January.

We’ll know more next week and the week after.

Meanwhile, keep your eye on the fine print. There’s a definite correlation between the health of the market and the number of exclamation points and all-caps and bold fonts appearing in advertising.

The less of the following you see, the better:

MUST SEE!

UNIQUE!

STILL AVAILABLE!

FAB!

VIEWS!!!

PKG!!!!

HWF! (whatever that means)

MOTIVATED!!!!!!

&$?#(%)@^*!!!!

Then, of course, there’s my theory about food on brokers’ tour. Less food = hotter market. Reviewing this first tour of 2010, I don’t see any crudite, bagels, sushi or aram sandwiches on the menu.

Good news for our bottom lines as well as our waist lines!!!

Image provided by Eva the Weaver

A Seller's Market (at the Right Price)

cisaacs@mcguire.com (Carole Isaacs) — Mon, 04 Jan 2010 15:22:33 -0800

Recently I held an open house at 530 Chestnut #C201 in San Francisco’s North Beach where I asked a young couple: “Is this condo what you are looking for?” Their reply: “Well, actually we would like to buy a house. Do you think we can find one under $800,000?” “Of course,” I replied, “but not in North Beach .”

They both worked in the Financial District and needed to be near public transportation. A week later we toured the Sunset where there are several street car lines going directly downtown. In the Sunset neighborhood there is choice of 2-3 bedroom, 2 bath homes under $800,000.

This particular price niche is one of the most active in San Francisco. I advised them that in today’s market, buyers must be prepared to make an offer when a house in this price range first goes on the market. Many buyers think houses will be reduced and if they wait they will get a better price. When a home is well priced and in this price range, the sellers can expect to have an offer within a week or two.

Is Real Estate Killing the English Language?

cbamberger@mcguire.com (Cameron Bamberger) — Thu, 07 Jan 2010 13:38:43 -0800

In my last blog post, the pressure of having to write something unique, interesting and informative on the web caused me to exit the topic of real estate almost entirely. I didn’t want to just spew real estate information (not that I don’t think people want that information). It’s just that I think people can tell when one has an ulterior agenda, and it turns them off. But acting cavalier and writing off topic can be contrived and calculated as well, and contain its own subtext. So what’s the difference?

Once again, I am veering off subject a bit, but may I compare myself to Andy Rooney?

I am throwing caution to the wind by discussing one of my favorite pet peeves: spelling errors and the rampant misuse of apostrophes in the real estate industry.

I do not consider myself any sort of grammar or spelling expert, but when somebody sends a professional email that says “The New’s of Today,” I am a little disturbed. I am more forgiving about mixing up your and you’re, or their and they’re, though I live in fear that the errors will begin to rub off on me. Every time I hear or read an error like these, it does occur to me that slowly, my ability to speak and write English correctly is being eroded.

Another topic I could rant about would be the incredibly pervasive misuse of the words “I” and “myself,” but I will have to cite mainly television as a source, and therefore expose myself as the sedentary couch vegetable that I become most evenings.

But back to complaining about language in real estate, particularly real estate marketing: “Price Deduction!” “Specious Interior!” “Expensive Layout!” Unfortunate, but pervasive in marketing. And it does not even necessarily matter.

Some may disagree, but flattering photos may be more important than skillfully written marketing.

Image provided by billypalooza

HOA Stories Pt 4: Unexpected Fallout

pmcarthur@mcguire.com (Phyllis Ann McArthur) — Mon, 11 Jan 2010 13:06:49 -0800

I never saw this coming, although I should have.

One of the victims of the 2009 economy has been HOAs. Even the most well maintained complexes in affluent areas have not been spared.

Of course there would be uncollected monthly dues. If people are struggling to pay their bills, HOA dues would certainly would take a back seat to buying groceries.

Think about the short sales. If a home in one of these PUDs ends up an REO, you can count on no dues having been paid for months from that specific unit.

Recently a lender notified me that when the received a condo certification, the HOA was 25% in arrears. No way they would lend on a unit in the building. When I notified a mortgage rep from Wells Fargo, he too confirmed that they could not lend on an HOA that was so far in arrears with their HOA dues.

If you are an owner of a condo or are in a PUD and are thinking about selling, find out what the financial state of the HOA is. Most homeowners have no idea.

SOMA Winning the Gold

smartin@mcguire.com (Stasi Martin) — Mon, 11 Jan 2010 16:18:44 -0800

In a series of blog post I reveal what’s happening in San Francisco’s diverse South of Market neighborhood.

Individual citizens and neighborhood groups, working as partners with official city staff, have taken on the challenge to create and improve the beauty of the South of Market. For example, the San Francisco’s Department of Public Works and Urban Solutions are working in conjunction on the beautification of SOMA. The goal is to enhance and encourage new and existing business while supporting the integrity and diversity of the neighborhood.

Extensive efforts are being made to keep the streets, sidewalks and parks clean and vibrant while also focusing on the function, usability and needs of the commercial corridors. They are supporting a plethora of eateries with the latest highlight being Heaven’s Dog, the latest creation from Slanted Door chef Charles Phan, located on Mission between 7th & 8th Streets.

Image of Heaven’s Dog provided by bittermelon

Led by the South of Market Community Action Network and the South of Market Project Area Committee, one important accomplishment was the creation of a new park within the heart of SOMA. The end result is Victoria Manalo Draves Park, a huge success located between Folsom, Sherman, 6th & 7th Streets.

Residents wanted their park to be green, so wide grassy lawns and a baseball field could stretch across the space that also serves as the recreation area for Bessie Carmichael School. The basketball court is always in use. Just beyond the lively playground (which anchors the park) you’ll find carrots, radishes and basil spill over planter boxes in the community garden. The caring efforts of both newer residents and long-time homeowners have allowed the and Victoria Manalo Draves Park to exceed all expectations.

(The park is named after Vicki Draves, an Olympic gold medal diver who grew up around the corner from the park. In 1942 she was the first woman in history to win gold medals in both springboard and platform diving.)

My next blog will focus on the latest eclectic eateries in the area. Stay tuned.

Image of Victoria Manalo Draves Park provided by throgers

Disclosure: Are Sellers "Material Facts" Enough?

cduncan@mcguire.com (Christine Duncan) — Mon, 11 Jan 2010 20:07:12 -0800

Disclosure, by law, requires sellers to disclose all known material facts and defects regarding the property they are selling to potential buyers.

Are letters/email, receipts and quotes/estimates for work that was (or was not) performed considered material facts?

What about the sellers’ previous disclosure documents they received from the seller they bought the property from?

How about building/work permits, either obtained by the seller or a previous owner?

I think any attorney will say “yes” to all of the above. Do sellers provide all of the above in their real estate disclosure packet? No, but they should include permits and any documentation that affects the property’s value and use, or impacts the price and terms a potential buyer may be willing to pay.

Since most disclosure forms are a result of a lawsuit, it’s in the best interest of the seller to provide as much information regarding the property as they have. And, if any new material facts come to light during the listing through close of escrow period, these should be disclosed to the buyer as well.

Real estate agents are not allowed to fill out disclosure forms for the seller, and sellers can get confused by what and how much to disclose. It’s best to err on the side of caution.

Tick Tock Goes the Buyer’s Credit Clock

ablakeley@mcguire.com (Amy Blakeley) — Tue, 12 Jan 2010 14:18:57 -0800

Home ownership advocates and Realtors pushed hard last year to extend the federal Home Buyers Tax Credit – the $8,000 first time buyer and $6,500 move-up buyer credits now run through April 30, 2010 – but resistance from sellers to put their properties on the market early in the year is wasting valuable time, which buyers and sellers need, to take advantage of the tax deduction.

With mortgage lending guidelines still very tight, the majority of real estate transactions are taking longer than the once-typical 30 days to close. To be safe, buyers should to be locked in to a sales contract by early February. This would allow a comfortable 60 days to tackle any financing hurdles and close before the April 30 deadline.

How do sellers benefit from the Home Buyers Tax Credit? One word: demand.

Most of my buyers last summer would not have been shopping for a home without the incentive of the tax credit. Once the tax credit is no longer available, many buyers will pull out of the market. Putting your home on the market now ensures that you are taking advantage of an optimum buyer pool. There is no guarantee that the tax credit will be extended again, or for how long.

So don’t delay if you are selling your home, buyers are out there now; they are just waiting for the a positive flux in available properties.

Image provided by Leo Reynolds

Carbon Monoxide

jrichardson@mcguire.com (Judy Richardson) — Thu, 14 Jan 2010 06:26:58 -0800

A past client called me last week for a referral to a furnace company. I had helped him and his wife purchase a house in the Piedmont Avenue area of Oakland about 4 years ago, and the only heat in the one story house was a floor furnace.

The inspector recommended installing a carbon monoxide detector above the furnace since it was fairly old. The detector went off and my clients called PG&E. They were freaked out since CO2 is not only deadly but odorless. I have since recommended a few HVAC companies and for them to consider upgrading to a forced air furnace which might run them $6K but is well worth it, not only for peace of mind but resale.

This story worked out with a happy ending, but word to the wise: if you ever smell gas in your house call PG&E immediately. They will come out free of charge, usually within the hour and will identify and often remedy the problem on site. They often recommend turning off the gas until a leak is fixed by a plumber or contractor(as happened to me personally), but its better than some risky alternatives.

Image provided by HeatherMG

The Latest on Oakland's Temescal District

godom@mcguire.com (Gina Odom) — Thu, 14 Jan 2010 19:40:46 -0800

The Wall Street Journal covered Oakland’s Temescal District in December. It doesn’t surpise me!

Temescal has been up and coming for many years now. There is a certain charm and unpretentious vibe here. It’s nestled below Rockridge and has easy access to key freeways.

The district is home to a few of my favorite spots as well.

If you want the best strawberry shortcake in town then you must go to Bakesale Betty.

If you are looking for a great deal on wine of a fun evening of wine tasting then you must stop at The Wine Mine.

I have also become a big fan of the the taqueria La Calaca Loca. You can get a quick bite to eat while being entertained by the decor.

And last and but certainly not least, is Genova Delicatessen where you can find a great sandwich. There always seems to to be a wait but the lines move fast and it’s worth the wait.

The line at Bakesale Betty in Oakland’s Temescal District by quanm25

As for real estate, single family homes in Temescal range from $450,000 to $650,000 and condos range from $300,000 to $500,000. See properties for sale here.

Image of Telegraph Avenue in Temescal by jaydoubleyougee

Rule #5: Don't Lose the Client's Pet

ccummins@mcguire.com (Cynthia Cummins) — Fri, 15 Jan 2010 05:33:56 -0800

“It’s fine. But The Cat is IN the House,” said my seller Miss Y, when I called to ask if it was OK to show her San Francisco condo that very same day on short notice.

Her inflection made me laugh, because she said it like a rap contestant: “Chill-ax cuz it’s me ya’ll. Miss Y is here to tell y’all that The Cat Is IN The House!”

The cat in question is a senior citizen among cats. Very, very, very old. I knelt down to pet said bag o’fur when I first visited the flat and Miss Y cautioned me sternly, “Don’t touch her. She’s mean!” Indeed, the tabby began hissing and swiping at the air with one clawless paw and I jumped back just in the nick of time.

Now that I’m listing Miss Y’s condo, I’ve logged quite a few hours alone with The Cat. And I’ve warned the photographer, the pest inspector, the window washer, one of my colleagues and numerous animal-loving customers to keep their distance. But do they listen? No! All these folks fancy themselves to be cat whisperers.

“Watch out, I’m warning you,” I advised, as the nice buyer advanced toward The Cat with his bare arm outstretched, fingers waving like seaweed.

“Nice kitty. Nice kitty. Aw, whatsa matter? Nice, nice. There now. Who loves the puss? Who wuvves de widdle kiddy. Who?”

Luckily, I found hydrogen peroxide and band-aids in the medicine cabinet.

The Cat Is still IN The House, but I think this is one rare case where the kitty’s human would look the other way if I left the door open and let the beloved pet wander away.

“Don’t worry about her,” Miss Y said, “It wouldn’t be your fault if something happened. Just bring me an offer.”

Best Values in East Bay Neighborhoods

amesj@mcguire.com (Jennifer Ames) — Fri, 15 Jan 2010 08:08:23 -0800

As Realtors, many of us are working with buyers who want a deal. For the buyer who wants to take advantage of the good interest rates and low prices, now is definitely the time to buy. There are a few areas in the East Bay that have seen values drop even more substantially than most.

Take the East Claremont Hills for example. With its newer construction, larger homes (over 2,000 sq ft) and mostly hills views, prices at the height were easily selling in the $1,200,000 range. Now houses are sitting on the market and typically selling under $1,000,000.

Montclair and Piedmont Pines in general have only declined slightly. If you are willing to overlook some less desirable qualities like a vertical floor plan, hillside construction and outdated interiors, the opportunities abound. Foreclosures in these good neighborhoods aren’t plentiful, but when they do pop up, the prices right now just can’t be beat.

Even in coveted Piedmont prices have come down slightly. If it is the perfect family home in a great location and is priced well, it will still sell with multiple offers. However, if a house has a few flaws or is smaller in size, prices can be very reasonable: in 2009 a fair number of homes actually sold under $900,000!

Investment Corner: 4Q 2009 Notable Sales

linda@quinnsolutions.com (Linda Quinn) — Mon, 18 Jan 2010 15:00:55 -0800

Here are notable multi-family sales that took place in San Francisco in the fourth quarter of 2009.

805-811 27th Avenue: This vacant fourplex listed at $995,000 and sold for $1,050,000, or $230/sq ft. Smaller houses that need updating have been selling in the $700K’s in Central / Outer Richmond, so this property was a great opportunity for a homeowner to buy an additional three units for about $350,000.

805-811 27th Ave, San Francisco

55 Manchester: This small, six unit building suggested that investors should look at District 9 more closely this year. Nicely renovated, the sale price of $1,353,000 equaled a 10.45 multiple for a small investor.

55 Manchester, San Francisco

2900 Franklin: This 11 unit mixed-use building with parking, a good tenant mix and individual heating (i.e. no boiler) was probably the best value for apartment buildings in 4Q. Priced too high at $3.4M, this building languished and then sold for a nice 10.38 multiple at $2.7M. Bought by a 1031 exchanger, this price should have satisfied an ordinary investor.

2240 Golden Gate: This was a distressed Lembi building in good condition and in a good rental area, but with a boiler. The lender held out for months in hopes of a sale over $4M. It finally settled for $3.9M, or a 10.26 multiple.

In contrast to the above sales, there were several buildings that drew a premium. Location was key.

1758 10th Avenue in Inner Sunset and 3110 Clay were 7-8 unit buildings that sold at multiples of 12+.

In addition, Jordan Park/Laurel Heights had a five-unit sale at 85 Palm at a 16.67 multiple, or $1.4M. Two-unit 136-138 Palm sold for $1.6M. Both properties needed updating.

For more information about the multi-unit market in San Francisco, here is my Q4 2009 quarterly report (PDF).

The Trouble with Tickets, Tenants and Toilets

cbamberger@mcguire.com (Cameron Bamberger) — Fri, 22 Jan 2010 14:50:47 -0800

I’d like to take a fresh look at the art of blogging. My approach will be not a BLOG, but Complaint Log, or CLOG. Here are three entries for the day:

CLOG #1
MLK Day in the form of freestyle prose

I thought you were a holiday
Especially in San Francisco
oh fair and sensitive city
Why then set the parking meter enforcement against us?
Without warning-
What if we had been towed?
So much hostility over a few quarters?

I asked the meter person
and
I don’t know if it’s true
But he said to blame you
Board of Supervisors

CLOG ENTRY #2
Eviction control in the form of a paranoid political rant

What is the “real” agenda behind recent efforts to impose eviction control on all property types in San Francisco?

I called one of the parties “allegedly” responsible for initiating this possible alteration, and I was told that this was in response to the complaints from “thousands of tenants” being evicted from their condos due to the foreclosure crisis. Not only is this impossibly incorrect, it also makes no sense! Why would a troubled owner evict their tenant in a climate of decreasing rents! Renters are the demanding ones right now, not the individual condo-owning landlords.

Is this an attack on every person who can afford to buy a property? Renting out a property can be a good option for people who can’t sell, or those who choose not to. But for those who can’t afford to sell and need to rent, why impose more restrictions on rentals if concerned about the foreclosure crisis and its impact on renters?

I am not an investigative reporter, so I am not fact-gathering, but let me make one last point before I go off to meditate and lower my blood pressure: There aren’t thousands of condos in San Francisco that are foreclosures, on the market or off. Most of the foreclosures are single family homes in places like District 10, where the tenants are already protected by eviction control (if the building was built before a specific year, which almost all of them were). Many of the condos in SOMA and South Beach that are on the market as bank-owned are in scarce enough supply and priced so low that they are seeing multiple offers, and in some cases, agents are stealing the keys. If there were thousands, we’d be seeing way more than the 200 average sales per month of condos in SOMA and South Beach, for instance.

CLOG Entry #3
Water conservation INordinance

It’s a given that water conservation is critical, and that conservation measures be consistently assessed, revised improved and implemented. But why oh why put that burden on the seller in the form of a point-of-sale ordinance? Do the troubled home-owners need more encouragement to dump their properties? Why not put the onus on the buyer, just as it has been with the energy conservation ordinance? Are new owners not complying? Could the focus perhaps be shifted to compliance? Forcing the seller to possibly replace the toilet (and in some cases, the entire, obsolete housing for the toilet $$$) is problematic and could cause difficulty or failure of sales. I just like to look at the worst-case scenario.

Anyway, I think the intentions are great, but that the implementation was poorly considered.

"The Birds"

gcoulter@mcguire.com (Gary Coulter) — Mon, 25 Jan 2010 08:06:59 -0800

In recent months I have been astonished by the number of crows that have populated our community. It is reminiscent of the movie The Birds by Alfred Hitchcock. Where did they come from and why?

The population was decimated when the West Nile virus swept the country, but in many areas, even Birmingham, Alabama, the population is re-surging.

It is amusing to talk to neighbors in Burlingame and hear all the stories about these invaders.

Basically harmless, they travel in numbers and are quite noisy and arrogant. One sunny morning I went into my backyard to see at least a dozen of these creatures bouncing around my lawn, then out of the blue Smalls, my French bulldog, came bursting out of the house barking, and poof they were gone.
They sit on wires, fences, trees, and in the middle of the street. What did we do to deserve the arrival of these menacing aviary visitors?

I have heard more than one neighbor say it’s time to invest in pellet guns, but for me it’s just another problem in paradise.

Shopping in Marin County

Victor@MarinHomeSale.com (Victor Fisher) — Mon, 25 Jan 2010 20:27:36 -0800

I live in Sausalito, which is just a stone’s throw from the Golden Gate Bridge and all the amenities that San Francisco has to offer. So why is it that when it comes to shopping we always wind up staying in Marin County even when it means adding a few more miles on the car?

The answer, I decided, is convenience, I’m not concerned with the $6 bridge toll, but the parking issues in San Francisco are a nightmare and I only have a license plate on the rear of my car not on the front. Why? I just like the way the car looks; doesn’t seem to matter in Marin but when I park in the city the meter maids love to leave a $100 ticket under the wiper blade.

I love the quaint shops along Chestnut and Union Street but there’s a similar vibe in Marin. Sausalito is known as a tourist destination, but it has a multitude of art galleries along Bridgeway. You can also pretend to be a local and escape the crowds by visiting to Caledonia Street, where you shop for chic designs at Green Apples. And when you’re just too tired to shop anymore, cross the street and dine at Michelin- and Zagat-rated restaurant Sushi Ran.

Image of Sausalito’s Bridgeway provided by rkramer62

Want more convenience? Then head to any number of malls where the parking is easy. And the crowds? Not so bad. Heading north from Sausalito to Mill Valley you’ve got the outdoor Strawberry Village with a Spanish tile roof, coffee shops and Woody’s Yogurt Place, a favorite with the after school crowd.

If you’re a mall rat then Corte Madera must be Mecca – as either side of Highway 101 has a mall. We call them “the left side and the right side malls” but they’re known as the Town Center (left side) that’s modeled after an Italian town and has a weekly farmer’s market.

Then there’s the Village at Corte Madera (right side) that hosts such high-end retail shops like Nordstrom and an Apple store.

Continuing north there is the Bon Air Center in Greenbrae, which is more of a neighborhood shopping center. And the newly re-designed shopping destination at Northgate in San Rafael where you can eat, take in a movie, or chillax at the outdoor plaza featuring an old-growth oak tree.

Want to “bulk up”? Head up to Vintage Oaks in Novato and hit Costco, where you can get just about anything in a mega-pack. They even have caskets starting at $924.99 but you’d have to ask about a volume discount.

So if considering a move or relocating to Marin County, you’ll still want to hit San Francisco for all the fine dining, museums and events, but there’s plenty of culture, outdoor activities and “retail therapy” available right here in Marin.

On Your Mark. Get Set. Become a House Flipper.

ablakeley@mcguire.com (Amy Blakeley) — Mon, 25 Jan 2010 20:35:10 -0800

Effective February 1st, 2010, real estate buyers will be able to use previously restricted FHA loans to purchase properties that sellers have owned for less than 90 days.

The policy change, which will temporarily remove restrictions on FHA-insured financing, is intended to expand mortgages to “flipped” properties: distressed properties which were purchased by the sellers to remodel and sell for a higher price.

The intention of lifting the restriction is to promote an increase in home purchases and reinvigorate communities that have been negatively impacted by mass foreclosures. This could be a great opportunity for individuals who want to try their hand at real estate investment, since it will significantly open the buyer pool now that FHA financing is applicable.

You can read the official press release by the US HUD Department and full details here.

Auctions

jrichardson@mcguire.com (Judy Richardson) — Tue, 26 Jan 2010 08:02:27 -0800

Last week I attended a home auction in Piedmont – well, the house was really in Oakland but a sliver of it was in Piedmont so you were eligible to send your children to Piedmont schools. The house needed work and smelled like dog pee, which the owner tried to cover-up by baking cookies, but with a list price of $399K. We’ll say la vie.

There was a lot of interest and I had some clients who wanted to make an offer. We arrived at the house a few minutes before the auction was to commence, and there was quite a buzz: 50 people plus milling around, looking at the house and trying to intimidate others around them. We all registered and showed our pre-approval letters that proved our clients could afford to make an offer.

When the bidding began it was progressing at quite a pace: $10K increments. But then it slowed and the auctioneer (the listing agent) slowed the bidding and starting stalling, hoping that at least two bidders would continue and increase the price. The bidding stopped at $650K, which is a great price for a 3 bed/2 bath and bonus space even with some foundation issues, a tiny kitchen and an illegal in-law. The buyer who got the house did not want to go any higher and appeared relieved when others didn’t either.

Personally I thought the house was worth at least $700K but the market had spoken. So here’s to a new way of selling your house instead of marketing it for months, hoping to get an offer, hold an auction and let the free market tell you what your house is worth.

Image provided by Thomas Roche

The Harems Have Arrived In San Mateo County

mteixeira@mcguire.com (Mary Ann Teixeira) — Tue, 26 Jan 2010 08:22:40 -0800

It all began in December, and will continue in full swing through Mid-March.

This year, just like every year since the first sighting in 1955, a couple thousand elephant seal females, the harem, make their way to the secluded beach of Año Nuevo in San Mateo County to birth their offspring.

Just a short drive down the coast, (about 90 minutes from San Mateo), Año Nuevo State Park in southern San Mateo County, is the location of the largest breeding colony in the world for the northern elephant seal on the mainland. This magnificent mammal is:

Large: Males average fourteen feet long and can weigh up to 2 1/2 tons

Noisy: You can sometimes hear their barking on the hiking trail miles before you reach the beach

Possessive: The struggle between alpha males and ‘wanna-bes’ can be violent

Año Nuevo State Park conducts daily tours December through March, and reservations are required. A moderate trail will deliver you to an outlook over the beach where you can observe the majesty in action. This is a spectacle to behold: the beach is littered with massive gray-brown bodies.

A visit to the park now will likely offer the opportunity see pups. Weighing in at 75 pound s at birth, and usually one pup per female, they are nursed for 25 to 28 days, and can grow up to 250-350 pounds in less than a month!

And then the breeding begins. Females come into season and mate about 3 weeks after giving birth. She may mate several times before returning to sea, and then abruptly wean her pup by an immediate departure to sea. Should you choose to visit later, in mid-March, most of the adult seals are gone, leaving the only pups on the beach.

For more information, visit San Mateo County’s Año Nuevo State Park website.

Marin's Economic Recovery

jzeiter@mcguire.com (John A. Zeiter, Jr.) — Thu, 28 Jan 2010 13:15:32 -0800

On Tuesday the Marin Independent-Journal reported on the economic outlook of the Bay Area and Marin. We may be down, but we’re not out yet.

As we move to recovery, the leading areas for recovery are biotech, digital arts and green technology. And while real estate was one of the drivers for the recession, the article offered some pretty interesting facts.

Did you know that there were 682 foreclosures in Marin between Oct 31st and Dec. 31st, 2009?

In that same time frame, 79.6% of the foreclosures actually SOLD, which is the highest percentage in the state.

Mill Valley recorded the lowest concentration of foreclosures in the Bay Area with 3.6 per every 1000 homes. It was 133% increase from last year. I guess last year only had 1 per 1000 homes. Compared to other cities in the state or nationwide, this number is minuscule.

What does this mean? Buying a foreclosure in Marin is very competitive, and if you really want a foreclosed home, you will have better luck outside Marin. There are ways to find one, but you need patience and be ready to act quickly. Not everyone knows what to do or how to find one.

The majority of foreclosed homes are in Novato and currently 50% of the homes in Novato under $800,000 are in contract. Novato is a very hot market and values are starting to rise. This is a key factor as to why the median price is inching upward in Marin.

Last Week for Round 1 of Kindergarten Registration in Mill Valley

sstephenson@mcguire.com (Stacey Stephenson) — Thu, 28 Jan 2010 13:26:33 -0800

There is only one week left for the first round of kindergarten registration in the Mill Valley School District. With the 2009-2010 kindergarten class being one of the largest in years and expected to grow even more for the 2010-2011 school year, you can see why it is essential to register your incoming kindergartner during this priority period. The last 2 days to register during the first round are:

February 1, 2010 – 1-7:30pm

February 4, 2010 – 1-7:30pm

Many parents incorrectly believe that they can “choose” their child’s school. The process actually works by having parents state a “preferred” school. The Mill Valley School District’s website states that the school that a child is placed at will be based on multiple criteria including the following:

Siblings of currently enrolled students residing in the district are considered residents of the sibling’s school and will be enrolled in that school if they wish and if there is space. The currently enrolled sibling must be in attendance at the school when the new enrollee enters the school.

Facility capacity and class size

Proximity of residence to the school of choice

Identified special education needs

Balance of class size across the district

Families who register their children during the first round will be notified of their school assignment by May 1, 2010. For those who haven’t yet moved to Mill Valley and/or do not have all the required documentation to register during this priority period, fear not. Students can still be registered.

The second round registration period runs between February 5, 2010 and June 17, 2010 and those that register during this period will be notified of school assignment by July 1, 2010. Families that register their children after June 17, 2010, known as the third round, will be notified of school assignment prior to the opening of school.

If your child isn’t placed in your “preferred” school, you can always be placed on a waiting list. However, the best way to increase your chances of getting your child into your preferred school is to register as soon as you are able to. Please see the District Website for all the requirements and more information on the kindergarten registration.

Long Term Disability: Breeze or Drag?

cduncan@mcguire.com (Christine Duncan) — Thu, 28 Jan 2010 13:33:30 -0800

Being a conscientious baby-boomer, I recently sat down with my insurance agent to go over my options for an Long Term Disability (LTD) insurance policy. I was surprised to discover the amount of paperwork necessary to fill out the application and questionnaires, liking it to completing a purchase contract or listing agreement.

Obviously, purchasing a home is a complex process that requires a team of experts to handle critical tasks in order to make the transaction successful. Purchasing Long Term Disability insurance requires a review of your health care history (as opposed to your financial history), an interview with the insurance company home office and insurance underwriting (instead of loan underwriting).

My LTD insurance agent patiently went through the 45+ pages of questionnaires and applications, explaining and advising me how to best complete the forms accurately and completely. After we were done (2 hours later), I jokingly commented that I feel like I just bought a house.

Long term disability is another way to protect your assets and should be considered in your financial planning.

"Neighbor to Neighbor" Blog Series: Do You Have Good Boundaries?

agordon@mcguire.com (Adrian Gordon) — Thu, 28 Jan 2010 21:51:13 -0800

Does it really make any difference to have well-defined boundaries around your home? Thankfully, usually not.

People normally get along without knowing exactly where their property ends and their neighbor’s property begins. Daily life does not depend upon such knowledge. If it did, surveyors would be as busy as Hollywood plastic surgeons.

Truth is, the location of the fence or hedge row or line of trees is generally sufficient to satisfy the need to know where you stop mowing and weeding and your neighbor’s job begins. The situation, however, can change. You will need to know the size of your lot if you plan to build or expand a home. The county or city planning department will require you to stay within a maximum building square footage or ask for a variance. This maximum is often expressed in terms of the percentage of building square footage to land square footage, the so-called floor area ratio or FAR maximum. If a variance is problematic, then maybe a cooperative neighbor will sell you the necessary 3 foot wide strip of land that he thought you already owned anyway. I’ve handled just such a situation.

If a dead tree presents a clear and present danger of falling, neighbors should know on whose land the trunk of the tree sits. If a 5 foot high retaining wall needs repair ($$$), knowledge of its ownership would be important. Maybe the county or city is responsible. Sometimes one can determine who is responsible for maintaining a wall that supports the ground near your home or that keeps it from burying the street by searching the property records at the county recorders office. A title company can help if you can’t find your title insurance policy and don’t want to travel to the recorder’s office. You may find a document such as an easement that identifies the responsibility for maintenance to be the owner of your property, currently you, or the owner of an adjacent property or maybe both owners in some proportion.

Image provided by momboleum

If the wall or tree is in the public right of way, then the public will have to pick up the tab once you find the right government administrator to talk to. It’s also important to remember that PG&E, as a public utility, is often required to trim or remove a tree at its cost if the tree threatens power lines or transformers regardless on whose land the tree resides. Click here for more information and keep this number handy just in case: 1-800-PGE-5000.

Boundaries can be very important if you plan to build something near them. City and county planning codes require minimum setbacks for most permanent structures, including free-standing children’s playhouses. A neighbor complaint to the city or county can send an inspector with a tape measure your way. Building a beautiful flagstone parking pad over the property line can cause a cease and desist order to land in your mailbox. In both cases, sunk costs for removal or modification are often more expensive than a preemptive single boundary survey, easement agreement or government variance. Of course, an early conversation with affected neighbors usually saves substantially in terms of money, time and frayed nerves.

One more thought. If you believe you may have built anything or planted a garden in the public right of way or on your neighbor’s property and you don’t want to pay for a survey to determine this, you would be wise to insert something in your disclosures when you sell your property that lets the buyer know of this possibility. Proper disclosure should avoid a later claim that you deceived the buyer into thinking that your property included more than it actually did.

Read the rest of Adrian’s “Neighbor to Neighbor” blog series here.

Cost of Ownership to Increase

dvarni@mcguire.com (David Varni) — Thu, 28 Jan 2010 21:26:10 -0800

The Department of Housing and Urban Development (HUD) is poised to implement several changes for loans guaranteed by the Federal Housing Authority (FHA).

These changes will come just weeks before the April 30 deadline for the Home Buyer Tax Credit, and just days after the March 31 expiration of the Federal Reserve Board’s mortgage-backed securities purchase program (which has kept home loan rates artificially low for over a year).

Some have made the argument that purchasing the same home at the same price after these changes take effect will cost the buyer more than if they purchased beforehand. Here are a few reasons why:

Mortgage Insurance Premium (MIP) will be increased to build up capital reserves and help bring back private lending. This shift will allow for capital reserves to increase with less impact to the consumer because the annual MIP is paid over the life of the loan instead of at the time of closing.

The HUD updated the combination of FICO scores and down payments for new borrowers. New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.

The HUD is reducing allowable seller concessions from 6% to 3% The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.

To avoid these increases in costs, FHA mortgage applications must be submitted by the last week of March.

"Pot Superstore" Opens in Oakland

godom@mcguire.com (Gina Odom) — Thu, 28 Jan 2010 21:57:43 -0800

Last year by a landslide vote, Oakland became the first city to tax proceeds on medical marijuana. The measure that was passed imposes a 1.8 percent gross receipts tax on the four licensed medical cannabis dispensaries in Oakland. These facilities would have to pay about $18 in taxes for every $1,000 in marijuana sales which will help with the city’s deficit problem. One dispensary has said that since the tax increased took affect, he pays over $350,000 a year in business tax.

Oakland is opening the largest one-stop shop marijuana cultivation center in a warehouse near the Oakland airport. You will be able to take classes on how to cultivate your own cannabis and be able to buy equipment for growing. The facility, igrow, will only sell supplies for cannabis cultivation and not seedlings. Currently, there are only four dispensaries that have been approved by the city to sell seedlings.

Read more about igrow here

Short Sale on Marina Boulevard?

llanzone@mcguire.com (Laura Lanzone) — Thu, 28 Jan 2010 22:23:15 -0800

With the recent advent of a $2M short sale on Marina Boulevard in San Francisco I am getting even more questions from clients about short sales than usual. All of my buyers have asked me about them at one point or another, and one client actually has an offer in on one.

And why wouldn’t they be interested? Marina Boulevard for $2M? The sellers paid $3,690,000 in ‘07 for the property, so even if it goes way over it’s a bargain, right?

Well, maybe not such a bargain.

Image provided by augen | zeuge

Take my previously mentioned buyer: her offer was the one chosen, out of three, to send to the bank in an unapproved short sale. It took a month just to get an acknowledgment of receipt of documents. Then it took a month to be assigned to a negotiator. Another month passed, in which the file was mysteriously handed off to a second negotiator. As of yesterday, the bank was “promising” to get us an answer in 20 BUSINESS days. So that’s another month.

When we finally do get an answer, will it be “yes”? Who knows. I honestly believe that unless your client is an investor, there is no way for them to remain emotionally uninvolved in this process. No matter how much you warn them, there is nothing to prepare them for the endless excuses and delays. A short sale is certainly not for the faint of heart.

So, I guess the real question is this: How much does your client REALLY love the property? How much are they REALLY going to save when you take into account time and heartache?

And, most importantly, is it worth it?

Reduce Your Taxes While Owning in San Francisco?

lfleming@mcguire.com (Lea Ann Fleming) — Sun, 31 Jan 2010 20:33:05 -0800

We talk about the advantage for buyers to purchase in a real estate market that, even in San Francisco, has seen prices soften and decrease. However, all this may be a silver lining for those who already bought property in the last few years.

All of us who own in San Francisco get a yearly tax bill where the assessment goes up automatically by 2% a year based on the price originally paid (or the assessed value in 1976 when Prop. 13 passed).

Buyers who purchased a home in the last two or three years are receiving tax bills that have increased 2% each year, even though their more recent neighbors just paid less than they did. The silver lining is that those neighbors’ purchases are the “comparables” that you can use to appeal your property tax assessment.

Last year, for the 2009-2010 tax year, there were 4,400 requests filed with the City Assessor’s office for an informal review of property taxes. As of Jan. 4, 2010, San Francisco residential property owners can file for an informal review for the 2010-2011 tax year. To file for a review of your property tax, just complete an application or submit a request here. There’s still time; the deadline is March 31, 2010.

Last year I helped several recent buyers with comparables for their appeal. Several were denied but several received a 10 percent tax cut. Give me a call if I can answer your questions.

Timing is Everything

kthompson@mcguire.com (Kristen Thompson) — Sun, 31 Jan 2010 11:09:43 -0800

Real estate is much like the old proverb “Timing is everything.”

When it comes to working with investors looking for that “no brainer” deal, you’ve got to be fast. Some REO transactions are so competitive in the East Bay marketplace, that all cash buyers are fighting tooth and nail to be the one with the golden ticket, or golden contract, as it were.

As a buyers’ agent, it is challenging to be first (and best) deal in. While REOs are much like a fire sale, short sales are slow as molasses. Nonetheless, timing is everything. One buyer could have a higher offering price, but they are not able to secure financing, or they just can’t wait it out, and presto, here comes your client with a lower offer but the right timing.

In Alameda county, notice of defaults are down about 30 percent from the same time last year, and foreclosures are up only slightly. Some predictions are that the market will remain the same for 2010 and start to climb in 2011, and some say prices will fall more this year. Nobody knows for sure, but the current environment is ripe for first time buyers and investors alike.

With the first time home buyer’s tax credit expiring in 4-5 months, mortgage rates at a record low, FHA loans still available with 3.5 percent down payment (which may change very soon), and REO inventory abounding, the time is NOW. As soon as the summer months roll around and activity picks up like it usually does, demand will drive competition, and there will most likely be less opportunity. I think in the next few months, some of the best deals will be had.

The Bottom Was When?

kgolden@mcguire.com (Kathryn Golden) — Sun, 31 Jan 2010 19:44:56 -0800

Two thousand nine proved to be one of the worst years in real estate history. Many sellers and buyers sat on the sidelines watching this unfold:

When was the bottom?
What is happening with the economy?
Is my job safe?
Should I wait for market to come back before I sell?
Should I wait to buy until the prices come down further?

Recent statistics released from McGuire, as shown in this graph, reflect that we bottomed out in January 2009.

Hindsight always seems so obvious! Those of us that were in the trenches could have told you how bad the first three months were. We saw the market begin pick up starting in late spring. And we saw that activity remained strong, even through December.

What I can tell you now is there is a lot of buyer activity with not as much inventory as we would like. It totally makes sense to buy NOW – record low prices and record low mortgage rates.

But if only that trusty crystal ball could have told us when we hit bottom!

Adventures in Cow Hollow

mmoresi@mcguire.com (Marla Moresi-Valdes) — Sun, 31 Jan 2010 20:19:32 -0800

It’s a new year—time to stick to those resolutions and explore new and fun opportunities! If you live in San Francisco’s Cow Hollow, you will have no problem eating healthy and staying in shape with all of the amazing options in this area. But this year, if you are looking for some creativity and adventure, Cow Hollow is the place to be! Below is a list of some fun places for both children and adults to get your creative year off right.

The Exploratorium, located at 3601 Lyon Street, is a great place for all ages. The museum is “hands on” and has tons of experimental activities and events. Whether you are interested in science, art, nature or technology, the Exploratorium has an opportunity for you to get creative and explore! The museum is open Tuesday-Sunday from 10 am-5pm and has free parking. General admission is about $15.00 for adults/$10.00 for children.

2006 solar eclipse viewing at the Exploratorium

If you’re interested in live entertainment, BATS Improv Theater is a great place for you to view performances or, for the more outgoing adventurer, participate! Located in the Fort Mason Center, BATS holds classes and workshops for all levels and puts on performances weekly.

For those resolving to improve your green thumb this year, The Fort Mason Community Garden is a wonderful way to start. The garden is located inside the gates of the Fort Mason center. Each member of the community garden is allowed their own 20×5 plot of land to grow delicious, organic fruits and veggies. Visit their website for applications and membership information.

Image of Fort Mason Community Garden provided by Katherine H

Once you’ve mastered the art of gardening you can put your veggies into action through a cooking class at Mariposa Kitchen located at 216 Mallorca Way. Classes are offered weekly, and each class has the option of adding a wine pairing to the session. Soon enough you will be able to have friends and family over for a wonderful dinner party, showing off your cooking and gardening skills and telling stories of your adventures in Cow Hollow!

To Appreciate or Not Appreciate

rmerryman@mcguire.com (Robert Merryman) — Sun, 31 Jan 2010 20:56:05 -0800

How much will it appreciate? I’ve heard this question quite a bit lately. The answer depends on where and what you’re buying.

San Francisco’s South of Market (SOMA) and points south are in a “correction” period because of the over speculation and risky lending issues in the area. Thousands of available units create a distraction for anyone buying in that market. Too many choices and short sales have driven down values. On the positive side, there are bargains to be had in the area.

The Marina, Cow Hollow, Pacific Heights and Noe Valley have also seen a drop in value, but inventory is scarce and demand remains high. So when a property comes to market in those neighborhoods, if the price is right, the sellers have an audience. We’re seeing multiple offers over list price. Simple economics, no?

Yes and no. It’s more about desirability. There are plenty of properties that don’t sell quickly because of price. On the north side of San Francisco there is a limited number of short sales and foreclosures which help properties maintain their values. Granted, not many properties are worth what they might have been four years ago, but a patient investor will realize an appreciation in value over time.

Questions About the Home Buyer Tax Credit Answered

khartquist@mcguire.com (Karen Hartquist) — Sun, 31 Jan 2010 21:08:03 -0800

Most of my clients know that the “First-Time Home Buyer Tax Credit” has been extended until April 30, 2010 but they have a lot of questions about the program and what it means for them.

Do I qualify for the credit?
First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010 are eligible. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Is the property I am interested in eligible?
The credit may be used for primary residences, including: single-family homes, condos, townhomes, and co-ops, purchased for $800,000 or less.

How much is the credit?
You can get up to $8,000, depending on the price of the home and the buyer’s income.

Is there an income restriction?
Yes, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000, may receive the maximum tax credit.

What if I make more than the income restrictions?
Some buyers over the income restrictions may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income – over $145,000 for singles and over $245,000 for couples – are not eligible for the credit.

What if I am in contract on a property but not closing until after April 30, 2010?
As long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Buying A Condo in San Francisco? Note These 5 Things.

gbryan@mcguire.com (Gregory Bryan) — Tue, 02 Feb 2010 14:50:13 -0800

There has been a fair amount of real estate activity recently in the South of Market (SOMA) area of San Francisco. So I just thought I would write something that buyers should pay close attention to when purchasing a condominium.

1. The Condo Plan or Tract Map
This will show you exactly what you own and what is a common area. This should clarify what you are liable for and what you have to pay the Home Owner’s Association (HOA) to maintain.

2. Covenants, Conditions and Restrictions (CC&Rs)
Make sure you have read through them and are comfortable accepting them before you close escrow. Once you have closed escrow you are assumed to have accepted all the CC&R terms.

3. Articles of Incorporation of the HOA
These should give you an idea of what the HOA is authorized to do.

4. By-Laws and Operating Rules
You want to understand how the HOA members are elected so you know your rights up front when dealing the HOA.

5. Reserves
Pay special attention to the reserves of the HOA. Given the current economic climate, some HOAs aren’t receiving all their dues and this is causing a short fall in revenues. Some that are not well-funded are increasing their HOA dues or assessments. Also, some banks are not lending to potential buyers in buildings where there are significant HOA delinquencies.

I hope this helps and if you ever need assistance or have a condo related question feel free to contact me.

Getting "Real" Smart in 3 Steps

rholden@mcguire.com (Roberta Cohen Holden) — Wed, 03 Feb 2010 10:33:42 -0800

When searching for a new home, one of the most important things you can do is become educated about your local real estate market. This will allow you to make a much more informed decision when the right home becomes available.

Here are 3 critical steps I suggest when looking to buy a home:

1. Learn what you can afford.
Work with a reliable lender to get pre-approved for financing.

2. Get the info.
Sign up for a service that will provide accurate information about available properties, keep you up-to-date on their current activity, and show you what they actually sold for. A good example is CleanOffer.

3. Review the documentation.
Do so before you make an offer on a home, so that when you’re ready to make an offer, the paperwork will be familiar to you.

Having a team of professionals to help you navigate the different aspects of purchasing a home can make the experience much more productive and pleasant. We can’t control which properties are on the market at any given time, but a buyer certainly can do the research now to be prepared to make a winning offer when the right property becomes available.

Charter Schools Segregated? Not in Marin

sfaccinto@mcguire.com (Sharon M. Faccinto) — Mon, 08 Feb 2010 16:12:59 -0800

Friday’s San Francisco Chronicle featured a story about a report that charter schools tend towards de facto segregation. It’s too bad they didn’t take a look at Sausalito’s charter school, the Willow Creek Academy. Not only is this free, public, K-8 school very diverse, it may be Marin County’s most ethnically diverse school.

Willow Creek gives priority to students from the Sausalito/Marin City School District, but they accept on an availability basis students from all over the county. The common denominator is that they have at least one parent who is willing to devote a certain amount of time to volunteering for the school and making sure the academic or homework requirements are met, such as reading a certain number of hours a week, and so forth.

As a Realtor who sells homes in Southern Marin, I’m enthusiastic about this school because it gives Sausalito families another great educational option in the public school context. Right now, Sausalito has some amazingly affordable options for families of all sizes; contact me and I’ll email you a list of them.

	Total	Distressed	Non-Distressed
Single Family Residences:
Active (for sale)	702	77	625
Pending/Contingent	337	146	191

Condominiums:
Active (for sale)	172	46	126
Pending/Contingent	138	90	48

	2005	2006	2007	2008	2009
Average	$2,234,000	$2,266,000	$2,561,000	$2,509,000	$2,095,000
Median	$2,022,000	$2,017,000	$2,000,000	$1,992,000	$1,673,000
# Units	128	108	120	80	42
Highest	$10,000,000	$7,600,000	$20,000,000	$12,518,000	$9,000,000