Archive for the ‘Homeowner Tips’ Category
Posted by insidesfre on July 22, 2010
I’ve been using PocketListings.net since it recently launched. A “pocket listing” is one that isn’t posted in the Multiple Listing Service (MLS) and is thus considered to be off market. PocketListings.net is a database of these listings and buyer needs. Real estate agents subscribe to the site, and are able to inform their clients about new properties, as well as potentially sell their listings in a less traditional way.
The more agents who join PocketListings.net, the more opportunities will surface for their clients. I’ve been asked why sellers wouldn’t want to expose their properties to the most amount of people possible. For one thing, we’re in a different market now. Multiple offers do exist, but they aren’t happening as regularly, nor are list prices routinely selling for way over asking. PocketListings.net wouldn’t have been as sensible had it launched three years ago. But it absolutely makes sense now. Sellers can settle on realistic and reasonable prices with their Realtors’ guidance, and not necessarily have to deal with the inconvenience of open houses and nosy neighbors (a majority of whom aren’t qualified buyers to begin with).
If a property sits on the market for too long in the MLS, the “days on market” is a like a red flag for a lowball offer. If a seller can hook up with a buyer through the efforts of their respective, knowledgeable agents, things could go a lot more smoothly for everyone.
And buyers love, love, love knowing about off-market properties because they can have time to think straight, finalize preapprovals, review disclosures and not feel like they have a gun pointing at their head in the form of an offer deadline. The process can be extremely rewarding and significantly less stressful.
PocketListings.net will cost you, as a licensed agent, $4.95/mo. The database is growing as I type. Get on their and post your buyer needs and listings, and let’s do business!
Posted in Home Buyer Tips, Homeowner Tips | Tagged: pocket listings | Leave a Comment »
Posted by insidesfre on May 25, 2010
I’ll cut to the chase: Sellers are catching price reduction fever these days in San Francisco. The chart below shows the price decrease activity for single-family homes and condos across all city zip codes over the past month.
So clearly we have some price corrections to deal with in all our neighborhoods. Of the 627 houses on the market, a whopping 498 of them have had some sort of status change in the MLS over the past month—mostly price reductions. And in some cases, I’m seeing substantial reductions. Over in the Richmond, for example, one 4BR home on 17th Avenue started out at $1,825,000 and is now down to a $1,595,000 list price. And its 3BR neighbor on 6th Avenue hit the market at $1,295,000 and is now listed at $900,000.
The condo market is more vulnerable; of the 779 units listed in the MLS, 653 of them have had status changes over the past month. There are also some dramatic reductions, and the condos have been on the market generally longer than the houses.
Price reductions are an important factor for buyers and sellers, and they can’t be ignored when it comes time to list your house or make an offer on one.
Posted in Home Buyer Tips, Homeowner Tips, Market Snapshots | Tagged: price reduction | Leave a Comment »
Posted by insidesfre on May 4, 2010
When you sell a home in San Francisco—whether it’s a house, condo, TIC or multi-unit property—you’re required to ensure that the property meets energy and water conservation requirements. This usually entails an energy/water inspector evaluating the property and then addressing the items that need to be done in order to bring the place up to code. Energy requirements include things like weatherstripping, water heaters being strapped and braced properly, and insulation being installed in the proper places. And the water requirements encompass low-flow toilets/faucets and repairing leaks (among other things).
But now, some properties may be exempt from energy/water work. This just in from the San Francisco Association of Realtors:
“Residential live work occupancies (defined as an R-2/B-2 occupancy classification under the San Francisco Building Code) are exempt from Residential Energy and Water Conservation Requirements set forth in Chapters 12 and 12A of the San Francisco Housing Code, according to the Department of Building Inspection. Patrick Mckenzie, senior housing inspector, explains:
‘Section 1204 (i) and 12A04 (c), for purposes of the San Francisco Housing Code (SFHC), does not define a Live Work occupancy as a Residential Building that must comply with Energy and Water Conservation requirements. ‘It is the responsibility of the seller of a residential building to determine if the building is a live work occupancy that is exempt from energy and water conservation requirements. The authorized agent of the seller may help in this determination.
Since live work occupancies are not subject to the provisions of the San Francisco Housing Code, there is no requirement that an energy and/or water conservation inspection report be filed with the Department of Building Inspection, Housing Inspection Services.
To determine if a building is a live work occupancy, please review the existing authorized occupancy or use as stated on the 3R Report (Report of Residential Building Record). Section 351 (a) of the SFHC requires that prior to the consummation of sale or exchange of a residential building this 3R Report be delivered by the owner or their authorized agent to the buyer.’”
So there you have it. Sellers, if you own a live/work space, make sure you verify the property zoning on the building permit history. And buyers, do the same. Everyone should be on the same page about water/energy conservation requirements.
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Posted by insidesfre on April 28, 2010
There’s an addendum that frequently makes it into the purchase agreement in many transactions—the “As Is” addendum. I’m often asked by buyers what this actually represents.
The truth is, an “As Is” addendum means virtually nothing. It’s basically a warning from sellers that they aren’t going to be receptive to repairs or credits during escrow. Or, as an attorney during my company’s recent risk management seminar put it: An As Is addendum is when “sellers are putting the flag up and keeping their fingers crossed” that the buyer won’t try to negotiate anything.
Most buyers include an inspection contingency in their contracts, meaning they have a certain period of time to have professional inspectors evaluate the property. Even though a buyer may have been presented with and signed an As Is addendum, that doesn’t mean the buyer waives his or her right to either back out of the sale, or request repairs/credits. Whether the latter happens will be more a product of the inspection results, and how reasonable the sellers really are.
Posted in Home Buyer Tips, Homeowner Tips | Tagged: as is sale | 5 Comments »
Posted by insidesfre on April 22, 2010
Private property owners in San Francisco can now finance energy/water efficiency and renewable energy improvements through homes and businesses through the GreenFinanceSF program.
If the property owner is approved for financing, the city will issue payment for the upfront cost of the project, plus interest through a voluntary special tax for the life of the financed improvements (up to 20 years). If the property is sold, both the property improvements and the remaining debt stay with the property and are passed on to the new owner. So make sure you disclose any unpaid “green” debts when you eventually sell your property.
Check out the program, it’s great for things like replacing windows and upgrading heating systems.
Posted in Homeowner Tips | Tagged: energy efficiency, green | Leave a Comment »
Posted by insidesfre on April 21, 2010
I spoke with the San Francisco Chronicle’s Robert Selna yesterday about the foreclosure activity I’ve been seeing in the San Francisco market. The upshot of the story: Fewer homeowners in the Bay Area and California are headed down the path toward official foreclosure in the first three months of 2010 compared with the prior quarter and with a year ago.
As I maintained in the article, I’m not seeing a wave of foreclosures on tap in the city that will dramatically affect home prices. Of course, there will be foreclosure and short sales popping up, but compared with the overall number of homes that sell in a given year, the foreclosure numbers are fairly small.
Read the full Chronicle article here.
Posted in Home Buyer Tips, Homeowner Tips, Market Snapshots | Tagged: foreclosures, short sales | Leave a Comment »
Posted by insidesfre on March 18, 2010
I’m often asked about earthquake insurance—do most homeowners in San Francisco have it? Do the majority of condo buildings have an earthquake policy?
Only about 12-15% of California homeowners have earthquake insurance, and I believe that ratio drops further in The Bay Area and San Francisco. The reason behind this is that earthquake insurance is very expensive. In a condo building, it doubles your homeowners association dues (HOAs). Additionally, most policies come with a 10-15% deductible. This means the damage to the building would have to be pretty severe in order for you to use your coverage.
What do you look for when evaluating how well a property will hold up against an earthquake? Take note of its overall construction material (i.e., wood-framed buildings tend to hold up better against ground shaking). Review the hazard report rating (i.e., is the building located in a Zone A–the most susceptible to an earthquake, or a Zone D/E, which would have a better chance in an earthquake). And consult a general contractor about how seismically sound the property may be (i.e., foundation bolted, etc). If a property was built before 1906 (year of the big earthquake) and it’s still standing, that’s a good indication that it’s been constructed well.
I have sold many condos in San Francisco over the past seven years, and maybe one or two condo buildings I’ve sold actually had earthquake insurance. Ironically, the buildings with earthquake insurance tend to be harder sells, because the HOA dues are prohibitively expensive for buyers. If you’re buying within a building that doesn’t have earthquake insurance, the HOA would have to decide whether to obtain that coverage. It’s not available on individual units.
If you’re interested in more information, contact your favorite insurance rep and inquire about the specifics for earthquake coverage.
Posted in Home Buyer Tips, Homeowner Tips | Tagged: earthquake insurance | Leave a Comment »
Posted by insidesfre on February 20, 2010
Our friends at Plan C are asking for support in the San Francisco garage arena. This is an important issue for homeowners and property values. I’m sending along Plan C’s recent alert that I received this weekend:
“Don’t let garages become prohibited in S.F.!
Supervisor David Chiu has proposed to essentially prohibit garages in his district; North Beach, Chinatown and Telegraph Hill. A property owner would have to obtain a conditional use permit to install a garage.
The Board of Supervisors would now be the body to hear appeals, not the Planning Commission and the Board of Appeals. The proposal would completely prohibit garages in buildings in which any “no fault” eviction – Owner Move In (OMI), Capital Improvement, Ellis Act evictions etc – was performed in the prior 10 years.
If passed, this proposal could be the first step towards imposing similar restrictions in other parts of the City.
This is a power grab by the Board of Supervisors and an attempt to incorporate the rent ordinance into the planning code and punish property owners. Both of these are bad ideas. Supervisor Dufty is the swing vote on this proposal. He voted for it with reservations on the first vote. We need you to write to him to let him know your opposition to this bad legislation. We need Supervisor Dufty to vote no on this, so that a Mayor’s veto can be sustained.
The next vote is scheduled for Tuesday February 23.
Please e-mail the Mayor, the Supervisors (including Supervisor Dufty) by clicking here – let them know that you oppose this legislation .
Also, please call the Mayor and Supervisor Dufty. Tell them the same thing (the phone call is easy, and youll be speaking either to a volunteer staffer or an aide):
Mayor Gavin Newsom 554-6141
District 1- Eric Mar- 554-7410
District 2- Michela Alioto-Pier- 554-7752
District 3- David Chiu- 554-7450
District 4- Carmen Chu- 554-7460
District 5- Ross Mirkarimi- 554-7630
District 6- Chris Daly- 554-7970
District 7- Sean Elsbernd- 554-6516
District 8- Bevan Dufty- 554-6968
District 9- David Campos- 554-5144
District 10- Sophie Maxwell- 554-7670
District 11- John Avalos- 554-6975″
Posted in Homeowner Tips | Tagged: garage | 4 Comments »
Posted by insidesfre on February 18, 2010
It’s becoming more and more obvious as I tour, show and evaluate properties that there are many homeowners coming up on three-, five- or seven-year adjustable rate mortgage revisions. And in many cases, they won’t be able to refinance or keep their property at the higher interest rate. Those are definitely ingredients for a rise in short sales over the next year.
But fortunately, some of the major lenders are warming up to short sales, according to a story yesterday in the Financial Times. Bank of America, in particular, has added staff to handle short sales. And Wells Fargo, JPMorgan Chase, and other large banks seem to be following suit.
So if you’re evaluating a property that will be a known short sale, have your agent find out which lenders are involved. If it’s one of the big boys, it might mean a shorter waiting time for short sale approval. No buyers want to sit around for three months waiting for their offer to be approved by the bank; if the wait time is no longer in question, short sales may be easier to navigate. And if you’re a potential seller with one of these large banks holding your loan, now may be the time to work something out.
Posted in Home Buyer Tips, Homeowner Tips | Tagged: bank of america, short sale | Leave a Comment »
Posted by insidesfre on January 26, 2010
The Wall Street Journal ran an excellent article last week on “What Home Sellers Don’t Tell Buyers. The upshot is that sellers are, in some cases, omitting certain key disclosures because they don’t want to jeopardize their property sales in a challenging housing market.
The article coincides with my license renewal studies, which cover similar ground. But you know, I don’t approach listing disclosures assuming that sellers are hiding pertinent details about their homes. The sellers with whom I’ve worked have generally tended to go out of their way to disclose even the most minor deficiencies. Not to pat myself on the back, but I typically sit down with sellers while they complete the extensive disclosure package, going over each form line by line and clarifying the questions. It’s this approach that I believe leads to more thorough disclosures for buyers. It also gives me the opportunity to learn all the property details before the marketing begins, which results in clear, accurate fact presentation to agents and prospective buyers.
As the Wall Street Journal article points out, California requires an extremely long list of seller disclosures; we are not a “buyer beware” state. (However, this isn’t the case for foreclosure properties, which are, in my opinion, “buyer beware” scenarios.)
Sellers, hook up with a reputable broker, provide the required San Francisco building/hazard reports, and take the time to thoughtfully complete your disclosure package—preferably with your agent sitting next to you. The couple of hours you take to fill out paperwork will certainly not exceed the time it will take to sit in mediation, arbitration or in attorneys’ offices down the line.
Posted in Homeowner Tips | Tagged: disclosures | Leave a Comment »
