“Signs, signs, everywhere there’s signs…”

So, what are the signs we should look for to help us forecast San Francisco real estate?

I’m gonna “KISS” 2008 good-bye with 4 “Keep It Simple, Stupid” topics to keep an eye on.

The 4 Pillars of 2009 San Francisco Real Estate Forecasting

1. Foreclosures, Short Sales, Bank-Owned Properties (REOs): Loan modification programs
2. Ease of Credit: Jumbo Loan Options and Availability
3. Interest Rates
4. General climate: What’s the “feeling” on the street, at your local cafe, at the table next to you at Beretta?

Read the rest of this entry »

( The following is a reprint of the annual holiday letter I wrote for my clients, friends and real estate associates. A few of you suggested that I publish it on the blog so at the risk of going a little personal, here goes! I hope you find it helpful as we move forward into a healthy, happy and prosperous 2009…. )

Dear SFHotlist reader and San Francisco real estate devotee,

Every year, I write a holiday letter. And, as is my way, it is usually geared more towards the New Year and its hope of renewal, growth and change than any particular religious holiday.

This year, the letter is difficult to write, and I have procrastinated for weeks. After such a tumultuous & challenging 2008, what can I say that will be sincere, forthright, and dare I say even helpful?

Maybe I should begin with an honest assessment? My job is tougher. I work harder yet earn less money. The transactions are more complex. The sellers, buyers, agents, lenders, and everyone else are stressed.

In 2 escrows, the lender closed shop days before the closing. The competition is fierce. Desperate agents on the edge of leaving real estate are willing to do anything for a listing and are often scared to tell their sellers the truth, thus clogging up the market with overpriced properties.

(This is bad for all of us and will slow our market’s recovery. Check my blog for more info.)

I have lost money in my retirement and savings account. The value of my house is less than what I paid for it two ½ years ago. (Of course, as a SF Realtor I must point out that my stocks lost WAY more value than my house.)

Sound familiar? I know I am not alone. Most of us have faced similar challenges this year. Who has been immune to the economic meltdown? It has been broad, swift and in many ways, unimaginable in its breadth & depth even to the smartest of experts.

Yet, I remain both optimistic and grateful.  It will get better. The economy will recover. The real estate market will turnaround and prices will head back up.

(No, it probably won’t be the rabid growth of the 2000s but in San Francisco, we will see consistent appreciation, and real estate will prove, yet again, to be a wise investment.)

Buyers and sellers will get used to our more balanced playing field and work together towards mutually beneficial results.

In the face of all of these challenges, I had a very good year in real estate. (Toot, toot! Yours truly is a Zephyr “Top Producer” once more. By hook or by crook, I tell ya!)

I have helped folks successfully achieve their goals and navigated them through today’s choppy waters.

To name a few, I’ve helped first time buyers who see their golden opportunity, past clients ready to benefit from a property “trade-up”,  investors who know that it is the right time to buy & hold, sellers who have owned their homes for 5+ years and are ready to move on with a very healthy profit and families who need to sell a loved one’s home.

Some of you may be wondering what to do. Is it time to “trade-up”? Is it time to invest in real estate? It is time to “down-size”? Is it time to talk to your lender about loan modification because your situation has changed?

My pledge is to consult with you to come up with the best plan of action for you.

I will negotiate fiercely on your behalf, and oversee the transactional details so your money, time and energy are used efficiently to achieve your goals. Real estate is my profession, and I am in it for the long-haul.

Most of my clients find me through your word of mouth, and I am extremely grateful.

Please know that I continue to improve, educate, and grow. I bring my “A-game” and that game gets better every year so I can always be the best possible real estate consultant for you and for all those you introduce to me.

As 2008 draws to a close, let us dream of a fantastic 2009 full of health, recovery, happiness and prosperity for all. Happy holidays and yes, happy new year!

Your real estate consultant for life,
Danielle

P.S. I’d love to hear from you! Do you have questions about your situation or just want to know what’s really going on? I am here to help in any and every way I can. Talk to you soon!

Ripped from the headlines or rather the Trulia Question and Answer section, the question is:

Can a home buyer negotiate with the seller during the escrow process?

YES!

All aspects of a real estate transaction are a negotiation. However, what type of negotiation you’ll enter into and how successful you’ll be totally depends on both the details of your particular purchase and the attitude/competency you, your agent, the seller and the listing agent have towards the negotiating process.

Check out this flow chart describing the process for a typical real estate purchase, whether a Bernal Heights single family home or a Inner Mission condo.

In San Francisco, where many good real estate agents abound, the home buyer is likely to receive a “disclosure package” before making the offer to purchase. The “disclosure package” will contain positive and negative information about the property’s condition, location, etc. Many will have a recent “Pest Inspection” and/or “General Home Inspection” from a reliable, local inspection company.

Ask your agent for their opinion of said company… (Note: Yet another reason it is so prudent to work with a local Realtor who works full-time in real estate and does enough business to be up-to-date with inspectors’ reputations, not to mention has fine-tuned negotiating prowess!)

If you receive an extensive and accurate “disclosure package” you may not discover any new, material items during your own inspection period. You may find that you are happy with the property and want to move forward with your purchase. (Note: Even if you receive an inspection report, it is almost always a good idea to have an inspection contingency in your contract and to hire your own inspector for a second opinion.)

But, what if you do discover something during the inspection. What happens then?

If you have an inspection contingency in your purchase contract, you can:

1. Cancel the contract, receive your initial deposit back and begin house-hunting again.
2. Accept the condition of the property, remove your contingency and move forward with the purchase.
3. Negotiate with the seller (through your agent) for repairs and/or credits.

If repairs are mutually agreed upon, typically, they are completed prior to the close of escrow. For your protection, stipulate that you want a “walk through” after completion but before the close. If the repairs require permits (and that’s important to you), make sure that’s in writing too. Basically, you want to be as clear as possible on what you are agreeing to….

If credits are mutually agreed to, typically, you will receive the funds towards your closing costs at the close of escrow. Sometimes, the credits are doled out directly to a local contractor. For example, I recently negotiated for my buyer clients to receive a free roof from the sellers. My buyers chose the roofer and we had the sellers pay him directly at the close. There are rules around credits so check with your mortgage broker to make sure all is kosher with the lender.

If you ask the seller for a credit or a repair, what are her or his choices?

The seller can through her/his agent:

1. Cancel the contract and look for a new buyer.
2. Accept your request (in writing) and move forward with the sale.
3. Counter you with terms that are acceptable to them (and hope you will agree).

In my opinion, a home buyer should enter into escrow with “good faith.” You like the property. Your intention is to buy it. You do your best to make an offer that you find acceptable based on the information available to you (disclosure package, comparable sales, etc). Unless something new and material emerges, you are happy to move forward and make the property your new home. Nothing is perfect. Not your house, not your job, not your marriage and not even a brand-new construction condo!

That said, negotiation plays a crucial role in the real estate process and there are many occasions in which you will want to negotiate for a credit or repair. In today’s market, the home buyer has more power. These days, I am able to get my clients credits or repairs.

The playing field is more level and savvy buyers should take full advantage and get the best deal they can.

The key, however, is not to negotiate for negotiation’s sake. Some folks just want to be confrontational and have a fight. Personally, I think this causes ulcers and ultimately, doesn’t get us what we want out of life. Different strokes for different folks, of course. So, if you want a hot-head, let me know! I’ll send you a list. If you want a tough negotiator who is fair, reasonable and keeps her eye on the bigger picture (i.e. getting you the house you want with the best terms possible and keeping your money, time and sanity safe), I just might be your gal.

Well, I hope that answers the question of whether you can ask for concessions after a home inspection. If you have more questions, let me know. I am ready, willing, and able to answer them!

One last thing, here’s another situation where a home buyer may negotiate while in escrow: the appraisal.

Recently, I helped first time buyers buy a house in San Francisco. They wrote an offer to purchase a house for $650,000 which was accepted. We wrote an appraisal contingency into the contract which said that the property had to appraise at no less than the purchase price.

The appraisal came in at $600,000!!!! Even though there were plenty of “comps” validating $650,000, the lender’s appraisal was zip code wide instead of sub-district. This meant that a much less desirable neighborhood was included as comps for the value. (Think Zillow!)

Ultimately, I was able to negotiate with the sellers and have the purchase price reduced. This, my friends, was the negotiation to end them all. It was a proud moment for me, let me tell you! Kinda like when your Dad tells the story of his winning touch down from 30 years ago…well, that’ll be me on this one. My buyers got a sweet deal. Often times, the calm, friendly yet tough negotiator gets the bird. And, without one hissy fit if you can believe it.

Here is this week’s Bernal Heights Real Estate Report:

• Average Price of Active Property: $803,674
• Number of Active: 28
• Average Days on Market: 67
• Average Price of Sold Property: $788,071
• Number of Properties Sold:  7

How does that compare to last week.  Take a look and stay turned for any changes next week.

To get a full report on Bernal Heights real estate activity just send us an email.

And, if you want to know the value of your home, ask us for the free report.

Happy Thanksgiving!!

Here is this week’s Inner Sunset Real Estate Report.

• Average Price of Active Property: $1,217,900
• Number of Active: 8
• Average Days on Market: 71
• Average Sold Homes Prices: $987,500
• Number of Sold: 2

Click here to view last week’s report and look back next week for our weekly statistics.

To get a full report on Inner Sunset activity just send us an email.  Or if you want to know the value of your property, just request for it online.

Here is this week’s Inner Mission Real Estate Report

Single Family Home

• Average Price of Active Property: $1,031,822
• Number of Single Family Homes listed: 11
• Average Days on Market: 91
• Number of Sold: 0

Condo / TIC

• Average Price of Active Property: $630,146
• Number of Condo/TIC Home Listed: 35
• Average Days on Market: 56
• Average Price of Sold Property: $566,000
• Number of Sold: 2

Loft Condo

• Average Price of Active Property: $729,429
• Number of Loft Condo Homes Listed: 6
• Average Days on Market: 55
• Average Price of Sold Property: $590,000
• Number of Sold: 1

Any changes from last week’s report?  Take a look.

To get a full report on Inner Mission real estate activity just send us an email.

And, if you want to know the value of your home, ask us for the free report.

Tired of waiting until Sunday mornings paper to view San Francisco open houses for the day?  Here is online tool to use. 

SFOpenHouse.com is a website that allows you to search for open houses anytime during the week.  It is accurate and easy to use.  Take a look.  We may have just saved you a $1.50!!

Here is this week’s Bernal Heights Real Estate Report:

• Average Price of Active Property: $810,034
• Number of Active: 36
• Average Days on Market: 63
• Average Price of Sold Property: $822,077
• Number of Properties Sold:  8

How does that compare to last week.  Take a look and stay turned for any changes next week.

To get a full report on Bernal Heights real estate activity just send us an email.

And, if you want to know the value of your home, ask us for the free report.

Well, it’s not particularly great news but it’s pretty fair and accurate considering how not so long ago the lovely Chron real estate folks seemed to only like to trash us agents. In the slowdown, have they decided to stop biting the hand that feeds them? Yet, I regress.

I don’t have time right now to pontificate (yes, you are so sad) because I’m on my way to a signing, aka closing appointment. Yes, folks are buying homes in San Francisco. In this case, they’re buying a great single family in Bernal Heights.

It’s a good read and our very own, Bill D. is a featured contributor. Check it out here.

The moral of the story: it’s a great time to buy if 1. you are a first time buyer 2. you’ve owned your home for a few years and are ready to trade-up or 3. you want an investment property to hold.

As for sellers…It’s not the best time to sell but it’s not the worst either. Many people are successfully selling homes in today’s market.  In particular, it’s an okay time IF you’ve owned your home for a few years, are willing to price for today’s market values, and/or selling is the right thing to do for YOUR overall life and financial picture.

Moral #2. No one can time the market perfectly. Do what’s in your best interest for now and for later. We are blessed to live and own real estate in San Francisco. Compare our downturn to outside the City.

Okay, Pollyanna’s off to meet her clients!

Here is this week’s Inner Sunset Real Estate Report.

• Average Price of Active Property: $1,220,818
• Number of Active: 9
• Average Days on Market: 65
• Number of Sold: 0

Click here to view last week’s report and look back next week for our weekly statistics.

To get a full report on Inner Sunset activity just send us an email.  Or if you want to know the value of your property, just request for it online.