Danielle Lazier

Archive for the 'Home Buying' Category

The American Dream is taking a Disco-Nap but she ain’t dead yet!

Yes, the economy crashed. Yes, your home’s value is down. Yes, things kind of stink right now and have for while.

Yet, there is a light at the end of the tunnel. The economy will slowly recover and so will the value of San Francisco real estate. In fact, even now, many listings for sale in San Francisco receive multiple offers from ready, willing, and able home buyers. Just last week a Bernal Heights home for sale north of Cortland Avenue received 3 offers and is in contract over the asking price. Why? Because San Francisco has more housing demand than supply. Even in the worst economy in decades, San Francisco real estate trudges on and out-performs almost any other real estate market in the country.

A lot of housing bears quote the Case Shiller Home Price Index to support their claim that we should all abandon the American Dream and just rent. (Wait, wouldn’t the landlord be living the dream, then? Someone’s gotta own it. But, I digress…) So, when I came across this NYTimes Op-Ed on the intrinsic positive values of home ownership, A Dream House After All, by none other than Karl E. Case, the co-creator of the Index, I had to rejoice and of course, post about it!

Mr. Case, writes,

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense…You live in the house and so it provides you with a real flow of valuable services. You can deduct the interest you pay on the mortgage. Interest rates are about as low as they can get. And, don’t forget, home prices are down by 30 percent on average from the peak…

This financial crisis has made us all too aware that we live in a Catch-22 world: the performance of the housing market drives the economy, and the performance of the economy drives the housing market.

But housing has perhaps never been a better bargain, and sooner or later buyers will regain faith, inventories will shrink to reasonable levels, prices will rise and we’ll even start building again. The American dream is not dead — it’s just taking a well-deserved rest.

I know we’re not supposed to “sell” on a real estate blog about San Francisco real estate but I just can’t help myself on this one.

If you have a good job that you like, have some money in the bank, and think you may stay in San Francisco for the next 5+ years, you really need to consider buying a home.  Rock-bottom real estate prices (relative for San Francisco – a world-class city), rock-bottom mortgage interest rates, and a recent uptick in fear in the media = the best housing affordability San Francisco has seen in a long, long time. This is the time for San Francisco first time buyers and those who already own a starter home and are looking to trade-up.

Will you get a 3 bedroom single family home for $500,0o0? No. But will you get the $1,500,000 home for $1,300,000? Yes. And the $900,000 condo for $775,000? Yes. This is a time for “value-conscious” home buyers.

Search ALL San Francisco homes for sale. More accurate than Zillow, Trulia, RedFin, etc.

Tags: case shiller, case-shiller home price index, home ownership

San Francisco Real Estate – Buyer Beware or Get a Professional Home Inspection

Part of an ongoing series of San Francisco real estate & related guest bloggers, here is one of San Francisco’s top residential home inspectors, Bill Thomson of the Thomson Builder Group, letting you know all about the home inspection process when buying a home in San Francisco.

“ASK THE INSPECTOR… ABOUT HOME INSPECTIONS

One of the most important processes in buying a home is having it properly inspected.  The inspector can give you information about the property so that you will be more familiar with it and as a result have a better understanding of it. (SFHotlist – This is true whether you are buying a Bernal Heights single family home or a Mission Dolores condo.)

FINDING A HOME INSPECTOR:

Your real estate agent is a good resource for recommendations of home inspectors.  (SFHotlist – We keep an updated list of reliable local home inspectors for our clients to choose from. Other San Francisco home resources & service providers) Be sure to choose an inspector who is a licensed general contractor.  There is no licensing body for home inspectors themselves.  Choosing an individual who is a licensed general contractor can ensure that your inspector has reasonable qualifications.  Your inspector should at least have 10 years experience as a licensed general contractor

Be sure your home inspector has specific experience in expecting homes in the part of the Bay area in which the building is located.  If you’re purchasing a home in San Francisco, for example you want an inspector who has specific experience with the types of problems and repairs that typically occur in buildings of the type you’re purchasing. (SFHotlist – For example, are you buying an Inner Mission loft, a Duboce Triangle TIC, or maybe a Forest Hill single family home? Make sure your inspector knows the type of architecture.)

Your home inspector should not only be making specific recommendations for repairs but should also provide advice on the maintenance of the building and the installations with in it.

It’s a good idea to choose an inspector who has specific experience with the building department that has jurisdiction over the area in which the building is being purchased.  Most of my experience is in San Francisco.  I’m very familiar with the San Francisco Department of Building Inspection and the codes that they apply.

Your home inspector should have appropriate insurance.  They should carry errors and omissions insurance of at least $500,000.  This can protect you in case there is a serious mistake.  An example would be the report indicates that the furnaces in good condition, but two months later the furnace causes fire that damages the property the inspector’s errors and omissions insurance could come into play regarding that damage.

If you are using one of the larger San Francisco real estate companies such as Zephyr Real Estate, Pacific Union, McGuire, Paragon, Coldwell Banker, Prudential, Vanguard Properties or any of the other larger companies they will likely insure that a “Certificate of Insurance” by the inspector is on file with them.  However, it never hurts to ask.

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Tags: bill thomson, Home Inspection

San Francisco Real Estate FAQ: What is a Tenancy in Common or TIC?

If you are shopping for a home in San Francisco, no doubt you have seen the term “Tenancy in Common” or “TIC”.

A TIC is a form of property ownership but in San Francisco real estate, it also refers to a type of multi-unit building for sale that has not yet been sub-divided into condominiums.

Click here for easy to understand articles and frequently asked questions about Tenancy in Common TIC home ownership in San Francisco. Note: TIC financing is specialized so make sure to work with a highly experienced TIC lender or mortgage broker. Ask us for a referral to a local San Francisco mortgage broker.

Tags: g3mh, tenancy in common, tic

Powerful Home Buying Strategies: Don’t Be Pushed Into Any House. OR How Many Homes Should I See Before Making an Offer?

Powerful Home Buying Strategies: Don’t Be Pushed Into Any House. OR How Many Homes Should I See Before Making an Offer?

A common question from home buyers is, “How many listings should I see before making an offer?” Read the rest of this entry »

Tags: FAQ, First Time Buyer, Frequently Asked Questions, home buying

Luxury Home Sales Bounce Back (especially in the San Francisco Luxury Home Market) – WSJ.com

Luxury Home Sales Bounce Back – WSJ.com…especially in the San Francisco luxury home real estate market.

“After a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing.

Despite the housing downturn, attractively priced homes in some of the nation’s most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers.

Nationwide, sales of homes selling for $2 million to $5 million in the first quarter totaled 2,461, up 32% from a year before, says CoreLogic.”

Recently, a gorgeous 4 Bedroom home in San Francisco’s family-friendly Noe Valley neighborhood (San Francisco, CA 94114), listed for about $1,700,000. Within a week, the Seller had received 4 offers, 2 of which were “All-Cash” and with no contingencies!

In San Francisco, if a home is priced right for today’s market and in a desirable neighborhood, it will sell. This is just not the depressed market that you read about… That’s good news for Sellers, especially those who have owned their homes for a while and/or have other savings and are looking to trade-up.

Buyers, don’t despair. Prices remain significantly down from the peak. Yes, you may have competition and need to write an over-asking offer BUT you are competing at a price point 10-20% off of peak prices. And with today’s LOW mortgage interest rates, real estate in San Francisco remains a killer deal.

Tags: luxury, Luxury Real Estate Market, san francisco luxury homes

Real Estate Market Outlook – The Devil’s in the Details but Good News for the San Francisco Real Estate Market

Last week, I heard Robert Kleinhenz, Deputy Chief Economist from the California Association of Realtors (CAR) give an Economic Forecast Update. He talked about how the media continues to cover “the California real estate market” when there is really no such thing. What is happening in the major cities and coastal regions is not the same as what is happening inland. As the 5th largest world economy, California is large and diverse. We have many economies and many real estate markets.

If you want to understand what is going on in your neighborhood, keep it local – very local. Become an extreme real estate locavore, if you will. And remember that the devil is in the details.

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Tags: case shiller, home prices, locavore, nytimes, sfgate

San Francisco Real Estate – Is it smart to trade up to a nicer or bigger or ideally-located home in a buyer’s market?

San Francisco Real Estate Conundrum: Is it smart to trade up to a nicer or bigger or ideally-located home in a buyer’s market?

Under many circumstances, it is smart to trade up in a buyer’s market. How can this statement be true? Let’s look at an example.

Example:  Let’s follow two San Francisco properties from peak to trough of a SF real estate market cycle.

• Home #1 – The starter home: Inner Mission 1 Bedroom Loft Condo
• Home #2 – The desired trade-up home: Noe Valley 2+ Bedroom Single Family Home

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Tags: Buyer's Market, trading up

April 2010 – Updated List of San Francisco Condos Approved for FHA Low Down Payment Home Loans

There are now 47 San Francisco condo projects approved for FHA low down payment home loans.

Caution – Not all FHA approved condos in San Francisco are listed. Consult with a FHA home loan expert. For example, Dolores Plaza was just re-approved for FHA home loans but doesn’t yet show up on this list…

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Carpe Diem – How to get up to $18,000 in State and Federal Tax Credits for Buying a Home in San Francisco

Carpe Diem – How to get up to $18,000 in State and Federal Tax Credits for Buying a Home in San Francisco

For a very limited time, certain San Francisco first time home buyers will benefit from up to $18,000 in tax credits. Not a first time buyer? You may still be eligible for up to $16,500 in combined tax credits.

The deal is that you need to be in escrow by the end of April 2010 and close escrow by the end of June 2010. Three weeks doesn’t sound like a lot of time, does it? Yes and no. For those of you who are serious about buying a home, three weeks is enough time to catch up on the existing homes for sale and zero in on the right home for you. (It helps to work with energetic and responsive San Francisco real estate agents who will help you narrow down your search to the best homes meeting your criteria and then help you see them quickly. Yes, like us. Duh.)

Of course, the timing needs to be right for you and your situation. A tax credit alone does not mean you should buy a home! If it makes more sense to wait, then wait. But if you’ve been procrastinating and have been afraid to pull the trigger and make an offer on a house in San Francisco, maybe this extra dough in your pocket is just the incentive you need.

Zephyr Real Estate and our amazing new SF real estate website has been promoting this golden ticket opportunity but we’re not along. Check out the SFGate article on San Francisco Bay Area home buying, “Good timing could reap double tax credits.”

“Getting both: Both credits require you to buy the home as your primary residence. Both define a first-time buyer as someone who has not owned a home in the three years prior to purchase. In short, to get both credits you must be in contract on or before April 30 and close between May 1 and June 30 – and meet all other requirements.” Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/01/BU9G1CNTVN.DTL#ixzz0kiWPYQwZ

Just want the facts?

Courtesy of May Montana* and all of the great mortgage brokers at Guarantee Mortgage, here is a Matrix explaining the 2010 Home Buyer Tax Credits:

2010 Home Buyer Tax Credit Matrix – PDF File

More info:

• Dolores Plaza 1 Bedroom Mission Dolores Condo for Sale -
  • FHA-Approved for 3.5% Down Payment AND
  • Union Bank – Approved for 10% Down Payment with NO mortgage insurance and great interest rates.
• Federal and California Home Buyer Tax Credit and other reasons it may be the right time to buy a home in SF.

* May Montana is an excellent mortgage adviser. Check out our other recommended lenders and San Francisco mortgage brokers. Why do we recommend them? Because we know they are experienced, trustworthy, reliable, competitive with rates and fees… We have NO financial relationship with mortgage brokers. That would be illegal, unethical and totally not worth it. We just like working with these folks and know you will too!

Tags: CA Tax credit, Federal Home Buyer Tax Credit, home buyer tax credit

ABC, it’s as easy as 123. Why you really need to get off your iPad and buy a home in San Francisco – now.

Yes, I am a Realtor so I am biased. Duh. But, honestly, folks. If you have stable employment and some savings (minimal needed for a FHA home purchase), and you’ve been considering the idea of buying your own home in San Francisco or San Mateo County, now really is the time.

Here’s why.

1. Last night during an initial consultation with intelligent, thoughtful first time buyers, I was told, “Listen, Danielle. This is the best time I’ve seen for a buyer in the San Francisco market in a REALLY long time, as in since the 1990s.” Amen, brother.
2. The CA Home Buyer Tax Credit for up to $10,000 signed into law today. Last year, the CA tax credit disappeared months before it was set to expire because of overwhelming home buyer demand.
3. The Federal Home Buyer Tax Credit of up to $8000. Gotta be in escrow by end of April and close escrow by end of June 2010. That’s plenty of time if you’re serious and get started right away.
4. Historically low mortgage interest rates.
5. FHA low down payment financing easier and more available than ever. We’re working with many FHA home buyers and have figured out the kinks…mostly.
6. The San Francisco real estate market appears to have stabilized. I’m not saying prices are headed up anytime soon but most people think we’re pretty much at the bottom of the market. BTW, down turns in the SF housing market seem to occur about every 10-15 YEARS or more. Wanna wait that long for the next one?

Tags: fha, First Time Buyer, home buyer tax credit