Danielle Lazier

Archive for the 'Home Buying' Category

Follow SFHotlist on Twitter

Follow us on Twitter and get even more info on SF real estate!

C’mon, it’ll be fun. I may even throw in random real estate agent embarrassing tidbits to keep it interesting.

For example, did you know that Zephyr agents attended an etiquette class last Friday? Well, they called it “Image Consulting” but it felt a lot like the etiquette I learned at my snotty all-girls prep school in Dallas!

Sign up now!

http://twitter.com/SFHOTLIST

or look to your right and down.

Tags: SFHotlist, twitter

30-year rate up slightly but historically low: what’s the moral?

The Chronicle reports (of course from the Associated Press) that interest rates on 30-year fixed rate mortgages are up slightly (just above 5%). However, we continue to have amazingly, historically CHEAP MONEY.

So, what’s the moral of the story, you ask? You guessed it! Don’t try to time the market perfectly.

Check out this graph of 30-year fixed rate mortgages over the past 3 years? Does it seem to you like a good time to get a loan?

Recently, I was at the San Francisco Association of Realtors Annual Installation Banquet. This year, we had a real treat! Legendary Real Estate Guru, Barbara Corcoran, was the key-note speaker. She rocks, btw.

She said that in her decades-long career, this is the first time she has seen BOTH CHEAP MONEY AND CHEAP PRICES at the same time. Usually, you’ll get one or the other.

Oh ye of short-term memory, remember the “go-go” 2000s when cheap money shot up house prices all over the country? Well, now, you’ve got cheap money (on safe, long-term loans unlike in the 2000s when cheap money was for riskly, short-term fixed or adjustible loans) AND falling home values.

Consider that folks! It is an amazing opportunity that won’t last forever.

I know many of you (and maybe even yours truly) feel that SF home prices could continue to decline slowly. But the truth is that none of us knows for sure. How long will we have this buyer’s market? How long will interest rates be cheap as hell? Will prices decline further? How much? Will the interest rates increase in the meantime, thus wiping out any benefit of further price declines.

Personally, I’d rather get a 5% +/- interest on a 30-year fixed rate loan now even if my condo continues to decline in the short-term. It’s a pretty good bet that over-time you’ll be psyched to have 5% money on a San Francisco property.

Instead of being perfect, be pretty darn good.

If you are a entry-level single family home buyer with a good job and limited down payment, go for an FHA loan.

If you are a condo buyer with 10-20% down payment, go for the cheap 30-year fixed interest rate loan and the 10-20% off sale on the condo of your choice (suck up the PMI payment if you are less than 20% down; you don’t have to keep it forever but this condo sale won’t last forever either).

Okay, enough ranting for today! We’re off to sell our listings at today’s open houses. Wanna buy one? Right now, we’ve got a fabulous Pacific Heights TIC at a GREAT price and an attractive single family home in Portola that gives space, value and home comforts.

Our motivated first time buyers are also off shopping for a new home. There are some FAB condos on the market right now priced between $650,000-$800,000.

Tags: 1st-time buyer, cheap money, cheap prices, condo sale, historically low interest rates, San Francisco Real Estate

San Francisco’s 24/7 Open Home Guide

Tired of waiting for the Sunday Chronicle to see when that house you’ve been eyeing will be open? Want to know NOW what houses are open this weekend?

If you are actively looking to buy San Francisco real estate, you should be hooked up with an awesome local Realtor, i.e. me if you are smart!  

Your agent will be helping you figure out which open houses to see and which are a waste of time. We save our clients a lot of time by helping them sort through the dogs (unless you are looking for a dog, that is).

Nevertheless, this website is one of the go-to sites for all of you SF home buyers, especially those who’d rather check out what’s happening online than at the newstand. Enjoy!

http://sfopenhome.com/index.php

Tags: home buying, San Francisco Real Estate, sf open home

San Francisco Real Estate in 2009: Signs, Signs, Everywhere Signs

“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 »

Tags: 2009 forecast, 4 pillars, signs of the market

2008 was gr8 but 2009 will shine.

( 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!

Tags: 2008 holiday letter

FAQ: Can a home buyer negotiate credits or repairs during escrow, for example after the home inspection?

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.

Tags: credits, escrow, negotiation, repairs

Open House Search

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!!

Zephyr Head Honcho Makes the Cover!

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!

Tags: bill drypolcher, home buying, Home Selling, real estate meltdown, sf real estate market

Want to know when a San Francisco building was Ellis Acted?

For a list of buildings that were subject to the Ellis Act between 2000 and April 2007, the SF Tenants Union has a helpful list. Ironically, their site is full of helpful information for would-be homeowners. Keep your friends close and your….. as they say!

If you need more information about the Ellis Act, refer to the following sites and or contact a local San Francisco real estate attorney.

• SF Tenants Union
• SF Rent Board
• Andy Sirkin, Esq
• My Property Rights
• SF Small Property Owners
• Goldstein, Gellman, Melbostad, Gibson & Harris, LLP

Tags: ellis act, real estate attorneys, San Francisco Real Estate

How much is property tax in San Francisco?

Want to estimate property tax on a listing you’re interested in buying?

1.2% of the purchase price is a good, conservative rule of thumb. This is the annual amount but property tax is paid twice a year.

For example, on a $900,000 home, the annual property tax will be about $10,800.

Your lender will estimate this as a monthly payment when computing your PITI.

P= Principal loan payment

I= Loan interest payment

T= Tax payment (figured monthly)

I= Insurance payment (figured monthly)

In an condo, instead of PITI, use PIT-HOA since your HOA condo fee will cover the building’s insurance. You should get your own policy for the interior and your personal belongings…

Want info on SF Property Tax? Visit the City website.

Tags: piti, property tax