Danielle Lazier

Want my $.05? Danielle’s advice to San Francisco home buyers and sellers.

Tags: Danielle's advice to home buyers and sellers, First Time Buyer, home buying, Home Selling, San Francisco Real Estate, trade-up

Ok, we must be near the bottom now. Manhattan has joined the fun!

At the risk of sounding bitter and petty (not for the 1st time, I’m sure), I found just a wee bit of glee to read in the New York Times that even holier-than-thou Manhattan real estate is feeling the downturn.

Of course, be careful to understand the broader picture.

Some neighborhoods have seen median home prices go down while others have seen their real estate values go up.

Most notably, “the neighborhoods that fared the best through the third quarter included Fifth Avenue and Park Avenue from 59th to 96th Streets, where median prices went up 35 percent.” 35% folks! Wow. Looks like their are some Masters left…just not at Lehman Brothers.

Points of interest & commonality to our San Francisco real estate market:

1. Real estate is very local.

2. If you want to sell, price it right and by right, I mean lower than the competition.

Confusion – Uncertainty – Fear – Panic – Paralysis

What are your plans?

Tags: downturn, home values, manhattan real estate, San Francisco Real Estate

For San Francisco Home Buyers, Why Have Your Own Realtor?

Frequently Asked Question: Why Have Your Own Buyer’s Agent?*

At the risk of overly exciting the bloggers over at Curbed SF with my scintillating content, I’d like to explain the benefits of working with your own agent (Realtor) when you are buying a home in a complex market like San Francisco.

Top 10 Reasons It is Smart to Hire Your Own Agent When Purchasing a Home:

1. It costs you nothing. Your agent works on a contingent basis as opposed to a retainer like a lawyer. Your buyer’s agent will be paid in the form of a commission from the seller’s proceeds upon the close of escrow. You will pay nothing for their help and expertise, and they will only get paid if you find and successfully purchase a home.
2. Even though you do not pay money for their services, you are contractually bound to each other which means your Buyer’s Agent has a fiduciary duty to represent your best interests. Plus, if they are a Realtor (and they most definitely should be!) your agent must adhere to a very strict code of ethics. Your agent will represent your best interest in the purchase of ANY property listed with ANY real estate company or For Sale By Owner.
3. Your San Francisco buyer’s agent will help you determine how much you can afford. Working with your mortgage broker, your agent can give you advice regarding unforeseen costs of ownership and affordability. Just because you are pre-approved for a certain amount does not mean you should be…
4. Your real estate agent will fully explain the buying process to you and prepare you, in advance, for what to expect. They should guide you through the process every step of the way and help keep you informed all of the time.
5. She or he will provide you with statistical and comparable sales information so that you can make an informed choice on the offer price for the home you want. Even though it is pretty easy to find active listings on the Web at sites like Trulia and Zillow, recent, accurate and reliable Sold data remains mostly within the control of MLS members like your agent.
6. Your real estate agent will consult, negotiate and act as your project manager. She or he will negotiate the price and terms of your purchase on your behalf. Your agent becomes your sounding board, your confidante, and sometimes even your therapist during the buying process. You’ll be speaking or emailing with them almost daily during escrow so make sure you like your agent!
7. She or he will walk you through the massive amount of paperwork with clear and accurate explanations.
8. Your Realtor sells property full-time (or at least, they should) so she or he will have access to dependable mortgage brokers, home inspectors, title and escrow companies, home insurance companies, moving companies, etc. They can assist you with the transfer of utilities and be a resource for all sorts of service providers like hardwood floor re-finishers, custom shutter fitters, plumbers, electricians, handymen, painters, gardeners, and so on.
9. She or he will be present during the closing process, keeping you up to date as the loan funds and your names are recorded on the property’s title. Most likely, they’ll attend the closing or signing appointment with you at the escrow company and certainly, be available to review the closing papers for accuracy.
10. A good agent will act as your real estate consultant long after the close of escrow. For example, I often and consistently hear from past clients who need referrals for home repair folks or just want to know what the market is like. Whether or not, they will be selling or buying more real estate, I am there as a resource for them…for life.

Ask about our complementary San Francisco Home Buyer’s Guide: How To Stop Worrying and Love Buying a Home!

* Most agents will act as both Buyer’s and Seller’s Agents depending on their clients’ needs. When I say “Buyer’s Agent,” I am referring to a full-time licensed Realtor who will represent you as your buyer’s agent. They will also work with sellers on other transactions. Personally, I’m not a proponent of “buyers-only” agents b/c their knowledge of both sides of the transaction will be limited.

Tags: buyer's agent, First Time Buyer, San Francisco Real Estate, why have your own agent

Just 5 of the Reasons Why I Wish I Was a San Francisco First Time Buyer Right Now

Just 5 of the Reasons Why I wish I was a First Time Buyer Right Now:

1. I’d finally have a **** chance to get my first choice home rather than lose out over and over again in outrageous bidding wars!!

For the first time in many, many moons (most say since 1990-1991), San Francisco real estate is not a crazy seller’s market. The playing field is MUCH more even. In some micro-markets, it is even a buyer’s market.

In general, the market is balanced and for a chronically “low supply / high demand” city like San Francisco, this means the outlook is extremely good for home buyers.

Although this may last well into 2009, it will not last forever. SF has had a strong, expensive real estate market since the Gold Rush and this latest financial debacle is not likely to change this reality.

2. I could actually pay a decent price for my starter home.

Okay, there is no “fire sale” in San Francisco but there are some darn good values right now. Home price appreciation has stagnated and in many cases, home values are down (think lofts, TICs, some condos, and single family homes).

Over the long-term, even 5 years or more, San Francisco real estate prices remain way up. Remember, real estate is a long-term investment… However, in the short-term, prices are down or flat. This means a home buyer can expect to pay 2005/2006 prices for many properties.

THIS IS A RARE, ONCE IN A DECADE OR MORE HOME BUYING OPPORTUNITY.

Read the rest of this entry »

Tags: First Time Buyer, home buying, San Francisco Real Estate

Does the Housing Relief Bill Help San Francisco Home Buyers and Home Sellers? Yes! Here’s How…

How the Housing Relief Bill helps San Francisco home buyers AND sellers:

• Permanently raises the high-cost FHA and conforming loan limit to $625,500 (up from $417,000).
  • Right now and until December 31, 2008, the new conforming loan limit is even higher. In San Francisco, the higher loan limit is $725,750. This is only a one-year cap and will go down to $625,500 in 2009.
• San Francisco First time buyer tax credit of $7,500 for home purchases made before July 1, 2009. The credit applies retroactively to April 9, 2008.
  • Did you purchase your first home after April 9, 2008? Talk to your CPA about the credit so you don’t miss out.
  • I hear it’s more of a deferred loan than a flat out credit but still. In high-cost cities like San Francisco, every dollar helps make home ownership more affordable.

WHY SHOULD YOU CARE?

• FHA loans are safe and affordable. They are typically 30-year fixed rate loans. They have easier qualifying guidelines in terms of credit score and down payment, like 3% or 5% down. With loan amounts of $725,750 or even $625,500, you CAN purchase a nice property in San Francisco, say a single family home, 2-unit buildings or potentially a condo. Plus, you don’t have to be low down payment. You can put 50% down if you want! You still get the benefit of these safer loans.
• For years, San Francisco home values increased but the conforming loan limit did not. Most of us were stuck with jumbo loan financing, which meant higher rates and shorter terms (typically). Now, many home buyers can purchase with a conforming loan and thus get the conforming loan interest rate.
• That $7,500 tax credit is like getting your property tax or closing costs paid for you! You need less money up-front to stop wasting money on rent.

WHO SHOULD PAY ATTENTION?

• Potential home buyers who have been watching the market, saving their money and biding their time. Prices may or may not come down a little more but this highest loan limit will be gone by year’s end.
• Home owners who have interest rate terms resetting soon or loans they’d like to refinance. You may have better refinancing options than even 6 months ago. It’s worth a call to your mortgage broker…
• Home sellers should pay attention because these loan options may make their home sale easier and more profitable by allowing more potential buyers into the pool. Your agent should understand these new loan products so they can talk about them with potential home buyers.

Tags: First Time Buyer, housing relief bill, San Francisco Real Estate

What’s my Bernal Heights House Worth?

Right now, the real estate market can be tres confusing. Frankly, I am confused too! Many houses continue to fly off of the shelves, while others sit around…not selling. What is the deal?

In markets like ours, there is a wide variation of both inventory (housing stock) and marketing (presentation/staging and exposure of home to the public by agent).

Some houses are priced to bring in the crowds and presented to get those crowds to pull the trigger, i.e. write an offer to purchase.

Other houses are priced at the top of the value range (or higher) and do not show their best. While you may love Mr. Winkles more than you love your own children (C’mon, you know who you are!), many homebuyers will not appreciate how your home has been decorated as a shrine to the little pup.

Staging is CRUCIAL, especially right now. No, you do not need to hire a professional (though it will greatly help and most likely end up saving you time and money) but you do need to do some staging. I have written posts about how to set up your home for sale and I can give so much more specific advice in this arena but alas, I digress.

The real topic is Bernal Heights and what your Bernal Heights home is worth today. Or, for you home buyers, what does it cost to own in Bernal Heights? Property owners click here to find out specifically what your home is worth.

The reason I digressed into staging is that Bernal Heights is one of the best neighborhoods in which to see the vast variation of pricing, presentation and marketing in today’s San Francisco real estate market.

Want to see competitively priced, perfectly staged and appropriately exposed homes that sell over the asking price due to the 7 offers the sellers received?

Or would you rather see the over-priced house on lockbox with the entire extended family still in residence (along with their 30 years of bric-a-brac)?

Uncle Manny will happily show you around and by that I mean, follow you around the ENTIRE time you are viewing the house. Where’s their Realtor, you ask? Good question. Most likely, he is at his office which is located somewhere far, far away like Daly City!

Yup, we’ve got a lot of each plus many other variations on the theme. So, when you look at the attached data, keep in mind this variation….

Enjoy and let me know if you have questions!

Click here to see Bernal Heights homes for sale NOW and homes that have sold in the past 90 days. DOM means Days on Market, i.e. how long it took the home to sell.

bernal-heights-home-values

Tags: bernal heights, San Francisco Real Estate, single family homes

San Francisco Sunset District Home Values: What’s it worth?

As you know, Forbes recently listed San Francisco’s Sunset District as over-priced. Of course, they were using a Price to Earnings ratio as their gauge. In my opinion, single family home values in this neighborhood should not be evaluated through this lens.

Certainly, there are rentals in the area but mainly, this is a steady, reliable residential neighborhood. Yet, it is important to differentiate within the Sunset. The Inner Sunset, Central Sunset and Outer Sunset all have micro-markets as do the Parkside and Outer Parkside districts.

Generally speaking, this area is consistently in demand. Single family homes in San Francisco are a limited stock. Plus, the Sunset has easy commuter access via car or MUNI, Golden Gate Park’s wonders, great restaurants and stores, and of course, the Ocean….among other quality of life benefits.

It must be said that if you want clear skies and warm days, the Sunset may not be for you! Being someone who complains EVERY summer about how freaking cold, windy and depressing it is here even in the “fogfree-ish” zones like the Mission, Bernal Heights and Potrero Hill, I have to say that if you want real warmth, move to Palm Springs!

So, what is the market like in San Francisco’s Sunset District? Since a question about 3 bedroom homes in the Central Sunset was recently posed on Trulia, I thought I would give you some facts for fun.

Below is a chart of 3 Bedroom Single Family Homes in the Central Sunset. The list includes homes currently for sale, homes that are in escrow (Act.Cont and Pending), and homes that sold within the past 6 months.

Curious about another ‘hood? Let me know and I’m happy to post the results. So go-ahead and geek out on the stats. Just be sure to keep in mind that SF home values can vary A LOT depending on the specific house, block, and even if it’s vacant or comes with tenants. As with all stats, your critical eye is a good thing….

Sunset Home Values Report Here

Tags: San Francisco Real Estate, sunset district home values

San Francisco Single Family Homes: Healthy?

Okay, so if you pay any attention to the mass media, you’d probably think the entire world is collapsing. Am I right? To be candid, even I think like Chicken Little when I look at my SEP-IRA statements each recent month…

So, how is the San Francisco real estate market doing? Well, not to sound like the cheery optimists so ridiculed in the non-Realtor blogosphere but yes, San Francisco real estate is doing just fine. No, it’s not party like it’s 2004 but the market is stable, steady and with a remarkably low supply of inventory compared to demand. There are deals out there, especially in the loft/condo/TIC market but ask anyone who has owned their home for 5 years or more and they are likely to be very happy with their investment.

Bottom line: the time is right to be buying, particularly for San Francisco first time buyers & investors who qualify and move up buyers who have owned their property for say 4-5+years.

Most of our listings continue to sell quickly and with multiple offers so present and price it right and you will do just fine. Again, we are lucky to live and own in San Francisco.

The San Francisco Association of Realtors has improved and repacked their weekly statistics. In other effort to supply y’all with insider information (no, not the kind Martha unjustly went to jail for), I will continue to publish the stats here.

Mind you, in person I am hardly the smiley, perky type but when it comes to home ownership, I could practically be a Dallas Cowgirl! Really, I’m just channeling Ms. Orman but that’s another story.

My philosophy was and is that you should buy what you can afford as soon as you can afford it. Don’t worry so much about what is happening in the macro-economy.

Worry about your own situation. Do you have a good job? Savings? Good credit? Could you benefit from the tax savings and pride of ownership that comes with your own little slice of San Francisco?

Enough already, you say. Show me the money. Here you go. I hope all you analytic types will enjoy! (Following the chart is a list of related terms to help understand the data.)

NUMBER OF UNITS is the equivalent of number of sales/transactions. For condominiums, each unit is treated as a sale. For 2- to 4-unit buildings, the “building” is treated as a sale.

NUMBER SOLD is the number of properties in the market segment that closed escrow during the month.

NUMBER FOR SALE is the number of active properties on the market for one day or more during the month.

MEDIAN PRICE (SOLD) reflects the “middle” price point of a group of properties that have successfully closed escrow on a monthly basis, i.e. half sold for more and half sold for less than the median price. Tracking the movement of median prices over time provides a good indicator of the direction market forces are moving.

If the percentage change is positive between the two periods then there is upward pressure on prices in that market segment. If the percentage change is negative between the two periods then there is downward pressure on prices in that market segment.

AVERAGE DAYS ON MARKET (DOM) reflects how long it has been taking (on average) to draw an offer on a reasonably priced property exposed to the market. The AVERAGE DAYS ON MARKET is defined as: The average number of days it took all of the properties that went under contract during the period to accept a first position offer.

MONTH’S SUPPLY OF INVENTORY (MSI) is a measure of how long it would take, in months, to sell the existing inventory at the current sales rate for the specific neighborhood and property type. The MONTH’S SUPPLY OF INVENTORY is defined as: The number of active properties on the market for one day or more during the month, less the number of properties that have been withdrawn or expired, divided by the number of properties that have gone under contract during the month.

Tags: market statistics, San Francisco Real Estate, single family home

Is it an In-ie or an Out-ie? Wanna know which San Francisco zip code is the 6th most overpriced in US?

Yours truly was interviewed recently for the San Francisco Examiner. Pardon me while I toot toot my own horn, would ya?

But seriously, other than the pride and joy of seeing my name in the print of a free daily newspaper, it is an interesting and quick read based on a Forbes Magazine article.

Basically, Forbes magazine did a top ten list of the most over-priced zip codes in the US. The Sunset came out # 6. What is interesting to me is that this is another example of how statistics are only as good as the system they use. If you use a measurement style that is not applicable or relevant to the data then your numbers are not that helpful.

For example, Forbes and many other media outlets use a price to rent v. price to own tool to evaluate home values. This is similar to P/E (Price to Earnings) ratio for stocks. The problem is that stocks and real estate operate very differently and it’s just not fully appropriate to use the same evaluation tools.

Price to earnings or cost to rent v cost to own is a part of the picture and should be evaluated. However, it is not very helpful if you are looking to buy your own home to live in & enjoy.

If it is pure investment, then yes, you should consider what you will get in rent to what you have to pay to own the property. Will it cash-flow or break even?

But, if you are looking to get into a home and live in it for, say 5 years or more, chances are that buying in San Francisco will be a very favorable choice for you. Factor in the substantial tax incentives (income tax deductions and tax-free capital gains) and you are even more ahead. Owning your own home is also an inflation-hedge.

Bloggers’ note: I was interviewed for an article on the Inner Sunset and this is what I spoke about. The Forbes article calls it the Outer Sunset but talks about 94122 which includes both the Inner & Outer Sunset.

As us local folk know, the Inner and Outer Sunsets have vastly different real estate economies. Remember my mantra, all real estate is local…VERY LOCAL. My 9th Avenue listing mentioned in the article and thoughts on the neighborhood are my opinions about the Inner Sunset though some of it applies to both. Maybe the Forbes’ folks should have specified which Outer Sunset they refer to?

Tags: Examiner, Forbes, Inner Sunset, San Francisco Real Estate

Please stop the insanity! I am TIRED of touring overpriced listings.

Tuesday is Broker Tour day for San Francisco Realtors. This means that each Tuesday there is a City-wide tour of many available listings.

The tour starts at 9am in the northern parts of the City, think Pacific Heights, Cow Hollow, Russian Hill, etc and weaves its way around until it ends in the Mission, Bernal Heights, Excelsior etc at 4:30pm.

Okay, so now that you have the framework, I need to vent. As a local San Francisco Realtor who works REALLY hard to help my clients whether they are buying or selling a home, I get REALLY frustrated to see these crazily over-priced listings. It is shameful, actually.

I mean, really, an Excelsior home in THIS market for almost a million dollars! You must be kidding me. Hello, it’s not 2004 anymore, people. And, even if it were, this is ridiculous.

Sellers, please be realistic. If you don’t want to be realistic, then don’t sell. Simple enough.

Agents, why waste your time (not to mention my time, other dutiful agents’ time and the home buyers’ time) and money on listings that are completely out of wack with today’s market???

I learned my lesson on this one the hard way and let me tell you, it wasn’t fun and it won’t happen again if I have any say about it. Frankly, I’d rather be in the park with my little Pomeranian, than try in vain to sell an over-priced listing.

It isn’t good for you as the agent or seller. It isn’t good for the local market (just keeps inventory inflated). And, it isn’t good for me and my fellow Realtors who have the guts to tell our clients the truth and to walk away from “business.”

We are LUCKY to live and own real estate in San Francisco. Values here are SO resilient. Even if your home has depreciated, it hasn’t by much and if you compare your situation to your neighbors in most of the US, you will kiss your sidewalk.

Okay, now for the most important part… Don’t trip over my soapbox on your way to Facebook.

Tags: home sellers, overpriced listings, realtors, San Francisco Real Estate