Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul.

While sometimes it feels natural to focus on life’s challenges and difficulties, I’m grateful that the Thanksgiving Holiday is upon us.  For me, Thanksgiving is a true reminder about all that I have to be thankful for. From my family to yours I wish you all a Happy Thanksgiving.

As it turns out, I’m thankful for all the first time home buyers who, according to a report released by the National Association of Realtors®, have represented 47% of buyers this year.  This surpasses the previous high record of first time purchasers set back in 1991. This can best be illustrated in data show in these graphs just released by Zillow.com. 

The first graph is the San Francisco Metro Area and includes San Mateo, San Francisco, Alameda and Contra Costa Counties.

The second graph is Santa Clara Metro Area comprising Santa Clara and San Benito Counties.

It’s clear that the housing recovery for the bay area began at the beginning of 2009 and continues to progress.   It’s also clear that first time buyers are critical to housing and a general economic recovery.

Why? Because they absorb excess inventory created by the high number of financially stressed homeowners and resulting foreclosures.  The research confirms that the current high level of first time buyers compares to the recession in 1991, where the same dynamic played out as first time home buyers started the chain reaction that led the nation out of recession.   The combination of tax incentives, record high affordability, low interest rates and pent up buyer demand has led to a high level of sales which began earlier this year.  Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.  

The survey reflected that the median age of a first time home buyer is 30. First time buyers are being realistic about the long term nature of their investment by planning to live in their homes for at least ten years.  Nationwide, 78% of the homes purchased were single family homes.

Of all the first time buyers, 96% choose a fixed rate mortgage.  61% of first time buyers used their savings as a down payment while 22% received down payment assistance as a gift from family.  This tells us that saving for a down payment is back in vogue.

And no surprise here, a staggering 84% of first time home buyers are using the Internet to find their new home.   

Reflecting the complexities of the market, 85% of successful home sellers used a Real Estate Professional to sell their home.  The actual number of homes sold without buyer or seller representation was a record low according the most recent survey only 6%.  

If you have an interest in Bay Area homes you will find what you are looking for at our website, www.AboutBayAreaHomes.com.  

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

What do these two homes have in common are more than you might expect.  They both sit in a quiet residential neighborhood on the peninsula.  They both share the same number of bedrooms and bathrooms and the square footage and lot size are almost identical.  They even have similar upgrades and both are presented to sell…… And there is more, these homes are on the same street as a matter of fact they are next door to each other.  What they don’t have in common is what makes this story so compelling.

While this neighboring home has been on the market close to 180 days and has two price reductions totaling $40,000 and still remains unsold.

Essentially the two homes are virtually identical in every way and both sellers have done a great job with presentation…so what did the seller with the unsold home do wrong? …or asked another way, what did the seller with the pending sale do that the neighbor didn’t?  There is one glaring exception to their similarity; one seller is ready to move on and the other is not. 

It turns out the one difference was in the original asking price.  Markets are constantly evolving and the best strategy a seller can follow today is to offer the home for sale at the bottom of the market value price range.  Remember, both homes have location, upgrades and presentation going for them, however only one seller has priced correctly.

A close look at recent sales indicates a market value range from the low to mid $800’s.  The home that is sold was priced just under $800,000 while the unsold home started out above market value at nearly $900,000 and has two price reductions totaling $40,000.  Frankly, it is still priced to high.  When homes are overpriced the seller ends up with one of two things, no offers or low ball offers. 

Of course that is exactly what a seller doesn’t want!

When it is all said and done, I suspect that the unsold home will either be taken off the market or will end up selling for less than the neighboring house did.

As a seller, how do you learn something about the market, considering the sellers mistake? First, you select an agent that you trust, an agent that welcomes your business, understands current market conditions, has a written marketing strategy and keen negotiating skills.  And second, by listening and heeding the advice of your agent, especially when it comes to presentation and asking price.  In today’s market the highest selling price goes to sellers that present their homes in market ready condition and price them right in the first place.

Remember, it’s not the seller, or the agent but the market that sets the selling price.  There is a big difference between pricing your home to sell vs. pricing to have it for sale.  

Agents that are market experts won’t do their clients the disservice of overpricing.

If you have an interest in Bay Area homes you will find what you are looking for at our website, www.AboutBayAreaHomes.com.  

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

The Bay Area Home Activity Reports for October 2009 are now available at www.bayareamarketmetrics.com.  Read on for the latest market news about the Home Buyers Tax Credit extension and expansion, plus why the continuing increase of the Pending Home Sale Index is revealing the Demise of the Buyers Market.

First, the Tax Credit-As I mentioned in my blog and video last week, the Federal Tax Credit has been extended at expanded to include not only first time buyers but also move up buyers that have been in their homes more than five years.  This chart details the old and new programs and can be found under Quick Links on our home page at www.aboutbayareahomes.com.

Today I will focus on the forward indicator of market momentum, the “Pending Home Sales Index”.

As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 8th consecutive monthly gain in September nationwide.

The index now stands 21% higher than it did one year ago and Pending Home Sales are now at their highest levels since December 2006.

A Pending Home Sale is a home under contract to sell, but not yet closed. 

The following Pending Home Sales Reports are taken from our October Market Metric Reports available at www.bayareamarketmetric.com. 

These graphs cover a two years period and as you can see below, San Mateo County and Santa Clara County Pending Home Sales are at their highest point in the past two years. 

As seen in these graphs, Alameda and Contra Costa Counties are reporting a steady number of Pending Sales at an elevated level when compared to two years ago. 

When the Pending Home Sales Index rises, it tells us that market activity has picked up.  October’s data confirms what we’ve been noticing since February — the Buyers Market is coming to an end.

With more homes under contract in the marketplace, homebuyers typically face one or more of the following:

   1. Competitive, multiple-offer situations
   2. Reduced purchase price leverage over sellers
   3. Fewer seller concessions

Therefore, if you’re planning to buy a home in the next several months, know that the 8-month increase in Pending Sales has lead to an increase in closed sales which in turn results in higher home prices and reduced  affordability.

Further evidence can be seen in this recent Case-Schiller Report.

If you intend to buy while rates are low and affordability factors are still favoring buyers, you should be actively working with an agent now.  If you are thinking of selling but have been holding off until the market was showing clear signs of improvement now would be the time to talk with your agent about preparing to list your home. If you have an interest in Bay Area Homes you will find what you are looking for at www.AooutBayAreaHomes.com.  Quick Links is visible when the page opens.

Quick Links 

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

As it stands right now the highly successful $8000 tax credit for first time homebuyers is set to expire on November 30th.  The Halloween Treat is that Senators have agreed to extend the $8,000 first-time homebuyer tax credit.  Once the Senate officially votes on the bill it will move to the House of Representatives, which strongly supports the extension. The administration has indicated strong support for an extension of the tax credit as well.

And adding to the “Treat”, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits would be available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close on their new homes.

There is an $800,000 price limit on all homes eligible for the credit.   Adding more to the Treat is that more buyers would be eligible because income limits for all buyers would rise to $125,000 per year for individuals and $225,000 for married couples.  That’s considerable more that the current program allows, the limits are $75,000 and $150,000 respectively. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

Remember, this legislation has not yet passed, but with the Senate’s approval, there is every indication that an enhanced Tax Credit Extension will be approved.  I will be sure to keep you informed as it moves through Congress toward approval.

And another much needed “Treat” for Homebuyers: President Obama is expected to sign a resolution passed late Friday by Congress extending the current limits for Fannie Mae, Freddie Mac, and FHA loans through 2010. The limits were set to expire at the end of this year.

The limit remains at $729,750 for Bay Area Counties throughout next year. T his is expanded limit is especially critical for “high cost” areas such as the Bay Area, where more than 80 percent of all loans are financed by Fannie Mae, Freddie Mac, or FHA.

I’m committed to being available to meet the real estate and home financing needs of my clients.  If you have an interest in Bay Area Homes you will find everything you need at our online resource center, www.AboutBayAreaHomes.com. 

Just look under Quick Links on our homepage. There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, strategies for home sellers, staging and presentation, my book, “Let’s Make a Deal, The insiders Guide to buying and selling Real Estate” and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links on our homepage. 

Quick Links
Search All Bay Area Homes For Sale
Search Bay Area Bank Owned and Short Sales Only
Bay Area Market Activity Reports by County
Rent vs Own Calculator
Annual Percentage Rate Calculator
Our Home Loan Center
For Sellers Only
Home Staging Services
Mobile Notary Service
Free PDF Copy of Russ Boyd's Book
Intero Foundation Information
About Our Team

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul

Over the past several weeks I have been asked about several recent media stories surrounding the real estate and mortgage market. 

The most asked about topic has been the expiration of the $8000 Federal Tax Credit.  And yes, what you have heard is correct; it is set to expire on November 30, 2009. Effectively, that means that unless you are in escrow now your purchase will likely close after the expiration date.  Will it really be gone? 

From all the data I have seen, the credit has contributed to the stabilization of the real estate market and it seems very doubtful to me that congress and the administration will let it expire.  Every trade group that has anything to do with housing is actively lobbying for it to be extended.

Another critical piece of the housing market stabilization, especially here in the Bay Area has been the “temporary” increase in the “high cost area” conforming loan limit to $729,500.  Yes, you heard me right, “temporary”.  Without going into all the legislation that brought it about, the $729,500 loan limit was made as a “temporary” limit and will expire at the end of the year. 

Again, this been instrumental for stabilizing housing in the Bay Area market and every trade group is lobbying for the increase to be maintained.

In a blog a few months ago I spoke about the California Association of REALTORS® Mortgage Protection Program (C.A.R.H.A.F. MPP) for first-time home buyers.

The plan, which is free to the buyer, provides up to $1,500 per month, for six months, to help make their mortgage payments in the event of a lay-off. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months.  This program, which to date as issued hundreds of policies, is set to expire 12/31/09. 

If you plan on closing a purchase transaction before the end of the year, talk to your REALTOR® for details.

In another blog post earlier this year I shared with you a warning about “foreclosure rescue” and “loan modification” scams.  One of the warning signs was if the person or organization offering the assistance wanted fees up front.

Currently, the California Department of Real Estate is investigating over 1300 complains and has issued hundreds of “cease and desist” orders.  Most of the scams include the payment of advance fees. 

This legislation, which was effective the day it was signed by the Governor, prohibits the collection of advance fees from anyone offering loan modification or foreclosure rescue or forbearance as a service.  Keep in mind “all persons” includes real estate agents or brokers and attorney’s.  Advance fees cannot be collected, period.

And, good news for those that have mortgage loans in excess of $1million.  According to an article in Forbes magazine the IRS issue a memo that concluded that a taxpayer can deduct interest on the first $1.1 million of a home mortgage--$100,000 more than earlier legal findings allowed.  The article quoted Kaye Thomas, a tax lawyer who publishes a tax guide at www.fairmark.com who stated “the affected homeowners could save $3,000 a year or more. Moreover, taxpayers can file amended returns for the past three years and claim thousands in refunds.” 

So, if this applies to you, I suggest you contact your tax preparer. 

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links on our homepage. 

Quick Links
Search All Bay Area Homes For Sale
Search Bay Area Bank Owned and Short Sales Only
Bay Area Market Activity Reports by County
Rent vs Own Calculator
Annual Percentage Rate Calculator
Our Home Loan Center
For Sellers Only
Home Staging Services
Mobile Notary Service
Free PDF Copy of Russ Boyd's Book
Intero Foundation Information
About Our Team

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Although, as I think about it, anything that benefits the communities where we live is really is about you as well.

What I’m talking about is the Intero Foundation. Now you may never have heard of the Intero Foundation and the truth is, neither had I before we joined the Intero Team about a year ago.

You see, it was our intent to affiliate with a real estate company that was different.  Now different isn’t always better, however, we wanted to partner with an organization that not only professed values but actual lived the commitment.  As it happens, one of Intero’s stated values is commitment – defined as; a pledge to do something, a state of being bound intellectually to a course of action.

As REALTORS® we earn our living by providing service to our clients and communities.  One way that Intero expresses this commitment is through the Intero Foundation.  Earlier this year I was invited to serve on the Intero Foundation Committee. 

The committee is made up of 16 Intero REALTORS®  that make a commitment to approve grant requests to qualified organizations that are diversified in size and mission, but all work to positively impact the growth and well being of children by enhancing their education, personal development and emotional well being.

I am proud and humbled to serve on the Intero Foundation Committee. 

As the Foundation representative of the San Mateo office of Intero, I personally had the honor, on behalf of the Intero Family, to present grants to three organizations in the amount of $33,000. And in the past couple of weeks the Foundation announced our most recent list of beneficiaries, which received $100,000 divided amongst them.

These organizations work to make our children – and our communities -- stronger: Dream Power Horsemanship, Rape Trauma Services, Family Connections, My New Red Shoes, Jacob’s Heart, Bill Wilson Center (SSJFY), Small Steps Foundation, Community Solutions, and the Learning & Loving Education Center .

Since its inception, the Intero Foundation has donated $1,367,365 to local non profit organizations that serve children. To give you an idea of all the non-profits The Foundation has been able to contribute to since its founding see the long list following this post or view by visiting Intero Foundation Information.

Each member if the Intero Family is proud to support these organizations.

So why does this matter to you? Well, there is an obvious connection: In the words of Interos President and CEO, Gino Blefari, “We are helping to make the place you call home (or are hoping to call home) better. And that matters. “ Gino goes on to say, “we are also expressing something about ourselves that might interest you: That we are a big organization, but not too big to remember that we are part of something still larger; that we take seriously our role as an organization rooted in a place; that we believe we must give in order to receive.”

If you share these beliefs, if it matters to you what your real estate company does in the wider world, then we have created something for all of us.

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links, which is visible when the home page opens, for information about home search, bank owned and short sales, home loans, market activity reports, home seller ideas, staging and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

A Brighter Today Foundation, Alum Rock CounselingCenter, Assistance League of San Jose, Assistance League of Saratoga, Barrett Elementary School, Barrett HomeSchool & Community Club, Bay Area Alliance for Youth Family Svcs, Bay Area Crisis Nursery, Bill Wilson Center (SSJFY), Buena Vista Auxiliary, Buenas Vidas Youth Ranch, Burnett Elementary School, Burton Elementary School, CampHope, CampTaylor, Carlmont Motivational Center, Children's Hospital Branches, Community School of Arts, Community Solutions, Concord Youth Center, Cross Cultural Community Service Center, Cupertino Community Services, Dan Herbert CampHope, Diablo Valley Assistance League, Discovery Counseling Center, Discovery Counseling Center SCIP Program, Downs Syndrome Connection, Estrella Family Services, Family Connections, Family Giving Tree, Franklin McKinley Education Foundation, Friends Together, Future Families, Future Vision Mentoring, Generations in Jazz, Hellyer Elementary, Housing Industry Foundation, Interfaith Council of Contra Costa County, JW House, Learning for Life, Let Them Hear Foundation, Lincoln High School, Los Paseos Elementary School, Montalvo Arts Center, NAMI Contra Costa, National Alliance of the Mentally Ill, One Step Closer, Open Heart Kitchen, Organization of Special Needs Families, PACE, Partners for New Generations, Project Help, Quilt Museum, Rape Trauma Center, Rebekah Children's Services, Role Model Program, San Francisco 49ers Academy, San Jose Education Foundation, Schmahl Science Workshop, Shelter Inc. of Contra Costa County, Silicon Valley Education Fund, Silvar-Charitable Foundation Trust, Small Steps, Social Advocates for Youth, Special Olympics, St. Rose Hospital Foundation, St. Joseph Family Center, Starting Point Arts, Super Stars Literacy Program, The Salvation Army, The Wellness Community, The Wish Book, Upward Bound Youth, US Relief for Unicef, Via Services, Westwind Riding Institute.

Compete information available at www.AboutBayAreaHomes.com.

Mortgage information is available at our Home Loan Center.

View the latest Real Estate Market Activity reports at www.BayAreaMarketMetrics.com.

Search for all bay area homes for sale at www.AllBayAreaHomesForSale.com.  Or for short sales and bank owned properties only,  search www.AllBayAreaBankOwned.com.

For sellers, we provide market analysis, home preparation and marketing services second to none.  Visit  For Sellers Only or just call me at 650 325 7877 or email Russ@BayAreaTeam.com and we’ll design a plan specific too your needs.

Home Preparation and Staging information is at www.PicturePerfectHomeStaging.com.

To receive a PDF copy of my book, click Let's Make a Deal, the Insiders Guide to Buying and Selling Real Estate. For a signed hard copy,  just send me an email.

We invite you to view our growing collection of short videos, slideshows and links at www.OurTeamPiks.com.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

 Disclosing what is called the Annual Percentage Rate or APR was intended to give the consumer a way to compare mortgage loan rates and costs between lenders and has been required since the inception of Truth In Lending laws since 1968.  Additional disclosure requirements were added in 1974 with the passage of RESPA.

Disclosure rules were amended again with the recent implementation of the Mortgage Disclosure Improvement Act of 2009. 

 The truth is, that only comparing the rate and APR is not perfect and should not be relied on solely when considering a mortgage loan.

 Now, back to my story.  Using an APR Calculator (which is available under Quick Links on our website, www. Bayareateam.com) I plugged in the numbers and found that in order to get the APR disclosed in the ad, some $29,000 in additional fees are being added to the loan.  Also, in the small print the advertised rate is only good for loans up to $250,000. 

This is a case of where the APR is giving the right message, but my client was shocked to learn that some $29,000 in fees and or points where being added to achieve this low rate.  Keep in mind there is no mention of points, just the rate and the APR, which is all that is required by the law.

1. Remember, APR is supposed to HELP consumers, not confuse them. Clearly this lender is charging hefty fees or a combination of fees and points. This brings us to our next point ...
2. Points are tax deductible costs - most other fees are not. Charging high fees in lieu of points is not in the consumers best interest.
3. It’s common to see rates quoted with NO POINTS to make them look better to    consumers. However you have to know the total costs in fees and points to get the true picture.
4. APR is "pliable" - Certain fees are calculated into the APR calculation, others are not. Do not assume lenders don’t become “creative” with the "names" of fees to artificially lower their APR's.  I have a list of over 100 items that can be included in the APR calculation, however, the common names for fees that make up the APR include  processing, appraisal, underwriting, funding, mortgage insurance, admin fee, document preparation and of course points, to name a few. 
5. A good faith estimate must be given within three days of the application.  Be aware with the passage of the Mortgage Disclosure Improvement Act of 2009, lenders cannot charge  an application fee until after you have been provided a Good Faith Estimate.

Personally, the only fee my clients pay before the loan closes is the appraisal fee and that’s not until  the loan is approved and we are ready to lock the rate. To me, application fees are just another deceptive way to lure a consumer in and tie them to the lender.

Numbers can be tricky and they can be used in downright deceiving ways at times.

That is why it is vital that you sit down and think your borrowing decisions through. You would be well served by talking to an expert you can trust.  You can do the Annual Percentage Rate calculation yourself on our website.  Look under Quick Links for the APR Calculator, which is visible when you open the page.  Compare loans in different ways.

Here it is the first of October and the September Market Activity Results for the Bay Area are posted to our website, www.BayAreaMarketMetrics.com.  When we made the decision to provide market activity reports one of our requirements was that the data be available immediately at the end of the month.  Our commitment to you is to have the reports on our website by the second business day after month end.

While on the topic of market reports, The National Association of REALTORS® reported that Pending Home Sales were up for the seventh straight month.  NAR maintains what is called the Pending Home Sales Index and it stood at 103.8 up from 97.6. This is the highest reading since July 2007. A reading of 100 is equal to the sales activity level in 2001.

At the regional level, pending home sales were up in all four areas of the country, in both monthly and annual comparisons.

The West saw the strongest growth, with pending home sales up 16 percent from the previous month and 22.3 percent from a year ago, to an index reading of 130.5.

All of this is welcome news because the rise in pending home sales shows buyers have returned to the market and signing contracts, but sales are taking longer to close and there is more than the usual amount of fallout because of long delays related to short sales and issues regarding complex new appraisal rules and recently changed disclosure requirements.  I imagine many first-time buyers are rushing to beat the deadline for the $8,000 first-time home-buyers tax credit, which expires at the end of November.

From what we see in the market everyday is a housing recovery that is strong at some price points and weak in others.  In other words, it’s likely we’ll encounter some bumps and detours along the road to recovery.

A recap of September’s market activity reveals that the median price has flattened the past couple of months except in Alameda and Contra Costa counties where the median continues show strength.  Also, the number of closed sales has fallen, however the number under contract shows continued strength.  This is likely due to the factors already mentioned, i.e., delays with short sales, complex new appraisal and disclosure rules.

In all cases, the days on market and supply of homes for sale are at the lowest point in past year.  Take a look at the comparisons in the easy to read graph format at www.BayAreaMarketMetrics.com.  You may be surprised at what you see.  Reports can be customized to cities or neighborhoods, home size and price range.  For a custom report, just send me an email, russ@bayareateam.com.

Keep in mind, the market is very competitive under $900,000.   As a buyer or seller you want to be armed with information, have reasonable expectations, and be represented by a knowledgeable and experienced agent.  An agent who welcomes you as a client, values your business AND, an agent who is well qualified to help you navigate successfully through the process.

To be successful in this market a buyer needs to be represented by the very best agent, an agent that welcomes you as a client, values your business AND, an agent that is well qualified to help you navigate successfully through the process.

And the competition is fierce.

 You’ve probably heard it from family, friends and co-workers, "You should buy a short sale or foreclosure. There are some great deals out there!" Or, your friend tells you, "I paid way below market!" And to some extent, these statements have merit.

Unfortunately from a practically point, many of these "deals" may not be available to you.

Remember, what we are talking about here are short sales (sales in which the seller's proceeds will be less than the outstanding mortgage debt) and foreclosures or bank owned (sales in which the lender is now the owner and seller). In other words, banks are in the position of having the final word. And this is where it gets interesting and complex.

Enter the age old market principles of supply and demand.  The terms, short sale and bank owned sales typically conjure images of a clearance sale, and for good reason. These homes usually carry attractive (often, overly-attractive) price tags. Banks have to consider the costs of holding an unsold, non-income producing inventory or, in the case of the short sale, increasing this inventory through yet another foreclosure. That’s how they justify their low pricing strategies. In reality, they’ve come to realize that buyer activity increases when homes are priced “as a good deal”.  This has created a market where distress homes are receiving multiple offers.  Of course many times this results in a selling price over the asking price.

The result; competition can be intense for lender-controlled homes; and (another old adage here) prices which appear too good to be true usually are.

So here we have buyers with no experience as homeowners looking at homes that in most cases have not been maintained or upgraded, involved in a bidding process for homes that will be sold in “as-is” condition. 

Did I mention that many times experienced investors are involved in the bidding process as well.  What an investor has that the typical buyer doesn’t is, a) experience, b) a different mindset, an investor only cares about investment potential and c) cash.

In a market where the sellers are, well real people, the primarily concern is about money and moving.  On the other hand, banks as sellers are more focused on speed. This is because, for lenders, time is money.

More and more we are seeing restrictions attached to distress sale offerings. For example, when a bank is the seller many times they require a pre approval through their own retail lending channel.  They may offer a small discount on fees if a buyer uses their retail outlet.  A buyer must be pre approved before successfully making an offer on any property today, however, to have your offer considered by a bank seller you will probably need to get pre- approved more than once. 

And, regardless of how it “usually” works where you live, a successful buyer will need to use the banks selected title company as well. 

Most banks stipulate that their listings be sold “As-Is” with "No inspections or home warranty’s provided".

And it’s becoming more common is to see "cash only" in the listing.  This is especially prevalent with condos, either because the owner  to tenant occupancy ratio doesn’t meet lenders requirements or when the HOA is in any kind of litigation or if the property is in poor condition.  

And buyer beware on this one; I know of several bank owned listings where the buyer can’t have access to the property because there is a tenant that is being evicted.  When this is the case the bank won’t even warrant that the property will be delivered vacant.  That means the buyer will inherit the tenant that is being evicted.

What does this mean for buyers?

It's not all bad news, of course. After a couple of years of declining home values in most areas of the country, prices have become very attractive, and not just for distress sales. Further, not all distress sales will be off-limits to the traditional buyer needing to finance the purchase.

Keep in mind, with attractive pricing comes competition. It helps to remember that a home purchase is a process, not an event, and that you won't necessarily win them all. Armed with information, reasonable expectations, and knowledgeable and experienced representation, however, you will dramatically increase your chances of getting that "deal."

To be successful in this market a buyer needs to be represented by the very best agent, an agent that welcomes you as a client, values your business AND, an agent that is well qualified to help you navigate successfully through the process.

If you are in the San Francisco Bay Area, my team and I have successfully represented buyer and seller clients in San Mateo, San Francisco, Santa Clara, Alameda, Contra Costa and Santa Cruz counties for the past 10 years.

Buyers, search for all bay area homes for sale at www.AllBayAreaHomesForSale.com.  Or for short sales and bank owned properties only, search www.BayAreaBankOwned.com.

For sellers, we provide market analysis, home preparation and marketing services second to none.  Just call or email me and we’ll design a plan specific too your needs.

For a complimentary copy of my book, Let's Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Just visit our website, www.BayAreaTeam.com, scroll down and look for the section Read All About It, click on the link and you will have your PDF version.  For a signed hard copy, just send me an email

We invite you to view our growing collection of short videos, slideshows and links at www.OurTeamPiks.com.

If you are still trying to decide whether to buy your first home, the convergence of  affordable prices, motivated sellers, low rates and tax credits almost seem as rare as a celestial alignment of the sun, moon and stars and it just may be signaling that the time is right for you.  In my life experience I have rarely seen such a blending of opportunity for home buyers. Here are just a few indications of how the market may be properly aligned for you right now:

1.The lowest interest rates in 50 years

You’ve heard it before and its well worth repeating. Interest rates are near all-time lows, hovering in the low to mid-5 percent range. In the late 70’s there were cars lined up at gas stations and interest rates were in the 9’s and heading to 10 percent. During the 1980s downturn they jumped as high as 21 percent. In the early 1990s they reached 12 percent.

If you're waiting for prices to fall even more you may want to think again. The government is running huge deficits and selling Treasury bills is how the debt is covered.

While these sales have gone well so far, investors may begin to feel skittish about purchasing government securities. It will only be a matter of time before the fed will have to increase the interest rates in order to convince investors to continue to purchase Treasury Bills. With Fed rate increases comes increases of home mortgage rates as well.

2. What if prices fall further?

A concern for most first-time buyers is: "Will prices drop even further?" Let’s put this in perspective, an interest-rate increase of one percent on a $500,000 loan will cost you approximately $110,000 more in interest over the life of the loan.

A two-percent interest-rate increase, which some experts believe is possible in the next two years or so, will increase the interest cost approximately $230,000 over the life of a 30-year loan.

If you believe prices will go down, the question is by how much. It would take another 25 to 50 percent drop in values to run the risk of waiting.

While anything is possible, there is every indication that we are at or near the bottom.  In some bay area markets the median price has increased over the past several months.

And it’s not just the bay area….sales are up, inventory is down and median prices are increasing in a wide variety of places.

Many of the hardest-hit areas are experiencing a comeback in sales --mostly driven by depressed prices and an abundance of distressed properties. The recovery is still in the early stages, however, there are concrete signs that the market is bottoming or may be starting to improve.

Excess inventory must be sold off prior to the market stabilizing in terms of price.

Once the excess inventory disappears, there will be more competition for a limited amount of supply.  We see that happening locally now. This is how the next upturn in the market will begin.  Multiple offers on first-time-buyer properties are a very positive sign for market improvement.

3.  It's cheaper for me to rent!

As a renter, your rent payments are paying off your landlord's mortgage, not your own. As a home owner, even if your house doesn't increase in value, each month you make a payment. By paying down the balance you accumulate wealth.

This is the equivalent of putting money in the bank each month. In contrast, renters lose additional wealth as their rental payments increase over time.

Subject to tax law, homeowners receive a tax advantage by being able to deduct mortgage loan interest and property taxes. This is not available to renters.

A homeowner with a fixed-rate loan has locked in his or her mortgage amount for the next 30 years. If there is inflation, the homeowner pays off the loan with inflated dollars. Rents, in contrast, rise to keep pace with inflation.  Who do you want to be in control of your housing expense, you or your landlord?

The longer you put off the decision to buy a home you may be leaving money on the table in two different ways. First, if interest rates increase, you will end up paying more over the term of their loan. Second, by waiting to take action, you will accumulate less wealth and experience less appreciation.

Plus, the longer you wait to start paying down a mortgage, the later the date will be that you retire that debt.

There's one other key issue to consider when it comes to getting off the fence and buying that first home -- the $8,000 tax credit. As of now the tax credit is set to expire on November 30, 2009. 

While there is always the possibility that it may be extended, by delaying action, you miss possible buying opportunities plus the cost of higher prices and rates.  All of that will add up to way more than $8000.00.

4. Timing

You must have heard the expression "buy low and sell high," right? It might even be your mantra.

As with any investment, it is ideal to purchase when prices are low rather than at their peak.  However, if you are waiting to purchase a home because you believe that there will be better opportunities in the future you may be your opportunity of home ownership at risk.  The time to "buy low" is right now.  

Already there is a realization that prices may already be at their lowest point, and there is no question that buyers have jumped in and started buying.  With dropping inventory the best deals will be the first target. 

If you are a buyer or a seller, be sure you are represented by the very best agent, an agent that welcomes you as a client and values your business. 

An agent that is qualified to help you navigate successfully through the process.

For sellers, we provide home preparation and marketing services second to none.  Just call or email me and we’ll design a plan specific too your needs.

If you want to find that perfect home you can search for all bay area homes for sale at www.alllbayareahomesforsale.com.Or, if you are just interested in short sales and bank owned, search www.bayareabankowned.com.

No registration required, no obligation for reports or any information.

Be informed about real estate with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send me an email and I'll forward a link to you for the pdf version.

Visit www.ourteampiks.com to view our growing selection of slide shows, videos (some funny, some motivational, some thought provoking) and story's that make there way to us from people all over the world. We would like to share them with you!

As you might imagine, interesting stories abound in the real estate and mortgage business today. The Tale of Two Sales illustrate the challenges buyers and sellers are facing today.

With today’s tight lending standards, it wouldn’t be a shocker to hear about a loan being turned down by one of the “big four” direct lenders that are still standing, until you hear “the rest of the story,” as Paul Harvey used to say.

The property being purchased appraised without a problem, and the buyer had qualified with formal loan approval. They signed all of their loan documents in escrow, brought in their down payment, and the closing was scheduled for the following day.  All was going according to plan, until the lender called the day prior to close to announce they are not going to fund the loan.

What’s that? That’s right, not going to fund the loan!!!!

Seems a copy of the termite report landed in the hands of the underwriter at the last minute (literally), and the bank refused to fund.  Now claiming the loan is “un-sellable” to Fannie Mae since there is “Section 1” work to the tune of $6,000.

At this point you need to know that the buyer had a $600,000 down payment on a $1,000,000 home purchase, asking only for a $400,000 loan. That’s 60% down to a well qualified buyer for a home that appraised for the purchase price of $1million.

Seems that no one cared that the contract did not call for the seller to make any repairs, the buyer was accepting the property “As-Is”. 

Shouldn’t someone be asking- is this still a good loan? Let’s see, $600,000 down with $6,000 worth of work on a lending program that has a minimum down payment requirement of 20%. Common sense anyone???

Let’s face it folks, the truth is, banks really aren’t the lender anymore, and the government is, since the majority of today’s loan’s are either purchased or insured by Uncle Sam via FNMA or FreddieMac (FHLMC.)  Another way to think of it is taxpayers now own Fannie Mae through Uncle Sam’s bailout.  So we taxpayers turned down a $400,000 investment secured by a $1,000,000 property over $6,000 in termite repairs from a well qualified buyer.

As part owner of Fannie Mae, I want that investment and others like it in my portfolio! – Hello, Fannie Mae, are you listening?

And yes, true stories from the files here at Intero.

Now here’s the irony.

Bank owned properties (REO’s) make up a third to almost half of the properties for sale in many markets across the country.  It is a “buyers beware” purchase.  Banks demand that buyers sign a complicated “as-is” addendum drawn up by their attorney.  Yet today, the bank denied a perfectly good loan because the buyer was buying the property “as-is.”

Ah, but here is the “rest of the story?” There is a happy ending.  The buyer did close escrow and get to move in.  The buyer ended up paying all cash for property.  So, at the end of the day, two buyers and two sellers were able to move on…just another day in our corner of the world….

If you want to find that perfect home you can search for all bay area homes for sale at www.alllbayareahomesforsale.com.  Or, if you are just interested in short sales and bank owned, search www.bayareabankowned.com.

No registration required, no obligation for reports or any information.

Be informed about real estate with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send me an email and I’ll send you a link to a pdf version.

The August Bay Area Metrics Reports for bay area counties are available on line at www.bayareamarketmetrics.com.    All across the Bay Area, Pending Home Sales rise and housing inventory continues to shrink.  What does a buyer or seller do in a low inventory market?  Answers below...

As active buyers and investors have realized for months,  prices are at point that makes sense for them to act and act they have.  Much of what is left seems to be priced to high for condition and location.  Buyers are becoming frustrated with submitting offers on multiple homes only to find multiple offers being submitted and theirs not making the cut.

The bottom line is that buyers can no longer expect to low-ball offers to get much traction with well maintained homes in desirable locations.

Even though foreclosures that come on the market invariably are in need of significant repairs, they still hold opportunity for buyers willing to make improvements before they can move in or begin receiving rental income. Just like well informed home sellers, banks now understand that the best strategy is to price foreclosed homes at the low end of market value and let the bidding process bring the highest and best price.  But, for the family that needs a home in move-in condition, the market can be challenging, especially for relocating buyers that need to make a quick purchase.

Our advice for home buyers is they must; (1) make a commitment of time and effort, (2) get their financing lined up, this means pre-approved, (3) find a great agent who welcomes their business and they start looking for the right home (4) They make an offer that fits the circumstances (this may be more or less than the asking price), (5) and they move forward with make sense continencies and move through the contingency period in a timely manner.  There are opportunities, however, to successfully compete in this market, buyers have to be committed to moving at the "speed of opportunity".

For interested sellers still skeptical about getting a good price for their home our advice is simple; start by going to open houses in your neighborhood and neighborhoods nearby that have homes that would compete with yours.  We think you will find that buyer traffic is higher than expected.  If that’s the case and you decide to move forward, be willing to make the commitment necessary to put your home in top marketing condition.  You do this by finding a great agent who welcomes your business and is willing to assess your home and your help you understand the current market conditions and best strategy for selling you home. You have something others want, so work with an agent that can help you make the most of the opportunity.

As I mentioned in a recent blog post, whether you are a prospective buyer or a seller you have the choice to  “Move at the Speed of Opportunity or Watch from the Sidelines”

If you want to find that perfect home you can search for all bay area homes for sale at www.alllbayareahomesforsale.com.  Or, if you are just interested in short sales and bank owned, search www.bayareabankowned.com.

No registration required, no obligation for reports or any information.

Be informed about real estate with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send mean email and I’ll send you a link to a pdf version.

Visit www.ourteampiks.com to view our growing selection of slide shows, videos (some funny, some motivational, some thought provoking) and story's that make there way to us from people all over the world. We would like to share them with you!

As I’ve been reporting for months there is continuing evidence that the housing market has bottomed in most major markets.  One of the most closely watched reports isthe Standard and Poors Case Schiller Report….The April 2009 report headline was U.S. Home Prices Declines Moderating  .  For the May report the headline was Recovery Signs in Housing Market Stir Some Hope and for June the headline reads Index Shows an Improvement in Home Prices . The bottom line is that eighteen of the 20 cities tracked by Standard &Poor’s Case-Shiller Home Price Index showed improvement in June, up fromeight in May, four in April and only one in March.

Further confirmation that the market is recovering came in the Federal Housing Finance Agency’s house price index, which was also released Tuesday. It rose 0.5 percent in June aftera revised increase of 0.6 percent in May.

The news comes on the heels of the NationalAssociation of Realtors® report on July sales volume, which showed a 5 percent rise above the pace in July 2008. It was the first year-over-year gainsince the market peaked in November 2005.

And it that wasn’t enough, new-homesales unexpectedly spiked 9.6% in July following a 9.1% rise in June.  Weiss Research analyst Mike Larson said saleswere "hotter" than expected. "This is clear evidence thedramatic cut in housing starts, plus increasing consumer confidence and thetargeted tax credit for first-time buyers is restoring stability to the newhome market," he said. The federal government's $8,000 federal tax creditexpires later this year. The National Association of Home Builders and othertrade groups are lobbying to have it extended.

As I’ve been reporting for months now, the same pattern has been developing in the Bay Area since January 2009.  You can see eight reports for each Bay AreaCounty in our Bay Area Market Metrics Report available at www.bayareamarketmetrics.com.  

Only time will tell.

The next couple of months will be critical in determining if we’re on a true upswing. Generally, the market seesa nice burst of activity in the early Fall, prior to the Holiday Season, and December 1st marks the end of eligibility for the Homebuyer Tax Credit. Those events will likely have a surge of buyers flowing into the market.

But from where we sit, we hope that time will have good things to say.

As I mentioned in a recent blog post, everyone has the choice to  “Move at the Speed of Opportunity or Watch from the Sidelines”

Search for all bay area homes for sale at www.AllBayareaHomesForSale.com.  Or if you are just interested in short sales and bank owned properties, search www.AllBayAreaBankOwned.com.

We invite you to view our growing collectionof short videos, slideshows and links at www.ourteampiks.com.

For a complimentary copy of my book, Let's Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Just email Book@BayAreaTeam.com and you'll be sent the link to the PDF version.

Did you know that all Multiple Listing Services (MLS) must have what is called IDX?  IDX(Internet Data Exchange) is the ability (more like a necessity) of all real estate brokers to display the entire “public” side of all properties listing in that MLS system on their company websites.  This includes every listing, not just a particular broker’s listings; it includes every listing in the entire MLS. By the way,  the term public includes the typical information you would find on a flyer, or public handout. This information does not include information such as;alarm codes, times when the owner will or won’t be home, etc. for obvious reasons.

This is the source of listing data that is available on our website, www.AllBayAreaHomesForSale.com.

While I love the wonderful advances in technology we have available to us today, I simply won't register on a website to search for information that is available on other websites without registration.  This Blog does not require your personal information nor do any of our websites.

I won’t visit sites that require cookies, or demand my personal information before I have even decided that I would like to do business with a company or person. I prefer to research the company first and find out things like; do they have the product or service I want? How long have they been in business? What kind of reputation dothey enjoy? Do they have the expertise to handle my business/questions?What is their privacy policy? What is their policy regarding spam? Is their contact information (other than e-mail) easy to locate, or do they bury it on their site?

We don’t like spam, and we really don’t like being pressured and we don't think you do either. We pride ourselves in providing up to date real estate and mortgage related information and being available to respond to our clients questions or needs by phone, text or email.  We do everything we can do everything we can to respond immediately!  Joan and I even carry “data capable” phones so I don’t have to be in front of a computer every minute of the day. Our policy is simple,  we refuse to do anything “to” a client that we don’t want done to us.

Bay Area Market Activity Reports for the bay area are at www.bayareamarketmetrics.com.

If you want to find that perfect home you can search for all bay area homes for sale at www.alllbayareahomesforsale.com.Or, if you are just interested in short sales and bank owned, search www.bayareabankowned.com.

No registration required, no obligation for reports or any information.

Be informed about real estate with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send mean email and I’ll send you a link to a pdf version.

Visit www.ourteampiks.com to view our growing selection of slide shows, videos (some funny, some motivational, some thought provoking) and story's that make there way to us from people all over the world. We would like to share them with you!

I think the words spoken by “George Owens”  say a lot about where some “homebuyers” are relative to this market.  Hopefully that’s not you.

Some people  are sitting on the sidelines...taking a wait and see attitude, waiting for the market to "change," hoping that some of the perceived risk will be reduced by more stable credit and mortgage markets, and wishing that just one more piece of positive news would filter out of the media to convince them to become active and take action.

Well, guess what? It just isn’t going to happen that way. Not if you want to capture the market at the bottom, at least. Let me explain why...and how to avoid "staying sidelined," so you are in the right position to capture current opportunities.

Imagine for a moment that you are attempting to merge onto the freeway, where traffic is moving at 65 miles per hour.... Now picture yourself coming to a stop...

Being behind somebody that stops on an on ramp waiting for the”right opportunity” can be scary, yet I imagine it's happened to every driver at one point or another.

So, when you’re at a standstill, how hard it is to find just the right opening between the rapidly moving cars. You know how hard it is to get your car to go from zero to 65 miles an hour in a very short distance without getting hit. It’s not easy.

Now, picture yourself in this same situation... only, this time, you continue moving down the on-ramp, and, once you find the right opening to merge, you join effortlessly into the moving traffic.

Simply put - it's hard to find an opening when you are standing still.  You know this - but did you know that this principle is not just a question of physics - it's a question of money and opportunity? And did you know that it applies to many would be homebuyers?

Movement creates opportunity. It invites new things to happen. Movement means you are ready to take action that you are responding and adapting to the changing marketplace.

As the market continues to evolve we are past the time to watch, to wonder and to wait. Now is the time to pay attention! Watch what's happening, and look for your opportunity.  Believe me the growing positive statistics, like those at our Market Activity website, www.bayareamarketmetrics.com  reveal that there are plenty of buyers ready to jump at the right opportunity.  Remember, if you are sitting on the sidelines, all you can do is watch.

And then there are those that "just got lucky", right?  Well here’s how people get “lucky”, they (1) they get into motion, (2) they get their financing lined up, (3) they find a great agent who welcomes their business and they start looking for the right home (4) They make an offer that fits the circumstances, (5) and THEN they "get lucky".  In other words, they are people willing to move at the "speed of opportunity".

Remember, just like you can't easily merge onto a highway from a dead stop... neither can you find the best home buying opportunity unless you are moving at the “speed of opportunity

If you want to move at the “speed of opportunity”, check out the market activity for the bay area at our Bay Area Market Metrics Report at www.bayareamarketmetrics.com.

If you want to find that perfect home you can search for all bay area homes for sale at www.alllbayareahomesforsale.com. Or, if you are just interested in short sales and bank owned, search www.allbayareabankowned.com.

Be informed about real estate with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send me an email and I’ll send you a link to a pdf version.

Visit www.ourteampiks.com to view our growing selection of slide shows, videos (some funny, some motivational, some thought provoking) and story's that make there way to us from people all over the world. We would like to share them with you!

As I was considering the question I was looking at the reports, which are available at http://www.bayareamarketmetrics.com . Here is what I saw for single family homes in several bay area counties:

San Mateo County – Median price up for the seventh month in a row, the number of homes for sale down 25% from one year ago and the number of days on the market average down to its lowest point since September of 08.

Santa Clara County - Median price is up for the sixth month in a row, the number of homes for sale down 40% from one year ago and the number of days on the market average down to its lowest point since March of 09.

Alameda County SFR – The Median price is trending up since the low in March 09, the number of homes for sale down 49% from one year ago and the number of days on the market down to its lowest point in a year.

Contra Costa County – Median price is up for the sixth month in a row, the number of homes for sale are down 51% from one year ago and the number of days on the market is down to its lowest point in a year.

And what is a market fundamental?  Yes, your right, supply and demand.  Keep in mind that a market in balance is considered a six month supply of homes for sale.  For the four counties above, the highest is San Mateo County with 2.75 month of inventory and the low is Contra Costa County with 1.75%. 

To put this in perspective, the national housing inventory is 9.4 months and the State of California is 4.1 months.  

Back to the question, is there a shadow inventory of foreclosed homes that banks are intentionally holding off the market waiting for the perfect moment to market them for sale?  Looking at the Bay Area  Market Metric reports there is every indication that what we need in the Bay Area is more inventory.  Multiple offers are common and, although qualifying for a loan takes, well, qualifications, there are obviously plenty of qualified buyers wanting to buy.

You can see the July 09 Market Metrics Reports for the Bay Area at www.bayareamarektmetrics.com .  Available reports include Median Price, Pending Sales, Closed Sales, New Listings, Inventory, Days on Market and more.  Reports can be customized …Just send me your request to my email, russ@bayareateam.com and you will get the report within 24 hours.  No registration on our website and no obligation for your customized report. 

And don’t forget, you can search for all bay area homes for sale at www.alllbayareahomesforsale.com. Or if you are just interested in short sales and bank owned, search www.allbayareabankowned.com .

Be informed about real estate with your complimentary copy of my book, "Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate." Send me an email and I’ll send you a link to a pdf version.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Recent headlines have reported news that strongly suggest we may be at the bottom of the real estate market.  In the words of  David Resler, chief economist at Nomura Securities, "The worst of the housing recession is now behind us."

Headline: 3-year descent in home prices appears to be at end

The Story-According to recent reports and forecasts by housing analysts, the three-year descent in home prices appears to be at an end.  According to Standard and Poor’s/Case-Shiller Index, for the first time since early 2007, the index of 20 major cities was virtually flat, rather than down and eight cities, including San Francisco, showed price increases in May, up from four in April, and one in March.  

It was the first month-over-month increase in the index in 34 months. 

Headline: Low-priced foreclosures incite bidding wars

The Story-Buyers in some areas are finding that bank-owned properties are sparking bidding wars between first time buyers and investors who often pay cash and buy several properties at once. 

In June, California’s Unsold Inventory Index stood at 4.1 months, compared with 7.6 months for the same time period a year ago.  A 6 months supply of homes is considered a market in balance.

Headline: June existing home sales rise by 3.6 percent
The Story-Signaling a housing recovery is under way in much of the country, sales of previously occupied homes rose for the third month in a row in June.The National Association of Realtors said Thursday that home sales rose 3.6 percent last month. Home sales haven't risen for three straight months since early 2004, during the housing boom.

Headline: New home sales rise as housing market tries a comeback

The Story-New-home sales rose last month at the fastest clip in more than eight years as buyers eagerly took advantage of bargain prices — a clear sign, economists said, that the real estate market may finally be bouncing back.

Historically low interest rates and a federal tax credit for first-time homeowners also helped push home sales to their highest level since November, the Commerce Department reported Monday.

Coming next week-Bay area housing market activity results for July will be available next week at www.bayareamarektmetrics.com.

And don’t forget, you can search for all bay area homes for sale at www.alllbayareahomesforsale.com. Or if you are just interested in short sales and bank owned, search www.allbayareabankowned.com .

See our collection of interesting videos and slide shows and www.ourteampiks.com.

From people all over the world comes a collection of slide shows, videos and story's - from funny to motivational from thought provoking to beautiful-courtesy of Russ Boyd and Joan Williams....and we would like to share them with you.  

You see, our internet presence continues to grow and one of the great things about the internet is that so many people share interesting things. 

The way to see our growing collection is simply click www.OurTeamPiks.com .

Samples from our Antartica slideshow:

and from St. Petersurg, Russia

You will surely laugh when you see the video of a Brit negotiating for the lowest cost for tooth extraction….See the title A Guide To Negotiation at www.OurTeamPiks.com .

You can see our entire collection, which continues to grow, at our latest website address, www.OurteamPiks.com.  We would like to thank all those that have shared with us and encourage each of you to share your interesting or funny media with us…….simply send me a link or a file to russ@bayareaream.com and we’ll add it to our collection.  

A disclaimer, we have given credit to the author when known and while we believe that all content we are sharing is not protected by copywrite laws we do not guarantee it and will remove anything protected if notified.

We encourage you to view and share with others and we would love to have you share with us.  

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

The June Market Metrics Reports, validated what we’ve been saying for a number months. The Bay Area Real Estate Market is showing consistent increases in sales activity and median prices are rising.  A question that has come up several times is “what kind of market is this, a seller’s market or a buyer’s market?” We’ve become very used to categorizing the market one way of the other. 

I’ve been active in the real estate and mortgage markets for 30 years and recovery’s always start at the same place, the entry level.  That’s right, it takes first time buyers to get the market moving.  First time buyers buy from sellers who themselves “move up” to higher priced homes. A “trickle up” effect, if you will, that eventually reaches the high-end of the market.   That’s one of the reasons we see the focus on first time buyers in federal and state stimulus programs that provide tax credits to first time buyers.

The activity that is creating the upswing in sales and median prices across the bay area counties shows extremely strong activity in each market’s entry level price range. Moreover, in the first week in June the number of pending listings in some areas exceeded new listings for the first time since July of 2005. This is an indicator of a healthier supply/demand balance.

Clearly, buyers at the market’s entry level have decided that we are at or near the bottom. The $8,000 federal tax credit provides extra incentive to move. And according to a recent Gallup poll, 71% of Americans think it is now a good time to buy a home.

So if we’re on our way to recovery, then we must be moving from a “buyers” market to a “sellers”, right?  Perhaps.  But there’s more to the story.  You see, in many areas, the majority of the sellers are banks, not people.  In fact, according to DataQuick, a provider of real estate market data, 55% of California home sales in May were properties that had been foreclosed on in the prior twelve months.

The number of REO or “bank owned” listings in our market is staggering. These are properties banks have repossessed from foreclosed homeowners and must sell.  When a bank-owned listing is sold, the seller, the bank, isn’t going to “move up” into their own purchase at a higher price.  There’s just a bank selling a foreclosed home.

So called “short sales” have a similar effect.  While the seller is a real person, the lender that agrees to take less than owed to complete the sale really controls the outcome, and very few “short sale” sellers are in a position to “move up”.

You see my point: The market is moving in a positive direction, but the climb up from the bottom is likely to be a little bumpy and take a bit longer this time.

This is great news if you’re a buyer or investor: Prices at all levels of the market remain attractive. If you’re a seller – particularly at the high end – you must continue to price aggressively and have your home in top showing condition to sell.

In the meantime, we’ll continue to look for signs the market recovery is moving upward.

If you have questions about real estate or mortgages and are in the San Francisco Bay Area I can be reached by phone at 650 325 7877 or email me at russ@bayareateam.com.

Be sure to check out the market reports available at www.bayareamarektmetrics.com .  Available reports include Median Price, Pending Sales, Closed Sales, New Listings, Inventory, Days on Market and more.  Reports can be customized by property type, price range, room count, square footage, zip code, city or neighborhood. 

Just send me your request to my email, russ@bayareateam.com and you will get the report within 24 hours.  No registration on our website and no obligation for your customized report.

And don’t forget, you can search for all bay area homes for sale at www.alllbayareahomesforsale.com. Or if you are just interested in short sales and bank owned, search www.allbayareabankowned.com .

Learn more about home buying and selling with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send me an email and I'll send you the link to the PDF version.

Over the past few months I have received many questions regarding loan modifications, foreclosure rescue and short sales.  Today I’m going to share you with my experience when I recently visited Congresswoman Jackie Speier's office.

After all, congressional members are elected by us and they and their staffs are paid by us, the taxpayers, and certainly lenders and banks are benefiting from the recent stimulus packages, so it made sense for me to find out what my congressional representative was doing about assisting homeowners sho are experiencing financial hardships that are affecting their ability to make their mortgage payments.

And, I’m happy to report that Congresswoman Speier is being very proactive providing assistance to her constituents that are experiencing financial hardships, especially related to their homes.  As a matter of fact, the staff member I met with in her San Mateo office, was not only professional and concerned, she has become quite an expert with the ins and outs of the loan modification process. 

To provide assistance to homeowners in financial distress, Congresswoman Speier has partnered with San Francisco Supervisor Carmen Chu to host a workshop for homeowners experiencing financial hardship. Click to learn more about the Crisis to Recovery Resource Fair for Homeowners in Distress which takes place July 25th 2009 in San Francisco.  By attending will you learn about mortgage loan modifications and how to avoid foreclosure scams and you will be able to meet with a counselors. 

AND if you have a mortgage with Wells Fargo, Chase/Washington Mutual or Countrywide/ Bank of America, there will be Mortgage Modification Evaluation Specialists on hand to discuss your circumstances.

If you or someone you know is experiencing a financial hardship I recommend attending this workshop on July 25th in San Francisco. 

Congresswoman Speiers 12th congressional district includes the peninsula communities of Redwood City and north plus parts of San Francisco.  If you live elsewhere you can find out how to contact your congressional representative by clicking this link: Bay Area Congressional Representatives’. 

If you have questions about real estate or mortgages and are in the San Francisco Bay Area I can be reached by phone at 650 325 7877 or email me at russ@bayareateam.com.

Be sure to check out the market reports available at www.bayareamarektmetrics.com .  Available reports include Median Price, Pending Sales, Closed Sales, New Listings, Inventory, Days on Market and more.  Reports can be customized by property type, price range, room count, square footage, zip code, city or neighborhood. 

Just send me your request to my email, russ@bayareateam.com and you will get the report within 24 hours.  No registration on our website and no obligation for your customized report.

And don’t forget, you can search for all bay area homes for sale at www.alllbayareahomesforsale.com. Or if you are just interested in short sales and bank owned, search www.allbayareabankowned.com .

Learn more about home buying and selling with your complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Send me an email and I'll send you the link to the PDF version.

We are going through a challenging time.  This annual celebration of our countries founding is not about whether you agree or disagree about the direction our politicians are taking but our freedom and responsibility to be involved in the process.  America is still one of the few places you can and should be involved by sharing your views and making them heard.  You can take up any cause and you have the freedom to share it with all that will listen. 
And be sure that the children in your life understand that while picnics, fireworks and hot dogs are all great fun, there are reasons why we celebrate. 

Now on to the highlights and health of the home sales market in the San Francisco Bay Area.
Our exclusive Bay Area Market Metrics report is available at www.BayAreaMarketMetrics.com.  Take a look at the Median Price and Pending Home Sale reports for San Mateo, Santa Clara, San Francisco, Alameda and Contra Costa counties below..  On the website, there are eight reports for each county...all the indicators have shown positive improvment since the beginning of the year.

The market continued to show improvement in the entire bay area in June.  In all counties, the median price continues to rise, the number of homes under contract and sold continues to increase and the inventory continues to shrink.  

If you or someone you know is still waiting for the market to bottom, well, from my view, we are at the bottom.  How much longer do you want to wait, not taking advantage of low prices, low rates and tax credits as the number of homes to choose from becomes fewer and fewer and multiple offers are become more commonplace?

At www.bayareamarektmetrics.com available reports include Median Price, Pending Sales, Closed Sales, New Listings, Inventory, Days on Market and more.  Reports can be customized by property type, price range, room count, square footage, zip code, city or neighborhood.  Just send me your request to my email, russ@bayareateam.com and you will receive your report within 24 hours.  No registration on our website and no obligation for your customized report.

And don’t forget, you can search for all bay area homes for sale at www.AllBayareaHomesForSale.com. Or if you are just interested in short sales and bank owned, search www.AllBayAreaBankOwned.com .

Learn more with your own complimentary copy of my book, Let’s Make a Deal, the Insiders Guide to Buying and Selling Real Estate. Just eamil book@bayareateam.com and you'll be sent the link to an online copy.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

                                   Videos are uploaded and syndicated by Tube Mogul

A few weeks ago I posted a blog warning about scam artists that are preying on financially trouble homeowners that are seeking loan modifications, short sales or foreclosure rescue.  This week, The California Department of Real Estate issued a "fraud warning”.  It now seems apparent that the “bad guys” are out there in full force.  Less than one year ago, the Department of Real Estate was receiving less than 10 complaints a month from consumers involved with loan modifications and foreclosure rescue companies…that number has now jumped to over 700 active investigations and more than  200 Desist and Refrain orders.

To check out this long list of bad characters see the Dept of Real Estate at this address http://www.dre.ca.gov/cons_drs.asp .

The consumer alert can be found at http://www.yourhome.ca.gov/fraud_warning.pdf .

$100 million New Home California Tax Credit Nearly Gone.

In another recent blog I reported on the $100 million new home tax credit available in California.  The tax credit is available to California homebuyers purchasing a new construction home as a principal residence and closing escrow before March 1, 2010.  Turns out that the tax credit has been popular indeed……The Franchise Tax Board (FTB) recently announced that the $100 million allocated by the state in new home tax credits will soon be gone. The FTB has received more than 9,800 applications, claiming nearly $95 million as of June 17.

To qualify, buyers must purchase a qualified principal residence that has never been occupied, and the buyer must reside in the new home for a minimum of two years immediately following the purchase date.

Complete details of the plan can be found at:

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

We are closing in on June 30th  and I'm happy to report that the past couple of months have been very active in the San Francisco Bay Area.  It will be very interesting to view the June results at our market metrics site, www.BayAreaMarketMetrics.com. If you want to see exactly were the market is today, compared to one year ago in the Bay Area just visit the site.

We are seeing general market improvement every week….if you have questions about whether to buy, sell or refinance and are in the San Francisco Bay Area….get in touch with me by phone at 650 325 7877 or email me at russ@bayareateam.com.

You can search for Bank Owned and Short Sale homes listed in the multiple listing service in the bay area by visiting www.allbayareabankowned.com .  My home loan website is www.bayareateamhomeloans.com.

9rvpn2ykhz Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

The median price paid for a Bay Area home jumped in May as more expensive homes started to sell again. The overall number of homes sold increased for the ninth month in a row, according to DataQuick.

The median price paid for a home in the nine-county region rose 12.3 percent  in may compared to April  and 17.8% higher than March of this year.

What led to this increase is a small but noticeable increase in sales of homes financed with home loans between the “conforming limit” of $417,000  and the new “super conforming” limit of $729,950 and above.  Super conforming and jumbo loans accounted for 25.5 percent of the Bay Area’s home sales last month, the highest since last October. Two years ago it was more than 60 percent. The sales of those higher priced homes in the statistics is pulling the median price up.

In the Bay Area counties, sales of $800,000-plus priced existing single-family houses rose to 13.2 percent of all house resales last month, up from 9.8 percent in April.  Sales of sub-$400,000 existing houses dropped to 57.5 percent of May sales, down from 62.2 percent in April.

What is contributing to this market trend?

1.      Banks are now better equipped to handle the sale of foreclosed properties and they have begun to price them to the market.  They also have improved the way they process short sales.

2.      Real estate agents are now more knowledgeable about bank owned and short sales properties and can better educate buyers about what to expect.

3.      Liquidity has come back to the conforming and “super conforming or high balance conforming “  loan market, plus the high balance loans were increased to $729,750 in most of the bay area.

4.      The use of government-insured FHA loans has become a more common choice among first-time bay area buyers – representing 24.5 percent of all Bay Area purchase loans in May, up from 7.3 percent a year ago.

Where do we go from here…Eighteen months ago, housing at all levels had a predictable supply of mortgage money. But when Fannie's and Freddie's accounting problems got the better of them, and most of Wall Street's investment bankers were unable to pay their bills, private investors pulled out of the mortgage market practically overnight.

As I mentioned last month in my blog “Where have all the Jumbos gone”, liquidity must come back to the jumbo loans before the “move up “ market can return to health.  Jumbo loans accounted for 60% of all mortgage loans in the bay area 18 months ago, now it is less than 5%.

We are seeing some signs of life with some lenders coming back to making loans above $729,750.  The spread between fixed conforming and jumbo loans remains high at about 1 ½ percent, however, Jumbo 5 year fixed loans are available below 6%.   The down payment requirement for Jumbo loans is 20% to 25%.

What all this means is that when there is a predicable availability of mortgage loans, low rates and supply, there is a viable market.  The market is steadily improving and the median price is increasing.  This is a great time for first time buyers and investors.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

While  the economic meltdown and our presidential election garnered all the attention in Washington this past year, a little known policy adopted by Fannie Mae and Freddie Mac know as HVCC or Home Valuation Code of Conduct transitioned quietly from a mere proposal into concrete national policy altering the core aspects of virtually all real estate transactions, with devastating effects.

Today, the complications of the HVCC are killing real estate sales and stopping qualified homeowners from refinancing all across the country. Buyers and homeowners are paying higher closing costs while receiving less service, while market value decisions are being referred to unfettered and often clueless appraisal management companies located thousands of miles away.  Worse, sales and refinances, in your town, are many times being derailed by night shift hourly workers parading as “appraisal reviewers” in call centers half a world away.  That’s not appraisal independence – that’s appraisal insanity, and it’s hurting every one that owns a home or wants to own a home.

It all started when one man, Andrew Cuomo, the Attorney General of New York was investigating the relationship between an Appraisal Management Company owned by First American Corp and Washington Mutual.  The investigation revolved around loan officers influencing value by selecting appraisers that could “hit the needed value.” The investigation expanded when Cuomo determined that Fannie Mae and Freddie Mac had purchased loans from Washington Mutual.

Last year, when Fannie and Freddie’s financial woes were in the media and under scrutiny, the NY Attorney General hammered out a “solution” called HVCC. Fannie and Freddie agreed adopt new changes to how appraisals are processed in the mortgage industry in exchange for an end to the investigation.  It turns out the cure is worse than the disease.  And the irony is that now appraisals must be ordered through unregulated Appraisal Management Companies and loan officers are not permitted to have any contact with the appraiser.

Wait a minute, didn’t this all start with an Appraisal Management Company? …indeed it did….an guess who owns many of the appraisal management firms?  Would you believe many of these unregulated AMC’s, as they are called, are owned by banks in the mortgage business.

Appraisal Management Companies (AMCs), who have been the subject of several misconduct investigations, are the centerpiece of the HVCC. The original Cuomo investigation involved a federally chartered bank (Washington Mutual) and an AMC owned by First American Corp. . HVCC does nothing to reduce fraud, as it legitimizes the same failed model, which was the subject of Attorney General Cuomo's investigation.

What it means to Consumers:

No Portability! Consumers are "trapped" with a specific lender. If a better deal becomes available with a different lender, the consumer is forced to pay for another appraisal.

Higher Costs!   If there is a need to change lenders or brokers as a new appraisal will be necessary.

Increased time!  As brokers and loan officers lose control of choosing and managing appraisals consumers will pay the cost for longer rate locks or extensions of existing locks. In the case that a new lender or broker is chosen, a new appraisal will be necessitated, increasing time to funding.

Decrease incentive to change lenders or brokers if they are not getting the service they deserve due to increased costs and time involved.

Here's your chance to act.

Read and sign petition here!

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

                      Beware the Foreclosure Scam Artists

It’s a sad commentary to hear the news reports that there are individuals and groups out there working scams to extract money from homeowners who are trying to do the right thing…..and who can least afford it.

Homeowners in financial distress are being targeted by scam artists purporting to assist homeowners with loan modifications, short sales and foreclosure “rescue”. 

If you or someone you know is having problems making their mortgage payments, please pass on this information

Here’s what you need to know:

You can negotiate a loan modification directly with your lender.  Your lender should be able to provide you with a list of the items needed to get you started. Loan modifications are for those in financial stress, therefore, you will be asked to provide a hardship letter, current income and banking information.

You can also hire a licensed real estate broker or agent who has experience with loan modifications and short sales or you can hire an attorney who does this kind of work in the regular scope of their business.

Red flags are almost to numerous to mention, but here are a few….money up front (legal with restrictions…but a red flag)….asking you to sign a power of attorney, suggesting that your credit can be repaired……guarantees of success…..the list goes on and on, so please do you or someone you know that is in financial distress a favor and check out this website,

http://www.yourhome.ca.gov/fraud_warning.pdf  before “hiring” someone to provide loan modification assistance.

Another source of helpful information is   http://www.yourhome.ca.gov/mortgage-help.shtml

If you feel the need to seek foreclosure assistance, be aware that, in the words of California Attorney General, Jerry Brown, “California is awash with con artists who prey on vulnerable families facing foreclosure," "By forcing foreclosure consultants to submit detailed information to my office and post a $100,000 bond, this newly created registry will help bring long-overdue transparency to this shadowy world."

Yes, that’s right.....as of July 1, 2009 Foreclosure Consultants must register with the Attorney Generals office and post a $100,000 bond.  Consultants that provide the required documents will be issued a Certificate of Registration  More details are here:

http://ag.ca.gov/newsalerts/release.php?id=1748

Keep in mind, there are qualified and licensed agents offering real help for those that are seeking assistance, so it can make sense to discuss your financial circumstances with a licensed real estate broker or agent that you trust. 

In our case, we work with two loan modification-short sale negotiators and neither charge an upfront fee. 

Whether it turns out that a short sale or a loan modification will result in the best outcome, keep in mind the lender is going to want current financial information and require an explanation of the hardship.

If you or someone you know needs assistance in the San Francisco Bay Area, give me a call at 650 325 7877 or email me at Russ@bayareateam.com

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

In a recent discussion with a client, I pointed out that the median pricing reports are not truly identifying values of all properties and is actually distorting valuations.  The reason for this is that one segment of the market (the higher-priced homes) is not really "open for business" due to the lack of jumbo loan financing.  I brought this to your attention last wee in my blog “Where have all the Jumbos Gone”.  Median price reports skew to the lower priced houses, which are the majority of homes that are selling right now. 

I described it as a "market-mix change" , rather than an overall drop in values.  In other words, in a market that once had 60% or more of its sales above $800,000, and now only has 5% of its sales in that price range, the median price drops, but the value of homes above $800,000 does not drop at the same rate. 

Many consumers read media reports and have the impression that their house value has dropped a lot more that it really may have.  For example, in San Mateo County, the median prices of homes countywide have dropped 40% in the past two years. If someone bought a $1.5 Million house 2 years ago, that house is not necessarily worth only $900,000 now.  As a matter of fact the actual median for homes price between 900,000 and 1.5million in the same period is only 5%...that’s right, while the media would report a 40% drop in median prices if you own a home worth between 900,000 and 1.5million the media has dropped only 5%...not to “newsworthy” is it… I contend that its value is higher because the median pricing reports have an abundance of low-priced homes dragging the median down.

We are seeing general market improvement every week….if you have questions about whether to buy, sell or refinance and are in the San Francisco Bay area….get in touch with me by phone at 650 325 7877 or email me at russ@bayareateam.com.You can search for Bank Owned and Short Sale homes listed in the multiple listing service in the bay area by visiting www.allbayareabankowned.com .  Our home loan website is www.bayareateamhomeloans.com.

When it comes to real estate loans….well, it's been a roller coaster ride for the past two years!!

The mortgage market of today can be described as having three distinct categories;

The first is what we always hear about…….Conforming loans…….Conforming loans are loans that meet the guidelines of Fannie Mae and Freddie Mac, including the loan limit size of $417,000.  When you hear about rates in the media they are usually talking about conforming fixed rate loans.  For borrowers that qualify, the standard 80% Loan To Value loan with documented income and assets plus a credit score of 720 or higher on single family homes have the lowest rates.  Rates for these loans have been hovering around 4.75% over the past couple of weeks.

The part of the story that is unreported is that variations to this standard, such as a lower credit score or a condo, second home or ivestment property instead of a single family can add to the rate…..

The next category of mortgage loans is what is referred to conforming “high balance”  loans.  These are loans that are also underwritten to Fannie Mae and Freddie Mac standards and are available up to a maximum of $729,750 in high cost areas, such as the bay area. Under current law that limit is set to expire at the end of 2009.  Conforming “high balance “ loans may have more restrictive underwriting requirements than standard conforming loans and carry a premium added to price.  Rates for conforming “high balance” loans are generally about  a half a percent higher than standard conforming. High balance rates have been in the low to mid 5% range for the past couple of weeks.

Jumbo loans are loans that exceed $729,750 and are also sometimes referred to as “non conforming” loans. Ever since the sub prime melt down of 2007 the market for these loans is very limited…..essentially there is virtually no secondary market for the resale of  jumbo loans which means that when a lender makes this type loan they have to hold keep it in their portfolio.  We’ve all heard about the liquidity issue with banks today…..holding loans that have the stigma of high risk is not on most banks agenda.

This chart shows how the "rate spread" between conforming and jumbo loans. As you can see the spread has grown form an "historical" .375% to well over 1.50%.

The lack of a vital secondary market for jumbo loans has a lot to do with the dropping median price of homes….if the average buyer finds jumbo loans difficult and expensive with high down payment requirements they tend to stay out of the million dollar plus home market. 

Take a look here at how the number of Jumbo Loans has decreased since mid 2007.

On the supply side, only those buyers that must sell put their home on the market and on the demand side there are fewer buyers, so pricing is competitive…….

The fed is fueling the secondary market for conforming loans by buying mortgage back securities issued by Fannie Mae and Freddie Mac. Until market confidence returns and a secondary market for jumbo loans is reestablished the sale of million dollar plus homes is likely to languish…….so what we have is that a preponderance of homes that are being sold are in the under $750,000 price, thus the median continues to drift lower…

 That’s the state of affairs in the mortgage market as I see it…..…of course there are a variety of other types of loans, such as FHA and VA……there is also mortgage insurance that will allow qualified borrowers to get conforming loans up to 90% of value.

There are plenty of buyers and inventory continues to shrink in the under $750,000 price point in the Bay Area…..since there is a limited supply of above million dollar priced homes on the market sellers are well advised to price to the market and do all recommended pre listing improvements plus staging.  Homes that are presented to sell  at an attractive price bring in buyers and multiple offers are being seen even in the higher price ranges.

We are seeing general market improvement every week….if you have questions about whether to buy, sell or refinance and are in the San Francisco Bay area….get in touch with me by phone at 650 325 7877 or email me at russ@bayareateam.com.You can search for Bank owned and short sale homes listed in the multiple listing service in the bay area by visiting www.allbayareabankowned.com .  My home loan website is www.bayareateamhomeloans.com.

            The Times..... They are a Changin'

    Watch Video or read below

It doesn’t seem like that long ago that the nightly news was showing us pictures of foreclosure buses in Las Vegas and the central valley of California.  For a while there it seemed that house after house had a for sale sign.  If you've followed my blogs, you will see a common thread…I’ve been saying for months that if you are a serious buyer, whether it be a home for you and your family or an investment property, the first few month of this year has been ripe with buying opportunities.  Really, think about it.... low rates, motivated sellers, high inventory and tax credits....and, on top that for homeowners with loans less than $729,750 in the Bay Area, it has been a great time to refinance.

But, and as I mentioned last week, the times....well they are a  changing.  I could give you a list of whys and wherefores, however, truthfully, right now I am focused on helping buyers buy (and negotiate there way through multiple offers) and homeowners refinance. 

You see, as I pointed out in my last blog, the number of sales are increasing monthly, inventory is falling dramatically, leading to shorter time on market , and, believe it or not multiple offers are becoming prevalent....that’s right multiple offers are no longer the exception in the under $750,000 price range.

Two quick stories.  I know an investor group that is buying homes in central valley communities, rehabbing them and flipping them  60 to 90 days. They’ve put half a dozen homes on the market in various valley communities in the past 45 days and all have sold for over asking  in a matter of days with multiple offers.

I’ve been working with an investor client who is looking for a good peninsula investment home. He mentioned (after we lost out in a multiple offer situation) that it looks like the window of opportunity is closing…and he makes a good point, closing but not closed.  If you are still sitting on the fence and are serious, I kid you not, this is really happening.

For some reason this is not the topic of the day for the media.  If you or someone you know really wants to buy a home in the San Francisco Bay Area call me or your agent today....if you really want to refinance your home loan in the Bay Area, talk to your loan consultant or get in touch with me before rates go up. If your on the "fence" it's time to get off! 

Remember, you can search for Bank Owned and Short Sales at www.AllBayAreaBankOwned.com

All homes for sale can be seen here: www.AllBayAreaHomesForSale.com

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here

         Are You Waiting for the Market to Bottom?...Read on

A few weeks ago I wrote that there had been noticeable shift in market indicators.  Not only were we and our fellow agents seeing the changes take place, we were beginning to see some housing data supporting increased market activity.

The data indicators to keep an eye on,  are supply and demand, days on market and number of pending and closed sales.

Reduction in available inventory is a sure sign of an improving market.  Between  five and seven months supply of homes is considered a market in balance.

Here are the April 2009 results for Four Bay Area Counties:

     Months of Housing Inventory Santa Clara County

Months of Housing Inventory Alameda County

                      Months of Housing Inventory Contra Costa County                            

As the market shifts from one of oversupply to a balanced market, the number of sales increases.  An increase in the number of pending sales or homes under contract indicates a market shift. April 2009 vs April 2008 below.

Pending Sales/Under Contract San Mateo County

Pending Sales/Under Contract Alameda County

Pending Sales/Under Contract Contra Costa County

Days on Market Alameda County

Days on Market Contra CostaCounty

When a market changes from one of oversupply to one in balance, the number of sales increases. April 2008 through April 2009.

Home Sales San Mateo County

Home Sales Santa Clara County

Home Sales Alameda County

 Home Sales Contra Costa County

Get your own FREE Customized Market Metrics Report. While this information above is at the county level, with our new Market Metrics Research Tool we can provide this information and more for any city,  neighborhood or zip, not only in the Bay Area but most of northern California. We are happy to provide your own Customized Market Metrics Report by request.  This information is available down to individual neighborhood statistics and can be further broken down by a number of criteria such as price range, square footage and room count. Simply email me at russ@bayareateam.com with your specific request or questions.

If you or someone you know has been talking about waiting until the market bottoms…it could be that your wait is over…take advantage of once in a lifetime tax credit incentives, low prices, motivated sellers and  record settting interest rates and make this your moment of opportunity.

Remember, you can search for Bank Owned and Short Sales at www.AllBayAreaBankOwned.com

All homes for sale can be seen here: www.AllBayAreaHomesForSale.com

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communites of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

The process is quite simple, just go to www.allbayareabankowned.com.  The default page will open.....simply click the first link in the left sidebar, REO Listings. On the page that opens, input the city or zip of the area you are interested in. If you are looking for Bank Owned and Short Sales in a specific neighborhood you can draw an area or neighborhood on the map.  Click  GO and you will see a list of all the active bank owned and short sale homes for sale in the area you selected.  You can change the search criteria.  If you want to see all the active listings in the city or neighborhood you are interested in, simply change the Listing  Type to all properties.

Here are a few tips gained from my years of experience in mortgage lending and real estate that I would like share with you….

First a brief description of "Short Sale" and "Bank Owned"…a Short Sale is a home that, if sold for the listing price or less, will not net enough money to pay off the loan or loans.  The homeowner may be current or in default.  If the owner is in default, the foreclosure process may or may not have started.  Any contact to purchase a short sale listing must be agreed to by both the seller and the lender or lenders.  This is where a short sale becomes complex and time consuming…Before you get serious about looking at short sales, have an in depth discussion with your real estate agent..there are many caveats and the negotiating process from start to close can easily take 60 to 120 days.  If you are in a hurry, a short sale is not for you.

Bank Owned properties are also referred to as REO’s, which  is real estate jargon for “real estate owned”.  Here a few of the important considerations:

While there will be a listing agent, that agent is the gate keeper to either the lenders mitigation specialist, or, as is often the case, a professional loss mitigation management company hired by the lender.  The listing agent will know the process and one thing you can count on…if the buyer and agents don’t follow the process, the sale will never happen. Be prepared to see a lender prepared addendum that will outline the requirements of the lender/seller.  There is very little negotiating room ….the intent is to outline the process and protect the bank…as the buyer, you will most likely have to live with most if not all of the terms in the addendum…it is wise to have your agent obtain a copy if possible  before you write your offer…if you don’t want to live with the terms of the addendum, the bank won’t care…they’ll move on to the next buyer in line… ..Keep in mind, while this may be the house of your dreams it is only another file on the lenders representatives desk.  There will seldom be disclosures or reports….the seller/lender never lived in the home and is exempt from most of the usual disclosure requirements.  Be sure to cover this with your agent...As the buyer, you can plan on ordering and paying for all reports needed to determine the condition of the home.

And speaking of condition, another cavaet, Short Sales and Bank Owned properties are sure signs of financial stress…expect the home to be in poor showing condition….in most cases, you will have to use your imagination!.....

I am available to answer your questions and guide you  if you are interested in Short Sales and Bank Owned homes if the San Francisco Bay Area. To search all active San Francisco Bay Area (and most of northern California) homes for sale visit www.AllBayAreaHomesForSale.com.

I don’t know if we are there yet, but what I do know is that, just like on a road trip, there are signs along the way....here are a few signs I have seen lately:

1.      1.The California Association of Realtors® Unsold Inventory Index stood at 6.5 months in February, compared with 15.3 months in February 2008.  A normal market is a six- to seven-month supply of homes.  California’s unsold home inventory is now below the rest of the nation, where there’s a 9.7 month supply of homes on the market. In California, the median number of days it took to sell a home was 51.5 days compared with 69.3 days a year ago. This is a clear indicator of a market becoming more in balance.

2.The Federal Housing Finance Agency Home Price Index has  registered two consecutive months of Increase.  .An increase in the housing price index during February marks the first time it has risen two consecutive months since early 2007. The HPI that tracks Fannie Mae and Freddie Mac purchase mortgage transactions rose 0.7% in February and 1% in January. It last saw two consecutive months of increases in March and April of 2007. Prices in the Pacific Coast states rose 3.8% in February where a large proportion of sales involve foreclosed properties and short sales, particularly in California. 

The FHFA also has a home price indicator available...here is the link:    FHFA Price Indicator .

3. According to the National Mortgage News, Freddie Mac recently reported fixed rates at or near record lows throughout the country.  The survey covers conventional, conforming loans.  As i've mentioned several times, qualified homeowners are taking advantage of rates at and below 5%.
4. The San Jose Mercury asked in a recent headline, Is Silicon Valley's Housing Market 'Leveling Off'?   No one knows for sure, but figures released Thursday provide some tantalizing clues.   More Silicon Valley homes changed hands last month than in March 2008; it was the fourth consecutive month the county's sales have outpaced their prior-year levels. And after months of big declines, the median price of the houses sold hovered in the low $400,000's for a third month in a row in Santa Clara County. 
"What we are seeing is signs you would expect to see prior to prices leveling off," said Andrew LePage of MDA DataQuick, a real estate information firm that released March Bay Area home sales figures Thursday. 

5.  Even President Obama and Federal Reserve Chief, Bernanke cited economic progress in recent appearances.   President Obama on Tuesday pointed to signs that the recession is ebbing as a result of a stronger real estate market, recapitalized banks, and auto industry rescue measures.
Federal Reserve Chair Ben Bernanke also referred to the latest data on home sales, home building and consumer spending as evidence that the economy is improving.
"A leveling out of economic activity is the first step toward recovery," Bernanke said in prepared remarks.
"It seems that the first quarter will be the worst and things will start to get better," concluded analyst David Cohen at Action Economics.

What we are seeing in the market is much more activity from first time buyers.  The word is getting out.  For well priced homes in the lower price ranges, multiple offers are becoming more common.

1. Interest Rates - Bankrate recently reported, that mortgage rates are at their lowest point ever in their survey taking history. They have been conducting rate surveys since September 1985.  The national average for a 30 year fixed rate mortgage is very near 5%.  This is great news for buyers.  If you read or listen to the news, you will see that refinancing has increased dramatically.  Why do you think this is?  As I’ve mentioned, I am working on several refinances and have locked rates under 5%. Any further rate drops are likely to be minimal.  One thing that you can count on, when rates begin to rise, they go up much faster then they go down.  The current interest rate alone, is a really good reason to consider purchasing a home. 
2. Housing Prices -  Everyone knows that housing prices are down in most regions.  Do you think prices are going to continue to decline?  Perhaps, but most of the decrease is now reflected in today’s prices.  Two good reasons to buy.

3. Seller Motivation -  Due to the current market conditions, it is pretty easy to identify motivated sellers.  In many instances, you can easily find a motivated seller by looking at the property description.  Look for keywords such as: "motivated seller," "make an offer," or "must sell."  Be sure your agent is on the lookout for consistent price reductions. If you like the property and the seller is motivated, then you should seriously consider making an offer.  If you don't, chances are someone else will and you will have missed your opportunity.  Don't let  happen to you.
4. Tax Advantages -  Current tax law allows homeowners to deduct interest paid on mortgages and the amount of paid property taxes. If you are paying rent, you do not qualify for these deductions.  The federal and California State governments are also offering incentives.  The most widely publicized are the Federal $8,000.00 first time home buyer tax credit and the California $10,000 tax credit for a new home purchase. This makes a great opportunity even more incredible.  You can find more information at our resource center, www.bayareateamonline.com.
5. Timing - You must have heard the expression "buy low and sell high," right? It might even be your mantra. As with any investment, it is ideal to purchase when prices are low rather than at their peak.  However, if you are waiting to purchase a home because you believe prices will continue to drop, you will likely miss out of an ideal opportunity.  The time to "buy low" is right now.  Once everyone comes to the realization that prices may already be at their lowest point, then you can rest assured that buyers will jump in and start buying.  It might not be a mad rush anytime soon, but the best deals will be the first target. 

              Put our Rent vs Buy Calculators to Work for You

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

Over the past few weeks I’ve shared many exciting incentives that are now in place for buyers….some of these incentives, such as the Federal Tax Credit of up to $8,000, the California Associations of Realtors® Home Buyer Protection Program that protects buyers for up to six months in the event of a job loss, are for first time buyers.  Other incentives, which are open to all buyers, include Fannie Mae’s HomePath program which offers special financing with as little as 3% down and California’s Tax Credit of up to $10,000 which is open to all buyers buying a newly constructed home. Of course the new conforming loan limits of up to $729,750 in high cost areas is for all buyers and homeowners wishing to refinance.

I even put together a blog post that illustrated the ways the California Tax Credit of up to $10,000 and the Federal Tax Credit of up to $8,000 can be combined.  Add to all that the available housing inventory, low prices and extremely low rates and we have what might be called a “Perfect Storm” for the home buyer.

What is missing from all this is the first question that needs to be answered by anyone considering a home purchase….Why should I buy a home?

Here are my simple answers to that one….

1.  We all have to live somewhere. 

2.  Whether it’s rent or buy, we have to pay someone.

3.  As humans, we seem to have a built in desire to want to improve our lives.

That “improving our lives” desire means different things to different people….it may be more room for a growing family, better school opportunities, closer to work and recreation, a financial investment, a sense of accomplishment and pride, or simply a place to call your own.

The first two above can be clarified by a simple calculation….the answer to “since I have to live somewhere and pay someone, what are the cost benefits to either renting or buying?”  And I can help you with that…I’ve added two Rent vs Buy calculators to my homepage and blog site….one is by Freddie Mac the other calculator is by Ginnie Mae. If you decide that buying in the San Francisco Bay Area makes sense for you, I can assist you  with locating and financing your home.  If renting seems like the right answer and you want to live on the Peninsula I can refer you to the best rental agent I know….

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula communites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

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A new fund established by the California Association of Realtors® gives first time buyers one more reason to make this the year to buy a home.  Not only are interest rates incredibly low, after all, I’ve recently locked several loans at 5% and under for refinance clients.  These rates are creating the opportunity to have a loan you may never want to refinance. Then there is the Federal Tax Credit up to $8000, plus the California Tax Credit of up to $10,000 . Don't forget Fannie Maes HomePath® Program which offers Fannie Mae foreclosures with as little as 3% down.  AND now the California Association of Realtors® is offering mortgage payment protection in case of income loss for first time buyers.

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit.  C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that thousands of families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:

• Be a first-time home buyer – someone who has not owned a home in the last three years
• Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
• Use a California REALTOR® in the transaction
• Purchase the property in California
• Be employed as a W-2 employee

To apply for the program, home buyers simply request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula communites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

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Today I would like to share some important information about an exciting program that has been introduced by FannieMae.  The program has incredible features and benefits, whether you are buying your first home, that second home you’ve dreamed about or an investment property.

You will need to know how to find out where to find eligible Fannie Mae owned properties and about the attractive financing offered by Fannie Mae with the HomePath** program……

First, let’s cover loan and program highlights.  Keep in mind that standard underwriting guidelines have been expanded..some of the features and benefits include:
• No appraisal required. Value is based on purchase price.

• Low credit score requirements. More flexible credit underwriting.

• Available to both owner-occupiers (primary and second homes) and investors.

• Up to 6% may be available as a credit from the seller.

• No mortgage insurance required.**

• As little as 3% down for primary residences, and 10% down for second homes and investment properties.

• Available in “High Cost” areas up to $729,950 with 10% down for primary and second homes.

• Up to 10 financed properties possible.

The next question is how do you find the properties?  Of course your real estate agent can help you and Fannie Mae has a website devoted to this program.  You can find eligible properties at www.homepath.com .  Remember, this is a new program that is in the process of being rolled out and not all of foreclosures Fannie Mae owns are eligible, although more homes are being added all the time.  Because the program is new, not all real estate agents know about HomePath** and very few lenders have been approved to participate.

Fortunately, if you are in the San Francisco Bay Area, I can help you with the purchase and the financing.

**HomePath is a registered trademark of Fannie Mae. Geographic, unit and other restrictions may apply. HomePath Mortgage is specifically for Borrowers Purchasing a Fannie Mae-Owned Property. Ask about cost details on loans without mortgage insurance.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula communites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

Click Watch Video or read text below.

Today I’ve got something to smile about……and you might wonder why……after all, the real estate and mortgage business are less than robust lately.. …I’ll share a real life story….

For months I have made a point in my blogs, videos and enewletters to let people know that conforming rates could get into the mid to high four percent range.  Several clients have seen the wisdom in being prepared and have submitted a loan application and supporting documentation.  Another reason to be prepared is that with low rates, a new challenge has developed…..lenders are now swamped with business so it can take up to 30 days to get a loan fully underwritten, although an automated approval is available in hours.  Rates are being artificially influenced by the Fed…..and rates change many times during the day….…I have a rate alert service that sends me a text message when there are market indicators that may influence rates up or down….needless to say, these alerts get my attention…

What has me smiling is that the rate I locked for a client on Thursday was 4.75% on a 30 year loan….what is making the client smile is that this will save her $40,000 over the next 15 years…thats right, $40,000 after closing costs!!!  I had a window of about three hours to lock that rate….and now rates have moved back to about 5%...

Think of it this way, the feds activities in the mortgage market are acting like a stimulas package for people on Main Street, people like you who aren’t in Washington looking for a bailout….

To get the lowest rates, credit scores need to be above 740 and income easily documented.  These low rates also require 20% plus equity in your home at today’s values and the loan amount must be less than $729,750…Clearly not all are able to meet these criteria, however, for those that do this is an opportunity that shouldn’t be overlooked.

There are added benefits if your loan is owned by Fannie Mae or Freddie Mac.  They both offer a streamlined refinance program….if you want to find out if FannieMae or FreddieMac own your loan, take a look at the links in the BlogPost below this one...

Here’s how you get started….contact a loan officer of your choice and discuss your current loan terms and financial situation...if a refinance is makes sense, set a target rate and closing costs structure that make’s the most  sense for you…. At that point you will need to complete your loan application and and supply supporting documentation…your loan officer will take it from there.

I don’t know how low rates will go or how long  the fed will intervene, however what I do know is that if you aren’t prepared when the moment comes, that opportunity will gone.  Don’t Forget….take a look at the links at my previous Blog Post for the links to Fannie and Freddie to find out if your loan is owned by FannieMae or Freddie Mac.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula communites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Does FannieMae or FreddieMac Own Your Mortgage Loan

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

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Reasons why you might want to know if FannieMae and FreddieMac owns you mortgage loan:

A)              a) You are curious

B)             b)You want to see if you qualify for a “Streamline” refinance

       c)    You are experiencing difficulty or anticipate difficulty with making your mortgage payment

To find out if FannieMae owns your loan click Does FannieMae Own My Loan.

For FreddieMac click Does FreddieMac Own My Loan(if link doesn't work, paste this url into your browser https://ww3.freddiemac.com/corporate/) Complete the form and click “Submit”.  A confirmation will be emailed to you.

Experienced loan officers are updated with the latest mortgage information and how it will help their clients.  If you live in the San Francisco Bay Area, give Russ Boyd a call or email russ@bayareateam.com, otherwise, call your favorite loan officer and find out how you can benefit. 

           Click here for video or read "how to" below 

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

Combine the Federal $8,000 Tax Credit and the California $10,000 Tax Credit

1.      Buy a California home as a primary residence.

2.      Buy a home with a purchase price of $200,000 or more.

a.      California rebate is .05% x purchase price to a maximum rebate of $10,000.

b.      Federal rebate is 10% of the purchase price up to maximum rebate of $8,000.

3.      Buy new construction.

a.      California credit requires new construction purchase, federal does not.

4.      Live in home three years or more.

a.      Two years for California credit, three years for Federal credit.

5.      For maximum credit, income must be $75,000 or less for single filers and $150,000 for married filers. Federal rebate phases out above these income thresholds. No limit on income for California Tax Credit.

6.      Federal Tax Credit requires buyer to be a first time home buyer, generally defined as not having owned a home used as a primary residence in the past three years.  (can have owned a rental or second home) No such requirement for California program.

7.      Complete home purchase between January 1, 2009 and December 1, 2009.

a.      California dates are March 1, 2009 to March 1, 2010.

8.      The Federal credit is available the year you file or it can be split overtax years 2008 and 2009.  The California credit is credited equally over three years.

 Meet these requirements and you may qualify for up to

 $10,000 in Federal Tax Credits and

$8,000 in California Tax Credits. 

This information is a tutorial for general informational purposes. It is not intended to provide all the details of the programs.  You are advised to see tax and legal advice to determine how these laws will affect your personal circumstances.  A real estate agent can assist you with real estate related matters.  This is more complicated than it seems on the surface.

Russ Boyd and his team professionally assist buyers and sellers in the Peninsula comunites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the Californaia Department of Real Estate, 01264240.

    Take Advanatge of California's New $10,000 Tax Credit

          Click here for video or read highlights below 

Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

Q&A California's $10,000 Tax Credit for Homebuyers

How much time do I have?              

You must close escrow between March 1, 2009 and March 1, 2010.

Do I have to repay the tax credit?   

The California Homebuyer TAx Credit is not a loan and if the home remains your primary residence for 2-years, you do not have to pay any portion of the tax credit back.

Can I buy any home?     

The tax credit is for new construction homes only. The construction of a new home generates more tax revenues than the $10,000 tax credit will cost, so the credit is limited to the purchase of newly constructed homes. You will not qualify for the state tax credit if you buy an existing home.

How is the credit calculated?   

The tax credit is good for 5% of the home’s price or $10,000, whichever is less.

Examples: (price of home x .05)

• If you purchase a new home that costs $150,000, your tax credit will be $7,500.
• If you purchase a new home that costs $200,000, your tax credit will be $10,000.
• If you purchase a new home that costs $450,000, your tax credit will be $10,000.

Is the entire credit used the first year?       

Home buyers will receive the tax credit, in equal amounts, over 3-years.

Examples: (Tax Credit / 3)

• If your tax credit is $7,500, you will receive a tax credit of $2,500 each year for three years.
• If your tax credit is $10,000, you will receive a tax credit of $3,333.33 each year for three years.

Do I have to be a first time home buyer?

Unlike the $8,000 federal tax credit, the California state tax credit is not limited to first-time home buyers.

Are there income limits like the federal tax credit?

There are no maximum income limitations so any buyer purchasing a previously unoccupied home can qualify for the tax credit.

Do I have to live in the home I buy using the credit?

The tax credit only applies if the purchased home is your primary residence.

Do I have to make a minimum down payment to qualify?

There is no down payment requirement to receive the $10,000 tax credit.

Can the California Tax Credit and the Federal Tax Credit be used on the same purchase? 

The $10,000 state tax credit can be used along with the $8,000 Federal Tax Credit for home buyers.  If you’re a first-time home buyer, and you purchase a new home in California that costs more than $200,000, you may qualify for as much as $18,000 in tax credits.

Is there a limit for how much the state has allocated for the tax credit? 

Yes, the state has allocated $100 million, so, if all buyers use the the maximum credit of $10,000, the first 10,000 home buyers qualify.

This is intended to be a tutorial. It is not all inclusive nor is it tax or legal advice. You are advised to seek tax and legal advice for your specific financial circumstances.

             Your FREE Copy of Russ Boyd's Book

                             Let's Make a Deal,

         The Insiders Guide to Buying and Selling Real Estate 

Click here for video or view chapter headings below

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For your pdf copy just send an email to russ@bayareateam.com.

Table of Contents

Chapter 1: Getting Ready for Home Ownership…1

           Why Buy a Home…2

             How to Shop for a Home…3

             Understanding the Loan Process…6

             Understand the Home Buying Process…10

             Closing…20

Chapter 2: What Every Buyer Should Know…26

Buyers – A Word of Advice…26

Buyers - Limit the Deadline to Your Advantage…26

Buyers - Use Contingencies Wisely…30

Buyers - Demand Inspections and Disclosures…36

Buyers - Negotiating for Your Interest…39

Buyers - Buying a Brand New Home…42

Buyers - Choosing a Lender…45

Buyers - Avoid Hidden Buyer's Fees…47

Chapter 3: What Every Seller Should Know….52

Sellers – A Word of Advice….52

Sellers - What is the Real Offer ?…52

Sellers - Rejecting the Buyer's First Offer…56

Sellers - Counter-Offer Strategies…60

Sellers – Handling Buyer’s Contingencies…64

Sellers - Sell Fast and for More $…70

Sellers - Getting the Best Price…74

Sellers - Property Inspection…82

Chapter 4: Tips for Consumers… 79

The Importance of Inspections…79

Twenty Safety Items for Your Home…84

What to Keep in a Disaster Kit…87

How to Avoid Calling a Repairman…90

Russ Boyd and his team professionally assist buyers and sellers in the Peninsula comunites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties.

       How to be a Successful Seller in a Buyers Market

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Market Update and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Google and Yahoo Video by TubeMogul.com . How To videos can be seen at Howcast.com . All Russ Boyd's videos are archived here .

1.  Be committed.  In a buyer's market sellers are competing with distressed listings such as, short sales, bank owned properties (REO’s), and foreclosures.  This is not the market for sellers who want to 'test the waters'.  The market will determine the price.  Money is not the primary motivator to the serious seller.

2.  The price must be right.  Check out the value estimator at www.zillow.com.  Hire an agent that you trust.  Be sure you understand current market conditions. Your agent should focus on both current listing that will be your competition and the most recent sales comparables.  Sellers seldom see their property objectively nor have they seen the competing properties the buyers are seeing.

3.  Staging is a must.  Listen to your agents suggestions. Agents know the importance of staging and presentation.  Many agents have a stager on their team as we do.  If not, consider hiring a professional stager. Ask your agent to show you competing homes.  This will give you a sense of how your home stacks up against other homes buyers are seeing.

4.  Your home must be available.  Lock boxes are electronic and enable the listing agent to see who is showing the property.  Easy access means more showings. More showings results in a quicker sale.

5.  Tell the world.  Your agent will want to place a prominent for sign with marketing material and contact information available.  The more people that know your home is for sale the better. Neighbors and others that drive by frequently might even have a friend or relative who they would want as a new neighbor.

6.  Listen to the feedback.  If one buyer says something, others are probably thinking the same thing.  If several similar comments are made, work with your agent to do something about the problem. 

7.  Be flexible.  No showings means the price is too high.  No offers means the price is too high.  In a flat or declining market you must stay ahead of the price curve.  Set the price right in the first place and you won’t have to chase the market leader.  Set a price that makes your home the market leader.

8.  Take a deep breath…and then another.  Selling, buying, and moving are stressful events.  Ask them how you can help get the house sold.  Ask them what they would do if you were their relative, or it was their home.  Ask this question frequently.

9.  Time is of the essence.  This means sooner is better than later.  In a buyer’s market, time is not your friend. There is a real estate adage that states, “the first offer is the best offer.” This is especially true in a buyer’s market.  Don’t let a “low ball” offer “offend” you and short circuit your goal.  Remember, the objective to get your home sold.  Negotiation should be your agent’s forte’.  Let him or her do their job.  

10.  Patience is a virtue.  Your agent will discuss the average days on the market in your neighborhood with you.  If your goal is to sell your home sooner than the average days on the market use the tools of price and presentation.

Russ Boyd and his team professionally assist buyers and sellers in the Peninsula comunites of the San Francisco Bay Area. They have served clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra Costa counties.