Buyers in Northern California!

Buyers! Please! Please!

For all you buyers in Northern Calfornia who want to purchase a Bank Owned or Short Sale property:

1. Please do not believe what you hear or read from the Media.

2. Please listen to the advice of your Realtor.

3. Please believe us when we say the lenders are not willing to give away the properties.

4. Please understand that that the lenders are taking anywhere from 30 to 50 per cent loss on the home.

5. Please understand for the most part the lenders will not take less than listed price.

6. Please understand that when the property is in great condition and in a good location that the there will be multiple offers.

7. Please understand that when there are multiple offers, you need to offer more than listed price.

8. Please understand that real estate in the long run has always gone up in value.

9. Please understand that interest rates will not remain low forever and now is the right time to buy.

10. AND finally, Please understand that there are not any deals! The deals are here right now! Homes are ON SALE right now!!!

Jean Powers, CRS
Broker-Associate
Windermere Welcome Home
Homes@JeanPowers.com

http://www.jeanpowers.net/
510.908.9002

Do You Know the Difference?

Buyers and Sellers! Do You Really Know the Difference?

In today’s San Francisco Bay Area market there are numerous properties for sale. I have been working with buyers and sellers in this challenging market. For the most part, prices ranging from $200,000 to $400,000 are being sold as Short Sale or REO properties. There are some being sold on Auction websites. Very few homes in the above price range are being sold by homeowners as what we call a Regular sale. Below are a summarized definition of these types of transactions.

Regular Sale - A sale where the seller has equity in the property. The buyer and seller will the
negotiate price and terms of the sale. The seller is required to provide Disclosures according
to California Law and statute. The transactions in this type of sale are generally much easier to come together as there are timelines in which the seller needs to abide by in the transaction. The seller is motivated to sell and move on in his/her life.

Short Sale - A short sale is the sale of real property where the fair market sale price is less than the loan(s) on the property. A short sale means the seller's lender is accepting a less than the existing loanson the property. Just because a property is listed with short “sale terms” does not mean the lenderwill accept your offer. These properties must be purchased “As Is” without any repairs or warranties. Some are in need of repair.The lender is already taking a 30% to 50% loss on the property. This is why a majority of the time, they will NOT negotiate on the price. In fact, in most cases in our area, there are multiple offers on most properties that are in good condition and the price will higher than the listed price.

If the property in encumbered with more than one loan, there could be a problem. All of the lenders must agree to a short sale or a contract can never be ratified. There is no guarantee the lender will
approve of the sale. My buyers have waited over 4 months for the lender to respond to their offer. We are still waiting for an acceptance! I have heard of circumstances where it took the lender over 9 months to respond and did not accept the offer. Statistics show over the last six months that only 20 % of these sales have closed. The homeowner should consult their CPA or Tax Attorney before entering into a Short Sale agreement.

REO/Bank Owned Property - REO is an acronym for a real estate owned property that has been
foreclosed on or repossessed by banks or lenders. These properties are also sold in “As Is” condition without any repairs or warranties. The seller (lender) is exempt by law from completing any disclosures. The agents involved in the transaction are not exempt from completing their visual inspection as per California’s disclosure laws.

Prior to these properties going on the market, the lender has had an agent submit a BPO (Broker’s Price Opinion). So, just as in a short sale transaction, the lender is already taking a 30% to 50% loss on the property. This is why a majority of the time, they will NOT negotiate on the price. In fact, in most cases in my area, there are multiple offers on most properties that are in good condition and the price will higher than the listed price. Again, some properties are in need of repair. The process for bank approval can be anywhere from 3 – 10 days.

Pre-Foreclosure Property - A property where the homeowner has fallen behind in their payments or when a Notice of Default (NOD) has been filed against the property by the lender. May not have much flexibility in negotiating. These properties may be regular sales or potential Short Sales. The homeowner should consult their CPA or Tax Attorney before entering into a Short Sale agreement.

Online Auctions - Recently I have found that some of the REOs that have not sold were placed on an online auction website. Do not be fooled in thinking that you can purchase these properties lower than what they were listed for by an agency. The agency still has the listing. The website starts with a minimum bid and the buyer is made to believe that they can purchase this property for this amount if there are no other bidders. Not so, there is a reserve amount that the lender expects to get for the property. This price is usually what the real estate agency has listed the property for in the multiple listing service. There is a 5–10% fee paid to the auction house in addition to the final bid price. These properties are all “As Is” sales without inspections or warranties.

Call me for more information and help!

Tomb of the Unknown Soldier

Today I received an email from a friend on the Jeopardy question in which all 3 contestants incorrectly answered regarding the men who guard the Tomb of the Unknown Soldier. I decided to research the information on the guards as it was quite interesting to me. Not only did I find the questions and answers on these fabulous men but I also found a YouTube piece on the subject which got to my heart! I hope you enjoy this information. I did!!

Do You Know About the Federal Housing Bill?

How Does Federal Housing Bill Affect You?

On June 26, 2008, the Senate passed a housing bill that will offer up to $300 billion in loans for troubled hsomeowners and establish a government rescue plan for mortgage finance giants Fannie Mae and Freddie Mac.

The President will roll over once again - but this time to the benefit of the economy and the consumer. At first, Bush said he would veto the bill, but after consulting with his "advisers" he will concede this coming week and sign the bill into law.
The bill will take effect October 1st, 2008.

What does all of this mean to you, the consumer?

For Distressed Home Owners
Some folks may be able to cancel their old mortgages with high interest rates and replace them with new fixed-rate loans lasting at least 30 years...with some caveats:

1) New loans would be no more than 90 percent of what the borrower's property is worth currently;

2) Loan must have originated on or before January 1, 2008;

3) The loan must be on the borrower's primary residence;

4) Income verification is required, which might be an issue for subprime borrowers who did not have to disclose their income to receive their current loan;5) Your housing payment has to be at least 31 percent of your monthly household income;

6) You cannot take out a home equity loan for at least five years;

7) Appreciation made on the home within five years goes back to the government;

8) Fifty percent of any appreciation after five years must go to the government.

For Home Buyers

1) Conforming loan limits increased permanently to $625,000 (great for California!)

2) The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500 (The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments. )

3) The bill eliminates a program that has allowed sellers to provide down payment assistance.

For Veterans

1) Lenders will have to wait nine months, not 90 days, before beginning foreclosure proceeding on homes owned by someone returning from the military.

2) Lenders will have to wait a year before raising interest rates on a mortgage held by someone returning from military service.

I will continue to learn more about this legislation. If you have any questions, or if I can help you in any way, please call or e-mail me...I am here to help!

Purchase in a Totally Green Community!!

“Yes, the First Totally Green Community
In The United States,
Where? Of Course In California”
4/22/2008

CastleView Estates, the leader in innovation for the first certified Environmentally Friendly community in the State of California announces the opening of its Tract 7338 near Pleasanton, California. A unique gated 52 acre Ag and residential community in Alameda County, that borders Pleasanton, California, the CastleView Estates community, although nestled next to Pleasanton, is the first in California to provide a completely environmentally secured gated community with full recycling of its energy use. We have established within the County of Alameda our own Sewer Water District. Being our own Sewer Water and Power District, we pump our own water, purify it and then we recycle it back through our waste system it grows grapes and alfalfa for crops and for ostrich/beef meat; this includes wine grapes. The advanced engineered treatment system for the overflow affluent of the sewer’s disposal is able to clarify it up to 97% making it virtually drinkable. These nutrients go into growing the crops; the system is monitored by computer systems, and is serviceable on an annual basis for a very low cost, making it basically maintenance free, but very high reliability. Power, provided by windmills and solar, helps to offset the costs of our water usage, pumping costs, and maintenance for the association. All of which is under a non-profit organization registered within the State of California for the purpose of providing for its members and residences.

Being the first to totally go green in a community which recycles all of its energy needs and is completely self-contained, it’s such a unique concept in California it took years of planning by the CastleView Estates leaders. The uniqueness of this project is such that very high end homes are built GREEN with certification from the Department of Energy with the Energy Smart label. These homes are constructed from Green materials being environmentally friendly at a cost below the typical market. Therefore, buying scenic view lots and building a home well below the typical high end market by 20-30%. Homes are nestled and hidden from others atop the hills over looking the entire community, not utilizing precious Ag land from below. Secured access in the first gated community in years in this particular area, allows full security for all of its residences yet with the Ag Bent allows them to not only have high end homes, but also participate in the Ag should they want a horse or other type of animal in their particular area, especially given lots up to 2.5 acres.

Homes can be pre-fabricated in a factory environment by Palm Harbor, the Nation’s leader in energy green supplied homes and have an AARP oversight. Unique on-site building allows the construction of very high end expensive homes way below market price. These homes can be constructed in less than nine months and be ready for move-in. Red tape and burocratic delays are minimal with far less middle men involved in this construction. Given the economic change in the housing market, this is an opportunity for those to come in at a lower price which a much nicer home in an environment that is friendly for our community as well as the State of California. We are proud to participate and to introduce this first pioneering concept, proving reality.

Waste, Waste, What are You Doing?

We live in a society that produces so much excess waste. Some of it is garbage and other is recycle. Our association, my office, family and friends are attempting to go green. In my research here is what I found and I thought it was work passing along.

Garbage........ Americans produce more and more of it every year, when we need to be producing less. Even the most waste-conscious among us can feel overwhelmed by the amount of household waste that goes beyond what municipal recyclers and compost bins can handle. That's why our editors spent the summer of 2007 investigating the state of waste management in our country, putting this list together for you, explaining how we can get serious about the three R's

- reducing, reusing, and recycling - and divert more waste away from landfills.

1. Appliances: Goodwill accepts working appliances, www.goodwill.org, or you can contact the Steel Recycling Institute to recycle them. 800/YES-1-CAN, http://www.recycle-steel.org/.

2. Batteries: Rechargeables and single-use: Battery Solutions, 734/467-9110, http://www.batteryrecycling.com/.

3. Cardboard boxes: Contact local nonprofits and women's shelters to see if they Boxcan use them. Or, offer up used cardboard boxes at your local Freecycle.org listserv or on Craigslist.org for others who may need them for moving or storage. If your workplace collects at least 100 boxes or more each month, UsedCardboardBoxes.com accepts them for resale.

4. CDs/DVDs/Game Disks: Send scratched music or computer CDs, DVDs, and PlayStation or Nintendo video game disks to AuralTech for refinishing, and they'll work like new: 888/454-3223, www.auraltech.com <http://www.auraltech.com/> .

5. Clothes: Wearable clothes can go to your local Goodwill outlet or shelter. Shirts donate wearable women's business clothing to Dress for Success, which give then to low-income women as they search for jobs, 212-532-1922, www.dressforsuccess.org <http://www.dressforsuccess.org/> . Offer unwearable clothes and towels to loca l animal boarding and shelter facilities, which often use them as pet bedding. Consider holding a clothes swap at your office, school, faith congregation or community center. Swap clothes with friends and colleagues and save money on a new fall wardrobe and back-to-school clothes.

6. Compact fluorescent bulbs: Take them to your local IKEA store for recycling: http://www.ikea.com/.

7. Compostable bio-plastics: You probably won't be able to compost these in your home compost bin or pile. Find a municipal composter to take them to at http://www.findacomposter.com/.

8. Computers and electronics: Find the most responsible recyclers, local and national, at www.ban.org/pledge/Locations.html.

9. Exercise videos: Swap them with others at http://www.videofitness.com/.

10. Eyeglasses: Your local Lion's Club or eye care chain may collect these. Lenses Glassesare reground and given to people in need.

11. Foam packing: Your local pack-and-ship store will li kely accept foam peanuts for reuse. Or, call the Plastic Loose Fill Producers Council to find a drop-off site: 800/828-2214. For places to drop off foam blocks for recycling, contact the Alliance of Foam Packaging Recyclers, 410/451-8340, www.epspackaging.org/info.html

12. Ink/toner cartridges: Recycleplace.com pays $1/each.

13. Miscellaneous: Get your unwanted items into the hands of people who can use them. Offer them up on your local Freecycle.org or Craigslist.org listserv, or try giving them away at Throwplace.com or giving or selling them at iReuse.com. iReuse.com will also help you find a recycler, if possible, when your items have reached the end of their useful lifecycle.

14. Oil: Find Used Motor Oil Hotlines for each state: 202/682-8000, http://www.recycleoil.org./

15.Phones: Donate cell phones:

Collective Good will refurbish your phone and sell Cell phone it to someone in a developing country: 770/856-9021, www.collectivegood.com. Call to Protect reprograms cell phones to dial 911 and gives them to domestic violence victims: http://www.donateaphone.com/. Recycle single-line phones: Reclamere, 814/386-2927, http://www.reclamere.com/.

16. Sports equipment: Resell or trade it at your local Play It Again Sports outlet, 800/476-9249, http://www.playitagainsports.com/.

17. "Technotrash": Project KOPEG offers an e-waste recycling program that can help you raise funds for your organization. Use Project KOPEG to recycle iPods, MP3 players, cell phones and chargers, digital cameras, PDAs, palm pilots, and more. Also, easily recycle all of your CDs, jewel cases, DVDs, audio and video tapes, pagers, rechargeable and single-use batteries, PDAs, and ink/toner cartridges with GreenDisk's Technotrash program. For $30, GreenDisk will send you a cardboard box in which you can ship them up to 70 pounds of any of the above. Your fee covers the box as well as shipping and recycling fees. 800/305-GREENDISK, http://www.greendisk.com/.

18. Tennis shoes: Nike's Reuse-a-Shoe program turns old shoes into playground and athletic flooring. www.nikereuseashoe.com. One World Running will send still-wearable shoes to athletes in need in Africa, Latin America, and Haiti. http://www.oneworldrunning.com/.

19. Toothbrushes and razors: Buy a recycled plastic toothbrush or razor from ToothbrushRecycline, and the company will take it back to be recycled again into plastic lumber. Recycline products are made from used Stonyfield Farms' yogurt cups. 888/354-7296, http://www.recycline.com/.

20. Tyvek envelopes: Quantities less than 25: Send to Shirley Cimburke, Tyvek Recycling Specialist, 5401 Jefferson Davis Hwy., Spot 197, Room 231, Richmond, VA 23234. Quantities larger than 25, call 866/33-TYVEK.21. Stuff you just can't recycle: When practical, send such items back to the manufacturer and tell them they need to manufacture products that close the waste loop responsibly.

By the way what are you doing to go green?

Point-of-Sale Legislation Held in Committee

C.A.R. is OPPOSING AB 2678 (Núñez) which among other things, will require that ALL homes and commercial property in California have an energy audit at point-of-sale and that mandatory energy efficiency investments be made. AB 2678 was to have been voted on by the Assembly Appropriations committee last week but is now being held in that committee for at least a few days due to its potential cost. We are now expecting the bill to have a hearing some time before May 23rd.

ISSUE BACKGROUND
AB 2678 will require a state agency to set up a process to require point-of-sale energy efficiency audits that will cost up to $400 and ultimately will require point-of-sale energy efficiency retrofits that may cost THOUSANDS of dollars. While C.A.R. has no objection to increasing energy efficiency, AB 2678 will be both dangerous to the real estate market and grossly ineffective. Here's why AB 2678 is a bad idea:

-AB 2678 will hurt your business. Heaping costly requirements on all sales will slow every residential AND commercial transaction, further weakening the real estate market and the economy.

-Point-of-sale approaches take too long. Research shows that only 22% of the properties most in need of energy efficiency retrofits will actually be sold by 2020. AB 2678 will be grossly ineffective in achieving its goals.

-AB 2678 will hurt housing affordability. The mandatory audit and retrofit requirements ultimately created could add THOUSANDS of dollars to every transaction. And every $1,000 increase in the price of a home disqualifies 26,600 families from owning.

-Politicians want to make an end-run around you! They know REALTORS® will fiercely oppose point-of-sale mandates. By passing the buck to a state agency, they hope to make this proposal more acceptable to other legislators. But be forewarned: once the legislation is passed and the bureaucrats take charge, you will have NO SAY!!

For additional information, please contact DeAnn Kerr at deannk@car.org