bel marin keys real estate

Hello and welcome to Bel Marin Keys Real Estate – a site dedicated to keeping you up-to-date with real estate relevant matters in Bel Marin Keys.

Firstly, let us introduce ourselves. Both Yvonne and Nicole are Realtors^® with Pacific Union International/Christie’s Great Estates.

We have both lived in Marin for essentially all of our adult lives and in Bel Marin Keys for at least fourteen years. Yvonne has been a Realtor^® for twenty five years and Nicole has been involved as an investor in real estate and in sales for an equal period of time.

Both of us have a great wealth of experience dealing sensitively and effectively with people – abilities that make for a smooth and positive transaction.

With a dedication to professionalism we enjoy luxury marketing at all price levels supported by the up-to-date technology of a leading international company.

THE BUZZ

 The housing market continues to improve, increasing 8% to a seasonally adjusted annual rate of

4.98 million in February. According to Lawrence Yun of the National Association of Realtors, sales of existing homes increased 10.2% in February 2013 from February 2012. Sales of homes valued at over $500,000 are up over 20%.

Inventories are up too, increasing 10% from January. Still, inventory is 19% lower than a year ago.

Builders need to build 50% more homes to meet housing demands, but they are still facing stringent lending regulations that slow their progress.

There is a 4.7 month supply of homes for sale now. That number of months will rise because more inventory is coming onto the market. I referred to this last month as Shadow Inventory -

homeowners now feel they can sell their homes in a better market.

For buyers, interest rates remain low. Affordability remains historically favorable. More sellers are planning to repurchase. Real estate is a good investment. Let’s talk.

JUST ASK

Q: What’s the first thing a potential buyer looks for when entering a home?

A: Aside from the floor plan, size, location and upgrades, buyers almost invariably comment on the amount of light present during the daylight hours in a home. Abundant natural light is a necessity for most buyers.

To bring more light into dark spaces, consider installing an Energy Star-qualified skylight. You can also choose solar powered blinds for energy efficiency. Both the skylight and blinds are eligible for a 30% federal tax credit. The benefits of sunlight on mood are well-documented. You’ll enjoy your home more, even if you decide to stay put.

MY TOWN

In real estate, is bigger always better? In the 1950’s, the average house size in the U.S. was 983

square feet. That seems quite small by today’s standards. By 2011, the average house was 2,480

square feet. The size of our homes has grown three-fold. So has the size of the average family

grown too? Actually, in the 1950’s a home housed 3.37 people on average. By 2011, it housed about 2.7 people.

People want more spacious homes today. In fact, one recent study reports that in 75% of all homes, people can’t fit their car into the garage because the garage is filled with too much stuff. Is this a trend that will continue? Or is there a shift in the air where people are trying to simplify their lives?

Are we possessed by our possessions? I would love to hear your thoughts on this.

FYI

Simplifying is not as easy as it sounds. It seems everyone wants to get organized, but no one knows quite how to do it.

 Do you start projects and then get overwhelmed? The secret may be to take the project in

spurts. For example, when cleaning out your closet, choose 10 things to give away and then

stop for the day. Or don’t work for more than an hour continuously.

 Stay on track. Place a “goes elsewhere box” in the doorway and then stay focused on the

room you are de-cluttering. Put the box aside for another day and then return items when

you have 15 minutes free.

 Add a “needs cleaning box” too. One good chart for cleaning tips is from Martha Stewart. If

things need to go to the cleaners, take that box to your car so that when you are out on

errands, you will be able to check this off your list.

 Do you have a storage unit that you pay monthly for? Then maybe it’s time to hire an

organizing professional. Search online for local organizing services. There are professionals

that do a super job of helping.

This spring, let’s simplify. Your home will look better and you will feel great.

THE BUZZ

 March 20th marks the first day of spring this year. And this spring is not only the start of the hottest real estate season, but may also very well mark a transition to a “seller’s market” for the first time in quite a few years.

According to Lawrence Yun, National Association of Realtors’chief economist, “Buyer traffic is

continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth.”

If you are thinking about selling your home, we should start to strategize now. Pricing makes a

difference. The goal is to create multiple offers that drive the value of your house up. If you want to buy a home, we need to seek not only properties on the market, but also properties that were taken off the market when it was slow. I work with a network of top agents who share pocket listings as they become available. Let me start the search for you.

Planning ahead in either instance is key to your real estate success.

JUST ASK

Q: How do I buy in a seller’s market?

A: In a seller’s market, there are many buyers ready and eager to buy one property. This can result in multiple offer situations. To make a successful bid in a seller’s market…

 Know the comps and be prepared to offer over the asking price.

 Be prepared to increase your earnest money deposit. Sellers are more confident when they

see you are putting up a good sum.

 Submit a preapproval letter from a local lender and date it the same day as the offer. Also, be

prepared to show you have proof of funds to close.

 If possible, offer to buy the property AS IS, while requesting a short inspection period. Then,

read all available disclosures carefully before you make the offer.

 Offer to give the seller a few days to move after close of escrow.

I would work with a listing agent to see what’s important to the seller so we can customize our

offer. When we work as a team, we can hope for the best results.

MY TOWN

Have you ever driven to an Open House but just kept on driving after seeing it from the street? A

buyer’s first impression of a home has a significant impact on its salability. Consider this: Research shows that when you meet another person, you make eleven major decisions about that person in the first seven seconds of meeting. A similar correlation can be applied to selling your home: the buyer makes decisions about your home and its value within seconds of seeing it from the street.

Are the home numbers old and antiquated, or newly purchased from Restoration Hardware? Are

there cracks in the driveway, or newly-lain concrete? Does the walkway leading up to the house

have bright, colorful flowers alongside it?

It’s fun to go online and see what others are doing to boost their home’s curb appeal. Check out

www.pinterest.com and type “curb appeal”into the search bar. You’ll find hundreds of innovative ideas and pictures from people all over the world right at your fingertips. If you’re thinking of selling your house, or if you’d just like to upgrade its curb appeal, feel free to email me or give me a call. As an experienced agent, I’ve walked through many homes and have lots of ideas on improving first impressions.

FYI

For the past few years, we have been in a market that gave buyers the advantage in negotiations. But the real estate market could become a seller’s market in a matter of weeks. What’s behind the changes?

 Imbalance between buyers and sellers. In the Christian Science Monitor, it’s being

reported that, nationally, housing inventory has contracted to its lowest level since 1999,

according to an analysis from J.P. Morgan. And it’s not just homes for sale: Rental

vacancies are at their lowest level in a decade, according to the US Census Bureau.

 Lack of new homes being built. New home construction is recovering, but not quickly

enough to keep pace with demand and projected population growth. NAR is projecting 1.1

million total housing starts for 2013 –a vast improvement over the 781,000 in 2012.

 Population growth. “The underlying demand based on growing population is 1.5 million

housing starts per year,”says NAR spokesman Walter Molony. “If we don’t see enough

construction, we will see pressure on home prices that we don’t want.”

 More Lenders are loosening mortgage application standards, according to the Federal

Reserve, encouraging a seller’s market.

 Shadow Inventory. Shadow inventory consists of homes that owners have put off selling

because of low values and foreclosed homes in their neighborhood. CoreLogic has estimated that number could account for 2.3 million homes. If many of these owners decide to sell, the

seller’s market may slow or even flip back to a buyer’s market.

If you are considering selling, we should talk. Timing is everything.

THE BUZZ
With inventory low during the past few months, we’ve seen a rise in prices in many areas as buyers have sought to buy before the spring season. Lawrence Yun, chief economist of the National Association of Realtors, says, “Momentum continues to build in the housing market. With lower rental vacancy rates and rising rents, combined with still historically favorable affordability conditions, more people are buying homes.”In 72% of the top 50 U.S. cities, declining values have made it cheaper to buy a home at the median list price than to rent a two-bedroom home.
Distressed homes, short sales and foreclosures accounted for 22% of sales last November. These sales reflect an average discount of 20% according to the NAR. Yun predicts that “the market share of distressed property sales will fall into the teens next year based on a diminishing number of delinquent mortgages.”
So the good news is that your real estate investments are most likely rising in value. If you are thinking of buying, now may be the right time. Give me a call and let’s talk.
JUST ASK
Q: Can I see a chart of year-over year-changes to home prices?
A: The Case-Shiller Home Price indices are compiled by the financial services company, Standard
& Poor. The charts show the fluctuation of home prices every year nationally, by composites of top cities, as well as by individual metropolitan areas. For more information on these charts, click here.
The latest Case-Shiller Index below went positive on a year-over-year basis for the first time in 21 months. The Wall Street Daily reports that the investors recognize that the market is moving forward. See for yourself.

MY TOWN
If you’re planning a romantic Valentine’s Day dinner, check out www.opentable.com. Simply select your location by city and neighborhood, enter the time you’d like a reservation and the number in your party and the site will show you restaurants with available seating, as well as price range and star ratings as selected by other users of the site. You can also sort by price and cuisine, and view restaurants highlighted by rating and table availability. Whether you are planning ahead or just
being spontaneous, sites that feature local reviews expand your horizons. Happy Valentine’s Day!
FYI
If you want to boost the value of your home, one of the best ways to do that is to improve your home’s energy efficiency. While a professional home energy audit is the best way to determine where your home is losing energy (go to www.energystar.gov to find a Home Energy Rater), you can also inspect your home on your own.
First, make a list of drafts or air leaks. The potential energy savings from reducing drafts can range from 5% to 30% per year. Then check for penetrations around faucets, pipes, electrical outlets and wiring and cracks in mortar, foundation, siding, doors and windows. To seal air leaks, you should plug and caulk holes and add weather stripping around doors and windows. Two sites that give more tips on improving energy efficiency in your home are www.energy.gov and

Happy Holidays! Real estate news is good – prices are rising and homes are selling. Several of the factors that have led to an increase in home sales so far this year include the following:
• Affordability conditions
• Rent increases
• Lower levels of inventory
• Some job creation
The National Association of Realtors reported that existing home sales increased by 2.1% in November over the previous month. Homes over $500,000 are showing the most in price gains. One-third of all homes coming on the market are in escrow within 30 days and the average days on market is just 71 days.
According to the Federal Reserve, this year’s housing equity has risen by a cumulative $760 billion. By year-end, it is anticipated that the rising equity will reach 5% or $1 trillion.
There are tax advantages available through the end of 2012. If you want to talk, know that I am here for you. Meanwhile, may December be a time of joy and reunion for you.

JUST ASK
Q: Will new taxes affect the sale of our home in 2013?
A: Yes. Starting in 2013, the Health Care and Education Reconciliation Act will add a new 3.8% Medicare tax on all your investment income. These are sources of income the IRS defines as “unearned income.” This includes interest from the bank, royalties, dividends, capital gains and rental income.
The new rate on long-term capital gains earned from selling a home will also be raised from 15% to 20%. The 20% rate plus the added 3.8% for the new healthcare tax combines for a total of 23.8% tax.
You can search the web for “tax changes for 2013” to learn more. Better still, I recommend that you talk to your accountant about the tax changes coming in 2013.

MY TOWN
For the first six months of this year, Fannie Mae completed 38,717 short sales. That compares to 70,025 for all of 2011. On November 1, new guidelines went into effect for short sales. These are expected to simplify and speed the process by streamlining documentation. This should also help borrowers who have not defaulted on loans. Some of the new guidlines require lenders to
• Respond to short sales within 30 days of an offer
• Provide weekly updates to the borrow
• Communicate a final decision to the borrower within 60 day of receipt of the offer
Get more information by visiting www.fhfa.gov, or downloading the new guidelines here. This sounds like good news for buyers and seller and should facilitate a smoother transaction for everyone.

PERSONAL UPDATE
Bay Area Job Growth, Healthy Housing Markets May Outshine Washington’s Fiscal Cliff
Dire warnings of the approaching “fiscal cliff” in Washington obscure solid economic fundamentals in the Bay Area that point to continued economic recovery in 2013 and equally strong forecasts for our housing markets. Get the full story on this critical topic: http://bit.ly/WWdYmW.

I am truly honored by the trust you place in me with your referrals of family, friends and business associates.

Real estate tends to slow during November. But the news remains good as pending home sales have risen for 17 consecutive months on a year-over-year basis. According to Lawrence Yun, chief economist for the National Association of Realtors, existing-home sales in 2012 will total close to 4.6 million, an increase of 9% over 2011. With reports of lower unemployment rates, sales of existing homes are projected to rise at an average of about 9% next year too.
Prices are rising in many areas of the United States. With a shrinking housing inventory, Yun predicts that the national median price for existing-homes is expected to increase 6% this year and 5% in 2013.
If you are looking for a great buy, now may be the time to shop. Holiday sellers are usually motivated and closing before the year ends may be a benefit. Please feel free to call me during the holidays with any questions.

JUST ASK
Q: How do I know if the home I am interested in has building code violations?
A: Building codes change. New requirements are added to address safety issues and make homes more energy efficient. Below are just a few examples of changes that may be worth researching when you buy:
• Wiring standards now prohibit aluminum wiring in most residential construction and require ground fault circuit interrupters near wet locations.
• Changes have been made to wind and snow load requirements to strengthen structure of homes and prevent damage in extreme weather.
• The use of insulated HVAC ductwork may be required in some areas of the US.
• Water heater braces are now required in most areas.
To make sure the house you’re looking to buy is up to code, consider a trip to our local building inspection office or zoning and building department. Talking with the original builder can also yield valuable information. I always recommend having a professional inspection, but taking these extra steps may be worth your time too.

As we enter the fall season, the real estate market continues to show signs of growth. In many areas, inventory is low and interest remains strong as buyers look for good values in prime locations. The San Francisco Bay Area, Phoenix, Las Vegas and South Florida are several current hot markets.
Lawrence Yun, Chief Economist for the National Association of Realtors, reports, “The Pending Home Sales Index has shown 16 consecutive months of year-over-year increases and that has translated into a higher number of closed sales. Year-to-date existing-home sales are 9% above the same period last year. Existing-home sales this year are expected to rise 9% to 4.64 million.”
One way I track activity is by Days on Market (DOM). This reflects how long it takes to sell a home. DOM has been declining which indicates strong buyer interest. Usually it takes longer to sell a home during October, November, December and January as buyers focus on the holidays. I will be watching this trend in the months to come. Please feel free to call with any questions.

JUST ASK
Q: How relevant is the price of a home per square foot?
A: In large metropolitan cities, properties are often compared in value by price per square foot. One 3-bedroom home could be valued at $600/Sq. Ft., while another, similar property is valued at $900/Sq. Ft.
Keep in mind that much more goes into the market value of a property than just its square footage. Even if the two properties mentioned have the same square footage, one may have two bedrooms while the other only has one bedroom. The additional bedroom and other upgrades affect the value per square foot.
However, if we compare the recent sales of homes of similar size and quality in the same location, the cost per square foot should be similar for those properties. As you look to sell or buy, price per square foot will be one of the variables I assess when helping you make your move.

PERSONAL UPDATE

More Jobs, Falling Unemployment Point to Strong Economic Growth Across Bay Area
Unemployment in August dropped by solid margins across the Bay Area, and employers continued to add thousands of new jobs. That’s good news for our local economy — and for our real estate markets, too. Here’s the story: http://bit.ly/Q4dcOQ
My business is relationship based. I understand these are relationships that last for years – not just the time it takes to buy or sell a home. This is a service business and I pride myself on giving my clients full service that comes directly from me.
I am truly honored by the trust you place in me with your referrals of family, friends and business associates.

How long it takes to settle a Trust after the Grantor dies depends on what needs to be done. It might take a few months, and it might take much longer. If the Trustee has to value and sell numerous assets, if several creditors have made demands on the Trust, or if there is a complicated tax situation, the process can take some time.

It’s possible in this kind of situation for one or more Beneficiaries to go to court to ask to have the Trustee replaced or to force the Trustee to act, but this might not be a good idea unless the situation is very serious. You need to make sure that the Trustee really is acting unreasonably, because the court will only remove a Trustee chosen by the Grantor if the Trustee has really acted badly or negligently.
Disputes over the time it takes to settle a Trust or an estate often arise among family members. For example, if one sibling has been named Trustee, the others might think he or she isn’t resolving the Trust fast enough, or a Trust estate may seem cut and dried and the Beneficiaries may get impatient when things aren’t resolved quickly.

Handling an estate after the death of a parent or other close relative is often a burdensome and thankless task. Sometimes there are a lot of odds and ends to deal with, including bills to pay, papers to go through, and assets and claims to reduce to cash.

At the same time there often is sadness and a sense of loss. Some people cope by keeping the estate open as a way of not coming to grips with the finality of the death. Family members go through their grief in different time frames, and it does not mean that the one who takes less time loved the deceased less, or the one who takes longer loved him or her more.

When calling on the person selected to handle the matter to speed it along, even for the best of reasons, resentment often creeps in that can set up a counter reaction and drag things out further. You know that there is work involved, you recognize what the Trustee has been doing on the estate and you know that it is a burden. I hope that this answers some of your questions.

Nicole Burton - Realtor

Introduction: As with most things in life there is an ebb and flow, a cycle that all things go through to reach their peak or completion. So it is with a “short sale”, I have had a few easy ones but generally speaking it has taken 3 to 6 months to get an approval to move to close.

The Life of a Short Sale and Reasons Short Sales Take so Long:
Seller decides he can no longer make payments so he lists property with a Realtor^® and gives the Realtor^® an approval letter to speak to his lender. Seller gathers all of his financials, his budget, his taxes, his last 4 months of bank statements and his hardship letter. Realtor^® then sends all of this in to the bank and you wait and you wait and you wait. NOTE: it will many times take days before the seller’s authorization letter gets to where it needs to be.

Next the seller’s Realtor^® receives an offer and is enthusiastic because buyer and seller have agreed to the short sale price and have signed all the forms and additional short sale addendums. The listing and buyer’s agent then try their best to brace the buyer and the seller for the long months ahead.

Listing agent submits offer along with HUD-1 and any other updated documents that the lender needs are sent in and the fun begins. With the help of a great title company that helps gather this information, contract goes into the lender, listing agent calls each week and the lending company tells them that they are about 4 weeks behind on uploading documents to their system. Listing agent continues to call each week and the lender says they can’t find it and suggest the agent send it in again.

All parties get excited because a BPO (Broker Pricing Opinion) is ordered. Now to make it real fun there may be 2 mortgage companies to deal with so the listing agent does this twice. The first mortgage company now tells you that they are close to getting their deal approved and they ask for explanations of seller’s finances and additional documents that listing agent will send in with a gleeful heart. The lender informs the listing agent that while they are maybe only a month away from completion and it is now they inform the listing agent that, “oh by the way . . . we want you to call the second mortgage lender and tell them that although they are owed over $XXX,XXX on the second note that they will be glad to give them $3,000 dollars upon close”.
The first mortgage holder wants the Realtor^® to get something in writing from the second mortgage holder . . . now it gets real fun.
Keep in mind that although the buyer knows they need to be patient, it is hard for them and they wonder what in the world is anyone doing . . . is anyone doing ANYTHING???
The second mortgage company informs the listing agent that the contract that they sent in was opened and reviewed and it was finally in the hands of the FIRST PHASE negotiator. Keep in mind that although the first mortgage is almost finished everyone has to wait on the second. Meantime fees are mounting if the buyer is behind on payments – and they usually are.

The first phase negotiator will keep the file (along with a hundred others) approximately 15 days to make sure all documents are present and complete that are needed and of course it has been a while so they need to be updated so the seller needs to gather updated paper work and send it all in again.
If all is well the file now goes to the SECOND PHASE negotiator who has 30 days to review it. If he finds all things well, the file now travels to the investor.

If all is well now the investor has from 2 to 30 days to review the file.

Shortly before close they let the seller in on what they are willing to do for them in the way of accepting a lesser amount owed and what the seller’s contribution needs to be (if any) and if all is agreed upon then we all move to close.

If the lender and the seller do not agree and if the buyer gets tired of waiting then it is back to the beginning of the short sale life cycle.

My purpose in sharing is not to discourage but to bring attention to the fact that a short sale is anything but short and the more inventory that is sold this way the more difficult it has become. There are no shortcuts (no pun intended) so just take a deep breath and be kind to anyone involved in this adventure, if patience is not your virtue it will become so.
I left out some of the duties that a Realtor^® will do along the way because my main focus was to let you know why it takes so long so that you can just sit back and enjoy your life while the lenders, Realtors^® and title companies are working the deal.

Jobs Report: Bay Area Outperforms CA & USA

By Yvonne Young | February 7, 2012

Tags: Alameda, bay area, Contra Costa, East Bay, economy, marin, Mark McLaughlin, napa, San Francisco, Sonoma, statistics | Filed in: Alameda, Bay Area neighborhoods, East Bay, Employment News, Marin, Market Conditions, Market Insights, Napa/Sonoma, San Francisco
Email

Image of the San Francisco skylineThings are looking up for the country’s job situation and are even rosier in the Bay Area.

And that’s great news for the real estate markets – because a healthy Bay Area job outlook drives consumer confidence, purchasing, borrowing, and home buying.

The highlights from last week’s U.S. Labor Department employment report:

• The nation’s jobless rate dropped to a near-three-year low
• Unemployment fell to 8.3 percent in January from 8.5 percent in December
• The drop marks the fifth consecutive monthly decrease
• Job gains of 243,000 (net new) blew away economists’ expectations of a gain of only 150,000

As good as that sounds, things in the Bay Area are even better.

There are three factors swinging our way that are pushing us onward and upward.

1. We’re Not California
At the risk of sounding flippant, Northern California – and specifically, the Bay Area – isn’t “California.” There’s an important distinction between our state as a whole and our little slice of home. Although California’s overall unemployment rate of 11.1 percent is still higher than the U.S. average, that doesn’t hold true for the Bay Area.

According to the December county data from the California Employment Development Department, which were released last week, the six Bay Area counties we serve outperformed the California unemployment rate – and Marin and San Francisco rates were even lower than the national average.

Location
December 2011 Unemployment Rate
Marin County
6.5%
San Francisco County
7.6%
United States
8.3%
Sonoma County
8.9%
Alameda County
9.3%
Contra Costa County
9.3%
Napa County
9.0%
California
11.1%

In all cases except in Napa County, the rates had dropped from the previous month — and without exception all represented decreases from December of last year.

2. The Rolling Tech Tide
We have an added stimulus in our thriving technology industry, which is continuing to power healthy movement across various economic sectors. If this keeps up, we might even be willing to use the word “recovery” in tones louder than a whisper.

Bloomberg reported last week that hiring in the technology sector is gaining momentum. Among U.S. technology companies with a market value of more than $100 million, almost 50 increased employment by more than half in the most recently reported two-year period. And 74 expanded their workforces by more than 10 percent – more than any other industry group measured by Bloomberg.

The continuing trend of job creation in the tech industry should serve to support the declining unemployment rates and instill increasing confidence in Bay Area real estate markets.

3. The Facebook Factor
Finally, you can add the coming Facebook IPO into the mix. It’s an event expected to turn about 900 Facebook employees into instant millionaires (and a few billionaires) and will surely cause a ripple effect in spending on real estate, travel, and consumer and luxury goods.

In addition, the IPO will likely spur additional job creation, both within Facebook and in new start-ups as well as in companies already working with or leveraging the platform. The Facebook IPO effect could boost other sectors and even the U.S. economy as a whole, a position articulated by the DailyFX, a publication by the foreign exchange market (Forex), last week:

“With a history of acquiring companies that it believes could be complementary to its core business, investing in new developments and vast overseas expansion, many investors believe that the additional cash raised by Facebook could flow into other sectors such as advertising and marketing. The potential for job creation could help boost the U.S. economy, and accordingly the U.S. dollar.”

What’s Ahead for Us?
This is likely the first time since 2007 that we have enjoyed consistent and positive trends in economic indicators. Most of our markets currently have more qualified buyers than we do realistically priced homes, and we are seeing the return of multiple serious offers on well-priced homes.

We see this optimistic economic news as a stabilizer to our local real estate markets, although it’s not yet a catalyst for price appreciation.

However, the increasingly positive employment outlook coupled with our somewhat supply-constrained real estate environment will likely encourage home owners to list their properties and make the trade-up, relocation, or lifestyle changes that they have previously deferred until now.

Original Article by Mark A. McLaughlin – Chief Executive Officer of Pacific Union International, Inc.

(San Francisco skyline image courtesy of Michael Larson via Flickr)