November 2, 2012 • 11:59 am 0
24 offers on a South San Francisco home – price point was $450,000. Lots of buyers, not enough sellers. This market needs balance – appraisers can’t appraise, many buyers left out.
This market should be recovering slowly – but are we seeing the emergence of another mini-bubble in the Bay Area?
Filed under: Uncategorized, buyers, market, sellers
February 2, 2011 • 6:03 pm 0
When it comes to overall satisfaction of their real estate agent, 49% of traditional buyers and 69% of internet buyers reported a ‘so-so’ level of satisfaction, according to the California Association of REALTORS 2010 Survey of California Home Buyers. The same survey reported that 36% of those surveyed would ever use their agent again. That is a pretty horrific success rate, particularly in a business where client referrals and repeat business are some important.
So what did the survey indicate that home buyers thought were important traits in their real estate agent? Here is the skinny:
It’s clear that quick response is highly valued by today’s savvy homebuyers. What other traits were highly valued?
What do you think? Do you have any real estate agent horror stories?
Filed under: Buyer's Blog, buyer, buyers, first time homebuyer, first time homebuyers, home sellers
January 26, 2011 • 5:38 pm 0
A client recently asked the question, “What is the difference between a condo and a townhouse?”. A great question that is not always clear to most folks.
I find most clients tend to think of condos as a building or a complex. Condos are often mistakenly referred to as a type of construction or development. In reality, a condominium is really a type of ownership in real property. In a condominium, all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title.
For example, say I own a corner unit at one of San Bruno’s condominiums complexes, such as Shelter Creek. I would have an ownership in the interior of the unit to which I have title. I would also have an ownership (along with all of the other owners) of the property, common areas and buildings. I would be part owner of the land, but would not have an individual ownership of the land.
Townhouses are often thought of as an architectural style. For the most part, a townhouse is one row of homes sharing common walls. Differing from condominiums, townhouse ownership does include individual ownership of the land. Depending on the townhouse, there can be common areas, such as a central courtyard, which can be shared.
So then, what is a planned unit development (PUD)?. Most folks have heard of a PUD, but don’t associate it with an architectural or building style. It is, like a condominium, a type of ownership. In a PUD, individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the association or development.
Clear as mud? Here’s a quick cheat sheet.
I hope this helps.
Have any Real Estate questions? Contact me at www.JosephCapote.com or email me at JCapote@apr.com.
Filed under: Buyer's Blog, Seller's Blog, buyer, buyers, condominiums, first time homebuyers, home sellers, townhouse
January 6, 2011 • 2:20 pm 0
As part of a traditional residential 1-4 unit sales transaction, it is the seller’s responsiblity to provide the Transfer Disclosure Statement, or TDS. The TDS (known as California Association of Realtors form TDS) is the seller’s disclosure to prospective buyers of what he/she knows and is aware of regarding the property being sold. Things that are disclosed on a TDS include:
On January 1st a new version of the Real Estate Transfer Disclosure Statement was mandated by the legislature. If the prior version of the RETDS was given to the buyer before January 1,2011, then it is fine to use it. Listings that are not in escrow prior to January 1 will require the new Real Estate Transfer Disclosure Statement. That means changing out and redoing any RETDS in listings that was not in escrow prior to January 1.
The changes to the new TDS:
In transactions where the seller is a trust, a bank (REO) or the subject property is a commercial/multi-unit(5 or above) the TDS may not be required.
The Seller’s Supplemental Statutory and Contractual Disclosures (C.A.R form SSD) is often discussed since it is where the seller discloses knowledge of a death on the property within the past three years. This form will remain unchanged for the time being.
For more information regarding selling your home, visit me on the web at www.JosephCapote.com.
Filed under: Buyer's Blog, Realtor Trends, Seller's Blog, buyers, for sale by owner, home sellers
December 9, 2010 • 1:39 pm 3
Every once in a great while, the lines between Real Estate and Education blur. For example, putting a parcel tax on the local ballot to fund your local school district’s budget shortfall has been a hot ticket item for many localities over the last year. Once again real estate and education cross paths as congress fires up discussions regarding possible elimination of the mortgage interest deduction as a means of addressing the burden of the federal budget deficit.
As many of you know, owning a home has concrete tax advantages. The United States is one of the few if not only countries in the world that allows taxpayers to use mortgage interest as a way to reduce their tax responsiblity. This deduction has been instrumental in supporting a healthy housing market, including single family homes and investment properties. Yet once again the mortgage interest deduction has found itself in the crosshairs of a congress starving for ways to reduce the ever-growing federal deficit.
From the outside looking in, I can see why congress would want to consider this. And for the millions of people who don’t currently pay mortgage interest, the idea of reducing or eliminating the MID seems all well and good. Congress and the President Obama’s Fiscal Deficit Commission are throwing around some pretty hefty numbers in terms of deficit reduction if the MID is eliminated in part or even in full.
It would also be of little secret that the National Association of Realtors opposes this idea. I won’t lie to you, Realtors like myself have vested interests in the success of the real estate market. The last thing the real estate community wants is to see is a drop in the sales volume and median home price. However, if the mortgage interest deduction is eliminated, it is clear that the demand for home ownership will wane.
I believe Congress, and those who support the elimination of the MID, are well meaning but are missing the big picture. Eliminating the MID has very direct consequence on every home owner who pays a mortgage. It will also have a direct effect on home prices and sales as well as real estate investments and those who own condos or PUD’s. I mean, let’s face it. Who would ever consider purchasing a condominium without the benefits of the mortgage interest deduction?
But back to my point. There are also severe indirect consequences of MID elimination that congress may not be thinking about. On December 8th I watched as the San Bruno Park School District board discussed how they were going to address what appears to be a 4.9 million dollar shortfall in the current budget. The majority of the shortfall is a result of declining property tax revenue. For those who may not know, a large portion of a district’s revenue are tied directly to property tax revenue. Declining property values result in declining property taxes and ultimately mean less money for school districts.
So the formula as I see it is simple. Eliminating the MID will result in less demand for home ownership. Less demand for home ownership results in declining property values. Declining property values result in declining property tax revenues. Declining property tax revenues equal less money for school districts.
So, even if you don’t own a home or pay a mortgage, schools in the SBPSD receive less money. As a parent or a student, you get the added benefit of watching the SBPSD play yet another round of “Spin the Wheel of Reduced Education Services and Capital Improvements”, a game that has become all too well-known in our school district and others across the state.
But there’s more. If you own a home or multi-unit investment, you also know that home prices and rents are in part influenced by local schools. So underperforming schools have a direct impact on home prices and rental income whether or not you use the MID as a means of lowering your tax base. So ultimately, your home or your investment will be worth less money.
And don’t even get me started on how the further decline in property values will affect a San Bruno real estate market that is just starting to see a decline in distressed properties.
I’m imploring Senators Barbara Boxer and Dianne Feinstein to consider this when discussing the elimination of the mortgage interest deduction. Are you?
For more information, please visit me on the web at www.JosephCapote.com.
Filed under: Buyer's Blog, Realtor Trends, Seller's Blog, buyer, buyers, mortgage interest tax benefits, tax benefits of home ownership, tax benefits real estate
February 11, 2010 • 12:17 pm 0
1. What are the most popular mortgages you offer? Why are they so popular?
2. Which type of mortgage plan do you think would be best for me? Why?
3. Are your rates, terms, fees, and closing costs negotiable?
4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required? (NOTE: Private mortgage insurance is usually required if your down payment is less than 20 percent. However, most lenders will let you discontinue PMI when you’ve acquired a certain amount of equity by paying down the loan.)
5. Who will service the loan — your bank or another company?
6. What escrow requirements do you have?
7. How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if it drops during this period?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties for prepaying the loan?
Used with permission from Real Estate Checklists & Systems, http://www.realestatechecklists.com.
Filed under: Buyer's Blog, buyer, buyers, first time homebuyer, first time homebuyers, home buyers
September 8, 2009 • 4:47 pm 0
Here are 8 simple tips to guide your home search.
1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.
2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.
4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.
5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.
6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.
7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.
8. Get help from a REALTOR®. Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. Buyer’s reps are usually paid out of the seller’s commission payment.
I can’t stress the importance of #2 enough. I always advise my clients, especially first time homebuyers, that if they get 80% of what they want, they are lucky. Home buyers should posess the ability to compromise.
For more information on the home buying process, visit the buyer’s center on my website at www.JosephCapote.com
Filed under: Buyer's Blog, buyers, first time homebuyers, home search
September 4, 2009 • 12:08 am 0
I get asked this question a lot, and I thought it would be cool to post this. This is taken from my website, www.JosephCapote.com.
5 Factors that Decide Your Credit Score
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
For more information, check out www.myfico.com.
Filed under: Buyer's Blog, buyers, credit, credit score, factors that affect credit score, FICO, first time homebuyers
Joe Capote 