San Francisco Peninsula Real Estate Blog

Burlingame is enlisting the help of its citizens to curb speeding on its busiest streets.  Citizens won’t actually write tickets or confront drivers, but they offending drivers will get a “carefully worded” letter from the Burlingame Police Department.    Here’s an article with more details:

Citizen Radar

More often than not, home buyers rely almost exclusively on their visual sense of a home to determine whether a home is right for them. And why not? Eyesight is the most dominant of our senses, and the first impression we get of a home (or anything for that matter) is how it looks. Believe me, agents know this and consequently spend countless hours and $$ making a home look as good as possible.

But what about our other senses? What role do they play in choosing the perfect home? The answer is simple: They can tell you why you shouldn’t buy that particular home. Here’s some examples of what I’m referring to, and some tips on how to use your other senses to “sniff out” potential red flags in a home.

Touch

Humans are gifted with a relatively acute sense of touch and balance. However, when we’re looking at homes we rarely use this sense to its fullest potential. Here are some tips that should make you help you feel your way to possible trouble spots.

1. Take off your shoes. Don’t worry — in new homes, the agent usually asks you to anyway, so walking around a home in your stockings is perfectly acceptable. Your feet will tell you all kinds of tales about the house. Are the floors level, or do they slope to the downhill side? Are there bumps, ridges, or seams in the hardwood floor? Do the floors sag or creak excessively when you walk on them? These may or may not be key signs of potential foundation issues, and your shoes do a wonderful job of shielding you from them if you leave them on. So take ‘em off.
2. Open and close doors and cabinets. Sounds pretty boring… until you find a door that won’t close all the way, or sticks shut when it’s closed. It may be nothing more than a poorly aligned door…but it can also be an indication of foundation settlement, or excessive moisture in the house (wood absorbs water and swells.)
3. Run your hands on walls and counters. Obviously, if you just came from In ‘N Out Burgers, you’ll hopefully have cleaned your hands. Tile work should be uniform, with no tiles sticking up or misaligned. All countertops of any significant size have seams. Use the palms of your hands to find the seams. If it’s really easy, it not a good sign.

Smell(Taste)

Since you hopefully won’t be running around the house licking things, we’ll combine these two together. Smell and taste are closely linked anyway. Your nose can tell you all kinds of things about a house — what’s the best way to make the most of your sense of smell? After you’ve seen everything there is to see in the house, find a centrally located room, stand still, and (VERY important) close your eyes. Why? Because studies show your sense of smell (and the other senses) get more acute in the absence of vision. Take a few deep whiffs. Here’s what you may smell:

1. Must or mold. You’ll be absolutely amazed how this smell comes through when you close your eyes. I kid you not. If a house smells moldy or musty, you’ve very likely got water under the foundation. This is a biggie, so make sure you don’t ignore your nose on this one.
2. Excessive air freshener: It’s certainly ok to dab a little air freshener in a home to give it that Irish Spring sensation. But if it seems that the agent mistook “spritz” with “blitz” and the smell of the freshener is overpowering, this may not be an accident. Some agents douse the home in freshener to cover up the aforementioned mold, as well as pet smells, and cigarette smoke….all things that have a way of making their presence unpleasantly known.

Hearing(a.k.a. Planes, Trains, and Automobiles)

This is pretty obvious, because what you’re listening for is excessive noise. But it’s a tricky thing to ascertain, because noise may be dependent on the time of day when you’re tuned in. If the home is near a busy street, commute hours during the week are likely to be more noisy than the middle of the day on Sunday at the open house. If you’re really serious about buying a place, take walk along the street during commute hours to see how noisy it is. Aside from street noise, here are some things to listen for:

1. Airplane noise: Some of the most expensive homes on the Peninsula are right in the final approach to SFO. Make sure yours isn’t.
2. Train noise. You don’t have to live right next to the tracks to hear the train. If you live in a canyon, you’ll be surprised how far the sound travels up. Make sure you aren’t going to wake up every morning courtesy of CalTrain.
3. Neighborhood Noise: Is your new next door neighbor auditioning to be the drummer for the Led Zeppelin reunion tour? Are dogs barking at all hours of the day? Good things to know…
4. Interior vs Exterior: Unless you live on 10 acres in the hills, you’re going to get city noise. That’s a given. But how does the house shield that noise when you’re inside? A well insulated house should make a night and day difference.

We’re all gifted with a strong group of senses. Be sure to use them to the best of your ability when looking for a new home. It’s really the “sensible” thing to do. (Do bad jokes smell?)

Ten elementary schools on the Peninsula were just awarded “California Distinguished School” status by the State of California Department of Education. There’s a good article by the San Mateo County Times that discusses the list in more detail –> California Distinguished Schools.

• Nesbit Elementary in the Belmont-Redwood Shores School District
• Orion Alternative Elementary in the Redwood City School District
• Washington Elementary in the Burlingame School District
• Kings Mountain Elementary in the Cabrillo Unified School District
• South Hillsborough Elementary and,
• West Hillsborough Elementary in the Hillsborough City School District
• Laurel Elementary in the Menlo Park City School District
• Cabrillo Elementary in the Pacifica School District
• El Crystal Elementary in the San Bruno Park School District

• Laurel Elementary in the San Mateo-Foster City School District.

Congratulations to these schools for this well-earned designation!

Tags: Peninsula Elementary Schools

Following in the footsteps of chic and green San Francisco, Belmont is considering banning the use of plastic drinking water bottles in City Hall.  While Black Mountain isn’t quaking in their boots, it does send a symbolic message that the City is serious about being kind to the environment, especially on the heels of its very controversial non-smoking ordinance.

Here’s a good article in the San Mateo County Times that discusses the no-bottle proposal in more detail  -> No Bottles in Belmont.

It’s no secret that the rate of foreclosures nationwide is growing at an exponential rate. For quite a while, the Peninsula was relatively immune to foreclosures, since home prices continued to rise and the job market was relatively unscathed. But months of a languishing economy is starting to take its toll on some homeowners, as we’re starting to see more foreclosures notices and pre-foreclosure warnings. And they’re starting to pop up in some surprisingly upscale neighborhoods.

In some of these situations, foreclosure proceedings could have been delayed or avoided entirely had the distressed owner simply known where to turn for help, and what resources were available. Below there are a number of links that have good information on what options you have before you decide to throw in the towel.

Foreclosure Avoidance Tools
Freddie Mac Avoiding Foreclosure
FHA Avoiding Foreclosure
HUD Tips for Avoiding Foreclosure

Credit Counseling Services & Consumer Protection Tools
HUD Approved Credit Counseling Services in California
Home Loan Learning Center Foreclosure Prevention Resource Center
Home Loan Learning Center Foreclosure Prevention Contact Information
Freddie Mac’s Don’t Borrow Trouble

Tags: Foreclosure Help, San Francisco Peninsula Home Search, San Francisco Peninsula Real Estate

Ice hockey, much like its up-and-coming brother lacrosse, was until recently a predominantly East Coast sport. But with the arrival of the NHL and the San Jose Sharks over a decade ago, the popularity of ice hockey has increased exponentially. Consequently, clubs of all age groups and ability levels have filled the local ice rinks and have prompted the construction of some new rinks in the Bay Area.

The California Cougars (http://californiacougars.org) is the local club that serves the San Francisco Peninsula. The Cougars have enjoyed considerable success in their 10-year history. Most recently, the PeeWee B division (11-12 year olds, pictured above) won the Northern California Championship, and will now compete this weekend (3/28 - 3/30) in San Diego for the CAHA State Championships.

If you live on either the northern or southern extremes of the Peninsula, there are options for you as well. Click on the links for the respective websites:

• San Francisco SaberCats
• Santa Clara Blackhawks
• San Jose Jr. Sharks
  

Of course, hockey is unique in that you have to be proficient in a certain skill before you can even begin to play: skating. Not to worry — Bridgepointe offers a series of Beginning and Intermediate hockey skating classes, and even has great recreational league that plays every Sunday morning. It’s a great way for kids to learn the game. Check their website for more details –> Ice Center.

Good luck to the Cougars this weekend!

Tags: California Cougars, Youth Ice Hockey

Much attention has been paid to the Economic Stimulus Plan of 2008, also known as HR5140.  I’ve written about it in several blog posts, and dedicated an entire podcast to what the new “extended conforming” loans may (or may not) do for the average home buyer.  Just scroll down and you’ll find the podcast.

The biggest disappointment so far is that the interest rates on these new loans appear to be higher than the standard conforming loans.  It’s still early yet, as lenders are only now starting to write these new loans.  Sue McAllister of the San Jose Mercury news has some thoughtful insights on her Square Feet Blog.

If Fannie Mae and Freddie Mac haven’t solved the interest rate issue, they have managed to give this product a new flashy name:  “Agency Jumbo”   — presumably due to the unique connection to the two agencies.   So the next time you’re talking to your mortgage broker, use the new name;  you’ll get high marks for doing your homework, and hopefully low rates on your new loan.

Tags: Agency Jumbo Loans, Economic Stimulus Plan of 2008, HR5140, Interest Rates

You’ve undoubtedly seen this clip from the classic flick “The Treasure of the Sierra Madre” from 1948….

Perhaps the clip captures the spirit of my parent’s generation when it came to remodeling or modifying their homes. Permits? Are you kidding me? They didn’t want any stinkin’ permits. Back then, permits were expensive, time consuming to obtain, and required inviting the unwanted building inspector to the party just to he could tell you all the things he wanted re-done. Consequently, today you’ll find countless homes where second-floors were added, the number of rooms increased, and bathrooms completely redone — all without permits.

So should we uphold the same spirit today? With all due respect to my dad, the answer is a big NO. Here’s why:

Houses with the required permits are worth more than those without.

Consider the following very typical example: A homeowner takes a 2BR/1BA 1,200 square foot, post-WWII rancher and adds a master bedroom suite and bathroom, in the process adding another 400 square feet. He decides to enlist the help of some qualified friends in the construction business to do the work for a discount, and he doesn’t bother to get the required permits.

10 years later when he decides to sell his home, our hypothetical buyer is shocked to discover that he can’t sell his home as a “3BR/2BA 1,600 square foot home” Why? Because the County as no record of the improvements, since the City never approved of the construction. The listing agent is asking for a lawsuit if he represents this as a 3/2 when the County records show it otherwise.

Of course, this isn’t the end of the road for our hypothetical buyer. He can apply to get the improvements permitted and registered after the fact. Or, he can list the property as a 2/1 with an “un-permitted bathroom and bedroom.” But for obvious reasons, it isn’t the same as a legitimate 3/2.

The old excuses of permits being “too expensive, too hard to get, etc…” don’t apply anymore, either. Building Departments in most cities have made the process infinitely easier by doing as much of it online as possible. You can apply for a permit, track the approval process, and be make modifications all online in many communities. Chalk one up for the Internet.

The analogy of the used car is a simple application of this philosophy: A used-car with a full documentation of all maintenance is always worth more than the same car with no records. It’s no different with houses.

So if you’re planning a remodel, be sure to get all of the permits that are required. When it comes time to sell your home, you’ll be very glad you did.

If you’re in the market to buy a home in the Bay Area, you’ve undoubtedly come across a home that is listed as a short sale. While a short sale may present a good buying opportunity for you, there are serious challenges that you need to be aware of as a buyer. This podcast discusses three of the biggest ones.

Click on the podcast icon below to either listen directly from the blog, or you can download the file right into iTunes.

 

 The Long and the Short of Short Sales: Play Now | Play in Popup | Download

Tags: San Francisco Peninsula Real Estate, Short Sales

“Foreclosure” isn’t a topic that we’ve had to discuss too much on the Peninsula. A relatively healthy job market and a constrained housing supply have combined to keep home prices stable, and have provided a steady flow of qualified buyers. But make no mistake, the number of mortgages that are falling into some stage of risk is on the rise. With a record number of 5/1 ARM’s that are due to index this year, the problem is likely to get worse before it gets better.

There’s a very interesting cover story in today’s USA Today that highlights an alarming statistic with respect to foreclosed homes nationwide. According to the article:

“23% of the loans that were foreclosed last fall were to homeowners who had NO contact at all with their lender.”

This statistic is as stunning as it is sad, especially when you consider that lenders are under intense pressure from Congress right now to work out deals with troubled borrowers. The last thing most banks want is yet another home to have to manage, repair, and then resell. They would much rather try to restructure the loan than to have the homeowner just mail the keys back to them.

If there’s any good news here, it’s that the owners of the 77% of the foreclosed loans did have some contact with their bank. Consequently, you have to believe that there is a significant number of homeowners who are NOT part of this 77% who have staved off foreclosure proceedings by cutting a deal to modify their payment obligation. Let’s hope that number increases.

The moral of this story? If you’re in trouble with your mortgage, silence isn’t golden, and sticking your head in the sand and hoping the problem will go away is probably the worst thing to do in this situation. There’s lots of help out there, so take advantage of it.

Here’s the article from the USA Today => Mortgage Lenders See Borrowers Give Up

Tags: Adjustable Rate Mortgage, Foreclosure, Mortgage