The San Francisco Peninsula Real Estate Blog

Need some ideas on remodeling?   How about some creative tips on redecorating your home?  Or, do you just need something to do outside before it starts raining again?    If you answered “yes” to any of these, then you may be interested in checking out the Peninsula Home and Garden Show, which is running this weekend only at the San Mateo Expo Center (aka San Mateo County Fairgrounds.)   For complete details, just click on the image above, and it will take you right to their website.

There was also a nice write-up in the San Mateo Daily Journal about this event.  It highlights how much of show’s focus will be how to do more with your home for less money — smart strategy in this economic environment.

If you go, have a great time!

Tags: Home & Garden Show, Home Improvement

There has been so much written and speculated about the Obama Administration’s Foreclosure Prevention Plan, that it’s hard to understand what it really means for homeowners.   This morning I found a really nice, concise summary in the lastest edition of Realtor Magazine which briefly touches on the key points.   This is such a good summary, that I have reproduced the article below in its entirety, or you can click the photo above for the online article:

What’s In the Foreclosure Prevention Plan

The Obama administration yesterday released its long-awaited plan to stem foreclosures. It’s organized into three categories:

1.) Help for home owners making their payments but at risk of default and foreclosure.

Home owners with a Fannie Mae or Freddie Mac loan would be eligible to refinance as long as their mortgage doesn’t exceed 105 percent of the home’s current market value. Currently owners need to have at least 20 percent equity. Potential impact: 4-5 million households.

2.) Help for home owners already in default and in need of loan modification.

For lenders that voluntarily agree to lower a borrower’s payment so that it makes up no more than 38 percent of the borrower’s income, the government would share the cost of lowering the mortgage burden to 31 percent of income. Incentives to lenders to participate include a $1,000 payment.

Borrowers can receive up to $1,000 as an incentive to stay current on their new mortgage. Still in the works is a proposed provision that would allow bankruptcy judges to require loan modification (known as a cramdown) as part of a household’s restructuring. That provision requires legislation by Congress. Estimated potential impact: 3-4 million households.

3.) Doubled resources to Fannie Mae and Freddie Mac.

To encourage investors to buy the secondary market companies’ mortgage-backed securities, the government explicitly backstops them to up to $400 billion, twice the current amount.

The plan does not provide help to investors or to home owners who are in trouble with a second home, nor does it apply to homeowners whose mortgage is part of a private-label mortgage security that is not backed by Fannie Mae or Freddie Mac.

“The administration’s proposed plan, combined with provisions like the $8,000 first-time home buyer tax credit in the just-enacted American Recovery and Reinvestment Act, will help minimize foreclosures, shrink housing inventory, stabilize home values, and move the country closer to an economic recovery,” says NAR President Charles McMillan.

Source: REALTOR® Magazine Online

The Message:

The message here is simple: Help is available to you in a variety of ways. If you’re a homeowner in one of the situations outlined  above, the worst thing you can do is to DO NOTHING.  The Administration is trying to keep as many people in their homes as possible, so take advantage of this and get the assistance you need.

Tags: Foreclosure Mitigation, Foreclosure Prevention Plan

There’s absolutely no doubt that the quality of the public school district is one of the top decision criteria for home buyers as they decide where they will ultimately live.  Parents want the best schools for their kids, and home-buyers want their investment to retain value.  Homes in the more desirable school districts fetch higher prices, almost as if they’re tracking the API scores of their respective schools — the higher the API scores, the higher the home prices.   The converse is true as well.

But should you buy a home solely on which school district it resides in?    As some Burlingame families found out this week, the answer is a resounding NO.   Just because you fall within the stated boundaries of a particular school, it does not mean you are guaranteed to get into that school.    Residents in certain San Carlos school boundaries found this out last year.   Clearly, in the case of Lincoln Elementary School, there were examples of inexplicable miscommunication on behalf the School District.  But at the end of the day, this is of no consolation to those parents who will have to enroll their children in other schools.

What can you do?

If you’re searching for a home, and the school district is of paramount concern to you, the best thing you can do is arm yourself with as much information as possible.   Here are three key things you can do to ensure you’re making the right decision:

1. Interview the School Principal.  Find out what the current enrollment is, and what the trends are (increasing or decreasing?)   What percentage of capacity is the school currently at?   When are they projected to be full?   What plans are there to increase capacity?   Meet with the Principal in person, if possible.
2. Understand the District’s policy on Impaction.   What happens when a school is impacted?   How does the District handle decisions on inter-district transfers?  Does having a sibling in the school give higher priority.   These decisions are almost always made at the District level, so get in touch with the respective district and understand their policy.   Call the superintendent if you need to.
3. How are the adjacent schools? It’s not uncommon on the  Peninsula to have a high-scoring school adjacent to under-achieving ones.   Check out the schools adjacent to the area you are searching in.   If you wouldn’t send your kids to any of those, then you’re taking a much bigger risk by buying into a single district.

The bottom line?  Do your homework.  Every school on the Peninsula has its own website, and every School District has one as well.   The contact information for the Superintendent, Principal, and School Board Members is readily accessible.     Be the one to initiate the contact, ask questions, and make yourself a pain-in-the-rear if need be.    Don’t put yourself in a situation where you will suddenly resent the biggest purchase that you’ll likely ever make.

There’s simply too much at stake….

Tags: Peninsula Schools, San Francisco Peninsula Real Estate

“Don’t pay  for something that you can get for free…”

That’s essentially the message that’s conveyed in this press release from County Assessor Warren Slocum’s Office.  San Mateo County homeowners have been receiving official looking letters from private companies that are soliciting fees to file a Request for Property Tax Reduction on your behalf.    The details of the scam along with examples of the solicitation letters, are nicely outlined on the San Mateo County Assessor’s website.  I highly recommend that you take a minute to read this link.

No scam would be complete without an ominous “call to action,”  and this one has that as well in the form of an artificial deadline — you must act by a certain date or you will lose the opportunity…..  you get the idea.

The Truth

As I outlined in this blog post about applying for a property tax reduction, there are 3 truths to applying for a reduction in your property taxes.

1. It’s FREE.
2. You deal directly with the County Assessor’s office (no intermediary required.)
3. You can apply for the reduction online or via mail.   It’s really very easy.

Now, this doesn‘t mean that you’re automatically going to get a reduction in your property taxes.   What it does mean is that the process to apply for this reduction is free.

In other words, don’t pay someone to do something that you can yourself for free!

Tags: Advice for Homeowners, Property Tax

Just ran across a great article in the San Mateo Daily Journal — it’s a brief, but very interesting description of the history of Millbrae.  Enjoy!

History of Millbrae

The trying economic times we’re experiencing has made an impact on the real estate market that we haven’t seen in decades:  The Real Estate Owned (REO) property.   An REO property is simply a home that is now owned by the bank after a foreclosure proceeding, and is being sold on the market.    Sometimes, REO’s can represent a good opportunity for buyers.   Banks are in business to loan money, NOT to own houses — so they are motivated to get a stagnant asset like a vacant home off of their books as soon as possible…the more motivated they are, the lower the list price.

With all of this opportunity for buyers, are there downsides to consider?  You bet.   Here are the three biggest things to consider when considering the purchase of an REO:

1.  Disclosures (or lack thereof.)

California Real Estate Law requires the owner of a property to disclose any material facts about a home that may have an impact on its value — if you’ve shopped for a home, you’ve definitely seen a thick disclosure packet or two.    But there are provisions that allow exemptions for owners who haven’t lived in the home, or who simply inherited the property through a trust proceeding — REO’s usually fall under this provision, so there will likely be NO disclosures about this property.  Consequently, you don’t get the benefit of the previous owner’s knowledge about the house or the neighborhood.  The banks make this very clear when you’re writing an offer.

Solution:

Be sure to hire a very competent property and pest inspector.   Do your own thorough inspection of the property as well.  And don’t be afraid to knock on some neighbor’s doors to get their opinion on the home, neighborhood, street, etc…

2.  Deferred Maintenance.

When homeowners stop making payments on their home, it’s safe to assume they won’t be putting any money or effort into maintaining the home either.  In some extreme cases, homes have actually been vandalized by the departing owner.   Since the foreclosure process itself takes a number of months to complete, you may be looking at a home with several years of neglect.

Solution:

In addition to the aforementioned property/pest inspection, be sure to get estimates from reputable contractors on what it will cost to remedy any deferred maintenance.   A house that looks like a screaming deal on the surface may not be such a great deal when you factor in the cost of fixing everything.

3.  Transaction Timeframe.

As I mentioned at the top of the post, banks are NOT in the business of selling homes.   Most banks have very little infrastructure manage the exponential growth of their REO inventory.  Consequently, you can expect that EVERYTHING in the contract process is going to take longer.   Getting a response back on your offer is usually quite a bit longer than if you were buying from the owner — and this problem simply  multiplies with every counter offer.    A healthy dose of patience is required when buying an REO.

Solution:

Be sure to include an “out” clause in your contract  — This will enable you to move quickly if you’re waiting for the bank to reply to your offer and you suddenly find something you like better.

Summary:

REO’s can be a good deal for buyers, but it’s important to go into the transaction with your eyes wide open and be aware of the possible pitfalls of purchasing a bank owned property.

Tags: Home Buyer's Tips, REO

The San Mateo real estate market was a mixed-bag in November 2008.   The volume of home sales plummeted to the lowest value in years.   Seeing a drop in volume this time of year is not abnormal, but the severity of the drop is.   However, note that similar results were seen in neighboring communities.   If there’s any good news, prices seem to be stabilizing — we’re not seeing double-digit drops in the average and median prices.  Hopefully, this means the bottom is starting to approach.   See the data below.

Summary

Here’s a graphical representation of the monthly unit volume, average sales price, and median sales price.   Note that this is a 3-month rolling average, which is used to normalize spikes and drops in the data.

Price and Volume Trends

Finally, here’s a snapshot of the year-to-date sales volume.   Simply put, the figures speak for themselves.

YTD Sales

Tags: City of San Mateo, San Mateo Home Sales for November 2008, San Mateo Real Estate

This is a great question, and one that you should know the answer to before you decide to start tearing walls down in your home, or digging a hole in the back yard for a pool.  Now while this information may not change your plans, it certainly gives you an idea on what the impact may be to the value of your home.

So which remodel projects bring the highest return?   Realtor Magazine published an excellent summary of a study that was conducted by Remodel Magazine — some of the results are what you might expect, and some will surprise you.   Here’s the link to the article:

Remodeling Projects with the Highest Return

Regardless of what project you decide to do, here’s a critical piece of advice:  Be sure to get any and all required permits.  The resale value of your work will drop dramatically if it’s disclosed as “un-permitted.”

Tags: Home Remodeling Projects, Remodeling Your Home

We’ve had it ingrained in our heads for years that we’re supposed to dial 9-1-1 from a land-line phone when we have an emergency situation.  That system generally works flawlessly, even when there’s a natural disaster.

But what happens when all you have is a cell phone?   When you dial 9-1-1 from a cell phone, the call is routed to the California Highway Patrol (CHP) dispatch center in Vallejo, which is a long way from anywhere on the Peninsula.  Depending on their workload at the time you call, you may end up on hold for a significant amount of time before you speak to anyone.  And if you’re lucky enough to reach a dispatcher, there’s no guarantee that they can route you to the proper local emergency bureau.

One of the smartest things you can do for yourself is to program your local police dispatch number into cell phone under the name “EMERGENCY.”    When you dial this number, it’s virtually the same as calling 911 from a land-line phone, and even if you’re not in the same city at that moment they can still transfer you to the right place immediately.   Here are the direct dial emergency numbers for some San Mateo County communities:

Belmont:  650-595-7400

Burlingame:  650-692-0310

Foster City:  650-573-3333

Redwood City:  650-369-3331

San Bruno:  650-877-8989

San Carlos:  650-802-4321

San Mateo:  650-522-7700

San Mateo County Sheriff:  650-363-4911

Take a moment right now and program the appropriate number(s) above into your cell phone.  You never know when you might need it.   I used mine only yesterday!!!

Tags: San Mateo County Emergency Phone Numbers

Curling up in front of a warm, crackling fireplace is a favorite thing to do for many people, especially for those homeowners who are lucky enough to still have a wood-burning fireplace in their homes.  Now that the weather is starting to get cooler at night, you’ll see more plumes of smoke coming from those chimneys.

But starting this past Wednesday, burning real wood in your fireplace could be a costly mistake if you do so on a designated “Spare the Air Day” in the Bay Area.   Inspectors from the Bay Area Air Quality Management District will be looking for violators and possibly writing citations.   And the fines won’t be cheap, either.  According to the San Jose Mercury News, fines could range from the hundreds of dollars to as high as thousands of dollars.

So how do you know if it’s a “Spare the Air Day”?    You can click on the above link to the Bay Area Air Quality Management District, or I have included their Air Quality banner on the right side of the blog.   So enjoy your fireplace, but be sure you have a green light to burn!

Tags: Bay Area Air Quality Management District, Spare the Air Days