For those of us East Bay residents not travelling this Presidents’ Day weekend it’s the perfect time to go local, seriously. The Bay Bridge will be closed from 8pm Friday to 5am Tuesday. Take the opportunity to find a new local delight, or revisit old favorites in our East Bay communities. Here are a few suggestions: * Soak up some culture, soak up some sake, or soak up some luxurious pampering. * Take a walk, perhaps on the wild side, the mild side, or by your child’s side. * Take a plunge in the water, walk out on water, walk around water, restore the shore, or watch the water fall. * Take a romantic cruise, or sail across the water. * Board a tall ship, an aircraft carrier, or a presidential yacht. * Eat something exotic and exciting, dark & delicious, or light & organic. * Play a round, see a play, see the pro’s play, play make believe, or make your own play. * Take a guided tour of a home of learning, an historic home, or find your own next home with our search tools, and we will provide your guide: one of our seriously local Realtors.

FHA Anti-Flipping Rule Waiver Extended Through 2012

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante announced an extension is now in effect through December 31, 2012. With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, FHA temporarily waived and then extended this regulation through January 31, 2011. The new extension through 2012 will continue to allow buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. FHA's motivation is to allow properties to resell as quickly as possible, helping to stabilize real estate prices and to revitalize communities. The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA. The Waiver still consumer protections to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers. Sales must meet the meeting the following conditions to take advantage of the Waiver. • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. • If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender is required to document the conditions creating the increase in value. For more details see the December 28th press release from the FHA.

HARP 2.0 a heavenly sound, or another sour note?

Last week we heard the good news that President Obama would order changes to the HARP program now popularly referred to as HARP 2.0. The basics are that any borrower with an LTV ratio above 80 percent is eligible for a HARP refinance, as long as the loan was sold to Fannie or Freddie prior to May 31, 2009, and the borrower is not delinquent on their payments. That Fannie/Freddie requirement tempered the joy of the announcement as many homeowners checked to find that their loans are not eligible.

But there was another provision of HARP 2.0 that did not make the top of the headlines. There are incentives for private lenders to adopt the program as well. It seems to be having a positive effect. The four largest banks (Bank of America, Wells Fargo, Chase, and Citigroup) are planning to voluntarily offer HARP 2.0 financing.

Details of the private financing options are expected to be published by early December. Could this be an unexpected holiday bonus that will make for a happy new year for those who have kept up our mortgage payments in hope of some kind of redemptive change? Well, we have seen rosy roll-outs before that turned out to nothing more long series of brake lights in a tunnel. This time, however, it genuinely looks like millions of homeowners are on the verge of getting substantial relief. Stay tuned or check in with me to find out how to see if you are eligible under the current changes, or might be in the future.

Haunted Real Estate

The archetype for a "haunted house" - an ornate Victorian home with a tower and Mansard roof - is a central icon in our celebration of Halloween. In reality such a house, if priced right, would likely draw multiple offers as the dream of restoring a "fixer" to former glory is also a well-established cultural tradition.

Before we get too much off the subject of real estate, let's note the legalities of buying or selling a haunted house. In our diverse community there are those who hold beliefs about the spirits of the deceased. It's something to be recognized and respected.

You have probably heard that a seller must disclose any death on the property within the past three years because of this. The law (Cal. Civ. Code Sec. 1710.2) actually says that a buyer cannot successfully sue a seller for failing to disclose such an event that is more than three years old. But lawyers opine that there might be exceptions if the events were notorious in a "Nightmare on Elm Street" kind of way.

The East Bay has its share noted haunts. Journalist Teresa Chin mentions several, but particularly investigates Mills College, in her article "Haunted Oakland". Ghost hunting is no longer occult; it has become a recreational sport. A web site called Ghosts of America lists ghosts by location and type. California ranks with 2,269 reports, and over 80 of them are in our two East Bay counties. San Leandro tops the list with an unlucky count of 13. Berkeley has no reports on that site, but a similar site, California's Haunted Hot Spots, reports a seriously local ghost confined to room 219 of the U.C. Berkeley Faculty Club.

Turning again to the local real estate market, the public remains spooked by foreclosures, short sales and economic uncertainty. Yet we still have high attendance at open houses, and the best properties still provoke competitive overbidding. Some markets are down, others appear to be improving. Real knowledge is the best antidote for fear, so please call me if you feel haunted by real estate worries. Let me be your personal ghost-buster.

On the lighter side, staged haunted houses are offered as holiday entertainment. Some are commercial, others are sponsored by non-profit organizations. One promoted by Fear Venue is located at the Bayfair Mall in San Leandro. A more varied list and an event map is offered at Haunted Bay. This also includes pumpkin patches and other Halloween entertainment.

Whether this season is a time for remembrance of departed loved ones, an occasion for family entertainment, or just a nuisance, I hope that you stay safe and warm as the days shorten and the seasonal rains return. As always, please call me if you have any real estate or home maintenance issues still haunting you, and I always have a spirited welcome for your referrals

Oakland Condo Prices Hitting Bottom?

There continues to be a lot of confusion and disappointment in the buying public in the bay area as we hear of record lows in values across the country but competing offers for properties here. Asking prices sometimes seem random, but closed sales, even though they might be over asking, tell the real story. Those closed prices continue to trend down when compared to similar closed sales last year. It is the wide variation in asking prices that is frustrating buyers. It's like the difference between settlement demands and jury verdicts. Both provide sets of numbers, but only one provides real guidance about the value of a case.
I just generated two charts for some of my buyer clients. They track closed sales prices, meaning real value, only; not the asking prices which are really only marketing ideas. The charts show the trend of median prices for condos in zip codes 94610, 94611, and 94612 (basically the areas Piedmont Ave., Grand Ave., Adams Point, Lake Merritt, and down town). The point of these charts is not the values because it includes all condos, but the change over time. On the two year trend we see an 18% decline, but the one year trend is basically flat with no decline between April 2008 and April 2009.
I can't predict what will happen next month or next year, but these charts might be the first pictures of the bottom of this market. E mail me and I will be happy to share these charts, or create others that pinpoint your particular interests.

$8,000 Federal Tax Credit

Some Additional Protection for Abandoned Animals

A new law went in to effect on the first of this year requiring that abandoned animals discovered at a property that has been taken back by way of foreclosure, eviction, or termination of a lease, be turned over to the local animal care and control agency. People aren't the only ones left homeless by this crisis.

This actually happened to me a few years ago in Maxwell Park. My clients finally had to evict the non-paying tenants from their elderly parents home. They needed to sell it in order to pay for expenses of the assisted living facility where the parents were living. They gave me a set of keys so that I could enter and assess the situation as soon as the tenants were out. The place was a mess, as expected, but the worst of it was the frightened pit bull I encountered when I walked down in to the basement laundry room. The dog, as it turned out, had been there for a few days without food or water. Although it growled at us, a neighbor assisted me with putting out some kibble and water for it while we waited for animal care & control to take the dog to the shelter. I hope the dog eventually found a home better than his last situation.

Preventing Foreclosure Blight

There are two recent developments that might help to reduce the number of vacant and vandalized homes that have been through the foreclosure process.
Fannie Mae has developed a rental policy on its own foreclosure properties. It will offer new month to month leases for qualified tenants. http://www.fanniemae.com/index.jhtml

Appealing to a smaller and exclusive segment of the market, Designer HomeTending is offering a new wrinkle on house-sitting. Pre-qualified renters with the high end home furnishings are allowed to occupy otherwise vacant properties. They have to agree to keep the house in tip-top showing condition, get out of the way when the property is being shown, take care of the utility bills to keep the lights on, and leave when the property is sold. I don't expect this to have a big impact on the real estate market, but every little bit helps. I certainly shows creativity and "win-win" thinking. http://www.designerhometending.comt

When Things Fall Apart

An article in the March 2009 issues of REALTOR Magazine (The 11th-Hour Back Out by Robert Freedman) recounts a phenomenon that many of us in the profession are dealing with: transactions that fall apart before closing. Freedman cites statistics showing a increasing gap between "pending" deals and "closed" sales. What's happening? The article points to two major issues: failure to obtain financing and the high number of short sales that are never consummated, but instead proceed to foreclosure. Locally we rarely see a loan fail to go through due to the property not appraising, but standards are tightening and I just encountered on this week. Loans more often fail due to stricter credit requirements by lenders. While this is generally a good thing for everyone, it presents a serious problem for the parties and professionals involved when the standards change between the time an offer is accepted and the expected close of escrow. Other incidents that I have seen recently and locally reflect the overall problems in the economy: the buyer loses a job, the buyers line of credit on another property is cancelled or reduced, the sale of the buyer's other property failed to close, and the buyer found another property while waiting several months for a short sale to be approved. Our office recently experienced a situation where the failure of one transaction in New York resulted in four other deals falling out as each was dependent on the other and the transactions tumbled down like dominoes in a row. The moral of the story: be very attentive to your contingency clauses and keep them in effect for as long as possible.

A different way to lose your home

Here is a new wrinkle on the continuing sad news of people losing their homes. This poor man was in the process of fixing up a dilapidated house in Detroit only to drive up one day and find that the city had demolished it. Poor guy! Here's hoping that the city recognizes its error and helps this man get his house up again.

And now the fighting begins

With the sub-prime mortgage debacle still raging on, some buyers and borrowers are turning to the courts in an attempt to re-coup their losses. Thomas Brom, a senior editor at California Lawyer magazine (Jul. 2008), notes that 170 sub-prime mortgage related law suits were filed in the Federal courts just in the first quarter of 2008. Some California law firms are forming teams to handle the increased business in such areas as nondisclosure, misrepresentation, ERISA violations, and others. Are the claims justified and, if so, will justice be done? I remain skeptical, but I heartily concur with Mr. Brom's final comment that it will " . . . add up to a lot of work for California law firms."

Lenders Required To Maintain Foreclosed homes

One of the collateral effects of the foreclosure crisis is the ensuing blight brought on by abandoned and neglected homes. A bill, SB 1137, was signed in to law by the Governor allowing cities and counties to enact ordinances to force the the lenders to maintain the properties. Typical requirements are maintaining landscaping, draining pools and spas (a serious health consideration due to mosquitoes), repairing broken windows, and keeping the premises secured from squatters and vandals. Properties in disrepair lower surrounding property values, further exacerbating the general decline in property values.

My move to Red Oak Realty

Changing brokerages was not an easy decision, but the closing of the Solano Ave. Windermere office presented an opportunity to re-assess my business. As with any difficult decision, returning to first principles and best practices clarifies the choice. The outcome became readily apparent when I narrowed the issues down to a single question: what will best serve my clients right now? Red Oak offers superb marketing, a large cadre of knowledgeable colleagues, extensive administrative support, and convenient offices in both Berkeley and Oakland.

Paradise Restored

The restoration work on Codornices Creek at my north Berkeley listing (1718 Beverly Place)is substantially finished and we are ready to sell the property. Turn on your speakers and enjoy this little video tour and the sound of the stream rushing toward San Francisco Bay

Breaking up is hard to do

I recently addressed two questions with a similar theme on Yahoo! Answers. The common theme was about what happens when joint owners of real estate have to go their separate ways? It could be a divorce, a move, a death, a business dispute, any number of reasons. The answer is going to depend on highly variable circumstances. There is no single answer, even for what might appear to be similar circumstances, but there are two common guidelines.
Don’t start anything unless you know how you are going to end it. Have an agreement and put it in writing. Now, this does not apply to most marriages, although many people contemplating marriage take the trouble to have a pre-nuptial agreement drawn. Mostly this has to do with business arrangements. What happens if one party wants to sell, and the other wants to stay? What happens if one of the owners dies? Are there buy out rights? How do you value the property for the purpose of a buy out? How do you handle expenses? The list goes on. You cannot decide all the issues in advance, but you can decide on and commit to a process.
The other bit of advice, and this applies to what I already mentioned above, is to obtain competent professional advice. Simple acts can have complex consequences like: incurring a tax liability, clouding a title, or even forcing a sale.

Can you hear the market conditions?

You can always tell when conditions are shifting by the noise of the freeway. In a seller’s market the noise is insignificant; in a buyer’s market it’s a major nuisance and possibly a deal killer. Yes, you might get a better price due to the freeway noise, but don’t be surprised if the next buyer wants to offer you a very low price when it’s your turn to sell. Best practice: evaluate your prospective purchase by comparing it to closed sales, current offerings, and recently expired/withdrawn properties that are similarly affected by the same freeway noise. Right now I have a listing on a very busy street, close to a freeway. My clients bought it in the fever of a seller’s market. Now, with the tide turning in favor of the buyers, there are 3 properties sitting unsold on that block even though the prices have been repeatedly reduced. When buyers are able to find similar properties at affordable prices without the impediment of freeway noise, why wouldn’t they choose the other property . . . unless, of course, the noisy property was price lower, much lower.

Price, price down, price up again? Huh?

Yes, well that does bear some explaining. The price of my listing at 4021 Edwards Ave. just went up. Let me explain why. Our original price of $449,000 was simply not working. Market conditions are such that it was not attracting buyers. We lowered it to $389,000, with the disclosed caution that this would be subject to the approval of a "short sale". Please see my earlier article "A Short Sale In Not Discounted Beachwear". We did get some interest at that price, but the lenders, particularly the holder of the 2nd deed of trust, did not co-operate. We now have worked out a plan that will allow us to avoid the uncertainty of a "short sale", avoid foreclosure, and to offer the property at a reasonable price to the buyer. $417,000 is a special number. It is the upper limit of conforming loans. Loans that are most available and affordable. Loans that can still be made in "zero down" or "100% financing" situations. The seller has taken a bold step, at considerable expense, to create an environment that is both friendly to the buyer and offers himself some relief as well.

Price change on Edwards Ave.

Art White | Windermere Real Estate Bay Area | (510) 809-1714 4021 Edwards Ave., Oakland, CA Sweet 1940's house with sunny garden. 2 Bdrm Single Family House offered at $417,000 Year Built 1941 Sq Footage 1,017 Bedrooms 2 Bathrooms 1 full, 0 partial Floors 1 Parking Unspecified Lot Size 5,336 sqft HOA/Maint $0 per month DESCRIPTION In the 1940's formality continued to yield to modern sensibility: let in the light! Here, the living room offers the formality of a brick fireplace, but flows into the dining room in mid-century style. The 2 bedrooms are separated by the bath, bungalow style. The kitchen has a liberating garden view, and the bright laundry room marks an era when homemaking was gaining more respect as a vocation. Progress marches on with the addition of 21st century windows and an on-demand water heater. There have been many upgrades of recent date making the house more modern and energy efficient. The dual-paned windows provide shelter from the busy traffic. The kitchen still needs upgrading, but has a nice view to the garden, includes a double-door stainless refrigerator and a vintage Wedgewood stove. see additional photos below PROPERTY FEATURES Central heat Fireplace Hardwood floor Living room Dining room Stove/Oven Washer Dryer Laundry area - inside Yard OTHER SPECIAL FEATURES Dual paned windows -- energy efficient Automated sprinklers (front) Long driveway for extra parking (tandem) Remodeled bath Large lot with sunny garden Tankless on-demand water heater -- energy efficient Copper pipes recently installed Upgraded furnace -- energy efficient ADDITIONAL PHOTOS Seller contact info: Art White Windermere Real Estate Bay Area (510) 809-1714 For sale by agent/broker Equal Opportunity Housing Posted: Aug 25, 2007, 3:18pm PDT

Market conditions: Oakland, 94619 a modest decline

Oakland's 94619 zip code takes in a wide swath of the eastern portion of Oakland: from the modest bungalows of the Allendale, below MacArthur, starting around Brookdale Ave., extending eastward across 580 ,and up-hill through the Laurel, across highway 13, and then ending in the dizzying heights and prices of luxury hillside homes around Skyline Blvd.

The average sales price can jump or slide depending on the particular mix during a short period of time. On a monthly basis, for instance, a comparison between 2006 and 2007 closed sales for the area can show an upward spike 24% in March or a plummeting -22% slide the following month.

We get a more temperate, and accurate, picture when we expand our view over the entire calendar year. Comparing 2006 with 2007 through July, the average listing price dropped by 1% for the year, but the average sold price dropped by 3%. That 2% gap seems to indicate that some of the sellers are just not getting the message.

Does this mean that buyers can low-ball anything by 3%? Not at all. There are still multiple offer and overbid situations in the area. A modest home in Oakland's Montclair district just closed for $91,000 over the asking price. Then should a buyer offer more than the asking price in a declining market? Not necessarily; it all depends on the particular property. Value is always the key concept. Price is an amalgam of free opinions: what the agent thinks, what the seller thinks, sometimes what the agent thinks will get the listing signed, and sometimes what the seller thinks is needed in order to "have room to come down". Value is established only when the buyer pays and the seller accepts. There is no substitute for a detailed and thoughtful comparative market analysis of your property. Would you like one for your property? Call or e-mail me and let's talk.

Coming soon: similar reports on other key East Bay areas like Oakland 94602, North Berkeley, El Cerrito, Richmond North & East, and Pinole.

What's a neighbor to do?

Today I participated in an exchange with a frustrated neighbor regarding the amount of effort it seems to take to get public resources directed to particular traffic and safety issues. I thought it was worth re-posting here.

My neighbor P____'s posting:

At the risk of offending others, I want to say that Not every street can easily be organized. Maybe [the street in question] as a whole can be organized, but this block is populated by very nice people who 1. don't speak English, 2. don't like meetings, 3. think things are fine. Believe me, I've tried.

My response:

Unfortunately what P_____ says is true. We have similar issues here. I have worked as a volunteer cat behaviorist in the locked ward of the SPCA and I would rather "herd cats" than try to organize my neighbors. But when I say "organized" I am referring to approximately 10% of the households. There are only 6 out of over 60 households on my large block who regularly participate in our block group efforts. Our one project has been dragging on for over two years. There was some opposition, plenty of apathy, a bit of suspicion, quite a few non-English speakers, and some very discouraging comments. Yet, it is a start, and we less-than 10% managed to get over 70% to agree to our speed bump petition. We hope to see the result of our labors before the end of the summer. I have also made a couple of new friends among my neighbors and deepened my friendship with others.

At the end of my work day, and some days it never really ends, I would rather not go to a meeting, circulate, a petition, or distribute fliers. And I really do very little of it. Especially compared to some of the real organizers and like Daniel, Edward, Carolyn, Hoang, and Ruth. Sometimes it's more than enough to just feed the screaming cat, throw away the mail, and get some dinner on the table. Cynicism, lethargy, the lure of electronic devices, and just plain fatigue work against participation. But if, every once in a while, just a few of us would aspire to emulate Adlai Stevenson's homage to Eleanor Roosevelt*, I believe that we will see some change for the good. What is the alternative making some effort to improving our civic suffering? Do we make some small effort in hope of reaching a tipping point of success, or do we just take the advice of Job's wife to "Curse God and die"?

________________________________

*"She would rather light candles than curse the darkness, and her glow has warmed the world."