A Word to the Wise:

As we continue to move through the tough economy with all of the ongoing news of foreclosures, short sales and loan modifications, a few of things are becoming very clear. It's not going to go away any time soon; you need to be very careful about what terms you agree to if you do a loan mod; and sales appear to be picking up slowly but steadily!

On the first item, there are still many homes that will be foreclosed upon due to a combination of circumstances. Many loans that never should have been made were made and are only now appearing as ogres on the horizon of many owners' lives. What is starting to happen in this regard, is that a sector of the economy up to now largely unscathed by the crisis appears to be falling into it. That is the high end home--those above $1 million. In the past month alone, I have personally witnessed Notices of Sale on at least two homes with over $3 Million owed, both in one of Marin's highest priced communities. This is not a good thing, and for more than the individual owners. If the trend continues, it can affect the market more broadly. If you fit into this category, run-don't walk to your lender and start discussions about loan mods. If he drags his proverbial feet, keep after him until you get into a thorough discussion of what, if anything can be done for you.
Which brings us to the second item mentioned above--mod terms. If you are fortunate enough to be able to obtain a loan modification, be sure the terms are something you can comfortably live with. There is nothing worse than getting a mod and finding out only one or two months into it that you can't afford these terms either. Consult with your accountant and lawyer just to be sure of where you are and where you're likely to end up with the mod.
Third, sales: on an encouraging note, both numbers and prices appear to be continuing their recent slight upswing. We're not talking about increases like we saw in the early few years of the decade, but, largely due to the price reductions absorbed over the last couple of years, and the prices on foreclosed homes that the banks are selling, buyers are out in force and their presence in the market is fueling these encouraging trends.

GREAT NEWS! For all of you "first time" home buyers out there, Congress passed and President Obama signed an extension of the $8,000 credit for so-called first time buyers. Actually, you don't have to even be a true first time buyer. If you've previously owned a home, but have not had one in the most recent three years you're eligible to take advantage of the credit. There are additional details for things such as married couples where one has owned more recently than three years but the other hasn't. Check with your accountant or tax advisor to be sure you qualify. Then....BUY!

Well, it's been awhile and I apologize for that. We've been busy helping people like you with their housing needs in a very challenging market and economy. Here in Marin prices have generally continued to drop, although not nearly as severely as in some other parts of the nation. Numbers of homes sold also went down over the past year, but in the past couple of months, this trend has shown some signs of reversing itself as more buyers have come into the market. Part of this is that buyers, feeling empowered for the first time in several years, have waited for the prices to go down to where the buyers feel like they can really "make a deal". Now that prices have apparently reached those levels in many buyers' minds, sales have started to increase on a month to month basis, albeit at prices not seen in a few years.

We think that the market may be ready for a turnaround in the next quarter or two, but that it will be very gradual. However, with rates at or near historic lows at the same time that prices are down, it seems like a great time to start thinking about buying.

Well, the bailout has finally passed! Is it perfect? Not really. Will it work and save the economy from any more cataclysmic drops? Too early to tell for sure. The one definite thing about it is: it is doing SOMETHING! Among all of the various things it is set up to accomplish are two thatg will help the housing industry and both homeowners and homebuyers.

First, it will provide funds for the Federal Government to buy up troubled mortgages so that the lenders now holding them can. in effect, provide new lendable cash to the nation's banks to make new loans on a sounder, more intelligent basis than was done over the past five or six years.

Second, it has some increased aid for homeowners facing loss of their homes through foreclosure.

There are various otter items dealt with in the bill, and, contrary to all of the doom-and-gloom folks out there, the sky won't likely be falling as a result of this bill's passage. In fact, in the cases where the government is taking an equity position in mortgages and/or foreclosed properties, it is conceivable that when the individual assets sell, they may sell at a price above what the Feds paid in, thus generating a profit for the taxpayers.

Stay Tuned--it's going to be an interesting ride!

The Marin Market: Midsummer:

Well, amidst the doom and gloom we hear in an unending din on our TV's, on the web and in the print media, when we look around here in Marin, we find that the sky is not actually falling and things are selling. The sales situation definitely is a case of house by house, and is dependent more than ever on the location of the property. However, the one set of constants that helps get a home sold, and for the asking price (or as close as possible), is its price and its preparation.

The former does not mean you have to slash the price to rock bottom to get people interested in buying. What it means is that you must work with your agent and pay attention to what the market's comps for your home indicate the proper price should be.

The latter refers to getting the house looking as good as it possibly can be before putting it on the market. Tactic number one here is staging, whether it's just de-cluttering and removing lots of 'stuff' that just detracts from its appearance, or doing some renovation and/or upgrades to get the max good impression.

Put yourself in a buyer's position, particularly in a market that has slowed a bit. If two similar homes come to market at the same time, and one is priced completely out of any relation to the state of the market and/or is looking kind of shabby or so full of 'stuff' that you can't see the house; and the other is priced realistically and is clear of its 'excess baggage', allowing you to view it and see its advantages, which would you buy? The answer is easy--The house that shows well and is priced where it should be!

Call us and we can guide you to get the best deal possible for your home. Remember: You worked hard to buy it. You took impeccable care of it. It sheltered your family and it shares your memories. We couldn't possibly treat it as just another house!

Last week I mentioned that the California legislature had sent a bill to Governor Schwartzenegger providing for some preventive action, as well as tenant protection in a foreclosure.
Yesterday, July 8, the governor signed the bill, SB1137, into law. It forces lenders to contact defaulting homeowners sooner in the foreclosure process to attempt to work out some non-foreclosure resolution to the problem where possible. It also requires that once a property is foreclosed upon, the lender must provide the tenants 60 days notice to move instead of the previously mandated 30 days.

It also provides local communities the right to pass ordinances that would require the foreclosing lender to maintain the outside appearance of the property so as to avoid urban blight that often comes when a home remains vacant for a long period.

Nationally, as well as many places in the Bay Area, home prices continue to fall, and time on the market is getting longer. However, there are DEFINITE EXCEPTIONS happening, particularly as to prices. In Marin County, though there are fewer sales than a year ago, and Days On Market (DOM) are longer, prices, on average, seem to be holding pretty steady.

The reasons are many and varied. First, Marin is, and continues to be, a very desirable place to live. It has a great lifestyle, generally easy commute, be it locally or to the City, excellent schools and a natural beauty that is hard to match anywhere.

While there are some individual places that have seen a drop in prices, Marin overall, has held pretty close to where prices were six and twelve months ago. Buyers have been holding back a bit, hoping to get lower prices for their purchases, but once they check the market here in Marin, they generally realize the values and opportunity and seriously look into acquiring property.

What does this mean to you if you're thinking of selling? Well, the very first thing to remember is that the houses receiving the quickest and best offers are those that are "ready to go". This means that the house should look as good as it possibly can before it is placed on the market. Any repairs or upgrades that have been put off should be completed. Clutter, and I understand as I am probably the most guilty person in this regard, should be removed. Have a garage sale, donate to charity or just get rid of it. Whatever your method, get it out of the house!

You may want to stage your home so it looks as close to perfect as it can. We regularly work with a variety of stagers and can refer you to the one who's just right for your home. We've said it often--staging does sell homes!

If you have any questions, please don't be shy. Give us a call! We'd be happy to help you, no matter what the question.