Southern California Wildfires

Okay, I think we can veer from the real estate talk to focus on the devastating wildfires that have affected so many friends in Southern California.  This is the largest mass evacuation due to a natural disaster in California history per www.sfgate.com.  The San Diego Association of Realtors www.sdar.com is assisting the city of San Diego to help displaced residents find rental properties as soon as possible.  The California Association of Realtors has announced that it is offering $1000 – $5000 to assist displaced members and associated staff per Inman News at www.inman.com. 

The following are some websites that you can visit if you would like to donate to assist the victims of the San Diego Wildfires -

 Episcopal Diocese of San Diego – www.edsd.org
 San Diego Red Cross - www.sdarc.org 
 San Diego Humane Society (for displaced pets) – www.sdhumane.org

To make a donation through the Governor’s Office of Emergency Services, call 1-800-750-2858.

This is a limited list.  You can find more ways to volunteer and/or donate at www.californiavolunteers.org.

Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com
melissa@buysellSFhomes.com

Has your listing expired?

If it has, ask yourself what went wrong.  The days are over of being able to put a sign on a property, put it into the MLS, do one or two open houses, and wait for the battle to begin.  No, aggressive marketing techniques need to be implemented in order to sell a home quickly.  Make sure your Realtor is:

- posting your listing on all available internet sites that advertise your listing.  I can list 50 to start. 
- creating an email flyer and sending it to all members of the Board of Realtors in which city you are in
- creating a website specifically for your property with video or virtual tour, several pictures, and a detailed description of the property

These are only a few of the steps that your Realtor should be taking when marketing your home.  If your listing has expired, and you want to sell your home quickly, interview intelligently.

Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com
melissa@buysellSFhomes.com

Short Sale or Foreclosure?

This is somewhat a continuation of yesterday’s post on refinancing yourself out of your equity.  If you are in danger of foreclosure, getting your financial institution to approve a short sale may be your only way out of several years of bad credit, bankruptcy, etc. 

A short sale is when the mortgage company takes less than what is currently owed on the home.  With the whole subprime loan explosion, several homes were bought with 100% financing, adjustable loans, and negative amortization loans.  People believed that these loans would be a good way to get them into the property, and then they could refinance in a year or two once they had enough equity to get into a good, fixed loan.   Surprise, surprise.  In a lot of places in the Bay Area, prices have softened and even dropped.  Rates on the adjustable loans have now skyrocketed.  Homeowners who got into the property with these loans can no longer afford their mortgage payment, cannot refinance due to no equity, and cannot sell for the amount owed on the property or higher.  Instead of facing foreclosure, think about short selling the property.  You won’t get anything out of it, but it’s better than foreclosure.

Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com
melissa@buysellSFhomes.com

Please Do Not Fund Your Lifestyle By Refinancing…

I know this may be a touchy subject, and not something that everyone wants to talk about.  It’s like that big elephant in the room.  I felt the need to bring it up, because I have seen this to be a bigger problem lately.  I have always been a supporter of pulling an equity line or refinancing in order to remodel, buy another investment property, etc.  Basically, you should refinance to use the money to get a return on your dollar.  Obviously, another good reason to refinance is not to pull money out, but to refinance into a better loan product.  Please don’t refinance to buy a new car, take a trip, buy some fancy furniture, or anything else that does not bring you more money than you had.  You will regret it in the long run.

The subprime market has been the hot topic in the media lately, and with good reason.  However, there were people who were already in good, fixed loans, and refinanced when the rates were cheap in order to free up some cash.  Basically, if you do this, you are essentially borrowing your profit from your home in advance.  When you decide to sell your home, you now think that you have a small profit, but your perception is wrong.  You would have had the huge profit, had you not refinanced and used the money ahead of time.

With the market not going up 15-20% per year like it used to, people are now seeing that they may have pulled equity out, that they now are very close to netting zero on the sale of their house.  Even worse, they may have to sell for less than the house is worth.  You never know what life situation may come up, and you may need to sell your home.  Make sure you ask your Realtor for a net sheet if you are thinking of selling your home.

Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com
melissa@buysellSFhomes.com

Rent or Run?

With all of the problems in the real estate market, some are choosing to rent rather than buy.  Actually, it should be said that some have to rent and cannot buy.  This is pushing up the demand for rental units, and an increase in the rents.  According to Realty Times, www.realtytimes.com, rents have increased 3.3% in the last quarter in San Francisco.  San Francisco is posed to see an annual growth rate in rents of 13.2 percent.  The vacancy rate for rental properties in San Francisco is currenty 4% and may go even lower due to the increased demand in rents.

So, what does this all mean?

For the owner, this is great.  Granted, you have rent control in San Francisco.  However, if a unit becomes vacant, you can now bring it up to the market rate which keeps increasing due to the current situation.

For the renter:  If you can afford to buy, do so.  Get your ducks in a row.  Make sure you know your credit score, and kiss your landlord goodbye.  All things considered, you cannot rent a one bedroom apartment with parking and laundry in a decent area for less than $1800/month.  Just check www.craigslist.com.  You’ll see.

For more stats, questions, comments….contact me.

Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com
melissa@buysellSFhomes.com

30-Year Mortgage Rates Still Low

The rate for a 30 year fixed mortgage is currently 6.11% according to Inman News www.inman.com.  It’s a great time to jump in and buy.  Right now you have people who are skeptical about buying because of everything we are hearing on the news.  You also have a large percentage of people who no longer qualify for a loan.  My suggestion is if you have a down payment, great credit, and you are paying a ridiculous amount of rent in San Francisco, buy now.  The rates are still low, and you can get into a property without all of the mulitple offer craze that we saw in the past few years.  However, the are exceptions to this rule.  It’s just not happening on every single property like it was before.

Let’s say you are paying $2000/month in rent.  Hypothetically speaking, let’s say prices in San Francisco increase at a rate of 4% in the next year which pretty much means appreciation is the same as the average rate of inflation.    Given that you can get a one bedroom condo for $700,000, that condo may be $728,000 at the same time next year if things slow up to a 4% increase.  It would be in your best interest to buy now instead of later.

1)  If you continue to rent you are paying $24,000 out of pocket for the year.  If you buy next year, you will be paying $28,000 more if you decided to wait.

2)  You are missing out on the tax benefit that you receive from owning and being able to write off mortgage interest.

So, what are you waiting for?  If you have been thinking of buying, there is no better time than now.  Historically, winter is the time when homes are on the market that have to be sold.  During summer, prices tend to go up because more people want the buy, the weather is better, etc.  Why not make a move now that winter is approaching?  In every market, there is always a good deal somewhere.  Be the one to find it!

Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com

Selling Your Home: Comparables, Communication, and Cost

If you’ve ever sold a home, then you can relate to the scenario I am about to describe.  The agent who you want to list your home is at your dining room table.  He or she is going through their whole presentation on what they do to market your home to get top dollar and how they work.  Once this discussion is over, they pull out a binder containing the sold comparable properties in the neighborhood.  All of a sudden the mood changes.  The tension is so thick you can feel it.  It’s what everyone knew was coming, but no one wanted to bring it up.  Yes, it’s time to talk about pricing.  Just for the record, we Realtors feel the same way you do about this discussion.  We don’t like it, but it has to be done.  We’re not here to bash your house, and tell you how wonderful everyone’s house is compared to yours and how you should price your house low because your neighbor had granite in their kitchen.  We know that this is your home, your pride and joy, and that you want the highest price possible.  We have a fiduciary duty to you.  It is our job.  I want you to understand that when we ask you to price your house at a lower price than you expected, it’s because we also want you to end up obtainig the highest price possible for your home.  Sound contradictory?  Maybe, but read on…

First of all, the final selling price of your home will be determined by the market.  It is determined by what a willing buyer will pay.  The sales price is not determined by, you, your Realtor, or anyone else.  In the San Francisco Bay Area real estate market, you have a 21 day window of opportunity to obtain the highest price for your home.  If your home does not receive offers within that time frame, you will get less for your home.  This is a fact.  Your home will appear stale, and buyers will think that they have more room to negotiate.  The frenzy is over.  Your home has to be the lowest priced and the best value compared to the other active listings in your neighborhood.  If you’re house is priced right, buyers will flock to your home, competition will ensue, and the price for your home will be driven up.  If your home is overpriced, it will just be used to make the other homes in your neighborhood sell quicker because they are now a deal compared to your home.  The following are some statistics that will make this concept more clear…

There were 319 total condos and single family homes sold in all of San Francisco between September 15th and October 15th.

166 listings sold within 30 days and those listings sold for 104.7% of the list price.

86 listings sold between 30 and 60 days and those listings sold for 100.99% of their list price.

35 listings sold between 61 and 90 days and those listings sold for 97.66% of their list price.

16 listing sold between 91 and 120 days and those listings sold for 98.67 of their list price.

16 listings also sold over 120 days and those listings sold for 97.24% of list price.

Hence, the longer your property sits on the market, the lower the price you’ll get for your home.  This is where communication with your agent comes into play.  Make sure you are all on the same page, and remember to ask your agent if you have any questions or concerns.  Make sure you thoroughly understand the statistics that are presented to you, so you are both working towards the same goal.

Remember, buyers are more educated nowadays with the easy access to information that we all have.  There are several websites that have a ton of real estate information.  Your Realtor should be advertising your home on a minimum of 30 different websites. 

The best thing to do is verify everything with your Realtor and ask for stats.  I approach real estate by the numbers.  Make sure you do, too.

PS – Remember, I have access not just to the San Francisco MLS.  If you need area specific statistics, contact me, and I would be more than happy to help you out.

Melissa Casciato
(415) 490-799
melissa@buysellSFhomes.com

Why not sell smartly in San Francisco?

So you’re thinking of selling your SF home?  Chances are, if you are in a single family residence, that your home is quite old.  Chances also are that you have a lot of equity in your home due to the increase in San Francisco real estate prices in the past several years.  Whatever the case may be, if you are thinking of selling, you are much better off if your home is in tip top shape.  Being out there, I can tell you first hand that the potential buyers for your homes are coming in with some high standards.  With the price point so high in SF, buyers want to get the most bang for their buck.

 The following are the 5 most important aspects of your home that need to be in great condition:

1) kitchen
2) bathroom
3) paint
4) roof
5) floors

If you’re going to spend some money on your home, invest in the kitchen and the bathrooms first.  For numbers sake, let’s say you invested $50,000 in your kitchen and bathrooms.  You may get an extra $100,000 for your property, so you just made your money back and doubled your investment!  Not only will your home sell for higher, but it will sell quicker and generate much more interest.  This will increase competition for your home and may even drive the selling price up more.

The roof is an issue that comes up all of the time.  It seems that, for me at least, 90% of the time, a buyer walks into an open house and asks how old the roof is.  A new roof is a big selling point.  Also, a fresh coat of paint inside and out can make a world of a difference.  Remember, your agent should be putting several pictures of your home on the MLS and anywhere else they are advertising your listing on the net.  They should also be doing a video of the inside of your house or at minimum, a virtual tour.  If a buyer doesn’t like the way your house looks in the pictures, they may not even bother looking at it in person.

The last issue which I feel is very important although I did not include it in my top 5 is home staging.  I don’t see it as remodeling, but it is a definite must if you want your San Francisco home to sell for top dollar.  It seems now as if staging is the norm.  Staging can cost from a couple of thousand dollars to over 5,000 dollars, and is well worth every penny.  For some psychological reason, a buyer is most likely to buy your home if he or she can picture themselves in the home.  Home staging gives your home the look and feel of a home that can appeal to everyone’s tastes.  It is definitely something to consider and spend the money on. 

Even if you are just thinking about selling, you should contact your Realtor and ask for tips and advice on how to prepare your home for sale.  Your Realtor should have a list of things you should do to prepare your home for sale.  He or she should also be able to refer you to a great contractor, painter, roofer, etc.  Your home may be one of your biggest investments and biggest liabilities.  Maximize your profit!

 Melissa Casciato
(415) 490-7998
melissa@buysellSFhomes.com
www.buysellSFhomes.com

SF Condos still Cookin’

I promised statistics, so here we go.  The following are statistics for condos in all of San Francisco.  If you would like statistics specific to a particular district, email me at melissa@buysellSFhomes.com.

The following is data that I pulled from the San Francisco MLS, www.sfarmls.com. 

Sold condos from 9/14/06-10/14/06 – total of 176

Average List Price – $764,226

Average Sale Price – $763,652

Average Days On the Market – 48

Sold condos from 9/14/07 – 10/14/07 – total of 139

Average List Price – $845,587

Average Sale Price – $857,683

Average Days On the Market – 42

The amount of units sold has gone down.  However, the average sale price has gone up and the average days on the market has gone down when comparing this last month to the same time frame last year.  San Francisco is still going strong for now.

Yesterday in the pouring rain, we took a buyer condo hunting in Nob Hill, South Beach, and Mission Bay.  There are some beautiful one bedroom condos out there, and you can get a great one for under $700,000. 

I have a 99 page report on the state of the market in San Francisco that was compiled by the California Association of Realtors, www.car.org.  For a pdf copy by email, contact me.

Well, today it is a beautiful day in SF.  It’s a great day to stop by some open houses and see what’s on the market.

Melissa Casciato

(415) 490-7998

Drumroll for…San Francisco….please!

Well, here I am joining the wonderful world of blogging.  Just back in San Francisco from the California Association of Realtors conference, I am now starting my own blog.  I learned a lot in the past couple of days.  Most importantly, I got the point that you, the consumer, wants and needs information regarding real estate.  I have to admit that I keep in contact with my past clients and potential clients by snail mail, phone calls, etc.  I feel that I have a lot to say when it comes to San Francisco real estate, so here I am.  This blog will be a compilation of opinions, market statistics, real estate advice, San Francisco information in general, and anything else I can think of to inform you of this wonderfully dynamic city that I practice real estate in and call home. 

With all of the negative media hype that real estate has been receiving in the past year, I am happy to report that San Francisco’s number of sales may be down, but our average price is up 3.5 % according to the Chief Economist for the California Association of Realtors, Leslie-Appleton Young www.car.org.  I was most fortunate to attend the Opening Lunch this past Wednesday in Anaheim for the California Association of Realtors Conference and Expo.  Yes, SF residents, I heard it first hand.  San Francisco is not being as affected as the rest of our state when it comes to the down market.  The biggest part of the market experiencing the downfall in California is new home construction.  We all know that San Francisco does not have much new home construction except for all of the condos down in the Embarcadero, so we’re pretty much landlocked here.  I can sit here and pump up San Francisco for days, but I can feel that you want statistics, numbers…..stay tuned for more….