Well, what a difference a few months can make! If you haven’t picked up on it, the real estate market in many of the Bay Area neighborhoods is heating up. Some areas are actually on fire. For me, the printer and emails are flying presenting and receiving multiple offers on homes that have been on the market less than a week! On average for “highly desire-able” areas we are seeing sales prices at 2-5% over last comp. Even in areas like Morgan Hill, Milpitas, and Evergreen, we are seeing multiple offers. I have presented offers on homes with as many as 18 other offers! Why is this happening now? 1.) Hope! Even the smallest signs that the economy and jobs are recovering, gives people a reason to consider making a move. The smallest positive sign makes buyers realize this may be the time to buy. Not to mention Warren Buffet spoke and said now was the time to buy. : ) 2.) Low inventory. Bottom of the market (six months ago), keeps regular equity sellers off the market (buy low – sell high mentality) and therefore the only sellers on the market are …BANKS and motivated private sellers. Banks in the form of short sales (lender must approve sale) or REO/bank owned/foreclosure properties and private sellers in the form of relocation and “I’m not going to wait any longer to get the bigger/better house I want” or “I am not going to wait any longer to move on and retire!”. A brief side step on this topic of “deals” and short sales and bank owned properties. The banks have already taken their losses. We the taxpayers bailed them out of their loss. Now, it is upside time. Most banks are completing full appraisals on short sales and REOs. They know…
Continue Reading »
Q. We’ve sold our house. We have 30 days rent back. We would like to ask for 4-5 months rent back extension due to the fact we have not bought a house yet. Our agent (seller’s agent) told us that the bank wont allow the buyers to rent out more than 30 days because this will ruin the buyers loan. But lots of our friends had stayed at their houses for 4-6 months after they closed the escrow. We were told that it can be done as long as both buyers and sellers agree. The bank should not be an issue. Can seller rent back more than 30 days after close the escrow by law? If there is a contract for rent back (and there should be) the buyer’s lender is privvy to it and can apply its own rules (each lender – potentially different rules). I have seen some lenders only allow a 30 day rent back and I have seen others only allow a 60 day rent back. Nothing more. In past times, it was not as big of an issue but things have changed and if the borrower signed a loan document that states it is a primary residence, then the lender wants to see them occupy the property as their primary residence. With all that said, you don’t know until you ask. If the buyer’s are in agreement, write it up and see if the lender says anything. I am not sure where you are in the process but if the loan is already approved it may delay the timeline for closing. Got a real estate question? Talk to CJ! Tags: Talk to CJ
Continue Reading »
Remodeled Oasis Just for You! Overview Maps Photos Description Market Stats IDX Search $488,000 Single Family Home Main Features 3 Bedrooms2 Bathrooms1 Partial BathroomInterior: 1,546 sqftLot: 4,996 sqft Location 254 Beegum WaySan Jose, CA 95123USA To get updates on open home dates and other property events, please click the “Like” button below: CJ Brasiel Broker Associate, SRES, GREEN Fireside Reatly(408) 406-6035CJ@CJBRealEstate.comhttp://www.CJBRealEstate.com Listed by: CJ Brasiel, Fireside Realty Our recent listings Great Condo Walk to Castro Street Mountain ViewPerfect Starter Home!Great Schools, Remodeled Home, Large Lot! Subscribe to our listing feed Nearby properties for sale Tags: Buyers’ Tips, Market Information, San Jose
Continue Reading »
Q. Campbell has evolved as an amazing small town, there are still quite a few Fixer Uppers out there and am wondering if now is a good time to invest a bit of sweat equity? The answer will depend on the actual property. In general, Campbell is a good strong neighborhood. The return will depend on crunching the numbers. Make sure you obtain all the right inspections on the property you are interested in. In this market, many times the seller can be coaxed into paying for all the inspections. Once you know what the repairs are, touch base with a Realtor (or three) to find out the current market value of the home and neighborhood. Most investors look for properties they can get for 30-50% under market value. Knowing the repairs needed will help you negotiate the price down to the “investment price”. If you are planning on renting the property, make sure you take a peek at Craigslist.org and local papers to see what rents are running. Add in 2-10% maintenance/management costs and make sure the rent can cover this with some additional cash flow. The CAP rate (http://en.wikipedia.org/wiki/Capitalization_rate) is what normally tells the investor whether or not this is a go-no-go. Many times, California properties become long term investments as the CAP rates tend to be pretty low. Look for properties that have been on the market for a long time. The ones that have been noted on the MLS as pending and then back on the market tend to have motivated sellers. Getting your price may take patience, but it is a big key to getting your money back. Finally, the cost of repairs depends on how much you can do yourself and how much you have to hire professionals. Be careful with items that require…
Continue Reading »
Historic low interest rates. Lowest home prices in nearly 15 years. Yet, buyers remain hesitant to buy a home. Why? Fear. Here are the top 5 fears associated with buying a home along with some calming solutions and thoughts. 1.) Home prices may fall even more! Yes, they may. When you make a stock purchase, you certainly buy with some understanding it may go up, down, up, and down over the course of ownership. The same with the home. You don’t sell when its low and you hold until its high. Now that the “crash” has passed, do we really believe housing prices could fall another 10-40%? OK, maybe if the entire EURO fails. OK, maybe if the sky falls. But really, unless you plan on putting your money under a mattress (and even that has risks – rodents, fire…) every investment has risk. The real question is how do you reduce your risk? First, understand what you are buying. Much like buying a stock, review the history, check out what the professionals are saying about that market, look at competition, and with your real estate agent pull together some predictions. Know what you’re buying and set reasonable expectations on the holding of that investment. In spite of real estate history between 1992 and 2007, real estate is a “BUY AND HOLD” investment. Long term. Not forever, but not 2 years. 2.) I need a deal or my friends will think I am stupid! Yes, they may. There is a huge amount of pressure on any home buyer in this market because whether it is around the water cooler, over dinner, or sporting events, a buyer’s friend upon hearing you are shopping for a home will say, “What? No, don’t do that now! What do you mean you are writing…
Continue Reading »
Q. We are looking to buy a home in good school districts and we have Cupertino/Fremont in mind. 1. Can some one explain the pros/cons of buying in Cupertino vs. Fremont? 2. With very good api scores in Fremont, why are the home prices way less than Cupertino area? Will they appreciate in the future? Also, I have noticed that town homes in Rivermark are expensive than SFR in Fremont good school areas. Is it because of the Rivermark homes being new vs Fremont homes being old? If so, Cupertino even though they are 40 year old homes they are still priced more than the Fremont homes. Why is that? a) Is demand only factor which drives prices higher in Cupertino? Demand is definitely a key component. Commute to tech hub of Apple, HP and others makes it a highly desirable area as well of course, recognized schools. Many relocation clients simply go to Cupertino first because if they are not familiar with the area, they know they have a short commute and great schools. IMHO, Cupertino itself is one of the best examples of urban sprawl in our area. Not very walkable, lots of franchise based food and retail (although more ethnic diverse restaurants are making headway) and triangulated by three highways. But, based on Apple’s recent decision to build a new campus I don’t see the desire for Cupertino going away anytime soon. b) Are there any factors other than shorter commute and demand which differentiates East bay and peninsula Prestige? Commute to San Francisco (although that is a perception not reality because of East Side Bart). More greenery? East Hills are nice but brown most of the time. West Hills provide more green feel. c) Any other major factors which differentiates peninsula from East Bay living Both…
Continue Reading »
Q. Is there any chance of selling a home in east San Jose (between Story and Tully of Mclaughlin) and getting anything for it? There is no doubt the East Side is suffering in this market. There are a lot of short sales and foreclosures in the area you mention and that has had a huge effect on prices in the last 6 months. If you take a look at ForeclosureRadar.com you can see up to 20 houses around your location that are in pre-foreclosure or foreclosure. Unfortunately, foreclosures will be playing the biggest role in prices for next period of time. Whether or not you can get the money you owe out of the home in this market is going to depend on the actual street and surrounding neighborhood, the presentation of the home, and of course -how much you owe. If you purchased your home after 2004 it will be difficult to get the monies back. Most important is to sit down with a couple of Realtors and see how they value the house. The only way to know what your house is really worth is to talk to professionals in the area. I would be glad to help you evaluate the home. Got a real estate question? Talk to CJ! Tags: Talk to CJ
Continue Reading »
Q. I had a buyer ask for money to repair and or clean things on the day of the walk through. He threatened to stop the closing if I didn’t open my wallet. I called his bluff—I was sick of this guy as he’d already gotten a great deal—and the closing went through. My lawyer and realtor provided no real help other than to ask me if I was willing to let the deal fall through over a few hundred dollars. What should a realtor and lawyer really be doing to guide their client through this kind of scenario? Recently, I represented a seller and the buyer kept coming back for more and more request after getting a great deal on the house. The buyer went as far as asking for “all debris to be cleaned out from under the crawl space”. Now the crawl space was not in horrible or even cluttered but had a couple of bits of plumbing supplies underneath one area. At first when the buyer would come back with a request and my client would ask me what she should do , I presented the scenarios as most agents do. It is a buyer’s market, you have a million dollar deal on the table, do you want to risk that over a $150 of clean up? However, after the 3rd non-standard request, I told my seller that she had every right to be frustrated and the buyer was being unreasonable and ultimately the decision was hers to say yes or no. The seller refused the addendum and the contract was canceled. From the moment the contract seemed stinky, I was on the phone keeping up with other parties that were interested in the house but had not brought an offer forward. I was able to…
Continue Reading »
Q. How do you speed up a short sale? I am already pre-qualified to the price the seller is asking. What is the average waiting period on a short sale? So many variables. I once had an approval from lender, and they WOULD NOT email/fax etc me the letter insisting that it would be coming in the mail to my client. It took 21 days to get the letter! Really! On the other hand, I had another short sale approval letter in hand 2 days after the offer was presented. The variables? The buyer’s agent The seller’ agent The negotiator(s) (How many loans?) The processor(s) The investor(s) The Mortgage Insurance company (if applicable) The Escrow company The method of communication (email/fax/equator/slow boat…) The weather The stars… I am being sarcastic but there is no definitive answer. Even if it is the same lender as last time, I have no way of predicting. I simply stay on top of it and make sure it happens as fast as the list above allows it. Got a real estate question? Talk to CJ! Tags: Talk to CJ
Continue Reading »
Q. Do home prices generally rise in the spring months? If so, when is the best time to sell if you are not in a rush? It is an ‘ole real estate tale to say that there are some months better to sell than others. Maybe there was a time when predictability ruled the market place but not anymore. I have looked at the stats for the last 5 years, the last 3 years and here are the market realities that effect home sales: 1.) Homes sell – when there are a lot of homes on the market (inventory high). 2.) Homes sell – when interest rates are low and more when rates are low AND inventory is high 3.) Homes sell – when government incentives create demand (tax incentives) In regards to “seasonality” and prices, we are not seeing a trend consistent enough in this market to target a selling period. I would look at your specific neighborhood and run the numbers to see if I could find a trend but speaking generally about the San Jose area, it is not the time of the year but the market dynamics and inventory being sold that is driving average sales prices up or down. More than the month, the drivers for best price are: 1.) Move in ready – no deferred maintenance and no big ticket repairs 2.) School districts – not only for family demand but for re-sale 3.) Consistency in the neighborhood – pride of ownership throughout the area Bonus points for: 1.) Updated baths and kitchens 2.) Hardwood floors 3.) Copper plumbing and dual paned windows 4.) Open Floor plan 5.) Shortest commute to tech hub 6.) Convenience to shopping, parks,…coffee Usually, holidays are a slow time simply because only those who have to sell will interrupt…
Continue Reading »
How long will it take for a short sale approval? Definitely one of those questions that many buyers and sellers are asking. When we first began riding the wave of short sales in 2008, lenders were simply not prepared for the high volume of requests. But as we move through the housing market crash, lenders have staffed up, developed departments and professionals and we are beginning to see improvements in the short sale approval process. However, there are a lot of variables in how long it will take to obtain short sale approval when buying for selling a home. Here are 10 reasons why a short sale approval can be delayed: 1.) Who is the bank and/or lender? Some banks are simply better at the short sale approval process than others. Wells Fargo, Chase, and Bank of America have seemingly put the most effort into streamlining the process. Bank of America utilizes EQUATOR (an online transaction management system) and this has definitely helped in reducing the amount of duplicate requests for paperwork. Wells Fargo and Chase have implemented fast track processes where they don’t require complete financial package documentation if the seller has already attempted a loan modification. 2.) Has the seller submitted all the paper work? Some sellers are not at good at record keeping and many times, bank statements, pay stubs, and tax returns take time to locate and submit to the lender. The lenders want all pages and sometimes sellers simply throw documents away. Requesting back statements and copies of tax returns can take time. Sellers may also have to provide copies of divorce decrees, alimony and child support statements and all of these documents must be updated at the time an offer is presented to the lender for approval and every 30 days after. 3.) How…
Continue Reading »
