Last night I had the privilege of being part of the first Pitch Crawl, sponsored by the ever-so-fabulous Tracy Lee. Pitch Crawl is Tracy’s most recent adventure in the world of bringing people together. The Pitch Crawl format allowed twelve investors to listen to pitches by entrepreneurs over three minute rounds. There were possibly 75 or more people and the interaction was literally buzzing. Ideas were being spat out and demos flying on mobile phones and tablets. Puzzled faces, intrigued faces, and smiles were the responses of the investors. Tracy Lee is also the founder of Dish Crawl, a wonderful food adventure where people collect and experience various tastings provided by local restaurants and chefs in a quasi flash mob fashion. I have also attended several of the Dish Crawl adventures and have enjoyed each one. Not only did I enjoy the wonderful food, but also the chance to meet new people while walking between food spots. If you haven’t experienced Dish Crawl, check it out and join us next time! Last night was Pitch Crawl and the concept was to bring together people with ideas and people with money and see what happens. At the same time, having the opportunity to see new spaces in downtown San Jose and enjoying more great food offered by Tracy’s food partners. We first began at the San Jose Tech Shop. From the outside, I thought this was simply a bunch of work benches where people could come and tinker with their toys. However, the tour showed me so much more. They offer classes, they offer computers that you can design and print posters, wood working equipment, plastic mold injectors, CAD conversion systems, a machine shop, and even an area to pull out a motor of a car! If you haven’t had a…
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This is becoming more and more an issue in Santa Clara County. During the housing boom, sellers and buyers turned a blind eye to the permitted work. But now, lenders have placed a magnifying glass on the issue of non-permitted work and buyers have become much more savvy about asking about permits. Appraisers (specifically FHA) can be asked by an underwriter to comment on whether or not additions or remodeling was completed with permits. In speaking with an appraiser, if it is obvious that an addition or major remodeling was completed, they will make a call to the city and/or county to inquire about permits. They add these comments to the the appraisal and can adjust the value of the home down if square footage, beds, baths, stories were added without permits. But this is not simply an issue of value and square footage. It can be a safety issue. What may seem like simple updating regarding new electrical receptacles, newly re-plumbed baths with nice new tile, or more extravagant kitchen remodels can look good but have hidden issues. I see this more and more with “flipped” foreclosures. Investors comes in, applies granite to the kitchen, and new tile to the bath but disclosure indicate no permits and many times, no documentation the work was completed by a licensed contractor. The debate goes on regarding the cost of permits for “simple” work but the rules are the rules and sometimes buyers are more concerned with “updated” than permitted work. There are not enough inspectors to keep up with the number of foreclosed flips and many times non-permitted work has been a part of the house for several decades without any issues. The obvious converted garage is not the only type of non-permitted work but commonly San Jose residents have made…
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Question: We are in escrow to close on a house.The home is being sold out via a trust and we found out 2 weeks before close of escrow that a small portion of the driveway is on the neighbor’s property. We found out that the drive-way was a hand-shake deal between the previous owner and the neighbor. The sellers tried to get an easement agreement with the neighbor; the neighbor refuses to sign the easement. In the meantime we moved into the seller’s home because a) it was unoccupied, b) we had sold our house with the intent of buying the new place c) the sellers told us they have hired a lawyer and the whole deal should be over in 30 days. It is now 2 ways past escrow. Since the neighbor does not want to sign the easement, the seller wants to move a portion of the driveway. This house is on a hill, with a steep driveway. We are concerned that if we move the driveway, then fire trucks or any delivery person will not be able to reach the house (the movers, with the existing curvature of the driveway could not reach the house). What are our options if we want to get out of this contract and still get our full deposit back? Thank you. Answer: 1.) This issue is best resolved before close of escrow. Understanding the cost, the implications, and possible solutions is critical to making a decision on whether or not to follow through with the purchase. Since you have already move into the house and I assume some money has been exchanged it is best to resolve it instead of cancelling the deal. Work it out with the seller to find an acceptable solution to all regarding the easement and/or the…
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Good news! FHA loan limits have been extended at higher cost living area FHA loan amounts of $729,750 instead of $625,500! This will help FHA buyers opportunities to more homes in the Bay Area. HIGHLIGHTS: For the general housing market of Silicon Valley and Central Coast: The median price of existing single-family homes decreased to $510,000 down -1.0% vs Sep-11. Existing single-family home sales decreased -13.9% from Sep-11 for a Oct-11 total of 1,722 sold units. Condos decreased in price to $310,000 down -2.5% vs Sep-11. Existing condo sales decreased -8.6% in Oct-11 over Sep-11 for a total of 489 sold units. When you look at San Jose specifically: San Jose Median Price = $485,000 which is up 2% when comparing October ’11 to Sept ’11 but down 2% when you compare October 2011 to October 2010. Total volume of sales up 4% for October when compared to Oct 2010. But San Jose Neighborhoods are the real deal: Here is a pie graph showing neighborhoods by Sales Volume. Fairly proportion to neighborhood size except Willow Glen. Evergreen sales are up mainly due to Silver Creek average price. Total Dollar in Sales since July 2011: Another graph - More desired the neighborhood, the higher price and the lower the avg days on market (since July 2011): Guess where the deals might be? Finally- in preparation for holiday shopping – increasing inventory. But remember, this time 2008, we had nearly 4700 home for sale. (nearly 2x what we have now.) Amazing how consistent total closed sales run. I hope these numbers give…
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A potentially complicated, controversial topic amongst those following the housing market is how Shadow Inventory will impact the housing “recovery”. On the web you will find almost an equal amount of articles explaining why the shadow inventory will challenge the housing recovery until 2015. Look at another URL and you will find positive remarks on how the banks are releasing foreclosures now and how “robo signing” issues are resolving in the courts. First and foremost we must realize there is no typical free market economics in play here and no one knows the exact impact of to-date government intervention, state and federal fall out of massive files involved in the foreclosure process, the impact or non-impact of the “jobless recovery”, or how the EURO economic fallout will impact the real estate market for any foreseeable future. You have probably heard the saying, “all real estate is local”. Believe it or not, this is not simply a National Association of REALTOR® tag line. I know, you don’t believe me. But really, real estate is so very local you must understand the market neighborhood by neighborhood and more importantly, street by street. Neighborhood boundaries don’t exactly follow zip code lines. School boundaries do not follow neighborhood lines. All of those don’t follow generic San Jose reports. To understand current conditions and/or even attempt to predict where a particular group of housing prices will go in the future, is extremely hyper local and can not be wrapped up into averages. Speaking of averages, medians, and the like, the one statistical component that the real estate market predictions rarely include is standard deviation. In my very humble opinion, this is where the rubber hits the road in regards to how a true real estate professional can help buyers and sellers understand the local market. …
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What drives the real estate more than any other factor? Jobs. What drives buyers from renting to buying? Increase in rents to the point where home ownership is attractive. What drives buyers who plan to buy a home to buy now? Interest rates. So now, some data to back all these ideas up. From the LA Times report, “home prices are projected to turn around in 2012 — jumping 11.5% to $321,138 next year, then rising 10% more in 2013 to $353,411. The recovery is expected to run through 2017.” Here are graphs they showed on their post regarding California Home Price Recovery. From the California Association of Realtors Economist Leslie Appleton Young’s prediction for 2012, “The California median home price will increase 1.7 percent in 2012 to $296,000 in 2012, according to the forecast. Following a double-digit increase in the median price in 2010, the median home price will decrease a projected 4 percent in 2011 to $291,000.” According to The Economist Magazine’s writer Kari Smith, “My concern is over Owner’s Equivalent Rent. The data suggest to me that there is a shortage of housing in the United States. We should expect rents to begin rising in the near term. This will push up Owner’s Equivalent Rent which accounts for somewhere around 35% of core CPI.” Interest rates are expected to begin creeping up between 0-.25% per month in 2012 according to the the November 2011 Federal Reserve Update. If you have questions about a specific housing market around San Jose, contact me. If you have questions about real estate, ask me now via my online chat link to the right of this post. Tags: Market Information
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Closing costs are any fees related to the purchase of a home that are outside the price of the home. Different states, counties, and cities calculate closing cost differently so it is best to speak with a real estate professional who is familiar with the area you intend to purchase your home. Closing cost are the combined fees charged by different entities to close the deal. Costs can include title fees, escrow fees, prorated fees such as taxes, insurance, and interest. Closing fees can also include the down payment, points on the loan, lender fees, and any inspections or repairs negotiated within the purchase offer. There is a ball park average for closing fees at about 1-2% of sales price. How much are Santa Clara County transfer fees? There are fees related to the transfer the property and in Santa Clara County these are paid by the seller. However San Jose, Mountain View, and Palo Alto also have a city transfer tax and this is typically split 50/50 by buyer and seller. Other counties such as Santa Cruz, Contra Costa and Napa do not have city transfer fees. Normally the transfer tax is calculated by multiplying the rate by sales price per $1000. An example of Transfer Tax: A home with a $500,000 sales price in San Jose would have the seller paying $1.10 per $1000 or $550 for the county transfer tax. The city transfer tax for this example would be split 50/50 by the buyer and seller and would be at a rate of $3.30 per $1,000 which would equal $825 each. There are also document recording fees, courier fees, electronic copy fees and miscellaneous fees such as notary and FedEx normally adding up to less than $500. Lender fees include the cost of completing the loan and…
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On October 25th, President Obama visited Nevada, one of the hardest hit foreclosure areas in the United States, and announced changes in the HARP program to help more homeowners who are underwater on their mortgage. Based on calculations from The Federal Housing Finance Administration an “estimated an additional 1 million people would qualify. Moody’s Analytics say the figure could be as high as 1.6 million.” and potentially could help 1 in 5 Californians that are underwater on their mortgage. The HARP program has been around for awhile but one of the biggest limiting factors regarding its application is the loan to home value ratio could not be greater than 125%. In other words as long as your home only lost 25% of its value in the last 4 years you could qualify. Obviously, many home owners have lost more than 25% and some took out second mortgages that decreased their value up to 50%. With the revised guidelines, there is no loan-to-value ratio limit. To qualify for the program you must meet three basic requirements: You must be current on your mortgage and have not been over 30 days late in the last year. Your loan must have been initiated prior to May 31st, 2009 Your loan must be backed by Fannie Mae or Freddie Mac The biggest challenge to the program for Bay Area homeowners is few of the mortgages made prior to 2009 were backed by Fannie Mae and Freddie Mac. You can determine whether or not your loan(s) is owned by Fannie Mae or owned by Freddie Mac by entering your loan account number on these web sites. Also recognize this must be your primary residence and the program only replies to senior liens not home equity lines or second mortgages. Also, recently maximum loan limits for…
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Question: I am considering buying a nice home on a half-acre lot in a high-end California subdivision. All homes in this subdivision are built on half-acre lots. However, this subject home is special in that there is a designated non-buildable, open-space area of 8 acres across the street from this house (still located within the same subdivision). If I buy this house, title to these non-buildable 8 acres will transfer along with the house. Here are some of my questions, if you don’t mind helping me sort this out: 1. Are there any advantages to owning these “special” 8 acres of land in this subdivision if you cannot build on them? 2. What can you do with these 8 acres, if anything? 3. Can this increase my tax liability (now or in the future), or is tax liability based purely on the property’s purchase price? 4. Are there other liabilities that I should consider but haven’t thought of? 5. Is there any value to this non-buildable land? 6. I have considered creating a community garden or public project of that sort. If possible, are there any tax advantages that I can gain from doing this? Are there any arrangements that I can make for public benefit in order to receive a tax benefit in return? 7. Basically, is this vacant land more likely to be a liability (e.g., clearing brushfire shrubs & maintenance) than it is to be an asset (value)? Answer: Great questions and you have thought of many of the right considerations. 1.) The best advantage of owning “open space” is not having a view of anything but open space. If behind this open space there is a warehouse and therefore even though you have have open space you are still looking at a warehouse in the distance;…
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As a member of the Long Term Health Care Network and as a Senior Real Estate Specialist, I am always looking for good information to share with my clients. This is a recent article on the cost and possible solutions available to family care givers. As the number of family members providing care for aging parents increases, the solutions to find help with loss of income because of time off from employment for caregiving has become a major concern for many. The demands on both the time and energy needed to provide the needed care can make it impossible to maintain both a full time job with full time caregiving. Seeing a need to give support to family caregivers the federal government Administration on Aging created the National Family Caregiver Support Program. State Area on Aging division manages this program on the state and community level to offer support services that include: Information to caregivers about available services; Assistance to caregivers in gaining access to supportive services; Individual counseling, organization of support groups, and caregiver training to assist caregivers in making decisions and solving problems relating to their roles; Respite care to enable caregivers to be temporarily relieved from their care giving responsibilities; and Supplemental services, on a limited basis, to complement the care provided by caregivers. Medicaid Cash & Counseling Program A Medicaid approved assistance program called Cash & Counseling may be used to provide funds to hire personal care aides as well as purchase items or services, including home modifications that help them live independently. The PayingForSeniorCare.com website gives the following information about the program: “For Medicaid eligible seniors, the process begins with an assessment in the home to determine the senior’s home care needs; this includes interviews with caregivers and possibly the senior’s physicians. A determination…
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Great Schools, Remodeled Homes, Large Lot! Overview Maps Photos Description Neighborhood Open House Market Stats IDX Search $948,000 Single Family Home Main Features 4 Bedrooms2 Bathrooms1 Partial BathroomInterior: 2193 sqftLot: 12,420 sqft Location 14540 Blossom Hill Rd.Los Gatos, CA 95032USA 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 Schools, Remodeled Homes, Large Lot!Gourmet Kitchen Ready For You! Subscribe to our listing feed Nearby properties for sale Tags: Market Information
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No wonder the consumer is confused about where our real estate market is heading. One headline reads “More Foreclosure Activity”, another reads “Home sales up 19% year to year”, and don’t even bother listening to the news because everything is negative, negative, negative! That is why you need local market information! Thank goodness, you know me! So here is the local scoop. Out of 27 zip codes within San Jose: SIX had an increase in price per square foot in July and August over 2010. NINE had an increase in median sales price on average 15%! Highest increase by zip? 95112 – downtown with a nearly 23% increase over last year! (#2 Willow Glen, #3 Santa Teresa) ELEVEN had an increase in volume of sales with 95130 increasing nearly 50% over last year. Some of you have heard me say it but here it is again; Investors are buying homes. Willing to buy without leverage, all cash because they believe the potential upside is there. With nearly 30% of them paying all cash, it is hard to believe this is the whim of speculators. Consider the fact that your leveraged dollar is now at or below 4% because of interest rates, and that affordability is at a 30 year high for San Jose. There are opportunities for those who truly want a home. You will either be a home owner building equity or you are a renter building equity for these investors. “Last month absentee buyers – mostly investors – purchased 21.3 percent of all Bay Area homes sold, up from 20.5 percent in July and 17.8 percent a year ago. The peak was 23.4 percent in February this year, while the monthly average since 2000 is 13.8 percent. Absentee buyers paid a median $242,818 in August, up from…
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